Transcript Highlights:

• the<00:17:11.439> revenue<00:17:11.839> was The revenue was yeah the revenue was The
• <00:17:57.200> I >> yeah revenue should be actual revenue I >> yeah revenue should
• There's no revenue. No, there used to be revenue.
• >> There's no revenue. No. So >> There's no revenue. No.
• >> there used to be revenue. >> there used to be revenue.

Keywords: 928, house, all

Summary: The meeting began with approval of partial minutes, with members noting that DHS/HHS material was not yet included and that the minutes would be finalized later. The committee then heard from the General Court about several dedicated funds. Testimony explained the Joint Legislative Historical Fund, which receives a $25,000 annual general fund appropriation and transfers from visitor center sales above a $50,000 threshold, and is used for portrait maintenance, chamber work, Hall of Flags upkeep, and other historical preservation needs. Members also discussed the preservation of the Civil War flags in the Hall of Flags, with the General Court stating the flags are monitored through annual high-definition photos and that no immediate stabilization project is planned. A question about Union cemeteries was raised but the witness said he had no knowledge of federal funding for them. The committee also reviewed the visitor center revolving fund and noted that the accounting presentation is confusing because transfers are netted out so the fund ends each year at $50,000. Members suggested the narrative should clearly identify the transfer amounts and actual revenue, and staff agreed to note that in future reporting. The General Court then described its special legislative account as a stability reserve for capital and emergency needs, citing past uses such as the plaza ADA renovation, the legislative parking garage, and moving operations to One Granite Place. Members asked about interest earnings and were told the account is held in the treasury and any interest goes to the general fund unless statute directs otherwise; no additional funding was recommended at this time. The Department of Administrative Services then presented the law enforcement memorial fund, explaining it is a long-standing leftover construction fund with a small balance that has not been needed because the New Hampshire Law Enforcement Memorial Officers Association privately funds memorial upkeep and plaques. Members discussed whether the state should transfer the remaining money to the nonprofit, but no decision was made; the department said it would research whether such a transfer is legally possible. The department also reviewed the former land conservation endowment fund, now moving to Fish and Game under House Bill 2, and explained that it primarily covers administrative costs, management fees, and investment losses for a long-term conservation program. Members asked about the fund’s large balance and the increase in expenses, and were told the fund is intended to last indefinitely and that future reporting will shift to Fish and Game.

Transcript Highlights:

• It changes the revenue... ...and lose critically needed funding.
• So we will make sure that the revenues for the FCC counties are protected and grow as the revenues grow
• and by an indeterminate amount in recurring revenues.
• and by an indeterminate amount in recurring revenues.
• Our revenue is slightly declining.

Summary: The Finance and Tax Committee met with a quorum present and took up two bills. The first, SPB 7046, was the Senate tax package. It included changes to Live Local property tax opt-outs, charter school distributions from voter-approved property tax levies, RV park special assessments, fiscally constrained county funding, a permanent sales tax exemption for small propane tanks, a hunting/fishing/camping sales tax holiday, and provisions barring governmental net zero policies. An amendment made the charter-school distribution change prospective starting July 1, 2026. Committee discussion focused heavily on whether the charter-school language would divert money from traditional public schools and on the fiscal-constrained county formula. The bill was reported favorably as a committee bill after a roll call vote, with Senators Bernard and Jones voting no. The committee also considered SPB 7048, which updates Florida’s conformity to the Internal Revenue Code as of January 1, 2026 and partially decouples from federal tax changes in the One Big Beautiful Bill Act. The bill addresses bonus depreciation, research and experimental expenses, business meal deductions, and the business interest deduction, with the Revenue Estimating Conference expected to review the fiscal impact later in the week. The Florida Chamber testified that the bill should better align with federal tax relief and reduce administrative burdens, while senators emphasized the need to balance business tax relief with state revenue constraints. SPB 7048 was also reported favorably as a committee bill by roll call vote.

Transcript Highlights:

• Also then, since we're talking about revenues, I want to compare the executive revenue estimates and
• Henderson described how close the OSPB revenues were, the executive revenues, with the JLBC revenues.
• You mentioned the revenues went up in November. Yeah.
• JLBC underestimated the revenues by 10.6%.
• It is imposed by the Department of Revenue.

Bills: HB2053, HB2116, HB2148

Keywords: stormwater, recharge mapping, water resources, groundwater, appropriation, Arizona, HB2116, Colorado River, litigation fund, water rights, Arizona water law, general fund appropriation, state budget, interstate water compact, Colorado River Compact, water litigation, A.R.S. 45-119, natural resources, water policy, river management

Summary: The committee first considered House Bill 2116, which would appropriate $1 million in fiscal year 2027 from the State General Fund to the Colorado River Litigation Fund. The sponsor said it was a repeat of last year’s request and was intended as a backup if the seven Colorado River basin states cannot reach a new agreement. Arizona Department of Water Resources staff testified in support, explaining the state’s role in ongoing Colorado River negotiations and distinguishing the litigation fund from the executive’s separate Colorado River Protection Fund. The bill received a due pass recommendation on a 17-1 vote. The committee then took up House Bill 2053, which appropriates $100,000 to ADWR for updated stormwater recharge mapping and expands the mapping effort beyond state trust lands to private lands. The committee adopted Chairman Livingston’s amendment, which extended the coordination timeline to one year, broadened the agencies involved, and revised language on site eligibility and the definition of stormwater. The sponsor said the bill would help identify more places to capture stormwater for recharge, while ADWR testified neutral, supporting the mapping work but raising a concern about language tied to appropriable surface water because that is a legal determination for the courts. The amended bill passed 11-7. House Bill 2148 was then heard, proposing to give the legislature authority to appropriate non-custodial federal monies, with requirements for specifying purposes and allowing agencies to spend such funds if the legislature does not act. An amendment excluded university and Board of Regents research grants from the bill’s scope, which the chair said was intended to avoid implementation problems. The sponsor framed the bill as a transparency measure, and members discussed the large amount of federal pass-through funding Arizona receives. The amended bill passed 11-7. After the bills, the committee received a lengthy JLBC presentation comparing the executive budget with the JLBC baseline. Discussion focused on revenue forecasts, the impact of federal tax conformity, state employee health insurance costs, SNAP administrative and error-rate costs under H.R. 1, developmental disabilities and AHCCCS growth, and K-12/ESA funding trends. Members repeatedly criticized the executive budget for funding some ongoing costs on a one-year basis and expressed concern about rising caseloads and supplemental needs. No formal action was taken on the presentation.

Transcript Highlights:

• <00:18:48.640> for to thank the department of revenue for to thank the department of revenue
• <00:37:10.599> account going to a DVS special revenue account going to a DVS special revenue
• <00:58:16.160> uh existing Revenue uh existing Revenue uh streams<00:58:18.960> uh<
• If you looked at the balance of highway revenues plus transit revenues, it came out pretty balanced.
• then it had to come from uh Revenue then it had to come from uh Revenue sources<01:19:08.320>

Keywords: 1183, house

Transcript Highlights:

• The available revenue is a little bit lower this year, which is Why the consensus recommendation.
• The way that we generate that new revenue is through three provisions.
• So those are the three revenue provisions, revenue-generating provisions.
• And I'm also really glad to hear the tie-in of additional revenue sources.
• So, name the three revenue streams. Again, please, Mr.

Keywords: 996, all

Transcript Highlights:

• . revenues. revenues.
• revenues from in the future. revenues from in the future.
• with the Department of Revenue. with the Department of Revenue.
• Department of Revenue. Department of Revenue.
• Director of the Department of Revenue. Director of the Department of Revenue.

Keywords: 916, all

Summary: The Joint Revenue committee met with a quorum and heard a series of interim topic proposals focused on tax policy. Representative Brown raised two ideas: reinstating an exemption reporting requirement for corporations and entities receiving tax exemptions, with loss of the exemption for the current and prior year if they fail to report, and revising property tax treatment for wind turbines and related infrastructure by shifting the taxed footprint from agricultural to industrial classification. Senator Case and others then discussed energy taxation more broadly, including a possible generation tax for electricity, how to handle large data-center electricity loads, and whether sales tax revenue from very large electrical loads should be shared statewide rather than concentrated locally. The committee referenced prior bills and studies, including House Bill 300 and Senate File 76, and discussed using a mechanism that would keep local electricity bills net neutral while redirecting revenue distribution. The committee also took up problematic gaming and program funding. Senator Case described personal experiences with gambling addiction and the lack of available resources, while the presenter said the topic had been requested in multiple committees and that the biggest concern from House Bill 171 was protecting county and municipal funding. Members discussed whether the issue belonged in Revenue, Health, Labor, or Transportation, and several suggested it should stay with the standing committee handling gaming. Ideas raised included using gaming-related revenue for prevention and treatment, fully funding the 988 lifeline, and creating a broader trust fund for addiction-related services and law enforcement. The committee appeared to agree to continue the topic for educational purposes and to examine taxation of HHR and other gambling activity. Senator Case then proposed a severance tax on wind energy, arguing that wind development creates permanent landscape impacts and that the state should be compensated similarly to coal, oil, and gas extraction. Curt Meier, the state treasurer, supported reviewing lease agreements and said Wyoming should get more from wind resources, noting the state’s unique wind potential and the loss of viewshed. Finally, the committee heard a proposal to reform property tax relief by extending it to motor vehicle registration. Former Revenue director Dan Noble argued that vehicle taxes should be treated like other property taxes, using fair market value, depreciation, the residential assessment ratio, and local mill levies, which he said could provide broad relief but would be expensive, with an estimated fiscal impact of about $120 million. Representative Chestek followed with a related reform proposal based on Pennsylvania’s base-year assessment model, arguing that Wyoming’s current statewide relief measures treat symptoms rather than the underlying problem of rapidly rising local valuations.

Transcript Highlights:

• The revenue from this tax will is The revenue from this tax will is restricted<00:01:59.520> to
• state revenues and policy and so forth. state revenues and policy and so forth.
• And I'm very revenue fund is spent.
• <01:46:22.639> Um revenue system. All right. Um revenue system. All right.
• <02:09:50.719> that potentially replace that revenue that potentially replace that revenue

Transcript Highlights:

• Is that your federal revenue grants?
• So where is... 27 so where is that fund a part of the state revenue, the general revenue, or is that
• Their budgeted state general revenue line is for $5 million... ...the state general revenue line is for
• to the general revenue.
• It's general revenue. It's state general... Court? No, not that I'm aware of. It's general revenue.

Keywords: 1204, all

Transcript Highlights:

• For traffic and revenue, for the purposes of tolling, we focus on annual traffic and revenue projections
• Now, there are several potential uses of net toll revenues.
• In getting to what we're paying to get to net revenues out of gross revenues, I just want to acknowledge
• net revenues actually follow very closely.
• at a potential revenue level.

Keywords: 904, all

Transcript Highlights:

• The next section is revenues bienium.
• Uh broker dealer examiners fee revenue.
• So that has revenues of 246,000 in fiscal years 26 and 27 and revenues of 480,000 in fiscal years 28
• So equal to the revenue on line seven.
• million in federal pass through revenue million in federal pass through revenue will<00:06:58.720

Keywords: 1187, senate, all

Transcript Highlights:

• I did not say they would have to find a new way to get that revenue.
• The revenue impact is $91 million.
• And yes, revenues go higher. The more people who move in, Rep.
• create another revenue to make sure that Rep.
• The fact of the matter is, the loss in the revenues would have to be made up.

Transcript Highlights:

• Against that revenue of $1.1 billion, we spent roughly $16 million.
• So first off, on our revenues, our revenues have grown to $98 billion, which is a 30 percent increase
• In addition to our higher revenues, our costs per dollar of revenue, our In addition to our higher revenues
• One, we're a revenue department. So filling vacancies means more revenue for the state.
• So fuel taxes are one of the largest tax revenues.

Summary: The Assembly Budget Subcommittee on State Administration heard several budget proposals from CDTFA, the Board of Equalization, and the Franchise Tax Board. The first panel focused on cannabis, hemp, flavored tobacco, and related enforcement. CDTFA requested ongoing funding to implement cannabis tax changes, enforce the new intoxicating hemp restrictions and flavored tobacco seizure authority, and continue compliance work. The department said it is targeting illicit product, protecting licensed businesses, and using referrals from the public and lawmakers to focus inspections. The LAO supported some of the proposals but urged the Legislature to treat them as part of a longer-term enforcement strategy and raised concerns about the use of General Fund support for cannabis enforcement. Public testimony on the cannabis item largely supported stronger enforcement and funding for the legal market. The committee also heard CDTFA’s request to reappropriate funds for an upgrade to the CROS tax collection system, which would improve taxpayer services, security, and software maintenance without adding new money. A separate CDTFA proposal would make all delivery network companies, such as DoorDash and Uber Eats, marketplace facilitators for sales tax purposes. CDTFA said the change would reduce confusion for restaurants and improve compliance, while the LAO questioned whether the proposal functioned more like a tax increase because it would also capture service fees. Members raised affordability concerns, but the proposal was framed by the administration as a parity and compliance measure. The subcommittee then considered a governor’s proposal for a sustainable aviation fuel tax credit. Finance argued the credit would help decarbonize aviation and support in-state production, while the LAO recommended rejection, citing cost, uncertainty about environmental benefits, possible diversion of diesel excise tax revenues from transportation programs, and concerns about consistency with voter-approved transportation funding rules. Testimony from airlines, labor unions, airports, and refinery workers strongly supported the credit, emphasizing union jobs, refinery conversions, and emissions reductions, while fuel retailers and some others warned about fiscal risk and higher fuel prices. The chair and some members expressed support for the proposal despite the funding concerns. Finally, the BOE presented an IT modernization project for state-assessed property administration, saying the current system is outdated and manual and that a new system is needed to improve accuracy, cybersecurity, and workflow efficiency, especially with a likely increase in workload from new VoIP assessments. The LAO asked for more justification for the timing, but BOE said the urgency stems from aging systems and growing workload. BOE also requested modest funding to implement SB 293 changes to intergenerational property transfers and wildfire relief guidance, which the LAO did not oppose. The Franchise Tax Board began its presentation on the final phase of its Enterprise Data to Revenue modernization effort, describing the project’s rollout across audit, collections, legal, and filing enforcement workloads and noting it is now in a warranty period.

Transcript Highlights:

• If revenue falls short, the state could simply rescind that deposit.
• The LAO explained to us today that for every dollar of revenue, either above our expected revenue or
• That only is the case if we actually see that revenue. Exactly.
• Because fixed costs have gone up higher than the revenue.
• , not even an increase in revenue.

Summary: The Assembly Budget Subcommittee on Education Finance met for its annual Proposition 98 overview, with Chair Alvarez outlining the committee’s focus on K-12 funding, student outcomes, and use of one-time funds. Superintendent Tony Thurmond gave an update on education issues, including wildfire recovery support for affected school communities, ongoing concerns about federal threats to education funding and immigration enforcement, progress on literacy and math, dual-language immersion, educator housing, and support for dual enrollment. Members broadly expressed support for these priorities, while also raising concerns about implementation, funding stability, and the need for schools to remain safe places for students. The committee then reviewed the Governor’s Proposition 98 proposal. The Department of Finance said the 2025-26 Proposition 98 guarantee is projected at $118.9 billion, with higher revenues and TK-related rebenching driving the increase. The LAO said the budget adds about $7.5 billion over two years and discussed the volatility of the guarantee, especially in 2024-25, when changes in revenue could have an outsized effect on school funding. Members questioned the proposed $1.6 billion delayed settle-up payment, the legal basis for delaying it, and the impact of possible federal funding freezes. The LAO presented alternatives such as a reserve deposit or delayed disbursement, while Finance said the proposal is intended to manage uncertainty. Members also raised concerns that ethnic studies implementation was not funded in the January budget, and Finance said the administration was not proposing funding for it. The committee next heard on the Proposition 98 rainy day fund and education deferrals. Finance said the reserve would receive a mandatory deposit of about $1.2 billion in 2024-25 and a discretionary deposit of $376 million in 2025-26, leaving a balance of about $1.5 billion. The LAO supported rebuilding the reserve as a way to manage volatility. On deferrals, Finance described the Governor’s plan to eliminate remaining deferrals by 2025-26, and the LAO said paying them off improves cash flow and budget resilience. Members generally supported eliminating deferrals and rebuilding reserves, though some asked about acting earlier if revenues allow. The committee also reviewed the proposed $1.8 billion student support and professional development block grant; Finance said it would fund professional development, recruitment and retention, and dual enrollment, while the LAO recommended clearer language on local discretion and use for one-time costs. Members were divided, with some supporting flexibility and others warning that one-time block grants can create instability and confusion for districts.

Transcript Highlights:

• is the federal revenue.
• Representative, I'm including all revenue sources for total revenue from the water and food, which includes
• some clinic revenue, pharmaceutical revenue, etc.
• Preliminary estimates would reduce hospital patient revenue by less than 2% annually. revenue by less
• It reduces spending by about 158 million in federal revenue and 17 million in general fund revenue because

Transcript Highlights:

• Now, the revenue source at the heart of the Well Washington Fund is a corporate payroll tax on annual
• We can't rely on tuition revenue, which is just a very small part of the revenue stream to UW.
• Do we have a spending problem, a priority problem, or do we have a revenue problem?
• I mean, is there a point of revenue where you’d be satisfied with a number of taxes, the amount of revenue
• I mean, is there a point of revenue where you’d be satisfied with a number of taxes, the amount of revenue

Summary: The meeting was a press conference and Q&A led by Rep. Shaun Scott to promote the proposed Well Washington Fund, a new dedicated account intended to raise about $3 billion annually through a corporate payroll tax on wages above $125,000. Scott said the bill would help offset expected federal cuts under Trump-era policies and support programs most at risk, including cash assistance, higher education, health care, housing, and wildfire mitigation. He also referenced two related proposals: restoring wildfire mitigation funding by ending a tax break for large banks, and allowing counties to raise corporate taxes. Several advocates and affected residents testified in support of progressive revenue. Michelle Thomas of the Washington Low Income Housing Alliance warned that federal homelessness policy changes and state underinvestment could worsen homelessness and evictions. Christina Savitsky, a disabled veteran, described how Medicaid, food assistance, and work requirements would affect her family. Representatives from the University of Washington AAUP said federal cuts and Medicaid changes threaten teaching, research, workforce training, and hospital finances. Fatima Boxwala of Tech for Taxes and Mikey Stramskis of the Washington Federation of State Employees argued that large corporations and the wealthy should pay more to sustain public services and address understaffing, burnout, and service backlogs. In the Q&A, Scott said the bill may need an emergency clause to make it referendum-proof and argued that the legislature has a mandate to act, citing the 2024 capital gains tax referendum and the state’s regressive tax system. He acknowledged concerns about businesses leaving but said he was more concerned about working people being displaced by unaffordable housing, child care, and health care. No vote or formal committee action occurred; the event was a call for a hearing in the House Finance Committee in 2026 and for legislative passage in both chambers.

Transcript Highlights:

• Fund revenue estimates, growth in local property tax revenue, and an adjustment for transitional kindergarten
• The LAO explained to us today that for every dollar of revenue, either above our expected revenue...
• Revenue estimate for 2024-25 until May of 2026.
• Because fixed costs have gone up higher than the revenue.
• , not even an increase in revenue.

Keywords: 988, house, all

Transcript Highlights:

• information that the revenue estimate is information that the revenue estimate is based<00:16:00.639
• information they gave to the Department of Revenue and that the revenue estimate correctly identifies
• information they gave to the Department of Revenue and that the revenue estimate correctly identifies
• uh for uh indicated by the revenue uh for uh indicated by the revenue estimate<00:29:35.799>
• Does that track to the revenue estimate? Madam Chair, I would defer to Mr.

Keywords: 1187, senate, all

Transcript Highlights:

• research there will typically be Revenue research there will typically be Revenue estimates<00:07
• have proposals to modify tax revenues have proposals to modify tax revenues tax<00:09:31.720>
• <00:10:20.240> tax<00:10:20.480> revenues of specific tax revenues tax revenues of
• revenue revenue neutral as are typically revenue revenue neutral as is<00:30:02.440> Minnesota's
• Revenue sufficiency: does the tax system raise enough revenue to fund state government?

Keywords: 1183, house

Summary: The House Tax Committee met for an organizational and orientation session. Members and staff introduced themselves, with several lawmakers noting their districts, business backgrounds, and interest in tax policy. Chair Greg Davids then opened the committee’s first substantive item: a presentation from House Research and House Fiscal staff on how the committee works and on basic tax concepts. House Research staff Sean Williams and Chris Clayman explained their roles in drafting bills and amendments, writing bill summaries, answering legal and policy questions, and modeling tax proposals. They also described the committee’s key documents, including partisan and nonpartisan bill summaries, revenue estimates, fiscal notes, and supporting materials. Their presentation covered core tax concepts such as tax bases, rates, deductions, exemptions, credits, tax revenues, and tax expenditures, emphasizing that tax expenditures function like spending through the tax code and are reviewed by a legislative commission. The staff then reviewed Minnesota’s major taxes, focusing on the individual income tax and business taxation. They explained that Minnesota’s individual income tax starts with federal adjusted gross income, then applies state additions, deductions, subtractions, and credits, and that the state’s income tax brackets and rates are set separately from federal law. They also outlined the difference between corporate franchise taxes for C corporations and individual income tax treatment for pass-through entities, and discussed how the federal SALT cap led Minnesota and other states to adopt pass-through entity taxes so businesses could preserve federal deductibility of state taxes. Members asked questions about a duplicate “marriage penalty” entry on a slide, the purpose of Minnesota’s marriage penalty credit, comparisons with other states, and the timing and effect of the pass-through entity tax; staff answered that the duplicate was a mistake, the credit offsets bracket-related marriage penalties, and the pass-through entity tax was adopted in response to the federal SALT cap.

Transcript Highlights:

• Chairman, and I'm really that the tobacco um uh revenues and that the tobacco um uh revenues and sales
• Okay, next I have Michael Rolo. up that revenue from what bucket? up that revenue from what bucket?
• , this is the best way to raise revenue, this is the best way to raise revenue, not<00:53:31.520>
• are gaining revenue and our businesses are gaining revenue and our businesses are<00:54:38.559><
• I would suggest that the revenue estimates that we would see here for increase in revenue are wrong.

Keywords: 1189, house, all

Transcript Highlights:

• House Bill 2153 conforms state statute to the Internal Revenue Code as of January 1, 2026, including
• Gras, on top of the Department of Revenue, what the Department of Revenue did with the assumption of
• So, again, the Department of Revenue didn't do anything wrong. Let me just say that.
• The Department of Revenue always assumes that. Please explain above the line. Right.
• the Department of Revenue, I'm not aware that it's ever happened.

Keywords: 1182, all

Summary: The caucus focused on HB 2153, a tax conformity bill that would align Arizona statute with the Internal Revenue Code as of January 1, 2026, including retroactive provisions affecting tax year 2025. Staff explained that the bill excludes three federal provisions from H.R. 1: the additional $6,000 senior deduction, the increase in the state and local tax (SALT) deduction to $40,000, and the deduction for interest on new car loans. It also adds several Arizona-specific provisions, including a $6,000 deduction for certain retirement distributions for taxpayers age 65 or older, a $6,000 deduction for Roth IRA contributions, an increase in the dependent tax credit from $100 to $125, and a deduction for child and dependent care expenses above the federal credit. JLBC’s fiscal note was cited as a negative $441.3 million in year one, declining over the next two years. Chairman Livingston and other Republican members argued the bill was needed immediately because the Department of Revenue had already issued tentative forms assuming full conformity, creating confusion for taxpayers and businesses. They said the state needed a signed law as soon as possible to avoid amended returns, inconsistent filing rules, and uncertainty for small businesses. Livingston emphasized that the bill was intended to protect small businesses from having to keep two sets of books and said he was advising taxpayers not to file until the issue was resolved. Members also discussed the practical impact on small businesses, citing testimony that Arizona has about 700,000 small businesses employing well over a million people. Several exchanges clarified the difference between the governor’s November direction to the Department of Revenue and the bill before the committee. Staff explained that DOR normally assumes “simple conformity” and that the governor’s directive attempted to add “below-the-line” deductions through a worksheet, but that those items still require statutory authorization. Members said the governor’s action was confusing and characterized it as a press release rather than binding law. The committee also discussed the child care provisions, describing them as a federal-style deduction Arizona has not previously adopted and as one of the main new benefits in the bill. The caucus ended without a vote, and members were told the floor would begin at 10 a.m.