Transcript Highlights:

• to the high load factor data center rate schedule.
• Thank you for this rate increase.
• And we're keeping rates affordable for existing customers.
• So is that a part of the current rate case that you have?
• Okay, so that's not a part of the current rate case?

Bills: HB2133 , HB2592

Committee: House Artificial Intelligence & Innovation

Keywords: sexual material, consent, synthetic depiction, privacy, internet regulation, rights protection, artificial intelligence, government regulation, innovation, procurement, administrative burdens, 1182, all

Transcript Highlights:

• <00:02:23.920><c> uh</c> rate uh class rate is uh rate uh class rate is uh multiplied<00:02:25.680><c
• </c> longer separate classifications rates longer separate classifications rates for<00:31:36.559><c>
• </c> enters that second tier the class rate enters that second tier the class rate would<00:34:03.480
• </c><00:35:34.760><c> of</c> limit is is um uh has a class rate of limit is is um uh has a class rate
• This taxable market value is then multiplied by the class rate and by the local tax rate to calculate

Committee: Senate Taxes

Keywords: 1187, senate, all

Transcript Highlights:

• And then lastly, we... ...proposed a couple of things in our data center rate tariff.
• With the current rate structure? So, did you add 45, or is it now 45? We've proposed 45%.
• increase to the high-load factor data center rate schedule.
• So is that a part of the current rate case that you have?
• Okay, so that's not a part of the current rate case?

Committee: House House Artificial Intelligence & Innovation Committee of Reference

Summary: The House AI and Innovation Committee first heard a presentation from APS on its data center strategy and the rapid growth of AI/data center demand in Arizona. APS said it is trying to protect reliability and affordability for existing customers while preserving capacity for other growth, and emphasized that “growth should pay for growth.” APS described its current peak load, projected growth, and the scale of potential data center demand, and explained that data centers differ from other customers because they use large amounts of power around the clock and require major new infrastructure. APS said it has proposed two ways to serve them: a revised data center tariff filed with the Corporation Commission and separate bilateral contracts with upfront customer contributions. Committee members asked about whether residential customers are subsidizing data centers, the proposed 45% increase for the data center rate class, possible impacts on development, self-generation behind the meter, seasonal load, and APS’s longer-term resource plans, including nuclear, gas, renewables, and possible SMRs. APS said residential customers are not intended to subsidize data centers and that the proposal is designed to assign costs directly to those customers. The committee then took up House Bill 2133, which requires commercial entities that knowingly distribute or publish sexual material online to obtain reasonable consent and age verification, including for synthetic or AI-generated or altered images, and authorizes civil penalties for violations. A five-page amendment in Representative Kupper’s name narrowed the bill by excluding internet service providers, affiliates, subsidiaries, search engines, and cloud providers from responsibility for content they do not create or directly host. Representative Kupper said the bill is intended to protect people in adult content from exploitation and non-consensual use, including trafficking-related material and revenge porn, and compared it to existing age- and consent-verification practices in the physical adult-content industry. He said the penalties mirror those used in related laws, including a $10,000-per-day structure. During debate, several members said they supported the bill’s intent but wanted to reserve the right to change their votes after further stakeholder discussions, citing First Amendment and implementation concerns. One member noted a similar federal proposal with a higher fine structure. After no public testimony was offered, the committee adopted the amendment and then voted 5-0 with two members present to give HB 2133, as amended, a due pass recommendation.

Transcript Highlights:

• </c> return on equity in utility rate cases. return on equity in utility rate cases.
• </c> electric rates, I believe. electric rates, I believe.
• </c> job is to make sure that the rate job is to make sure that the rate increases<00:26:48.640><c> that
• </c><00:27:04.799><c> rates</c> limited as they can possibly be. rates limited as they can possibly be
• </c> to see rate decreases. to see rate decreases.

Keywords: 928, house, all

Summary: The Fiscal Committee met on Friday, November 21st and first approved the October 17th minutes, with one member abstaining because she was not present. The committee then adopted the remainder of the consent calendar after removing two items for separate consideration. On tab four, members discussed item 25282 with the Commissioner of Administrative Services and Public Works staff; the project had been delayed after testing revealed design errors and flaws, and the committee was told the work would restart with test piles the following week and was projected for completion in fall 2027. The item was approved. On tab five, item 25279 concerned a Health and Human Services facility project and a federally required element added late in the process. Commissioners explained that the project had originally been funded at $21 million, later required additional financing, and that the legislature had recently lifted a restriction so non-ARPA funds could be used. They also said the sale of the existing Manchester property would not be needed to complete the build, that a broker RFP was about to be issued, and that any sale would require further approvals. The committee approved the item. The committee then approved item 25280 after a brief exchange about rainy day fund estimates and prior budget assumptions, and approved item 25278 without discussion. Item 25272 drew questions about the consumer advocate’s RFP for outside utility-rate-case assistance; the office said it eliminated proposals focused only on return on equity work after the Eversource decision, selected a Michigan firm for spreadsheet and operating-cost analysis, and noted there were no in-state firms doing this specialized work. The committee approved the item, with one member recorded in opposition. On tab nine, item 25261 concerned a new judicial council budget obligation tied to legislation and public defense staffing needs. The presenter said the request reflected a late-added obligation from the judicial branch, that more requests may still be needed, and that public defense staffing was strained by vacancies and competition from Massachusetts. The committee approved the item. Under informational items, members received an update on 529 plan distributions and on interest and dividends tax refunds, with Revenue Administration saying roughly $21 million more in refunds remained and that the repeal-related refunds were nearly finished. The committee also noted an environmental services item for which questions would be submitted separately. The next meeting was set for December 19th at 11:00 a.m., and the committee adjourned.

Transcript Highlights:

• It's our rates, I'll get into that shortly, but our rates are some of the lowest in the state.
• And remember, when we charge those customers retail rates, embedded in those retail rates is the cost
• And remember, when we charge those customers retail rates, embedded in those retail rates is the cost
• When you mean the rate of return, are you talking about our rate of return or the refunds that we would
• And that rate of return is based on the authorized rate of return that the PUC determines in a proceeding

Summary: The joint informational hearing of the Assembly Committees on Utilities and Energy and Privacy and Consumer Protection focused on the energy impacts of AI and the rapid growth of data centers in California. Chairs and members emphasized that the state wants to support innovation and data center development, but only under terms that protect ratepayers, preserve reliability, and avoid stranded grid costs. Testimony from Lawrence Livermore National Laboratory, the California Energy Commission, the CPUC, CAISO, PG&E, Silicon Valley Power, and the Data Center Coalition described the scale of projected load growth, the uncertainty in forecasting, and the need for coordinated planning across agencies. Dr. Nate Gleason of Lawrence Livermore said data centers are a major and fast-growing share of electricity demand, with planning challenges driven by short construction timelines for data centers versus long lead times for transmission and generation. He urged stochastic planning, co-optimization of generation, storage, and transmission, and greater use of flexible load and demand response. CEC Director Alicia Gutierrez described the CEC’s bottom-up forecasting approach, based on utility energization requests and load profiles, and said California has over 23,000 megawatts of data center capacity requests in the CAISO footprint. CPUC Deputy Executive Director Luan Tesfai outlined recent actions on energization timelines, flexible service connections, PG&E’s Rule 30 tariff, and the commission’s resource planning and transmission permitting work. CAISO’s Neil Miller stressed that large loads affect transmission planning, interconnection, and reliability standards, and said the agency is preparing additional stakeholder work on technical issues. Utility and industry witnesses said California is already seeing substantial data center interest and is building out infrastructure accordingly. PG&E’s Mike Medeiros said the utility has more than 10 gigawatts of data center interest in its territory, has shifted to cluster studies, and is using flexible interconnection tools such as FlexConnect to speed service while protecting reliability. Silicon Valley Power’s Nico Prokos said data centers account for about 55% of its power use and that the city is investing heavily in transmission and local system upgrades to support projected load growth. He also warned that AI loads may be more variable than traditional cloud loads and that backup generation and air quality constraints complicate curtailment strategies. The Data Center Coalition’s Karabonder argued that data centers are also driving efficiency gains and support critical digital services, while urging better forecasting methods, more transparency, and regular backcasting. Members asked about statutory authority, data availability, flexible load, and whether current forecasts are sufficient for long-lead infrastructure planning. Witnesses said California already has authority to pursue flexible service and rate design, and that the CEC and CPUC have access to utility data, though out-year demand remains highly uncertain. CPUC representatives noted an advanced rate design rulemaking and said the commission is opening additional work on ratepayer impacts. No votes were taken during the informational hearing, and the discussion ended with continued questions about how California should structure planning, pricing, and reliability rules as AI-related load grows.

Transcript Highlights:

• </c> to ICFs that were at the rate floor. to ICFs that were at the rate floor.
• </c> all ICF rates as written. all ICF rates as written.
• </c> system for rate change or rate increase system for rate change or rate increase to<00:31:51.360>
• </c> 2023 was to establish a rate floor. 2023 was to establish a rate floor.
• There's the rate floors.

Committee: Senate Human Services

Keywords: 1187, senate, all

Transcript Highlights:

• as close as possible to the risk free rate of return and the rate increases which are allowed have to
• But they just had that rate schedule this.
• And so consequently, what they bill asked for is before we asked rate payers to pay an increased rate
• Fair and equitable rates for everybody.
• My hope is that they're 12 million rate payers will be given an opportunity to share how the rate increase

Keywords: 999, senate, all

Transcript Highlights:

• It would reduce the payment rates by removing the funding...
• The new payment rate below would still include the rate increases in this residential habilitation allocation
• The $70 million down below, the rate increase, would still stay.
• increases are still 33% above the 2022 rates.
• When the rate increase went in place, the numbers went up significantly.

Summary: The Senate Health and Welfare Committee approved the February 18, 2026 minutes and then heard House Bill 863 from Senator Julie Van Orden. The bill would reduce Medicaid residential habilitation rates by pulling back funding tied to a 2022 KW lawsuit-related service array while keeping the separate provider rate increase in place, and it would add audit/cost-survey language. Department of Health and Welfare officials said the 2022 funds were originally federal ARPA dollars, that the state share was later expected to be addressed, and that the bill would require third-party audits and broader cost surveys for home and community-based services. Van Orden and the department argued the bill would not eliminate services but would strengthen oversight and provide better data for future rate decisions. Testimony was sharply divided. Providers and advocates said the proposed reduction would destabilize residential habilitation agencies, force wage cuts, reduce services, and risk closures, while supporting the audit and transparency provisions. Several witnesses emphasized that the services help vulnerable adults remain in the community and warned of downstream costs if supports are reduced. A litigation attorney testified that the bill’s findings were inaccurate, saying the KW case remains active, the department is still under court orders, and reductions could trigger further litigation or enforcement issues. Department officials responded that the bill would repeal certain rate-setting rules tied to current cost-survey methods and that the new audits would be phased in. After testimony, Senator Van Orden closed by reiterating that the bill was intended to reduce, not remove, the service funding and to require a third-party audit. The committee then considered motions to hold the bill in committee. A substitute motion to hold House Bill 863 in committee subject to the call of the chair passed on a 7-4-2 vote, and the bill was held in committee.

Transcript Highlights:

• 2025, which projects the contribution rate beginning July 1, 2026.
• So the 30.05% is an aggregate contribution rate.
• So for rank and file, you can see that the total rate is 29.25%.
• So for rank and file, you can see that the total rate is 29.25%.
• And you can see the 565, they are. the contribution rate.

Summary: The Public Retirement Systems Actuarial Committee met on June 22 and approved the minutes from the February 23, 2026 meeting. There was no public comment. The main discussion focused on Louisiana State Employees’ Retirement System (LASERS) and how appropriations from House Bill 312 of 2026 affect the system’s actuarial valuation and employer contribution rate for fiscal year 2027. Staff explained that HB 312 provided about $145 million in appropriations to LASERS, with roughly $87.6 million applied to the original amortization base and about $57.9 million applied to the experience account amortization base. As a result, the projected aggregate employer contribution rate for the fiscal year beginning July 1, 2026 was revised from 32.51% to 30.05%, a reduction of 2.46%, and the required projected employer contribution was updated to about $738.7 million. The presentation also noted that the June 30, 2025 valuation itself did not change, only the projected 2026 rate, and that the original amortization base would be paid off by June 30, 2026. Committee members asked about the longer-term effect of the changes, including a projected 2036 payment reduction. Staff explained that later-year UAL payments would be lower, but that the exact savings would depend on future actuarial experience and investment performance. The committee then adopted the motion to revise the projected fiscal year 2027 LASERS aggregate contribution rate to 30.05%, subject to the appropriation, and later adjourned without opposition.

Transcript Highlights:

• Say any auto insurance rates?
• When you're taking CPI, the rates are the same as they were in 2003. The insurance rates?
• Commercial is not seeing any rate decreases. The 15% rate decrease is in auto.
• rates either.
• millage rate until the authorized millage rate expires.

Bills: HB37 , HB51 , HB173 , HB180 , HB192 , HB306 , HB366 , HB393 , HB485 , HB516 , HB521 , HB526 , HB638 , HB752 , HB817 , HB976 , HB1006 , HB1044

Committee: House Civil Law and Procedure

Keywords: HB37, expropriation, eminent domain, property rights, foreign entity, foreign corporation, limited liability company, LLC, reciprocal expropriation agreement, Louisiana property law, land acquisition, utility infrastructure, public utilities, railroad, waterworks, sewerage, natural gas pipeline, electric utility, telecommunications, carbon dioxide pipeline

Transcript Highlights:

• However, there is a rating component in the current quality rating and improvement system.
• Delinking the rate will allow the subsidy rates to reflect the actual cost of care, while not putting
• We are asking for three things: rate reform. We need our current rates to be current.
• We support the rate reform transition plan as well, and the shift to a more equitable cost-based rate
• earlier, including the rate floor, like the cost-of-care-plus rates, and any other costs related to

Summary: The joint hearing focused on California’s child care, preschool, and transitional kindergarten oversight, with chairs emphasizing the state’s Master Plan for Early Learning and Care and the need to break down silos between programs. CDSS and CDE reported progress toward the plan’s goals, including universal access to TK for all four-year-olds next school year, expanded access for low-income three-year-olds, and more children with disabilities being served in state preschool. They also noted ongoing work on quality rating/review reform, funding structure changes, and the need to address rates, workforce shortages, and federal uncertainty around Head Start. Testimony from advocacy groups and providers largely supported expanding access while simplifying the system. Children Now, Every Child California, and the California Budget and Policy Center argued that California still has uneven access, especially for infants, toddlers, and three-year-olds, and urged investments in mixed delivery, inclusion, full-day options, and a cost-of-care rate methodology. Every Child California recommended consolidating part-day and full-day contracts, streamlining eligibility priorities, making the two-year-old option permanent, and funding staffing incentives. Parent testimony highlighted how child care gaps and county-to-county transfer delays can disrupt work, safety, and children’s stability, and providers described low reimbursement rates, the need for health and retirement benefits, and support for delinking subsidy rates from private pay. The second panel addressed universal transitional kindergarten. The Learning Policy Institute reported rapid TK expansion, with most districts now offering TK, but said access still depends on facilities, staffing, and whether programs are available at all school sites. The Department of Finance said the governor’s budget would fully implement TK by adding funding for all eligible four-year-olds and lowering the adult-to-child ratio from 12:1 to 10:1. The Legislative Analyst’s Office said the administration’s enrollment and cost assumptions were optimistic and estimated lower TK enrollment growth and lower costs for the ratio change. CDE supported the expansion and urged continued funding for UPK coordinators, teacher development, and mixed-delivery planning grants. Members questioned facilities shortages, staffing competition, and how to ensure TK expansion does not displace CSPP or Head Start classrooms. No formal votes or actions were taken in the hearing.

Transcript Highlights:

• </c> to implement these PEDM rate increases? to implement these PEDM rate increases?
• The statute doesn't rate increases.
• </c> require you to find the rate increases. require you to find the rate increases.
• </c> do these rate increases. do these rate increases.
• </c> the national rate of child malreatment. the national rate of child malreatment.

Keywords: 0:16 – CALL TO ORDER 0:20 – ROLL CALL 0:56 – ELECTION OF CO-CHAIRS 1:54 – APPROVAL OF MINUTES 2:10 – OFFICE OF THE ATTORNEY GENERAL 3:28 – PERSONNEL BOARD 4:30 – EDUCATION AND LABOR CABINET, BOARD OF EDUCATION, DEPARTMENT OF EDUCATION 5:18 – PUBLIC PROTECTION CABINET, OFFICE OF CLAIMS & APPEALS 12:03 – PUBLIC PROTECTION CABINET, DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL 12:54 – CABINET FOR HEALTH AND FAMILY SERVICES, DEPARTMENT FOR MEDICAID SERVICES 14:54 – CABINET FOR HEALTH AND FAMILY SERVICES, DEPARTMENT FOR COMMUNITY-BASED SERVICES 31:44 – NEXT MEETING ANNOUNCEMENT/ADJOURNMENT, 958, all

Summary: The Administrative Regulation Review Subcommittee met to reorganize its leadership for the new term, renewing Representative Derek Lewis as House co-chair and Senator Steven West as Senate co-chair. The committee then approved the minutes and moved through a series of agency regulations, generally adopting staff-suggested amendments without objection. Among the regulations reviewed were an Attorney General rule changing how a commission reviews and distributes funds and how grant reporting is handled; Personnel Board changes abolishing and renaming certain job classifications and adjusting probationary periods; an Education and Labor Cabinet rule removing references to local board of education members; several Public Protection Cabinet rules covering Board of Claims and Crime Victims’ Compensation procedures; an Alcoholic Beverage Control rule on direct-to-consumer shipping forms; and a Medicaid Services emergency regulation establishing the Kentucky Trauma Hospital Rate Improvement Program for rural hospitals serving many Medicaid patients. The committee also heard that the Board of Claims and Crime Victims’ Compensation regulations included both staff and, in one case, an agency amendment, which were approved. The most extended discussion came on the Department for Community Based Services’ regulation increasing per diem rates for private child-placing therapeutic foster care levels 2 and 3. Committee members questioned the estimated $10 million biennial cost, the source of the funding, and why the cabinet had not yet filed regulations implementing Senate Bill 151 on kinship care. DCBS staff said the rate increase was discretionary and intended to address placement crises for children with high needs, while acknowledging they could not personally explain the budget decisions. A kinship caregiver testified in support of the rate increase but urged the cabinet to also implement SB 151 and expand support for kinship families. The committee expressed frustration over the lack of SB 151 implementation but stated the rate increase itself was appropriate and allowed the regulation to proceed.

Transcript Highlights:

• rates they offer.
• of the two rates.
• With a safe harbor rate set at 25% of the federal funds target rate, the lowest safe harbor rate in the
• of the two rates.
• With a safe harbor rate set at 25% of the federal funds target rate, the lowest safe harbor rate in the

Committee: Senate Judiciary

Summary: The Judiciary Committee met with a quorum present and considered several bills. SB 106 on exploitation of vulnerable adults would allow service of process on scammers through the same nontraditional communication methods they use; it passed 8-0. CS/SB 280 on candidate qualification would create an enforceable party-affiliation requirement and a private right of action to disqualify noncompliant candidates; it passed unanimously. CS/SB 948 on flood disclosures was amended to extend disclosure requirements to residential leases, condo developer leases, and mobile homes, with tenant remedies if disclosures are not provided and flooding causes major losses; it passed 8-0. The committee also advanced CS/SB 498 on IOTA interest rates after a lengthy debate over legal aid funding and bank regulation. Supporters argued the bill would restore sustainability and fairness to the program by setting alternative interest-rate benchmarks, while opponents said it would cut funding for civil legal aid and that banks participate voluntarily. After testimony from legal aid leaders and bankers, the bill passed 7-2. SB 774, requiring clerks to electronically transmit certain mental health, substance abuse, and risk protection orders to sheriffs within six hours, was presented in response to a fatal Volusia County incident and passed 11-0. CS/SB 752 on defamation and online publication was amended to require removal from a website rather than the internet, then passed 8-2 after testimony from the media, a private attorney, and supporters who said it would help people harmed by false online reports. The committee also heard SB 832 on former phosphate mining lands, which would create a narrow defense against strict liability claims if notice and gamma radiation survey requirements are met. The bill was amended to clarify notice provisions and received support from industry and technical witnesses describing radiation surveys and reclamation practices. The transcript cuts off before the final vote on SB 832, so no committee action on that bill is shown in the excerpt.

Transcript Highlights:

• So, the compensating rates are equal to the GRT rates for local governments.
• The rate was 12%.
• a lower rate and higher income individuals at a higher rate.
• Rate is preferred to a narrow tax base with a high rate.
• Interest rates are high.

Committee: House Revenue Stabilization & Tax Policy Committee

Transcript Highlights:

• </c><00:19:02.480><c> what</c><00:19:02.679><c> rate</c> improving the credit rating what rate improving
• in credit rating what the impact<00:19:11.280><c> of</c><00:19:11.440><c> rate</c><00:19:11.640><c>
• </c><00:19:17.039><c> without</c> borrowed at a higher rate without borrowed at a higher rate without
• </c> securitization what the impact to rate securitization what the impact to rate payers<00:19:20.320
• just and reasonable rates.

Committee: House Energy & Environmental Protection

Keywords: 910, house, all

Summary: The committee on Energy and Environmental Protection heard testimony on Senate Bill 897, which would create a Wildlife Liability Trust Fund within DCCA for administrative purposes. The chair opened by noting the hearing had to end by noon because of floor session, and that written testimony would be considered if not all witnesses could speak. Testimony included support from DCCA, the Attorney General’s office, the Public Utilities Commission, Charter Communications, Ulupono Initiative, AES Hawaii, Hawaiian Electric, Clearway Energy Group, Kauai Island Utility Cooperative, Hawaiian Telcom, and IBW Local 1260, with opposition or concerns from the Hawaii Association for Justice and some others. Hawaiian Electric strongly supported the bill and asked for amendments, saying the fund would help address wildfire liability, protect customers and the economy, and support restoration of investment-grade credit; it also proposed a larger shareholder contribution and said the bill was part of a broader effort to raise settlement funds and improve grid safety and resiliency. Committee members focused heavily on whether the bill would actually lower costs for ratepayers and improve credit ratings. DCCA said there was a nexus between limiting liability, creating a sufficiently large wildfire fund, and transparent mitigation requirements, but acknowledged there was no guarantee of a credit-rating improvement or precise estimate of rate impacts. Members questioned Hawaiian Electric about the assumptions in its cost comparisons, the 30-year securitization structure, and whether funding could be shifted later to shareholders after credit was restored. Hawaiian Electric responded that the bill assumes the fund is paid through securitization, that removing that presumption could undermine the credit-rating benefit, and that its models suggest credit-spread savings could offset the customer charge over time; it also said it would follow up with additional analysis. The company and Ulupono both described the measure as a difficult but potentially necessary way to socialize wildfire risk and avoid a larger crisis later. The Hawaii Association for Justice opposed the bill’s liability caps and raised concerns about consumer rights, oversight discretion, statute-of-limitations changes, and evidence rules. Hawaiian Telcom suggested amendments to clarify compliance with FCC pole-attachment agreements. No vote or final action was taken during the portion of the hearing provided, and members indicated they wanted more analysis before being comfortable with the bill’s long-term ratepayer impacts.

Transcript Highlights:

• It's our rates; I'll get into that shortly, but our rates are some of the lowest in the state.
• And then turning to economic and rate benefits...
• And remember, when we charge those customers retail rates, embedded in those retail rates is the cost
• When you mean the rate of return, are you talking to our rate of return or the refunds that we would
• And that rate of return is based on the authorized rate of return that the PUC determines in a proceeding

Keywords: 988, house, all

Transcript Highlights:

• </c> rate cuts by the end of uh fiscal 27 Q2. rate cuts by the end of uh fiscal 27 Q2.
• </c> wages and salary solid growth rates. wages and salary solid growth rates.
• tax rate world.
• Um, you know we broke the $2 billion... our rates above 10 and the average rate our rates above 10 and
• Uh the rate has already been tax rates.

Keywords: 958, all

Summary: The meeting focused on preliminary fiscal 2026 revenue estimates and the governor’s office request for an official revision to fiscal 2026, with members reminded that any estimate adopted now would not bind the December official estimates. Staff from S&P Global walked through three forecast scenarios—control, optimistic, and pessimistic—based on recent federal tax changes, tariffs, and other policy developments, emphasizing that the outlook remains highly uncertain. Under the control scenario, the presentation projected below-trend real GDP growth of 1.8% in fiscal 2026, slowing to 1.5% by fiscal 2028, with unemployment peaking around 4.5% and the Federal Reserve cutting rates three times to a long-run range of about 2.75% to 3%. The optimistic scenario assumed lower effective tariffs, stronger growth, and better labor and housing outcomes, while the pessimistic scenario assumed a broader trade war, higher effective tariffs, faster deportations, weaker employment and consumer spending, and unemployment rising to about 6.3%. Speakers also noted that the forecast was prepared before later BLS revisions and that recent data on inventories and AI-related investment made the recent quarters look unusually volatile. Members discussed how the current fiscal 2026 outlook compared with earlier assumptions and noted that the eventual revenue revision may be smaller than the spread between the optimistic and pessimistic economic scenarios. The governor’s office and committee members also reviewed sector-specific impacts, including manufacturing, housing, light vehicle production, exports, and consumer sentiment, with particular concern about Kentucky’s auto and housing-related industries. No votes or formal actions were taken in the portion provided.

Transcript Highlights:

• In this chart, we show the federal funds rate and the 30-year fixed mortgage rates.
• The federal funds rate and other interest rates, like the 30-year fixed mortgage rate, are closely but
• Mortgage rates and other long-term rates also respond to lenders' inflation expectations.
• </c> mortgage rates and other long-term rates mortgage rates and other long-term rates also<00:14:37.480
• or a delayed lowering of rates.

Committee: Senate Finance

Keywords: 1187, senate, all

Transcript Highlights:

• the implementation of the alternative methodology-based rate system.
• First, provide an interim rate reform adjustment to the existing RMR rates table, or the regional market
• rates table, as a percentage increase to each rate beginning January 1 of the budget year.
• Second, provide an interim rate reform adjustment to the SRR, or standard reimbursement rate, beginning
• rate.

Summary: The committee took up issue number seven, Child Care Rate Reform Transition Plan, and heard a presentation from the LAO on an eight-part transition plan for the period before implementation of the alternative methodology-based child care rate system. The plan would provide interim rate increases to existing regional market rates and standard reimbursement rates beginning January 1 of the budget year, keep the higher of SRR or ARMR as the single rate, annualize cost-of-care supplements, update hold-harmless language, eliminate the private market cap, authorize one-time systems transition funding with JLBC approval, and require annual reporting on parent co-pays. Members asked about the timeline and public/legislative feedback process, and administration staff said they were working toward the July 1, 2025 deadline while continuing stakeholder engagement through the rate and quality advisory process. Public comment was overwhelmingly focused on child care and early learning funding. Providers, county offices, advocacy groups, and education organizations urged the Legislature to move quickly on the alternative rate methodology, provide interim relief through a cost-of-living adjustment, reimburse based on enrollment rather than attendance, and preserve health and retirement benefits and workforce stability. Many speakers also pressed for funding to expand the promised 200,000 child care slots, warning that waitlists remain long and providers are under financial strain. Several commenters supported maintaining or extending grants and technical assistance for transitional kindergarten, inclusive early education, and mixed-delivery early learning programs. A separate set of comments addressed the Inclusive Early Education Expansion Program, with Sacramento County education officials and others urging a statewide plan that would extend support to the 20 counties not currently receiving grants, especially rural areas. Other speakers raised concerns about facilities and staffing impacts from TK expansion, the need for consistent eligibility rules across subsidized programs, and the importance of statewide systems-level funding. The chair thanked the LAO, administration, and public commenters, said the item would remain open until after the May Revision, and adjourned the meeting.

Transcript Highlights:

• So market rate survey...
• Can you tell us what the current rate, the current market rate is?
• So we set our school readiness assistance rates at 75% of the market rate survey. Right.
• of care versus market rates?
• What is the rate of pay?

Committee: All EDUCATION- HOUSE EARLY CHILDHOOD SUBCOMMITTEE

Summary: The Early Childhood Committee met to receive an update from the Office of Early Childhood on Arkansas child care and early learning programs. Committee members discussed the state’s child care crisis, including reported economic losses from lack of access, the need to track access, affordability, workforce shortages, rural and infant/toddler care gaps, and the role of local leads in identifying needs across the state. The committee also approved the February 17 minutes. Office of Early Childhood staff explained their responsibilities under the LEARNS Act, including kindergarten readiness, provider quality, and access to affordable seats. They reviewed licensing, quality efforts, and the two main funding streams: School Readiness Assistance (SRA), a federally funded voucher program serving about 14,600 children with a wait list of more than 3,000, and Arkansas Better Chance (ABC), a state-funded program serving about 23,000 children, with approval to increase to 24,000 slots. Members asked about the difference between market rate surveys and cost analyses, and staff said the office is procuring both, with results expected by the end of the year. Several members raised concerns about funding levels, especially that ABC reimbursement has not kept pace with K-12 funding increases and that child care reimbursement remains below the true cost of care. Staff said ABC requires certified teachers and lower ratios than SRA, but pays less, and that some federal pre-K slots were moved into ABC to preserve continuity of care. They also explained that SRA eligibility changes, including a higher work requirement and ending a child care worker eligibility category, were made to reduce spending and serve families on the wait list. The committee discussed communication with providers and parents, technical assistance for centers, and possible future legislative action to stabilize providers and expand access, but no votes or formal actions were taken beyond approving the minutes and adjournment.