Transcript Highlights:

• But, you know, I've spoken with my CFO.
• I'm not the CFO, but, you know, obviously we would love any form of grant.
• I'm not the CFO, but, you know, obviously, we would love any form of grant.

Summary: The Select Committee on Alternative Protein Innovation held its first informational hearing to examine the state of alternative protein research, industry growth, and policy needs in California. The chair framed alternative proteins as meat, dairy, and eggs made from plants, fermentation, or cell cultivation, and emphasized California’s prior $5 million public investment in UC research, the state’s large concentration of alternative protein companies, and plans for future site visits and hearings around the state. The first panel focused on the climate, environmental, food security, and national security rationale for alternative proteins. Representatives from the Good Food Institute and CSIS argued that alternative proteins can reduce greenhouse gas emissions, land and water use, methane, antimicrobial resistance, and supply-chain vulnerabilities tied to conventional animal agriculture. Members asked about pharmaceutical and disease risks in livestock systems, and witnesses said intensification of animal agriculture increases antibiotic use and disease transmission risks. The chair also raised the relationship between alternative proteins and traditional farming, and witnesses described the sector as complementary, with opportunities for California farmers to supply inputs such as nuts, legumes, and commodity crop side streams. The second panel featured industry leaders from Beyond Meat, Upside Foods, and Wildtype. They described plant-based, cultivated meat, and cultivated seafood products, argued that the products can match conventional foods on taste while improving health and environmental outcomes, and said misinformation and labeling battles have hurt public perception. They also discussed scaling challenges, the need for grants, low-interest loans, manufacturing support, and possible participation in cap-and-trade or other revenue-generating programs. The chair highlighted tasting events and efforts to educate legislators and staff, and noted that schools, hospitals, and prisons are important markets for healthier food options. The final panel featured UCLA and UC Santa Cruz researchers who described university-led advances in cultivated fat, publicly available datasets, and workforce development programs supported by state funding. They said the UC system is well positioned to provide foundational research, open-access data, student training, and extension support for farmers. The hearing ended with the chair saying the committee will continue its work through additional hearings, tours, and possible budget or legislative proposals, while acknowledging that the current budget climate makes additional funding uncertain.

Transcript Highlights:

• I ask our CFO to come up to the mic...
• And so again, and I was going to ask my CFOs, how much of this is in statute?
• I'll ask my CFO to confirm, or just to make sure I'm not saying anything incorrectly.
• With my CFO, that is the intention: the funds are part of that line item.
• I'll ask my CFO to confirm this, but my understanding is we're funding at the what I'll ask my CFO to

Committee: Joint Joint Committee on Ways and Means

Transcript Highlights:

• Representative McDonald, thank you, Commissioner Brown, and then a question to CFO Risenow.
• Chair, thank you, Commissioner Brown, and then a question to CFO Risenow.
• Chair, thank you, Commissioner Brown, and then a question to CFO Risenow.
• Chair, thank you, Commissioner Brown, and then a question to CFO Risenow.
• The commissioner said that she would have CFO Ashley Risenow speak a little bit to the $11.1 million

Committee: House Children and Families Finance and Policy

Transcript Highlights:

• I'm the CFO to the Florida Sheriff First Management Fund, but I'm not here representing the good sheriffs
• And so on behalf of CFO Blaise Ingoglia, they're waiving in support. Thank you very much.

Bills: S0314 , S0530 , S0576 , S0800 , S0990 , S1078 , S1440 , S1568 , S1588 , S1614

Committee: Senate Appropriations Committee on Agriculture, Environment, and General Government

Summary: The committee heard and advanced several bills related to engineering regulation, cybersecurity, financial services, and state administration. CS/SB 800 would increase penalties for repeated unlicensed engineering practice and create an engineering student loan assistance program funded by licensure fees and fines; it was reported favorably after questions about whether it would reimburse victims of unlicensed practitioners, with the sponsor noting it would not and that affected individuals would need to pursue complaints and private legal action. CS/SB 576 created a local government cybersecurity protection program administered by Florida Digital Service, with state purchasing of cybersecurity services and priority for fiscally constrained counties; it received support from local government and industry groups and was reported favorably. CS/SB 1078 set transition requirements for gubernatorial administrations, including liaisons, briefing books, office space, IT access, and controlled access to agency records under a memorandum of understanding, and it also passed favorably. The committee also approved CS/SB 314, which creates a regulatory framework for payment stablecoin issuers in Florida, and CS/SB 530, which updates lottery operations, security, retailer rules, and bonding requirements. CS/SB 1614, after adoption of a technical substitute amendment, would limit local governments’ eligibility for certain state funding if they have excess funds, have recently been audited by the legislative audit committee, or fail to affirm expenditure of prior funds; the sponsor said it would give the Joint Legislative Auditing Committee more enforcement leverage, and the bill was reported favorably. CS/SB 990 authorizes protective cell captive insurance companies to expand insurance market capacity and potentially lower premiums, while CS/SB 1588 is a step toward implementing last session’s gold and silver legal tender law; both were reported favorably. Additional bills passed included CS/SB 1440, which adds cybersecurity-related exemptions and reporting provisions for financial institutions, loan originators, and money service businesses, and CS/SB 1568, which creates a Florida Stable Coin Pilot Program allowing DFS fees to be paid with approved stablecoins. The stablecoin bill was amended to add guardrails, including fee limits, website notice requirements, and restrictions if no approved issuers are available. The committee also received a brief budget overview highlighting major funding items such as Florida Forever, Everglades restoration, water quality, Farmers Feeding Florida, citrus recovery, school lunches, state parks, and law enforcement and staffing items, and members later recorded additional votes before the committee adjourned.

Transcript Highlights:

• and the CFO being willing to consider that and be flexible.
• It currently says, 'in a manner that the CFO prescribes.'
• Whether we can get the CFO to agree that that's acceptable or not, we're still working on that.
• create a button on everybody's website that goes directly to EDR, to their county budget and their CFO
• Anna Christian, CFO, Blaze, Inolias Office, waves in support. Members were in debate.

Summary: The committee met with a quorum and took up a long agenda of bills, many of them amended. Early action included PCS for CS for HB 639, which would expand an existing Fraternal Order of Police specialty license plate to all Floridians, tighten specialty plate rules for future applicants, require financial projections and reporting, and create several new specialty plates. After questions about Florida nexus requirements and a successful amendment adding a Florida Film Legacy plate, the bill was reported favorably 26-0. PCS for CS for HB 1169, limiting local governments’ use of excess building-code enforcement funds for construction of the code-enforcement building, also passed unanimously after testimony from the Florida Home Builders Association. The committee then approved HB 139, expanding whistleblower protections for state, local, and contract employees who file ethics complaints, with support from the Florida Commission on Ethics. PCS for HB 273, which would make special districts eligible for certain state and federal grants and direct pay options, passed 24-1 after testimony from both supporters and opponents. Members also approved CS for HB 1087, a public-records exemption for certain stablecoin issuer information, and CS for HB 1085, updating the local government cybersecurity grant program by moving it to Cyber Florida at USF, adding a sunset, and limiting consecutive awards. Several environmental and local-government transparency measures drew extended debate. CS for CS for HB 1417, a broad environmental bill, was amended to remove several provisions, retain others on the Environmental Regulation Commission, springs, solar facilities, Indian River Lagoon septic deadlines, and coastal resiliency partnerships, and then passed 24-0 amid mixed testimony from DEP, water management districts, and environmental advocates. CS for HB 1457, creating a framework for regional stormwater management systems and water quality enhancement areas, passed 24-0 after discussion of port impacts. CS for HB 1329, requiring local budgets to be posted earlier, retained longer, and made searchable, and adding a 10% budget-cutting exercise, passed 17-6 after strong opposition from local-government groups who argued it would be costly and duplicative. The committee also approved CS for HB 4091 creating a special district for stormwater and flood control in Sarasota and Manatee counties, and then took up CS for HB 995, a major overhaul of Public Employees Relations Commission and union-related procedures, including registration, dues disclosure, election rules, leave-time limits, and expedited bargaining over legislatively appropriated salary increases; that bill was still under questioning when the transcript ended.

Transcript Highlights:

• With me is PFA's CFO, Melissa Ralph.
• </c><00:58:44.720><c> So,</c> me is um PFA's CFO, Melissa Ralph.
• So, me is um PFA's CFO, Melissa Ralph.
• Representative, I definitely will be around as well as Melissa Ralph, who is the CFO for PFA.
• So, we've been here is a CFO for PFA.

Committee: House Capital Investment

Transcript Highlights:

• And there are some CFOs and some data people that are on that committee as well from the different institutions
• Craig Tegas, Senior Associate AD and CFO for the Athletic Department.
• Craig Tegas, Senior Associate AD and CFO for the Athletic Department.
• Chad Brown, CFO, Department of Corrections: Senator, this is the medical contract that was discussed

Committee: All JOINT BUDGET COMMITTEE

Transcript Highlights:

• really her approach is, and I think it's a good recommendation for any industry: if you terminate a CFO
• practices, if there's no concern about mismanagement of money, but there is a reason to terminate your CFO
• know, what I can tell you is that DSU was working with bond counsel prior to the termination of the CFO
• Was she CFO? Yeah, so she had been DSU CFO. She was very familiar with the institution.
• human resources for someone, or whether it's a full kind of takeover of their business office, with a CFO

Committee: Joint Higher Education Institutions Committee

Transcript Highlights:

• really her approach is, and I think it's a good recommendation for any industry: if you terminate a CFO
• practices, if there's no concern about mismanagement of money, but there is a reason to terminate your CFO
• know, what I can tell you is that DSU was working with bond counsel prior to the termination of the CFO
• Was she CFO? Yeah, so she had been DSU CFO. She was very familiar with the institution.
• human resources for someone, or whether it's a full kind of takeover of their business office, with a CFO

Summary: The Higher Education Institutions Committee met on the Minot State University campus for presentations on campus operations, enrollment, and new academic initiatives. President Shirley reviewed recent audits, noting mostly clean results with only minor technical findings, and highlighted MSU’s broad academic offerings, specialized accreditations, athletics, and partnerships with Minot Air Force Base and the MSU Development Foundation. Members asked about declining interest in teacher education, tuition waivers for athletes, dual credit incentives, and how MSU decides when to launch new programs and avoid duplication within the university system. Shirley also discussed several workforce-focused initiatives supported by the Legislature’s Workforce Education Innovation Funds, including the purchase of the Trinity Health Center West building for a downtown health sciences hub, a new daycare/preschool partnership near campus, the Aspire program to recruit rural students into teaching, and a paraprofessional-to-special-education degree pathway. Enrollment data showed overall headcount was flat at just under 2,750, but full-time equivalent enrollment rose slightly and new student numbers increased, including the largest freshman class in 15 years. The committee also discussed Minot State’s in-state tuition rate for all students, its dual credit “Emerging Scholars” scholarship, and concerns about the share of high school graduates who do not immediately pursue postsecondary education. Faculty then presented two new programs funded in part by WEAF: an Innovation Engineering degree and a master’s program in counseling with an integrated addiction studies focus. The engineering program was described as industry-driven, designed with broad early coursework, hands-on learning, and local employer input to prepare students for western North Dakota workforce needs; officials said it had already drawn more applicants than expected and would use renovated library space and donated or grant-funded equipment. The counseling program will be mostly face-to-face with hybrid options, aims to address shortages in mental health and substance use providers, and is structured to help students meet licensure requirements. Committee members asked about startup costs, licensure supervision hours, and whether the programs would be on campus rather than online, and presenters said both programs had recently received required approvals and were moving forward.

Transcript Highlights:

• I'm the CFO at the corporation. >> Okay. Thank you very much. Please raise your right hands.
• </c><00:19:25.679><c> I'm</c><00:19:25.840><c> the</c><00:19:25.919><c> CFO</c><00:19:26.320><c> at</
• I'm the CFO at the &gt;&gt; And I'm Katie Smith.
• I'm the CFO at the corporation. corporation. corporation.
• And as a a CFO with um nearly 30 Okay.

Summary: The Government Contracts Committee met for its first 2026 meeting, approved the December 9 minutes, and reviewed 337 contracts totaling about $71.8 million. After a motion to consider the routine contract lists without objection passed, the committee pulled several items for discussion, including contracts from the Council on Postsecondary Education, the Department of Highways, the Kentucky Horse Racing and Gaming Commission, and Kentucky State University. Most items were ultimately approved by roll call votes. For the Council on Postsecondary Education item, members discussed why the contract was not handled through the usual Finance Cabinet bidding process. Staff explained it stemmed from House Bill 200 and the healthcare workforce incentive fund, which uses a separate competitive award process and steering committee under different statutory standards. The committee accepted that explanation and approved the contract. Department of Highways staff then explained the difference between scour assessments, which evaluate erosion and foundation risk around bridge piers, and load ratings, which assess the bridge structure itself. Members also questioned a larger engineering contract increase; staff said it reflected progression from preliminary engineering to final design on a phased project and estimated the funding split at roughly 80% federal and 20% state. Those highway contracts were approved. The Kentucky Horse Racing and Gaming Commission presented a legal services contract. Officials said the new corporation had identified legal needs, issued an RFP, and awarded four firms to create a pool of counsel to avoid conflicts as the agency now licenses racing, sports betting, and charitable gaming. They also said an emergency contract was needed after a temporary restraining order was issued in litigation involving charitable gaming machines and alleged losses to charities. The committee asked about the litigation and the affected organizations, and the contract was approved. Kentucky State University then defended a marketing/enrollment contract despite financial concerns, saying the work was intended to raise awareness of the university, improve enrollment, and support financial stability. University officials also said they were tightening student payment enforcement and collection practices, including payment plans and holding students accountable for balances. That contract was also approved.

Transcript Highlights:

• I'm the CFO to the Florida Sheriff First Management Fund, but I'm not here representing the good sheriffs
• And so on behalf of CFO Blazingolia, they're waiving in support. Thank you very much.

Summary: The Appropriations Committee on Agriculture, Environment, and General Government heard and reported favorably several bills. CS/SB 800 would increase penalties for repeated unlicensed engineering practice and create an engineering student loan assistance program funded by licensure fees and fines; Senator Sharif asked about restitution for victims, and the sponsor said the bill does not create a reimbursement mechanism. CS/SB 576 would create a local government cybersecurity protection program administered by Florida Digital Service, with state purchasing support, grant access, and data-sharing requirements; local government and cybersecurity groups waived in support. CS/SB 1078 would establish transition procedures between gubernatorial administrations, including liaisons, briefing books, office space, IT access, and access to agency records under a signed confidentiality agreement. The committee also reported favorably CS/SB 314 on payment stablecoin issuers, CS/SB 530 updating lottery operations and security rules, CS/SB 1614 giving JAC/LAC-related audit findings more enforcement effect for local governments seeking state funds, SB 990 authorizing protective cell captive insurance companies, SB 1588 beginning implementation of the prior gold-and-silver legal tender law, CS/SB 1440 adding cybersecurity-related exemptions and reporting provisions for financial institutions, and CS/SB 1568 creating a stablecoin pilot program for DFS fee payments. Several bills had support testimony from state agencies and industry groups, and some included technical or guardrail amendments that were adopted without objection. The committee also received a budget overview highlighting major funding items, including more than $350 million for Florida Forever, $738 million for Everglades restoration, more than $500 million for water quality projects outside the Everglades, $60 million for Farmers Feeding Florida, and more than $250 million for citrus recovery. Members asked questions about school lunch funding, state park improvements, land acquisition, water quality funding, gaming enforcement offices, and staffing for PERC. After the bills and budget discussion, members recorded a few affirmative votes on selected tabs, and the committee adjourned.

Transcript Highlights:

• I'm the CFO for Las Vegas's Big Dog Brewing Company.
• I'm the CFO for Las Vegas's Big Dog Brewing Company, one of Nevada's original breweries of the modern

Committee: Senate Commerce and Labor

Transcript Highlights:

• I am the interim CFO at NWAC.” “Good afternoon.
• I am interim CFO, but my formal position is executive director of accounting/controller.”

Committee: All LEGISLATIVE JOINT AUDITING-EDUCATIONAL INSTITUTIONS

Summary: The meeting opened with prayer and approval of the January 8 minutes, then moved to review of education audit reports. The first report concerned Northwest Arkansas Community College, which had three findings, including repeat internal control deficiencies that caused financial statement misstatements and a tuition revenue loss tied to a new student information system. College officials said the issues were largely misclassification and process problems, not missing money, and described corrective steps such as monthly closing checklists, approval controls for journal entries, cross-training, and efforts to address staffing turnover and fill finance vacancies. Members asked about the tuition issue, whether students were notified or billed, and whether the software problem affected other institutions; audit staff said they were not aware of the same scenario elsewhere. The committee then filed the report as reviewed. The next report was Cedarville School District, which had one finding involving $794 in improper credit card charges by a resigned elementary teacher. The district was reimbursed, a police report was filed, and the matter was referred to the Professional Licensure Standards Board; members asked whether any further action or license-related consequences were known, but staff said they were not aware of additional action. The report was filed as reviewed. The final finding was for West Memphis School District, where auditors reported repeat capital asset issues, including failure to capitalize about $851,000 in construction costs for a baseball-softball complex and problems with inventory and asset inspection. The superintendent said the district had recently begun using Legislative Audit after prior private audits, and described new controls such as multi-level purchase approvals, separation of duties, tagging of equipment, and a cleanup of old inventory records. Members also discussed the relationship between private audits and Legislative Audit reviews, with staff explaining that private audit reports for public school districts still come before the committee and that the executive committee determines when Legislative Audit performs an audit. The committee filed the West Memphis report as reviewed and noted that 28 school districts had no findings before adjourning.

Transcript Highlights:

• I am the interim CFO at NWAC. Thank you. Good afternoon.
• I am interim CFO, but my formal position is the executive director of accounting/controller.

Committee: All LEGISLATIVE JOINT AUDITING-EDUCATIONAL INSTITUTIONS

Transcript Highlights:

• We've got a mechanism that is being made more transparent by other bills, and the Governor, the CFO,
• We've got a mechanism that is being made more transparent by other bills, and the Governor, the CFO,

Committee: Senate Agriculture

Summary: The Senate Committee on Agriculture received a presentation from Florida Forest Service Director Rick Dolan on the agency’s wildfire response, forest management, and emergency support roles. He described the service’s four regions and 14 districts, its year-round wildfire response, use of bulldozers, helicopters, and drones, and the current high fire danger due to drought conditions. Dolan also highlighted prescribed burning, fuels mitigation, state forest management, the pine seedling nursery, and the agency’s role in hurricane response and incident management. Members asked about equipment loans and whether more prescribed burning could reduce wildfire impacts; Dolan said Florida already leads the nation in prescribed fire and emphasized public education and fuels reduction. The committee then considered and unanimously reported favorably Senate Bill 386, which creates a farm-equipment consumer protection process similar to a lemon law, allowing purchasers to seek repair or replacement of defective major farm equipment at no cost. The committee also took up Senate Bill 290, the Agriculture and Consumer Services omnibus bill. The bill would modernize fair association rules, preempt local bans on gas- and diesel-powered farm and landscape equipment, allow surplus of certain state-owned lands for bona fide agricultural use while excluding parks, forests, and wildlife lands, create a veterinary loan repayment program, make Farmers Feeding Florida permanent, expand Forest Service training opportunities, criminalize signal-jamming devices, increase penalties for CDL and English-proficiency exam cheating, restrict certain door-to-door solicitation, protect food safety inspectors, clarify biosolids rules, and add criminal and vendor-list penalties for contractors who fail to pay subcontractors. The committee adopted three amendments to align dates and technical language and to authorize native seed research and marketing through the Florida Wildlife Foundation. Testimony on SB 290 included support from several industry groups, concerns from the Home Builders Association about the new contractor-payment criminal penalties, and opposition from a citizen worried about the new surplus-land process for conservation lands. Despite concerns, CS/SB 290 was reported favorably. Finally, the committee unanimously recommended confirmation of the appointees listed on tabs 4 and 5, and then adjourned.

Transcript Highlights:

• I'm Stephen Geesey, CFO with Division of Workforce Services. Okay, thank you. Thank you.
• Tammy Williams, CFO, Department of Commerce. Good morning, Senator Irvin. Thank you.
• Chad Brown, CFO, Department of Corrections. Thank you, Mr. Chair. Thank you, gentlemen.

Committee: All JBC-PEER REVIEW

Summary: The PEER Review Subcommittee met to consider a large agenda of budget, appropriation, transfer, and contract items. Members approved temporary appropriation requests for several agencies, including the Auditor of State, Department of Education, and Labor and Licensing; ARPA return requests from Workforce Services; Infrastructure Investment and Jobs Act requests for State Police and Agriculture; restricted reserve transfers for teacher scholarships, school facilities, and economic stimulus; a Commerce reallocation of positions and spending authority; cash fund, budget classification, overtime, and pay plan requests; and 17 methods of finance items for universities and other agencies. Most items were approved without objection after brief explanations from staff and agencies. Several items drew questions and were held or discussed further. A Department of Human Services discretionary grant package for the RSVP program was held over after Senator Irvin raised concerns about whether the grants were an effective use of state general revenue and asked for more information on administration costs and program operations. In the contracts section, Representative Richardson questioned a DHS sole-source contract with EMS Link for document management software and a DHS contract with Presidio; the EMS Link item was held for additional answers, while the Presidio item was clarified as not sole-source and was allowed to proceed. Members also asked for more information on a Department of Education mental health referral contract with Care Solace, which officials said is a statewide concierge/referral service connecting students to Arkansas providers and telehealth options. The committee also reviewed monthly reports, including the Medicaid Trust Fund. DHS and DFA officials said the fund was currently sufficient to finish the fiscal year, though it was being drawn down and would likely require a $100 million transfer from restricted reserves in FY27, with another $100 million set aside in the governor’s budget as a backstop. Members discussed the need to define a minimum reserve level and to better account for ongoing Medicaid costs in the budget. The meeting ended with no further business and adjournment.

Transcript Highlights:

• What are CFO and deputy CFO funds, or a certain specific fund?
• In addition to LOFT, the state CFO, and a consultant hired by the governor, we helped identify the agency's

Transcript Highlights:

• Keith Johnson, our CFO, is here, has done a remarkable job at keeping us going in the right direction
• Keith Johnson, our CFO is here, has done a remarkable job at keeping us going in the right direction.
• talked about they're looking at trying to get more into CTE and stuff like that, visiting with their CFO
• talked about they're looking at trying to get more into CTE and stuff like that, visiting with their CFO

Summary: The committee reconvened at North Dakota State College of Science for a presentation from President Dr. Flanagan and college leaders about NDSCS’s mission, enrollment growth, workforce training, and facilities needs. Flanagan highlighted student success in national competitions, strong placement and retention, growing enrollment, and new or expanding programs in aviation maintenance, fire science, dental hygiene, community health worker training, surgical technology, HVAC/plumbing, and precision agriculture. He also emphasized the college’s partnerships with industry, including John Deere, Fargo Jet Center, Sanford, and Comdel Innovation, and said NDSCS plans to seek approval next session for a revenue bond to build a new dorm and to remodel the library into academic and allied health space. Allied health dean Deb Smith testified that her division is at capacity and needs a simulation center, more lab and classroom space, and expanded dental and OTA facilities to meet demand and accreditation needs. Committee members questioned Flanagan and staff about workforce shortages, especially faculty pay, and whether the college can staff additional growth. Flanagan said the biggest challenge is recruiting instructors because industry pays more, but noted some health care and adjunct hiring is possible because of schedule flexibility and benefits. He also discussed shifting resources away from lower-demand programs like power sports toward higher-demand areas such as automotive and aviation maintenance. Members also asked about the college’s identity as a technical institution, with Flanagan arguing North Dakota would benefit from a more defined tech-school system. The committee then received a University System presentation from Jamie Wilkie on the cost of delivering dual credit. Wilkie explained the methodology used to allocate direct and overhead costs across subsidized and unsubsidized dual credit, noting that dual credit and early entry account for about 5.9% of total credit hours and 2.7% of formula funding. The analysis showed subsidized dual credit tuition revenue of about $5.5 million and unsubsidized revenue of about $2.9 million, with some institutions showing margins and others losses depending on the model. Members discussed whether K-12 funding should also be reflected, how payments to high schools and teachers are structured, and whether tuition-free dual credit would require replacing both tuition revenue and the current dual credit scholarship. No votes were taken; the committee simply received the presentations and discussed the findings.

Transcript Highlights:

• And there are some CFOs and some data people that are on that committee as well from the different institutions
• Craig Tegas, Senior Associate AD and CFO for the Athletic Department.
• Craig Tegas, Senior Associate AD and CFO for the Athletic Department.
• Chad Brown, CFO, Department of Corrections: Senator, this is the medical contract that was discussed

Committee: All JOINT BUDGET COMMITTEE

Summary: The committee first considered revisions to the JBC rules, which staff said were all prompted by acts passed in the 2025 legislative session. The rules were adopted without objection. Members then received a balanced budget presentation from DFA Secretary Jim Hudson on the governor’s FY27 proposal, which he said was built around three priorities: limiting state government growth, continuing investments in education, and advancing income tax cuts. He highlighted major additions for education funding, EFA growth, pay plan costs, higher education productivity funding, drug task forces, corrections medical costs, the governor’s 1033 initiative, SNAP error-rate reduction, and Medicaid sustainability, while also explaining a new A/B funding category structure intended to prioritize recurring costs and preserve room for tax cuts. Members questioned Hudson about the cost of income tax reductions, the constitutional balanced-budget requirement, education funding, the Educational Adequacy Fund, Medicaid trust fund balances, and the impact of federal changes on Medicaid and SNAP. Hudson said each tenth of a percent income tax cut would cost about $58 million, the budget remained balanced, public education would still receive historic increases, and the Medicaid trust fund would be monitored closely with additional set-asides proposed. He also said the FY27 SNAP administrative cost increase would be about $18 million. The committee then heard from the Division of Higher Education, which reported institutions were 2.61% more productive overall and that the budget recommendation followed the statutory productivity formula. Questions focused on why some institutions were receiving decreases or large increases, how the formula works, and how the new return-on-investment metric and committee composition would affect future funding. The committee approved several higher education-related actions, including personnel changes for nine institutions and special language for North Arkansas College’s move into the University of Arkansas system. Staff then walked members through the higher education appropriation summary, explaining large percentage increases at several institutions were tied to federal funds or corrected carry-forward issues, including the U of A School of Mathematical, Sciences and the Arts, South Arkansas College, SAU Tech, ASU Mountain Home, and ASU Newport. Members also discussed UAPB’s 1890 extension program and the University of Arkansas Division of Agriculture’s land-grant matching funds; officials said UAPB’s recommendation was being aligned with actual spending and that the Division of Agriculture’s Smith-Lever and Hatch matches were included within its overall appropriation. The committee ultimately adopted the Higher Education Coordinating Board’s recommendations for all institutions and then moved on to the Department of Corrections section, with the chair outlining how the committee would proceed through those appropriations by section.

Transcript Highlights:

• Danielle Durkey from DHS's CFO. We're glad to have her expertise with us. C.O.
• Danielle Durkey from DHS's CFO. We're glad to have her expertise with us. Okay, thank you for that.
• Kevin Stadeem, CFO. It's approximately $1.4 million to avoid a maintenance of effort penalty.
• And to my left here, I have CFO Josh Richards, and I have Melissa Miller, who is the state Medicaid director

Summary: The subcommittee heard budget presentations and questions from several health and human services agencies, with members repeatedly emphasizing that agency numbers had been posted since October and that questioning should stay focused and brief. The Office of Juvenile Affairs said its $5.45 million request would support 162 employees receiving a pay adjustment, and members asked about juvenile care conditions and staffing. The Department of Human Services discussed major changes to child care subsidy funding, including a reduced subsidy request, a $11.5 million child care teacher recruitment/retention request, and planned eligibility and reimbursement changes; it also reviewed SNAP administrative cost shifts under federal law, the state’s SNAP error rate, and the risk of large future state costs if the error rate is not reduced. DHS also addressed TANF reserves, the DDS waiver wait list, the Greer Center buildout, the Advantage waiver supplemental, and meal service options for waiver members. OCCY described a largely personnel-driven budget, requests for more oversight staff, and workload pressures in juvenile competency evaluations. The Office of Disability Concerns reported a flat budget and said it relies mainly on mediation and informal resolution rather than enforcement. OSU Medical Authority said its Tulsa expansion, VA skybridge, and c-section suites remain on schedule, that psychiatric residency funding is being phased in over several years, and that it is working to reduce contract labor and evaluate service lines. J.D. McCarty Center reported its new ABA outpatient clinic is on time and on budget and is nearing full capacity. OMMA said its lab is following required standards, its FTE count is below budgeted levels because hiring depends on lab accreditation and other unknowns, and dispensary numbers continue to decline as the market matures. Oklahoma Rehabilitation Services said it needs about $1.4 million to avoid a maintenance-of-effort penalty and discussed aging campus capital needs and staffing vacancies. The Oklahoma Health Care Authority then outlined a very large budget requirement driven by utilization growth and the shift to value-based care, saying FY26 is currently stable but FY27 would likely require additional appropriations if the request is not fully funded.