Transcript Highlights:

• It didn't allow them to do replacements. It was just service work only.
• You have to have parts to replace.
• HVAC Association has been great with us, Tom Hunt and his group.
• HVAC, we did this, and then we're going to look at it.
• For HVAC or in general? In general.

Summary: The Administrative Rules Subcommittee reviewed several agency rules and most were approved without objection. The Department of Agriculture repealed rules tied to the now-repealed Arkansas Catfish Processors Fair Practice Act. The Department of Human Services updated Medicaid policy to clarify child support enforcement treatment for pregnant women, remove the word “forcible” from rape/incest good-cause language, and eliminate a 90-day waiting period for ARKids B after loss of group coverage; members highlighted the significance of the language change and asked for a quick-reference eligibility chart. DHS Medical Services also received approval for a CMS cell and gene therapy model rule for sickle cell drugs and a technical Medicaid-assisted medication-assisted treatment update that was described as cost-neutral and non-substantive. The Department of Labor and Licensing presented several rules implementing recent acts and internal cleanup changes. These included procedures for local construction plan disputes under Act 591, Contractors Licensing Board amendments raising the restricted commercial license threshold from $750,000 to $1.5 million and allowing deferral of owner-complaint investigations during civil litigation, and a similar residential contractors change. The HVACR Licensing Board presented broader revisions under Act 746, including grammar and cleanup changes, elimination of the Class C license with transfer of existing holders to Class B, expansion of allowable work limits, a change to continuing education from four hours annually to eight hours per three-year code cycle, and clarification on training, child labor, and licensing issues. Several members questioned the practical impact of the HVAC changes, but the rule was approved. The committee also granted the Department of Inspector General’s request for exclusion from rulemaking reporting under Act 473, concluding that no rule was necessary because the act already defines the key terms and review process for foreign-adversary cultural exchange agreements. In addition, the Arkansas State Library’s report recommending continuation of its existing rules was accepted. During the status updates on outstanding 2023-session rulemaking, Education explained delays were due to overlapping 2025 amendments and the large volume of rules, while members expressed concern about the length of time since enactment; staff noted only a small number of 2023 rules remain outstanding. The meeting ended after written 2025-session updates were received with no further questions.

Transcript Highlights:

• roof or a failing HVAC roof or a failing HVAC system.<00:04:31.759> Keeping<00:04:32.080>
• <00:08:39.200> of focuses on critical replacements of focuses on critical replacements of
• cycle replacements. cycle replacements.
• Without this replacement, project.
• Um KSP post 12 was replacement.

Keywords: 958, all

Summary: The committee heard capital plan presentations from the Justice and Public Safety Cabinet, the Personnel Cabinet, and the School Facilities Construction Commission. The Justice Cabinet described its large portfolio of more than 900 facilities across the state and said decades of underfunded maintenance have created a backlog of repairs. Requested projects included a high-acuity mental health treatment facility for juvenile justice youth, two female detention centers to support the regional detention model, major corrections repairs and replacements, a new kitchen at Eastern Kentucky Correctional Complex, a new dormitory at the Kentucky Correctional Institute for Women, completion of a new Eastern Kentucky prison, DOCJT training facility upgrades in Richmond and Madisonville, State Police radio system replacement and post construction, a combined Frankfort headquarters/Post 12 facility, and expanded crime lab and storage capacity. When asked about the high cost of the EKCC kitchen project, staff said construction inside an operating facility raises costs and that building a new adjacent kitchen would be more economical in the long run. The panel also asked about Fish and Wildlife officers training at DOCJT; staff said they do and that the training is funded through the CLEFT fund. The Justice Cabinet also said the recently enacted Senate Bill 4’s AI inventory and registry requirements would be part of its enterprise application and AI inventory system work. The Personnel Cabinet requested funding to replace CHRIS, the state’s human resources and payroll system, which supports payroll and benefits for about 48,000 employees and the Kentucky Employee Health Plan for roughly 192,000 members. Staff said the current SAP-based system went live in 2011, is approaching end of support in 2030, and has not received functionality enhancements since 2016. They said the replacement is estimated at $151 million, with most of the cost tied to professional services and software, and that the project would begin in July 2026, go live by July 2030, and require a stabilization period through 2032. In response to questions about outsourcing payroll or reusing existing systems, staff said the complexity of state HR, payroll, tax updates, and integrations with other agencies makes outsourcing or partial reuse impractical. The School Facilities Construction Commission introduced its role in helping all 171 school districts address unmet facility needs, focusing on core school facilities such as roofs and elementary buildings rather than athletic projects. No votes or formal actions were taken during the excerpted discussion; the meeting consisted of presentations, explanations of requested projects, and member questions.

Transcript Highlights:

• Complications with designing a complete HVAC replacement project in an operating nursing facility of
• a complete<00:14:53.160> HVAC<00:14:53.880> replacement<00:14:54.440> project<00
• :14:55.400> in<00:14:55.520> an complete HVAC replacement project in an complete HVAC replacement
• And then you became aware of the issue that there was going to have to be a HVAC replacement in 2020.
• system needed to be replaced? system needed to be replaced?

Keywords: 958, all

Summary: The meeting opened with the pledge and prayer, a roll call established quorum, and members announced a Veterans Caucus meeting to follow the session. The committee also recognized distinguished veteran Joe Mash Masterson of Bardstown, who was praised for his Army service, long-time advocacy for veterans, and leadership in the American Legion and local veteran organizations. Masterson thanked his family, the American Legion Post 121, and the VA staff, and several members offered remarks honoring his service and the committee’s practice of recognizing veterans. The committee then briefly addressed a referred administrative regulation, 017 KAR 001 030, which leadership described as technical updates to existing policy; no vote was taken. After that, members heard testimony from KDVA and Finance and Administration officials on the ongoing HVAC replacement project at the Radcliffe Veteran Center. Officials said the system had been problematic for years, that design work began early to accelerate the project, and that the work was complicated by the need to replace the system in an operating nursing facility. They explained that the project was bid in March, awarded to Less Mechanical, and that protective measures, shop drawings, and equipment orders were underway. Committee members pressed officials on why the problem had taken so long to resolve, why the original system had been installed, whether the issue had been communicated regularly, and whether the state should be paying for a replacement in a relatively new facility. Officials said the original system’s components and warranties had failed, that they had tried to replace parts before moving to a full replacement, and that the system’s manufacturer and quality differed from a similar facility in Glasgow that had not had the same issues. They said the current phase one contract was about $6 million, with the remaining funds held for phase two to restore full occupancy; phase two design was nearly complete and could be bid later if funding is approved. Officials estimated phase one completion around January 2026 and full completion around March 2027, depending on funding and scheduling.

Transcript Highlights:

• We're also going to go ahead and replace the skylight.
• We recently replaced our main mobile exhibit unit.
• We replaced it, and we have a brand new one.
• For instance, HVAC units.
• To bring a contractor out once and replace all your HVAC units is much more efficient than doing them

Transcript Highlights:

• It's to hire a project manager for an HVAC repair and maintenance project.
• we want to replace was from the 1960s and that there just wasn't any value there.
• So we didn't have a replacement policy on all this or anything?
• I don't know if you had replacement cost or ACV or what you had.
• And so we're always going to pay for the replacement.

Keywords: 1204, all

Transcript Highlights:

• Um, the Plumbing, Heating and Cooling Contractors Association represents plumbers and HVAC contractors
• Most importantly, we know that we have a shortage of plumbing and HVAC contractors.
• It lists plumbing and pipe fitting and electrical but not HVAC. So y'all gonna be hot.
• This will allow the commissioner to replace that advanced math with, let's say if you're going to be
• He can replace that.

Bills: HB20, HB120

Keywords: fraudulent solicitation, disaster relief, nonprofit organizations, criminal penalties, consumer protection, fraud prevention, charitable donations, higher education, LGBTQ studies, DEI studies, program prohibition, educational policy, HB120, Texas, Texas Education Code, public universities, public colleges, queer studies, gay studies, lesbian studies

Transcript Highlights:

• This is increasing an existing MOF for replacement of fan coils using University reserves.
• For replacement of fan coils using University reserves. Number two is with Arkansas Tech.
• modern doors, as well as replacing broken windows.
• modern doors, as well as replacing broken windows.
• It resulted in major replacement work, including wall and flooring replacement. It totaled $55,000.

Summary: The committee met to review a supplemental agenda, procurement rule revisions, methods of finance, discretionary grants, contracts, and a member disclosure. The Office of State Procurement presented rule changes tied to 2025 legislative changes, including Act 782, with updates to sole-source definitions, unrealistic bids, protest requirements, debarment procedures, and recodification references; the committee voted to accept the supplemental agenda and approve the rules. Members also approved eight methods of finance covering university repairs, equipment replacement, property purchase, and capital projects, along with a large slate of discretionary grants for courts, health, DHS, historic preservation, and tobacco prevention programs. The committee then reviewed RFQs and six ratifications. The ratifications included a Workforce Connections payment to ACT WorkKeys, Department of Health costs from an ice-storm-related water leak, a large Department of Public Safety ratification for Motorola’s Arkansas Wireless Information Network upgrade, Veterans Affairs HVAC and medical-service payments, and a UA Little Rock painting contract. The Department of Public Safety ratification drew extended questioning about why the expired Motorola contract had not been renewed sooner and why the issue took months to reach the committee; agency officials said the project was bond-funded, had not been tracked in ASIS, and involved ongoing negotiations and system updates. Despite concerns, the committee approved the ratifications. Members also reviewed a long list of construction, intergovernmental, out-of-state, and in-state contracts, including numerous university, DHS, health, corrections, and state agency agreements. Several contracts were discussed in more detail, including an SAU custodial contract question about sales tax and transparency reporting, and Department of Corrections aerial application contracts for Tucker and Cummins farms, which officials said served separate facilities in different parts of the state. The committee approved the contract lists, reviewed reports, and accepted a disclosure from Representative Andrew Collins regarding his investment interest in a company leasing property to Arkansas Rehabilitation Services before adjourning.

Transcript Highlights:

• It's also providing improvement safety and fire and HVAC system replacements included, as you can see
• It's also providing improvement safety and fire and HVAC system replacements included, as you can see
• We will be able to have HVAC in our Port Orchard veteran home, so that's an outstanding effort.
• I was just there over the weekend, too, talking about the HVAC system.
• I was just there over the weekend, too, talking about the HVAC system.

Summary: The Joint Committee on Veterans and Military Affairs met to hear updates from Joint Base Lewis-McChord, the Washington Military Department, the Washington Department of Veterans Affairs, and the Department of Commerce on federal and state impacts affecting veterans, military families, and military installations. JBLM’s garrison commander said the base remains focused on housing, child care, and spouse employment, but is facing workforce reductions tied to federal personnel actions, especially in air traffic control, 911 dispatch, and firefighting. He also said JBLM is preparing for increased mutual-aid needs during fire season, and that the Army Transformation Initiative could change unit composition at JBLM over time without a major overall population shift. He confirmed that the Lewis Army Museum is on a closure list, but said the building will remain in use for training and that the base is exploring partnerships to keep museum functions operating, possibly with volunteers or local partners. The Washington Military Department reported about 400 Guard members deployed on federal missions and described ongoing state missions in cybersecurity and firefighting. The department said the Army National Guard’s 81st Stryker Brigade will transition to a mobile combat team, with associated changes in equipment, manning, and end strength. It also warned that continuing resolutions are delaying funding, limiting new military construction starts, and increasing costs. The Washington Department of Veterans Affairs outlined a $3.2 million reduction from the governor’s budget and related cuts affecting internships, vacant positions, outreach travel, claims support contracts, counseling and wellness, veterans’ innovation assistance, and the military transition and readiness council staff position. WDVA said it is ending or scaling back several programs, including in-house nursing assistant training, the veteran farm at Ordean, Vet Corps due to AmeriCorps funding changes, and the tobacco cessation program, while noting that the legislature funded about $23.7 million in capital projects for veteran homes, cemeteries, and transitional housing. The Department of Commerce presented on the Defense Community Compatibility Account, which funds projects that reduce conflicts between military installations and nearby communities. The program currently has 10 projects across five legislative districts, including school and child care improvements, water wells, land acquisition, and a joint firefighting training center in Everett. The presenter said the main challenge is that DCCA projects often need non-state funding secured before they can compete, which can make it hard to leverage federal Defense Community Infrastructure Program dollars; he recommended more flexible state timing to help projects qualify for federal funding. In closing discussion, members raised possible future agenda items including child care near bases, veteran homelessness, suicide prevention, Navy Day, military family housing, and a possible Department of Licensing issue involving guard and reserve designations on driver’s licenses. No formal votes were taken, and the meeting adjourned after members were invited to suggest topics for the October and December committee meetings.

Transcript Highlights:

• Job order contracts are typically used for security projects, HVAC leaks, a roofing leak.
• Job order contracts are typically used for security projects, HVAC leaks, a roofing leak.
• Is that still that replacing the whole system... I believe there is that.
• Is that still that replacing the whole system on a timely basis?
• But they're doing full system replacements between $6 million.

Bills: HB2040, HB2142, HB2255, HB2379, HB2482, HB2575, HB2600, HB2764, HB4033, HCR2015

Keywords: public education, adoption, sex education, parental rights, student health information, school safety, resource officers, mental health, training, infrastructure improvements, Arizona Teachers Academy, teacher preparation, education funding, public schools, scholarships, teacher certification, community colleges, school district, governing board, training requirements

Summary: The committee on Education heard a series of bills and took action on each. HCR 2015, a resolution supporting at least 60 minutes of daily physical activity for K-12 students and posting dietary guidelines in schools, drew testimony from advocates for recess and student wellness; it was approved 6-0. HB 2040, which would require schools to provide adoption information when contraception or STI topics are discussed and add adoption-related content to sex education, drew opposition from Reproductive Freedom for All and the Arizona Education Association, but passed 4-2. HB 2255, extending Arizona Teachers Academy eligibility for community college students from two to four years, passed unanimously 6-0. HB 2764, creating a voluntary state seal of computer science proficiency for high school graduates, also passed 6-0. The committee then considered HB 2600, requiring written parental permission for students in grades 6-8 to join school clubs or organizations. The ACLU of Arizona opposed the bill, arguing it would suppress participation in clubs involving sensitive identities or topics; the bill passed 4-2. HB 2379, which requires school district governing board members to complete recurring training on school finance and related duties, was amended to narrow the re-election consequences and then passed 4-2. HB 2142, establishing a school safety center and council within the Arizona Department of Education to provide training, technical assistance, and risk assessments, received mixed testimony over its funding source and council makeup but passed 4-2. Later, HB 4033, which would require more detailed bond election pamphlets and separate ballot propositions for certain school bond projects such as stadiums, administrative buildings, and teacher housing, drew opposition from the Arizona Education Association over added barriers to school funding, but passed 4-2. HB 2482, capping job order contracting for building renewal grant projects at $1 million and requiring verification against artificial project splitting, drew concerns from builders and school board groups about slowing repairs and limiting procurement flexibility; it passed 4-2. Finally, HB 2575, the Anti-Semitism and Education Act, which would bar public schools and higher education institutions from teaching or promoting antisemitism and create reporting and discipline procedures, drew strong support from Jewish community representatives describing school and campus incidents, and opposition from the ACLU and AEA over free-speech and liability concerns; the transcript cuts off before the committee vote on this bill.

Transcript Highlights:

• This is increasing an existing MOF for replacement of fan coils using university reserves.
• modern doors, as well as replacing broken windows.
• It resulted in major replacement work, including walls and flooring replacement.
• Replacement work, including walls and flooring replacement, totaled $55,000.
• This is one of the ratifications listed earlier and is for $210,000 for HVAC repairs.

Keywords: 1204, all

Transcript Highlights:

• How often do you have to replace vehicles or dump trucks or whatever they may be that you are replacing
• Do you have to replace vehicles or dump trucks or whatever they may be that you are replacing?
• Section 2: replacement of portable radios and associated equipment.
• We've replaced ours every time the replacement cycle happens, and they've been extremely beneficial to
• We've replaced ours every time the replacement cycle happens, and they've been extremely beneficial to

Bills: AB6, AB102, AB131, AB212, AB213, AB220, AB259, AB282, AB376, AB396, AB479, AB503, AB570, AB572, AB574, AB576, AB593, SB185, SB207, SB507, AB6

Keywords: fetal alcohol spectrum disorder, FASD, prenatal alcohol exposure, children's health, developmental disability, early intervention, treatment assistance, Aging and Disability Services Division, Department of Health and Human Services, Autism Treatment Assistance Program, public health, parent education, evidence-based treatment, Nevada NRS 427A, disability services, behavioral health, emergency medical services, ambulance, licensing, health district

Transcript Highlights:

• It's to hire a project manager for an HVAC repair and maintenance project.
• And maintain the HVAC system. It's supported by license and application fees.
• we want to replace was from the 1960s and that there just wasn’t any value there.
• “So we didn’t have like a replacement policy on all this or anything?”
• I don’t know if you had replacement costs or ACV or what you had.

Summary: The committee considered a series of appropriation, transfer, and review items, approving most requests in Sections B through J. These included temporary appropriations for state technology upgrades, personnel management, court reporters and interpreters, crime victim claims, juvenile sex offender assessments, radiation lab testing, higher education workforce grants, an ARPA grant for the UAFS LPN program, an IIJA grant for geological/critical minerals work, a restricted reserve transfer for 102 State Police vehicles, a transfer to the Arkansas Heroes Program, several cash fund requests for the Real Estate Commission HVAC and AV needs, and overtime appropriations for Emergency Management and Military. One budget classification transfer request from the Commissioner of State Lands for $250,000 to cover operating expenses tied to a new building was discussed at length but failed on the vote after questions about the lease and operating costs. A major portion of the meeting focused on a $25.7 million pay plan appropriation request for 15 agencies. Members questioned why the Department of Human Services had not requested additional pay-plan dollars for human development centers, where DHS acknowledged staffing shortages, high turnover, and heavy overtime but said the issue was not lack of pay-plan funding. DHS was asked to provide a written plan to address staffing problems. The Department of Corrections testified that the pay plan had improved retention and hiring, and committee members asked for follow-up data on vacancies and staffing outcomes. Members also clarified that the pay-plan request was appropriation only, not new funding, and approved it. The committee then reviewed fund reports, including the restricted reserve, Budget Stabilization Trust Fund, Tobacco Settlement, State Central Services, Education Adequacy, Medicaid Trust Fund, IIJA, and Revenue Services transfer reports. DHS and DFA were questioned closely about the Medicaid Trust Fund, with members noting a $90 million February draw and asking about projected year-end balances; DFA and DHS said February was a high-expense, low-revenue month and projected the fund would remain solvent through the fiscal year, ending between $150 million and $200 million, while a second $100 million set-aside is planned for FY27. The committee also discussed a state hospital damage report, where DHS explained that insurance proceeds would not fully cover the repair costs because of depreciation and the age of the buildings; members expressed concern that the state would recover far less than originally expected, and DHS said any additional insurance recovery would be limited and returned to restricted reserve.

Transcript Highlights:

• The district is requesting to replace the existing school at the current site.
• of a replacement facility to renovation of the existing facility and an increased design capacity.
• HVAC components and any other work associated with the replacement of this middle school facility that
• In January of '23, the PSCOC awarded planning and design phase funding for a replacement facility for
• components, and any other work associated with the replacement of the middle school facility that was

Transcript Highlights:

• , remodelers, and developers, and also our associate members which include plumbers, electricians, HVAC
• It lists plumbing and pipe fitting and electrical, but not HVAC. back. So y'all gonna be hot.
• that we have shortages in all these types of fields of study, whether it's from plumbing. plumbing, HVAC
• We have concerns about replacing a core course, so English, math, science... ...or history with one of
• one thing that kind of motivated me about doing this is I cannot find... plumbers, electricians, and HVAC

Bills: HB20, HB 120, HB20, HB120

Keywords: applied sciences, career education, high school diploma, certificate program, work-based learning, job placement, high-growth jobs, technical training, career readiness, education reform, workforce training, public schools, financial aid, fraudulent solicitation, disaster relief, nonprofit organizations, criminal penalties, consumer protection, fraud prevention, charitable donations

Transcript Highlights:

• building systems replacement.
• And they're also part of the cash flow of our HVAC projects.
• And they're also part of the cash flow of our HVAC projects.
• So part of the first bond sale, $10 million is going to HVAC.
• the roof and HVAC units and finishings.

Transcript Highlights:

• Uh, so, really we're going to focus on those three, that plumbing, HVAC, and electrical, because that
• ,<00:03:16.360> and<00:03:16.440> electrical, that plumbing, HVAC, and electrical,
• that plumbing, HVAC, and electrical, because<00:03:17.239> that<00:03:17.400> really<00
• We are doing the HVAC. Local governments are also handling the electrical.
• <00:31:25.280> the your doors, you got to replace the your doors, you got to replace the carpet

Keywords: 00:01 Call to Order and Roll Call 01:32 Approval of Minutes 01:46 Public Protection Cabinet 19:05 Tourism, Arts and Heritage Cabinet 33:14 Adjournment, 958, all

Summary: The Budget Subcommittee met without a quorum at first, then approved the minutes once a quorum was reached. The first presentation was from the Department of Housing, Buildings, and Construction within the Public Protection Cabinet. Commissioner Max Fuller and Deputy Commissioner David Moore reviewed the department’s licensing structure, noting about 50 license types and roughly 42,000 active licenses, with most tied to plumbing, HVAC, and electrical work. They compared Kentucky’s fees and requirements with neighboring states and said Kentucky is generally in line or slightly below surrounding states when local and contractor licensing requirements elsewhere are considered. The department also described staffing and inspection pressures. Officials said boiler inspections have a measurable backlog, with about 18% of state-jurisdiction boilers and pressure vessels past due statewide and a higher percentage in Jefferson County. They said building code plan review turnaround has risen from about 30 days to roughly 33–35 days, and that some areas are struggling to maintain same-day plumbing inspections and three-day HVAC inspections. Members asked whether the agency could handle increased housing construction, especially in rural areas; the department said it had requested additional plumbing staff and a plan reviewer, particularly for the Bowling Green/Warren County area, and noted that electrical inspectors are stretched across the state and are also pulled into disaster response work. The committee then heard from Kentucky Venues and the Kentucky State Fair Board on the Kentucky Exposition Center renovation and related operations. David Beck, board chairman David Williams, CFO Tony Shrek, and others said the project is progressing ahead of schedule, with keys to the new building expected in December and the facility already booked for future events. They reported strong tourism and economic impact, including record activity at the Exposition Center and downtown convention center, and said the Farm Machinery Show and other events continue to drive demand. Members asked about budget status, and the presenters said inflation, delayed access to funds due to the RFP/design process, and added costs have left them short of money to finish all planned work. They identified phase three funding needs, including food and beverage service improvements and completion of Freedom Hall seating, and said they are considering bringing food and beverage operations back under their control to improve efficiency and revenue. The meeting ended with no formal votes on the presentations and an announcement that the committee would meet again the following Tuesday.

Transcript Highlights:

• standard heating and cooling replace standard heating and cooling systems<00:09:58.240> thereby
• The bill would establish a low-interest revolving loan fund for school districts to install HVAC systems
• Geothermal systems have a lower total cost of ownership than conventional HVAC systems, with payback
• systems geothermal conventional HVAC systems geothermal systems<00:22:38.799> also<00:22:39.080
• Replacing our systems with a more reliable clean energy source will advance us toward our clean energy

Bills: HF1013, HF1598, HF1656, HF2162

Keywords: energy, economic development, funding, renewable resources, Clean Energy Economy Minnesota, air ventilation, geothermal, school financing, Minnesota Climate Innovative Finance Authority, geothermal energy, renewable energy, construction funding, Como Zoo, energy efficiency, HF2162, Minnesota, planning grants, renewable development account, clean energy, Department of Commerce

Transcript Highlights:

• <00:34:00.840> the store and bath house replacement the store and bath house replacement the
• replacement and replacement of primary replacement and replacement of primary equipment<00:37:01.160
• is available to replace mattresses at five resort parks and to replace furniture at four parks.
• is available to replace mattresses at five resort parks and to replace furniture at four parks.
• the utility infrastructure or replaced the utility infrastructure replacement<00:48:15.800> phase

Keywords: Reuploaded to restore full meeting 00:13 Call to Order and Roll Call 01:14 Approval of Minutes 01:40 Tourism, Arts, and Heritage Cabinet 27:44 Department of Parks 59:23 Adjournment, 958, all

Summary: The committee met for its second Budget Review on Economic Development, Public Protection, Tourism, and Energy and first approved the minutes from the prior meeting. Members then heard a presentation from the Tourism, Arts, and Heritage Cabinet and the Kentucky Department of Tourism on the 1% tourism marketing fund. Witnesses explained that the fund supports statewide tourism promotion, advertising, research, regional marketing, and matching grants to local tourism commissions, and that it cannot be used for capital construction. They reported that the General Assembly and governor increased appropriations in the 2024 session, adding $3 million in FY25 and $7 million in FY26, and set aside funding for the Kentucky Mountain Regional Recreation Authority, the National Quilt Museum, and the Southern Kentucky Tourism Initiative. Tourism officials emphasized that Kentucky tourism is a major economic driver, citing 2023 figures of $13.8 billion in economic impact, 79.3 million visitors, $9.7 billion in direct spending, more than 95,000 jobs supported, and nearly $1 billion in state and local tax revenue. They said the department now uses targeted digital and over-the-top advertising in selected domestic and international markets, with 62% of media placements digital and 80% of the budget spent out of state. Members asked about market selection, how the department measures return on investment, and what attracts visitors from places such as Dallas, Orlando, Toronto, and Washington, D.C.; officials said research shows a mix of family visits, outdoor recreation, and varied Kentucky offerings, and that 81% of overnight visitors are repeat visitors. They also discussed the potential impact of tariffs and trade tensions on bourbon-related tourism and international visitation, especially from Canada, and officials said they were monitoring the situation with U.S. Travel Association and Brand USA. The committee then heard from Kentucky State Parks officials on capital projects funded through HJR 76, HJR 56, and House Bill 6. They said they are providing quarterly project reports and have been meeting regularly with the Finance Cabinet’s engineering and contract staff. The presentation focused on campground utilities, broadband, and structural upgrades, including $40 million for campground improvements across the park system, with completed bathhouse renovations at Barren River and Nolin Lake and additional projects underway or in planning. Officials said the work is based on camper survey feedback, such as requests for better Wi-Fi, sewer and electric upgrades, frost-free spigots, and improved site layouts, and noted that the My Old Kentucky Home campground project is under construction and expected to be completed by spring 2026.

Transcript Highlights:

• It's to hire a project manager for an HVAC repair and maintenance project.
• And maintain the HVAC system. It's supported by license and application fees.
• we want to replace was from the 1960s and that there just wasn't any value there.
• So we didn't have a replacement policy on all this or anything?
• I don't know if you had replacement cost or ACV or what you had.

Summary: The committee considered a series of appropriation, fund transfer, and reserve requests across multiple agencies. Section B temporary appropriations included funding for state technology upgrades, personnel management staffing and IT skills assessment, court reporters and interpreters, crime victim claims, juvenile sex offender assessments, radiation lab testing, and higher education workforce grants and credentialing pathways. Additional items covered an ARPA grant for the University of Arkansas Fort Smith LPN program, an IIJA grant for the Oil and Gas Commission’s critical minerals work, a restricted reserve transfer for State Police vehicle purchases, a transfer to the Arkansas Heroes Program, and cash fund requests for the Real Estate Commission’s AV system and HVAC work. Most of these items were approved by voice vote. One budget classification transfer request from the Commissioner of State Lands drew extended questioning and was ultimately not approved. Members questioned the $250,000 transfer to operating expenses tied to the purchase of a West Little Rock office building, the ongoing lease costs at the prior location, and whether the agency had adequately planned for building-related expenses. After discussion, the motion failed, and members told the agency to tighten spending and return if needed. The committee then took up 15 pay plan appropriation requests totaling $25.7 million and approved them after discussion with DFA, DHS, Corrections, and the State Board of Election Commissioners. Members focused heavily on DHS staffing shortages at human development centers, where officials said vacancies and turnover were driven by overtime and burnout rather than pay alone; one member asked DHS to submit a written plan to address the issue. Corrections reported the pay plan had improved hiring and retention. The committee also approved overtime appropriations for Emergency Management and Military. Reports on reserve funds, the Budget Stabilization Trust Fund, tobacco settlement, State Central Services, Education Adequacy, Medicaid Trust, IIJA, and revenue transfer activity were received. The Medicaid Trust Fund report prompted significant concern about February’s $90 million draw; DHS said the month was unusually high because of cash-flow timing and that the fund should end the year with a balance between $150 million and $200 million, while lawmakers noted a second $100 million set-aside is planned for FY27. The final discussion centered on DHS’s state hospital damage claim and reconstruction funding, where members expressed disappointment that insurance reimbursement would likely return only about $1.8 million now and possibly about $97,000 more later, far less than the roughly $5 million initially expected. DHS explained the policy was based on actual cash value and depreciation for old buildings, and said the work would proceed on Unit 3 for secured restoration because it was the most cost-effective option.

Transcript Highlights:

• It's not a commonly replacement program.
• <00:11:54.480> program support the wetland replacement program support the wetland replacement
• ,<00:15:51.440> we LBRP, and the wetland replacement, we LBRP, and the wetland replacement
• The cost of replacing all lead service lines in the state is a lot, likely between $1... funding to replace
• and was back in school to be a HVAC and was back in school to be a HVAC installer<00:52:45.680><

Keywords: 1187, senate, all