Transcript Highlights:

• And by real and hard money, you mean no lottery or gaming proceeds.
• In the last few years, the lottery proceeds have gone down. Is that correct?
• Well, in the last few years, the lottery proceeds have gone down. Is that correct?
• We talked about the lottery proceeds a while ago.
• So I think there's probably been offsets; maybe lottery proceeds have decreased. I don't know.

Keywords: 959, house, all

Summary: The House convened with prayer, the Pledge of Allegiance, approval of the previous day’s journal, and a series of special guest introductions recognizing family members, interns, students, public servants, and community advocates. Committee reports and Senate messages followed, including Senate refusals to concur on a large number of amendments to Senate Bill 1421 and the appointment of a conference committee on House Bill 2818. The main floor action centered on the state budget, especially House Bill 2 (public education). The budget chair explained the conference report’s funding mix for K-12 schools, including $8.4 billion for public education, changes to the foundation formula, use of blind pension funds, and possible ARPA dollars later in the process. Members debated whether the report underfunded schools by $45 million or more, with opponents arguing the state was not fully funding the formula and supporters saying total school funding remained at record levels and that the issue was the source of funds rather than the total amount. A substitute motion to send HB 2 back to conference failed 62-89, and the conference report was then adopted 83-68; the bill was third read and passed 83-68. The House then took up House Bill 2003 on higher education, where the conference report largely restored the governor’s recommendation and directed the department to develop a new funding formula by the end of the year. Members discussed performance-based funding, scholarships, apprenticeships, and the need for a slower transition to any new model. The conference report passed 119-28, and the bill was third read and passed 109-32. House Bill 2004, covering Revenue and Transportation, included about $20 million for rural roads and other transportation funding; members discussed constitutional concerns, MoDOT projects, and a small local safety fix. The conference report passed 128-21, and the bill was third read and passed 127-27.

Transcript Highlights:

• Net proceeds are the proceeds that license organizations utilize for their charitable purposes and working
• , the lottery ticket retailer.
• How many terminals does a normal average lottery place that sells lottery tickets normally have in it
• And was the lottery uh rules changed, as you had indicated, you changed the lottery rules to modify and
• Um, one would be, um, not in the business of selling something other than lottery is the state lottery

Transcript Highlights:

• So, for example, today when we talk about the lottery audit, we did an audit of the lottery both from
• So, for example, today when we talk about the lottery audit, we did an audit of the lottery both from
• So, for example, today when we talk about the lottery audit, we did an audit of the lottery both from
• So the lottery was established in 1989, and they're responsible for operating the Minnesota Lottery.
• retailers and Lottery vendors.

Keywords: 1187, senate, all

Transcript Highlights:

• </c> their proposal on video lottery their proposal on video lottery terminals<00:31:46.080><c> with<
• The House had assumed net proceeds.
• </c> about $5 million a year of net proceeds. about $5 million a year of net proceeds.
• Lottery video lottery terminals general fund share: as previously stated, the House had recommended all
• Lottery video lottery terminals general fund share: as previously stated, the House had recommended all

Keywords: LBA Briefing on Budget, 928, house, all

Summary: The presentation was an LBA overview of Senate changes to the House-passed state budget, with Michael Kane explaining how Senate Finance updated revenue and spending estimates after April revenue figures and agency discussions. He said the Senate’s revenue outlook was higher than the House’s in some areas, but lower in others, especially video lottery terminal revenue, and that the biggest differences also came from changes to revenue splits between the general fund and education trust fund, lapse estimates, and several policy changes in House Bill 1 and House Bill 2. Kane highlighted several major revenue and policy differences: the Senate changed the business tax, tobacco tax, and real estate transfer tax splits; adjusted liquor revenue dedication; removed the House’s meals-and-rooms distribution cap; delayed the Lakes Region facility proceeds plan; altered the PECARD fund treatment; added a granite patron of the arts tax credit; and changed the treatment of unique funds and video lottery terminal revenue. On spending, he noted Senate changes to judicial, corrections, HHS, human rights commission, and other budgets, including additional settlement costs, higher lapse assumptions, and a different approach to Medicaid premium revenue and retirement savings. He also described Senate additions such as a nursing home bed fee, Hampstead Hospital transition funding, and changes to the YDC claims settlement fund. The presentation focused on comparing House and Senate surplus statements across fiscal years 2025 through 2027, including projected ending balances and rainy day fund transfers. Kane repeatedly emphasized that the numbers were still dependent on final revenues and lapse amounts, and that some balances would be carried forward and trued up later in the biennium. No committee vote or final action was described in the excerpt; it was an informational budget briefing and comparison of the two chambers’ proposals.

Transcript Highlights:

• Proceed, Lady.
• Proceed, please. Mr.
• Proceed, please.
• Proceed, please.
• Proceed.

Summary: The House convened with prayer and the Pledge of Allegiance, approved the prior day’s journal by a 134-0 roll call vote, and then moved through a series of introductions recognizing guests and student groups at the Capitol, including Turning Point USA chapters, CASA volunteers and staff, JAG students, university groups, nursing students, and several legislative interns. The chamber also handled a point of order about an unauthorized prop in the room, which was removed. The first major bill taken up was House Bill 1766, dealing with personal property tax treatment and new construction calculations. Supporters argued it would treat personal property more like real estate under Hancock-style limits and provide fairness to taxpayers, while opponents warned it could reduce revenue for taxing districts. After debate, the House passed HB 1766 by a vote of 94-50. The House then considered House Committee Substitute for House Bill 2989, a major gaming measure that would criminalize illegal gaming machines, create a regulated framework for video lottery terminals, give local governments an opt-out, and expand enforcement authority for the Attorney General and prosecutors. Members debated whether the bill was a needed enforcement tool or an inappropriate expansion of gambling, with concerns raised about addiction, local control, revenue distribution, and whether the bill should have gone to Fiscal Review. A motion to refer the bill to Fiscal Review failed 69-44, and the bill itself passed 83-66 with one present. The chamber next took up House Committee Substitute for House Bill 2014, the supplemental appropriations bill. The sponsor said it provided just over $3 billion in additional authority, including tax refund authority, disaster relief, St. Louis tornado recovery funding, and major MoDOT funding, along with other smaller items. Members from both parties supported the bill, while also noting concerns about reliance on supplementals and the need to budget more accurately in the future. The House adopted an amendment reducing some general revenue authority, then adopted the bill and perfected and printed it. The meeting ended with announcements, including a notice that the Super Committee on Tourism would meet immediately in Hearing Room 6.

Transcript Highlights:

• The state lottery under chapter 349A is overseen by its own state agency, the Minnesota State Lottery
• The revenue generated by the lottery is collected by the state lottery, and the agency is required to
• The state lottery under chapter 349A is overseen by its own state agency, the Minnesota State Lottery
• The revenue generated by the lottery is collected by the state lottery, and the agency is required to
• Please proceed. Of course.

Keywords: 1183, house

Transcript Highlights:

• And then replace line 55: proceeds from any ... and then replace line 57 with interest earned on principal
• <00:25:57.440><c> replace</c><00:25:57.840><c> line</c><00:25:58.159><c> 55</c><00:25:58.799><c> proceeds
• c><00:25:59.360><c> from</c><00:25:59.760><c> any</c><00:26:00.880><c> and</c> I replace line 55 proceeds
• from any and I replace line 55 proceeds from any and then<00:26:01.600><c> on</c><00:26:02.320><c> replace

Bills: HB589, HB591, HB609, HB614, SB57, SB280, SB332, HB589, HB591, HB609, HB614, SB57, SB280, SB332, HB627

Keywords: Jefferson County, building regulations, zoning, public health, building commissioner, permits, construction, land use, county tax, lodging tax, Henry County, transient accommodations, hospitality industry, local act, sheriff, sheriff's office, task force, abandoned property, stolen property, unclaimed property

Transcript Highlights:

• Recommendations include maintaining the general revenue dedicated state lottery fund for the lottery
• Net proceeds for charitable organizations were $30.9 million and net proceeds. of adjusted gross receipts
• lottery license retailers.
• lottery retailer.
• We can get rid of the Lottery Commission. as soon as we get rid of the lottery. Oh, what an idea.

Bills: SB1, SB 1

Keywords: appropriations, budget, state funding, education, healthcare, infrastructure, campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• As you restricted lottery funds.
• Lottery video lottery terminals general fund share, as previously stated, the House had recommended all
• </c><00:37:41.839><c> video</c><00:37:42.240><c> lottery</c><00:37:42.640><c> terminals</c> um lottery
• video lottery terminals um lottery video lottery terminals general<00:37:43.359><c> fund</c><00:37:43.760
• But how is it lottery terminals.

Keywords: 1191, senate, all

Summary: The Legislative Budget Assistant staff presented an overview of the Senate changes to the House-passed budget, focusing on revenue estimates, appropriations, and ending balances across the general fund and education trust fund. The presentation emphasized that the Senate’s budget reflected higher revenue assumptions than the House, driven in part by updated April revenue figures, changes to business, tobacco, and real estate transfer tax splits, and different assumptions about video lottery terminal revenue. The Senate also adjusted lapse estimates upward, especially for HHS, after receiving updated information that lapses could be much larger than originally assumed. The presenter walked through the major differences in the surplus statements for fiscal years 2025 through 2027. Compared with the House, the Senate budget generally showed higher revenues, lower or different appropriations in some areas, and larger balances carried forward, including a larger education trust fund balance and a different rainy day fund transfer. The Senate’s approach also changed several policy assumptions, such as maintaining liquor revenue dedication, removing the House’s meals-and-rooms distribution cap, changing the treatment of unique revenue, and altering the process for meeting a targeted revenue amount by giving the governor more flexibility. On the appropriations side, the Senate removed or modified several House reductions and added funding or adjustments in areas including the judicial branch, corrections, HHS, the Human Rights Commission, and certain settlement costs. The presenter also highlighted Senate changes in House Bill 2 and related budget provisions, including a new arts tax credit, a nursing home bed fee, changes to Medicaid premium assumptions, and differences in how motor vehicle inspection repeal and BLT-related revenue are handled. No votes were taken in the portion shown; the discussion was informational and comparative, aimed at explaining the Senate budget changes before conference committee negotiations.

Transcript Highlights:

• You may proceed. Okay.
• So our lottery operations—we're really proud of our lottery operations.
• advertise parts of the lottery to encourage awareness of it. ...committee, some of the lottery funds,
• The lottery department? Oh, yes.
• Net proceeds is the next line.

Keywords: 908, all

Summary: The committee met to hear the Attorney General’s budget and related agency presentations. Legislative Council first reviewed the compliance with legislative intent report and the base budget worksheet, highlighting current and ongoing appropriations, FTE changes, one-time funding items, continuing appropriations, and major special and federal funds. Members asked about items such as the Missing Indigenous People Grant Fund, the Internet Crimes Investigation Fund, and the Medicaid Fraud Control Unit grant funding, and staff explained the funding sources and status of those programs. Assistant Attorney General Clare Ness then outlined the Attorney General’s office structure, staffing, and budget pressures. She emphasized the office’s broad statutory duties, the value of its legal and investigative work for state and local governments, and concerns about attorney salary competitiveness, the new and vacant FTE pool, and the impact of the 3% operating budget reduction on BCI, IT, and the crime lab. Members also discussed AG opinions, boards and commissions training, and the office’s litigation and settlement recoveries. Ness and committee members raised the possibility of broader attorney salary benchmarking across state government. The crime lab director described severe space and infrastructure constraints, including overcrowding, shared workspaces, glycol leaks, air handling limits, and aging fire and burglar alarm systems. She said the 2024 study projected a much larger facility would be needed and that a new building on the current health department site would best address the lab’s needs. She also reported that backlogs have improved significantly in DNA, drug, fingerprint, and firearms work, though toxicology had a recent delay after an air compressor failure. The Medicaid Fraud Control Unit director described the unit’s fraud, abuse, and neglect work, noted federal-state funding and recent federal scrutiny, and said the unit needs more staff. The gaming division reviewed charitable gaming growth, e-tabs, trust accounts, and compliance issues, while BCI covered its caseload, cybercrime and child sexual abuse material investigations, the missing indigenous person task force, and the use of lottery funds for drug task forces. No formal votes or budget actions were taken during the meeting.

Transcript Highlights:

• You may proceed. Okay.
• So our lottery operations—we're really proud of our lottery operations.
• The lottery department? Oh, yes.
• Gross proceeds, if you take a look at the gross proceeds here, we've got a trend line for you to show
• Increases in gross proceeds.

Summary: The committee met to review the Attorney General’s budget and related agency operations, beginning with Legislative Council staff walking members through compliance reports and a blue-sheet base budget document. Staff highlighted current-biennium items such as FTE changes, one-time appropriations, litigation funding, opioid settlement receipts, continuing appropriations, and major special and federal funds. Members asked for clarification on items including the Missing Indigenous People Grant Fund, the Internet Crimes Investigation Fund, and the Medicaid Fraud Control Unit grant funding. Assistant Attorney General Clare Ness then gave an overview of the office’s structure, staffing, and budget pressures. She emphasized the office’s broad statutory duties, the value of its legal services to state and local government, and concerns about attorney pay lagging behind other agencies. Members discussed whether attorney compensation should be benchmarked more consistently across state government and whether some legal work could be consolidated within the AG’s office. Ness also addressed questions about AG opinion turnaround times, boards-and-commissions training, the new-and-vacant FTE pool, operating expense cuts, office leases, and the state’s criminal justice information systems. The crime lab presentation drew significant attention. Director Jennifer Penner described severe space, safety, and infrastructure problems at the current lab, including cramped work areas, glycol leaks, outdated fire and burglar alarms, air-handling limits, and equipment failures that have delayed toxicology work. She said the 2024 study projected a much larger facility would be needed and that the preferred location would be near the current health department site, but in a new building. Members asked about possible evidence risks, backlog status, and whether the proposed building would solve the current problems; Penner said it would and noted backlogs have improved overall, though some delays remain. The committee also heard from the new Medicaid Fraud Control Unit director, who described the unit’s civil and criminal work, federal-state funding split, and examples of fraud such as billing for services not provided or upcoding. The gaming division reported continued growth in charitable gaming and e-tabs, with members expressing concern about large trust-account balances, site competition, and possible misuse of proceeds. Finally, BCI outlined its caseload, cybercrime work, missing Indigenous persons task force, and the surge in CSAM cyber tips; members asked about AI-generated CSAM, and the AG’s office noted that last session’s law increased penalties and expressly allowed AI-generated CSAM to be prosecuted like other CSAM. No formal votes or actions were taken beyond approval of the minutes.

Transcript Highlights:

• Louisiana Lottery. $500,000 of the net proceeds from the Louisiana Lottery will go annually to the Veterans
• the MFP from fiscal year 2005 lottery net proceeds.
• We're going to kick that back over to the lottery proceeds fund.
• We're going to kick that back over to the lottery proceeds fund.
• It is just the proceeds that are coming from the lottery proceeds fund.

Summary: The House Appropriations Committee met on April 27 and first took up House Bill 175 and its companion House Bill 165, both dealing with lottery proceeds for veterans. HB 175 was amended to create a Veterans Service Grant Board within the Department of Veterans Affairs and direct $500,000 annually from Louisiana Lottery net proceeds into a Veterans Service Grant Fund, with unused money returned to the lottery proceeds fund that supports the MFP. Supporters, including the bill sponsor, The Boot Louisiana, LDVA Secretary Charlton McGinley, and Bastion Veterans Organization, argued the grants would help veteran services, workforce placement, mental health, housing, entrepreneurship, and retention of veterans in Louisiana. Members raised concerns about drawing from lottery proceeds that traditionally support education, but the committee adopted amendments and reported HB 175 favorably as amended. HB 165, the constitutional amendment companion, was also amended for technical and ballot-language changes and then reported favorably as amended for voter consideration. The committee then considered House Bill 457, which would authorize the Louisiana Department of Health and the State Fire Marshal to set minimum housing standards for homeless shelters, group homes, and halfway homes. The sponsor said the bill responded to a state auditor recommendation and to unsafe conditions in some facilities; he also explained an amendment changing the Fire Marshal’s duties from mandatory to permissive to reduce fiscal impact and allow agencies flexibility. Some members questioned whether local standards already existed and how enforcement and funding would work, while others supported the need for statewide minimum standards for human housing. The committee adopted the amendment and reported HB 457 favorably as amended. House Bill 488, by Representative Brough, sought to create a Belle Chasse Bridge Merit-Based Special Fund using recurring severance tax revenues from Plaquemines Parish to help buy out the Belle Chasse toll bridge and end what the sponsor described as excessive tolls and fees. He and several local witnesses, including business owners, a YMCA representative, and a parish council member, testified that the tolling arrangement had harmed access, businesses, and quality of life. The committee adopted a technical amendment clarifying the revenue source and then reported HB 488 favorably as amended. House Bill 566, which would prohibit state funds from supporting net-zero greenhouse gas initiatives tied to the 2022 Louisiana Climate Action Plan, drew significant debate over whether it would interfere with agency funding and economic development efforts; the sponsor argued the plan lacked legislative approval and should be repudiated, while members urged caution and suggested hearing from affected agencies. The sponsor agreed to consider deferring the bill, and the committee did not advance it at that time. House Bill 603, a constitutional amendment authorizing investment of state funds in digital assets and precious metals, was discussed as a way to hedge inflation and preserve value; members asked about limits and safeguards, and the bill was reported favorably. The committee then began hearing House Bill 763, a transparency measure creating a public database for settlement agreements involving state agencies.

Transcript Highlights:

• Proceed, Lady.
• Proceed, lady.
• Proceed, please.
• The Lottery Commission. The Lottery Commission would regulate.
• Proceed.

Keywords: 959, house, all

Summary: The House opened with prayer, the Pledge of Allegiance, and approval of the prior day’s journal by a 134-0 roll call vote. Members then moved through a series of personal privileges and introductions of guests, including Turning Point USA chapters, CASA volunteers and staff, JAG students, university students, nursing students, interns, and other visitors recognized from across the state. On third reading, House Bill 1766, dealing with personal property tax treatment and new construction, was debated as a taxpayer relief measure. Supporters said it would treat personal property more like real estate under Hancock-style limits, while opponents warned it could reduce revenue for taxing districts. The bill passed 94-50. The House then took up House Committee Substitute for House Bill 2989, a major gaming bill aimed at cracking down on illegal “gray market” machines while creating a regulated local-option video lottery terminal system. Debate focused on enforcement, local control, consumer protection, revenue for education, veterans, and disability programs, and whether the bill effectively legalized gambling in a new form. A motion to send it to Fiscal Review failed 69-44, and the bill ultimately passed 83-66 with one present. The chamber next considered House Committee Substitute for House Bill 2014, the supplemental appropriations bill. The sponsor said it provides a little over $3 billion in additional authority for the rest of FY2026, including tax refunds, disaster response, St. Louis tornado relief, Medicaid-related spending, and Missouri Department of Transportation operations. Members discussed the size of supplemental spending, the use of federal and general revenue funds, and the first-time use of general revenue for the adult expansion Medicaid population. The House adopted an amendment reducing some unused Medicaid authority, then adopted the bill as amended and perfected it for printing. The session ended with announcements, including a notice that the Super Committee on Tourism would meet immediately in Hearing Room 6.

Transcript Highlights:

• And it's a committee that spends the proceeds from our lottery that go into the Environment and Natural
• And this is money from our lottery proceeds that was something that's overwhelmingly enjoyed by Minnesotans
• from the state um come from proceeds from the state lottery.<00:04:15.760><c> Has</c><00:04:15.920><
• Has there ever been lottery.
• Environment Natural Resources Trust Fund come from proceeds from the state lottery.

Keywords: 919, house, all

Summary: The committee took up House File 3426, the annual LCCMR appropriation bill funding projects from the Environment and Natural Resources Trust Fund (ENRTF), which is supported by state lottery proceeds and does not affect the general fund. The bill was described as containing 108 appropriations totaling $102.036 million, including 11 extensions of prior appropriations, and a new community grants program funded at $28.18 million under the constitutional limit. The author noted the bill is the second year of funding after the 2024 voter-approved amendment renewing the ENRTF and community grants program. Members discussed the bill’s scope and purpose, including projects for scientific research, PFAS mitigation and testing, rapid testing for chronic wasting disease, parks and trails, outdoor recreation, and solid waste/recycling innovation. Co-Chair Heintzeman said the bill had involved many conversations, thanked the author for working with the caucus, and noted that a missing project issue had been addressed to improve the bill’s path forward. He also said statutory changes were being made to the community grants program to reduce fraud risk and incorporate suggestions from the Office of the Legislative Auditor. Co-Chair Koznick asked about whether lottery-funded ENRTF dollars had ever been considered for proportional returns to districts, but the author said he was not aware of such discussions and emphasized that the fund benefits all Minnesotans through projects across the state. After no further questions, the chair renewed the motion to recommend House File 3426 for placement on the general register, and the committee approved it by voice vote with no opposition recorded.

Transcript Highlights:

• You may proceed. Okay.
• So our lottery operations—we're really proud of our lottery operations.
• The lottery department? Oh, yes.
• Gross proceeds, if you take a look at the gross proceeds here, we've got a trend line for you to show
• Net proceeds is the next line.

Summary: The committee met as the Commerce and Legal Services Division and first approved the minutes, then received a Legislative Council overview of the Attorney General’s current budget status and a blue-sheet summary of the AG’s base budget for the next biennium. Staff highlighted compliance with legislative intent items, including FTE changes, one-time funding updates, litigation pool spending, opioid settlement receipts, and continuing appropriations. Members asked about specific funds such as the Missing Indigenous People Grant Fund and the Internet Crimes Investigation Fund, and staff explained the statutory basis and status of those items. The Attorney General’s office then presented an extensive overview of its divisions and budget pressures. Chief Deputy Attorney General Clare Ness described the office’s 14 divisions, the role of the office in defending the state and recouping funds, and concerns about attorney pay, recruitment, and retention. Members discussed whether attorney salaries should be benchmarked across state government and whether more legal work could be centralized in the AG’s office. The office also described challenges with the new-and-vacant FTE pool, operating expense cuts, leased office space, and the criminal justice information systems used to connect law enforcement, prosecutors, and courts. The Crime Laboratory director gave a detailed update on space and infrastructure problems, saying the current lab is overcrowded and outdated, with safety, workflow, air-handling, glycol leak, alarm, and maintenance issues that can delay casework and risk evidence integrity. She said a 2024 study projected a need for a much larger facility and that the preferred option would be a new building on the current health department site, at an estimated cost of roughly $40 million to $45 million. She also reported that backlogs have improved significantly in DNA, firearms, fingerprint, and drug cases, though toxicology had recently developed a small backlog after an air compressor failure. The Medicaid Fraud Control Unit, gaming division, and BCI also provided updates. MFCU’s new director said the unit is federally funded 75/25, focuses on fraud, abuse, and neglect, and is seeking two attorney hires while continuing to work with federal partners on cases and recertification. Gaming staff reported continued growth in charitable gaming and electronic pull-tab activity, with concerns about site competition, large trust balances, possible ineligible expenditures, and the need for more scrutiny as revenues have grown. BCI outlined its staffing, drug task forces, ICAC work, and the Missing Indigenous Person Task Force, which is using its $250,000 appropriation to help tribal nations develop emergency response plans and purchase alerting tools such as IPAWS. No formal votes were taken beyond approval of the minutes.

Transcript Highlights:

• Sales of entertaining lottery products. Mr.
• How many terminals does a normal average lottery place that sells lottery tickets normally have in it
• Okay, and was the lottery rules changed as you had indicated you changed the lottery rules to modify?
• is the State Lottery Act.
• I don't know, I guess, when's the next lottery, Wednesday? The lottery in Texas, yes.

Keywords: 1184, house, all

Transcript Highlights:

• So before we dive into the lottery review, I just wanted to point out that we did invite the lottery
• Lottery.
• </c><01:02:21.440><c> has</c> lottery um so therefore the lottery has lottery um so therefore the lottery
• </c> so from an IT perspective the lottery so from an IT perspective the lottery core<01:02:30.720><c
• Okay, please proceed. Sure.

Keywords: 1183, house

Transcript Highlights:

• </c><00:14:38.639><c> the</c> and we can proceed the and we can proceed the uh<00:14:41.199><c> everything
• Shall we proceed with the the Senate. Shall we proceed with the house<00:19:49.200><c> votes?
• So my understanding is we can proceed to vote. Yes.
• And we're just uh proceed to vote. Yes.
• I'll proceed with version.

Keywords: 912, senate, all

Transcript Highlights:

• So then we proceed with that.
• For four years in a row, the Florida Lottery has been ranked as the number one revenue-generating lottery
• The Multi-State Lottery Association. MUSL is the gold standard.
• Florida Lottery.
• lottery in the country as well.

Summary: The State Administration Budget Subcommittee met for budget day, heard agency follow-up questions, and then presented its recommended budget for fiscal year 2025-2026. Chair Lopez opened with remarks about reducing spending, emphasizing vacancy reductions and recurring savings across agencies. The recommendation eliminated 452.5 vacant positions and produced recurring savings of $57.2 million overall, while still funding selected priorities. Notable funded items included $500,000 for a new DBPR website for condominium complaints and document filing, $481.3 million for the MICEF Florida Home Program in DFS, funding for Florida PALM implementation, $330,000 for a Tampa office in the Office of Insurance Regulation, $835,000 for warehouse space for confiscated gambling machines, $821,000 for the Lottery gaming system contract, and major DMS capital and facilities funding. Lopez also criticized DMS leadership and said the secretary’s salary would be held in reserve pending answers on fleet management, remote workers, SUNCOM billing, and other issues. The committee then questioned DBPR Secretary Griffin about condominium records, structural integrity reserve studies, and milestone-inspection compliance. Members focused on how the division tracks condominiums, whether it can identify buildings with three habitable stories, and whether the current filing system can be improved to better capture building height and story count. Griffin said the division relies heavily on self-reporting and complaint-driven checks, but has updated forms to capture whether a condominium has buildings three stories or higher and has received additional submissions. Members also asked about staffing and the Miami-area office; Griffin said DBPR now has two Fort Lauderdale offices and a Doral office, with about 82% of new positions filled. Secretary Davis of the Florida Lottery also testified, defending travel to Paris and other conferences as part of industry engagement, technology research, and best-practice sharing. He said the travel was reimbursed through lottery-related organizations, described the Lottery as an enterprise fund that receives no general tax revenue, and said the agency has remained a top revenue generator nationally. Members questioned Orlando travel reimbursements and dues to the Multi-State Lottery Association, and asked for more information on how increased revenue translates into more Bright Futures scholarships. Davis said he would provide additional details. The subcommittee then unanimously passed two conforming bills. PCB SAB 25-01 removed statutory references to the legacy FLAIR accounting system in preparation for Florida PALM and was reported favorably. PCB SAB 25-02 addressed Capitol Center space after the planned House lease cancellation, declaring the governor, cabinet, and legislature permanent tenants, protecting existing space and parking allocations, giving the legislature first right of refusal on vacant space, and giving legislative leaders control over utilities in their space; it also passed unanimously. The meeting adjourned after the bills were reported favorably.

Transcript Highlights:

• </c> As a reminder, 100% of net lottery As a reminder, 100% of net lottery proceeds<00:03:13.920><c>
• But the lottery grant, and keys.
• </c> &gt;&gt; I do not know the lottery numbers. &gt;&gt; I do not know the lottery numbers.
• These are not lottery funded. The early childhood program was not lottery funded.
• </c> &gt;&gt; Go ahead and proceed. &gt;&gt; Go ahead and proceed.

Keywords: 958, all

Summary: The Interim Joint Budget Review Subcommittee on Education met and approved the July 15, 2025 minutes before hearing a presentation from the Kentucky Higher Education Assistance Authority (KHEAA/KIA) on student financial aid ahead of the January biennial budget session. KHEAA outlined its role administering 17 state-funded grant and scholarship programs, 529 plans, and outreach services, and emphasized that net lottery proceeds after a $3 million literacy appropriation are statutorily dedicated to student aid. The agency focused on the major need-based programs—College Access Program (CAP), Kentucky Tuition Grant (KTG), and KEES—along with dual credit, Work Ready Kentucky, teacher scholarship, and National Guard tuition assistance. Officials said the new federal FAFSA methodology created a major increase in eligible students, especially for CAP, and thanked lawmakers for adding substantial funding this biennium to meet the higher demand. Staff explained that CAP is for Pell-eligible, low-income students, while KTG is a need-based grant for students at private Kentucky colleges; both use FAFSA data, but schools verify final eligibility. They said CAP awards are first-come, first-served and that the higher funding level allowed the program to last the full 21-month application cycle in FY 2024-2025, compared with much shorter periods in earlier years. KHEAA reported about $232 million spent on CAP for roughly 72,000 students last year, with current applications running about 10% ahead of the prior year. Members asked about the difference between applicants and recipients, the effect of lower lottery revenues, and whether recent federal legislation would affect state aid; KHEAA said it does not expect major impacts on grants and scholarships, though student loan changes could affect graduate students. The committee also discussed KEES and dual credit. KHEAA said KEES has been fully funded since its creation and that its forecast was within $76,000 of actual need last year. For dual credit, staff said a recent bill consolidated work-ready dual credit and career/technical education under one scholarship program, and KHEAA will seek growth funding because participation and costs continue to rise. The agency said FY 2025 dual credit spending reached $26.4 million across dual credit and work-ready funding, requiring transfers from Work Ready Kentucky to keep dual credit fully funded. Members asked about transferability of dual credit hours and whether the program reduces later college costs; KHEAA said it does not have hard data on every credit transfer, but it does see higher bachelor’s completion rates and lower student debt, suggesting positive effects. No votes were taken beyond approving the minutes.