Transcript Highlights:

• The funding is allocated across programs administered by the Department of Food and Agriculture, the
• Fund.
• and special fund exercises after enactment we've been reductions in both general fund and special fund
• This funding is allocated across various programs within the Office of Land Use and Climate Innovation
• for Farm to School and the allocation of Prop 4 funds.

Keywords: 988, house, all

Summary: The committee first heard opening remarks from Secretary of Food and Agriculture Karen Ross, who reviewed the department’s budget and priorities. She emphasized California agriculture’s record production, but also the pressures facing farmers from climate change, drought, groundwater regulation, supply chain disruptions, low commodity prices, and federal funding cuts. Ross highlighted ongoing investments in Farm to School, local food procurement, food hubs, climate-smart agriculture, invasive pest prevention, bird flu response, and food safety, and she warned that proposed USDA cuts and market disruptions could harm research, pest control, and export development. Members also discussed the importance of local food systems, school kitchens, and the need to better connect farmers to schools, food banks, and institutions. A major topic was the Farm to School program and related local food initiatives. The chair raised concerns that the Legislative Analyst’s Office was recommending against continued funding for Farm to School because it did not meet the state’s “must-have” standard, and suggested pairing it more closely with the Local Food Purchase Assistance Program and food hubs to broaden its impact. Ross responded that Farm to School has already reached nearly half of California students, has helped small farms, and is part of a larger strategy that includes school kitchen investments and culinary training. Members also discussed Market Match/CNIP, which Ross said was not funded in the current budget, and Proposition 4 climate bond spending, including SWEEP, Healthy Soils, urban agriculture, invasive species work, tribal food sovereignty, and land access programs. The committee then moved to Item 1 on eliminating vacant positions at the Departments of Fish and Wildlife, Parks and Recreation, and Food and Agriculture. The LAO explained that the Governor proposed eliminating 6,000 vacant positions statewide, with the JLBC previously not concurring with 650 of them, including 174 in these three departments. The LAO recommended retaining the special-funded positions at Fish and Wildlife and Food and Agriculture because they support important functions and do not materially help the budget, while weighing the General Fund positions against other priorities. Finance said the vacancy reductions were intended to improve budget resiliency and preserve flexibility, noting that vacant positions can be used to cover other operational costs or be reclassified. Department representatives argued some eliminated positions were hard to fill and that the cuts would affect permitting, public safety, maintenance, and pest detection, though they said immediate impacts would be limited because many positions were already vacant. Members pressed Finance and department staff on whether the savings justified the program impacts, especially at Fish and Wildlife, where permitting bottlenecks were described as a concern for housing, clean energy, water, and transportation projects. Several members questioned why special funds tied to fees were being reduced, and why Fish and Wildlife’s special funds were treated differently from other departments. Parks said the proposed ranger and maintenance cuts would not have immediate effects but could slow long-term maintenance and staffing capacity. CDFA said some of the eliminated positions supported early pest detection, the broom rape program, and other oversight functions, but that the department believed it could still meet its mandate through reclassification and internal prioritization. No votes were taken, and the chair noted that public comment would come after all items were heard.

Transcript Highlights:

• Not due to a lack of funding or demand.
• We think a portion of that space should be allocated to the attacher as well.
• space on the poll logically and economically fairly in terms of allocating costs.
• attachers as opposed to the 7.4%, and the Arkansas formula allocates 19%.
• Of the range of operating capital costs times the space allocation factor.

Transcript Highlights:

• to the ABC funding.
• So, you know, maybe that would be helpful if you talk about funding, the differences in funding K-12
• Is that funding that's being, I think what I was told by someone at the department was that funding was
• And I guess it's all going to be funded out of SRA funds. Is that right? Very close.
• funds and if we can braid and blend dollars to support students and not try to fund a bunch of siloed

Summary: The committee met to review the minutes and then held a workshop-style discussion with Arkansas Department of Education early childhood officials about the state’s early learning programs, funding, and access. Officials explained that the state-funded ABC program has been largely flat for years, rising from $11 million to about $14 million in 2018, while the federally funded SRA/CCDF side is much larger. They described differences between the programs, including ABC’s 10-month school-year structure, current enrollment of about 23,000 children in ABC and about 14,871 in SRA, and a SRA wait list that has grown to roughly 2,971 children. Members raised concerns about rural access, school-based versus community-based providers, reimbursement rates, and the need to align early childhood funding with K-12 and kindergarten readiness goals. A major topic was the recent $14.741 million PDG B-5 competitive grant. Officials said it is a one-year systems-building grant, not a direct services grant, and will support local leads, CLASS observations, workforce efforts, and data systems while helping offset some costs that otherwise would have been paid through CCDF. Members also discussed the end of a federal pre-K funding stream in June, with children either moving into ABC slots or requalifying for SRA, and the state’s new enrollment-based payment approach, which officials said saved about $576,000. The committee also heard that the current cost-of-care study is about three years old and that a new market-rate survey is being planned. Several members questioned dual enrollment in home visiting/HIPPY and ABC, with officials saying about 1,200 children are enrolled in both and that limiting double enrollment could save about $2.4 million and affect roughly 470 children. Members also asked about provider closures after rate changes; officials said eight providers cited funding as a reason for closing, while 26 new providers have been added under the new rates. The discussion ended with broad agreement that the committee should continue regular updates, keep providers and families informed, and explore policy changes, waivers, and possible state investments to improve stability, access, and quality in early childhood education.

Transcript Highlights:

• So those funds had essentially remained dry. There was still funding happening then.
• Currently, these default reserve funds are allocated across multiple accounts, resulting in increased
• Being proposed for drastic funding reductions, a drastic cut in those funds.
• allocations.
• One C, so we have for three years now funded this with the one-time allocation from that period ago.

Summary: The Assembly Subcommittee on State Administration held a budget hearing focused heavily on housing, homelessness, and related administrative proposals. HCD reported that California housing production has increased, with 2023 completions up 13% from 2022 and entitlement and construction timelines improving, while members and advocates criticized the Governor’s January budget for zeroing out or sharply reducing several housing programs. Public testimony urged funding for affordable housing production, preservation, youth housing, CalHome, LIHTC, HAP, and related programs, and several speakers argued the state should not pull back after recent progress. A major policy item was trailer bill language to allow HCD to access “excess equity” in existing affordable housing projects and recycle those funds into new or preserved housing. HCD and the LAO said the proposal could unlock tens or hundreds of millions of dollars, but members wanted guardrails and clearer statutory direction to ensure the funds stay within the intended housing purposes. The committee also discussed encampment resolution funding; HCD said the proposal would shift expenditure deadlines to the date of award rather than appropriation, while the LAO raised concerns about limited outcome data and urged the Legislature to use upcoming reporting before deciding on future funding. The hearing also covered HCD trailer bills to consolidate default reserve funds into a centralized continuously appropriated account and to clarify reporting requirements for early rounds of the Homeless Housing, Assistance and Prevention program. HCD requested funding to implement chaptered legislation, including a new tribal housing program and reporting-related bills, and also sought extensions for certain reappropriations, including Homekey and REAP 2 deadlines. Public commenters and regional agencies supported flexibility for REAP 2 timing and other housing-related adjustments. Finally, the Business, Consumer Services and Housing Agency presented the Governor’s reorganization proposal to split the current agency into a Housing and Homelessness Agency and a Consumer Protection Agency. The administration said the change would improve focus, efficiency, and coordination, but the LAO and several members questioned whether it would truly save money or improve accountability, especially given the need for new leadership, possible staffing changes, and the fact that the plan had not yet been formally submitted for review. No votes were taken during the hearing.

Transcript Highlights:

• ,<00:11:48.240> it's the the issue is not more funding, it's the the issue is not more funding
• authority for administration of funds. authority for administration of funds.
• and what we try to do is roll over funds and what we try to do is roll over funds from<00:14:46.880
• It have enough funds for that to happen.
• has always been basically barely funded. has always been basically barely funded. um<00:16:39.519

Bills: SB79, HB379, SB253, HB278, HB438, HB233, SB79, HB379, SB253, HB278, HB438, HB233

Keywords: sex-based terminology, gender identity, male, female, man, woman, boy, girl, single-sex spaces, women's rights, privacy, safety, fairness, anti-discrimination, vital statistics, birth certificate, intersex, DSD, differences in sex development, transgender

Transcript Highlights:

• If receipts were, you know, rental income or interest income or anything like that, you had to allocate
• If receipts were, you know, rental income or interest income or anything like that, you had to allocate
• the character of investments is different now when you invest in certain kinds of funds.
• the character of investments is different now when you invest in certain kinds of funds.
• the character of investments is different now when you invest in certain kinds of funds.

Bills: SB309, HB192, SB178, SB179, SB237, HB10, HB107, HB189, HB37, HB226, SB309, HB192, SB178, SB179, SB237, HB10, HB107, HB189, HB37, HB226

Keywords: automated driving systems, oversized vehicles, transportation, regulations, permits, HB192, international wire transfer, wire transfer fee, remittance fee, money transmission business, Alabama Securities Commission, Department of Revenue, Education Trust Fund, ELL instructors, English Language Learner, ESL teachers, income tax credit, remittances, international money transfer, migrant families

Transcript Highlights:

• you're going to have a reduction of people who will provide the services under the limited amount of funds

Bills: SB210, SB292, HB360, HB233, HB66, HB356, HB164, HB238, HB209, SB223, HB307, SB210, SB292, HB360, HB233, HB66, HB356, HB164, HB238, HB209, SB223, HB307

Keywords: hospital liens, medical billing, government healthcare, insurance claims, patient rights, education oversight, subpoena authority, investigation, State Superintendent, school misconduct, drug courts, accountability, veterans, mental health, substance abuse, rehabilitation, criminal justice, court intervention, terrorist threat, terroristic threat

Transcript Highlights:

• But first of all, we are asking that 10% of this fund be allocated to a new homeless services special
• Thirdly, um, in the other bill, it reduces the allocation to the rental housing revolving fund.
• She said 10% of the fund should be allocated to a new homeless services special fund because federal
• She added that the bill reduces the allocation to the rental housing revolving fund from 50% to 20%,
• Betty Lu Larson continued: in the other bill, the allocation to the rental housing revolving fund is

Bills: SB2190, SB2338, SB2424, SB2356, SB2981, SB3028, SB3187, SB2378, SB2398, SB2192, SB2155, SB3219, SB3218

Keywords: affordable housing, employment contracts, salary caps, housing finance, public housing authority, executive compensation, parking minimums, off-street parking, transit-oriented development, TOD, housing supply, smart growth, redevelopment, adaptive reuse, micro units, rail transit, public transit stations, county zoning, land use, urban planning

Summary: The House Housing Committee heard testimony on a series of housing-related Senate bills. SB 2190 SD2 on inclusionary zoning drew support from HHFDC, Hawaii YIMBY, Grassroot Institute, Housing Hawaii’s Future, and Hako Seed Center, with opposition from OHA and Aloha Independent Living Hawaii. SB 2338 SD1, dealing with housing agency personnel authority, received comments from the Attorney General cautioning that the bill should be clarified to avoid conflicts with civil service and collective bargaining laws and recommending removal of a provision limiting employment contracts; HHFDC said its comments addressed those concerns and supported the measure. SB 2424 SD1, concerning HHFDC, received broad support from housing, business, and community groups, with one opposition. Testimony focused on changing the definition of “qualified resident” so people who already own an HHFDC-assisted unit could later purchase another if their housing needs change; HHFDC said the current rule forces people to sell before buying again and that the bill would help people move up the housing ladder and encourage more housing development. SB 2356 on parking also drew broad support from state agencies, housing advocates, business groups, and local officials, with Unite Here Local 5 in opposition. SB 2981 on land use had strong support from many organizations and 67 individuals, with Unite Here Local 5 opposing. SB 3028 SD2 on property conveyance generated the most detailed policy debate. Supporters, including Catholic Charities Hawaii, Hawaii Children’s Action Network, Indivisible Hawaii, and others, backed restructuring the conveyance tax into a marginal rate system and urged changes to revenue allocations, including dedicated funding for homeless services, DHHL, and the rental housing revolving fund. The Tax Foundation of Hawaii supported the marginal-rate concept but opposed dedicated special-fund allocations and criticized the bill’s blank sections. Committee members questioned the historical purpose of the conveyance tax, and the Tax Foundation explained it was originally a modest tax tied to property-value tracking when the state still ran the property tax system. The committee also heard SB 3187 SD2 on off-site construction, SB 2378 SD2 on housing permitting, and SB 2398 SD2 on residential housing utilities. OPSD supported SB 3187 but said it preferred the House version and wanted clarification that off-site certification should apply to factories in Hawaii, not out of state, to avoid outsourcing labor; it also suggested starting with a small scope. SB 2378 SD2 drew support from engineering, housing, and labor groups, with testimony that the House version included needed fixes to make the program insurable. On SB 2398 SD2, the Board of Water Supply opposed the bill, saying it could require disclosure of sensitive infrastructure information beyond ordinary water-availability assessments and raise critical-infrastructure and cybersecurity concerns; developers and housing groups supported the measure. No votes or final actions were taken in the portion of the hearing provided.

Transcript Highlights:

• We want to make sure that whatever performance funding an agency actually receives gets allocated to
• That whatever performance funding an agency actually receives gets allocated to the RSA for next year
• Category A funding will represent about 93% on average of an agency's RSA allocation for FY27.
• The recommendation that $5.9 million is a percentage increase over the current funding allocation, that
• , but additional funding is not being allocated above the $5.8.

Summary: The committee first adopted revised JBC rules, which staff said were updated to reflect legislation passed in the 2025 session. It then heard a presentation from DFA Secretary Jim Hudson on the governor’s proposed balanced budget for FY27, with no action taken. Hudson said the budget reflects three priorities: limiting state-government growth, continuing investments in education, and advancing income-tax cuts. He highlighted increases for education funding through EFAs, pay-plan costs for Corrections, DPS, and the Attorney General, higher education productivity funding, drug task forces, a Corrections medical contract, the governor’s 1033 initiative, SNAP error-rate reduction efforts, and an additional $100 million set aside for Medicaid sustainability. Committee members questioned the size of the tax cuts, the balance requirement, public education funding, Medicaid trust-fund levels, EFA funding, and the expected impact of new SNAP cost-sharing rules. The Division of Higher Education then presented its productivity-based funding recommendations. Officials said institutions were 2.61% more productive overall, with funding changes driven by a statutory formula that rewards degree production, underserved populations, and high-demand fields. Members asked about declines at UA Little Rock, the formula’s multipliers, the role of the Arkansas Access Act and a new return-on-investment metric, and how two-year colleges are adjusted for size. The committee also reviewed special items and approved two letters: one authorizing 17 net personnel changes across nine institutions, and another adding special language for North Arkansas College’s entry into the University of Arkansas system. The committee then adopted the Higher Education Coordinating Board’s recommendations for all institutions. A lengthy portion of the meeting focused on the University of Arkansas system, especially Fayetteville’s athletics funding and the broader impact of the House/NIL settlement. Chancellor Charles Robinson and system officials explained that the board had waived a longstanding campus transfer and directed the university to provide an additional $6 million to athletics, with some costs likely to be passed through to students but partially offset by existing budget growth. Members debated whether the university should prioritize academics or athletics, how the transfer originated, and whether the athletic changes would affect affordability. The committee also discussed the 1890 extension program at UAPB and the Division of Agriculture’s land-grant funding. UAPB officials said the state match is intended to be one-to-one, that the current recommendation aligns appropriation with actual spending, and that a $2 million set-aside remains available if needed. The Division of Agriculture later clarified that its Smith-Lever extension and Hatch research funds are part of the UA system’s separate budget and that the state matched about $6.2 million in federal extension funding last year. The committee then moved to the Department of Corrections. It approved G1, transferring 51 positions to the secretary’s office to activate a recidivism program, with an estimated cost of about $4 million. Staff then began walking through the department’s FY27 budget, noting an increase of about $8 million for administration and shared services, including a $170,000 sex-offender assessment appropriation moved under Act 723 of 2025 and roughly $6 million more for medical contracts. Questions on the Corrections budget had just begun when the transcript ended.

Transcript Highlights:

• This is the majority of the funding allocated for purposes of major maintenance and capital construction
• And the reason for that is those are recalibrated to be allocated outside of the funding model of block
• And the reason for that is those are recalibrated to be allocated outside of the funding model of block
• So, uh, it does seem inappropriate that we'd be allocating more funds due to a growing virtual component
• And then there's the capital projects that ultimately gets funds allocated from the state.

Keywords: 916, all

Transcript Highlights:

• We adopted this, put out a funds appropriated, so we can put money in there for it instead.
• We maintain the full funding.
• We maintain the full funding.
• over $5 billion of their tax dollars were allocated.
• over $5 billion of their tax dollars were allocated.

Summary: The House Appropriations Subcommittee on Articles 14 and 5 met first and adopted its report on budget recommendations by a 4-0 vote, with three members absent. The chair said the report finalized prior decisions and could not be changed at that stage. Notable additions discussed included increased appropriations for the Office of the Attorney General, DPS driver’s license offices in Hays and Montgomery County, TJJD facilities and programs, Texas Facilities Commission funding for SCIF projects in Lubbock and San Antonio, THC funding for the Juneteenth Museum, an alcohol tourism study, and a TDCJ statewide reentry services pilot program. Members thanked staff and the meeting adjourned after the vote. The Article 3 subcommittee then presented its report for the committee substitute for Senate Bill 1, describing it as a procedural step that incorporated prior discussions, member writers, and changes made with Chairman Bonin. The chair noted that most items had been moved to Article 11 and that rejected riders were duplicates or conflicted with general law. The report was adopted unanimously, 6-0, and the subcommittee adjourned. The Articles 6, 7, and 8 subcommittee followed with its report for Senate Bill 1. During consideration, a member raised a point of order arguing the subcommittee had violated House rules requiring audio and video recording of formal meetings and public availability online. The chair rejected the point of order and proceeded to a roll call vote. After extended debate over the recording issue and the chair’s handling of the point of order, the report was adopted, with the transcript reflecting 6 ayes, 1 nay, and 1 absent. The subcommittee then adjourned.

Transcript Highlights:

• map prior to appropriating out the funds map prior to appropriating out the funds that<00:08:53.160
• "The trust fund is operated similar to an endowment, and a percentage of the value of the fund can be
• Subdivision 17 includes funding carryforwards; there is no additional funding in that section.
• > is<00:46:18.359> being funding is being funding is being appropriated<00:46:20.480>
• this fund.

Keywords: 1183, house

Transcript Highlights:

• Uh, the bill invests our entire budget plus additional funds allocated from our base into the state grant
• <00:01:28.479> allocated budget plus additional funds allocated budget plus additional funds
• existing base funding is appropriated. existing base funding is appropriated.
• c> some<01:38:56.960> dedicated<01:38:57.360> funding funding um some dedicated funding
• legislature to fund. Senator Brit. legislature to fund. Senator Brit.

Keywords: 1187, senate, all

Transcript Highlights:

• GENERAL REVENUE AND STATE TRUST FUND.
• , REVENUE SOURCES, FUNDING ACTIVITIES, AND BASE APPROPRIATION TOTALS BY TRUST FUND.
• THE SLOT ALLOCATION TYPICALLY IS FOLLOWED BY FUNDING FOR THE SERVICES THROUGH THE SLOTS.
• WE ARE VERY GRATEFUL AT APD FOR THE FUNDS ALLOCATED BY THE LEGISLATURE AND ALSO FOR YOUR CONTINUED SUPPORT
• EVEN WANT THE FUNDING ALLOCATED FROM LAST YEAR TO THE MEDICAID PROGRAM THROUGH LIVE HEALTHY FLORIDA'S

Keywords: 999, senate, all

Transcript Highlights:

• Additionally, we fund our other Song-Brown programs. through special funds and one-time general fund
• allocations.
• general fund allocations, existing programs are struggling to sustain residents and risk downsizing
• In 2018, Assembly Bill 1810 allocated $60 million in one-time general fund to HCAI to establish the Health
• Fund, with the remainder being special funds.

Keywords: 988, house, all

Transcript Highlights:

• In addition, as state law provides for the department to adjust the amount of funds allocated to the
• down, state-appropriated funding demand on state education funds.
• due to the state, and facilitate the timely adjustment of state funds allocated to school districts.
• transportation funds in a general revenue fund.
• The funds are not just released. So where are the funds?

Summary: The Senate Appropriations Committee on Pre-K-12 Education met for its first meeting of the 2025 session to hear the Auditor General’s operational audit on 2024-25 school funding accountability challenges, focused largely on the Family Empowerment Scholarship and its interaction with the FEFP. Deputy Auditor General Matthew Tracy described rapid growth in scholarship enrollment, timing mismatches between scholarship payments and public-school funding calculations, delayed membership survey processing, weak cross-check and recoupment procedures, inconsistent handling of parent survey responses, and limited documentation for withholding and returning funds. The audit said these issues contributed to funding inequities, duplicate-payment risks, and an unexpected draw on state education funds, and it recommended separating scholarship funding from the FEFP, aligning application windows with budget timing, strengthening controls and staffing, and creating clearer, documented recoupment and balance-limit processes. Committee members questioned whether current law gives the department and scholarship funding organizations enough authority and whether the system is effectively a pay-and-chase model. Several senators expressed concern about the lack of timely reconciliation, the size of the funds involved, and the absence of clear records showing how money was recovered or withheld. Adam Emerson, executive director of the Office of School Choice, said the department is working more closely with school districts and scholarship funding organizations, including pausing payments when districts identify students still enrolled in public schools, and said the office wants to improve the process. President Gates then previewed legislation he said would address the audit’s findings by funding Family Empowerment Scholarships as a separate FEFP categorical, expanding the Education Stabilization Fund, setting clearer application and acceptance deadlines, moving to monthly payments with eligibility verification before each payment, assigning student IDs for scholarship assistance, lowering SFO management fees, requiring annual audits, and requiring prompt return of audit-related funds. Public comment included a private-school attorney describing losses from unpaid scholarship amounts. Members generally supported the need for reform, with several senators saying the program should be preserved but better structured and more accountable. The committee adjourned after the discussion, with no vote taken on the legislation.

Transcript Highlights:

• funding level in 2008 and 2018. funding level in 2008 and 2018.
• <04:16:57.439> fund of how the heck we're going to fund fund of how the heck we're going to
• adequately fund any of the formulas. adequately fund any of the formulas.
• We're more fairly allocating the funds because there are other towns that have they're in the same situation
• > the<04:52:08.000> funds We're more fairly allocating the funds We're more fairly allocating

Keywords: 1189, house, all

Transcript Highlights:

• to be allocated directly through general funds to the State Police communications line item.
• Is the fund solvent after this allocation as well? Well, this isn't about a fund.
• <02:10:52.560> I'm like allocation or is this funding?
• I'm like allocation or is this funding?
• Fund never spent the entire amount allocated.

Keywords: 928, house, all

Summary: The committee first revisited HB 781, the cell phone bill, after previously retaining it. On reconsideration, members moved to OTP the bill, and it passed unanimously. The committee then moved into the budget tracking packet and adopted an amendment to HB 2 to add the same cell phone policy language, also unanimously, and separately reduced HB 1 by $1 million to match the policy change. Members noted the cell phone language had already been stripped of grant funding language in the House version and that the policy and funding pieces were being aligned across the budget bills. The committee then took up a Department of Education technical amendment to HB 2 on charter school grants, which made timing and administrative changes without altering grant amounts, and adopted it unanimously. Members also discussed but held other education-related items, including adequacy grants, pending broader decisions on overall education funding. Another HB 2 item concerning E-911/state police radio communications prompted a longer discussion about whether E-911 surcharge funds were being used for purposes that should instead be general-funded. After debate over whether to leave the current practice in place or split the funding 50/50 between E-911 and general funds, the committee adopted a joint HB 1/HB 2 change to shift the funding source to a 50/50 split and delete the HB 2 language authorizing the prior use; the motion passed 7-0. The committee also discussed but did not act on several lottery-related provisions, including the video lottery terminal amendment, the increase in maximum ticket price from $30 to $50, and related tax split changes, with members planning to hear from the Lottery Commission on Monday. The meeting ended with the committee beginning review of new amendments in the tracking packet, including a Department of Education request related to Public School Infrastructure Commission grant administration, but no action was taken on that item in the portion provided.

Transcript Highlights:

• So more allocations through the major maintenance funding started occurring this fiscal year, so we can
• Additionally, the lease subtracts out any routine maintenance and utilities funding that is allocated
• Additionally, the lease subtracts out any routine maintenance and utilities funding that is allocated
• Additionally, the lease subtracts out any routine maintenance and utilities funding that is allocated
• Additionally, the lease subtracts out any routine maintenance and utilities funding that is allocated

Keywords: 916, all

Summary: The Select Committee on School Facilities met to satisfy its quarterly statutory requirement and to discuss interim priorities. Staff from LSO reviewed the committee’s duties: monitoring K-12 school facilities statewide, prioritizing needs for the interim, and preparing a budget request due by November 1. They also noted the ongoing litigation related to the Chapter 3, Section 8 exception process and said the committee would move forward with securing a consultant to study that issue, as previously authorized by Management Council. A major topic was school funding formulas, especially how average daily membership (ADM) affects routine and major maintenance funding and how excess square footage is treated. Members revisited an earlier proposal to fund 135% of allowable square footage, which did not advance this session, and discussed whether some schools should instead be funded at a minimum percentage of their actual square footage. Staff explained that some districts have buildings larger than their formula allowance, and that the issue is complicated by older buildings, pools, and other unique facilities. They also noted that recent changes to the major maintenance multiplier increased funding and that some districts are still not fully covered by the formulas. Safety and security funding was another focus. The State Construction Department reported that $10 million was appropriated this year for safety and security upgrades, with some funds expected to go toward vestibules, bollards, and design work, and the rest through a district application process. Officials said the last comprehensive safety assessment was done more than 10 years ago and suggested a new consultant-led study to update priorities, since technology and building conditions have changed. Members also discussed the role of school resource officers and whether the committee should continue leading this work rather than handing it off to the recalibration committee. The committee also examined declining enrollment and excess capacity across the state, citing examples such as Newcastle, Shoshoni, Casper, Campbell County, and Fremont County. Officials said some districts are right-sizing by taking schools offline, while others cannot easily reduce capacity because the buildings are essential to the community. Charter school leasing was raised as a related concern, including the Mills charter school and the fact that the state pays lease costs based on ADM and allowable square footage. No formal votes were taken, but the committee agreed to continue studying these issues, likely including site visits and further data requests during the interim.

Transcript Highlights:

• funding. ...than to note that most of the general fund has just been one-time funding, largely the transfers
• The agency is just other funds, which is federal funds and special funds.
• And so your work in funding the housing incentive fund is making progress.
• And so not only was the $25 million allocated, but pretty much most of the rest of the funding available
• to the oil and gas research fund was also allocated.

Summary: The committee met as the Regulatory Division budget section and first reviewed the North Dakota Housing Finance Agency’s budget and program update. Legislative Council outlined the agency’s base budget and historical funding, and Housing Finance staff reported on homeownership lending, housing incentive fund (HIF) awards, and homeless grant spending. Agency officials said the five new FTEs approved last session are mostly filled, with one homeless program manager still open. They described strong demand for HIF, noting that September 2025 multifamily requests exceeded $73 million while only $25 million was available, and that single-family and homeless programs are also heavily subscribed. Members discussed the agency’s local loan servicing workload, interest-rate benefits, down payment assistance, and the need to coordinate housing discussions with Commerce and site-preparation efforts. The agency asked that HIF, single-family, and homeless funding be maintained or increased, and committee members emphasized accountability and statewide access for homeless prevention and rapid rehousing funds. The Department of Mineral Resources then presented its budget and agency initiatives. Staff reported that the department is on track financially, that most of the five new reclamation-related FTEs are hired, and that litigation costs tied to oil and gas matters are expected to continue appearing late in the biennium. The director reviewed ongoing modernization and organizational efforts, including the North Star IT project, succession planning, training, and rulemaking for oil and gas and critical minerals. Members asked about longer laterals, spacing, and production trends; the department said operators are increasingly drilling three-, four-, and even an initial five-mile lateral, which is helping keep North Dakota oil production relatively flat even as rig counts ease. The director also discussed oil price volatility tied to Middle East conflict, hedging practices among producers, gas capture remaining around 95%, and the likelihood that current production levels will stay near flat unless prices or geopolitical conditions change significantly. An update on the enhanced oil recovery grant program followed. The Industrial Commission’s grant administrator said the full $25 million appropriation was allocated in the fall to six projects, and because the oil and gas research fund also had carryover and biennial tax revenue, total awards reached about $45.1 million. The projects are expected to run two to four years, with meaningful results not likely until mid-2026 or later. Members questioned whether the public would have access to the research findings and how accountability would be maintained; staff said the grants are reimbursement-based, require regular status reports, and will culminate in public final reports. The committee also heard from the North Dakota Pipeline Authority, which updated members on natural gas transmission projects, especially WBI Energy’s proposed Bakken East pipeline. The authority said the project has advanced through a nonbinding and then binding open season, with WBI now securing survey permissions and moving through regulatory and landowner processes, while other related gas transmission projects near Minot and Epping are also in development.