Transcript Highlights:

• <00:14:31.560> of<00:14:31.839> practice<00:14:32.519> which<00:14:32.680>
• > as<00:14:42.040> well<00:14:42.399> because<00:14:42.759> AI<00:14:43.160>
• AI is a fast<00:14:44.240> changing<00:14:44.759> field<00:14:45.360> and<00:14
• what<00:14:52.079> um<00:14:52.560> sounds<00:14:53.079> really<00:14:53.399
• > I<00:14:58.839> did<00:14:59.079> did<00:14:59.240> want<00:14:59.360>

Keywords: 912, senate, all

Summary: The hearing covered Senate Bill 426, which would create an early learning apprenticeship grant program. Testimony was overwhelmingly supportive from the City and County of Honolulu, the Department of Human Services, the Executive Office on Early Learning, the University of Hawaiʻi College of Education, the Attorney General’s office, the Early Childhood Action Strategy, Hawaii Children’s Action Network, the University of Hawaiʻi’s early childhood educator project, and a Zoom testifier who described the importance of investing in high-quality early childhood education. Committee discussion focused on the program’s estimated cost, with figures of about $14.5 million in 2025-26 and $15 million in 2026-27, and on whether the program would require ongoing base-budget funding. The committee recommended technical, non-substantive amendments, including a statewide-concern amendment and a deferred effective date, and both committees adopted the recommendation by vote. The committees then heard Senate Bill 1622, which would appropriate funds to establish the Aloha Intelligence Institute within the University of Hawaiʻi to support statewide artificial intelligence initiatives. University representatives described the proposal as the product of campus-wide input and outlined five pillars: governance and policy, outreach and engagement, research and development, workforce development, and AI tools for key sectors such as health care, creative industries, manufacturing, data science, astronomy, and climate change. Members questioned staffing distribution, tuition, enrollment timing, housing, campus placement, and whether positions would be permanent or temporary; the university said it planned about 10 positions across campuses, would start with internal resources, and would house the effort under the Vice President for Research and Innovation initially. The committees recommended an SD1 with the appropriation amounts blanked out, a July 31, 2050 effective date, and committee-report language on housing and West Oʻahu, and the higher education and labor/technology committees adopted the amended recommendation. Finally, the Higher Education Committee took up Senate Bill 1488, a housekeeping measure to consolidate existing University of Hawaiʻi conference center statutes into a single revolving fund structure, and Senate Bill 636, which would fund retention and internship coordinator positions and broader enrollment management efforts at the University of Hawaiʻi at Hilo. SB 1488 drew university support and no opposition. SB 636 prompted substantial questioning about Hilo’s declining enrollment, current retention rate of 72.8 percent, and the scope of the request, which includes not only two named positions but also about $432,000 for enrollment management initiatives such as data analysis, IT support, and other student services. Hilo said it is targeting 3 to 5 percent annual enrollment growth and that the positions would support recruitment, retention, internships, and data-driven enrollment strategy. The committee pressed for a clearer broader plan, but the discussion in the transcript ended before a final vote on SB 636 was shown.

Transcript Highlights:

• > they<00:14:03.680> might<00:14:03.839> be<00:14:04.079> at<00:14:04.480
• it to their own<00:14:09.440> memory<00:14:10.000> and<00:14:10.320> also<00:14
• <00:14:26.160> Um,<00:14:26.959> one<00:14:27.199> thing<00:14:27.279> I<
• and<00:14:32.639> I'm<00:14:32.800> I'm<00:14:33.199> not<00:14:33.360>
• :14:35.680> going<00:14:35.839> to<00:14:36.079> work<00:14:36.560> as<00

Keywords: 1187, senate, all

Transcript Highlights:

• :00.720> of<00:14:00.880> our<00:14:01.040> need<00:14:01.199> for<00:14:
• So<00:14:02.000> it's<00:14:02.240> a<00:14:02.399> huge<00:14:02.560> chunk<
• Um<00:14:04.720> and<00:14:04.959> again<00:14:05.199> you<00:14:05.360> know
• we<00:14:07.040> are<00:14:07.120> one<00:14:07.199> of<00:14:07.279>
• :14:08.800> industries<00:14:09.199> in<00:14:09.440> the<00:14:09.600> in

Keywords: 910, house, all

Transcript Highlights:

• that<00:14:31.519> we<00:14:32.079> come<00:14:32.320> up<00:14:32.560><
• So, I'm<00:14:35.680> really<00:14:35.920> excited<00:14:36.320> about<00:14:36.639
• Uh if elected<00:14:39.600> chair,<00:14:40.240> I<00:14:40.480> am<00:14:40.720
• <00:14:42.480> you<00:14:43.360> uh<00:14:43.519> and<00:14:43.839> to
• c> amount<00:14:53.360> of<00:14:53.600> research<00:14:53.920> in<00:14:54.160

Keywords: 919, house, all

Summary: The meeting was the first session of the Minnesota Department of Transportation’s Electricity as a Vehicle Fuel Working Group. Commissioner Nancy Doenberger opened with introductions from members representing state agencies, legislators, utilities, local governments, industry groups, advocacy organizations, and others. The group then elected its leadership: Senator Anne Johnson Stewart was nominated and unanimously elected chair, and Representative Steve Elkins was nominated and unanimously elected vice chair. Senator Johnson Stewart said she would ensure all viewpoints are heard and asked MnDOT to continue running the meeting for practical reasons. Austin Turman of the Legislative Coordinating Commission reviewed the authorizing legislation. He explained that the working group must analyze electricity used as vehicle fuel infrastructure opportunities and barriers, develop a roadmap with policy and funding recommendations for sustainable transportation funding consistent with the Minnesota Constitution, and study other states’ approaches to equitable fuel assessment methods for electric vehicles. The group’s report is due February 13 and will go to the governor and legislative transportation leaders. Turman also briefly reviewed open meeting law requirements, noting the group must operate publicly when a quorum discusses official business, though public comment is not required. Members then discussed the purpose of the group and the need to find a fair replacement or supplement for declining gas tax revenue as EVs increase. Senator Johnson Stewart emphasized balancing system funding needs with user-based fairness, including differences in vehicle weight and road use. Representative Murphy stressed the need to consider rural Minnesota, taxpayer impacts, and current science, including climate and CO2 issues. Drive Electric Minnesota said EV drivers should pay their fair share and not be overburdened, while the Department of Revenue said it wants to administer the new EV charging-station tax fairly. A trucking representative highlighted that passenger vehicles and freight vehicles have very different operating and charging needs, suggesting the group consider those differences in any fee structure.

Transcript Highlights:

• Uh<00:14:00.240> Madam<00:14:00.600> Chair,<00:14:00.920> members<00:14:01.240><
• ,<00:14:02.160> um<00:14:02.360> so<00:14:02.600> tax<00:14:02.960> year<
• Um<00:14:10.480> I<00:14:10.520> don't<00:14:10.680> want<00:14:10.800> to
• > don't<00:14:12.120> remember<00:14:12.360> off<00:14:12.440> the<00:14:
• 14:21.800> it<00:14:22.200> uh<00:14:22.320> when<00:14:22.440> it<00:14:

Keywords: 1187, senate, all

Transcript Highlights:

• <00:14:01.680> So,<00:14:01.839> we<00:14:02.000> need<00:14:02.160> to
• voted on the<00:14:09.839> prevailing<00:14:10.399> side<00:14:10.639> to<00:14
• <00:14:22.720> So,<00:14:23.199> uh<00:14:23.360> we<00:14:23.760> have
• 00:14:52.639> to<00:14:52.880> the<00:14:53.040> House<00:14:53.279> floor.
• <00:14:58.720> What<00:14:58.880> did<00:14:59.040> I<00:14:59.279> say?

Keywords: 1187, senate, all

Transcript Highlights:

• ><00:14:02.480> knows<00:14:02.959> she<00:14:03.199> spent<00:14:03.440> a
• <00:14:07.360> Uh<00:14:08.320> um<00:14:09.600> so<00:14:09.839> we<
• <00:14:17.199> the<00:14:17.519> most<00:14:18.959> sort<00:14:19.279> of
• rewarding<00:14:21.360> part<00:14:21.600> of<00:14:21.839> my<00:14:22.160
• So, uh that's<00:14:33.360> something<00:14:33.600> that<00:14:33.680> we<00:14:

Keywords: 1189, house, all

Transcript Highlights:

• ><01:14:11.199> look<01:14:11.360> at<01:14:12.080> some<01:14:12.320> kind
• <01:14:16.560> Um,<01:14:16.880> I<01:14:17.199> do<01:14:17.360> feel
• 14:27.040> And<01:14:27.199> so<01:14:27.360> there<01:14:27.520> is<01:14
• <01:14:28.960> And<01:14:29.199> it's<01:14:29.360> better<01:14:29.600>
• .<01:14:35.440> But<01:14:35.679> we<01:14:36.000> want<01:14:36.080> to<

Keywords: 958, all

Summary: The committee met with a quorum, approved the prior meeting minutes, and then heard testimony on the use of artificial intelligence in therapy and mental health settings. Representative Lisa Willner and Brenda Rosen of NASW Kentucky argued for “guard rails” on AI chatbots so they cannot present themselves as licensed therapists or replace school counselors, psychologists, or social workers. They said AI can support licensed professionals, but warned that chatbots cannot reliably recognize nonverbal cues, escalate crises, or provide accountable care, and they cited examples of harmful chatbot interactions, including a suicide case and a chatbot telling a user to “Please die.” The witnesses also raised concerns about data privacy, commercialization of sensitive mental health conversations, and the use of personal clinical content to train AI models. They said minors should require parental consent and suggested transparency about how a chatbot is trained and who created it. They distinguished between unvetted consumer chatbots and AI tools that have been scientifically validated or approved as digital therapeutics, noting that some evidence-based tools may be useful for specific conditions such as depression, anxiety, or eating disorders. Committee members asked whether regulation should be handled by the legislature or by professional boards, and whether a multi-state model would be preferable to 50 different state approaches. The witnesses generally favored expert-led standards and said a board or panel of experts could review and approve mental health chatbots, but members cautioned that boards can become too restrictive and that legislation should preserve flexibility and avoid discouraging children from seeking help. The discussion ended with a request for the witnesses to restate their proposed policy ideas, including privacy protections, bans on commercialization, limits on training AI with clinical content, transparency requirements, and informed consent.

Transcript Highlights:

• ><00:14:02.880> want<00:14:02.959> to<00:14:03.120> note<00:14:03.360> that
• > so<00:14:14.000> now<00:14:14.120> we<00:14:14.240> can<00:14:14.360>
• 14:17.880> we<00:14:18.079> took<00:14:18.440> all<00:14:18.600> of<00:14
• if the responses<00:14:28.800> fell<00:14:29.320> right<00:14:30.160> um<00:14:
• > and<00:14:31.920> then<00:14:32.120> we<00:14:32.279> went<00:14:32.639

Keywords: 912, senate, all

Transcript Highlights:

• <00:14:03.680> Um,<00:14:04.079> but<00:14:04.320> I<00:14:04.480> will
• /c><00:14:06.160> this<00:14:06.399> is<00:14:06.560> adding<00:14:06.880> to
• its<00:14:08.079> first<00:14:09.040> line<00:14:09.519> at<00:14:09.839
• and<00:14:18.880> it's<00:14:19.120> a<00:14:19.360> class<00:14:19.680>
• > So,<00:14:21.440> I<00:14:21.760> I<00:14:22.160> agree<00:14:22.480>

Keywords: 1191, senate, all

Transcript Highlights:

• This issue was initially flagged in October of 2024 by the California State Auditor.
• And we are proposing that this process be implemented no sooner... ...than October 1, 2027, so building
• And we are proposing that this process be implemented no sooner than October 1, 2027, so building in
• So in statute, statute outlines that Cal OES sets the fee by October 1st of each year.
• Our text and chat team is currently available 14 hours a day.

Summary: The subcommittee heard presentations from the Department of State Hospitals (DSH), the Commission for Behavioral Health, and the Department of Health Care Services (DHCS) on budget proposals and implementation updates. DSH outlined its proposed 2026-27 budget, including funding for patient operating expenses, IST solutions savings, conditional release program costs, LPS bed allocation changes, electrical infrastructure projects at Napa and Patton, SB 380 transitional housing feasibility work, and expanded dental services at Metropolitan and Patton. DSH also reported that it has met court-ordered IST treatment benchmarks in the Stiavedi v. Clinton case, with average time to initiate treatment down to about five days and pending placements reduced to roughly 250, while noting that Proposition 36 could increase referrals and SB 1323 may divert some individuals earlier into community-based treatment. Members asked about rising outside hospitalization costs, Medicare enrollment, the timing and structure of capital projects, and whether IST solution funds are being fully used; DSH said the savings reflect slower-than-expected ramp-up of community programs and that the Central California FACT replacement program is still on track for January 2027 activation. The Commission for Behavioral Health described its role under the Behavioral Health Services Act (BHSA), including data, evaluation, grantmaking, technical assistance, and transparency work. It highlighted the new statewide Innovation Partnership Fund, a five-year, $20 million-per-year program with small and large grant categories; the first RFA drew strong interest, with more than 400 questions and over 1,000 bidders’ conference participants. The Commission also discussed a proposed extension to spend down about $4.1 million remaining for the Alcove Youth Drop-in Center grants so sites can finish implementation and Stanford can complete the final evaluation. Members asked about grant duration, whether projects can be renewed, what qualifies as innovation, and whether the fund could support service delivery rather than awareness campaigns or training; the Commission said awards are expected to be three-year contracts and that proposals must be new or meaningfully expanded approaches that support BHSA priority populations. DHCS reviewed major behavioral health changes under CalAIM and BH Connect, including peer support, mobile crisis, contingency management, traditional health care practices for tribal members, updated specialty mental health access criteria, and new substance use treatment standards based on ASAM’s fourth edition. DHCS reported strong contingency management results, with more than 13,000 members served and 95% testing negative for stimulant use during treatment, and said 21 Indian health care providers have been approved to offer traditional health care practices. It also described BH Connect initiatives such as the $1.9 billion access reform and outcomes incentive program, workforce investments, evidence-based practice expansion, IMD participation by four counties, and transitional rent services. On BHSA implementation, DHCS said it is not tracking individual county contract cuts but is monitoring county plans and statewide outcomes, while stakeholders raised concerns about local prevention and service gaps. DHCS also outlined its H.R. 1 implementation strategy, including outreach, streamlined renewals, exemptions for disabled, substance use, and medically frail individuals, and proposed clinic navigator and outreach funding; it said it has not yet produced a focused estimate of H.R. 1 impacts on behavioral health populations. The discussion ended with DHCS noting that B-CHIP bond funding has supported 437 infrastructure projects, creating 546 new or expanded facilities and more than 9,500 residential beds across the state.

Transcript Highlights:

• > I<00:14:06.639> think<00:14:06.959> that<00:14:07.920> how<00:14:08.880
• > it<00:14:15.079> doesn't<00:14:16.079> the<00:14:16.399> passport<00:14
• say, until<00:14:20.000> you<00:14:20.240> are<00:14:20.480> you<00:14:20.720><
• in,<00:14:24.240> you<00:14:24.480> know,<00:14:24.639> works<00:14:24.959>
• 00:14:26.480> they<00:14:26.959> take<00:14:27.199> a<00:14:27.440> a the

Keywords: 1191, senate, all

Transcript Highlights:

• The 14 million that you see LFC above in other transfers is revenue that the LFC put in from the land
• 10,000, a little over 10,000 children whose care we're paying for now that we weren't paying for in October
• Chairman, is up just through October, right? The 103 million was over last year.
• Through October, right? The 103 million was over last year. Or Kelly, you're shaking your head.
• then they would need another 114 million in the next fiscal year and then they're projecting another 14

Bills: SB2

Keywords: SB 2, State Highway Project Bonds, highway funding, transportation bonds, state road fund, motor vehicle fees, vehicle registration fees, electric vehicle fee, EV surcharge, plug-in hybrid fee, weight distance tax, road construction, infrastructure financing, Department of Transportation, State Transportation Commission, bonding authority, county road funds, municipal road funds, transportation improvement program, state highways

Transcript Highlights:

• group,' and there's kind of an issue where, you know, politicization of it and saying, well... [00:14
• I think every scenario that you're laying out... [00:14:35] Thank you, Senator.
• the reason I put this bill on the agenda, is the things that I have seen around the country since October
• 7, 2023, Around the country since October 7, 2023, when a whole lot of people who said they cared about
• legislation will preserve the Section 282.318 exemptions from appeal for one additional year through October

Summary: The committee first confirmed Heather L. Turnbull to the Florida Commission on Community Service, with the motion adopted and the confirmation recommended favorably. Members then took up SPB 7022, which sets Florida Retirement System employer contribution rates beginning July 1, 2025, updates rates to address unfunded actuarial liability, and allows certain elected officers to elect a DROP accumulation; a technical title amendment was adopted, the bill was submitted as a committee bill, and it was reported favorably as a committee bill. The committee then heard extensive debate and public testimony on SB 1710, which would restrict diversity, equity, and inclusion-related policies, trainings, and activities in state agencies, state-funded contractors and grantees, and medical institutions of higher education. Sponsor Senator DiCeglie said the bill is intended to prevent state agencies and contractors from using state funds for DEI programs and to limit state agencies from adopting DEI-related official positions; he also said the medical-school portion would likely be amended out later. Senator Polsky and others questioned the bill’s breadth and how it would affect health-related grants, public universities, historically Black institutions, recruitment, and contractor training. Public testimony was overwhelmingly opposed, with speakers arguing the bill would harm health care, education, access, and inclusion; a few supporters said DEI is ideological, can undermine merit, and should not be used by state agencies or publicly funded institutions. After debate, Senator Polsky argued the bill was confusing, overbroad, and harmful to serving diverse communities, while Senator Arrington said it was an overreach into private business and could have significant fiscal impacts. Chair Fine closed by saying DEI is political ideology and that the bill is meant to ensure government focuses on talent rather than identity. SB 1710 was then reported favorably on a roll call vote, with Senator Arrington voting no and the remaining members voting yes. The committee then began SB 1678, relating to entities that boycott Israel, and heard the sponsor’s explanation of a delete-all amendment that would expand and clarify state restrictions on dealings with entities engaged in boycotts of Israel, including certain nonprofits, foreign educational institutions, and grants; the amendment was adopted, and the sponsor and a witness began answering questions when the transcript cuts off.

Transcript Highlights:

• <00:14:31.920> And<00:14:32.079> then<00:14:32.240> as<00:14:32.399> you<
• <00:14:36.079> Uh,<00:14:36.399> and<00:14:36.639> then<00:14:36.959> it<
• So, they want<00:14:40.399> to<00:14:40.800> make<00:14:40.959> it<00:14:41.279>
• <00:14:56.560> That<00:14:56.720> is<00:14:56.880> north<00:14:57.120> to
• <00:14:58.560> So<00:14:58.720> then<00:14:59.040> I<00:14:59.279> assume

Keywords: 1187, senate, all

Transcript Highlights:

• <00:14:14.480> So<00:14:14.720> they<00:14:14.959> have<00:14:15.040> a
• The<00:14:18.240> state<00:14:18.560> provides<00:14:18.959> grant<00:14:19.199>
• But<00:14:24.720> again,<00:14:25.040> they<00:14:25.279> have<00:14:25.360>
• > So<00:14:28.480> we<00:14:28.720> ask<00:14:28.959> them<00:14:29.120><
• 14:38.720> home<00:14:39.040> goes<00:14:39.279> up<00:14:39.360> and the

Keywords: Appropriations - Room 210; 29 January, 2026: 8:00 AM, 925, all

Summary: The Department of Mental Health presented its FY27 budget request and described its statewide responsibilities, including more than 600 grants totaling about $140 million, 11 community mental health centers, and state-operated programs for mental health, substance use, and intellectual/developmental disabilities. The request included $291.2 million in general funds, about $33.4 million above the current year, plus spending authority tied to ID regional programs and the IDD waiver. Major components included funding to enroll 250 additional people in the IDD home- and community-based waiver, a projected waiver rate increase, and added support for state-operated 24/7 programs facing staffing and operational shortfalls. The agency also asked to continue selected ARPA-funded services before those dollars expire, including 988 call center support, peer respite sites, court liaison positions, intensive community services for children and youth, and adolescent offender programs. Other requests covered salary adjustments and longevity increases for hard-to-fill positions, electronic health record support, IT security upgrades, a Jackson County crisis stabilization unit expansion from 8 to 16 beds, capital needs such as generator and boiler/chiller replacements, inflation-related increases for community mental health center grants, and restoration of general funds under a Joint Legislative Budget Committee recommendation. Officials emphasized that community-based care now accounts for 58% of funding and that the goal is to keep people out of institutions unless they need the highest level of care. Committee members asked about ARPA balances, forensic referrals, Jackson County’s request, and county support for community mental health centers. The department said about $25 million in ARPA funds remained and should be spent by September 30, with some delays due to reimbursement revisions. On forensic services, officials reported the new 81-bed maximum-security unit at State Hospital has cut the wait list roughly in half, but admission orders are up 51%, and some referrals may be unnecessary or used to delay proceedings. Members also discussed county contributions to community mental health centers, which the department said total about $9–10 million statewide, with most counties now meeting their obligations and only a few using small in-kind contributions.

Transcript Highlights:

• <00:14:06.240> I<00:14:06.480> need<00:14:06.560> to<00:14:06.800> learn<
• <00:14:08.560> So<00:14:08.720> in<00:14:08.959> House<00:14:09.120> Bill
• 00:14:11.199> the<00:14:11.440> structure<00:14:11.760> is<00:14:11.920> set<
• :14:36.720> So<00:14:37.040> when<00:14:37.920> projects<00:14:38.480> come
• So every<00:14:53.120> uh<00:14:53.279> they<00:14:53.600> they<00:14:53.920>

Keywords: Meeting Start 00:00 Attendance Roll Call 00:04 Approval of Minutes 00:36 KOAP Report 00:51, 958, all

Summary: The committee met with a quorum, approved the June 12 minutes, and then received a presentation from Brandon Reid and Bill McCloskkey of the Agricultural Development Board on the June report and the 25th anniversary of the Agricultural Development Fund. They described a joint anniversary meeting held at the Kentucky Historical Society, thanked staff, and noted that the board presented members with a token of appreciation. They also reported a clean annual audit, with the audit report to be shared more fully at a later meeting. The presenters reviewed June activity and funding decisions, saying the development board approved about $3.3 million and the finance board about $5 million in loans. They highlighted program activity such as advisory council meetings, site visits, project reports, and county comprehensive plans. Specific projects discussed included the Food Chain project, which sought support for equipment and improvements to expand Kentucky product marketing; Miller Rockbridge Farms LLC, which sought county support for a barn for an education program; and Thompson Family Farm LLC, which sought funding for a livestock buying station. The board approved reduced or county-only funding in some cases, including $45,643 for the Food Chain project and county money for the farm projects. Members asked about the meaning and purpose of the county comprehensive plans and how counties use them to guide funding decisions. The presenters explained that House Bill 611 created a structure in which each county council develops a comprehensive plan, updated on a five-year cycle, to prioritize local agricultural investments and evaluate applications. They said county councils work with extension agents and the Agricultural Development Office, and that staff attend meetings, provide training, and help new agents and council members understand the program. Members emphasized that the planning process helps ensure funds are targeted to local needs and supports diversification of agriculture beyond tobacco.

Transcript Highlights:

• <00:14:05.800> that<00:14:06.000> college<00:14:06.279> is<00:14:06.440>
• :14:09.880> want<00:14:10.000> to<00:14:10.160> try<00:14:11.040> new<00:
• ><00:14:20.240> use<00:14:20.519> opioids<00:14:21.120> they're<00:14:21.279>
• to me<00:14:31.920> that<00:14:32.160> while<00:14:32.360> our<00:14:32.560>
• <00:14:39.639> students<00:14:40.199> still<00:14:40.519> choosing<00:14:40.880>

Keywords: 1187, senate, all

Transcript Highlights:

• of its findings to the governor and the legislature, and the bill repeals the study committee on October
• with stakeholders that we were contemplating this legislation at the beginning of our process in October
• Our stakeholders want more of the money that Parks has, the $14 million, to be for mitigation.
• Our stakeholders want more of the money that Parks has, the $14 million to be for mitigation.
• We've got some new things that's been in place. 14 million to be for mitigation.

Bills: SB1041, SB1363, SB1418, SB1419, SB1445, SB1447, SB1488, SB1519, SB1523, SB1560, SB1580

Keywords: electronic monitoring, nursing care, assisted living, resident rights, privacy, consent, surveillance, marijuana, rural opportunity, dispensary, economic development, licensing, social equity, unserved communities, Arizona, small modular reactors, energy regulation, environmental compatibility, utility construction, agricultural use

Summary: The committee took up several appropriations and policy bills, beginning with SB 1488, which would provide $600,000 for a workforce development study on coal-impacted communities in northern Arizona, including areas affected by the closure of the Navajo Generating Station. The sponsor and supporters said the study is intended to help communities transition economically, diversify, and support new jobs; the bill received a do-pass recommendation on a 7-0 vote. SB 1523, appropriating $340,000 to the Navajo Nation for the Ganado waterline pipeline project, was also advanced after testimony that the project would bring clean drinking water to about 235 homes and that the remaining funding gap had been reduced to the requested amount; it passed 7-0 with one member not voting. The committee then approved SB 1041, which would appropriate $500,000 to the Arizona Trail Fund. Supporters described the Arizona Trail as a statewide recreational and cultural asset that needs maintenance and continued support, and the bill received a do-pass recommendation on a 7-0 vote. SB 1445, which would allow smaller cities and towns to use approved on-site bacteriological testing equipment and limit how often ADEQ may require sampling, drew concern from one member about whether the language could be read as restricting sampling during discharge events, but supporters said it would save small towns money; it passed 5-3. Members also advanced SB 1580, a $2.545 million appropriation for fire incident management software and hardware for fire and law enforcement agencies. Fire officials said the platform would improve accountability, information sharing, drone integration, and interoperability during incidents; the bill passed 5-3. SB 1363, which would create additional rural dispensary licensing opportunities for underserved areas, drew support from rural advocates and opposition from the dispensary industry over the number of licenses and transferability language; it passed 8-0. SB 1418, which would streamline siting for small modular nuclear reactors in certain counties, was supported by proponents who argued it would help Arizona meet future energy demand and opposed by counties and environmental groups concerned about local zoning, public review, and waste; it passed 5-3. Finally, SB 1419, a rooftop solar consumer-protection bill requiring added disclosures and inspections, was supported by county officials and some consumer advocates but opposed by solar industry representatives and environmental groups who said it could discourage rooftop solar and restrict speech; it passed 6-2. The committee then began hearing SB 1447, which would extend the groundwater withdrawal fee moratorium and related fund deadlines for Pinal County water projects, with supporters saying the extension is needed to continue well rehabilitation and infrastructure work after Colorado River and CAP-related cuts.

Transcript Highlights:

• Oakland, leading into this first interim, we had 14 consecutive qualified certifications, and at first
• We've been experiencing declines in enrollment for the better part of 14, 15 years.
• Muratsuchi in the October joint oversight hearing on LCFF, right?
• Mersucci in the October joint oversight hearing on LCFF, right?
• And I think I was... the October joint oversight hearing on LCFF, right?

Summary: The Assembly Budget Subcommittee on Education Finance met for its annual Proposition 98 overview, with Chair Alvarez outlining the committee’s focus on K-12 funding, student outcomes, and use of one-time funds. Superintendent Tony Thurmond gave an update on education issues, including wildfire recovery support for affected school communities, ongoing concerns about federal threats to education funding and immigration enforcement, progress on literacy and math, dual-language immersion, educator housing, and support for dual enrollment. Members broadly expressed support for these priorities, while also raising concerns about implementation, funding stability, and the need for schools to remain safe places for students. The committee then reviewed the Governor’s Proposition 98 proposal. The Department of Finance said the 2025-26 Proposition 98 guarantee is projected at $118.9 billion, with higher revenues and TK-related rebenching driving the increase. The LAO said the budget adds about $7.5 billion over two years and discussed the volatility of the guarantee, especially in 2024-25, when changes in revenue could have an outsized effect on school funding. Members questioned the proposed $1.6 billion delayed settle-up payment, the legal basis for delaying it, and the impact of possible federal funding freezes. The LAO presented alternatives such as a reserve deposit or delayed disbursement, while Finance said the proposal is intended to manage uncertainty. Members also raised concerns that ethnic studies implementation was not funded in the January budget, and Finance said the administration was not proposing funding for it. The committee next heard on the Proposition 98 rainy day fund and education deferrals. Finance said the reserve would receive a mandatory deposit of about $1.2 billion in 2024-25 and a discretionary deposit of $376 million in 2025-26, leaving a balance of about $1.5 billion. The LAO supported rebuilding the reserve as a way to manage volatility. On deferrals, Finance described the Governor’s plan to eliminate remaining deferrals by 2025-26, and the LAO said paying them off improves cash flow and budget resilience. Members generally supported eliminating deferrals and rebuilding reserves, though some asked about acting earlier if revenues allow. The committee also reviewed the proposed $1.8 billion student support and professional development block grant; Finance said it would fund professional development, recruitment and retention, and dual enrollment, while the LAO recommended clearer language on local discretion and use for one-time costs. Members were divided, with some supporting flexibility and others warning that one-time block grants can create instability and confusion for districts.