Transcript Highlights:

• </c> fund uh so uh because of the expansion fund uh so uh because of the expansion there<00:15:07.759
• First, if you look at legal services, expansions are $124 million, 58% of the expansion.
• The expansion is $73.
• It's close: it's a $32 cut to a $31 expansion.
• 124 million 58% of the expansions 124 million 58% of the expansion<00:19:59.559><c> so</c><00:19:59.840

Summary: The committee took up House File 2437, the governor’s proposed tax bill, and first adopted the A25-Z42 amendment to put the bill in the desired shape. Commissioner Paul Marquardt of the Department of Revenue then presented the bill as part of Governor Walz and Lieutenant Governor Flanagan’s budget, describing it as a response to budget pressures that would make the tax system more fair and stable while supporting economic development and jobs. Marquardt walked through the bill’s major provisions. These included sustainable aviation fuel policy, repeal of K-12 education credit assignment, elimination of the political contribution refund, expansion of the research and development credit, short-line railroad infrastructure modernization, changes to the state airport fund levy, replacement of attachments and appearances with distribution systems, a narrow personal property tax exception for low-income housing tenants, reduced aquatic invasive species aid, and a 34% reduction in PILT payments. He then focused on the sales tax article, saying it would lower the statewide rate by 0.75% while expanding the base to selected professional services such as accounting, banking, brokerage, and legal services, with business-to-business transactions exempt. He said the proposal would be effective for sales and purchases after September 30, 2025, and estimated a first-year rate-cut impact of about $99 million versus $215 million from the service expansion, while arguing that most households would see a net tax cut. He also noted other changes such as landlord penalty adjustments, a 30% reduction in sustainable aviation fuel incentive payments, repeal of local government cannabis aid, and repeal of the tax filing modernization account. Public testimony began with Kyle Playford of the Financial Planning Association of Minnesota, who strongly opposed the proposed sales tax on professional services, especially financial planning. He argued that financial planning is an essential service for retirement, investment, and long-term financial security, and said the tax would raise costs for consumers, reduce access for middle-class families, small business owners, and retirees, and put Minnesota firms at a competitive disadvantage. The chair then indicated that additional public testimony would continue before member questions.

Transcript Highlights:

• They require infrastructure, dedicated faculty, coordination, and a commitment to training physicians
• for our most complex infrastructure for our most complex patients. patients. patients.
• The infrastructure and personnel is not prepared or in place for this.
• ,</c><01:08:25.759><c> not</c> statewide healthcare infrastructure, not statewide healthcare infrastructure
• Uh, that is, you said that you're planning on $250 million of potential for expansion.

Bills: HF4841 , HF4234 , HF3697

Committee: House Taxes

Transcript Highlights:

• a new courthouse, and they were able to deliver that on schedule and under budget, as well as an expansion
• ... ...the folks with Panasonic that they could deliver that infrastructure in time, and progressive
• So a lot of the infrastructure is there between the water and the sewer and whatnot.
• So a lot of the infrastructure is there between the water and the sewer and whatnot.
• So a lot of the infrastructure is there between the water and the sewer and whatnot.

Committees: House Economic Development , House Joint Committee on Rural Economic Development

Transcript Highlights:

• </c> is an ex it is not an expansion is an ex it is not an expansion uh<00:48:09.839><c> but</c><00:48
• We have a lot of infrastructure, water infrastructure, dams, diversion, irrigation, all kinds of water
• We have a lot of infrastructure, water infrastructure, dams, diversion, irrigation, all kinds of water
• </c> disappears due to aging infrastructure. disappears due to aging infrastructure.
• But one of the 911 infrastructure.

Transcript Highlights:

• Strengthening protections for these critical infrastructure workers benefits all Florida residents, and
• Bill 1574, a bill to be entitled an act relating to energy infrastructure investment.
• Members, Senate Bill 1422 talks about operation of drones over critical infrastructure and facilities
• I'm proud to say that that expansion was already signed into law this session.
• I'm proud to say that that expansion was already signed into law this session.

Summary: The Senate convened with opening prayer, the Pledge of Allegiance, and several recognitions, including guests from Miami Northwestern Senior High School, Clay County, and others. Senators also observed a moment of silence for Pope Francis. After routine announcements, the chamber moved to the special order calendar and took up a long series of bills, often substituting House companions for Senate bills before final passage. Among the measures approved were bills creating an expedited DNA testing grant program for local law enforcement, adding aggravating factors in capital cases involving gatherings for religious, school, or government activities, requiring state health coverage for fertility preservation services for cancer patients, authorizing indemnification for commuter rail providers, prohibiting abandonment of migrant vessels in Florida waters, and creating new specialty license plates. The Senate also passed bills on Alzheimer’s awareness, relocating the Council on the Social Status of Black Men and Boys to Florida Memorial University, charter schools, sex offender registration, utility worker protections, juvenile justice, student mental health reporting, foster home licensure transfers, water access facilities, Florida Virtual School, school readiness, sexual images involving children, tampering with electronic monitoring devices, certified recovery residences, the FSU Election Law Center, the Office of Faith and Community, and bonuses for county property appraiser employees. Several other bills were temporarily postponed, including measures on social media use by minors, veterans’ nursing homes, Parkinson’s disease, mental health and substance use disorders, education, educator preparation, officers injured in the line of duty, school social workers, and Brownfields. Debate was especially extensive on the Office of Faith and Community bill, where an amendment to bar political activity by office staff was offered but failed 13-23 after arguments over election-related communications and the scope of existing law. The certified recovery residences bill also drew notable debate, with supporters emphasizing housing as essential to recovery and opponents raising concerns about implementation and local control. Most other bills passed with little or no opposition, though a few drew dissenting votes, including the capital aggravating factors bill, charter schools, and the Office of Faith and Community measure.

Transcript Highlights:

• Strengthening protections for these critical infrastructure workers benefits all Florida residents, and
• Senate Bill 1574, a bill to be entitled an act relating to energy infrastructure investment.
• Members, Senate Bill 1422 talks about operation of drones over critical infrastructure and facilities
• I'm proud to say that that expansion was already signed into law this session.
• I'm proud to say that that expansion was already signed into law this session.

Summary: The Senate opened with prayer, the Pledge of Allegiance, and several recognitions, including guests from Miami Northwestern Senior High School, Clay County, and a moment of silence for Pope Francis. Members then moved to the special order calendar after adopting a motion to reconsider the earlier failed vote on CS/SB 1080, which was temporarily postponed. The chamber also temporarily postponed several bills during the day, including measures on social media use by minors, veterans’ nursing homes, Parkinson’s disease, mental health and substance use disorders, education, educator preparation, benefits for certain officers injured in the line of duty, Brownfields, and school social workers. The Senate passed a series of bills with little or no opposition, often substituting House companions for Senate bills. These included expedited DNA testing grants for law enforcement; additional aggravating factors in capital felony sentencing; fertility preservation coverage for cancer patients; commuter rail indemnification; disposition of migrant vessels; specialty license plates; an Alzheimer’s and dementia awareness campaign; relocation of the Council on the Social Status of Black Men and Boys to Florida Memorial University; charter school changes; registration rules for sexual predators and offenders; assault and battery penalties for utility workers; juvenile justice revisions; reporting of student mental health outcomes; foster home licensure transfers; water access facilities and boating-related funding; Florida Virtual School changes; school readiness program improvements; protections against lewd sexual images of children; age-related criminal offense provisions; tampering with electronic monitoring devices; certified recovery residences; and codification of the FSU Election Law Center. Most of these bills passed overwhelmingly, though the charter school bill and the aggravating factors bill drew more divided votes. One of the most debated measures was SB 820, codifying the Office of Faith and Community. Senator Polsky offered an amendment to bar political activity by office employees while on duty and using government resources, citing alleged election-related emails and concerns about mixing government and religious influence. Supporters argued the amendment was needed as a guardrail; opponents said existing law already covered the conduct and that the amendment could be confusing or overly broad. The amendment failed 13-23, and the underlying bill passed 27-9 after extended debate about faith, politics, and the office’s role. Another notable debate involved SB 954 on certified recovery residences, where senators emphasized the need for stable housing in addiction recovery and the bill passed unanimously after supportive remarks from members who had personal experience with recovery. The Senate also passed SB 674 on bonuses for county tax collector and property appraiser employees after questions about safeguards and the purpose of the bonuses.

Transcript Highlights:

• It serves roughly a quarter of Lake Charles and protects critical infrastructure, including Christus
• Tammany Parish Hospital District Number Two, Slidell Memorial Hospital Emergency Department Expansion
• The ED expansion project is adding 26 beds to our existing ED, also integrating another ED department
• The ED expansion project is adding 26 beds to our existing ED, also integrating another ED department
• So we're doing an expansion of 26 beds outside of the emergency department, as well as renovating two

Summary: The joint Senate and House Transportation, Highways, and Public Works committees met on March 3, 2026, to consider several construction manager at risk (CMAR/Seymour) requests before hearing a DOTD presentation. The first item, Caddo Parish’s proposed $9.6 million pickleball park in Southeast Shreveport, drew the most debate. Members questioned whether a pickleball complex was sufficiently complex or time-sensitive to justify CMAR, whether the location was accessible to residents without cars, and whether the process could disadvantage public bidding and minority contractors. The House initially voted to deny the request, but later reconsidered and approved it after discussion about the statute and the committee’s past practice. The committee also heard a brief procedural discussion about whether the statutory factors for CMAR are exhaustive and whether future reforms may be considered in the next session. The committee then approved several other CMAR projects with little or no opposition. Ascension Parish Sheriff’s Office received approval for an indoor shooting range, with testimony emphasizing specialized ventilation, lead control, bullet protection, and other technical requirements. Calcasieu Consolidated Gravity Drainage District No. 2 received approval for a pump station rehab/replacement project serving a large portion of Lake Charles and critical public facilities, with members citing the need to maintain drainage operations during weather events. St. Tammany Parish Hospital District No. 2’s Slidell Memorial Hospital emergency department expansion was approved based on the complexity of adding beds and renovating an operating ED, and St. Charles Parish Hospital’s entry registration/PACU renovation was also approved, with members noting the hospital exception to the CMAR threshold. The Port of Vinton dock project in Calcasieu Parish was approved as well, with testimony stressing a tight delivery schedule tied to an LED project and the need to keep port operations running during construction. After the Caddo Parish item was reconsidered, the committee recessed briefly and then adjourned the CMAR portion of the meeting to move on to the DOTD presentation.

Transcript Highlights:

• He said there is so much they can do for infrastructure needs throughout Minnesota, especially outstate
• He said he farms, owns a small business, and became interested in bonding and public infrastructure after
• </c><00:04:06.879><c> needs</c> for all of our infrastructure needs for all of our infrastructure needs
• </c> bonding when we look at infrastructure bonding when we look at infrastructure structure<00:08:59.720
• The second proposal is expansion of the BCA regional office and laboratory.

Committee: House Capital Investment

Transcript Highlights:

• know that the daughter of a mentally ill parent was directly involved and informed the greatest expansion
• And under her leadership, it was the greatest expansion of staff salaries, assuring equitable analysis
• It's the greatest expansion of our staff.
• Children is the greatest expansion of our staff's respect and dignity and pathway to the middle class
• We can talk about access to even low-income fares, transportation, expansion of the waterfront transportation

Summary: The Senate convened for the opening day of the 194th General Court, with ceremonial remarks, an invocation, the Pledge of Allegiance, and the formal canvass of election returns. A special committee reported that all senators had been duly elected, and a committee was then appointed to notify the Governor, Lieutenant Governor, and Governor’s Council that a quorum of senators-elect was assembled and ready to be sworn in. Governor Maura Healey and Lieutenant Governor Kim Driscoll addressed the chamber, praised public service, and administered the oaths of office to the senators. The main business of the day was the election of the Senate President. Senator Karen Spilka was nominated by Senator DiDomenico and seconded by Senator Edwards, while Senator Bruce Tarr was nominated by Senator Durant and seconded by Senator Dooner. After nominations were closed, the roll call resulted in 34 votes for Spilka and 5 for Tarr, and the Senate declared Spilka elected president. Senator Tarr then moved that the vote be considered unanimous, and the Senate agreed. President Spilka delivered an inaugural address focused on the chamber’s recent legislative record and priorities for the new session. In her remarks, Spilka highlighted prior accomplishments including education funding, free community college, early education reforms, mental health care reform, prescription drug cost reductions, tax relief, housing, transportation, climate, and veterans’ legislation. She also outlined priorities for the new session, including a statewide listening tour, more transparency in committee and joint committee proceedings, housing and transportation affordability, health care reform, career and technical education, early education, and juvenile justice reform. She emphasized continued bipartisan work and public engagement. The Senate also adopted temporary joint rules and temporary Senate rules, authorized printing of the daily journal, and scheduled the next meeting for the following day at 11:30 a.m. Michael D. Hurley was elected clerk of the Senate and sworn in, and James DiTulio was sworn in as Senate counsel. The chamber also adopted a memorial adjournment in memory of Mary J. Hurley of South Boston before adjourning.

Transcript Highlights:

• </c> state to maintain port infrastructure. state to maintain port infrastructure.
• :58:40.240><c> of</c><00:58:40.400><c> the</c> General supports expansion of the General supports expansion
• </c> use of Hawaii green infrastructure use of Hawaii green infrastructure special<01:27:34.560><c> fund
• But I think it at the time left out for further expansion.
• . expansion. expansion.

Summary: The committee heard testimony on several transportation-related bills. HB 1688, which would provide a general excise tax exemption for certain aircraft maintenance materials, parts, tools, and facility construction, received comments from the Department of Taxation and support from Alaska Airlines, Hawaiian Airlines, Kohala Coast Resort, the Activities and Attractions Association of Hawaii, and the Tax Foundation of Hawaii. Testimony indicated the measure was intended to clarify an existing exemption rather than create a new one. The bulk of the hearing focused on HB 2386, which would authorize the Public Utilities Commission to establish automatic adjustment mechanisms and a water carrier inflationary cost index. The Department of Transportation said it would change its testimony to support the bill, citing a 2020 working group recommendation, while the PUC and DCCA offered comments. Matson, the Maritime Group, Hawaii Harbors Users Group, and Young Brothers supported the measure, arguing it would modernize regulation, improve predictability, and help maintain reliable interisland shipping. Hawaii Farm Bureau offered comments, while Hawaii Food Industry Association, Maui Brewing Company, Lani Kai Brewing Company, and the Japanese Chamber of Commerce and Industry of Hawaii opposed it, arguing automatic rate increases were not the solution and that underlying costs and efficiencies should be addressed first. The chair noted the bill was essentially the same as one previously considered, and asked questions about how Hawaii’s water carrier regulation compares with other states. The committee also heard HB 1691, which would allow electronic signatures for certain motor vehicle title transfers after total-loss insurance settlements and remove the notary requirement for that narrow transaction. The City and County of Honolulu Department of Customer Services, Hawaii Insurers Council, Copart, American Property Casualty Insurance Association, and one individual supported it, with Copart saying the change would reduce delays and could allow a faster, largely electronic settlement process. Members asked about county impacts, and Copart said counties would only see a different form with no added cost or electronic integration. HB 1680, requiring county finance directors to notify agencies through a centralized system for vehicle transfers, drew opposition from the City and County of Honolulu Department of Customer Services and one individual in support. HB 2516, raising helmet requirements for electric foot scooters and bicycles and requiring helmets for high-speed or Class 3 electric bicycles, received support from DOT, DOH, AAA Hawaii, and the Hawaii Bicycling League. HB 193, allowing deaf vehicle owners to register a deafness designation visible to law enforcement, drew support from the City and County of Honolulu Department of Customer Services, the Hawaii Disabilities Rights Center, and an individual who suggested amendments to broaden the bill to deaf and hard of hearing individuals and adjust the proof standard. HB 2442, increasing required accessible and van-accessible parking spaces in larger parking lots, was supported by the Disability and Communication Access Board, the Council on Developmental Disabilities, and the Disability Rights Center, which said the bill would address shortages of accessible parking and may need technical amendments to align terminology with the ADA.

Transcript Highlights:

• It helps sustain the reporting infrastructure communities rely on during elections, emergencies, and
• It helps sustain the reporting infrastructure communities rely on during elections, emergencies, and
• The city would utilize REIT-2 revenue to support local infrastructure investments.
• It does not include meaningful expansion to the current system.
• Our ability to meet new needs depends on preserving the staff and infrastructure we have today.

Summary: The Ways and Means Committee held a public hearing on multiple bills, beginning with a motion to suspend the five-day notice rule for a long list of Senate bills, which passed on a voice vote. The committee first heard Substitute Senate Bill 6026, a governor-request housing bill that would require cities and counties over 30,000 population to allow residential uses in commercial and mixed-use zones, limit mixed-use/ground-floor commercial requirements in some areas, and allow added height where such requirements are imposed. The lieutenant governor testified strongly in support, arguing the bill would add needed housing capacity without requiring ground-floor retail burdens. The hearing on SB 6026 was then suspended so the committee could move through the agenda. The committee then heard Senate Bill 6294, a broad local government finance measure with eight parts, including expanded uses for certain REET revenues, a new county public utility tax, a new local sales tax for children and family services, expanded housing-related tax uses, changes to county levy structure, longer lid lift periods, and expanded use of rental car tax revenue. Local government, housing, and public health witnesses largely supported the bill, emphasizing flexibility for affordable housing, rental assistance, children’s services, and county fiscal stability. Opponents, including wireless industry, water/sewer district, auto dealer, realtors, energy, and cannabis representatives, objected to specific tax provisions as regressive, costly, or likely to raise consumer prices. Several witnesses requested amendments, including adding public health clinic funding and flood recovery language from House bills. The committee also heard Substitute Senate Bill 5400 on local news sustainability, which would create a state grant program funded by a surcharge on large search engines and social media platforms to support journalism jobs and the Murrow Fellowship program. News organizations, the League of Women Voters, open government advocates, and local journalism supporters testified in favor, saying local news is essential to civic life and that the bill would help sustain reporting without using general fund dollars. Technology industry representatives opposed the bill, arguing it unfairly singles out tech companies and could face legal challenges. The committee then heard Senate Bill 6211, which would let opt-in GMA jurisdictions impose REET-2 without voter approval; cities and counties supported it as a parity and infrastructure funding measure, while Realtors opposed the loss of voter approval. Senate Bill 5650, authorizing local cannabis excise taxes, drew support from some local officials but strong opposition from cannabis businesses, which argued Washington’s cannabis taxes are already too high and drive sales to the illicit market. Senate Bill 6033, waiving penalties and interest for taxpayers who failed to collect new sales tax on certain services, was supported by NFIB as a compliance and fairness measure. Senate Bill 6297, exempting temporary staffing services for nonprofit behavioral health providers from sales tax, drew strong support from behavioral health organizations citing workforce shortages and unsustainable costs. Finally, Senate Bill 6343, extending and expanding tax relief for disaster-damaged property and repairs, was presented as aid for flood recovery; local officials testified in support. No final committee votes on the bills were taken in the portion of the meeting provided.

Transcript Highlights:

• This is in Infrastructure Investment and Jobs Act appropriation requests.
• This is in Infrastructure Investment and Jobs Act appropriation requests.
• Department of Labor to support the expansion of manufacturing registered apprenticeship.
• Plan Act and how that's going to be sent throughout the state for water, wastewater, stormwater infrastructure
• Plan Act and how that's going to be sent throughout the state for water, wastewater, stormwater infrastructure

Committee: All ALC-PEER

Summary: The committee considered several appropriation and fund transfer requests. In Section B, it approved temporary appropriations for the Department of Military to match a federal grant for design work at the 39th Brigade Headquarters, for State Police to rebuild the Troop I CDL facility damaged by a tornado, for State Police equipment replacements, and for DF&A to reclassify Rural Health Transformation Program contract costs. In Section C, it approved a $4.2 million Infrastructure Investment and Jobs Act appropriation for the Department of Energy and Environment’s statewide energy plans and programs, with members asking for more detail on the grant uses. In Section D, it approved a $40 million transfer within the Department of Education from teacher salary equalization and school funding contingency to minimum teacher salary and raise, and in Section E it approved a $243,000 restricted reserve transfer for the Military Department’s National Guard matching funds. In Section F, the committee reviewed federal grant appropriations including $729,000 for the National Guard headquarters project, $35.6 million for workforce apprenticeship expansion, and $6.7 million in DOJ grants for extreme risk protection order programs, crisis intervention court proceedings, and gun violence reduction initiatives. Senators asked detailed questions about the DOJ grants, and DFA officials said Arkansas would use safeguards in grant agreements to ensure the funds would not be used to infringe Second Amendment rights. The committee then reviewed a small Department of Health pay plan appropriation for a critical staff member. During reports, members discussed the Department of Agriculture’s use of American Rescue Plan Act funds for water, wastewater, and stormwater infrastructure. Officials said the program is in its final year, with about 205 projects awarded and roughly 81 still under construction, and that the remaining funds are intended to finish existing projects rather than start new ones. After no further questions on the remaining reports, the meeting adjourned.

Transcript Highlights:

• IT infrastructure is also a challenge.
• It's not a very big facility, and the footprint isn't ripe for expansion.
• It just takes a little bit slower to get them to that space. ripe for expansion.
• Investment in CTS expansion was included in the governor's proposed budget.
• and classification infrastructure matches the changing population.

Summary: The Senate Human Services Committee held a work session on juvenile rehabilitation trends and then a hearing on Senate Bill 6062. The work session featured a national overview from NCSL, DCYF updates on Green Hill, Harbor Heights, and community transition services, and local/community perspectives from Pierce County, Team Child, and Northwest Credible Messengers. The national presentation described broad juvenile justice trends, including limits on extreme sentencing, expanded diversion and due process protections, reduced fines and fees, record clearing, and changes in juvenile court jurisdiction. Committee members asked about juvenile crime trends and overcrowding, and the presenter noted that crime has generally decreased overall since 2020, though some offenses have risen in some places and overcrowding remains an issue in certain states. DCYF reported on its behavior management system, Harbor Heights opening as relief for overcrowding, Green Hill population pressures, and expansion of community transition services. Officials said the behavior management system is intended to improve safety, consistency, and restorative accountability, while Harbor Heights has added programming and family engagement but still faces space, IT, and medical-infrastructure challenges. Green Hill leaders said reduced population has improved stability, programming, and use-of-force outcomes, but overcrowding remains a concern. DCYF also highlighted an ombuds process, family listserv updates, staffing changes, and a proposed budget request for additional JR capacity and staffing. Pierce County described its long-running detention reform work, reduced average daily detention population, and plans for a new juvenile justice center, while Team Child and Northwest Credible Messengers emphasized community-based supports, culturally responsive services, healing-centered engagement, and reentry planning. Senate Bill 6062 was then briefed as a measure revising juvenile sentencing and JR placement rules. The bill would require courts to grant suspended disposition alternatives in eligible cases unless the court finds community supervision would not adequately protect the community, expand eligibility for certain sentencing alternatives, require midpoint review hearings, and set rules for transfers from JR to DOC when facilities exceed 105% of rated bed capacity. The committee also voted to waive the five-day notice rule for hearings on Senate Bills 6319 and 5979, and that motion passed. During public testimony on SB 6062, youth from Green Hill supported the bill and asked for clearer standards around DOC transfers, while DCYF supported efforts to reduce JR population but said the bill needs stronger emergency transfer language to address overcrowding at Green Hill. Committee members and the bill sponsor emphasized rehabilitation, individualized sentencing, and the need to balance community safety with better placement and services for youth.

Transcript Highlights:

• entity. of a ransomware incident on a non-state critical infrastructure entity.
• We've also recently completed our Jamestown expansion.
• for the data, the other infrastructure, right?
• The density of the equipment is not as demanding as this hyperscale infrastructure, as this AI infrastructure
• So this is around current infrastructure.

Committee: Joint Information Technology Committee

Summary: The committee received a series of informational reports from NDIT and DPI on major IT projects, cybersecurity, and the K-12 student information system transition. Justin Data reviewed the quarterly major project portfolio, noting 111 projects totaling about $542.8 million, generally under budget and slightly behind schedule overall. He highlighted three schedule-red projects: Bed Management System and Vital Records, both now complete and being closed out, and the Roadway Capital Planning Project, which is delayed due to vendor bug fixes after user testing. He also summarized new project startups, including the Attorney General’s Victim Notification System, HHS Medicaid correctional facilities data exchange, Highway Patrol’s motor carrier e-permit system, and additional RIMS work, and answered questions about project timing, funding, and whether work had begun on legislatively funded IT projects. Chris Gurgan, NDIT’s chief information security officer, reported on mandatory cybersecurity incident reporting under HB 1314. He said 77 incidents have been reported since August 2021, with 47 meeting the statutory definition of a cybersecurity incident; phishing remains the most common type, followed by email quarantine alerts, XDR detections, and malware. He emphasized that most incidents are resolved, but that timely reporting is critical for any chance of recovering funds in business email compromise or ransomware cases. He also described several notable incidents since the last report, including the PowerSchool breach, a SimpleHelp intrusion at a school district, a court intrusion, a WSUS vulnerability, a business email compromise at a K-12 district, and a recent ransomware report involving a non-state critical infrastructure entity. Members asked about smishing, MFA, conditional access, security awareness training, and recovery of lost funds; Gurgan said state systems use phishing-resistant MFA and conditional access, training is provided to state employees and offered to political subdivisions on an opt-in basis, and broader cybersecurity maturity assessments are underway. Craig Falkley gave brief reports on coordination with political subdivisions and higher education, including shared networking, cybersecurity, radio/911, PeopleSoft, and co-location services. He also explained distributed ledger technology as a tool for decentralized, secure data sharing, but said the state has limited use for it and would likely frame future reporting more broadly around emerging technologies. The committee then heard from Tony Ambrose of DPI on the statewide Infinite Campus implementation. He said district implementations are underway, but the project had to terminate its original data migration vendor for poor performance and replace it with Aurora Educational Technology, which had experience with a similar North Carolina migration. He also said DPI is moving special education data from Tynet into Infinite Campus, is still working through how to preserve e-transcripts and Choice Ready-type functionality after the PowerSchool transition, and is developing identity, authentication, and data-sharing arrangements for the summer cutover. Members raised concerns about procurement timing, summer school disruption, and whether some functions would be ready by July 1.

Transcript Highlights:

• We've also recently completed our Jamestown expansion.
• Since 2021, we've invested more than $20 million into the expansion of those communities.
• The other infrastructure, right? Yeah. I think those are some of the questions that happen.
• The density of the equipment is not as demanding as this hyperscale infrastructure, as this AI infrastructure
• So this is around current infrastructure.

Summary: The committee received several informational reports from NDIT and DPI. Justin Data reviewed the quarterly major IT project portfolio, noting the portfolio was slightly under budget and behind schedule overall, with three red schedule items: Bed Management System and Vital Records were essentially complete and being closed out, and the Roadway Capital Planning Project was delayed by vendor bug fixes after testing. He also summarized recent project startups and closeouts, including the Victim Notification System, Medicaid data exchange, Highway Patrol’s motor carrier permit system, and several completed HHS and RIMS projects. Members asked for follow-up on ADA compliance work, the public-facing RIO website, and the state’s mainframe retirement timeline, and staff agreed to provide updates later. Craig Falkley reported on coordination of services with political subdivisions and higher education, including StageNet, cybersecurity, radio/911 services, and PeopleSoft coordination. He also explained distributed ledger technology as a tool for transparency and fraud prevention, but said it is not widely used in state government and suggested the report be modernized to focus more broadly on emerging technologies such as AI and cybersecurity. The committee generally agreed that the topic should be updated. Chris Gurgan presented the mandatory cybersecurity incident reporting program created by HB 1314, explaining how agencies and political subdivisions report incidents through NDIT’s website or service desk. He said 77 incidents had been reported since 2021, 47 met the statutory definition, and most were phishing-related; most reported incidents were resolved, with one recent ransomware matter still open. He also reviewed notable incidents since the last report, including the PowerSchool compromise, a SimpleHelp intrusion at a school district, a court intrusion, a WSUS vulnerability, a business email compromise, and a recent ransomware incident involving a non-state critical infrastructure entity. Members asked about recovery of stolen funds, early warning signs, smishing, training, MFA, conditional access, and cybersecurity maturity assessments; Gurgan said the state uses MFA and conditional access, provides awareness training to state employees, and would return with more information on maturity assessments. Tony Ambrose then updated the committee on the K-12 student information system bridge project. He said district implementation of Infinite Campus had begun statewide, but the data migration vendor originally selected was terminated for poor performance and replaced by Aurora Educational Technology, which had experience with similar statewide migrations. He also said DPI is migrating special education data from Tynet into Infinite Campus, and that some SLDS-based tools such as e-transcripts and Choice Ready may not function exactly as they do now at July 1, requiring interim or alternative solutions. Members raised concerns about summer school disruptions, the timing of the cutover, and whether the new system would support existing reporting and transcript functions; DPI said it was working on identity, authentication, data-sharing agreements, and post-go-live integrations, and would continue to refine the plan beyond June 30.

Transcript Highlights:

• </c><00:07:55.039><c> into</c><00:07:55.360><c> the</c> backbone for expansion into the backbone for
• expansion into the southeast<00:07:56.319><c> uh</c><00:07:56.639><c> Kentucky</c><00:07:57.520><c> region
• &gt;&gt; Um<00:08:09.199><c> so</c><00:08:09.759><c> the</c><00:08:10.080><c> expansion</c><00:08:11.280
• Here's our finance breakdown for 2024: the infrastructure loans, processing, beginner farmer loans, and
• loans, a processing, the infrastructure loans, a processing, beginner<00:31:17.840><c> farmer</c><00

Summary: The Tobacco Settlement Agreement Fund Oversight Committee met to review how tobacco settlement dollars are being used and to press recipients for detailed information on total funding, administrative versus program spending, and measurable outcomes. The chair emphasized that the committee was not there for general program overviews, but to assess return on investment and whether each program should continue to receive tobacco settlement support. The committee approved the minutes from its December 22, 2025 meeting and then heard presentations from several agencies and organizations. Volunteers of America Mid-States described its southeastern Kentucky restorative justice program, which uses an evidence-based New Zealand model for juvenile cases in nine counties. The group reported tobacco settlement funding of $516,000 in FY24 and $233,500 in FY25, representing about 17% and then about 5% of the program budget, respectively. It said the funding helped expand the program from 13 cases in 2021 to 180 youth served, and cited an independent evaluation showing recidivism of 24.5% compared with 40.4% in AOC data, along with a cost of a little under $20 per day versus detention and other placements. Some members questioned whether the program fit the tobacco settlement funding categories and suggested it might be better supported through other justice-related funding sources. The Energy and Environment Cabinet’s Division of Conservation explained that tobacco funds support $1 million in direct aid to conservation districts and $2 million in cost-share projects for farmers, with 5% of the cost-share appropriation allowed for administration, or about $100,000 in FY26. Officials said the direct-aid line was moved into tobacco funding in 2019, reducing money available for farmer cost-share, and described a multi-year project approval and reallocation process. Senator Webb asked for a more specific breakdown of the $850,000 direct-aid amount, and the cabinet said it would provide that information. The Kentucky Office of Drug Control Policy reported that in FY24 it expended just under $30 million across tobacco funds, general funds, restricted funds, and a one-time federal grant, with less than 2% used for administration. Officials said most tobacco settlement money goes to Kentucky ASAP local boards in all 120 counties, supporting prevention, treatment, and some law enforcement work. The Department of Agriculture then began its presentation, describing strategic investments, loan programs, county funding, administrative costs, and a reported return of about $2.30 for every dollar spent, but the transcript cuts off before that presentation was completed.

Transcript Highlights:

• We've taken on and are overcoming long-standing infrastructure deficits.
• There's a range of jobs associated with that infrastructure.
• There's a range of jobs associated with that infrastructure.
• And so that support for infrastructure is important.
• I think as a positive, look at port infrastructure.

Committee: Joint Joint Committee on Ways and Means

Summary: The joint budget hearing opened the FY27 budget process with remarks from the Senate and House Ways and Means chairs, who described the fiscal outlook as challenging because of slow revenue growth, rising health care and other costs, and uncertainty from federal policy changes. Governor Healey and Secretary of Administration and Finance Matthew Gorzkowicz then presented House 2, a $62.8 billion budget that they said grows by about 1% and does not raise taxes or fees. They emphasized affordability, fiscal discipline, protection of core services, and continued investment in education, transportation, housing, child care, health care, and public safety. The administration also discussed a separate bill to delay and phase in certain federal tax-code changes from the so-called OB3 law, especially research and experimental expense provisions, to reduce immediate budget impacts and preserve competitiveness. A major portion of the hearing focused on education and municipal aid. The administration said House 2 provides about $7.6 billion for Chapter 70 aid, fully funds the final year of the Student Opportunity Act, increases special education circuit breaker funding, and raises rural school aid. Senators and representatives from both parties raised concerns that Chapter 70 and other aid formulas are not equitable for small, rural, and low-wealth communities and are not keeping pace with inflation, and several called for broader review of the formula and related funding streams. The governor and secretary said they are open to further discussion, pointed to additional support through rural aid, special education, transportation reimbursements, and minimum aid, and said total Student Opportunity Act investment would reach about $2.1 billion over the life of the law. Transportation, housing, and fair share spending were also central topics. The administration said fair share revenues are being used holistically, with education-heavy spending in the operating budget and transportation-heavy spending in the supplemental budget, and estimated the overall split to date at roughly 57% education and 43% transportation. They highlighted MBTA stabilization, regional transit authority support, microtransit, fare-free regional transit, and bridge and commuter rail investments, while noting the MBTA remains a major fiscal concern. On housing, the governor stressed production, permitting reform, ADUs, down-payment assistance, and support for public housing authorities, while lawmakers pressed for more funding for local housing authorities and for ways to address out-migration, energy costs, and affordability. The governor also said the administration will not withhold fire safety grants from communities over MBTA Communities Act noncompliance and will handle such issues case by case. No votes were taken at the hearing; it was an informational presentation and question-and-answer session.

Transcript Highlights:

• We've taken on and are overcoming long-standing infrastructure deficits.
• And we see them as essential to our transportation infrastructure, for sure.
• And so that support for infrastructure is important.
• I think as a positive, look at port infrastructure.
• Or what did you do to protect our infrastructure and some of our jobs?

Committee: Joint Joint Committee on Ways and Means

Summary: The hearing opened the FY27 budget process with remarks from the Senate and House Ways and Means chairs and testimony from Governor Healey and Administration and Finance Secretary Matthew Gorzkowicz. The chairs emphasized fiscal caution amid choppy revenue growth, rising health care and education costs, and federal uncertainty, while the governor framed House 2 as a $62.8 billion budget that grows spending by about 1% without new taxes or fees and aims to protect core services while advancing affordability. The administration said the budget uses efficiencies, program integrity, and Fair Share surtax revenue to support education, transportation, housing, child care, health care, and public safety, and it also filed a supplemental Fair Share bill using surplus FY25 funds. Much of the questioning focused on the federal “OB3” tax law and the administration’s separate proposal to delay or phase in certain corporate tax changes, especially research and experimental deductions, to avoid in-year budget shocks. Members also pressed the administration on Fair Share allocations, with the governor and secretary explaining that operating-budget surtax spending is weighted more toward education while supplemental spending is more transportation-focused, and that combined spending is roughly balanced overall. The administration highlighted Chapter 70 aid, special education circuit breaker funding, rural school aid, local aid, child care, the MBTA deficit, regional transit authorities, and a new HHS transportation line item as part of the broader transportation strategy. Several members raised concerns about Chapter 70 equity, rural districts, municipal overrides, out-migration, housing affordability, public housing repairs, and the MBTA Communities Act. The governor and secretary said they are open to further discussion on school funding formulas, PILOT, and municipal aid, and stressed housing production, energy affordability, and workforce development as key responses to out-migration. On energy, the governor defended an all-of-the-above approach, including renewables, gas, and exploration of nuclear, while saying she would continue pushing utilities and regulators to reduce ratepayer costs. The governor also said fire safety grants would not be withheld for noncompliance with the MBTA Communities Act, and members discussed public safety, housing, and local grant impacts in that context. Other topics included the Bright Act and higher education capital investments, with the administration saying it is preparing to support campus infrastructure across the public higher education system and that the bill is intended to strengthen Massachusetts’ competitiveness and retain graduates. Members also questioned cuts to the PCA program and EAEDC, and the governor responded that the state’s PCA program remains strong but is under pressure from large federal health care reductions. No votes were taken; the session was a hearing on the governor’s budget proposal and related policy bills, with the administration taking questions and offering explanations of its recommendations.

Transcript Highlights:

• sites, child care sites, and other community partners for the implementation of policies and infrastructure
• I'm just curious as to the expansion on that line. Again, we know we're facing a...
• I'm just curious as to the expansion on that line.
• When Medicaid expansion occurred, we've seen a lot of individuals move from the program to Medicaid.
• , that's graduate medical education slot expansion, $500,000 reduction to the Health Professional Loan

Committee: House Budget

Transcript Highlights:

• Medicaid eligibility redeterminations at least every six months for individuals in the Medicaid expansion
• It extends energy infrastructure reinvestment financing for another two years until 2028.
• It eliminates Medicaid enrollment fees or premiums for expansion population adults.
• It requires state-imposed Medicaid coverage cost sharing of up to $35 per service on Medicaid expansion
• We oppose HR1's discriminatory policies targeted at immigrant communities, including expansion of ICE

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held its fifth hearing of the year to examine the newly enacted federal H.R. 1 and its effects on California. Members and the chair described the law as a major threat to state health, food, education, and climate programs, and emphasized that California would not be able to fully backfill the federal cuts. Several members also highlighted the bill’s tax provisions, including temporary deductions for tips, overtime, seniors, and auto loan interest, while warning that the largest benefits flow to higher-income taxpayers and that major cuts to Medi-Cal, CalFresh, and clean-energy incentives are delayed or phased in over time. The Legislative Analyst’s Office and the Department of Finance presented detailed overviews of the bill’s likely impacts and implementation timelines. They identified the main affected areas as health care coverage and financing, food assistance, higher education, personal income taxes, and clean-energy/electric-vehicle credits. They explained that H.R. 1 limits provider taxes used to finance Medi-Cal, adds work and redetermination requirements, restricts CalFresh eligibility and increases state costs, changes student loan and Pell Grant rules, extends and modifies federal tax provisions, and phases out many clean-energy credits. Finance also noted major rescissions of Inflation Reduction Act funds, new border and immigration enforcement spending, and the possibility of PAYGO sequestration if Congress does not act to offset the deficit increase. During member questions, the committee focused on likely enrollment losses, administrative burdens, and fiscal exposure for the state and counties. Witnesses said many details still depend on federal guidance, but they estimated significant impacts on Medi-Cal, CalFresh, and graduate/professional student borrowing, and noted that California’s high CalFresh error rate could increase state costs. UC testified that the elimination of Graduate PLUS loans would affect thousands of professional students, especially in health, law, and other high-cost programs. Members asked for follow-up data on county, health, and tax impacts, and staff agreed to provide additional tables and estimates as implementation guidance becomes clearer. Public commenters from counties, early childhood advocates, health coalitions, disability rights groups, immigrant-rights organizations, and other stakeholders urged the Legislature to mitigate the law’s effects. They warned of higher county costs, reduced access to health care and food assistance, increased administrative burdens, and harm to children, immigrants, people with disabilities, and low-income families. Several urged new state revenue solutions and stronger protections for Medi-Cal, CalFresh, child care, and home- and community-based services. No votes were taken; the hearing was informational and ended with a commitment to continue monitoring federal guidance and to work on state responses in the budget process.