Transcript Highlights:

• Generally, tangible personal property is treated with a depreciation schedule and then only addressed
• Actually, depreciation is taken into account in the just value assessment.
• There is actually a complete model that's used in mass appraisal, and it includes addressing depreciation
• And they are looking at depreciation.
• And then applying a depreciation schedule, based on however long that particular property had been in

Summary: The Select Committee on Property Taxes met for an educational session focused on how Florida funds public schools and how property taxes are assessed and levied. Dr. Jim Zengali of the Department of Revenue explained the FEFP school funding formula, noting that it is built on weighted student counts, a base student allocation, and programmatic add-ons such as transportation, exceptional student education, school safety, and mental health. He said school funding is roughly split between state general revenue and local property taxes through required local effort, with additional discretionary and capital outlay millages contributing to total school funding. He also described the Department of Revenue’s role in certifying property rolls at fair market value and reviewing them for substantial compliance, including the so-called “nuclear option” if a roll is not approved. Members asked about trends in millage rates, county-by-county funding differences, the effect of growth and enrollment changes, and how property appraisals are reviewed. Zengali said aggregate millage for school funding has declined over the last decade while revenues have still increased, and he agreed to provide additional data on county trends, parcel strata, student growth, and enrollment impacts. He also clarified that school funding is equalized so students receive similar resources regardless of county wealth, and that federal funding plays only a small role in the FEFP. Amy Baker of the Joint Legislative Office of Economic and Demographic Research then discussed existing homestead benefits. She said about half of Florida’s parcels are homestead properties, most fall in the $250,000 to $500,000 value range, and many seniors without mortgages pay property taxes in lump sums rather than through escrow. Baker explained that Florida’s homestead tax burden is middle-of-the-pack nationally and that the main benefits are Save Our Homes and portability on the differential side, plus the $25,000 homestead exemption and related exemptions on the exemption side. She said these benefits reduce taxable value substantially, with homestead properties receiving a large share of the reductions, and noted that the committee requested follow-up data on exemption usage, portability timing, senior exemptions, and county-level patterns. The final presentation, by Lizette Kelly of the Department of Revenue, covered millage rates and the TRIM process. She reviewed the history of truth-in-millage notices, required taxpayer mailings, public hearing notices, and later changes that tied local millage resets to rollback and majority-vote rates. Kelly explained the difference between proposed and adopted millage, the rollback rate, and the majority-vote rate, and described how taxing authorities include counties, cities, special districts, and MSTUs. She also outlined how county taxable value is calculated from just value through assessment differentials and exemptions, and how certain exemptions, such as the additional senior exemption, apply only to the taxing authority that adopted them. No votes were taken during the meeting, but members requested several follow-up data reports for later discussion.

Transcript Highlights:

• Buildings, however, require a different calculation that accounts for depreciation over time.
• And when you insure it, they're going to replace it at the depreciated value.
• And when you insure it, they're gonna replace it at the depreciated value.
• So if you burns down, you're gonna get replaced the cost added. going to replace it at the depreciated

Bills: HB2014, HB2031, HB2078, HB2102, HB2103, HB2117, HB2261, HB2262, HB2264, HB2278, HB2428, HB2494, HB2756, HB2758, HB2762, HB2782, HB2932, HB2933, HB2986

Keywords: air emissions, fuel blends, environmental quality, feasibility study, Arizona Department of Agriculture, water rights, groundwater, Willcox, active management area, certificate of grandfathered rights, Arizona legislature, aggregate mining, reclamation plans, environmental protection, public safety, land use, domestic water, improvement district, water delivery, water hauling

Transcript Highlights:

• They're depreciating.
• They're depreciating. They're depreciating.
• </c> depreciates itself out. depreciates itself out.
• it out until there is no value in the property because these properties don't appreciate, they depreciate
• ,</c> don't appreciate, they depreciate, don't appreciate, they depreciate, and<00:58:39.840><c> you<

Keywords: 1187, senate, all

Transcript Highlights:

• Uh, some of the other ones is the floor now on deductions, the bonus depreciation, and so forth.
• Uh, some of the other ones is the floor now on deductions, the bonus depreciation, and so forth.
• Uh, some of the other ones is the floor now on deductions, the bonus depreciation, and so forth.
• 03.040><c> bonus</c> the floor now on deductions, the bonus the floor now on deductions, the bonus depreciation
• , depreciation, depreciation, uh<00:10:05.240><c> and</c><00:10:05.640><c> so</c><00:10:05.880><c> forth

Keywords: 919, house, all

Summary: The committee heard testimony on House File 5055, the governor’s supplemental tax budget. Commissioner of Revenue Paul Marquart outlined the proposal as a balanced budget package that would leave a positive bottom line in the current biennium and beyond. He emphasized family-focused tax relief, especially a new refundable young child credit for children ages 0 to 4, which would provide up to $3,000 for one child or $6,000 for two or more, benefit about 104,000 families, and phase out at higher incomes. He also described federal conformity changes, including updates to business interest deductions, dependent care credits, and Section 179 expensing, along with omitted federal items such as research expensing and opportunity zones due to cost and policy concerns. Marquart also defended broader tax modernization proposals, including expanding the sales tax to selected consumer services such as accounting, banking, brokerage, and legal services while lowering the statewide sales tax rate, and creating a social media tax on consumer data collection that would fund an AI readiness special revenue fund rather than the general fund. He said these changes would make the sales tax less regressive and better aligned with the modern economy. Additional provisions mentioned included a gun-related gross receipts tax on firearms and ammunition, cannabis tax technical changes, historic structure rehabilitation conformity, and added auditors for tax compliance. Testimony from outside groups was mixed. Nan Madden of the Minnesota Budget Project supported the governor’s approach as a response to federal tax and spending changes, praised the decision not to conform to opportunity zones or federal no-tax-on-tips/overtime provisions, and urged even stronger revenue measures. Brian Lake of the Minnesota State Bar Association strongly opposed the proposed sales tax on consumer legal services, arguing it would burden low- and middle-income people in sensitive cases and create unfairness when individuals litigate against the state. Tanner Fritsinger of the Minnesota Association of Professional Employees supported the sales tax base expansion and the social media tax as ways to broaden revenue without raising the base rate. The committee chair thanked the commissioner and then began hearing public testimony, with additional testifiers queued up.

Transcript Highlights:

• So the depreciation schedule is increased from, I think it's 8 to 13 years, up to 15 years, and also
• counts federal grants against their depreciation payments.
• I've heard about bus depreciation, ...the value of that.
• We couldn't have trade-offs for bus depreciation or transition to kindergarten.
• We couldn't have trade-offs for bus depreciation or transition to kindergarten.

Bills: HB2720, HB2073, HB2681, SB5467, SB5820, SB5863, SB5892, SCR8406, HB2487, HB2711, SB5816, SB5919, SB5995, SB6278

Keywords: behavioral health, emergency services, health insurance, provider access, mental health funding, premium assistance, funding, healthcare, subsidies, cannabis, license fees, regulatory framework, revenue generation, legalization, SB 5467, water-sewer district, water sewer district, surplus property, public property sale, local government

Transcript Highlights:

• So the depreciation schedule is increased from, I think it's 8 to 13 years, up to 15 years, and also
• counts federal grants against their depreciation payments.
• I've heard about bus depreciation, that don't have access to E-CAP or Head Start.
• We've heard about bus depreciation and the value of that.
• We couldn't have trade-offs for bus depreciation or transition to kindergarten.

Bills: HB2720, HB2073, HB2681, SB5467, SB5820, SB5863, SB5892, SCR8406, HB2487, HB2711, SB5816, SB5919, SB5995, SB6278

Keywords: behavioral health, emergency services, health insurance, provider access, mental health funding, premium assistance, funding, healthcare, subsidies, cannabis, license fees, regulatory framework, revenue generation, legalization, SB 5467, water-sewer district, water sewer district, surplus property, public property sale, local government

Summary: The House convened, established a quorum, approved the prior day’s minutes, and then moved through caucuses and a series of transportation, elections, energy, historical records, cannabis, abortion-access, and fiscal bills. Members repeatedly emphasized that several measures were supplemental or technical updates to existing law, while others involved larger policy disputes over taxes, fees, clean energy, election security, and reproductive health. The chamber also received Senate messages on other bills and briefly recessed for caucus during the day. The most prominent action was final passage of Engrossed Substitute Senate Bill 6005, the supplemental transportation budget, after adopting a technical amendment and a larger striker amendment. Supporters highlighted preservation and maintenance funding, rail investments, ferry maintenance, road safety, and continued work on major projects statewide; opponents largely reserved comments or noted concerns about future needs. The House passed the bill 93-0 with five excused. The House also passed Engrossed Substitute House Bill 2711 on transportation resources, after adopting a technical amendment that removed the aircraft tax and delayed an RV-related tax change; supporters said it protected businesses and jobs, while opponents objected to trade-in treatment and other tax changes. That bill passed 83-10. On elections, the House considered Senate Bill 5892 to protect the voter registration database. An amendment to reduce penalties from a felony to a civil infraction and remove the emergency clause failed, while the committee amendment passed 50-34. Supporters said the bill was needed to safeguard sensitive voter data and clarify access; opponents argued it created conflicts with federal law and imposed excessive penalties on local election officials. The bill then passed 57-36. On energy, Substitute Senate Bill 5982 updating consumer-owned utility provisions drew debate over carbon capture, resource adequacy, data centers, and clean energy policy. Amendments on carbon capture and blackout-triggered termination failed, while an amendment preserving cogeneration exceptions passed; the bill then passed 57-37. The House also passed Senate Bill 5863 on preservation and inspection of state historical records, after rejecting an amendment to require longer retention but adopting the committee amendment; supporters stressed preserving the history of residential habilitation centers and the value to families seeking records. Substitute Senate Bill 5874, allowing the Employment Security Department to waive penalties for minor employer reporting errors, passed unanimously. Engrossed House Bill 2681, raising cannabis license fees while removing an escalator, passed 52-42. Finally, Substitute Senate Bill 5917 on access to abortion medications saw several failed amendments from opponents seeking to narrow, reframe, or add fiscal limits to the bill; supporters said it preserved flexibility to ensure access and avoid waste, and the bill passed 57-36.

Transcript Highlights:

• Vermont income tax decouples from the federal threshold for bonus depreciation on qualified production
• </c> federal threshold for bonus depreciation federal threshold for bonus depreciation on<00:47:42.600
• In 2017, the Tax Cut and Jobs Bill said, "No, you could depreciate or deduct that expense not over 5
• </c><00:49:00.720><c> or</c><00:49:00.800><c> deduct</c><00:49:01.400><c> that</c> you could depreciate
• or deduct that you could depreciate or deduct that expense<00:49:02.880><c> not</c><00:49:03.240><c>

Keywords: 927, senate, all

Transcript Highlights:

• So just in terms of depreciation schedule, you don't know 10 years, 15 years?
• There's bonus depreciation... can go further than that. can go further than that.
• So just in terms of depreciation<05:39:09.840><c> schedule,</c><05:39:10.320><c> you</c><05:39:10.480
• ><c> don't</c><05:39:10.558><c> know</c><05:39:11.200><c> 10</c> depreciation schedule, you don't know
• 10 depreciation schedule, you don't know 10 years,<05:39:11.840><c> 15</c><05:39:12.240><c> years.

Keywords: 1189, house, all

Transcript Highlights:

• Some of the sources of funding for the transportation vehicle fund in a district include state depreciation
• payments to reimburse school districts for a vehicle... ...and a district includes state depreciation

Bills: SB5109, SB5835, SB6065

Keywords: mortgage lending, fraud, prosecution, financial regulations, consumer protection, retirement, lump sum payment, benefits, pension, financial security, SB 6065, school district transportation, transportation vehicle fund, pupil transportation, school buses, electric school buses, zero-emission buses, bus fleet electrification, charging stations, vehicle replacement

Summary: The Appropriations Committee held a public hearing on several bills. Senate Bill 5109 would raise the deed-of-trust surcharge that funds the mortgage lending fraud prosecution account from $1 to $5 and remove the current sunset date. Staff said the change would generate additional revenue for county auditors and the Department of Financial Institutions to contract with prosecutors on mortgage fraud cases. Testimony from King County and the Washington Association of Prosecuting Attorneys supported the bill, arguing the current funding has eroded and the increase would help sustain prosecutions; no opposition was heard. The committee also heard Engrossed Substitute Senate Bill 5500, which would require DCYF’s biennial child care report to include a current cost-of-quality study based on a model developed with the early educator design team, in addition to the market rate survey. Child care advocates, providers, and a Ballmer Group representative supported the bill, saying the market rate survey alone does not capture the real cost of high-quality care and that the measure would improve future funding decisions. The fiscal note estimated a small ongoing general fund cost for DCYF to add survey questions and analysis. Several retirement and human services bills were also heard. Substitute Senate Bill 5834 would broaden use of pension fund interest earnings for fund-protection expenses such as fraud prevention, audits, cybersecurity, and related legal costs, with no fiscal impact reported. Senate Bill 5835 would raise the threshold for DRS to pay a benefit as a lump sum from $50 to $250 per month, with a small systems cost and no actuarial impact. Engrossed Senate Bill 5872 would create the Pre-K Promise Account to receive gifts, grants, and donations for ECAP expansion; supporters from rural health coalitions, Snohomish County, and the Ballmer Group backed the public-private funding mechanism, while DCYF estimated staffing costs to track and administer the account. The committee also heard Substitute Senate Bill 6007, directing WSIPP to study DCYF’s child welfare screening tools and their effects on outcomes, with a projected state cost of about $234,000, and Engrossed Substitute Senate Bill 6019, which would revise home care rate-setting to ensure a larger share of Medicaid rates goes to direct care wages and limit administrative portions to 20 percent. SEIU 775 and a home care worker testified in support, saying the bill would close a loophole and improve caregiver pay. Finally, Senate Bill 6065 would allow school districts in binding conditions or enhanced financial oversight to use transportation vehicle funds more flexibly, including temporary loans or permanent transfers with approval; a rural education advocate supported it as a limited tool for distressed districts. No votes were taken, and the committee adjourned after public testimony on all bills.

Transcript Highlights:

• For decades, Kentucky and many other states have included terminal net salvage and depreciation studies
• 20.159><c> and</c> have included terminal net salvage and have included terminal net salvage and depreciation
• <00:24:21.039><c> studies</c><00:24:21.600><c> and</c><00:24:21.840><c> standard</c> Depreciation studies

Keywords: Convene 00:00 Senate Message 05:04 Orders of the Day 06:01 HB 143 06:11 HB 164 08:07 HB 314 11:07 HB 398 21:17 Motions, Petitions, and Communications 29:02 Introduction of New Bills and Resolutions 34:01 Recess for ConC/Rules Meeting 35:40 ConC/Rules Report 40:15 Floor Amendments 41:15 Adjournment 41:26, 958, all

Transcript Highlights:

• main provisions of the OB3: domestic research and experimental expenditure, business interest, depreciable
• business assets, qualified production property depreciation allowance, and opportunity zones.

Keywords: 995, all

Summary: The House opened with the Pledge of Allegiance and received a resignation letter from Rep. Fana Howard of Lowell, effective March 17, 2026, as she transitioned to the Senate. The chamber then took up several procedural orders, including multiple unanimous or voice-vote suspensions of rules and concurrence with Senate petitions, such as referrals on housing and student transportation matters, and a suspension of Joint Rule 12 for a petition involving children served by DCF. The main substantive item was House No. 5264, a fiscal year 2026 supplemental appropriations bill totaling about $1.8 billion. Members discussed its use of Fair Share surtax surplus funds for transportation and education, including major support for the MBTA, special education circuit breaker costs, early education and child care, snow and ice costs, regional transit authorities, and other deficiencies such as GIC and sheriff costs. Members also explained the bill’s tax conformity provisions responding to recent federal tax changes, with debate over whether to delay conformity to limit state revenue exposure. The House adopted a consolidated amendment to the bill and then passed it to be engrossed by roll call vote, 150-3. The House also adopted a resolution commending the Admetek Foundation on Prostate Cancer Awareness Day. Several local bills were advanced, including a sick leave bank for a Department of Corrections employee, a bill waiving the minimum age requirement for a Boston police officer, a Nantucket charter bill, a Stoneham public safety bill, and a Malden special police officers bill, the last of which was amended before being engrossed. The chamber also considered Amendment 43 to redistribute $100 million of Fair Share revenue more evenly to municipalities for roads and education; supporters argued the current distribution favored statewide priorities over local aid, while opponents said the formula would not adequately address rural road needs. That amendment was rejected 128-25. The House then recessed several times, observed moments of silence for local public servants, welcomed visiting youth sports teams, and finally ordered adjournment to meet the next day at 11 a.m. in informal session.

Transcript Highlights:

• main provisions of the OB3: domestic research and experimental expenditure, business interest, depreciable
• business assets, qualified production property depreciation allowance, and opportunity zones.

Keywords: 1212, all

Summary: The House opened with the Pledge of Allegiance and received a resignation letter from Rep. Vanna Howard of Lowell, effective March 17, 2026, noting her transition to the Senate. The House also adopted several Rules Committee orders extending reporting deadlines for the Health Care Financing and Public Health committees, concurred with Senate petitions referred to House committees, and suspended Joint Rule 12 for a DCF-related petition. The chamber then took up House No. 5264, a $1.8 billion fiscal year 2026 supplemental appropriations bill, which includes Fair Share surtax spending, tax conformity changes tied to federal law, and funding for deficiencies and other immediate costs. A Ways and Means member described major allocations for transportation, education, MBTA reserves and safety, special education circuit breaker costs, early education, and other state needs, while another member argued the tax provisions were needed to address federal changes and protect the state from a large revenue shortfall. The House considered several amendments to the supplemental bill. Amendment 43, which would have redirected $100 million annually from Fair Share funds to a new municipal distribution formula for roads and schools, drew support from members arguing it would provide more equitable local aid and opposition from members who said it would disadvantage rural communities by relying too heavily on population rather than road mileage. The amendment was rejected on a roll call vote of 128-25. A consolidated amendment was then adopted on a roll call vote of 151-2, and the bill was subsequently ordered to be engrossed and passed on a final roll call of 150-3. The House also adopted a resolution commending the Admetek Foundation on Prostate Cancer Awareness Day and passed several other bills, including a sick leave bank for a Department of Corrections employee, a bill waiving the minimum age requirement for a Boston police officer, a Nantucket charter bill, a Stoneham public safety bill, and a Malden special police officers bill as amended. The chamber observed moments of silence for Dennis C. Frayne of Bellingham and Timothy J. McDonough of Norwood, welcomed several guest groups, and recessed multiple times before adjourning to meet the next day at 11 a.m. in informal session.

Transcript Highlights:

• And certainly, does that mean, Senator Weber, that they were able to use accelerated depreciation rules
• that they were able to use um Weber that they were able to use um accelerated<01:30:09.480><c> depreciation
• </c><01:30:10.280><c> rules</c><01:30:11.280><c> they</c> accelerated depreciation rules they accelerated
• depreciation rules they going<01:30:12.360><c> back</c><01:30:12.639><c> and</c><01:30:12.840><c> then
• </c> 10e useful life for depreciation 10e useful life for depreciation purposes<01:30:35.159><c> as</

Keywords: 1187, senate, all

Transcript Highlights:

• In specific, the one on the left really just shows a depreciation of just the purchasing power of CPA
• But regardless, it does show that slow depreciation and trend line downward over the years.
• of just the just shows a depreciation of just the purchasing<01:36:35.560><c> power</c><01:36:36.000
• </c><01:36:52.360><c> and</c> does show that slow depreciation and does show that slow depreciation and
• power uh and two just the depreciating power uh and two just the<01:37:41.840><c> an</c><01:37:42.000

Bills: HF25, HF4

Keywords: pregnancy support, women's health, maternity homes, nonprofit organizations, grant funding, abortion, family services, tax relief fund, budget surplus, surplus revenue, tax rebate, tax refund, one-time refund, income tax, property tax, constitutional amendment, Minnesota Constitution, general fund, budget reserve, taxpayer relief

Transcript Highlights:

• main provisions of the OB3: domestic research and experimental expenditure, business interest, depreciable
• business assets, qualified production property depreciation allowance, and opportunity zones.

Summary: The House convened with the Pledge of Allegiance, received and placed on file the resignation letter of Rep. Vanna Howard of Lowell, and adopted several routine committee reports. These included extensions of reporting deadlines for the Healthcare Financing and Public Health committees, concurrence with Senate petitions sent to Housing and Public Safety and Homeland Security, and suspension of Joint Rule 12 for a petition concerning children involved with DCF. The chamber also adopted a resolution commending the Admetek Foundation on Prostate Cancer Awareness Day. The main business was House No. 5264, a fiscal year 2026 supplemental appropriations bill totaling about $1.8 billion. House leaders described the bill as using Fair Share surtax surplus funds for transportation and education, addressing MBTA reserves, safety and infrastructure, special education circuit breaker costs, early education and childcare, and other deficiencies such as GIC costs, sheriff deficiencies, heating assistance, and World Cup-related expenses. Members also discussed the bill’s tax conformity provisions responding to federal tax changes, with supporters arguing the bill would reduce a projected revenue shortfall and preserve competitiveness while delaying some conformity changes. The House considered several amendments to the supplemental bill. Amendment 43, which would have redirected $100 million of Fair Share funds to a per-capita municipal distribution for roads and schools, drew debate over equity and rural road needs but was rejected on a roll call, 25-128. A consolidated amendment was then adopted on a roll call, 148-0, and the bill itself was passed to be engrossed on a roll call, 150-3. The House also adopted an amendment setting the next day’s meeting time and then adjourned to meet the following day at 11 a.m. in informal session.

Transcript Highlights:

• All items except one were fully depreciated.
• All items except one were fully depreciated. One was a desktop computer.

Summary: The committee opened with prayer, approved the January 8 minutes, and then reviewed education audit reports. The first report concerned Northwest Arkansas Community College, which had two findings: repeat internal control deficiencies that caused material misstatements in the financial statements, and a tuition revenue loss tied to a Workday system issue that failed to charge some students after drop-add changes. College officials said the problems were misclassification and process issues rather than missing funds, described corrective steps including checklists, monthly closing procedures, and approval controls, and attributed some issues to staffing turnover and the Workday implementation. Members asked about accountability, staffing, and whether students should have been billed; the report was filed as reviewed. The next report was Cedarville School District, where auditors found improper personal credit card charges of $794 by a former elementary teacher. The employee reimbursed the district, and the matter was referred to law enforcement, the prosecuting attorney, the attorney general, and the Professional Licensure Standards Board. Members asked whether any licensing action would follow, but staff said they were only aware that no further action had been taken by the board. The final finding was for West Memphis School District, which had a repeat capital assets issue involving failure to capitalize $851,000 in construction expenditures for a baseball-softball complex, along with other asset-recording and inspection discrepancies. The superintendent said the district had recently begun using Arkansas Legislative Audit for the first time after previously using a private CPA firm, and described new controls such as multi-level purchase approval, tagging, separation of duties, and inventory cleanup. Members questioned why the district had not been audited publicly before and how private audits are handled; staff explained that private audits are still reviewed and findings come before the committee. The report was filed as reviewed. The meeting ended with notice that 28 school districts had no findings and then adjourned.

Transcript Highlights:

• do with them in Boone County is when we have a house that is in bad shape, we will increase the depreciation
• We will increase the depreciation on it, bring the value down, the physical destruction.

Keywords: 959, house, all

Transcript Highlights:

• Much more difficult to estimate, and a lot of it has to do with depreciation.
• there's some substantial impact here in the first year or two when full expensing and full bonus depreciation
• Or two when full expensing and full bonus depreciation is restored.

Keywords: 908, all

Summary: The Budget Section Leadership Division met with a quorum and approved the March 18 minutes. The committee first heard an update from the Petroleum Council on oil and gas activity in North Dakota. Ron Ness said production is expected to remain relatively flat at just under 1.2 million barrels per day, with efficiency gains and longer laterals helping offset lower rig counts. He discussed oil and gas prices, gas taxation, flaring concerns, northward movement of drilling activity, and the importance of new infrastructure and enhanced oil recovery (EOR) pilots. Members asked about gas taxation, natural gas liquids, pipeline impacts, and the outlook for Continental and other operators. Ness said the industry is likely to remain steady rather than see a major ramp-up or decline. Matt Pearl of the State Tax Department then explained the federal “big beautiful bill” and its effect on North Dakota income tax collections. He said the law extends or makes permanent several federal provisions and creates temporary deductions for seniors, tips, overtime, and auto loan interest, with the biggest state impact coming from the standard deduction increase and business tax changes. He revised earlier estimates downward, saying the net cash impact on state collections is likely in the $30 million to $35 million range after accounting for business prepayments and one-time FY25 oilfield transaction effects. Committee members asked which provisions apply to standard versus itemized returns. OMB staff gave a detailed update on major capital projects and facility funding. Topics included Capitol grounds improvements such as 18th-floor renovations, wayfinding, seating, lighting, tree management, and restroom and lobby upgrades; security work at the governor’s residence, which has been delayed by the discovery of human remains; and space reconfiguration efforts in Bismarck-Mandan to reduce leases and create shared offices and conference rooms. They also reported on the State Facility Maintenance Fund, including roof, window, boiler, and kitchen projects at state facilities, and on the state hospital project in Jamestown, which remains on budget and on schedule for substantial completion in winter 2027 and opening in spring 2028. OMB also updated the committee on the Minot North Central State Office Building, the use of federal State Fiscal Recovery Funds, and the status of legislative intent and trust fund reports, including school aid turnback, the school construction loan program, the Foundation Aid Stabilization Fund, the Legacy Fund, and the Strategic Investment and Improvements Fund. The committee ended by discussing future agenda items, including government efficiency, cash management, Bank of North Dakota lines of credit, and the rural health transformation program, and then adjourned.

Transcript Highlights:

• Much more difficult to estimate, and a lot of it has to do with depreciation.
• there's some substantial impact here in the first year or two when full expensing and full bonus depreciation
• Or two when full expensing and full bonus depreciation is restored.

Summary: The Budget Section Leadership Division met with a quorum present and approved the March 18 minutes. The committee first heard an update from the Petroleum Council on oil and gas activity, which described North Dakota production as holding steady around 1.1 to 1.2 million barrels per day despite lower prices and market volatility. The presentation emphasized that efficiency gains, longer laterals, and improved completion technology are allowing operators to sustain output while activity shifts north in the Bakken. Members asked about gas taxation, natural gas liquids, flaring, and enhanced oil recovery; the witness said gas is taxed by volume, most liquids are handled through oil lines or gas processing, and the state’s EOR pilot projects and new gas infrastructure are intended to help hold production flat and expand future recovery. The committee then received a presentation from the Tax Department on the federal “big beautiful bill” and its effect on North Dakota income tax collections. The department explained that most of the federal changes were extensions of existing Tax Cuts and Jobs Act provisions, but several items — including the larger standard deduction, senior deduction, tip and overtime exclusions, auto loan interest deduction, and business expensing changes — affect state collections. Revised estimates showed a smaller-than-expected impact on individual income tax, with the department suggesting a net cash effect in the range of roughly $30 million to $35 million when business and individual effects are combined, plus a possible one-time distortion from large oil-field transactions in fiscal year 2025. Members asked which provisions apply to standard versus itemized returns, and the department clarified that most of the individual provisions apply broadly, while the SALT-related item is itemizer-specific. OMB then reported on major capital projects and facility funding. Updates included Capitol grounds improvements such as 18th-floor renovations, wayfinding, augmented reality displays for the Rough Rider Hall of Fame, tree management and lighting studies, and restroom and parking reconfiguration in the tower. OMB also described security upgrades at the governor’s residence, where human remains were discovered on site and are being handled with historical and legal review. The state hospital project in Jamestown remains on schedule for substantial completion in winter 2027 and opening in spring 2028, with costs currently estimated a little over $292 million and a line of credit expected to be drawn in April 2027. The North Central State Office Building in Minot is under construction, with a $5.6 million line of credit already accessed. OMB also reported on the State Facility Maintenance Fund, noting about $1.1 million spent so far on projects such as the Liberty Memorial Building roof and foundation work, Capitol window replacement, boiler replacement, and kitchen remodeling. Finally, Legislative Council staff reviewed the interim compliance report on legislative intent and state trust funds. The report highlighted the status of multiple lines of credit, including those for the state hospital and Minot office building, and noted that the executive budget will likely need to include repayment planning for about $350 million of expected outstanding balances. Other updates included the Bank of North Dakota profit transfer schedule, litigation pool spending, the new Office of Guardianship and Conservatorship, the Missouri River Correctional Center planning effort, HHS items such as FMAP and child care assistance, Job Service’s unemployment insurance modernization project, and DPI school aid turnback estimates. No formal votes were taken beyond approval of the minutes.

Transcript Highlights:

• of certain income of controlled foreign corporations and subtracting amounts deducted for bonus depreciation
• of certain income of controlled foreign corporations and subtracting amounts deducted for bonus depreciation
• of certain income of controlled foreign corporations and subtracting amounts deducted for bonus depreciation

Keywords: 996, all