Transcript Highlights:

• This shows the impact.
• And then the impact of the legislation in 2020, those two five-cent increases, and then the impact of
• the CPI-U inflation factor.
• The table below shows the financial impact from those changes.
• Yes, and then it was indexed to whatever inflation the inflation rate is.

Committee: House Transportation

Summary: The Assembly Transportation Committee first took up three highway memorial naming resolutions on its consent calendar: ACR 109, SCR 78, and SCR 90. The committee approved the consent calendar on an 11-0 vote, with the roll not held open. The chair also recognized committee science fellow AJ Mendeola for his service before adjourning the bill-hearing portion and moving to an informational hearing. The informational hearing focused on alternatives to the gas tax and how other states are responding to declining fuel-tax revenue. A first panel of researchers and policy experts described the erosion of gas-tax receipts due to inflation, improved fuel efficiency, and growth in electric vehicles, and compared options such as EV registration fees, kilowatt-hour charging fees, delivery fees, transportation network company fees, managed lanes, and road usage charges. Witnesses generally said road usage charges best preserve the user-pays principle, but they also emphasized that implementation costs, privacy concerns, and public understanding remain major obstacles. Committee members raised concerns about fairness for commuters, low-income drivers, and EV adoption, while some members argued a mileage-based system could amount to a new tax unless the gas tax is actually repealed. The second panel featured state officials from Hawaii, Utah, Oregon, and Virginia describing their programs. Hawaii said it launched its road usage charge program on July 1, 2025, using existing safety-check and registration systems, with EV owners initially choosing between a per-mile charge and a flat annual fee before mandatory EV participation begins in 2028 and a broader transition plan is due by 2026. Utah described its voluntary EV road usage charge program, annual flat fee option, quarterly reporting, privacy protections, and recent cost reductions as enrollment grows. Oregon began outlining its structural funding challenges and constitutional cost-responsibility framework, while the hearing overall underscored that states are experimenting with different approaches but have not settled on a single replacement for the gas tax.

Transcript Highlights:

• We're expecting inflation to continue to trend down.
• A change to factors that they can control is impacting the supply, which then has impacts on our price
• And so really, there's weather impacts.
• Inflation affects our budget. How will inflation and the investment income be taken into account?
• Part of it at least is predicated on inflation.

Committee: House House Appropriations & Finance

Transcript Highlights:

• But this isn't inflation. It's a percentage.
• It's evaluated in real time, and it's going to reflect today's inflated price.
• Do you have a fiscal impact for this? Thank you very much.
• Since the funds already exist, there's not a fiscal impact.
• So I was looking for my fiscal impact statement.

Bills: HB3044 , HB3465 , HB3625 , HB3704 , HB3759 , HB3920 , HB3972 , HB4191 , HB4311 , HB4426

Committee: Senate Revenue and Taxation

Summary: The Senate Revenue and Taxation Committee considered several House bills dealing with tax credits, fee changes, school funding, and investment authority. House Bill 4426 extended the sunset on the SIDE tax credit to December 31, 2032, and passed 7-2. House Bill 3704 elected Oklahoma into the federal income tax credit for contributions to scholarship-granting organizations and passed 9-2. House Bill 4311 raised the unclaimed property division’s administrative fee from 4% to 6% to cover increased duties and costs; it passed 8-3 after debate over whether the increase was justified. House Bill 3044 reauthorized the veterans income tax checkoff and the associated capital improvement fund, and passed 10-0. House Bill 4191 revised the Smaller Employer Quality Jobs Act by lowering job thresholds, expanding qualifying locations and industries, and changing other eligibility rules; it passed 6-4. House Bill 3465 extended the emission tax credit sunset from July 1, 2027 to July 1, 2029 and passed 6-4, with opponents arguing it subsidized compliance with federal mandates. House Bill 3972, a title-off bill addressing ad valorem reimbursement issues tied to the state purchase of a prison, drew extensive debate over precedent and scope; an amendment to add a sunset failed 5-5, and the bill then passed 8-2 as amended.

Transcript Highlights:

• per capita, per person in the state, and, of course, how much inflation is occurring.
• This has impacted our ability to maintain and improve public safety services.
• Whatever the inflation rate is, we get no TRE, no calculations, no whatever.
• We get the inflation rates in years when it's over 2.5%.
• For one thing, inflation, I mean, as we know, it's touching 3% now. And as Mr.

Bills: SB9 , SB 9

Committee: Senate Local Government

Transcript Highlights:

• If the personal needs allowance had kept up with inflation when it was last increased, it would be at
• If it had kept up with inflation when it was last increased, it would be at least $113.42 today.
• And there doesn't seem to be any quick fix for inflation, yet people have to make much more difficult
• amount of $113 and then adjust further for inflation after that.
• And indexing it to inflation means that the legislature won't need to revisit this each year.

Committee: Joint Joint Committee on Health Care Financing

Summary: The Joint Committee on Health Care Financing held a public hearing focused largely on senior long-term care issues, family caregiving, post-acute care access, and direct care workforce pay. Testimony strongly supported bills to raise the personal needs allowance for nursing home and rest home residents (including H. 1411, S. 482, and related bills), with speakers from Mass Senior Action, Dignity Alliance, nursing home residents, providers, and former state officials arguing that the current $72.80 monthly allowance has been unchanged since 2008 and is inadequate for basic items like clothing, toiletries, haircuts, and transportation. Witnesses also backed bills to increase MassHealth asset and income limits for seniors and to stop counting life insurance as cash, describing the current rules as outdated and harmful to low-income elders. The committee also heard testimony on bills allowing family members, including spouses and guardians, to be paid caregivers (H. 1394/S. 886), with supporters saying this would help families keep loved ones at home and reduce reliance on costly institutional care. Another set of bills (H. 1412/S. 903) drew support from a physician who said clearer MassHealth communication and improved post-acute care determination processes would help reduce delays and backlogs for patients awaiting skilled nursing, rehabilitation, or other post-acute placement. Several speakers emphasized that better home- and community-based care can prevent hospital readmissions and support independence. A major portion of the hearing focused on S. 877, which would establish an enhanced care worker minimum wage of $25 per hour, indexed to inflation, for certain home care and human services workers. Union representatives and direct care workers from SEIU Local 509, 1199 SEIU, and the AFL-CIO described severe staffing shortages, burnout, low wages, and high turnover across home care, mental health, disability services, and crisis response. They argued that higher pay is necessary to recruit and retain workers and to stabilize services for vulnerable residents. Committee members asked about costs, comparisons with other states, and whether non-wage incentives could help, but witnesses repeatedly said wages were the central issue. The hearing concluded after all registered testimony was heard, with the committee noting it would continue accepting written testimony and then adjourning.

Transcript Highlights:

• And I think the important thing is... how much fraud has impacted how much fraud has impacted >&gt
• So those negative impacts, I think you're seeing in this, and as you heard from Dr.
• Becker, those impacts are still yet to be seen.
• We heard in the presentation the federal impact wasn't as bad as it could have been.
• ><c> over</c><00:19:05.200><c> the</c> adding in inflation, going over the adding in inflation, going

Transcript Highlights:

• If inflation is more than 5% now, the school gets less, or taxing entity gets less than the rate of inflation
• Should inflation be over 5%? That is correct. Okay.
• Well, it may have a positive impact on the payment of their Well, it may have a positive impact on the
• That is the biggest driver of inflation.
• If it's gone up 5%, if inflation is gone, ...comes in, right?

Summary: The House met after a quorum call and several members introduced job shadows, interns, and 4-H guests. Once 93 members were present, the chamber moved to House Bills for Perfection. House Bill 1707 was taken up first and amended with a title change; sponsors said it would stop the Department of Revenue from taxing credit card processing fees charged to vendors. Members described it as a small-business measure, and the bill was ordered perfected and printed as amended. The House then considered House Committee Substitute for House Bill 2819, which would authorize rounding cash sales to the nearest five cents in light of the penny’s elimination. Supporters said it would give businesses clear authority to round and avoid compliance problems or lawsuits. The substitute was adopted and the bill was ordered perfected and printed. House Committee Substitute for House Bill 2103 followed, a property-fraud and notary-fraud bill that would require warning signs in recorder offices, increase penalties for false filings and notary-related fraud, and raise fines for notary seal vendors. Supporters said it was aimed at deterring deed fraud and protecting homeowners; some members questioned whether it went far enough or whether it could burden honest notaries. The substitute was adopted and the bill was ordered perfected and printed. House Bill 1800, dealing with the Hancock Amendment inflationary growth factor for property tax assessments, drew the most debate. An amendment changed the title and another amendment lowered the cap on revenue growth from 5% to 3% when inflation exceeds that level. Supporters argued it would help taxpayers keep more of their money; opponents warned it would reduce funding for schools, fire districts, ambulance districts, libraries, and community colleges and could force more frequent ballot measures. The amendment and the bill were both adopted, and the bill was ordered perfected and printed. House Committee Substitute for House Bill 2600, which would create a clearer process for ambulance district consolidation and improve rural EMS access, was also amended to preserve county commission authority over subdistricts, allow at-large districts in some cases, require voter approval for mergers, and tighten timing and election procedures. Members said the changes would help struggling ambulance districts while keeping local control, and the substitute was adopted and ordered perfected and printed. The House then adjourned after announcements about upcoming committee meetings and events.

Transcript Highlights:

• But you've seen what inflation does.
• What inflation does.
• And sometimes... ...curious about is we talk a lot about inflation, and sometimes we feel like inflation
• there's real inflation.
• It's not impacting the MFP payments to the locals.

Summary: The committee met to review budget and fiscal items, beginning with a roll call and a reminder about severe weather and the need to keep the meeting brief. Members first received the January fiscal status statement and certified the prior-year surplus at $577,073,871, with no changes from the prior month. The fiscal status statement was approved without objection. Staff then reviewed the five-year baseline budget and continuation/standstill budgets, noting projected imbalances in later years driven by revenue declines, including the redirection of motor vehicle sales tax, and by rising costs such as inflation and Medicaid adjustments. Representative Amadee asked about Medicaid growth and SNAP administrative costs, and staff explained that the SNAP federal match change is separate from Medicaid. The governor’s executive budget presentation focused on a third year of standstill budgeting, efficiency savings, and the impact of one-time reductions and agency reorganizations. Officials said the budget avoids recurring spending from nonrecurring revenue and incorporates savings from prior efficiency efforts. Major items discussed included funding for LA Gator vouchers, the high-impact jobs program at Louisiana Economic Development, DCFS modernization, corrections overtime and offender costs, Angola population growth, nursing home and MCO adjustments at LDH, and additional support for the MJ Foster Scholarship and Board of Regents systems. Members also discussed the distinction between state general fund and federal funds, the effect of inflation on specific purchases, and the use of surplus dollars, including deposits to the Budget Stabilization Fund and UAL paydown. No formal action was taken on the budget presentation. Later items included the FY27 expenditure limit calculation of $20.1 billion, up $953 million from FY26, and the annual comprehensive financial report, which received an unmodified audit opinion. The committee approved a BA-7 increasing federal funds for the governor’s office by $2 million for U.S. DOT-related infrastructure and rural transit work. It also approved Facility Planning and Control requests to add five higher education deferred maintenance projects and to combine two Baton Rouge Community College projects. CPRA received approval to extend contracts with Coastal Estuary Services and Access Sciences for monitoring and records-management services. The committee also approved a legislative intent clarification for a $500,000 appropriation to the New Orleans Recreational Development Foundation. The final major discussion was a presentation on a weighted caseload study for appellate and district courts. Judicial officials explained that the study updates an outdated formula used to assess judgeship needs, incorporates specialty courts and commissioners, and is intended as one tool in a broader collaborative process with the legislature. Members raised concerns about the number of judges, court funding, and how Louisiana compares with other states. No vote was taken on the study, but the discussion emphasized future collaboration on judicial resource allocation and possible structural changes.

Transcript Highlights:

• It is practical, targeted, and impactful.
• we still lagging inflation over that 15-year period?
• all sectors; there's a Overall economic inflation, it's an average across all sectors.
• So they look at them both, but it won't impact, we anticipate that there will be no impact to our GEO
• Our industry produces an economic impact to the Commonwealth of over $1 billion annually.

Committee: Joint Joint Committee on Bonding, Capital Expenditures and State Assets

Summary: The Joint Committee on Bonding, State Assets, and Capital Expenditures held its first public hearing on House Bill 4257, a transportation bonding bill. The administration testified in support, describing the bill as a $1.185 billion authorization: $300 million for Chapter 90 municipal road funding and $885 million for statewide transportation capital programs. Officials said the bill would increase municipal aid by 50%, with $200 million distributed under the traditional Chapter 90 formula and $100 million based solely on road mileage to better help rural communities. They also highlighted $500 million for bridge and pavement lifecycle asset management, $200 million for culverts and small bridges, and $185 million for congestion, safety, ADA, sidewalk, and multimodal improvements. Committee members asked about how municipalities would apply, how the road-mile formula would affect rural towns, and how the bill would interact with federal funding uncertainty and debt financing. Administration witnesses explained that projects would be administered through MassDOT district offices and Grant Central, that the bill would not backfill rescinded federal funds, and that the proposal would likely use special obligation bonds backed by Fair Share revenues to reduce pressure on the Commonwealth’s general obligation debt limit. Members also pressed the administration on the shift from general obligation to special obligation financing and on whether the Chapter 90 increase keeps pace with inflation. Administration officials said the special obligation structure would be credit-rated separately and was intended to expand available capital without affecting the GO bond cap, while acknowledging that the Commonwealth’s debt portfolio would grow. They said the Chapter 90 increase would roughly restore purchasing power lost since 2012, though construction inflation has outpaced general inflation. Several members and witnesses emphasized the importance of the road-mile formula for rural communities and the need for technical assistance for small towns. The Massachusetts Municipal Association testified in strong support of the bill, calling Chapter 90 and the new infrastructure authorizations critical for cities and towns facing federal uncertainty and rising costs. The Massachusetts Aggregate and Asphalt Pavement Association also supported the bill, citing the importance of the funding for road and bridge work, the construction season, and the industry’s economic impact. A committee member asked about asphalt price inflation, and the witness said liquid asphalt costs rose sharply after COVID, including increases of around 20% in some years. At the end of the hearing, the chair said members would receive a poll by email to move the bill out quickly, and the committee then voted to adjourn.

Transcript Highlights:

• But I would just argue that actually all farms continue to face the same impacts, and it could impact
• More studies are definitely needed to understand the regional impacts as well as the sector-wide impacts
• Some of the inputs are more impacted by inflation; some of them are not as much.
• an impact.
• And in times of drought, we see not just the impacts of the lack there, we see not just the impacts of

Summary: The joint informational hearing of the Assembly Committees on Economic Development, Growth, and Household Impact and Agriculture, held at Fresno State, focused on cost pressures in California’s food system, household affordability, and the Central Valley’s role in agriculture. Opening remarks emphasized Fresno State’s regional importance, the Central Valley’s outsized contribution to food production, and the connection between agricultural health, food security, and the broader economy. Members also noted the impact of the federal shutdown on CalFresh benefits and the state’s efforts to respond with food assistance funding and National Guard support for food banks. The first panel featured academic and policy experts who described agriculture’s economic importance in the San Joaquin Valley and the rising pressures on farms and households. Dr. Conduro highlighted agriculture’s large share of regional GDP, farm receipts, jobs, exports, and food manufacturing, while identifying water scarcity, SGMA-related land fallowing, labor shortages and rising labor costs, market volatility, invasive pests, and production cost inflation as major barriers. Caroline Danielson of PPIC said food prices remain about 30% above 2019 levels, food insecurity affects about 1.8 million California households, and nutrition programs such as CalFresh, WIC, and school meals are essential in reducing poverty, especially in the Central Valley. Susie Pryor of the Central California Small Business Development Center described technical assistance, capital access, and training for small food and farm businesses, while warning that reduced funding limits support for rural and immigrant entrepreneurs. The second panel brought testimony from a small produce business owner, a food entrepreneur, and the Fresno County Farm Bureau. They said input costs for fertilizer, fuel, irrigation, labor, land leases, and compliance have risen sharply while commodity prices have remained flat or fallen, squeezing small farms and food businesses. Panelists stressed the need for small-batch processing facilities, local supply chains, education on food manufacturing compliance, land access for small farmers, and more pathways into agriculture through trade programs, community colleges, and FFA. Ryan Jacobson said California agriculture is facing a prolonged downturn, with farm bankruptcies, weak commodity prices, export-market uncertainty, water reliability problems, and costly ag-burning rules all contributing to financial strain. No formal votes or legislative actions were taken; the hearing was informational and concluded with discussion of possible policy solutions and continued engagement with stakeholders.

Transcript Highlights:

• Because any one of those economists will tell you the impact on inflation, on the speed of the economy's
• Because any one of those economists will tell you the impact on inflation, on the speed of the economy's
• Economists will tell you the impact on inflation, on the speed of the economy's growth, and everything
• It does have an impact on the state economy.
• The impact of a loss of huge chunks of employees does have an impact on the state economy.

Transcript Highlights:

• We're expecting inflation to be a little. More stubborn to come down.
• we're already impacting or expecting.
• And if you take into account inflation, it's certainly negative.
• And when you take inflation into account, that's likely negative.
• This chart shows inflation heading in the wrong direction.

Transcript Highlights:

• ><c> if</c><00:11:25.360><c> and</c><00:11:25.920><c> the</c> inflation index that if and the inflation
• </c><00:34:10.879><c> after</c> and until adjusted for inflation after and until adjusted for inflation
• Every ounce of cost, high impact.
• . um doesn't impact safety facility. um doesn't impact highway<02:00:41.119><c> or</c><02:00:41.360><
• </c> the state negatively impacted. the state negatively impacted.

Committee: Senate Transportation

Transcript Highlights:

• And we've had this conversation impact.
• And my that this will be the impact.
• </c> any number of inflation factors. any number of inflation factors.
• And that's my last pink card and I impact us. And impact us.
• </c> reasonable increases based on inflation reasonable increases based on inflation and<01:25:23.199

Committee: House Municipal and County Government

Transcript Highlights:

• The fiscal impact to the state would be an additional $7 to $9 million without any impact on employers
• At first, uh, the impact is positive.
• Unfortunately, there's also those negative impacts.
• At first, uh, the impact is positive.
• Uh, any impact, impacts there to their, maybe their workforce participation rates and that type of thing

Committee: House Business

Summary: The committee held a study on the potential effects of living wage or minimum wage laws in Oklahoma, with the chair emphasizing that the discussion was not intended to advocate for or against State Question 832. The first panel focused on economic and workforce impacts. An Oklahoma Department of Commerce representative argued that living wage calculations vary by region and household type, that Oklahoma’s average wages are already near or above many living-wage estimates, and that higher mandated wages could lead employers to cut hours, reduce hiring, automate, or avoid expansion, especially in rural areas where childcare, healthcare, broadband, and infrastructure constraints also affect labor participation. Committee members asked about wage distributions, rural cost differences, training pathways, and whether higher wages might draw workers or businesses out of state; the witness said many low-wage workers move up over time and that Oklahoma has seen net in-migration. A State Chamber Research Foundation witness then testified that a $15 statewide wage floor would raise payroll costs substantially, especially for small rural employers, and cited examples from California and Seattle to argue that higher wages can reduce hours, jobs, and benefits while increasing consumer prices. She suggested alternatives such as expanding the state earned income tax credit and promoting upskilling through existing education and training programs. A Missouri Chamber of Commerce and Industry representative described Missouri’s recent voter-approved minimum wage increase to $13.75, rising to $15, along with paid sick leave provisions. She said the chamber opposed the measure because it would raise business costs, hurt rural communities and youth employment, and force some employers to cut hours, reduce hiring, or close. She cited examples from Missouri businesses facing significant added costs and warned that a future ballot initiative could create a patchwork of local minimum wages. In response to questions, she said Missouri’s law did not distinguish by age or industry, that businesses had raised concerns about union contracts and compliance, and that the chamber viewed the measure as harmful to competitiveness. Peter Hansen of NFIB presented the final major testimony, summarizing an NFIB study projecting that a higher Oklahoma minimum wage would produce some short-term GDP gains but longer-term losses, with GDP turning negative by the early 2030s and job losses growing over time. He said businesses respond to higher wage mandates by raising prices, trimming jobs, converting full-time positions to part-time, reducing benefits, and shifting investment toward automation or other capital. He argued that the burden falls most heavily on vulnerable workers such as young or marginal employees, who are less likely to be hired when labor costs rise. In questioning, he acknowledged that higher wages can improve pay for some workers and may have some short-term positive effects, but maintained that the long-term employment and investment effects are negative. No votes or formal actions were taken in the meeting.

Transcript Highlights:

• The A3 amendment would inflation.
• The impact of this is simple.
• The impact of this is simple.
• </c> that most directly impacts students. that most directly impacts students.
• The formula inflator. With 2023, the historic piece for us was the formula inflator.

Committee: Senate Education Finance

Transcript Highlights:

• Inflation, as I've testified before, inflation has been at a record level over the past four to five
• Annual project awards adjusted for inflation, annual project awards have increased 27%.
• just the surface condition, you're beginning to impact the base.
• But these are heavily impacted by trucks and getting on industrial.
• And I think part of that is also related to, as we referred to the inflation, as...

Committee: House S/C on Transportation Funding

Transcript Highlights:

• Whenever these... things are going in, it has a real impact.
• Sort of impacts of the technology on their agencies. Next slide, please.
• Who is being impacted by that? What, you know, Joe Smith or whomever it may be?
• Due to this, it would recuperate about half of the real value lost to inflation.
• not otherwise impact the state's ranking among weight-distance taxes.

Transcript Highlights:

• So what is the impact on California? I think there are impacts to every single Californian.
• What's the impact assessment?
• You mentioned that the impact of $217 per year was going to impact residents.
• is the mechanism, then the underlying inflation calculation happens on the actual inflation.
• And if it's inflation, then bring us an inflation proposal.

Summary: The subcommittee heard an extensive presentation on the administration’s housing reorganization proposal, which would centralize multifamily affordable housing finance under the new Housing Development and Finance Committee (HDFC) and align it with the Governor’s trailer bill language. Administration officials said the plan is intended to create a one-stop application and award process, reduce duplicative timelines and costs, and pair state subsidy with private activity bonds and federal tax credits more efficiently. They also described proposed changes to the Affordable Housing and Sustainable Communities program, including shifting a larger share of funding toward housing-related awards while preserving a portion for sustainable communities investments. The Legislative Analyst’s Office generally supported the streamlining concept but recommended changes to the proposed bond set-aside timing and urged flexibility for integrated applications and future reporting on demand. Senators, especially Senator Cabaldon, raised concerns that the proposal could weaken the original climate-and-transportation purpose of the sustainable communities program and that the reorganization would be undercut by the lack of new housing production funding in the budget. The item was held open without a vote. The committee then received a report from the California Debt Limit Allocation Committee and the California Tax Credit Allocation Committee on federal and state housing tax credits. Staff explained that the federal H.R. 1 change lowering the bond-financing threshold from 50% to 25% greatly expanded the number of projects able to use the 4% federal tax credit, allowing California to fund many more projects and units. They also described the state low-income housing tax credit as an important gap-filling tool for projects that still need additional subsidy, and noted existing set-asides for rural, homeless, at-risk, and extremely low-income projects. Members discussed rehabilitation as well as new construction, and the item was informational only. Finally, the Civil Rights Department reported on the effects of federal civil rights policy changes and on three programs facing expiration: California vs. Hate, the Community Conflict Resolution Unit, and Investigations and Conciliation Enhancement. Director Kevin Kish said federal cuts and policy shifts have reduced support for fair housing and other civil rights functions, while CRD’s caseload has grown from about 8,700 open matters a year ago to more than 12,000, with a six-month wait for interviews despite overtime triage efforts. Senators expressed strong support for continuing the programs and concern about the broader federal rollback of civil rights enforcement. The department said it is using overtime, intake triage, and outreach partnerships to manage the workload and direct Californians to appropriate state, local, and nonprofit resources.

Transcript Highlights:

• The teacher in the classroom is the single most important. school factor impacting student outcomes.
• This is unadjusted for inflation.
• It would have been helpful for us to have the inflation adjusted chart given that I think inflation has
• is just barely accounting for inflation itself.
• I know you don't include inflation here.

Committee: House Appropriations