Transcript Highlights:

• Now, moving to the Governor's January budget, we are really happy with the proposed budget, particularly
• but the budget-year targets.
• Given all of your budget challenges, you can figure out if you'd like to do that in the budget year.
• loan from the 2025-2026 budget.
• loan from the 2025-2026 budget.

Keywords: 988, house, all

Transcript Highlights:

• Uh, discussion-only budget topics.
• And I think last year, if I recall correctly, in budget year, in the last budget cycle,...
• </c> additional budget request for a moment. additional budget request for a moment.
• </c> budget request that's in play. budget request that's in play.
• </c> properties uh within your budget unit. properties uh within your budget unit.

Keywords: Meeting Start 00:00:00 Cabinet for Health and Family Services 00:00:30 Kentucky Department of Education 00:27:10 Education and Labor Cabinet 00:31:35 Auditor of Public Accounts 00:36:55, 958, all

Transcript Highlights:

• , the capital budget is constrained... ...where we never were able to even budget to try to address the
• Does the House budget cover it?
• The governance budget.
• So it was built into our FY 25 budget, and it's built into our FY 26 maintenance budget. Thank you.
• So our fiscal year 2025 budget, current budget, is $2,201,861.

Keywords: 995, all

Summary: The hearing was held in Clinton Town Hall as part of the Joint Committee on Ways and Means’ budget review, with local officials welcoming legislators and noting the long agenda of many panels. The main presentation was from Secretary Terrence Reedy of the Executive Office of Public Safety and Security, who outlined the Healey-Driscoll administration’s FY26 proposal for the secretariat, including a $1.7 billion budget and a 7% increase over FY25. He described investments in emergency preparedness, hate-crime prevention, reentry programming, technology modernization, internships, and public safety training, while also noting some reductions driven by resource constraints, including cuts to certain grant programs and administrative costs. Committee members also raised concerns about federal uncertainty and how it could affect state budgets and public safety planning. A major portion of the questioning focused on the Department of Correction. Secretary Reedy and Commissioner Sean Jenkins said the biggest challenges are staffing, officer wellness, facility safety, and contraband—especially K2. They described steps taken at MCI Souza and other facilities, including reducing population at the maximum-security unit, changing management, removing metal products and free weights, improving screening and roll calls, adding a rapid response team, and increasing investigative and technological efforts to combat K2. They also discussed the closure of MCI Concord, saying it was driven by high maintenance costs and staffing needs, and explained that savings are being used to improve staffing patterns and address deferred maintenance over time rather than producing immediate large budget reductions. Members also questioned the budget’s impact on police training and community policing. The administration defended the increase in police academy tuition from $3,200 to $6,000 as reflecting true training costs and said it would still be subsidized by the state, while acknowledging the burden on small municipalities. They said the MPTC is expanding regional training and considering proposals such as Greenfield Community College’s. On community policing, officials emphasized uniform statewide training, de-escalation, and communication skills. The State Police also announced an outside review of the academy by the International Association of Chiefs of Police and said the next class will be split into two smaller groups to improve oversight and allow quicker implementation of recommendations. Other topics included ICE and federal immigration enforcement, with Reedy saying state law prohibits Massachusetts law enforcement from acting in a civil immigration capacity and that no state dollars were used in the Tufts-related ICE operation mentioned by a member. Senators and representatives also raised the upcoming FIFA World Cup, warning that it will require significant public safety resources and likely federal funding. Additional discussion covered restorative justice and juvenile diversion, health care costs in DOC, electronic health records, and the need for more diverse and culturally competent public safety staffing. No votes were taken during the hearing.

Transcript Highlights:

• We'll call the Budget Section, Commerce and Legal Service.
• We have two budgets. This committee has two budgets.
• We have two budgets. This committee has two budgets. We're going to hear Commerce today.
• We're going to talk about the base budget.
• or the starting point for each agency's budget.

Summary: The Budget Section’s Commerce and Legal Services division met to review the Department of Commerce base budget and current program activities for the 2027-29 biennium. Legislative Council staff first walked through a new “blue sheet” summary explaining what is included in Commerce’s base budget, with emphasis on salaries, operating costs, and especially grant authority funded largely by federal dollars. Members asked about how grant funding is coordinated across agencies, and staff noted that some programs, such as LIHEAP and UAS-related work, involve interagency collaboration and federal budget authority that may not match exact cash received. Commerce Commissioner Chris Schilke then presented on grant administration, the department’s transparency page, and several grant programs, including Destination Development and Automate ND. Members questioned how many entities apply for grants, what criteria are used, whether return on investment is tracked, and how long grant awards take to reach recipients. A lengthy exchange followed over whether Commerce must follow state procurement law or instead administer grants using its own “best practices” process; the commissioner said the department’s approach was based on legal guidance and competitive grantmaking, while some legislators argued the process should more closely reflect legislative intent. The department also highlighted the North Dakota Development Fund, child care loans, and workforce initiatives. Commerce described Development Fund investments, including examples of successful projects and a child care loan program that has supported 43 active businesses serving 3,754 children. Staff also outlined a new non-primary-sector lending framework and said a workforce and housing sub-cabinet are working on more coordinated statewide strategies. Workforce Director Katie Ralston Howell presented a broad workforce-system assessment, a new shared vision, and task forces focused on simplifying entry, improving warm handoffs, and building a public dashboard of shared metrics; members discussed higher education alignment, career pathways, and the need for better handoffs from schools to employers. No formal votes were taken, and the meeting ended with plans to continue these budget discussions in June, including the Attorney General budget.

Transcript Highlights:

• </c> person and recognize the budget person and recognize the budget situation<00:24:30.480><c> that<
• But to end this budget year without having done anything in the budget on the top priority of the governor
• But to end this budget year without having done anything in the budget on the top priority of the governor
• </c><00:32:44.320><c> They</c><00:32:44.480><c> see</c> budget cuz they see the number.
• They see budget cuz they see the number.

Keywords: 1191, senate, all

Transcript Highlights:

• The state budget has followed Since Florida began recovering from the pandemic, the state budget has
• budget deficit beginning just next year.
• So this is the State Administration Budget Subcommittee's recommended budget for the This is the State
• Administration Budget Subcommittee's recommended budget for the fiscal year 2025-2026.
• budget.

Summary: The State Administration Budget Subcommittee met for budget day, heard agency follow-up questions, and then presented its recommended budget for fiscal year 2025-2026. Chair Lopez opened with remarks about reducing spending, emphasizing vacancy reductions and recurring savings across agencies. The recommendation eliminated 452.5 vacant positions and produced recurring savings of $57.2 million overall, while still funding selected priorities. Notable funded items included $500,000 for a new DBPR website for condominium complaints and document filing, $481.3 million for the MICEF Florida Home Program in DFS, funding for Florida PALM implementation, $330,000 for a Tampa office in the Office of Insurance Regulation, $835,000 for warehouse space for confiscated gambling machines, $821,000 for the Lottery gaming system contract, and major DMS capital and facilities funding. Lopez also criticized DMS leadership and said the secretary’s salary would be held in reserve pending answers on fleet management, remote workers, SUNCOM billing, and other issues. The committee then questioned DBPR Secretary Griffin about condominium records, structural integrity reserve studies, and milestone-inspection compliance. Members focused on how the division tracks condominiums, whether it can identify buildings with three habitable stories, and whether the current filing system can be improved to better capture building height and story count. Griffin said the division relies heavily on self-reporting and complaint-driven checks, but has updated forms to capture whether a condominium has buildings three stories or higher and has received additional submissions. Members also asked about staffing and the Miami-area office; Griffin said DBPR now has two Fort Lauderdale offices and a Doral office, with about 82% of new positions filled. Secretary Davis of the Florida Lottery also testified, defending travel to Paris and other conferences as part of industry engagement, technology research, and best-practice sharing. He said the travel was reimbursed through lottery-related organizations, described the Lottery as an enterprise fund that receives no general tax revenue, and said the agency has remained a top revenue generator nationally. Members questioned Orlando travel reimbursements and dues to the Multi-State Lottery Association, and asked for more information on how increased revenue translates into more Bright Futures scholarships. Davis said he would provide additional details. The subcommittee then unanimously passed two conforming bills. PCB SAB 25-01 removed statutory references to the legacy FLAIR accounting system in preparation for Florida PALM and was reported favorably. PCB SAB 25-02 addressed Capitol Center space after the planned House lease cancellation, declaring the governor, cabinet, and legislature permanent tenants, protecting existing space and parking allocations, giving the legislature first right of refusal on vacant space, and giving legislative leaders control over utilities in their space; it also passed unanimously. The meeting adjourned after the bills were reported favorably.

Transcript Highlights:

• And back-of-the-budget stuff, yeah. Back-of-the-budget cuts, you know.
• And in fact, the governor did in the budget, if you look at the budget.
• And in fact, the governor did in the budget, if you look at the budget.
• And in fact, the governor did in the budget, if you look at the budget.
• And in fact, the governor did in the budget, if you look at the budget.

Keywords: 928, house, all

Summary: The committee first heard from the Personnel Appeals Board, which explained that it became an independent state agency after Senate Bill 487 and was presenting its first standalone operating budget. The board described its quasi-judicial role in hearing appeals from classified state employees over disciplinary actions such as warnings, suspensions, and terminations, and said it handles about 25 to 35 cases a year, with some cases lasting longer because of their complexity. Members also outlined the need for a chair and vice chair who are attorneys, the board’s current staffing and space needs, and its plan to move away from reliance on Administrative Services for office support and website functions. The board requested about $353,500 for fiscal year 2026, including startup costs, routine operating expenses, and two new part-time positions: a program director and a paralegal. Members said the budget reflects the new independent status, includes funding for only four board members rather than the authorized five, and is designed to avoid full-time staffing costs and benefits. Legislators asked about the cost per case, the board’s relationship to DAS, whether appeals must go through the board before court, and how often cases are appealed further. The board said appeals must first go through it, that court appeals are infrequent but have increased recently, and that the board’s process is intended to resolve disputes more quickly and less expensively than court litigation. Committee members also asked about the board’s caseload, outcomes, and staffing. The board said that in the prior year there were 22 cases, with four decisions overturned in favor of employees, nine dismissals, and nine settlements, and that many disputes are resolved before reaching the board through a multi-step internal process. A member noted the governor and council had recently approved a new board member and were expected to approve a fifth soon. The discussion ended with questions about the board’s website and records access, which members said would need to be moved from Administrative Services as part of the agency’s transition. The committee then moved to the New Hampshire Council on Developmental Disabilities. The executive director explained that the council is 100 percent federally funded under the Developmental Disabilities Assistance and Bill of Rights Act and develops a five-year plan to address the needs of people with intellectual and developmental disabilities. She said the council works with state agencies and advocacy organizations on quality-of-life issues, accessibility, voter rights training, and plain-language or easy-to-read materials, and that 60 percent of its membership must be individuals with disabilities or family members/guardians. She also described the council’s funding structure, including reimbursement to the state for operating costs, and noted that it currently has three full-time and three part-time positions, with no new positions requested but one full-time position being eliminated and replaced after a pandemic-era staffing change did not work out as planned.

Transcript Highlights:

• Continue to use five- or even 10-year budget plans.
• waiting for what we often call the budget season.
• people go hunting and some people do budgets.
• that will be a budget viewing tool at the school level.
• , school budgets?

Summary: The committee first heard a presentation on strategic resource management in public education. LESC staff and PED officials argued that New Mexico has increased school funding, but local budgeting and planning remain fragmented and overly compliance-driven. They described long-term pressures including declining enrollment, rising special education costs, falling cash balances, changes in federal funding, and leadership turnover, and said schools need more intentional multi-year planning tied to student outcomes. They also outlined the many disconnected planning requirements schools must complete, compared New Mexico’s current approach with Ohio’s three-year budget forecasting model, and recommended continuing multi-year appropriations, adding $2.5 million for state grants in the unified application, and directing LESC, LFC, and PED to develop a long-term financial planning proposal. PED said it is working to reduce administrative burden through school accreditation, a unified application for federal and state funds, and internal alignment of guidance and coaching, with pilot schools reporting time savings and better alignment. Members raised concerns about four-day school weeks, the burden on small districts, the need for outcomes and return on investment, and whether the state should move toward a two-year or three-year planning cycle; staff clarified that the proposal was to streamline or eliminate redundant requirements, not add another layer. The committee then received an update on the Educator Fellows program. PED described it as a Grow Your Own pipeline that employs candidates as supplemental educational assistants while they work toward licensure, providing salary, benefits, paid leave, mentoring, and coursework support. Officials said the program helps address teacher shortages, improves student-to-teacher ratios, increases workforce diversity, and supports the Martinez-Yazzie action plan. They reported 370 current fellows across 86 LEAs and about 180 schools, with many fellows being people of color, first-generation college students, or second-career educators; roughly 85 are expected to become certified this year. A local HR director from Belen testified that the program has been especially valuable in small communities, where fellows are already rooted in the community and several have moved into teaching roles. Members asked about high school recruitment, tuition, retirement and benefits, the relationship to the Higher Education Department’s Grow Your Own scholarship, and the role of university partners. PED said fellows choose among accredited higher education partners, the program is separate from the scholarship but complementary, and the state is also building an apprenticeship model and seeking to expand the program to more LEAs, though some districts are on a waiting list because of funding and local match requirements.

Transcript Highlights:

• </c> with you guys through this budget with you guys through this budget process<00:04:57.600><c> this
• Our committee work can begin on the budget.
• We have approved some of those items where it should have been in the budget and to make the budget work
• This budget, um, is going to be very, very difficult.
• </c><00:26:20.399><c> anyways</c> those things go into the budget anyways those things go into the budget

Keywords: 928, house, all

Summary: The meeting was an introductory Division One budget briefing led by Legislative Budget Assistant staff Melissa Rollins and Jack Mullen. They explained staff roles and agency assignments within Division One, noting that Jack is taking over the General Government category while Melissa handles Categories 2 and 3, and that members can contact either staffer with questions. They also reviewed the upcoming budget calendar, including the governor’s budget presentation expected in mid-February, agency hearings beginning around February 17–20, a Division One deadline around March 26, and House Finance reporting deadlines in early April. A major portion of the discussion focused on how to read fiscal notes and the difference between expenditures and appropriations. Staff used sample language to explain that a bill may show an expenditure estimate without actually authorizing funding or new positions, and that a zero appropriation means the agency is not authorized to spend the estimated amount unless the bill is amended. Members asked questions about why a bill could show costs but still not authorize spending or hiring, and staff clarified that new positions require specific legislative authorization and classification detail. They also noted that many bills will have expenditure lines without appropriations, and that amendments may be needed if the committee wants to fund or authorize the program. The rest of the meeting walked members through the HB 1 and HB 2 tracking documents used by the division. Staff explained that HB 1 tracking sheets record additional agency requests not included in the governor’s budget, including requests that may be zero-net transfers, corrections, or new spending items, and that grayed-out items indicate actions already taken. They said HB 2 will be handled through a similar tracking process, with amendments routed through LBA staff and the Office of Legislative Services. Members were told that the division will review agency budgets, class lines, and proposed changes over roughly six weeks, with the goal of preparing a detailed change report for full House Finance.

Transcript Highlights:

• of budgets discussions this session.
• The question before the Senate is engrossment of the budget.
• And this budget is a prime example of that.
• Put into this budget, pouring your hearts and soul.
• This is a budget that reflects the very best of the work that we do.

Summary: The Senate continued debate on the FY27 state budget, with several distinguished introductions and a series of amendment actions. Early amendments from Senator Collins on restoring DCF social worker funding and educator pay were withdrawn without objection. The Chair then sustained a point of order that a group of tax-related amendments, including proposals on teacher tax relief, tips, overtime, estate tax, and income tax rates, were out of order because they would create money bills that must originate in the House; the Senate voted 35-4 to uphold that ruling. Senator Tarr’s gas tax suspension amendment and several other amendments were defeated, while Senator Fattman’s amendment extending domestic violence leave protections to contract employees was adopted unanimously, 39-0. The Senate also adopted Senator Fernandes’ amendment creating a commission to study the adequacy, reliability, and distribution of unrestricted general government aid (UGA), after debate focused on inequities in local aid distribution and the need for a modern formula. The chamber then took up House No. 5375, the Chapter 90 municipal roads and bridges bill, and passed it to be engrossed. Additional amendments were considered on the budget, including a community programming amendment and a Senate Ways and Means amendment, both adopted, after which the Ways and Means amendment as amended was adopted and the underlying budget was ordered to a third reading. The Senate also handled several procedural matters, including concurrence in a House referral for a bill on poverty-related legislation and ordering a sick leave bank bill for Carla Johnson to a third reading. After extensive closing remarks from the Ways and Means chair, minority leader, and others praising the collaborative budget process and highlighting investments in local aid, education, public safety, and other priorities, the Senate voted on final passage of House No. 5501, the FY27 appropriations bill. The roll call showed 40-0 in favor, and the bill was passed to be engrossed. The Senate then adopted an order to reconvene the following Tuesday at 11 a.m. and adjourned in memory of Trooper Kevin Thomas Traynor.

Transcript Highlights:

• The question before the Senate is engrossment of the budget.
• Question before the Senate is engrossment of the budget.
• And this budget is a prime example of that.
• Put into this budget, pouring your hearts and soul.
• This is a budget that reflects the very best of the work that we do.

Keywords: 1212, all

Transcript Highlights:

• Given that this is budget testimony, a lot of Well, given that this is budget testimony, a lot of what
• And the governor's budget for FY26 proposed DMH's budget at about $1.275 billion, almost $1.3 billion
• This is actually the largest budget we've ever seen. That's a 7% increase over last year's budget.
• In addition to DMH's budget, the governor's budget, the governor's budget, In addition to DMH's budget
• And is there money in your new budget to keep Pocasset open in the next budget?

Keywords: 995, all

Summary: The committee heard budget testimony from Department of Mental Health Commissioner Brooke Doyle, who said DMH serves about 29,000 people and is facing rising demand, higher operating costs, and uncertainty about federal funding. She explained that the FY26 budget prioritizes fully funding the state-operated inpatient system, which is at 100% occupancy and often serves people transferred from Bridgewater State Hospital, while making reductions in other areas to balance the budget. Those reductions include a 50% cut to case managers, a pause on closing the Pocasset unit pending a working group on Cape access, and changes to youth and contracted services such as right-sizing IRTP and CIRT, reducing Youth PACT from seven teams to three, scaling back flex and jail diversion grants as ARPA funds wind down, and preserving the behavioral health helpline and community-based crisis services. Members from Western Massachusetts and the Cape raised concerns about access, staffing, and the impact of cuts, and Doyle said the department would continue operating IRTP services, improve the referral process, and work with stakeholders on the Pocasset review and other access issues. The committee also discussed school-based mental health, 988, loan forgiveness for workforce recruitment, and the role of co-response programs for law enforcement. Secretary Robin Lipson then testified for the Executive Office of Aging and Independence, describing a proposed FY26 budget increase of about 21% to support councils on aging, home care, elder abuse investigations, caregiver support, care transitions, and nutrition programs. She said the agency is managing rising demand, especially from the growing 80-plus population, and noted uncertainty around federal Older Americans Act funding after the federal disbursement agency was disbanded. To control costs, the office will manage intake and caseload growth in a fully state-funded home care program, but current clients will not lose services. Lipson also highlighted a new $1 million line item for local mini-grants to support age-friendly initiatives. In questions, members focused on elder scams, and Lipson said scams are increasing and the agency is working with banks, district attorneys, and public awareness campaigns. The Health Policy Commission’s Executive Director David Seltz presented the agency’s FY26 request and said the biggest challenge is health care affordability, with family premiums near $29,000 annually and many residents delaying care because of cost. He emphasized that recent legislation significantly expands HPC’s role through a new Office of Pharmaceutical Policy and Analysis, which will examine the drug supply chain and pricing, and a new Office of Health Resource Planning, which will support statewide planning around closures and access gaps. The new law also creates task forces on maternal health access and primary care, and adds transparency and oversight for private equity in health care. Members asked about pharmaceutical costs, GLP-1 weight-loss drugs, 340B, and maternal health closures; Seltz said the data show rapid growth in GLP-1 spending and that the new offices will help the state better understand cost drivers and access problems. The Center for Health Information and Analysis then began its testimony, describing its role as the state’s data hub for health care spending, utilization, quality, and affordability analysis.

Transcript Highlights:

• BUDGET.
• THE BASE BUDGET SERVES AS THE INCREMENTAL BUDGETING APPROACH.
• OVERALL THE HHS BUDGET ACCOUNTS FOR APPROXIMATELY 50 PERCENT OF THE STATE'S TOTAL BASE BUDGET FOR FISCAL
• OF THE TOTAL STATE BASE BUDGET.
• BY FUND TYPE FOR EACH BUDGET ENTITY.

Keywords: 999, senate, all

Transcript Highlights:

• We are facing a budget crisis because we are a rural school.
• The thing is, we school committees need to pass our budgets in the spring.
• We're spending 56% of Charlemont's entire municipal budget on education.
• The town's side of the budget represents 39% of the overall budget, whereas the schools represent 61%
• The town and the schools both operate on a level-service budget, meaning we generally craft our budgets

Keywords: 995, all

Summary: The hearing focused primarily on H. 517/S. 314, a bill to provide a sustainable future for rural schools, and H. 697, a bill to require full funding of regional school transportation. Witnesses from rural districts, school committees, superintendents, students, and local officials described chronic underfunding, declining enrollment, high fixed costs, special education and transportation burdens, and the loss of programs, staff, and extracurriculars. Several speakers argued that rural aid should be funded at $60 million annually and made non-discretionary, while others emphasized that transportation reimbursement for regional districts has repeatedly fallen short of the state’s promise and is driving budget crises and overrides. A number of students testified in support of rural aid, describing cuts to classes, counselors, and activities, and the impact on their schools and communities. Committee members also discussed whether transportation policy should be revisited to address underlying cost drivers, including bus bidding practices and whether regional districts should have more flexibility in transportation requirements. The committee also heard H. 515, concerning Hancock Elementary School and a school choice-related exemption from a state requirement that has created a large financial burden for the district. Hancock’s superintendent and Rep. John Barrett explained that a decades-old regulation, recently enforced by DESE, would require Hancock to pay tuition for choice-in students through high school graduation even though the district only serves pre-K through grade 6 and sends its own students elsewhere for middle and high school. They said the rule creates a significant per-student shortfall and has forced Hancock to opt out of school choice. Committee members asked for clarification about how the arrangement works and how the costs fall on Hancock. Additional testimony supported related transportation bills for non-regional districts, especially Plymouth/Carver and North Middlesex, describing high and rising bus costs, special education and McKinney-Vento transportation expenses, and the strain on local budgets. Speakers repeatedly said that state reimbursement has not matched actual costs and that communities are being forced to choose between transportation and classroom services. No votes or final actions were taken in the hearing; the committee simply received testimony and closed the hearing on the bills discussed.

Transcript Highlights:

• in their current budget.
• 00:32:05.039><c> budget.
• </c> right now is 570 in the House budget. right now is 570 in the House budget.
• </c> $2 million hit to your budget, right? $2 million hit to your budget, right?
• in the budget.

Keywords: 1191, senate, all

Transcript Highlights:

• The Senate Budget Subcommittee Number 5 on Corrections, The Senate Budget Subcommittee Number 5 on Corrections
• This is a budget increase bill.
• This is a budget increase bill.
• Our budget ask.
• The SIBTF budget proposal.

Keywords: 987, senate, all

Transcript Highlights:

• They don't have the funds recognized in the governor's budget.
• </c> recognized in the governor's budget. recognized in the governor's budget.
• They are not going to be getting too extravagant with their budgets.
• We usually don't have a budget crisis on our heels.
• We usually don't have a budget crisis on our heels.

Keywords: 1187, senate, all

Transcript Highlights:

• The Senate Budget and Fiscal Review Subcommittee 4 will come to order.
• As our office has discussed, each year the budget would spend...
• More policy in the budget.
• I want to emphasize and urge Cal Home in the proposed budget.
• We very much appreciate the Senate's budget plan.

Keywords: 987, senate, all

Transcript Highlights:

• The Senate Budget and Fiscal Review Subcommittee 4 will come to order.
• the budget would spend more than it's estimated to take in revenues in the budget year, and every year
• More policy in the budget.
• Cal Home in the proposed budget.
• We very much appreciate the Senate's budget plan.

Summary: The subcommittee heard several May Revision proposals related to the state’s housing and homelessness reorganization. On the first item, administration and Finance staff described technical adjustments to move administrative positions and resources between the California Housing and Homelessness Agency, HCD, and Cal ICH, plus authority for a chief deputy director at the new Housing Development Finance Committee. The LAO recommended approval but asked for clarification on funding for the chief deputy position. Several senators questioned whether the staffing shifts would reduce Cal ICH’s capacity and whether adding communications support and a new executive position was appropriate absent new housing funding; the item was held open. The second item proposed a new $100 million CalHFA Disaster Rebuilding Fund, with $56 million General Fund and $44 million in existing National Mortgage Settlement funds, to help disaster-impacted homeowners access construction financing through tools such as a loan loss guarantee and interest rate buy-downs. CalHFA said the fund would help close the gap between insurance proceeds and rebuilding costs and would work through approved lenders. The LAO raised concerns about the lack of alternatives analysis, the broad delegation in the trailer bill, and the General Fund cost. Senators pressed for more detail on the estimated number of homeowners served, lender and homeowner eligibility, equity safeguards, and the role of the Legislature in program design; the item was held open. The third item was trailer bill language for HAP Round 7, including accountability metrics, pro-housing designation requirements for certain large cities and counties, local match requirements, and a mechanism to recapture unspent funds. HCD said the proposal would streamline reporting by using one consistent set of system performance measures and would phase in the new requirements. The LAO questioned the timing, the burden of pro-housing designation, the size and source of the local match, and whether the proposal conflicted with the Legislature’s prior goal of getting funds out quickly. Several senators criticized the added requirements and the lack of new funding, while others said the proposal could improve accountability and reduce administrative burden by reusing existing plans. The item was also held open. The fourth item began a proposal to reduce local development impact fees on state-funded affordable housing projects, framed as a condition on competitive multifamily funding rather than a statewide mandate. The presentation started but the transcript cuts off before questions or action on that item.

Transcript Highlights:

• and then obviously just the annual budget going forward traditionally?
• We saw MassHealth costs grow by 10% in the FY2026 budget.
• We saw mass health costs grow by 10% in the FY26 budget.
• With that in mind, we have two recommendations for the FY27 budget.
• There's a lot of pressures on this budget.

Keywords: 995, all

Summary: The Senate and House Ways and Means chairs opened the FY 2027 consensus revenue hearing by emphasizing the need for a balanced, fiscally responsible budget amid federal funding cuts, health care cost pressures, and uncertainty around the federal tax law changes referred to as OB3. They also noted the state’s current revenue performance is slightly above benchmark and paid tribute to the late Representative Anne Margaret Ferranti. Secretary of Administration and Finance Matthew Gorkowitz echoed the call for caution, saying Massachusetts has protected core services while building reserves and that the FY27 budget process begins with a careful revenue estimate. Department of Revenue Commissioner Jeff Snyder, along with DOR staff, presented FY26 and FY27 tax forecasts and identified major drivers and risks: OB3’s negative impact on state revenue, surtax collections, labor market conditions, capital gains, and corporate/business excise taxes. DOR estimated OB3 would reduce FY26 revenue by about $664 million and FY27 by about $282 million, while surtax and capital gains were expected to remain strong in FY26 but soften in FY27. Members questioned the outlook for surtax, capital gains, and the potential fiscal effect of a ballot question reducing the income tax rate from 5% to 4%; DOR said that proposal could cost roughly $4.2 billion to $4.8 billion annually, with a smaller but still significant impact in FY27 because of phase-in timing. Treasurer Deb Goldberg testified next on the stabilization fund, lottery, PRIM, unclaimed property, and the Alcoholic Beverages Control Commission. She reported the rainy day fund at about $8.1 billion, said the lottery was on track for $1.5 billion in FY26 net profit and projected $1.25 billion in FY27, and highlighted that iLottery is expected to launch in summer 2026 with revenue beginning in FY27 and dedicated to child care initiatives. She also described strong PRIM performance and record unclaimed property returns, while members asked about the child care use of iLottery revenue, multilingual outreach, and the economic impact of expanded liquor licensing. Mass Taxpayers Foundation President Doug Howgate and Tufts’ Evan Horowitz then offered differing revenue outlooks and policy warnings. Howgate projected modest growth, cautioned against overusing reserves for ongoing obligations, and urged caution on federal tax conformity changes and health care spending pressures. Horowitz projected higher FY26 and FY27 revenues than other witnesses, warned that the surtax and capital gains make the tax system more volatile, and said a 4% income tax ballot question could reduce FY27 revenues by roughly $800 million to $1 billion. He also flagged the rent control ballot question as a potential risk to municipal finance and suggested the state consider giving a permanent home to the independent revenue model used by Alan Clayton-Matthews.