Transcript Highlights:

• up and send in certified payroll records at some point in time.
• And then it took three years to take care of my time, my staff's time, all that kind of stuff, which
• is a time suck for everybody.
• So you will see a savings in contractor insurance, should see a savings.
• So you will see a savings in contractor insurance, should see a savings after everything settles down

Keywords: 959, house, all

Transcript Highlights:

• I also appreciate that optimizing is not just about saving money to either save or necessarily even to
• At a time.
• I don't want to take up all the time, but...
• What are the net return results for these funds over time, and why we spend so much time diligencing
• I don't want to take all the time.

Transcript Highlights:

• , we finish on time.
• And then finally, federal savings are not necessarily state savings.
• <00:09:34.800> state savings are not necessarily state savings are not necessarily state savings
• approximately the same time. approximately the same time.
• in in the time. in in the time.

Keywords: 958, all

Summary: The committee met and approved the minutes from its August 27 meeting. It then received a presentation from Katherine Castanza of the National Conference of State Legislators on the Medicaid provisions in the 2025 budget reconciliation bill, referred to as HR1. She explained that the bill is estimated by CBO to save the federal government $911 billion over 10 years, with more than 20 Medicaid-specific provisions, most of the savings concentrated in five policies and largely backloaded into 2030-2034. She emphasized that the bill’s effects will vary by state, but that expansion states and hospitals are expected to be most affected, in part because of changes to eligibility, provider taxes, and state-directed payments. Castanza highlighted several new funding and flexibility provisions, including a $50 billion Rural Health Transformation Fund for 2026-2030 and a new home- and community-based services waiver option effective July 1, 2028, with $100 million in grants in fiscal year 2027. She also outlined major eligibility changes for Medicaid expansion adults: work or community engagement requirements effective January 1, 2027; twice-yearly redeterminations for the expansion population effective the same date; and new cost sharing for certain expansion adults effective October 1, 2028. She noted that Kentucky, as an expansion state, would be subject to these changes and that state agencies would face significant implementation demands, especially because federal guidance and timelines are tight. A substantial portion of the presentation focused on financing changes. Castanza described new limits on provider taxes, including a 0% safe harbor for new taxes and a phased reduction for existing taxes in expansion states beginning in 2028, while nursing facilities and intermediate care facilities are exempt from the reduction if already taxed. She also explained that state-directed payments will be capped and phased down over time, with existing arrangements grandfathered only briefly; she said Kentucky has 11 approved state-directed payments and could see significant fiscal effects. She added that the bill also bars Medicaid payments to Planned Parenthood or similarly situated providers for one year, changes immigrant eligibility rules effective October 1, 2026, lowers the federal match for certain emergency services, and expands the scope of the federal erroneous payment recoupment provision effective October 1, 2029. Throughout, she stressed that federal savings may translate into state cost shifts and that implementation timing will be critical.

Transcript Highlights:

• So the Arizona Education Savings Plan is for children.
• I remember there was a time, and I want to make it clear, we can't do this today, but there was a time
• Members, this is a bill we've heard multiple times.
• Noticing the vote and what SAVE stands for? Okay, let's move to HB 2901. SAVE stands for...
• We saved the best for last, yes, best for last.

Keywords: 1182, all

Summary: The committee worked through a very long minority caucus calendar covering a wide range of bills, with many items being described and then either left on consent, pulled from consent, or noted for votes. Topics included bullion and state depository proposals, a produce incentive appropriation, a biennial budget change, veterans services funding, driver licensing and traffic enforcement measures, procurement and public records changes, school board and school facilities rules, SNAP work requirements and verification, child welfare and juvenile justice provisions, housing and homelessness measures, energy and fuel policy, election administration, and several tax, commerce, and licensing bills. Members repeatedly raised concerns about constitutionality, federal preemption, duplication of existing law, and whether some measures were policy priorities that had been vetoed in prior sessions and were returning unchanged. Several bills drew extended debate. Members objected to English-proficiency requirements for commercial drivers and motor carriers, arguing federal law and the supremacy clause would bar them. Earned wage access regulation prompted strong opposition over consumer harm, overdraft cycles, and high effective APRs. School-related bills were criticized for overregulating public schools while not imposing similar requirements on ESA/private-school programs, especially on fingerprint clearance and reporting. SNAP-related bills were also opposed as setting unrealistic mandates and repeating vetoed proposals. Other contested measures included a drag-show criminalization bill, a bill restricting photo enforcement, a bill limiting local regulation of unmanned aircraft, and a bill conforming Arizona tax law to federal changes, which members said would benefit wealthy taxpayers and corporations without a clear funding source. The committee also heard a number of supportive or less controversial measures, including bills on veterans awareness, dementia care telemonitoring, Braille transcription funding, CPA licensure pathways, cash acceptance by retailers, and some child safety and court administration changes. Several bills were pulled from consent for further discussion, while others were noted as having unanimous or near-unanimous votes. The meeting ended with caucus announcements, including an affordability award presentation, an upcoming Latino Caucus discussion on community land trusts, and an invitation to African American Legislative Day activities, followed by adjournment.

Transcript Highlights:

• Thank you for your time today.
• Thank you for your time today.
• Thank you for your time today.
• Thank you for your time today.
• We're running out of time. Yep. please. We're running out of time. Yep.

Bills: HF2928, HF2912, HF2297

Keywords: water appropriation, data centers, environmental review, energy conservation, permit application, carbon-free energy, geothermal energy, renewable energy, Macalester College, appropriation, sustainability, solar energy, pollinator programs, license plates, agrivoltaics, environmental sustainability, 1183, house

Transcript Highlights:

• for a second time. for a second time.
• Did we save Hundreds. Did we save money?
• . time. time.
• Didn't work the first time. Didn't work the first time.
• Take all the time you need. Yep. Take all the time you need.

Keywords: 1191, senate, all

Transcript Highlights:

• that for college, that's... ...roughly $7,500 for a school year, and they're saving that for college
• The 529 college savings plan also allows for funds to be used for K-12.
• He has time that we allocated to him. The questions are acceptable afterwards.
• It actually saves the state money, saves the taxpayers' money.
• I yield my, not my time, but my thoughts to that of Senator Rogers and her discussion of her time and

Summary: The Senate Committee on Appropriations, Transportation and Technology heard HCR 2048, as amended by a strike-everything amendment. The amendment would constitutionally prohibit the state from confiscating scholarship account monies from children of military families who are eligible for education scholarship accounts (ESAs) and can use the funds for tuition and fees at eligible postsecondary institutions. It also would make any later bill or voter-approved measure that violates that prohibition void in its entirety, with no severability, for measures enacted or approved on or after November 1, 2026. Representative Way, the sponsor, said the measure was intended to protect military families from having education funds taken away and argued that military children face unique disruptions because of deployments and frequent moves. Supporters including Matt Beinberg of the Goldwater Institute, Kevin Beasty of the Arizona Christian Education Coalition, Peter Gentala of the Center for Arizona Policy, and Senator Rogers said the amendment was needed to safeguard military families and preserve their ability to use ESA funds flexibly, including for college savings. Opponents, including Senators Alston, Fernandez, Kuby, and Epstein, argued the proposal was unnecessary, overly broad, and an attempt to preempt or invalidate a pending ESA-related citizen initiative. They also raised concerns about ESA accountability, public school funding, and constitutional issues involving voter initiatives and judicial review. After debate, the committee adopted the strike-everything amendment and then voted on HCR 2048 as amended. The final committee vote was 6 ayes, 4 noes, and 1 not voting, giving the measure a do-pass recommendation.

Transcript Highlights:

• Fortunately, her daughter got to her in time and was able to save her.
• Save her.
• I want to be very clear. save her.
• But we should not confuse reform with dismantling trust itself, because trust saves lives.
• I want to share that the author has been working on this bill for quite some time.

Keywords: 987, senate, all

Transcript Highlights:

• I think it’s that time to get started. Okay. I think it’s that time to get started.
• We do it all the time; that's what this is for. Also, taxes are hard, you guys.
• , the source of any water that the project is estimated to save, and whether Water savings, the source
• of any water that the project is estimated to save, and whether the estimated water to be saved is groundwater
• had savings of 180,000 acre-feet with the small grant that we did to give out last year.

Keywords: 1182, all

Summary: The caucus began with introductions from pages and interns, followed by a procedural reminder on consent calendars and how bills can be pulled for floor debate or amendment. Members were told that third-read consent bills bypass caucus debate, while caucus consent bills may have committee amendments adopted together unless pulled. The meeting then moved into Minority Caucus Calendar No. 2. A large number of bills were briefly presented, with several members pulling measures from consent or voicing opposition. Topics included appropriations and federal monies accounting (HB 2148), a Buffalo Soldiers memorial (HB 2062), school library funding restrictions (HB 2008), prayer at school governing body meetings (HB 2110), school safety center administration (HB 2142), parental rights and social transitioning disclosures (HB 2249), insurer assessments (HB 2091), agricultural property classification and inspection rules (HB 2104 and HB 2105), firefighter workers’ compensation definitions (HB 2138), truth-in-taxation bond notices (HB 2289), late tax filing penalties (HB 2016), engineering and professional licensing reciprocity (HB 2122), felony murder involving an unborn child (HB 2043), body concealment and mutilation penalties (HB 2044), domestic violence order-of-protection service rules (HB 2048), mandatory reporting of partial-birth abortions (HB 2074), unlawful flight sentencing enhancements (HB 2108), weapons trafficking and fentanyl sentencing changes (HB 2131 and HB 2132), drive-by shooting forfeiture rules (HB 2045), probation review notice changes (HB 2046), venue changes for cases involving court employees (HB 2126), and child support for pre-born children (HB 2144). Members repeatedly criticized several abortion-related bills, the library bill, and the tax and agriculture measures as harmful, unnecessary, or unfunded mandates. The latter part of the meeting focused on water and election legislation. Water bills included snowpack augmentation funding (HB 2024), water conservation grant disclosures (HB 2029), removal of education/research as an eligible water grant use (HB 2030), stormwater recharge mapping with an appropriation (HB 253), cesspool remediation assistance (HB 2096), groundwater pumping limits in INAs (HB 2097), Colorado River litigation funding (HB 2116), and natural resource conservation board changes (HB 2117). Election-related items included moving the primary date earlier and changing signature cure timelines and observer rules (HB 2022), a memorial urging designation of the Muslim Brotherhood as a terrorist organization (HCM 2001), a memorial urging review of CAIR for terrorist designation (HCM 2002), and a constitutional amendment on citizenship, voter ID, foreign contributions, and early voting limits (HCR 2001). Members raised concerns about voter access, anti-Muslim rhetoric, and the practical effects of the election changes. The caucus concluded with birthday acknowledgments and an announcement for Muslim Day at the Capitol before adjournment.

Transcript Highlights:

• In two years' time, that means that 1.8 million people have actually suffered a blood clot.
• This is an important bill that will save lives.
• I believe it ultimately will save money, but it's really about the lives.
• But they're making $260,000 at the time that they would like... Yeah. So, all right.
• But they're making $260,000 at the time that they would like... I'm sorry.

Summary: The Senate Committee on Health Policy considered several health-related measures. SB 890 on improving screening and treatment for blood clots was presented as a work-in-progress based on a prior working group. The bill would define certain clot-related conditions as chronic diseases, create a DOH registry, require screening and training in hospitals, nursing homes, and assisted living facilities, and several senators raised concerns about definitions, training requirements, facility responsibilities, and public records impacts. Survivors and family members testified in strong support, describing blood clots as a preventable public health crisis. The bill was reported favorably after a roll call vote. SB 668 on storage and disposal of prescription drugs and sharps would direct a study of medical sharps collection and address conflicts between state and federal law on disposal of certain prescription drugs. Senators discussed whether the study should include both individual and commercial disposal and whether newer injectable medications increase sharps waste. The bill received supportive testimony from waste and recycling stakeholders and was reported favorably. SB 762 on preventing the spread of avian influenza would create a DOH task force to develop a statewide response strategy, monitor outbreaks, study wastewater monitoring, and recommend cost-effective testing and prevention measures. An amendment extended the task force deadline, and the bill was reported favorably as a committee substitute. The committee also approved SB 182, which creates the Home Away From Home tax credit for businesses donating to charities that house families of critically ill children, with supporters saying it would help expand lodging for families in need. SB 942, the chair’s bill on restrictive covenants in health care, would limit non-compete clauses for physicians under a salary threshold, with debate focused on patient access, workforce retention, and concerns about small practices and contract enforcement. The bill was reported favorably. Finally, the committee adopted SPB 7018 to preserve a public records exemption for minors seeking judicial bypass of parental consent requirements for abortion, and then reported it favorably. Several members later recorded votes on earlier bills, and the committee adjourned.

Transcript Highlights:

• So, you hear that term; that means they can quit at any time and be fired at any time with or without
• So, you hear that term; that means they can quit at any time and be fired at any time with or without
• But that's approximate savings.
• >> So the timing is interesting.
• Um, and we have time to do that.

Keywords: 1191, senate, all

Transcript Highlights:

• Thank you so much for your time.
• I think this is definitely a win-win situation, and any time we can save lives and bring that humanity
• It's a long time.
• It's a long time.
• It's also my first time here.

Summary: The committee first adopted its 2025-26 rules on a 7-0 roll call, then approved three consent items—AB 88, AB 240, and AB 313—on a due-pass motion to Appropriations. The hearing then moved to AB 648, which would give community college districts the same zoning authority as the UC and CSU systems to build student and staff housing on property they own or lease. The author and supporters argued the bill would help address severe housing insecurity and homelessness among community college students, while opponents and some members raised concerns about local control, zoning exemptions, and the impact on nearby communities. AB 648 passed the committee on a 5-2 vote and was sent to the Local Government Committee. The committee next heard AB 466, which would require California Community Colleges and CSU campuses to provide organ and tissue donor registry information during student orientation, and request UC campuses to do the same. Supporters shared personal stories about transplants and donation, saying college orientation is a good opportunity to increase registrations. Some members worried about information overload during orientation and suggested campuses have flexibility in how they present the material, but the bill advanced on a unanimous 7-0 vote to Appropriations. AB 326 followed, proposing campus-by-campus external audits of the CSU every three years and public release of the audits. The author, faculty supporters, and a student argued that systemwide audits do not provide enough transparency about how money is spent at individual campuses, citing examples of financial mismanagement and fee increases. CSU opposed the bill, saying it already conducts annual consolidated external audits and that campus-level audits would add cost without added benefit. After extensive discussion about transparency, audit scope, and implementation, the bill passed 6-1 to Appropriations. The committee then took up AB 335, which would create a California Black-Serving Institution Grant Program to support Black student success and broader underserved student services; supporters emphasized persistent equity gaps and low completion rates, while an opponent argued the bill needed to be carefully amended to comply with Proposition 209 and equal protection requirements. The transcript ends during that item’s discussion, before a final vote is shown.

Transcript Highlights:

• At the same time, I think we need.
• And this committee, we were able to stabilize Medi-Cal to save access to life-saving health care.
• Anybody else that want to speak for the first time before we go back on second times? Okay. Mr.
• It is also ill-timed and unfair.
• Thank you for your time.

Keywords: 988, house, all

Transcript Highlights:

• First-time homestead exemption.
• I've been through 27 budget processes, and I've seen the good times and the bad times.
• And we could feel terrible every time we go.
• Sorry, we're running out of time here. Thank you very much for your time. Appreciate it.
• Appreciate your time. Boy, I wish we had more time, but just real fast.

Bills: SB9

Keywords: property tax, ad valorem tax, voter-approval tax rate, no-new-revenue tax rate, tax rate calculation, Tax Code, local government finance, municipality, county, special taxing unit, sales and use tax, property tax cap, tax rollback, tax levy, maintenance and operations, debt rate, disaster relief rate, Texas Legislature, local taxing unit

Summary: The Senate Committee on Local Government met to hear Senate Bill 9, which would lower the voter-approval tax rate for certain local taxing units from 3.5% to 2.5%. Sen. Bettencourt, the bill author, argued the change would continue the state’s property tax reforms begun in 2019, slow local levy growth, and give voters more say over larger tax increases. He and supporters cited data showing property tax levies have grown faster than population plus inflation, and said the bill would help protect taxpayers while preserving the state’s broader investments in school tax relief, water, rural law enforcement, and ambulance funding. Supporters included the Texas Taxpayers and Research Association, the Texas Association of Business, the Texas Public Policy Foundation, and the Texas Association of Manufacturers. They said the bill would improve transparency, encourage more disciplined budgeting, and create certainty for homeowners and businesses. They argued that lower tax-rate growth would help attract and retain employers and investment, and that voters would still be able to approve higher rates when needed. Local officials and other opponents said the bill would constrain cities and counties facing rapid growth, inflation, infrastructure needs, and public safety costs. Testimony from county judges, city finance officials, firefighters, and urban county representatives emphasized pressures from jail operations, roads, water, EMS, police and fire staffing, and unfunded mandates. Several witnesses asked for carve-outs or exemptions for public safety and disaster-related costs, warning that a one-size-fits-all cap could force service cuts or shift costs elsewhere. The committee heard extensive questioning but no final vote or disposition on the bill was taken in the portion provided.

Transcript Highlights:

• <00:08:18.319> about our construction market, it saved about our construction market, it saved
• We estimate that saving about uh years.
• It used to be what can I do with my spare time.
• It used to be what can I do with my spare time.
• Um, they don't want to save.

Keywords: 958, all

Summary: The committee first heard a presentation from Northern Kentucky building industry representatives Brian Miller and Matt Mains on housing affordability and construction workforce issues. They argued that regulatory and code requirements add significant cost to new homes, citing an estimate of nearly $94,000 per home nationally and $15,000 to $20,000 per home in Boone County over the past decade. They recommended reforms to building code adoption, architectural design mandates, permit fees and delays, and setback/land dedication rules, saying these changes could reduce costs by $25,000 to $35,000 per home without affecting public safety. They also discussed workforce training efforts through the Enzwe Building Institute, dual-credit programs, apprenticeship incentives, and workforce grants, saying these efforts have helped hold wage growth below regional trends and improve housing affordability. Committee members asked about the breakdown of regulatory costs, the effect of energy codes, and ways to speed up permitting. The presenters said the costs were roughly split among federal, state, and local requirements, with local regulations adding about $25,000 to $35,000 and some energy-code changes adding about $19,000 per home. They said faster plan review, coordination with the Kentucky Division of Water, and addressing municipal staffing shortages could cut 30 to 45 days from approvals. Members also discussed the difficulty of building starter homes under about $350,000 and the need for more missing-middle housing, with the presenters saying such homes are hard to produce without sacrificing quality. The committee then took up Representative Kim Moer and Dr. Dale Bertram’s discussion of marriage and family therapist licensing and healthcare workforce data reporting. They explained that the bill would allow Kentucky to recognize out-of-state marriage and family therapists who meet licensure requirements, have no disciplinary history, and have passed the national exam, in order to reduce barriers and address provider shortages, especially in rural areas. They also described a separate workforce data reporting section that would require licensure boards to collect consistent information on where licensees practice and whether they are actively seeing patients, including through telehealth, so the state can better understand its healthcare workforce. Members supported the portability idea, noted that some qualified applicants are currently working in Indiana instead of Kentucky, and asked whether the data collection could be handled administratively; the sponsors said the bill would create consistency across boards. The committee also briefly discussed occupational board updates and the need for stronger communication between legislators and licensing boards, including architecture licensure issues and efforts to recruit more professionals.

Transcript Highlights:

• implementation, the Commonwealth saves implementation, the Commonwealth saves money.<00:10:37.600
• gain tremendous amount of direct savings gain tremendous amount of direct savings and<00:10:47.760
• <00:15:38.160> He's his time. He's ready for release. He's his time.
• courts handle these cases all the time. courts handle these cases all the time. most<00:32:58.559
• to nothing to address the time to nothing to address the time constraints<00:38:24.800> that<

Keywords: 958, all

Summary: The House Judiciary Committee met for its sixth regular-session meeting and first took up House Bill 5, as substituted by committee amendment, which would authorize KCTCS to partner with the Department of Corrections to create a vocational training campus at North Point Training Center. The sponsor and witnesses described the bill as a prison education and re-entry initiative aimed at reducing recidivism, saving taxpayer money, and meeting workforce needs, citing Michigan’s vocational village model as evidence that prison-based training can lower reoffending. Testimony emphasized that the program would include high-demand vocational fields, credentials, eligibility and security safeguards, data collection, annual reporting, and re-entry documentation such as certificates of employability and employment protections. Several members voiced support, including comments that the bill builds on existing second-chance and employability efforts. One member asked whether post-release employment outcomes could also be tracked, and the sponsor said that would be encouraged and discussed as a possible friendly amendment. After discussion, the committee voted 19-1 to adopt the committee substitute and pass House Bill 5. The committee then began consideration of House Bill 468, which would update the Kentucky Civil Rights Act to conform the state definition of disability to the 2008 federal ADA amendments and clarify the meaning of “qualified individual with a disability.” The bill sponsor said it would remove the Kentucky Human Rights Commission’s adjudicative authority over employment and public accommodations cases, while leaving investigative powers intact and preserving housing-related adjudication, with the goal of placing those disputes in court and preserving jury-trial rights. In response to questions, the sponsor said a local mandate analysis found the court impact would be minimal to moderate, and cited commission data showing relatively few hearings. The transcript cuts off during continued discussion of HB 468.

Transcript Highlights:

• This time is no different.
• My colleagues could stop this carnage at any time.
• Again, thank you for taking the time.
• They saved the Iron Range.
• I challenge the media all the time.

Keywords: joint hearing, small business, Tax Cuts and Jobs Act, economic recovery, tax relief, job creation

Summary: In this joint hearing of the House Committee on Small Business and the Senate Committee on Small Business and Entrepreneurship, the primary focus was on the importance of making the Tax Cuts and Jobs Act of 2017 (TCJA) permanent. The chair emphasized that small businesses are crucial for the nation's economic recovery, especially in the wake of current federal policies perceived as detrimental. Witnesses shared their experiences and highlighted how the tax cuts facilitated job creation and business expansion, stressing the need for continued support through ongoing tax relief measures. The meeting included discussions about the economic implications of the TCJA's potential expiration, with members voicing their concerns regarding how this could impact small businesses and the broader economy.

Transcript Highlights:

• <00:16:30.199> would calculated that electric savings would calculated that electric savings
• Technology changes that occur over time Technology changes that occur over time we<00:30:15.519>
• what Miss Benson said about the savings what Miss Benson said about the savings that<00:48:07.640
• For me locally, try a bill that increases your electric bill by five times.
• bill done and get it done in prime time bill done and get it done in prime time and<00:53:37.319

Keywords: 1183, house

Summary: The House Energy Finance and Policy Committee met to approve the January 16 minutes and then heard House File 9, which was referred to the Committee on Taxes after the committee’s action. The bill was presented as an energy policy measure aimed at reliability and affordability. It would expand hydroelectric power’s eligibility under the state’s energy standard, delay certain carbon-free compliance requirements for utilities that do not meet a retail rate benchmark, prohibit local permits to demolish fossil fuel plants under certain conditions, state support for carbon capture and sequestration without creating a state funding obligation, end the nuclear moratorium, and expand the sales tax exemption for residential natural gas and electricity used as primary heat year-round starting after June 30, 2026. The committee also took up and adopted the A1 author’s amendment, which clarified that the carbon capture language does not obligate state spending. The bill’s sponsor argued that Minnesota’s current energy policy is driving up costs and threatening reliability, especially during extreme cold, and said the bill would create “off-ramps” from existing mandates to protect ratepayers and businesses. He cited reliability concerns, MISO/NERC risk assessments, rising utility rates, and the need for an all-of-the-above energy approach, including hydro and nuclear. He also said the bill would reduce taxes by broadening the sales tax exemption for residential heating. Testimony was mixed but generally focused on reliability, affordability, and the role of nuclear power. The Minnesota Rural Electric Association and the Minnesota Chamber of Commerce supported the bill’s emphasis on keeping power reliable and affordable, with both saying Minnesota needs dispatchable, carbon-free resources and noting concerns about high electricity costs and future demand from data centers and AI. The Prairie Island Indian Community opposed lifting the nuclear moratorium without a viable waste solution, describing the long-term burden of spent nuclear fuel on its community and asking for more consultation. Xcel Energy said its nuclear plants have operated safely and reliably for decades, support low-cost and low-carbon power, and could be part of the state’s energy transition, but it emphasized the need for tribal participation and said decisions about retiring fossil plants should remain within the existing Public Utilities Commission resource planning process.

Transcript Highlights:

• to time.
• He's a part-time.
• College savings. College savings is unique. Um, the program is unique.
• College savings. College savings is unique. Um, the program is unique.
• <01:54:22.960> Um savings. College savings is unique. Um savings.

Keywords: 928, house, all

Summary: The Committee of Conference on HB 1 and HB 2 was called to order, and Legislative Budget Assistant Michael Kaine reviewed the working documents before the committee. He explained the compare report, the detailed change sheet, the HB 1 index, the HB 2 side-by-side, the surplus statement, and a revenue handout, noting that the committee would vote up or down on all detail-change items and that unresolved items on hold would be removed from the final bills. He also identified staff available to answer technical questions and noted that the committee would track the dollar impact of decisions as it proceeded. Members then turned to the revenue outlook, with discussion focused on the gap between the House and Senate budget positions. House members said their budget guidance was based on revenue estimates that were significantly below the governor’s proposal, and they discussed whether additional revenue could close part of the gap. Department of Revenue Administration Commissioner Lindsey Stepp presented updated revenue estimates based on May data, explaining the methodology and the ranges for fiscal years 2025, 2026, and 2027. She said business taxes were the largest source of uncertainty, with estimates reflecting current economic conditions, recent revenue performance, and a range of possible growth rates. Committee members questioned the assumptions behind the business-tax ranges, including why the low and high scenarios were set at 2% and 8% growth. Stepp said the range was based on historical performance and current economic factors such as inflation, tariffs, and business behavior, and she noted that June is a major estimate-payment month for business taxes. Members also discussed recent revenue trends, including the effect of tariffs and the possibility of federal tax policy changes affecting repatriated profits. The commissioner and House members also discussed other revenue sources, including rooms and meals and real estate transfer taxes, with the House side arguing that lower mortgage rates and home prices could increase real estate transfer revenue. No votes were taken in the portion provided, but the committee discussed possible upward adjustments to House revenue assumptions, including increases of roughly $70 million in total based on the updated outlook and additional insurance-related revenue.

Transcript Highlights:

• So hopefully over time... Make them more healthy. Yes, and they won't be on the drugs. Time.
• So those are lives saved, lives extended, money saved. 440,000 Texans have received their first screening
• Maybe it's time to do that. Just something that was put out. Maybe it's time to do that.
• Two and a half times and four times depending on the product.
• Two and a half times and four times depending on the product. And let me be clear.

Summary: The Senate Finance Committee heard budget presentations for the Texas Historical Commission, the Pension Review Board, the Employees Retirement System (ERS), Social Security and benefit replacement pay, the Texas Emergency Services Retirement System (TESSRS), and the Cancer Prevention and Research Institute of Texas (CPRIT). The Legislative Budget Board outlined recommendations and major changes for each agency, including reductions tied to one-time projects at the Historical Commission, continued funding for courthouse grants, heritage trails, and Holocaust/genocide education, as well as new or modified riders and capital items. For the pension-related items, LBB described funding changes for PRB, ERS, Social Security, and TESSRS, including ERS health plan cost growth driven largely by pharmacy costs, the status of pension funding reforms, and TESSRS’s request for additional state support to address its unfunded liability and staffing needs. Members asked extensive questions about the Historical Commission’s one-time funding, unexpended balance authority, courthouse preservation, the Presidio La Bahia and National Museum of the Pacific War projects, and coordination of Texas history messaging across sites such as the Alamo, San Jacinto, Washington on the Brazos, and other heritage locations. The Historical Commission chair emphasized heritage tourism, economic development, and the need for continued investment in historic sites, staffing, IT modernization, and vehicles. On the pension items, senators discussed PRB oversight of local systems, including the Dallas police and fire pension situation, and ERS investment returns, benchmark comparisons, and rising health costs. ERS officials said the plan remains well funded overall, noted a 2021 cash balance reform and a planned supplemental legacy payment, and explained that GLP-1 drugs such as Ozempic and Mounjaro are a major driver of pharmacy spending; they also said the agency is working with the Texas Pharmacy Initiative and that rebates are contractually returned to ERS. For TESSRS, LBB and agency staff said the system serves volunteer and part-paid emergency personnel, is facing an infinite amortization period, and is requesting additional appropriations, staffing, and IT funding, along with a statutory change to allow an actuarially determined state contribution. The agency said it may otherwise need to cut benefits for volunteer firefighters. For CPRIT, LBB reported about $600 million in recommended funding for the biennium and a 10-FTE increase, while the agency described its $6 billion voter-approved program, $3.75 billion in grants awarded to date, and $10.4 million in revenue sharing since 2011. CPRIT’s only exceptional item was a request for a 10% salary increase for two exempt positions. No committee votes or formal actions were taken in the transcript.