Transcript Highlights:

• The increase in expenditures is due largely to the increase in Medicaid funding.
• These programs represented 67% of the state's total federal expenditures.
• And I’m even looking on, let’s see, page 51, it says the total expenditures...”
• The expenditures that we were reporting in ASIS and the expenditures she reported on 696 didn't equal
• benefits, recycling and disposal costs, and other related expenditures.

Summary: The committee met to adopt prior minutes and reports from its executive and standing committees, including counties and municipalities, educational institutions, and state agencies. Those reports covered routine audit activity, delinquent private water and sewer audits, municipal accounting compliance issues, education audit findings, and several state agency audit items. The committee also reviewed and adopted the State of Arkansas annual comprehensive financial report for fiscal year 2025 and the related single audit report, both presented by Legislative Audit staff. The state financial report showed unmodified opinions on the state’s financial statements and described total assets of about $41.9 billion and liabilities of about $11.1 billion, along with retirement system assets of $39.9 billion and a net pension liability of $9 billion. Two material weaknesses were identified: insufficient internal controls at the Office of State Technology to monitor threats and unauthorized access, and a Division of Workforce Services methodology change for unemployment-related estimates that was not properly documented or approved. The single audit covered $12.4 billion in federal awards across 469 programs, with 16 major programs reviewed; it resulted in 33 findings, 14 with questioned costs totaling $16.6 million, and qualified opinions for the Summer EBT program, the Coronavirus Capital Projects Fund, and the Child Care Development Fund cluster. Members questioned agency officials in detail about the Summer EBT questioned costs, DHS unresolved findings, broadband grant documentation, cyber security controls, workers’ compensation liabilities, and child care funding and reporting. DHS explained that the Summer EBT issue involved drawing federal funds in advance rather than as benefits were redeemed, and said the process has been corrected. Broadband officials said the questioned $6.6 million reflected documentation-detail disagreements across many invoices rather than missing payments. OST officials described new logging, endpoint detection, and phishing-training efforts, and DFA and Education officials addressed specific audit findings and corrective actions. The committee ultimately moved to hold the two large statewide reports over until the August meeting for further review, with discussion continuing on whether to release some agency staff in the meantime.

Transcript Highlights:

• So we’ll start to see a higher level of expenditure in these programs over time.
• Options included using historical revenue data and historical expenditure data.
• . ...provide guidance on the process and the expenditure timelines.
• So while the minimum expenditure level sets out a little more clear path for county expenditures on these
• Thank you. a little more clear path for county expenditures on these programs.

Summary: The subcommittee heard presentations from the Department of State Hospitals (DSH), the Commission for Behavioral Health, and the Department of Health Care Services (DHCS) on budget proposals and implementation updates. DSH outlined its proposed 2026-27 budget, including funding for patient operating expenses, IST solutions savings, conditional release program costs, LPS bed allocation changes, electrical infrastructure projects at Napa and Patton, SB 380 transitional housing feasibility work, and expanded dental services at Metropolitan and Patton. DSH also reported that it has met court-ordered IST treatment benchmarks in the Stiavedi v. Clinton case, with average time to initiate treatment down to about five days and pending placements reduced to roughly 250, while noting that Proposition 36 could increase referrals and SB 1323 may divert some individuals earlier into community-based treatment. Members asked about rising outside hospitalization costs, Medicare enrollment, the timing and structure of capital projects, and whether IST solution funds are being fully used; DSH said the savings reflect slower-than-expected ramp-up of community programs and that the Central California FACT replacement program is still on track for January 2027 activation. The Commission for Behavioral Health described its role under the Behavioral Health Services Act (BHSA), including data, evaluation, grantmaking, technical assistance, and transparency work. It highlighted the new statewide Innovation Partnership Fund, a five-year, $20 million-per-year program with small and large grant categories; the first RFA drew strong interest, with more than 400 questions and over 1,000 bidders’ conference participants. The Commission also discussed a proposed extension to spend down about $4.1 million remaining for the Alcove Youth Drop-in Center grants so sites can finish implementation and Stanford can complete the final evaluation. Members asked about grant duration, whether projects can be renewed, what qualifies as innovation, and whether the fund could support service delivery rather than awareness campaigns or training; the Commission said awards are expected to be three-year contracts and that proposals must be new or meaningfully expanded approaches that support BHSA priority populations. DHCS reviewed major behavioral health changes under CalAIM and BH Connect, including peer support, mobile crisis, contingency management, traditional health care practices for tribal members, updated specialty mental health access criteria, and new substance use treatment standards based on ASAM’s fourth edition. DHCS reported strong contingency management results, with more than 13,000 members served and 95% testing negative for stimulant use during treatment, and said 21 Indian health care providers have been approved to offer traditional health care practices. It also described BH Connect initiatives such as the $1.9 billion access reform and outcomes incentive program, workforce investments, evidence-based practice expansion, IMD participation by four counties, and transitional rent services. On BHSA implementation, DHCS said it is not tracking individual county contract cuts but is monitoring county plans and statewide outcomes, while stakeholders raised concerns about local prevention and service gaps. DHCS also outlined its H.R. 1 implementation strategy, including outreach, streamlined renewals, exemptions for disabled, substance use, and medically frail individuals, and proposed clinic navigator and outreach funding; it said it has not yet produced a focused estimate of H.R. 1 impacts on behavioral health populations. The discussion ended with DHCS noting that B-CHIP bond funding has supported 437 infrastructure projects, creating 546 new or expanded facilities and more than 9,500 residential beds across the state.

Transcript Highlights:

• One of the things is that Melissa talked a little bit about the direct expenditures, direct revenue,
• So with that, I'll turn it over to Cone, who can talk through the expenditure side.
• We do expect reduced expenditures between largely those two agencies again at about $30.7 million to
• And then finally, we have some increased expenditures.
• In the LRO document, I even included some information on tax expenditures. I don't know.

Summary: The Financial Estimate Committee met on July 6, 2026, to begin work on the financial estimate for IP 28, after reviewing the statutory process and confirming that only IP 28 had cleared the signature threshold for consideration. Staff explained the committee’s duties under ORS 250.125 and the timeline for draft statements, public hearing, and final adoption. The committee also designated Carol Moreno C. Fuentes to file the committee’s eventual statements. Staff from the Department of Administrative Services and the Legislative Revenue Office presented preliminary analysis of IP 28, describing major uncertainties in estimating impacts because the measure is not a tax law change and would affect multiple industries and government functions. Preliminary figures discussed included an estimated $56.5 million loss in the current biennium and $6.7 million in reduced expenditures, with larger projected revenue losses of roughly $244.1 million to $258 million and reduced expenditures of $30.7 million to $34.9 million in 2027–29, plus $87.8 million to $88.3 million in increased expenditures. Analysts said the biggest effects would likely involve agriculture, fish and wildlife, hunting and fishing, local government enforcement, and possible shifts in state funding, but many impacts remained difficult to quantify. Committee members raised concerns about local government costs, law enforcement and prosecution burdens, impacts on the hospitality and recreation sectors, possible effects on tribal governments and treaty rights, and whether the measure would affect shellfish and crabbing. They also discussed the Humane Transition Fund, subsidies, possible litigation costs, and whether the statement should include broader uncertainty language and multiple scenarios. Members generally agreed the draft should be revised to better reflect uncertainty, clarify assumptions, and possibly use bullets or other formatting to improve readability. No vote was taken. The committee agreed to treat the current draft as a working version, with staff to revise it based on the discussion and return an updated draft before the next meeting scheduled for July 17 at 2 p.m., with both in-person and virtual participation available.

Transcript Highlights:

• know what the total expenditures are of your city?
• Total expenditures for general fund? Total expenditures for general fund were just over $100,000.
• The other one was, in terms of advertising expenditures, the district...
• So the expenditures for advertising, which appear to be greater than the average expenditures by other
• The city had federal expenditures in excess of $750,000 in 2024, 2023, 2022, and 2021.

Summary: The committee approved the prior meeting minutes and then received updates on delinquent water and sewer reports, including seven new reinstatements and a reduction to four remaining delinquent filers. Staff also reported on municipal accounting code noncompliance, removing Denning and Gum Springs from the 60-day clock after improved records were verified, and presenting repeat findings for Fargo, Lead Hill, Alma, Jericho, and Haynes. Members discussed repeated audit problems, the length of time some issues had persisted, and whether towns should be given additional time or face stronger action; motions were made and adopted to place some entities on a 60-day clock or defer action to later meetings. For Fargo and Alma, staff described extensive repeat accounting deficiencies, including missing budgets, bank reconciliations, financial statements, receipts, journals, and supporting documentation. Fargo’s mayor said the town had been understaffed and was beginning to improve its office systems; the committee voted to defer the matter for 60 days and file the report. Alma’s officials said they were trying to correct water audit and accounting issues, and the committee likewise deferred the matter to the August meeting while warning that water-audit delays could jeopardize turnback funds. The committee then reviewed misuse-of-street-funds findings for Jericho and Haynes. Jericho’s police chief and officials explained that traffic fines, drug-related arrests, and other citations had pushed the town over the statutory threshold, while staff clarified that the speed-trap calculation excludes certain add-on fines and is referred to the prosecuting attorney for any action. Haynes officials said repayment problems stemmed from lost revenue and staffing changes, including the loss of the police department, but staff reported the town remained behind on its repayment plan and also owed the IRS. The committee voted to defer the Haynes matter to September and to defer Jericho as well, with members emphasizing the need for consistency and possible broader legislative review of small-town viability. A special report on the Pulaski County Regional Solid Waste Management District drew substantial discussion. Staff cited findings involving board approval of payroll and contracts, credit card documentation, car allowances and personal vehicle use, competitive bidding, and unusually high advertising spending, as well as the sale of trailers and other equipment at low prices. The district director said the board had delegated authority for many expenditures, that personal use was reported for tax purposes, and that advertising was necessary to educate the public about recycling. Members questioned the procurement and disposal decisions and the size of the advertising budget; after discussion, the committee deferred the report to September and asked the director to return. The meeting also included brief deferred reports on Biggers, Gilmore, and Holly Grove, which were filed after local officials described ongoing efforts to resolve long-standing audit and tax issues.

Transcript Highlights:

• And then, of course, one that was just released last fall: the tax expenditure budget.
• <00:07:53.120> uh expenditure uh expenditure uh budget<00:07:55.000> uh<00:07:55.199>
• notice previously in the tax expenditure notice previously in the tax expenditure budget<01:03:35.520
• <01:09:42.359> budget page 150 of the tax expenditure budget page 150 of the tax expenditure
• <01:22:37.360> working her work on the TAC expenditure working her work on the TAC expenditure

Keywords: 1183, house

Transcript Highlights:

• and their capital expenditures.
• and their capital expenditures.
• and their capital expenditures.
• So right now, it's just on capital expenditures. Again, so it's capital expenditures.
• You know, it's 40% capital expenditure and 60% operating expenditure.

Keywords: 1191, senate, all

Transcript Highlights:

• And so just we're thinking about the second item was under expenditure on page six, line 22.
• I was just trying to think of when I'm doing all my expenditures and putting them into those categories
• I don't remember contemplating where a deposit of money was an expenditure. So, I'm good eye.
• That's when we created those buckets of expenditures, and there was a big discussion of do we want to
• have a big... ...those buckets of expenditures, and there was a big discussion of do we want to have

Keywords: 908, all

Summary: The committee resumed discussion of a campaign finance reporting bill and related amendments, focusing on whether the new reporting system should require beginning and ending fund balances for candidate committees and other entities. Representative Koppelman said he supported the modernization and software improvements, such as auto-populating donor information and aggregating contributions, but opposed making running balances mandatory because he viewed them as unnecessary for reporting and potentially burdensome. He also raised questions about language on contributions and expenditures, including whether certain uses of property or deposits were being classified correctly. Secretary of State Mike Lau responded that the questioned language on pages 5 and 6 was existing law, but said the beginning and ending fund balance on page 13 was important to the new system because it would allow amended reports to populate correctly across years. He said removing that requirement would effectively create two separate systems, and that the vendor could implement changes only if required by law. Members discussed whether the balance information could be hidden from the public, whether a zero-start approach would work, and whether an opt-in checkbox could avoid requiring all filers to use the same format. The committee did not take a final vote. Instead, the chair said the bill would go back to the subcommittee, with Representative Steiner and the Secretary of State’s office to continue working on the issue, and Representative Koppelman included in further discussions. The chair indicated the group would meet again later in the week to try to move the bill forward.

Transcript Highlights:

• <01:16:10.639> to large contributions and expenditures to large contributions and expenditures
• <01:18:25.880> electioneering expenditures electioneering expenditures electioneering Communications
• folks who do independent expenditure folks who do independent expenditure work<01:24:45.679>
• It is the same; this just requires that to be true of independent expenditures as well.
• <01:35:35.600> in we're talking about expenditures in we're talking about expenditures in

Keywords: 1187, senate, all

Transcript Highlights:

• Expenditures are expected to total about 5.2 billion with CHP and DMV expenditures of about $3.2 billion
• There's a number of different expenditures that are in here that are out of the GGRF, and obviously as
• particularly in the 24-25 budget, One, that it planned expenditures of GGRF.
• A portion of the GGRF funding shift is dependent on shifting planned expenditure. Prop. 4 monies.
• And also to help inform future expenditures. What is most effective? What strategy?

Keywords: 988, house, all

Transcript Highlights:

• Part two will look at expenditures from fund sources beyond foundation aid, reviewing best practices
• Yes, we can track the expenditure sources.
• In 2025, 94% of EL categorical expenditures were spent on salaries and benefits.
• My question is on slide 26, the top five ESA categorical expenditure categories.
• And in that yellow line, this is showing, again, total expenditures from PD categorical funds.

Summary: The committee approved the March 9 and 10 minutes and then heard a presentation from the Arkansas Department of Education on the Arkansas Excellence in Teaching Fellowship, featuring three third-grade teachers from Cabot, Poyen, and Drew Central who are also teacher merit pay recipients. The teachers described the fellowship as a year-long Zoom-based collaboration with about 23 educators statewide, focused on sharing classroom strategies, data use, and professional support. Members asked about the teachers’ experience, how they share what they learn with their districts, the range of grades represented in the fellowship, and the relationship between the fellowship and merit pay. The teachers emphasized building relationships with students, using data to drive instruction, early intervention, and collaboration across grade levels, while the secretary said the program is intended to identify and elevate high-performing teachers and spread their practices. A major portion of the discussion focused on third-grade reading, retention, and the new ATLAS testing system. Teachers and the secretary said students are screened and progress monitored throughout the year, families are notified early if students are at risk, and schools are using interventions, tutoring, and individualized reading plans. They said ATLAS results are now available much faster than in the past, often within 24 hours or a few days, allowing teachers and parents to respond quickly. Members asked about the impact of poverty, trauma, foster care, DHS involvement, IEPs, and critical shortage areas; teachers said relationship-building, small-group instruction, and coordination with counselors and special education staff are key. The secretary said the fellowship is a small subset of a broader merit pay program, that participation was voluntary, and that the state is trying to build a coherent system with literacy coaches, high-impact tutoring, and clearer standards rather than teaching to the test. Members also discussed broader policy issues, including the need for more positive public messaging about public education, teacher input in decision-making, and support for early childhood education. Several legislators asked whether the state should expand funding for early learning and whether more literacy or academic coaches are needed in districts that improve and then lose eligibility for state support. The secretary said the state has committed literacy coaches to D and F schools and is still working through how to sustain support as schools improve. He also said the administration would look at data and return on investment before supporting additional funding, and he encouraged legislators to help recruit eligible teachers into future fellowship cohorts. After the teacher panel concluded, the committee moved on to the adequacy resource allocation study, where Bureau of Legislative Research staff began a presentation on state and local education funding sources, categorical funds, and district spending patterns.

Transcript Highlights:

• So we’ll start to see a higher level of expenditure in these programs over time.
• Options included using historical revenue data and historical expenditure data.
• So while the minimum expenditure level sets out a little more clear path for county expenditures on these
• So it would be that next cycle where that minimum expenditure level would all go into place.
• So 2029 is when—so 2030 would kick in for the minimum expenditure level? Yes. So, yes.

Keywords: 987, senate, all

Summary: The subcommittee heard updates from the Department of State Hospitals on its proposed 2026-27 budget, including a $3.2 billion total budget, patient-driven operating cost increases, savings in the IST solutions program, and progress in meeting the Stiavedi court-ordered 28-day treatment standard. DSH reported it has met court benchmarks, reduced the IST pending placement list from a pandemic high of 1,953 to about 250, and is now averaging about five days to initiate treatment. Members asked about the effects of Proposition 36 and SB 1323 on referrals, outside hospitalization costs, Medicare coverage, and whether IST solution funds were being overbudgeted; DSH said referrals are slightly down overall, outside medical costs are rising due to inflation and an aging population, and the IST savings reflect slower-than-expected activation of community programs rather than a service gap. The department also outlined proposed funding for electrical infrastructure upgrades at Napa and Patton, a feasibility study under SB 380 for transitional housing for the CONREP SVP program, and a dental services expansion at Metropolitan and Patton. The committee held those DSH items open after discussion. The Commission for Behavioral Health presented its role in overseeing the transition from MHSA to BHSA, including data, evaluation, transparency, grantmaking, and technical assistance. It described the new Innovation Partnership Fund, a statewide innovation grant program funded at up to $20 million annually for five years, with small and large grants, and said it had received strong interest ahead of the May 8 application deadline. Members asked about what qualifies as innovation, whether grants could be renewed, and how the state would ensure the program supports service delivery rather than general outreach or training. The commission also sought a liquidation deadline extension for up to $4.062 million in remaining Alcove Youth Drop-in Center funds so sites can finish implementation and Stanford can complete the final evaluation; that item was also held open. DHCS provided an overview of behavioral health policy changes under CalAIM and BH Connect, including peer support, mobile crisis, contingency management, traditional health care practices for tribal members, the access reform and outcomes incentive program, workforce investments, evidence-based practice expansion, IMD participation, transitional rent, and upcoming youth-focused guidance such as high-fidelity wraparound and activity funds. On BHSA implementation, DHCS said it is not tracking specific local program cuts, but is monitoring county plans and outcomes while noting that counties must still preserve Medi-Cal specialty mental health and DMC-ODS services. The department also discussed its H.R. 1 implementation strategy, including outreach, streamlined renewals, ex parte exemptions, and proposed clinic navigator and outreach funding to reduce Medi-Cal coverage loss, especially for people with behavioral health needs. In response to questions, DHCS said it has not produced a specific H.R. 1 impact estimate for county behavioral health populations, and later explained that counties can still use BHSA and other funding streams for prevention and early intervention while the state tracks impacts through integrated plans and new performance measures. The department also reported on BH-CHIP bond spending, saying it has awarded $5.8 billion for 437 infrastructure projects creating 546 new or expanded facilities and more than 9,553 residential beds, with tribal set-asides exceeding the original allotment.

Transcript Highlights:

• area, it's sort of an exception to lobby expenditures.
• A direct campaign expenditure only committee, um, but we'll, we'll start with that.
• However, it could make direct campaign expenditures, uh, and it could also make contributions to direct
• campaign expenditure only committees.
• I don't think these receipts pertain to that, but I have $140 in gas expenditures just in a few weeks

Transcript Highlights:

• But we were looking at the correlation of expenditures at this point, and that's what led to this policy
• But we were looking at the correlation of expenditures at this point, and that's what led to this policy
• And in the past few years, the funding has just gone up astronomically, but certain expenditures... .
• ..years, the funding has just gone up astronomically, but certain expenditures, according to the data
• And the ACE expenditures for 23-24, what they reported to the department was that out of roughly $30

Summary: The Pre-K through 12 Budget Subcommittee met during Budget Week and first considered three member bills. House Bill 1111, by Rep. Valdes, would eliminate the option for students to leave high school with a certificate of completion instead of a standard diploma. Valdes said the bill was inspired by students who met credit requirements but could not pass a required assessment, and argued the certificate does not provide access to college, trade school, or military service. The bill passed unanimously, 15-0. CS for House Bill 127, by Rep. Kendall, would support students with disabilities by using existing Florida Department of Education curriculum to create micro-credentials and coordinating with the Florida Center for Students with Unique Abilities and OSHA on workplace safety. Goodwill, the Florida Developmental Disabilities Council, Florida PTA, and others supported the bill, which also passed unanimously, 15-0. House Bill 1367, by Rep. Booth, addressed chronic absenteeism by requiring statewide definitions and more uniform attendance reporting, along with rules for excused and unexcused absences and early identification of chronically absent students. Testimony emphasized inconsistent district policies and the need for clearer data and interventions. The bill passed 13-0, with some members noting concerns about implementation details and future rulemaking. The committee then took up PCB-P-PKB-2501, the proposed conforming bill for the fiscal year 2025-2026 Pre-K through 12 budget. The chair said the bill was designed to align statutes with budget and scholarship funding procedures, especially around the Florida Education Finance Program and scholarship payments. The PCB would require Florida student ID numbers for scholarship students, standardize cross-checking against FTE survey data, set quarterly payment dates, and use one data source for both reporting and withholding scholarship-related FFP amounts. It also would reduce certain add-on weights by 50%, remove the budget stabilization program, and repeal the educational enrollment stabilization program. Several members raised concerns that the add-on weight reductions could hurt career and technical education, AICE, IB, and CAPE programs, while the sponsor argued the data showed too much spending in an “other” category and that the reductions were aimed at aligning funding with actual program costs. Public testimony was mixed: some supported tighter accountability and clearer payment rules, while others warned against undermining expensive career-readiness programs. The PCB passed 11-2. After the conforming bill, the chair presented the proposed fiscal year 2025-2026 Pre-K through 12 budget, totaling just under $21 billion, about $400 million below the current year. She said the budget reflects a need to slow spending growth and includes $20 million for New Worlds Scholarship Accounts, $7 million for security grants at Jewish day schools and preschools, $14 million for public school transportation stipends, an overall FEFP increase of about $747.7 million, $100 million for teacher salary increases, and increases in the base student allocation and funds per student. The committee did not vote on the budget recommendation at this meeting; it was distributed for review and will move to the Budget Committee next week.

Transcript Highlights:

• HB 5267 requires that city and county budget expenditures be limited to no more than a rate each equal
• It clarifies that in cases where the spending limit is exceeded because of disaster expenditures, that
• You'd probably have some concerns that about how this would tamp down their expenditures.
• The budget, not including capital expenditures, is 5.9 billion dollars.
• They have much higher capital expenditures, for example, than police departments and fire departments

Bills: HB386, HB1449, HB1701, HB2142, HB2675, HB2857, HB3063, HB3171, HB3641, HB3732, HB4045, HB4370, HB4491, HB4505, HB4626, HB5267, HB5356

Keywords: construction contracts, change orders, local government, budget limits, Texas legislation, HB 1449, mobile food vendors, food trucks, mobile food service establishments, permits, county health permit, municipal permitting, Health and Safety Code Chapter 437A, Chapter 437, inspection agreements, permit reciprocity, fee cap, preemption, large counties, population over one million

Transcript Highlights:

• So those are the pieces that deal primarily with independent expenditures.
• So that it's very clear that they're not associated with the independent expenditure.
• As long as I don't have an independent expenditure, I don't have to worry about this.
• It is only for an independent expenditure PAC or super PAC. Also called that.
• As long as it's not an independent expenditure, I'm still clear and okay with Secretary Steele.

Transcript Highlights:

• So it creates a burden on independent expenditures, and the Supreme Court has held that independent expenditures
• expenditures has held that independent expenditures cannot<01:21:37.159> lead<01:21:37.600>
• Because if it's independent expenditures, it'll impose like a fee on expenditures.
• <01:25:09.840> are 5% uh the independent expenditures are 5% uh the independent expenditures
• <01:37:56.719> made<01:37:56.920> by independent expenditures made by independent expenditures

Keywords: 912, senate, all

Summary: The committee heard testimony on SB 114, which would create a presidential preference primary for the 2028 election. The Office of Elections said the bill would cost about $4.1 million. Supporters, including the Hawaii Democratic Party and the League of Women Voters, favored moving the process to a state-run primary, while several opponents, including the Hawaiian Islands Republican Women and multiple individual testifiers, argued it would be too expensive, would shift control away from the parties, and would replace volunteer-run caucuses with a mail-in system. Committee members questioned the chief election officer about election timing, certification, and how a primary might be scheduled with other elections. Testimony was recorded as 11 in support, 41 opposed, and 3 comments, and no vote was taken in the excerpt. The committee then took up SB 725, which would require judges to make findings about a defendant’s ability to afford bail. Judiciary and Attorney General witnesses asked that the bill be deferred or amended, saying the Judicial Council is already reviewing pretrial bail reform and that the bill’s language could create practical problems for police, sheriffs, and courts. Supporters, including the Correctional System Oversight Commission, the public defender, the Community Alliance on Prisons, the ACLU of Hawaii, and disability rights advocates, said cash bail disproportionately harms low-income defendants, increases pretrial detention costs, and should require clearer findings and records. Opponents included the Hawaii County prosecuting attorney. Members questioned how bail is initially set, what records exist, and whether the bill would change current practice; Judiciary witnesses said initial bail decisions are often made by police or judges and later reviewed on the record, while supporters argued the bill would strengthen front-end due process. The ACLU said it supported the bill with amendments, including clearer standards for ability to pay and written findings. The committee also began hearing SB 733, a proposed constitutional amendment to establish a continuous legislative session. Early testimony was strongly supportive, with advocates arguing that the current 60-day session limits public participation, makes it hard for working people to testify, and prevents lawmakers from collaborating effectively. Supporters said a year-round model could improve transparency, reduce duplicate bills, and better accommodate neighbor island legislators. The excerpt ends during the opening testimony on SB 733, before any committee action or vote is shown.

Transcript Highlights:

• And then on with regard to to... ...with regard to the strategic plan approach for the expenditure of
• We have every Assembly Member is making a request for new expenditures.
• The Governor's making a request for new expenditures.
• Every Assembly Member is making a request for new expenditures.
• The Governor's making a request for new expenditures.

Summary: The Assembly Budget Subcommittee heard the administration’s spending plan for Proposition 4’s climate smart agriculture and biodiversity chapters, along with related trailer bill language. CDFA outlined proposed funding for existing programs such as SWEEP, Healthy Soils, Urban Agriculture, and invasive species work, plus new or phased-in programs including year-round and mobile farmers’ markets, tribal food sovereignty, and regional farm equipment sharing. The Department of Conservation described funding for the California Farmland Conservancy Program and Working Lands and Riparian Corridors Program, while the Department of Finance and LAO discussed pending allocations and generally found the overall approach reasonable, though LAO suggested the Legislature may want more statutory guidance and reporting, especially for new programs. Members focused on implementation details, equity, and accountability. Questions covered how programs would serve vulnerable and disadvantaged communities, whether new solicitations would be reopened for previously oversubscribed grants, how outcomes are tracked, and how to structure guidance for new programs such as farm equipment sharing. The chair emphasized that the Legislature wants clearer direction on program design and noted that AB 2313 should guide implementation of the regional farm equipment sharing allocation. The committee also discussed the administration’s request to directly appropriate bond funds to departments and to exempt bond program guidelines from the Administrative Procedures Act; LAO supported the APA exemption with possible legislative guardrails for public notice and comment. The committee then heard on the farm-to-school proposal, with CDFA requesting $24.9 million General Fund for incubator grants, technical assistance, and network support. CDFA said the program has reached nearly half of California schoolchildren and has shown strong demand and positive evaluation results. LAO supported the core program but recommended rejecting the $3 million technical assistance component as too broad and suggested the Legislature consider using Proposition 98 for some of the funding. Members debated that point, with some expressing concern about using General Fund dollars for a new discretionary request during a tight budget year. The biodiversity and nature-based solutions chapter included funding for the Wildlife Conservation Board, state conservancies, and tribal nature-based solutions. WCB described major recent investments and proposed projects tied to 30 by 30, habitat restoration, tribal partnerships, and public access. Members raised concerns about long-term stewardship, the size of the WCB allocation, and whether the Legislature should receive more detail on how funds will be distributed. The committee also heard requests for Bolsa Chica wetlands maintenance and Rincon Island decommissioning funding from the State Lands Commission, with members questioning long-term liability, remediation costs, and the role of private oil operators. No votes were taken, and the hearing ended with public comment from stakeholders largely supporting the APA exemption, farm-to-school funding, biodiversity investments, and related conservation programs.

Transcript Highlights:

• <00:03:14.959> for provide a breakdown of expenditures for provide a breakdown of expenditures
• on some of the expenditures. Picking on some of the expenditures.
• <01:31:15.440> break on page four for the expenditure break on page four for the expenditure
• So the next page for expenditure So the next page for expenditure breakdown<01:31:43.280> for
• >> So uh just to clarify that expenditure >> So uh just to clarify that expenditure type<

Keywords: Meeting Start 00:00:00 Attendance Roll Call 00:00:07 Chair Comments 00:00:36 Approval of Minutes 00:04:01 Volunteers of America 00:04:21 Soil and Water Conservation/Energy and Environment Cabinet 00:14:52 Kentucky Office of Drug Control Policy/Justice & Public Safety Cabinet 00:21:05 Kentucky Department of Agriculture 00:26:01 Early Childhood Advisory Council 00:45:18, 958, all

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

Transcript Highlights:

• Program requirements, population served, expenditure data, and oversight challenges will be discussed
• <00:15:57.600> in districts record the RT expenditures in districts record the RT expenditures
• <00:16:10.000> when<00:16:10.320> actually revenues and expenditures when actually
• revenues and expenditures when actually the<00:16:11.199> districts<00:16:12.000> these
• They did have some questions about the expenditures, but other than that, we have not really had any

Keywords: Call to Order and Roll Call: 00:22 Office of Education Accountability Report: Early Childhood Regional Training Centers (RTCs): 01:22 Approval of July 14, 2025 Minutes 31:21 Office of Education Accountability: 2025 Study Agenda 32:35 Adjournment: 39:12, 958, all

Summary: The subcommittee heard an Office of Education Accountability report on Kentucky’s early childhood regional training centers (RTCs). OEA said the centers provide valuable training, consultation, technical assistance, and materials for preschool personnel, especially for children with disabilities and at-risk students, and that the services align with state and federal requirements. However, the report found uneven student and teacher populations across regions, wide variation in per-student funding, some staffing data inaccuracies, and several fiscal oversight concerns, including inconsistent indirect cost rates, a building rental charge that may have been duplicative, and host districts recording RTC expenditures in a way that could blur them with district finances. OEA also said some documentation of progress toward goals was incomplete and that the technology lending library appeared underused. The report recommended stronger KDE oversight, uniform coding and accounting practices, review of budgets and expenditures, and an evaluation of whether the current five-center model remains the most efficient structure; OEA also suggested the General Assembly may wish to revisit KRS 157.318. Members asked about KDE’s response, whether the centers are required by federal law, how the centers operate, and whether changing the model would affect federal funding. OEA said KDE had only discussed the findings informally and had not issued a formal response, the centers are required by state law but not federal law, and changing the model would not jeopardize IDEA preschool funds. The committee accepted the report by motion. The subcommittee then approved the minutes from its July 14, 2025 meeting after initially delaying action because quorum was not yet present. After that, members turned to the Office of Education Accountability’s proposed 2026 study agenda. OEA said the three proposed topics are the annual district data profiles, facilities funding, and implementation of early literacy statutes. The district profiles would add an appendix showing the number and percentage of students moving to private school or homeschool by district and another appendix noting data-quality issues that affect comparability. OEA explained that district staffing data can undercount contract staff because those employees are not always entered into the system, and members expressed interest in tracking whether prior recommendations were implemented. One senator also raised a separate interest in reviewing whether KDE created and implemented regulations related to KFIX. The discussion remained informational, with no final vote on the study agenda shown in the transcript excerpt.

Transcript Highlights:

• This is where the court was looking at expenditures per pupil and education opportunities available.
• So the focus is on the actual expenditures per pupil and not whether ...expenditures.
• It's not intended to reimburse districts for their expenditures.
• So the first two columns are showing categories of expenditures that must be reported.
• So the first two columns are showing categories of expenditures that must be reported.

Summary: The meeting began with approval of the prior minutes and then shifted to an update from Department of Education Secretary Jacob Oliva and Deputy Commissioner Stacey Smith on early childhood education, especially the state-funded Arkansas Better Chance (ABC) program. They said Arkansas had received a federal Preschool Development Grant and described ABC as a large state program with about 23,800 funded slots and roughly $114 million in annual appropriations. Department officials said they are reviewing slot allocations because about 1,000 seats are funded but unfilled, while more than 2,000 families are on waiting lists, and they plan to reduce or reallocate slots from providers that have not filled them over several years. They also said they are examining whether income thresholds, curriculum expectations, daily rates, and summer programming should be updated, and members raised concerns about access, local control, transportation, and whether the program should better align with K-12 choice and school readiness goals. The committee agreed to form an early childhood subcommittee and asked the Bureau of Legislative Research to help gather historical data and other information for future discussion. The committee then received a legal presentation from BLR attorney Taylor Lloyd on the constitutional and statutory framework for education adequacy in Arkansas. She reviewed the Dupree and Lake View cases, explaining that the state must maintain a general, suitable, and efficient system of free public schools, and that adequacy and equity are distinct but related concepts. She emphasized that the General Assembly is responsible for defining adequacy, studying whether the system meets that standard, and reacting to the evidence, while the courts ultimately decide constitutional compliance. Lloyd also explained the current adequacy definition, the role of the matrix as a funding tool rather than a spending mandate, and the distinction between unrestricted foundation funding and restricted categorical funding. BLR’s Elizabeth Bynum followed with a historical overview of how Arkansas responded to the court cases and developed the current adequacy process. She traced major legislative actions from the 1980s through the Lake View litigation, including the creation of funding formulas, categorical aid, isolated funding, declining enrollment funding, and the 2003-2004 adequacy study that led to the Continuing Adequacy Evaluation Act and the matrix used to set foundation funding. She also described later changes to the adequacy statute, the financial reporting requirements for districts, and the ongoing use of surveys, stakeholder testimony, and consultant studies in the biennial adequacy process. Members asked questions about whether private or homeschool programs could use public funds for expenses like utilities, whether stakeholders should include those groups, the difference between average daily membership and attendance, and whether school board members are surveyed; staff said those issues would need further research or were outside the scope of the presenters’ role.