Transcript Highlights:

• Let me tell you more about their impact.
• So I want to know about the inflation issue and how the administration looks at what the level of inflation
• When accounting for inflation, we are still at pre-Great Recession funding levels, not adjusted for inflation
• In addition to funding Chapter 70 at a level that takes into account the real impact of inflation, we
• Have you seen an impact?

Committee: Joint Joint Committee on Ways and Means

Summary: The hearing was a Joint Committee on Ways and Means budget session held in Lawrence focused on the governor’s proposed FY27 education and local aid budget, with remarks from legislative co-chairs, local officials, and education agency leaders. Acting Mayor Giovanni Rodriguez and Superintendent Ralph Carrero emphasized Lawrence’s high-need student population, the importance of Chapter 70 and Student Opportunity Act funding, and the impact of state aid on schools serving many English learners and low-income families. Carrero highlighted Lawrence High School programs such as early college, dual degrees, career pathways, and early childhood classrooms embedded in the high school, while lawmakers introduced themselves and noted the importance of the hearing to their districts. Acting Secretary of Education Amy Kershaw, Commissioner of Higher Education Noi Ortega, Commissioner of Elementary and Secondary Education Pedro Martinez, and Commissioner of Early Education and Care Amy Kershaw outlined the administration’s FY27 priorities. They described investments in literacy initiatives, universal school meals, student mental health, early college and career pathways, higher education affordability, community college and university student-success supports, preschool expansion, child care subsidies, and workforce supports for early educators. The commissioners also discussed federal funding threats, equity gaps, and the administration’s efforts to improve outcomes for Black and brown students, multilingual learners, students with disabilities, and low-income students. Members questioned the panel about the local contribution formula study, the final year of Student Opportunity Act implementation, and the need to revisit Chapter 70 funding to better address rising costs such as special education, transportation, and health care. Officials said the local contribution study report is expected by the end of June, with a draft to be shared after data analysis and public comment. Commissioner Martinez said the Student Opportunity Act narrowed funding gaps but more work is needed, and he pointed to a proposed Accelerating Achievement Initiative to support the highest-need schools. Senator Oliveira also raised concerns about Chapter 70 disparities and asked about partnerships with libraries to support literacy, prompting discussion of broader early literacy collaboration.

Transcript Highlights:

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

Summary: The subcommittee opened with remarks on the Senate’s budget plan for affordable housing and homelessness, including a proposed $2 billion housing investment and full funding for HHAP rounds 7 and 8. The first major item was the administration’s housing reorganization and trailer bill package, which would codify the new Housing Development and Finance Committee (HDFC), consolidate multifamily housing finance programs into a one-stop application and award process, and shift some authority over bonds, tax credits, and the Affordable Housing and Sustainable Communities program. Administration officials said the goal was to reduce duplication, speed projects from award to construction, and improve accountability by aligning financing decisions. The LAO generally supported the streamlining concept but recommended changes to the proposed bond set-aside and earlier reallocation of unused bond authority, and suggested preserving flexibility for integrated applications and reporting back on the proposed 70/30 split for housing versus sustainable communities funding. Committee members, especially Senator Cabaldon, raised concerns that the new committee structure could add process and delay, and questioned whether the proposal was effectively repurposing the climate-oriented ASIC program into a housing finance tool without enough direct investment in core housing programs. Administration witnesses responded that the structure was meant to create transparency, public accountability, and simultaneous financing awards, and said the proposal was only a first step in a broader consolidation effort. Members also asked about specific programs such as the Joe Serna Farm Worker Housing Grant Program and the Sustainable Agricultural Lands Conservation Program, and staff said those would remain within the broader streamlined framework or the flexible sustainable communities allocation. The committee then heard from CDLAC and TCAC on federal tax credit changes and state housing finance. Staff explained that H.R. 1 increased the federal 9% LIHTC allocation and, more importantly, lowered the bond-financing threshold for 4% credits from 50% to 25%, allowing California to finance many more projects. They reported emergency regulations were adopted quickly to implement the change, resulting in 195 projects and more than 25,000 units in the 4% program, while the 9% program funded 58 projects and nearly 3,000 units. Members asked about the value of the state low-income housing tax credit program and rehabilitation projects; staff said state credits remain important for filling financing gaps and that a portion of bond and credit resources is now set aside for acquisition and rehabilitation. Finally, the Civil Rights Department reported on the effects of federal civil rights rollbacks and on three limited-term or expiring programs: California vs. Hate, the Community Conflict Resolution Unit, and Investigations and Conciliation Enhancement. Director Kevin Kish said federal closures and funding cuts have increased demand on the department, which now has more than 12,000 open matters, up from 8,700 a year earlier, and a six-month wait for intake interviews despite overtime triage and early case screening. Members urged continued funding for the programs, arguing they are essential as federal protections weaken; department staff said California vs. Hate connects callers quickly to support services, the conflict resolution unit fills a gap left by the shuttered federal counterpart, and the limited-term investigators have helped reduce wait times even as filings continue to rise.

Transcript Highlights:

• The Article IV Courts and Agencies remain impacted by increasing costs due to the impact of inflation
• The Article IV Courts and Agencies remain impacted by increasing costs due to the impact of inflation
• The Article IV courts and agencies remain impacted by increasing costs due to inflation, the draw of
• The Article IV courts and agencies remain impacted by increasing costs due to inflation, the draw of
• by inflation.

Bills: SB 1

Committee: Senate Finance

Transcript Highlights:

• House Bill 2394, enhancing public safety and enforcement of crimes that impact insurance, with a staff
• We’re not clear on why we would calculate the, apply an inflation calculator to outstanding balances
• $15 a year, assuming recent trends in inflation continue.
• The bill directly increases the maximum amount to $1,200 and indexes it to inflation.
• So that impacts emergency responders. It impacts business.

Summary: The committee held public hearings on several bills. House Bill 2542 would require drug developers to use validated non-animal testing methods when available, unless federal regulators request animal testing. The sponsor said the bill builds on prior Washington action on cosmetics testing and is intended to move toward more humane and modern science. Supporters, including students, animal welfare advocates, and biotech-related witnesses, argued that animal tests often fail to predict human outcomes and that alternatives are more accurate. A biotech industry representative said animal testing is still necessary for some research and warned the bill could deter local innovation, but said the industry was open to amendments. The sponsor said she was open to discussing changes to the enforcement mechanism. No vote was taken on the bill during the hearing. House Bill 2629 would address theft and vandalism of critical communications infrastructure, including copper and fiber lines. The bill would ban cash payments for nonferrous metal transactions, require electronic or stored-value payment methods, impose civil penalties for stolen copper used in telecommunications cable, and create a new Class C felony for destruction of critical communications infrastructure. The sponsor and industry witnesses described repeated outages affecting 911, hospitals, schools, and first responders, and said Washington has a high rate of these incidents. Recycling industry representatives supported the bill after negotiations, but a prosecutor and some others said the bill should focus more on law enforcement tools such as searchable transaction databases and holding periods rather than new penalties. No final action was taken in the hearing. House Bill 2394 would expand the Insurance Commissioner’s insurance fraud program and create a Class B felony for insurance fraud, including fraudulent billing, misrepresentation of repair costs, and misuse of coding systems. The bill also broadens who can be considered a victim for restitution and gives the commissioner additional investigative tools, while the substitute removed a reporting duty for certified public accountants. The sponsor and the Insurance Commissioner’s office said the measure responds to more sophisticated, technology-driven fraud schemes that harm both insurers and consumers. Insurance industry and fraud bureau witnesses supported the bill as a consumer protection measure. No vote was taken. House Bill 2361 would raise the maximum principal amount for small loans from $700 to $1,200, with annual inflation adjustments, while keeping the existing 30% of monthly income cap and other safeguards. The sponsor said the change would better reflect emergency costs and help borrowers avoid illegal lenders. DFI raised implementation questions about inflation adjustments and publication requirements, and opponents from AARP, SEIU 775, poverty advocates, and consumer attorneys argued the bill would increase debt traps and fees for low-income borrowers and older adults. MoneyTree supported the bill, saying the current cap is outdated and that the product remains a flat-fee, regulated credit option with existing consumer protections. The hearing also included testimony on House Bill 2294, which would prohibit negative use restrictions on real property that block grocery stores or pharmacies; staff described a proposed amendment adding notice and changing enforcement, and the committee then moved the bill out with a due pass recommendation.

Transcript Highlights:

• So, just me personally, when I see numbers around inflation, to me that's an assumption... around inflation
• We all know the impact of the budget clearly.
• One, it has a tremendous impact on... ...ways.
• I thought the position rates were fixed, and that the impact on the increased cost. that the impact on
• Healthcare inflation is a serious issue.

Transcript Highlights:

• Mainly, our insurance premiums are up basically because of inflation and the things that we can't do
• </c> unscrupulous actors who go and inflate unscrupulous actors who go and inflate bills<00:09:37.160
• </c> four or five times um to an inflated four or five times um to an inflated amount<00:09:48.640><c
• In terms of the premium impact analysis and the total cost of health care impact, according to that statement
• </c><00:19:52.240><c> on</c><00:19:52.400><c> local</c> minimal or no fiscal impact on local minimal

Summary: The committee met with a quorum and took up several insurance and health-related bills, beginning with Senate Bill 18, which was presented by Senator Girdler and insurance witness Adam Sheridan. The bill was described as addressing a shortage of garage liability insurance for used auto dealers in Kentucky, which has left many small dealers with only one or two coverage options and, in some cases, unable to obtain the insurance needed for a dealer license. The committee adopted a motion and second, then passed SB 18 unanimously and reported it favorably with the recommendation that it pass on the House floor. The committee then considered Senate Bill 24, also presented by Senator Girdler with testimony from Eric DeCampo of the National Insurance Crime Bureau. The bill was framed as an anti-fraud measure that would expand the definition of a fraudulent insurance act to cover misrepresentations about property damage and repair costs in property insurance claims. Testimony emphasized that insurance fraud raises premiums for consumers and that the bill would help deter inflated or fabricated claims. After a brief question about whether the bill created new felonies, the committee voted to pass SB 24 unanimously and report it favorably. House Bill 524, presented by Rep. Aaron Thompson with officials from the Office of the Controller and State Risk, would extend reinsurance requirements for the state’s fire and tornado/self-insurance fund from July 1 of this year to July 1, 2030, and rename the fund the Commonwealth’s Property and Casualty Insurance Fund. The bill was moved, seconded, and passed unanimously. House Bill 421, presented by Rep. Amy Neighbors, would require full coverage of FDA-approved bowel preps without out-of-pocket cost or prior authorization issues and update colorectal cancer screening coverage rules for high-risk patients by incorporating multisociety task force guidelines. Members discussed the bill’s personal importance and its minimal fiscal impact; it passed unanimously with a committee substitute. House Bill 236, presented by Rep. Adam Moore and Commissioner Sharon Clark, would cap annual out-of-pocket costs for epinephrine at $100. Members spoke in support, including personal remarks about the importance of access to epinephrine, and the bill passed unanimously with a favorable recommendation. Finally, House Bill 210, presented by Rep. Michael “Sarge” Pollock and Dr. Steve Robertson of the Kentucky Dental Association, addressed dental limited benefit plans and direct payment to dentists. Members asked whether the bill also affected vision/hearing arrangements or third-party administrators; the witness said it was intended for non-ERISA dental plans in Kentucky and suggested follow-up with the commissioner for further clarification. The committee adopted the committee substitute and then passed HB 210 favorably, with 15 yes votes and no votes against. The meeting then adjourned, with a reminder about the Banking and Insurance dinner later that evening.

Transcript Highlights:

• He said they do need to keep it up with inflation because it is eroding the budget.
• </c> a178 we have not kept up with inflation a178 we have not kept up with inflation it<00:27:36.840>
• <00:29:31.440><c> uh</c><00:29:31.679><c> yes</c> inflation uh yes inflation uh yes represent<00:29:35.240
• This will not go on consent either because it has a financial impact.
• This will not go on consent either because it has a financial impact.

Summary: The committee first met in a revenue estimate work session to approve an LSR codifying the committee’s revenue estimates. Members reviewed the process for turning the LSR into a House Resolution and discussed how the adopted estimates would be used to amend House Bill 1. After a brief question-and-answer about current revenue splits and the governor’s proposed video lottery and tax-split changes, the committee voted 19-0 to approve the revenue estimates. The committee then moved into executive session on HB 669, which would require all revenue from the statewide education property tax to be deposited into the education trust fund and set an equalized statewide tax rate. Supporters argued the bill would better direct education funding, while opponents said it was unnecessary or duplicative. The committee voted 12-7 to retain the bill (ITL), and a minority report was noted. Next, the committee considered HB 290, which would raise cigarette and electronic cigarette taxes and create a study committee on tobacco and nicotine taxes. Testimony focused on revenue needs, inflation, public health, and concerns that a higher tax could reduce sales or drive purchases across state lines. The committee voted 11-8 to ITL the bill, with a minority report. The committee also ITL’d HB 402, dealing with whether Education Freedom Account payments are taxable income, after debate over unintended consequences and whether the bill’s language was misleading; that vote was 11-8 with a minority report. Finally, the committee opened HB 483, and Representative Tierney moved ITL, arguing the bill’s requirement that the scholarship organization be incorporated in New Hampshire would likely violate the Commerce Clause; the transcript cuts off before the vote on that bill.

Transcript Highlights:

• in measuring and assessing impacts of rent regulation.
• That lays out the devastating financial impacts of this proposal on cities and towns.
• First of all, as you've heard, in most other places rent control is of the form inflation plus X—inflation
• plus 5%, inflation plus 7%; that's not true here in Massachusetts.
• The larger of this proposal will be the larger of 5% or the rate of inflation.

Bills: H5008

Committee: Joint Special Joint Committee on Initiative Petitions

Keywords: rent control, housing stability, tenants rights, affordability crisis, consumer protection

Transcript Highlights:

• our public safety, impacting our businesses, and impacting our citizens.
• our public safety, impacting our businesses, and impacting our citizens.
• our public safety, impacting our businesses, and impacting our citizens.
• our public safety, impacting our businesses, and impacting our citizens.
• our public safety, impacting our businesses, and impacting our citizens.

Transcript Highlights:

• </c><01:34:29.800><c> with</c> their members that were impacted with their members that were impacted
• Even a modest rate of inflation significantly impacts purchasing power over time.
• Even a modest rate of inflation significantly impacts purchasing power over time.
• Witness: Yes, and then the impact of that, I guess I'll ask the retirement about the impact if we were
• Witness: Yes, and then the impact of that, I guess I'll ask the retirement about the impact if we were

Summary: The committee first took up House Bill 622, but after the sponsor said further research raised concerns, he asked that the bill be tabled. The committee then moved in executive session and voted unanimously to find the bill inexpedient to legislate, sending it to consent. The committee also retained House Bill 349, the ophthalmologic laser bill, after members said more time was needed for the professions involved to work out training standards and provide additional information; that motion also passed unanimously. The committee then discussed House Bill 244, a municipal building/fire code recodification measure. Members said the bill needed more review and careful scrutiny because of its length and possible unintended effects, and they voted unanimously to retain it as well. House Bill 534 was then heard; the sponsor said the bill did not do what was intended because of a misunderstanding about current processing, and the committee voted inexpedient to legislate and placed it on consent. The committee next considered House Bill 233, with an amendment to remove a requirement affecting the New Hampshire Vaccine Association. Supporters argued the bill would reduce an unnecessary burden and improve transparency, while opponents said the committee should not single out one private 501(c)(3) organization. The amendment was adopted 8-5, and the bill as amended then passed 7-6; a minority report was requested. Finally, the committee opened House Bill 536, a proposed 1.5% cost-of-living adjustment for certain state retirees. The sponsor and supporters argued retirees had not received adequate COLAs and that the bill would help offset inflation, while the retirement system testified that the proposal would add significant costs, including an estimated $1.5 million for the state, $6.6 million for political subdivisions, and about $100.7 million in present-value unfunded liability, with the impact reflected in future employer contribution rates.

Transcript Highlights:

• </c> spend any money it has no fiscal impact spend any money it has no fiscal impact and<00:48:00.520
• I'm concerned about its impact on the existing lines.
• I'm concerned about its impact on the existing lines.
• I'm concerned about its impact on the existing lines.
• </c><00:51:33.280><c> I</c> bill does not have a fiscal impact I bill does not have a fiscal impact I

Transcript Highlights:

• The actual potential impact on them is relatively small.
• Market values have risen much more quickly than inflation.
• That would significantly impact our ability to handle that.
• The negative impact and recurring negative impact of this particular proposal is $13.3 billion.
• What impacts my neighbor also impacts me, and that is why we all contribute to the local government Representative

Transcript Highlights:

• </c> annually for inflation. annually for inflation.
• Act that aren't adjusted by inflation.
• ><c> adjustment</c><00:37:50.800><c> to</c> 73 includes an inflation adjustment to 73 includes an inflation
• </c><00:41:21.680><c> of</c> estimate the overall fiscal impact of estimate the overall fiscal impact
• </c><00:43:00.880><c> measure</c> be one, there is an inflation measure be one, there is an inflation

Transcript Highlights:

• So, let's talk about the impact of these advisements.
• So we're seeing inflation going in the wrong direction.
• So inflation is heading in the wrong direction.
• Higher tariffs and higher inflation remain significant risks.
• And so, you know, we're still dealing with the increased inflation.

Transcript Highlights:

• conditions and their impact on income withholding, capital gains tax and its impact on non-withholding
• conditions and their impact on income withholding, capital gains tax and its impact on non-withholding
• Now let's discuss OB3's impact on our tax revenue.
• It would be a significant revenue impact.
• I think people seem to be underestimating the impact that inflation has on collections and will continue

Committee: Joint Joint Committee on Ways and Means

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.

Transcript Highlights:

• And because the fiscal impact shows minimal impact, the bill is being considered this morning.
• The Department of Financial Institutions estimates no fiscal impacts.
• It changes the inflation adjustment from annually to biannually.
• And it specifies that DFI's inflation adjustment applies to the maximum...
• Impacts on local governments were listed as indeterminate, and there are no amendments.

Bills: SB6248 , SB5976 , SB6079 , SB6250 , SB6257 , SB6289 , SB6230 , SB6312 , SB6149 , SGA9060 , SGA9169 , SGA9265 , SGA9266

Committee: Senate Business, Trade & Economic Development

Keywords: travel insurance, travel protection plan, travel assistance services, cancellation fee waiver, travel retailer, travel administrator, limited lines producer, insurance producer license, blanket travel insurance, trip cancellation, trip interruption, travel medical coverage, emergency evacuation, repatriation, inland marine, premium tax, consumer protection, unfair trade practice, insurance commissioner, Washington RCW

Transcript Highlights:

• We can now begin to assess its full and significant impact.
• So turning to the third page, when do these impacts occur?
• I'm sorry that we don't know the impact. this fall or next fall.
• Primarily doctors and dentists, but it will impact nurses as well.
• The financial impact of this bill is devastating.

Transcript Highlights:

• The immediate impact of COVID was sort of a.
• But inflation over the same time.
• So, do we have an inflation-adjusted...
• Is total funding adjusted for inflation? So this, the bars are not adjusted for inflation.
• State funding, when you adjust for inflation, has declined.

Committee: House Public Education

Transcript Highlights:

• However, we also know the impact.
• However, we also know the impact.
• Moving to the fiscal impacts, there is a fiscal note in EBB showing an estimated fiscal impact of this
• And the amendment that Kelly mentioned would not impact the fiscal impact of this bill.
• That threshold has increased for inflation since calendar year 2019, and the inflated per-pupil limit

Bills: HB2675 , HB2681 , HB2714 , HB2688 , HB2481 , HB2116 , HB1408

Committee: House Appropriations

Keywords: accounts, finance, business regulation, transparency, audits, cannabis, license fees, regulatory framework, revenue generation, legalization, HB 2714, caseload forecasting, food assistance, SNAP, Supplemental Nutrition Assistance Program, state food assistance, budget forecasting, caseload forecast council, caseload forecast supervisor, Washington State

Transcript Highlights:

• What happened is or 1% inflation rate.
• </c> impact Medicare at all. impact Medicare at all. &gt;&gt; No<00:05:01.759><c> question.
• It doesn't impact any of that.
• It doesn't impact any of that.
• It doesn't impact any of that.

Bills: HF3797 , HF3780 , HF4068 , HF3935

Committee: House Human Services Finance and Policy