Keywords: 988, house, all

Keywords: 987, senate, all

Summary: The Assembly met on May 7, 2026, after an initial delay caused by the absence of a quorum, then proceeded with prayer, a moment of silence for victims of a hate-motivated attack at the Islamic Center in San Diego, and the Pledge of Allegiance. The Speaker pro tempore then moved through the daily file, repeatedly urging members to be on time and at their desks as the House of Origin deadline approached. Procedural actions included dispensing with the journal, deferring some items, and moving AB 1667 to the inactive file. The bulk of the session was devoted to floor consideration of many bills, most of which passed with little or no opposition. Measures approved included bills on artificial intelligence provenance information (AB 2713), community college trustee compensation (AB 2528), transit camera enforcement and privacy (AB 1837), excess proceeds claims in taxation (AB 2705), HOA technical cleanup (AB 1892), hepatitis C treatment access (AB 1843), child care planning in local general plans (AB 1914), greenhouse energy code flexibility (AB 2200), rent-now-pay-later consumer protections (AB 2350), housing cleanup and density bonus measures (including AB 2390, AB 2480, AB 1567, AB 1751, and others), spay/neuter access (AB 2010), workforce housing financing tools (AB 2110), supportive housing and homelessness-related changes (AB 2146), mental health and health plan notification measures (AB 1598, AB 2613), student aid and education bills (AB 1534, AB 1636, AB 1669, AB 1728, AB 1784, AB 1871), public safety and criminal justice bills (AB 1546, AB 1572, AB 1872, AB 1877, AB 1932), and several health and social services measures (AB 1602, AB 1628, AB 1680, AB 1825, AB 1845, AB 1906, AB 1907, AB 1925). Most bills were described as support measures, often with bipartisan backing and no opposition, and passed by wide margins. A few bills drew more discussion, especially AB 1751, a housing/townhome bill that sparked extended debate over wages, prevailing wage, stakeholder engagement, and whether the measure could depress pay for construction trades; despite concerns and an opposition speech, it ultimately passed 44-0. AB 1793, which would allow symmetrical rounding of cash transactions to the nearest nickel in light of the penny’s phaseout, also drew light debate and passed 47-1. AB 1932, an urgency measure expanding community-based crisis response, passed with one no vote on both the urgency and the bill. Several urgency or 54-vote bills, including AB 1534 and AB 1932, required later roll calls or calls to be lifted, but all measures described in the transcript were ultimately approved.

Keywords: 987, senate, all

Keywords: 987, senate, all

Keywords: 987, senate, all

Keywords: 987, senate, all

Summary: The subcommittee heard May Revision proposals for higher education, beginning with the Bureau for Private Postsecondary Education. Finance proposed a one-time $10 million General Fund backfill to repay a special fund loan used to cover litigation costs, plus provisional language to allow budget flexibility for a remaining legal expense and to repay the loan without interest. The LAO opposed shifting the litigation costs to the General Fund and raised legal concerns about waiving interest on the loan, noting that special fund loans have historically been repaid with interest. Members asked about the litigation amount and the estimated interest savings, which Finance said would be about $245,000. The committee then discussed University of California funding, including the Governor’s proposed compact funding and a $1.5 million one-time increase for the First Star foster youth program at UC campuses. UC said the program has strong outcomes at UCLA, including a 100% college-going rate and high college completion rates, and that the new funding would expand the program to additional campuses and eventually be self-supporting through fundraising. The LAO recommended rejecting the proposal, arguing that UC already has overlapping outreach programs, including the Early Academic Outreach Program, and that the new initiative would duplicate existing services. Several senators questioned whether the state should expand a new program instead of strengthening existing ones, while UC and Finance emphasized the program’s focus on foster youth and its high success rates. For the California Community Colleges, Finance outlined the May Revision’s increase to the Student-Centered Funding Formula COLA from 2.41% to 4.31%, along with enrollment growth funding, categorical COLAs, deferred maintenance, and other ongoing and one-time investments. The Chancellor’s Office supported the flexible “super COLA” approach and asked for more enrollment growth funding, arguing that many districts are already above current targets and that unfunded growth restricts access. The LAO recommended funding at least the statutory COLA, redirecting some ongoing funds to enrollment growth or one-time priorities, and rejecting the $9.7 million Adult Learner Demonstration Project because districts already have incentives to do similar work. Senators pressed Finance and the Chancellor’s Office on the use of COLA funds to cover the new paid pregnancy disability leave requirement, the impact on hold-harmless and basic-aid districts, and whether the state should fund actual enrollment growth rather than a flat COLA. The committee also reviewed California Student Aid Commission proposals, including adjustments to Cal Grant and Middle Class Scholarship funding, continued Golden State Teacher Grant funding, and implementation of the federal Workforce Pell program. Finance said the Middle Class Scholarship changes reflected updated caseload estimates and that the higher 35% unmet-need level had been one-time funding, while CSAC urged continued support and noted the importance of financial aid for student success. The LAO recommended rejecting additional Golden State Teacher Grant funding as not well-targeted and urged caution on Workforce Pell trailer bill language, citing uncertainty about federal rules, ongoing administrative workload, and the need for clearer implementation planning. Members also raised concerns about declining CADAA applications and the need to better promote state aid for undocumented and mixed-status students. No votes were taken during the transcripted portion, and the committee moved through the agenda items with questions and testimony.

Summary: The committee first heard May Revision child care and human services items. The Department of Child Support Services described two technical adjustments, which the analyst supported. The Department of Social Services then walked through child care proposals, including a reduction in federal and Proposition 64 funding absorbed through a shift from General Child Care to the Alternative Payment program, a 2.01% child care COLA, disaster-related infrastructure grants, a new administrative support cost structure for Alternative Payment agencies, the removal of prospective pay funding after a federal rule change, a reappropriation for existing infrastructure grants, and estimates of unspent child care funds. The Legislative Analyst’s Office recommended asking for more justification for shifting reductions to CAP, supported the COLA reduction but wanted consistency across programs, recommended removing prospective pay funding, opposed the administrative cost shift, and suggested further review of disaster grant alignment. Members pressed the administration on why more slots would be cut for the same savings, why the COLA was reduced, and whether the administrative percentage would grow over time. The administration said the changes were intended to avoid disrupting currently enrolled families, reflect point-in-time relinquishments and unspent funds, and stabilize contractor operations. Public commenters, including providers, advocates, and county representatives, urged full COLA funding, rejection of child care slot reductions, preservation of prospective pay, and continued investment in child care infrastructure and access. The subcommittee then recessed before moving to health items. In Part B, the Department of State Hospitals presented its May Revision proposals, including a central utility plant replacement project at Metropolitan State Hospital, funding for a continuum electronic health record system, reduced county bed billing authority to reflect phase-in of additional LPS beds, limited contract exemption authority for online clinical subscription services, reversion of prior-year unspent operating funds, and a workforce development proposal to use Behavioral Health Services Act funds instead of General Fund for training programs. The department said the EHR would modernize records and improve continuity of care, and that the contract exemption would prevent delays in essential clinical information services. No votes were taken in the excerpt provided.

Summary: The subcommittee heard May Revision proposals from the Department of Food and Agriculture, the Government Operations Agency, the Department of Technology, and the Franchise Tax Board, with public comment to come later and all items held open. CDFA presented funding for the animal care program implementing Proposition 12, including a one-time $5.2 million General Fund transfer to the Ag Fund and $2.8 million ongoing, and the LAO recommended approval while noting the Legislature should revisit the funding once litigation and federal preemption questions are resolved. CDFA also proposed ending state oversight of industrial hemp and moving to the federal USDA program by January 1, 2028, with an $8.3 million General Fund transfer to cover startup and transition costs; the LAO supported the transition. Additional CDFA items included $204,000 ongoing and one position to preserve agricultural statistics reporting after USDA reorganization, and trailer bill changes to clarify the department’s 5% indirect cost cap; both drew no objections from Finance or LAO. The Government Operations Agency and Cradle to Career items focused on implementing the new federal Workforce Pell program. Finance described trailer bill language establishing state eligibility processes, with the California Student Aid Commission as the authorizing entity in consultation with the Workforce Development Board, and proposed $1.3 million one-time General Fund for Cradle to Career to build data linkages. The LAO urged caution because federal rules were just finalized and said more information was needed on workload, costs, and whether existing data systems could support the work. Senators raised policy concerns about limiting the program to public institutions and about aligning the proposal with broader workforce and labor goals. The committee also briefly discussed SB 53/Cal Compute, with GovOps saying no appropriation had been provided for its consortium work, and Finance saying the administration was not proposing funding at this time. The Department of Technology presented a $30 million operational backstop for the Middle Mile Broadband Initiative, intended to cover any shortfall if expected revenues from the Golden State Net third-party administrator do not materialize in time. The LAO initially recommended rejection over broad spending authority, then suggested amendments with stronger reporting and legislative review; committee members questioned the revenue assumptions, oversight, and whether the request could recur. CDT also sought $1 million for Poppy, the state’s GenAI digital assistant, to expand secure statewide use; the LAO had no concerns, and members asked about data security, model bias, training restrictions, and possible local-government use. Finally, FTB proposed realigning CalFile resources after the federal Direct File program was discontinued, retaining three ongoing positions and returning the rest of the funding and positions to the General Fund; the LAO said the reduced scope was reasonable, and members discussed keeping the free filing system user-friendly and ready for future federal changes. The committee also heard the administration’s digital pre-written software tax proposal, which would extend sales tax to electronically delivered software and SaaS beginning January 1, 2027, generating an estimated $450 million General Fund in 2026-27 and $900 million ongoing, plus local revenue. The LAO supported modernizing the tax base but recommended broadening the proposal to include more digital products while considering a business-use exemption or reduced rate, and flagged a newly added video game exemption as a revenue downside. Senators generally supported the goal of raising revenue and aligning California with other states, but questioned the local revenue distribution and equity effects, and one senator said they would not support expanding the tax to books, music streaming, and similar consumer products. All items were left open without votes.

Summary: The subcommittee heard an overview of the May Revision from the Department of Finance and the Legislative Analyst’s Office, focused on resources, environmental protection, energy, and related budget issues. Finance said the May Revision keeps the budget balanced in 2026-27 and 2027-28, narrows the structural deficit, and proposes major investments in natural resources, including Proposition 4 bond funding for the Golden Gate Fields acquisition, wildlife refuge and wetland projects, Fort Ord Dunes campground operations, Healthy Rivers and Landscapes, wildfire-human coexistence, and beverage container recycling. The LAO praised stronger-than-expected revenues but argued the state still has a structural deficit and is relying too heavily on reserves, recommending more reserve deposits and fewer new discretionary expenditures. Members questioned several proposals, especially the Golden Gate Fields purchase and the Healthy Rivers and Landscapes Program. Agency officials said the Golden Gate Fields site is a time-limited opportunity, would be remediated by the current owner, transferred to East Bay Regional Park District after closing, and restricted to park/open-space uses rather than commercial development. On Healthy Rivers and Landscapes, Finance and the Natural Resources Agency said the $25 million request would help launch year one of the program, support scientific monitoring, and maintain commitments to environmental flows and habitat restoration; the LAO said the request was premature because the Bay-Delta plan has not yet been formally adopted and the state’s total funding commitment remains unclear. Officials also discussed water storage, subsidence, and the need for ongoing investments in aquifer recharge, aqueduct repairs, and recycling. The committee also reviewed a proposed $1 million shift for the Coexisting with Wildlife Initiative. Fish and Wildlife and the Cattlemen’s Association said the money would support limited-term staffing, deterrence tools, and livestock-loss compensation, while acknowledging the amount is modest compared with the need. Members emphasized the growing human-wildlife conflict problem and the importance of nonlethal deterrence and public education. The discussion then turned to greenhouse gas reduction fund revenues and transit; members warned that lower auction revenues and possible CARB rule changes could leave little or nothing for Tier 3 programs such as transit, clean water, and air-quality programs. Finance and the LAO said the Legislature should plan for multiple revenue scenarios and consider whether the existing cap-and-invest spending framework still matches current revenue expectations and priorities.

Keywords: 988, house, all

Keywords: 987, senate, all

Keywords: 987, senate, all

Summary: The committee opened with the State Controller’s Office May Revision requests, including funding for Fiscal book-of-record stabilization, a Broadcom IDMS licensing adjustment, the California State Payroll System, ACFR reporting automation, and $3 million for unclaimed property outreach. Testimony emphasized progress on Fiscal becoming the state’s accounting book of record in July, faster ACFR publication, and the move to electronic unclaimed property claims. Members asked about the size of the unclaimed property fund and how quickly money is transferred to the General Fund; the Controller’s office said about $15 billion is held, with most excess transferred regularly, and the LAO noted the fund is the General Fund’s fourth-largest revenue source. No concerns were raised by Finance or the LAO, and the item was closed after no public comment. The committee then heard the administration’s proposal to tax prewritten digital software and software-as-a-service, with Finance saying it would modernize sales tax treatment and raise an estimated $450 million General Fund and $560 million local revenue in 2026-27. The LAO supported modernizing the tax but suggested broader digital goods coverage and a business-use exemption; industry and taxpayer groups opposed the proposal, warning of higher costs for consumers and businesses. Members also heard CDTFA’s administrative request tied to the proposal, plus a separate CDTFA budget reduction reflecting lower operational needs; that reduction was presented as a savings item and drew positive reactions. Next, the committee considered federal conformity for “Trump accounts,” which would align California tax treatment with federal rules for tax-deferred children’s accounts and avoid tracking burdens for families. The LAO recommended approval, and the item drew no opposition. The committee also heard a proposal to cut the first-year $800 annual business tax to $400 for LLCs, LPs, and LLPs; Finance argued it would lower startup costs and encourage new business formation, while the LAO said the benefit was not well targeted and could subsidize entities that would form anyway. Members discussed the policy tradeoff, and public commenters split between support for small business relief and concern about revenue loss. The final major revenue item was a permanent business tax credit limitation, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability, while excluding the low-income housing tax credit and personal income tax credits. Finance said it would raise significant revenue from large profitable corporations, and the LAO said it was a reasonable option but noted it would mainly affect the R&D credit and could have future implications for programs like California Competes. Public testimony was sharply divided, with business groups opposing the cap and anti-poverty advocates supporting it as a way to recapture revenue. The committee also heard FTB’s CalFile realignment request, which would return most of the direct-file-related resources to the General Fund while retaining a smaller staff to improve CalFile, and the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which members and advocates supported despite relatively modest annual donations. The hearing continued with GoBiz proposals on civic media funding, CA RISE reappropriation, and a semiconductor facility reversion, with the LAO supporting the latter two and members raising questions about the civic media program’s scope, outreach, and inclusion of broadcast and ethnic media.