Summary: The Senate Budget Subcommittee on Education heard updates on higher education issues, beginning with California State University’s turnaround plans for seven campuses with enrollment declines. CSU said overall enrollment is growing systemwide, but some campuses, especially in Northern California, face structural declines tied to demographics and community college pipelines. The plans focus on reengaging stopped-out and adult learners, expanding partnerships and guaranteed admissions, improving retention and student support, and reducing costs through program suspensions, hiring freezes, shared services, and procurement consolidation. The Legislative Analyst’s Office said the strategies were reasonable but urged regular legislative updates, and the Department of Finance had no additional comments. Committee members emphasized the need for implementation oversight, written updates, and attention to student outreach, financial aid, and privacy concerns around AI tools used in recruitment. The committee then reviewed the Bureau for Private Postsecondary Education’s request for a $10 million General Fund appropriation to repay litigation-related borrowing. Department of Consumer Affairs and bureau staff said the bureau has a long-standing structural deficit, has already cut positions and shifted some costs, and that the General Fund backfill would reduce future fee increases on institutions. The LAO opposed the request, arguing the bureau can cover near-term costs with its existing loan and that litigation costs should remain the responsibility of the regulated entities through fees. Finance supported the one-time backfill as a unique situation that would lower fee increases and avoid passing litigation costs on to schools and students. Members asked about preventing a repeat of the problem, and bureau staff said they are pursuing fee increases through the sunset review and have strengthened internal policies and disability accommodation practices. The subcommittee also heard a broad update on Cal Grant funding and student aid. The California Student Aid Commission, UC, CSU, and the community colleges described Cal Grant as essential to affordability, but the LAO noted spending has grown faster than historical averages and said the state likely lacks capacity for major expansion in the near term. The segments highlighted the importance of state aid in covering tuition and living costs, and raised concerns about federal changes to student loans and Pell Grants, especially the elimination of Grad PLUS for some graduate students and limits on part-time borrowing. Committee members pressed for data on students who are eligible but not served by current Cal Grant rules, including adult learners and students affected by age and merit restrictions, and asked for analysis of phased-in implementation of the Cal Grant Equity Framework. Finance said full implementation would cost hundreds of millions of dollars and that affordability remains part of the state’s multi-year compact with the segments. Finally, the committee began discussion of the Middle Class Scholarship Program. CSAC and the UC and CSU said the program is a key part of affordability and debt reduction, especially after the 2022 reforms that expanded awards to total cost of attendance and improved administration. They warned that cutting funding by more than half would reduce award coverage from 35% to 17.5% of cost of attendance and could affect enrollment and persistence, particularly for middle-income students who do not qualify for other need-based aid. The segments also noted that recent administrative changes have reduced award revisions and campus workload, but that data exchange and award volatility remain challenges.

Keywords: 987, senate, all

Keywords: 987, senate, all

Keywords: 987, senate, all

Keywords: 987, senate, all

Keywords: 987, senate, all

Summary: The hearing began with testimony from Let California Kids Hear and supporters urging action on pediatric hearing aid coverage. Advocates said California has repeatedly failed to enact a workable solution over the past eight years and argued that children need early access to sound to support development. The proposal discussed would limit the coverage mandate to the large-group market, which advocates said would cover roughly 70% to 80% of affected children and avoid the exchange-related cost issue that contributed to prior vetoes. Supporters, including parents, audiologists, and children’s health groups, backed the proposal, and the chair expressed sympathy and support while noting hope for a federal solution for exchange plans. The Department of Finance then gave opening remarks about the state’s structural deficit and the need to balance new investments against projected out-year shortfalls. HCAI followed with a broad overview of its programs, including CalRx insulin and naloxone initiatives, reproductive health grants, the Office of Health Care Affordability, hospital seismic compliance, workforce programs, and the diaper access initiative. Members asked about geographic targeting of workforce funds, the behavioral health workforce pipeline, and the status of the 21st Century Nursing Initiative, which HCAI said had reverted funds. The committee also discussed a proposed transfer of the Data Exchange Framework and Office of the Patient Advocate to HCAI, new reporting on long-term care staffing and health coverage waiting periods, and a Behavioral Health Services Act workforce proposal that would use BHSA funds to support training, stipends, and technical assistance while offsetting $100 million in General Fund spending; members and LAO questioned the offset and asked for more detail, and the item was held open. HCAI also presented the Rural Health Transformation Program, explaining that California received $233.6 million in federal funds for the first year and had to revise its proposal so that $35 million in provider payments would be tied to specific transformative activities rather than general financial relief. The program will fund rural care model redesign, workforce development, and technology/infrastructure improvements, with grants to be rolled out on a tight timeline and subject to CMS approval. Members asked about the size of California’s award, the use of funds for maternity care, labor and delivery access, dialysis, tribal set-asides, and the role of a technical assistance contractor. The department said the program will use supply-and-demand workforce modeling to target funding and that all funds must be obligated by October 30. Finally, the Department of Managed Health Care outlined its budget and two major bill-related proposals: SB 41 on PBM reform and SB 306 on prior authorization transparency. DMHC said SB 41 would require PBM licensure, ban spread pricing, require rebate pass-through, and regulate pharmacy network practices, while SB 306 would require reporting on prior authorization and create a list of services exempt from prior authorization. DMHC requested additional positions and funding to implement both measures.

Summary: The subcommittee heard testimony on the governor’s proposed sustainable aviation fuel (SAF) tax credit, which would provide a $1 to $2 per gallon credit against the diesel excise tax for SAF sold for use in California from 2026 to 2036. The Department of Finance and CARB argued the credit would help decarbonize aviation, support refinery transitions, and keep fuel production and jobs in California. The Legislative Analyst’s Office recommended rejecting the proposal, saying it is a relatively expensive way to reduce greenhouse gases, could have uncertain or limited climate benefits, and would reduce diesel excise tax revenue that supports highways, local streets and roads, and other transportation programs. A major point of debate was whether the credit would simply shift limited feedstocks from renewable diesel to SAF rather than create new low-carbon fuel supply. Professor Aaron Smith and the LAO said that because feedstocks such as used cooking oil, tallow, and vegetable oils are limited and already used in other fuel markets, the policy could increase SAF at the expense of renewable diesel, with possible increases in fuel prices and little net emissions benefit. Administration and CARB staff disputed that outcome, saying additional waste-based feedstocks are available and that the policy would not meaningfully raise gasoline or diesel prices. Senators focused on feedstock availability, impacts on road funding, fairness to consumers, and whether the proposal was really aimed at preserving specific refineries such as Phillips 66. Public comment was sharply divided. Labor representatives, refinery workers, airlines, Boeing, airports, and some local residents supported the proposal, emphasizing jobs, refinery investment, and aviation’s need for a liquid-fuel decarbonization pathway. Environmental and transportation groups, including the Center for Biological Diversity, World Resources Institute, Earthjustice, California Environmental Voters, counties, cities, and trucking and asphalt associations, opposed it, citing weak net climate benefits, possible fuel-price impacts, and losses to transportation funding. No vote was taken; the chair announced all items would be held open for a future hearing.

Summary: The committee heard an overview from the Office of the Inspector General and California Correctional Health Care Services on prison oversight, medical care, reentry, and related budget requests. The OIG requested $275,000 General Fund for two additional intake analysts, citing a sharp rise in complaints from 3,200 in 2022 to 7,860 in 2025 and explaining that the unit reviews and routes complaints, including PREA and staff misconduct allegations, within 30 days. Its medical inspection unit reported on cycle seven prison health inspections, noting generally adequate case-review performance but weak policy-compliance results, especially in medication management and health care environment indicators, and said it was beginning cycle eight with revised inspection methods. Members questioned the OIG about what kinds of complaints were driving the increase, whether the office tracks validity or systemic patterns, and how it distinguishes duplicative complaints from those already handled by CDCR. OIG said the largest categories were prison conditions and staff misconduct, that it does not determine whether complaints are “valid” in a statistical sense, and that it forwards issues to CDCR or other entities as appropriate. Senators also asked about the medical inspection findings, the remaining prisons not yet delegated back from federal receivership, and whether more detail should be provided in future reports. LAO and Department of Finance staff said they had no concerns with the OIG proposal. The committee then reviewed the correctional health care budget, including staffing, pharmacy, contract medical costs, and the state’s progress toward ending the Plata medical receivership. CDCR said it is trying to reduce vacancies through hiring events, social media outreach, new classifications, and more on-site care, while also using CalAIM to improve reentry services; CalAIM officials reported 89% Medi-Cal activation at release, 87% managed care assignment, 88% reentry care plans, and 59% warm handoffs, with about $14.7 million in reimbursements to date. Members pressed staff on the cost of receivership, the pace of delegation, whether more care could be consolidated into fewer facilities, and whether the state should seek more federal reimbursement or alternative staffing models. Finally, the committee discussed the new mental health receivership and a telemental health staffing proposal. The receiver’s office requested $33.9 million from the Mental Health Special Deposit Fund, including $8.2 million for the receiver’s office and $25.3 million to make court-ordered bonus payments permanent; CDCR also sought about $8.9 million for telemental health staffing, growing to $13 million ongoing. LAO recommended approving the action plan and portions of the telehealth request, but urged the Legislature to monitor progress, consider out-of-state recruitment and expanded telehealth, and avoid across-the-board salary increases; Finance cautioned that out-of-state licensure would require major statutory changes and that staffing-ratio changes would need receiver approval. Senators raised concerns about the high cost of receiverships, vacancy-driven fines, the need for more detailed benchmarks, and whether the state should consolidate mental health populations and better target recruitment to fill hard-to-staff positions.

Summary: The subcommittee heard a series of Department of Food and Agriculture budget proposals, beginning with ongoing funding and trailer bill language for the Farm to School program and related climate-smart agriculture work. CDFA described the program’s goals of linking California producers with schools, expanding access to local and nutritious food, and supporting underserved farmers through technical assistance and outreach. The LAO recommended rejecting the proposal as presented because of the state’s budget condition and suggested that some activities might instead be supported through Proposition 98. Members questioned whether the program is reaching the schools and communities with the greatest need, how grants are scored, and whether the proposal’s goals are measurable enough to justify ongoing funding. The item was held open. The committee also discussed CDFA’s climate bond expenditure plan, which would allocate remaining Proposition 4 funds to existing programs such as SWEEP, Healthy Soils, urban agriculture, fairground emergency response upgrades, and invasive species work, as well as new or developing programs including year-round certified farmers markets, mobile farmers markets, regional farm equipment sharing, and tribal food sovereignty. CDFA said the funds would be released in stages based on program readiness, with audits and performance metrics tied to each program. The LAO found the plan reasonable and consistent with bond requirements. Members asked about audit responsibility, performance tracking, and whether the bond programs should be front-loaded or spread over a longer period. A third CDFA item addressed the elimination of vacant positions under prior budget reductions. CDFA and the Department of Finance explained that the positions were selected because they had been vacant for long periods or were hard to fill, and that departments identified the positions based on their own operational knowledge. The LAO supported retaining the special-fund positions and suggested the General Fund positions be weighed on their merits. Members raised concerns about the impact on core functions such as audits, investigations, milk marketing, and grape pricing reports, and asked for follow-up on how the department determined which positions could be removed. The committee then heard a CDFA IT proposal to add funding and four positions for information technology operations; the LAO had no concerns, and members discussed cybersecurity, legacy systems, and future risks such as AI and quantum threats. The committee took public comment and then voted to approve items 9 through 13, which included CDFA dog importation certificates, livestock carcass disposal, Gambling Control Commission IT support and tribal grant funding, and an ABC district office relocation. The hearing then moved to the Department of Cannabis Control, which presented a request to strengthen enforcement against the illicit cannabis market by adding a North State field office in Redding and three non-sworn support positions. DCC said the illicit market remains far larger than the legal market, with a large backlog of cases and significant public safety and environmental concerns. Finance supported the targeted expansion, the LAO had no comment, and members asked about regional coverage, officer safety, and whether a larger, more transformational enforcement effort might be warranted in the future.

Summary: The committee first heard updates from the California State University on its turnaround plans for seven campuses with enrollment declines. CSU said overall enrollment has grown for three straight years, but some campuses—especially in Northern California—continue to face structural declines tied to demographics and community college pipelines. The system described campus-specific strategies such as outreach to stopped-out and adult learners, guaranteed admissions, partnerships with community colleges and high schools, expanded high-demand programs, and cost reductions including hiring freezes, program suspensions, and shared administrative services. The LAO said the plans were reasonable but urged regular reporting so the Legislature can track results. Committee members pressed CSU for ongoing implementation updates, stronger recruiting efforts, and safeguards around AI use; CSU said it would continue regular check-ins and share best practices across campuses. The second item focused on the Bureau for Private Postsecondary Education and its request for a $10 million General Fund appropriation to repay a special fund loan used for litigation costs. DCA and BPPE said the bureau has long had a structural deficit and has already cut positions, streamlined operations, and shifted some costs to the Student Tuition Recovery Fund, but still needs fee increases through the sunset review process. The LAO opposed the General Fund backfill, arguing the bureau can cover near-term costs with its loan, that litigation costs should generally be borne by regulated entities through fees, and that using General Fund money could set a precedent. Finance supported the one-time backfill as a way to avoid larger fee increases on institutions and to isolate the litigation expense from the bureau’s ongoing structural shortfall. Members asked how the bureau would avoid repeating the problem; BPPE said it has updated policies and practices, including disability accommodation procedures and non-discrimination training. The committee then reviewed Cal Grant funding and program updates from CSAC, UC, CSU, and the community colleges. CSAC said the Governor’s budget would increase Cal Grant funding to about $3.2 billion in 2026-27, driven by enrollment growth and higher tuition at UC and CSU, and highlighted efforts to improve payment processing and financial aid data. UC and CSU emphasized that Cal Grants are central to affordability and debt reduction, while also warning that federal changes under H.R. 1 could reduce access to loans and harm graduate and part-time students. Community colleges reported rising aid applications and awards, but said students still face major affordability barriers, especially mixed-status and undocumented students, and asked for more support for aid administration and completion grants. The chair repeatedly asked for data on eligible students who are not receiving Cal Grants and for a phased-in path to implement the Cal Grant Equity Framework; Finance said full implementation would cost hundreds of millions and the state is not currently in a position to fund it. Finally, the committee began discussion of the Middle Class Scholarship Program. CSAC said the program helps low- and middle-income students cover total cost of attendance, not just tuition, and warned that cutting funding by more than half would reduce award coverage from 35% to 17.5% of cost of attendance. CSU and UC said the program is important for reducing student debt and supporting affordability, and CSU noted recent administrative changes have reduced workload and award adjustments. The hearing continued into the next agenda item after these presentations.

Summary: The Senate met with a quorum present and began with prayer and the Pledge of Allegiance. The floor then moved through a series of recognitions, including the Natomas Nighthawks boys basketball team, 2026 James Irvine Foundation Leadership Awardees, and visiting California biotech leaders. Senators highlighted the honorees’ work on youth development, education, mental health, homelessness, community college success, and biotechnology. The body also welcomed Rosie Perez, the 43rd Treasurer of the United States and chair of America 250, to the chamber. On the legislative side, the Senate approved a procedural request to allow Senate Bill 1447 to be heard in policy committees after the deadline. The chamber then confirmed five gubernatorial appointments: Alan Guy, Henry Nutt III, Steven Pennelli, Jacob Arkatov, and Dr. V. V. Ling Sai, with each confirmation passing on unanimous or near-unanimous roll calls. The Senate also adopted Senate Resolution 88, recognizing the 50th anniversary of modern biotechnology and the 20th anniversary of the California Biotechnology Foundation, and Senate Resolution 90, recognizing April 14-16 as Khmer New Year; both resolutions passed 37-0. The remainder of the session included committee announcements and an extended adjournment in memory of Rod Diridon Sr., with several senators speaking to his long career in local government, transportation planning, environmental advocacy, and public service. Members emphasized his role in shaping transit in Santa Clara County and California, his mentorship, and his lasting influence on the region. The Senate then announced it would recess and reconvene on Monday, April 13, 2026.

Keywords: 988, house, all

Keywords: 987, senate, all

Summary: The Assembly Appropriations Committee met on April 8, 2026, with a quorum established and 59 bills listed for consideration. The committee first approved two consent calendars: several bills were sent to the Assembly floor on a due-pass basis, and a smaller set was approved due-pass but not eligible for the floor consent calendar. The proposed suspense calendar was then deemed approved without individual debate on those measures. The committee heard several bills in regular order. AB 1977, sponsored by the Secretary of State, would clean up and clarify the Online Notarization Act to support implementation by 2030; it drew no opposition and was approved. AB 2011 would codify existing federal mental health parity standards into state law; supporters said it would preserve enforcement authority, while health plans opposed it as premature given federal uncertainty and possible premium impacts; the bill was placed on the B roll call. AB 1673 would give county fish and game commissions more flexibility to use certain revenues for wildlife conflict prevention, and it advanced on an A roll call. AB 2233 would allow unused authorized ABA therapy hours for children with autism to be made up within the authorization period; supporters emphasized access and continuity of care, while insurers warned of higher costs and reduced utilization safeguards; it advanced on an A roll call. AB 1660, as amended, would give courts more flexibility in cases involving financial institutions and public guardians/conservators, with supporters saying it could save counties time and money; it was approved due-pass as amended. During general public comment, speakers voiced support for AB 2081 and AB 1667, and opposition to AB 1777. After public comment and final vote recording for absent members, the committee adjourned.