Transcript Highlights:

• That is, planned expenditures exceed planned revenues.
• One note that I would make is the temporary surplus holding account is not a new account.
• The draft plan that the water board has put out calls for a program to implement this Draft plan that
• Tell me what happens if gridlock continues, though, and the plan and the standards in the plan are not
• It's not just a local opportunity.

Transcript Highlights:

• Our contractors are in the communities working to advocate for their populations at their local planning
• other managed care plans.
• Katie Andrew, Local Health Plans of California.
• Katie Andrew, Local Health Plans of California.
• Katie Andrew, Local Health Plans of California.

Summary: The Assembly Budget Subcommittee on Health held a May Revision hearing covering several health-related budget proposals and broader concerns about the state’s budget structure. The Chair opened by praising some May Revision changes, such as added health IT funding, county administration support tied to Medi-Cal changes, a delay in Medi-Cal cuts for some lawfully present immigrants, and additional support for Covered California subsidies, while criticizing proposed increases in Medi-Cal premiums, changes to senior eligibility, the lack of a Medi-Cal dental solution, and other reductions affecting counties, mobile crisis units, workforce incentives, and physician shortages. The Legislative Analyst’s Office said the state’s budget condition remains weak despite progress on the structural deficit, and the Department of Finance said the May Revision uses a mix of reductions, reforms, revenue proposals, and fund shifts to cut out-year deficits. The committee first heard Department of State Hospitals proposals, including adjustments to county bed billing authority, contract exemption language for online clinical/pharmacy subscriptions, reversion of unspent funds, a revised Metro Central Utility Plant replacement project, electronic health record implementation, and workforce development funded partly through Behavioral Health Services Act resources. DSH also described savings and realignments in incompetent-to-stand-trial and conditional release programs, including extending the independent placement panel program and shifting funds to support additional bed capacity and a mental health rehab center. Members asked about the use of BHSA funds for workforce programs, and the department said the proposal would replace General Fund support with BHSA reimbursements. The Emergency Medical Services Authority proposed funding for statewide behavioral health crisis response guidance and for enterprise system development, and the Department of Managed Health Care proposed modernization of its complaint system and claims-settlement data system to improve oversight and comply with AB 3275. The largest discussion centered on the administration’s BHSA spending plan under Proposition 1, including state-directed prevention, workforce, and other uses, plus General Fund offsets for existing programs. The LAO questioned whether some proposed offsets fit Proposition 1’s non-supplant and eligible-use requirements, while the administration argued the uses were consistent with the measure and that the state-directed share can be adjusted annually. The Commission for Behavioral Health’s proposals drew the most public and member concern. The administration proposed cutting the commission’s Innovation Partnership Fund from $20 million to $10 million and reducing the Community Advocacy Program by $6.7 million, while redirecting BHSA dollars to other state purposes and direct services. Commissioners, advocates, and several members argued the cuts would weaken community voice, reduce support for underserved populations, and disrupt grants already in process; they also objected to using BHSA funds to backfill General Fund commitments. Public commenters, including youth, disability, behavioral health, LGBTQ, tribal, veteran, immigrant, and community-based organization representatives, overwhelmingly opposed the cuts and urged preservation of prevention, advocacy, mobile crisis, and innovation funding. No votes or final actions were taken during the hearing.

Transcript Highlights:

• local governments, local developers, service providers, and, of course, the state Legislature.
• Often they're coming for local subsidy.
• There needs to be a good plan.
• To local land use agency.
• I don't have the luxury of rounding up my bank account. don't let us of rounding up my bank account.

Summary: The subcommittee heard an extensive presentation on the administration’s housing reorganization proposal, which would centralize multifamily affordable housing finance under the new Housing Development and Finance Committee (HDFC) and align it with the Governor’s trailer bill language. Administration officials said the plan is intended to create a one-stop application and award process, reduce duplicative timelines and costs, and pair state subsidy with private activity bonds and federal tax credits more efficiently. They also described proposed changes to the Affordable Housing and Sustainable Communities program, including shifting a larger share of funding toward housing-related awards while preserving a portion for sustainable communities investments. The Legislative Analyst’s Office generally supported the streamlining concept but recommended changes to the proposed bond set-aside timing and urged flexibility for integrated applications and future reporting on demand. Senators, especially Senator Cabaldon, raised concerns that the proposal could weaken the original climate-and-transportation purpose of the sustainable communities program and that the reorganization would be undercut by the lack of new housing production funding in the budget. The item was held open without a vote. The committee then received a report from the California Debt Limit Allocation Committee and the California Tax Credit Allocation Committee on federal and state housing tax credits. Staff explained that the federal H.R. 1 change lowering the bond-financing threshold from 50% to 25% greatly expanded the number of projects able to use the 4% federal tax credit, allowing California to fund many more projects and units. They also described the state low-income housing tax credit as an important gap-filling tool for projects that still need additional subsidy, and noted existing set-asides for rural, homeless, at-risk, and extremely low-income projects. Members discussed rehabilitation as well as new construction, and the item was informational only. Finally, the Civil Rights Department reported on the effects of federal civil rights policy changes and on three programs facing expiration: California vs. Hate, the Community Conflict Resolution Unit, and Investigations and Conciliation Enhancement. Director Kevin Kish said federal cuts and policy shifts have reduced support for fair housing and other civil rights functions, while CRD’s caseload has grown from about 8,700 open matters a year ago to more than 12,000, with a six-month wait for interviews despite overtime triage efforts. Senators expressed strong support for continuing the programs and concern about the broader federal rollback of civil rights enforcement. The department said it is using overtime, intake triage, and outreach partnerships to manage the workload and direct Californians to appropriate state, local, and nonprofit resources.

Transcript Highlights:

• It also allows an applicant to use a private plan checker if a local agency cannot complete a plan check
• California's local agencies face extreme plan-checking delays due to a combination of staff shortages
• Third, if a third-party plan checker is used, the bill requires a local agency to issue a permit to an
• AB 2418 aims to provide local planning desks and building permit applicants with an additional tool to
• These disaster recovery plans would provide local agencies the ability to define.

Committee: Senate Local Government

Transcript Highlights:

• I deposit it into my account.
• they accountable for?
• Each plan has their own parameters.
• to the plan sponsor.
• the plan pays.

Committee: House Health and Mental Health

Transcript Highlights:

• Mark Hennig, Iron Workers Local 378, a local California, in support.
• Mark Hedig, Ironworkers Local 378, a local California, in support.
• I'm Local 270, and I support. Martin Perez, I'm Local 270, and I support.
• El Pio Rocha, Local 185, support. El Pidio Rocha, Local 185, support.
• Morales, Local 304, I support. Martin Perez, Local 270, I support.

Summary: The Assembly Natural Resources Committee heard three major bills. SB 237, by Senator Grayson, proposed a package of fuel-supply and permitting changes aimed at stabilizing gasoline prices during California’s energy transition. Supporters, including state officials, Kern County representatives, labor groups, and industry groups, said it would help retain in-state refining and drilling capacity, reduce price spikes, and protect jobs. Opponents, including environmental justice and conservation groups, argued it would expand oil drilling without enough community protections and would not meaningfully address climate goals. After extensive testimony and questions about emissions, sunsets, and long-term strategy, the committee passed SB 237 on a due pass vote, with some members voting no or not voting. SB 352, by Senator Reyes, sought to strengthen implementation of AB 617, the community air protection program, by codifying the Environmental Justice Bureau in the Department of Justice, extending monitoring requirements, and requiring annual legislative reporting. Supporters said the bill would improve accountability and ensure that funding for impacted communities actually produces emissions reductions. Some environmental justice advocates were neutral or not fully supportive because they wanted stronger language, while business and industry groups opposed the bill, arguing it was added late and duplicated existing processes. The committee approved SB 352 on a due pass vote. SB 840, by Senator Limon, was the cap-and-invest reauthorization package. It would update offset protocols, adjust how revenues are spent, and continue funding for key climate, housing, transit, and community programs, including AB 617. Support came from environmental groups, labor, local governments, housing advocates, and clean transportation organizations, while some agricultural interests objected that the package did not sufficiently prioritize climate-smart agriculture and methane reduction programs. The committee passed SB 840 on a due pass vote as well. All three measures were later confirmed out of committee after calls were lifted.

Transcript Highlights:

• So if there's a plan going forward and plans have been made, and the... ...board and plans have been
• made, and the infrastructure plans and parking plans, all of these things are already in place, why now
• Rental car center is part of that plan? And this is not to take away from that plan.
• so long as local control is not tyrannical.
• Accountants and lawmakers do weird things.

Committee: House Government Efficiency

Transcript Highlights:

• On WIOA state plans, it's been an option since 2020 to do a combined plan.
• The importance of a combined plan is...
• Plan, you know, set labor force goals for each of those populations, and then let's hold ourselves accountable
• And then the local board, rather than having to do all this accounting stuff, spends more of their time
• I love the accountability.

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Summary: The committee heard a lengthy presentation from Nick Moore, acting assistant secretary of the Office of Career and Technical Education, focused on integrating workforce, education, training, and human services systems. Moore argued that federal programs under WIOA, Perkins, and ESSA should be aligned more closely, with fewer administrative layers, more state flexibility, and stronger use of labor market information to steer training toward in-demand jobs. He emphasized combined state plans, streamlined reporting, cross-training staff, integrated intake and case management, and better use of tools such as apprenticeships, talent marketplaces, and co-enrollment with SNAP, TANF, and Medicaid to help people overcome benefit cliffs and move into work. Moore also criticized current workforce outcomes, saying too much money is spent on overhead and too few participants end up employed in jobs related to their training. He urged states to reduce duplicative one-stop centers, improve transparency in budgeting, modernize data systems, and use performance measures tied to labor force participation, training-related employment, and retention. Members asked about balancing flexibility and accountability, the role of employers versus postsecondary institutions, rural “training deserts,” statewide waivers, and data-sharing systems such as Mississippi’s workforce technology efforts. Moore said the department wants to help states get to “yes” on innovative ideas, but that some changes would require congressional action. After Moore’s presentation, DHS Secretary Janet Mann and Director Jay Hill gave a brief update on reimbursement rates. They said the agency had compiled and posted responses to more than 100 public comments, had recommended that the governor keep current rates in place, and expected the executive review process to take about 30 to 60 days. A senator asked for clarification on the legislation requiring monthly verbal and written reports. The meeting then adjourned, with members noting a later presentation on an audit of state programs.

Transcript Highlights:

• Specifically, this bill increases transparency and long-term planning, puts local taxpayers in control
• via local referendum, improves planning for large resiliency projects, increases planning for Everglades
• Specifically, this bill increases transparency and long-term planning, puts local taxpayers in control
• via local referendum, improves planning for large resiliency projects, increases planning for Everglades
• guide for residents during the rebuilding process and directs locals to have post-storm permitting plans

Summary: The Senate opened with prayer, the Pledge of Allegiance, doctor and guest introductions, and then took up Committee Substitute for Senate Bill 168, the Tristan Murphy Act, on mental health. Senator Bradley described the bill as a major criminal justice and behavioral health reform measure that would expand pretrial mental health diversion, strengthen treatment-based probation conditions, broaden grant uses for mental health and substance abuse programs, add Hillsborough County to a forensic hospital diversion pilot, require certain DOC mental health evaluations, and create a Florida Behavioral Health Data Repository. Senators from both parties spoke in strong support, emphasizing treatment over incarceration, public safety, data collection, and the Murphy family’s role in advancing the bill. The Senate passed the bill 37-0 and then approved 37 co-sponsors. The chamber then received the Senate’s 2025-26 General Appropriations Bill, SB 2500, with Chair Hooper outlining a $117.4 billion budget that he said reduces spending, preserves reserves, and includes major investments in water quality, transportation, education infrastructure, and reporting requirements. Committee chairs summarized their portions: K-12 funding at $34.7 billion with increases for FEFP, scholarships, VPK, school hardening, and school safety; higher education at $11.5 billion with workforce, nursing, reading, autism, and student aid investments; health and human services with a $1.8 billion increase for Medicaid, mental health, opioid response, disability services, and veterans programs; criminal and civil justice at $7.6 billion for corrections, juvenile justice, law enforcement, courts, and judgeships; transportation/tourism/economic development at about $18 billion including roads, housing, Visit Florida, and cultural grants; and agriculture/environment/general government with major Everglades, water quality, citrus, food bank, and agency IT funding. Members then questioned several budget items, especially education funding formulas, the shift of scholarship dollars below the line, the impact on public school districts, AP/IB and other accelerated program funding, the APD wait list, opioid settlement spending, arts grants, and the My Safe Florida Home and condo pilot programs. Chairs generally said scholarship and accelerated-program dollars were being restructured for transparency and flexibility rather than cut, that school districts would still receive funding based on enrollment, and that APD and other human services issues would continue to be worked out in conference. The budget discussion concluded with remarks praising staff and noting a 4% across-the-board pay raise for state employees and targeted increases for law enforcement and firefighters, followed by a recognition for FAMU Day at the Capitol.

Transcript Highlights:

• plan's policies and goals into the city's general plan and establishing a land use plan that would transform
• In 2010, I was mayor when we passed the reuse plan.
• We also have planned, ...with the Navy and HUD.
• I wasn't planning to, to be honest.
• The addition of the local tribal register is...

Committee: Senate Environmental Quality

Summary: The committee heard presentations on several energy, environmental, and consumer protection bills while operating at times without a quorum. Senator McNerney presented SB 925, which would direct the California Energy Commission to develop a statewide roadmap for fusion energy, and SB 1350, which would expand the use of green hydrogen in the power sector by allowing renewable portfolio standard credit for power plants using hydrogen. Supporters said both bills would help California maintain leadership in emerging clean-energy industries, attract investment, and create jobs. Opponents of SB 1350 raised concerns about greenwashing, resource shuffling, and increased NOx emissions from hydrogen combustion, while supporters said committee amendments added guardrails against those outcomes. Senator Ashby presented SB 1010, a manufacturer-funded extended producer responsibility program for refrigerants in appliances; supporters said it would reduce greenhouse gas emissions and improve recovery, while opponents argued existing laws already regulate refrigerants and that the bill could raise costs and disrupt recycling markets. Senator Grayson presented SB 1145 to streamline CEQA and federal reuse procedures for qualifying projects in the Concord Reuse Project Area, which supporters said would help deliver long-planned housing, jobs, and open space, while one housing group sought stronger affordable-housing guarantees. Senator Cabaldon presented SB 1341, which would give CalRecycle authority to reduce processing fees for wine and spirits bag-in-a-box containers when fee collections exceed program needs; supporters said the current fee increase was abrupt and excessive, while opponents warned against giving the agency too much discretion. Senator Padilla presented SGR 13, urging the U.S. to secure enforceable commitments to eliminate transboundary sewage pollution in the Tijuana and New River watersheds during the 2026 USMCA review, and SB 1033, which would require testing and disclosure of heavy metals in protein products; SGR 13 drew strong support from border and environmental justice advocates, while SB 1033 drew support from consumer and health groups and opposition from industry groups concerned about labeling burdens and scope. Senator Caballero presented SB 1183, requiring a state study of the environmental, land-use, and economic impacts of industrial solar in the Central Valley; farm and land-use advocates supported the bill, while solar industry groups opposed unless amended, saying it should better reflect solar’s benefits and existing state analysis. After testimony, the committee took roll and adopted several measures on a 4-0 or 3-0 basis, with bills including SJR 13, SB 925, SB 1350, SB 1145, SB 1341, SB 1033, and SB 1010 advanced on call to Appropriations or, in the case of SB 1010, already voted with a 3-1 result before being held on call.

Transcript Highlights:

• However, this relates to health plans, and health care sharing ministries are not health plans, nor insurance
• argue we don't sell health plans.
• But we don't even sell a health plan.
• It doesn't have to be a plan.
• This bill allows them to have a plan.

Summary: The committee heard and advanced several bills. SB 624, by Senator Yarborough, would allow batterers intervention programs to offer optional supplemental faith-based activities, with no participant required to take part; supporters said it would expand provider options amid a shortage of certified programs, while opponents raised concerns about government speech and mixing religion with court-ordered programming. After debate, the bill was reported favorably 7-2. The committee also considered CS/SB 834, which repeals a 2022 restriction preventing licensed insurance agents from marketing or selling health care sharing ministries; supporters framed it as restoring choice and free speech, while opponents warned about consumer confusion, commissions, and lack of insurance protections. It was reported favorably 8-2. The committee next approved CS/SB 502, via a strike-all amendment, to give Florida concurrent jurisdiction over certain juvenile offenses on military installations so juveniles can be handled in state juvenile court rather than federal court; the amendment and bill both passed unanimously. CS/SB 52 also passed unanimously after testimony from church leaders and security personnel supporting an exemption from Class D/G licensing for unpaid armed security volunteers at places of worship. Supporters said the bill would clarify legal gray areas and help churches afford security, while members noted the broader concern that houses of worship need armed protection at all. Finally, the committee reported favorably SB 840, which revises last year’s emergency/local planning law by narrowing its application after storms from 100 miles to 50 miles of the storm track and exempting certain water, flood, and state/federal planning matters; local government representatives supported the clarification, and the bill passed 9-0. CS/SB 758, as amended, updated the membership of the Justice Administration Commission to better reflect the entities it oversees, and it also passed 9-0. The meeting ended with a recorded affirmative vote from Senator DeSigley on SB 624.

Transcript Highlights:

• and delivering wood to local mills.
• and delivering wood to local mills.
• and delivering wood to local mills.
• and delivering wood to local mills.
• account whole.

Summary: The Ways and Means Committee held its first meeting of the 2026 session to hear Governor Ferguson’s proposed supplemental capital budget from OFM. Budget staff said the proposal uses nearly all of the roughly $400 million in available bond capacity, leaving about $5.4 million unused, and includes additional funding from the Common School Construction account, the Climate Commitment Account, and federal funds. OFM described housing as the largest priority, with $237 million total, including $225 million for the Housing Trust Fund for affordable rental housing, homeownership, preservation, and manufactured home community acquisition; it also highlighted urgent state facility needs, climate and clean energy investments, natural resource projects, and education funding for school seismic safety, small district and tribal compact school modernization, lead pipe remediation, and higher education preservation projects. Committee members asked about the timing of housing production, and OFM said the proposed supplemental projects would not be completed within the biennium. Public testimony in the housing section strongly supported the governor’s housing investments, especially the Housing Trust Fund, manufactured housing preservation, and homeownership programs, while several speakers asked for larger appropriations for workforce housing, community land trusts, right-to-counsel, and specific local projects such as Thrive Center Tacoma, Alliance Place, Casa Mia, and Native and immigrant community facilities. One testifier criticized overall state tax policy, but the chair clarified that the capital budget is bonded and does not directly raise taxes. Testimony on K-12 education generally supported the proposed funding for small school modernization, seismic safety, and Healthy Kids, Healthy Schools lead remediation, with rural districts emphasizing the importance of planning and construction grants for aging facilities. Higher education witnesses supported preservation and deferred maintenance funding but asked for additional support for projects at Cascadia College, WSU Spokane, UW’s decarbonization work, and other campus infrastructure needs. Natural resources testimony backed Salmon Recovery Funding Board and community forest investments, while asking for more funding for ranked RCO projects. In the final section, local governments and utilities opposed a proposed $75 million transfer from the Public Works Assistance account to the operating budget, warning it would reduce infrastructure lending capacity; other speakers supported the Washington State Green Bank, public works financing, and several local economic development and utility projects. No votes or formal committee action were taken at the meeting.

Transcript Highlights:

• The local governments expend these funds in accordance with their approved local housing assistance plans
• dispersed to the local governments.
• I notice all of your budget, you pay planning and budget a million, 1.2 to plan your budget.
• You guys still have a plan to... The plan? Will you have to drop back and punt here?
• That plan has been submitted.

Summary: The committee met to review agency program funding as it prepared to build the budget, hearing brief presentations from six agencies and then taking member questions. Florida Division of Emergency Management highlighted its role in response, preparedness, recovery, and mitigation, describing a largely federal pass-through budget, major technology investments, and large disaster and preparedness grant activity. The Department of Commerce, Department of State, Florida Housing Finance Corporation, Department of Transportation, Department of Military Affairs, Florida State Guard, and Department of Highway Safety and Motor Vehicles also summarized their budgets, staffing, and major programs, including workforce and economic development, elections and arts funding, housing assistance, transportation work programs, military readiness, state guard expansion, and highway safety and motorist services. Members focused questions on several issues: arts and library grant funding and whether award criteria had changed; Commerce’s rural infrastructure and job growth grants and why funds were not being disbursed faster; Florida Housing’s use of SAIL, Live Local, Hometown Heroes, and SHIP funds and how smaller agencies learn about and access funding; and DOT’s work program gap between agency and governor proposals. The most extensive questioning was directed to Highway Safety and Motor Vehicles about long DMV lines, vacancies, overtime, staffing shortages, and the ability to shift funds between divisions. The department said staffing and pay constraints, especially in South Florida, were driving service delays and vacancy rates, and that overtime was being used because troopers were leaving for better-paying jobs. The Florida State Guard was also questioned about its spending and procurement pace, including aircraft purchases and facilities. Its director said long procurement timelines explained the low initial spending and that obligations had risen sharply as contracts matured. Members also asked about the department’s public opposition to Amendment 3 and whether agency resources were used in that effort; the director said no contracts or purchases were made to influence the vote and said the colonel’s comments were made off the clock. The meeting ended with the chair asking agencies to respond promptly to unanswered questions, and the committee adjourned without any recorded votes or formal actions beyond receiving the presentations and questions.

Transcript Highlights:

• We have seen this in the California State Plan on Aging and the Master Plan for Aging.
• for the Master Plan for Aging.
• for the master plan for. recommendations as we iterate and update the next plan for the master plan
• , and it's impacting how they're planning for and funding services at the local level to meet the needs
• resources to meet local needs.

Summary: The Select Committee on Older LGBT Californians held an inaugural hearing focused on the health care and support needs of older LGBTQ Californians, including older adults living with HIV and transgender, gender non-conforming, and intersex seniors. Committee members and state officials discussed the California Master Plan for Aging, the first statewide survey of LGBTQIA older adults, and the need to address discrimination, social isolation, housing insecurity, economic instability, and gaps in culturally competent care. Several speakers emphasized that older LGBTQ adults often lack traditional family caregiving supports and may face vulnerability in nursing homes or other institutional settings. Testimony from advocates and people with lived experience highlighted the impact of federal actions, including H.R. 1, on Medi-Cal, housing, and benefits, and called for stronger state action, outreach, and navigation services. Justice in Aging urged more investment in home- and community-based services and warned that Medicaid cuts could increase institutionalization. The Department of Aging described its survey findings and said it had convened a lived-experience advisory board, updated data tools, and incorporated HIV as a factor in local aging plans under SB 258, though members pressed for clearer implementation and accountability. CalHHS described coordination across departments, Medi-Cal coverage of gender-affirming care, PACE, and other services, while the Department of Public Health outlined Ryan White, ADAP, HOPWA, Medi-Cal waiver, and PrEP-AP programs serving older adults with HIV. The hearing also featured extensive testimony from people aging with HIV, who described fragmented systems, benefits cliffs, housing costs, and the need for legal and case-management support. One witness urged funding for HIV-specific housing and navigation services, while another described how case management and safety-net programs help clients manage medication, food, transportation, and housing needs. In the final panel, the Department of Social Services reviewed protections for TGI seniors in licensed care facilities, including SB 219, nondiscrimination notices, resident rights postings, required staff training, and complaint investigations. No formal votes were taken; the chair repeatedly asked departments to follow up on implementation gaps, data visibility, and possible budget or policy responses.

Transcript Highlights:

• And I think a big part of that, too, is accountability.
• level. ...to understand what the pain points are at the local level and talk to local planners about
• So I mean, For local planners to help them improve their processes.
• So this is an intensive training program for local governments.
• I think really prioritization matters, accountability matters.

Committee: House Utilities and Energy

Transcript Highlights:

• The five-year plan is expensive, and it's not...
• California's never had a long-term plan in this way.
• And so at the local level, those begin to feel more like local cuts.
• nonprofits or local government.
• that were paid out of the nonprofit's bank accounts.

Summary: The subcommittee opened with remarks on the state budget and K-12 education, noting the large increase in the Proposition 98 minimum guarantee, the use of deferrals and reserves in the prior budget, and the challenge of balancing education funding against other state priorities. Superintendent Tony Thurmond described California education as improving overall, citing gains in test scores, graduation, and college readiness, but said major gaps remain for low-income students, students of color, agricultural communities, English learners, foster youth, and students with disabilities. He praised recent investments in universal meals, transitional kindergarten, community schools, arts, broadband, and special education, while warning that declining enrollment, chronic absenteeism, and the proposed $5.6 billion Prop. 98 settle-up create uncertainty for districts. He also urged a long-term literacy plan, expanded tutoring, universal kindergarten, and continued protections for students and families affected by immigration enforcement, including ICE-related fear and attendance loss. The committee then heard a detailed presentation on Proposition 98 from the Department of Finance and the Legislative Analyst’s Office. Finance explained that the Governor’s budget projects the minimum guarantee will rise by about $21.7 billion over three years, with a $5.6 billion settle-up obligation in 2025-26 intended to avoid overappropriation if revenues weaken. Finance also described revised reserve deposits and withdrawals, ending with about $4.1 billion in the Public School System Stabilization Account by 2026-27. The LAO said recent revenue collections were stronger than expected in the current year but warned that the outlook for 2026-27 is weaker and that stock-market-driven revenues remain volatile. The LAO supported maintaining reserves and one-time spending buffers, but recommended fully funding the guarantee and using other budget solutions rather than shifting the settle-up into future deficits. Members asked about the settle-up process, certification timeline, the effect of attendance declines tied to immigration enforcement, and wildfire-related impacts, including Pasadena Unified’s $4 million special appropriation. On LCFF and necessary small schools, Finance proposed a 2.41% COLA and about $2.2 billion in additional LCFF funding for districts and charters in 2026-27, plus a $30.7 million ongoing increase to raise the necessary small schools allowance by 20%. The LAO supported funding the COLA but said the small-school increase was not tied to a specific cost study and could be redesigned to better target small districts, noting that only a fraction of very small districts would benefit. Questions focused on how small schools access supplemental and concentration grants and how attendance recovery programs are being implemented. The Department of Education said only 130 LEAs had reported attendance recovery so far, likely because it is a new program with compliance requirements, though interest appears to be growing. FICMAT then reviewed the fiscal health of local districts, reporting an uptick in qualified and negative certifications, though still far below Great Recession levels. It said declining enrollment, rising special education costs, and higher labor and insurance costs are the biggest fiscal pressures, and that some districts are using fiscal stabilization plans and staff reductions ahead of second interim reports. FICMAT also discussed wildfire impacts on Pasadena Unified and Los Angeles Unified, explaining that Pasadena’s $4 million state appropriation was based on an early post-fire assessment and that the district is being monitored with the county office of education. Members raised concerns about Pasadena’s leadership, special education staffing shortages, AB 218 sexual abuse litigation costs, insurance premium increases, and the need for stronger prevention and training measures. FICMAT said SB 848 and related policies address some of those concerns by strengthening standards, training, and reporting requirements.

Transcript Highlights:

• And the Energy Commission and local planning agencies will have critical information for protecting communities
• So I want to say on behalf of climate plan, the Leadership Council for Justice and Accountability, Transform
• Thank you. locally, local homeowners who love the Joshua tree, are also unable to do work on their own
• If your local city is allowing a type of development that is multi-story, that is your local city who
• By defining these areas at the local level, more focused adaptation planning can take place to minimize

Summary: The committee heard a long series of bills, beginning with AB 2026 on groundwater recharge. The author and supporters said the bill would streamline permitting for recharge projects, codify long-standing CEQA exemptions for flood diversions to recharge, and add tribal consultation and other guardrails. Water agencies and local districts supported the measure as a way to capture high-flow water and reduce groundwater subsidence, while environmental groups and some irrigation districts opposed it, warning that the bill’s exemptions and broader diversion authority could harm rivers, Delta resources, and public trust values. The bill was discussed but not voted on because the committee lacked a quorum at that point. The committee then took up AB 1577 on data center energy accountability, which would require monthly reporting of energy-use data and permit-related estimates of energy and water demand. The author and the Little Hoover Commission argued the bill would improve transparency, help protect ratepayers, and give regulators better information for grid planning. Data center industry representatives opposed it as duplicative, burdensome, and uniquely targeted, while local governments, environmental groups, and some utilities supported it or supported it if amended. The bill was later reported out with a due pass recommendation once a quorum was established. Members also heard AB 2245 on a producer responsibility program for lubricant products and containers, AB 2170 on CEQA language-access and environmental review protections for overburdened communities, AB 2059 on rural transportation and VMT mitigation, AB 1808 on Western Joshua tree permitting and fee relief, AB 2182 on industrial energy efficiency program changes, and AB 2231 on streamlining two hospital projects. Testimony was mixed on most of these bills: supporters emphasized affordability, local control, environmental justice, or project urgency, while opponents raised concerns about CEQA scope, regulatory duplication, costs, and environmental impacts. Several measures received due pass recommendations and roll-call votes, including AB 2170, AB 2059, AB 1808, AB 2182, and AB 2231, with some members voting no or not voting and some bills left open for absent members.

Transcript Highlights:

• So that's the plan after that.
• This legislative account, the annual transfer into the account is $8.511 million.
• out of the legislative account.
• Inactive accounts or sub-accounts from the school district building account.
• sub-accounts.

Summary: The joint House Appropriations and Senate Finance committee met with a quorum and began by recognizing two pages, who each described their plans after serving and what they learned about the legislative process. The committee then turned to year-end cash transfer proposals presented by Keith Bybee, who explained that the packet contained 14 motions tied to balancing the current and upcoming budgets and managing fund balances. The proposals included transferring remaining legislative remodel funds back into the legislative account and reducing legislative transfers in fiscal years 2026 and 2027; moving unobligated money from the Idaho Broadband Fund and inactive school district building accounts to the general fund; and creating flexibility to use the 27th payroll fund only in an emergency. Other items would redirect interest earnings from several funds, including the budget stabilization fund, public education stabilization fund, water pollution control fund, permanent building fund, ARPA-related funds, and Strategic Initiatives funds, with some proceeds going to the general fund, fire suppression deficiency account, or transportation-related purposes. Members asked about balances, obligations, and the meaning of terms like “unobligated” versus “unawarded,” and Bybee said he would verify some figures before the noon meeting. Several members discussed the broader budget strategy, including the rationale for aiming for a $150 million ending balance and whether the committee should rely on reserve transfers versus other budget adjustments. Some members emphasized preserving legislative control over future supplemental spending and providing a roadmap for new committee members, while others noted that the state’s fiscal situation was partly the result of revenue decisions made by the legislature itself. The committee did not vote on the motions during this session and adjourned until noon, when it planned to take action after members had time to review the updated green sheet and follow up on questions.

Transcript Highlights:

• And right now, that accountability runs through local transportation agencies.
• It requires specified local planning efforts to work in coordination with affected tribal governments
• Use paths that are part of state or local active transportation plans and a certain highway planning
• accounts established by local jurisdictions for engineering and traffic investigations, the creation
• accounts established by local jurisdictions for engineering and traffic investigations, the creation

Committee: House Transportation

Transcript Highlights:

• </c><00:01:38.960><c> There's</c> just as a custody account. There's just as a custody account.
• , including deposit accounts, custodial, including deposit accounts, safety<00:04:38.280><c> deposit<
• <00:07:51.000><c> registration</c><00:07:51.600><c> caps</c> local registration caps local registration
• </c> the health plans. the health plans.
• </c> a local charity. a local charity.

Committee: Senate Commerce and Consumer Protection