Transcript Highlights:

• With respect to the department's budget, the proposed budget for fiscal year 26-27 With respect to the
• department's budget, the proposed budget for fiscal year 26-27 totals $3.2 billion, including state
• The proposed budget includes four permanent positions and two one-year limited-term positions in budget
• So they're ongoing budget requests.
• The broader budget context matters.

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

Transcript Highlights:

• </c> operations and and and agency oversight operations and and and agency oversight to<00:30:09.679>
• Well, those budget bills come through individual committees.
• Yes, like budget bills that have specific nonprofits with an allocation.
• Well, those budget bills come through individual committees.
• Well, those budget bills come through individual committees.

Keywords: 1187, senate, all

Transcript Highlights:

• And so it was just an oversight. So they were Deposits were not being made.
• And so it was just an oversight. So they were accounting for the deposits.
• budget posted to the appropriations journal.
• It's not budgeted.
• That it would require that amendment to the budget.

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Keywords: 1204, all

Transcript Highlights:

• Big banks drain public resources, a significant portion of city and state budgets...
• And our total state budget is about 20 billion, rough numbers.
• the transportation budget, are around $25 billion.
• Budget issues are chronic and recurring.
• shortfall that Tacoma was dealing with this past budget cycle.

Summary: The committee first received a JLARC work session on the 2025 tax preference performance reviews, covering nine tax preferences and recommending legislative action on eight. JLARC reviewed natural gas transportation fuel preferences, travel agent and tour operator B&O rates, a property tax exemption for nonprofit low-income housing developers, and several shorter reviews including senior center property tax relief, a disabled veteran adapted housing remittance, trade convention nexus treatment, wholesale sales of fertilizer/pesticides/seed, a hazardous substance tax exemption for pesticides stored for out-of-state shipment, and three energy-related preferences for a silicon smelter. JLARC generally recommended continuing preferences that met stated or inferred objectives, modifying some to improve reporting or performance metrics, and allowing the unused silicon smelter preferences to expire. The Citizen Commission endorsed JLARC’s recommendations, and committee members asked a few clarifying questions, including about trends in travel agent/tour operator beneficiaries and the housing exemption’s performance metric and data issues. The committee then heard a work session and public hearing on Senate Bill 5754, which would create a Washington State public bank. A presentation from California public banking advocates and the Bank of North Dakota described public banks as government-owned financial institutions intended to keep public funds working locally, support lending for housing, infrastructure, and community development, and partner with community banks and credit unions. Committee questions focused on leverage, liquidity, constitutional issues, and how the model would interact with existing state investment and debt structures. Staff summarized the bill’s structure, including activation conditions, governance, powers, and fiscal impacts, noting the fiscal note was largely indeterminate and startup costs could be significant. Public testimony on SB 5754 was divided. Supporters included statewide elected officials, county and city officials, labor, educators, community advocates, and residents, who argued the bank could lower borrowing costs, improve access to capital, keep public money in Washington, and help finance infrastructure, housing, and disaster resilience. Opponents included community bankers and county treasurers, who warned about risks to safety and liquidity of public funds, questioned the need for a new institution given existing programs, and argued the proposal lacked a proven track record in Washington. The hearing concluded with no vote taken in the transcript.

Transcript Highlights:

• Budget impact.
• Step five, governance oversight, represents the post-award oversight and governance structure that will
• That is way outside of my budget. That is an example. $3,000 apiece per month.
• That is way outside of my budget.
• Saying, you know, that child may not need to be removed or may not need court oversight.

Committee: Senate Children, Families, and Elder Affairs

Keywords: 999, senate, all

Transcript Highlights:

• Advocates are also going to be doing budget advocacy on this as well. Yeah.
• Advocates are also going to be doing budget advocacy on this as well. Yeah.
• Outside of competitive bidding, this discretion has been exercised without oversight or transparency.
• But oversight and accountability is very much a must for me. And it should be for all.
• The reality is we actually need more oversight in these types of relationships and contracts.

Committee: Senate Education

Summary: The Senate Education Committee heard several bills focused on school nutrition, campus safety, college affordability, and UC contracting ethics. SB 1058 by Senator McNerney would remove price as the primary factor in school nutrition procurement, allowing districts more flexibility to prioritize meal quality, cultural appropriateness, local sourcing, and sustainability. Support came from school nutrition officials, education agencies, and school business groups; there was no opposition. Members raised questions about vendor selection and safeguards against favoritism, and the bill was ultimately moved forward on a due pass motion. SB 1140 by Senator Ashby, sponsored by the California Federation of Teachers, would require school safety plans to address access control during construction, maintenance, and repair projects by limiting unattended entry points such as open doors and gates. Supporters included Brady Campaign, Moms Demand Action, school employees, labor groups, and Prism. Members discussed how the bill would apply to both new construction and ongoing maintenance, and the measure advanced on a due pass motion. SB 959 was taken up on consent and also moved forward. SB 1006 by Senator Padilla would raise the Cal Grant B Access Award to a new minimum and tie future increases to inflation, with related supplemental awards for student parents and former foster youth also indexed. Support came from higher education advocates, CSU, student groups, and public advocacy organizations, with testimony from a Sac State student describing housing, transportation, and food insecurity. Members generally supported the bill, though questions were raised about fiscal impact; the author estimated about $21 million in first-year costs. The bill passed the committee on a due pass motion. SB 1141 by Senator Wahab would bar businesses from contracting with the University of California if a UC executive is paid by, or has been paid by, that business within the prior year, aiming to address conflicts of interest in UC contracting. AFSCME and UC workers supported the bill, citing examples of executives serving on corporate boards while their institutions contract with those companies. UC and business groups opposed it, arguing it was overly broad, could capture ordinary dividends or unpaid advisory roles, and could disrupt essential contracts and operations. After extensive debate over existing conflict-of-interest laws and whether the bill would create practical problems, the committee approved SB 1141 on a 4-3 vote and then reported the remaining bills out 7-0 as calls were lifted, concluding the agenda.

Transcript Highlights:

• Advocates are also going to be doing budget advocacy on this as well. Yeah.
• Advocates are also going to be doing budget advocacy on this as well. Yeah.
• Outside of competitive bidding, this discretion has been exercised without oversight or transparency.
• But oversight and accountability is very much a must for me. And it should be for all.
• The reality is we actually need more oversight in these types of relationships and contracts.

Committee: Senate Education

Keywords: 987, senate, all

Transcript Highlights:

• This helps you maintain your operational budget.
• But my question is rooted in the line between state oversight and local control.
• Districts’ budgets are developed publicly, reviewed locally, and audited annually.
• What would a reasonable person, looking at a budget expert looking at these districts’ budgets and the
• We certainly understand all of the interests in these financial oversight questions.

Summary: The House Education Committee heard public testimony on three bills focused on school district finances and education ombuds confidentiality. House Bill 2593, an OSPI request, would require school districts to maintain minimum general fund balances beginning in the 2031 school year, with OSPI calculating district-specific amounts and adopting rules. It would also require monthly financial reporting starting in 2028-29 and allow OSPI to withhold apportionment for late reporting or require repayment plans if districts fall below the minimum. Supporters, including OSPI and the prime sponsor, said the bill is intended to prevent districts from reaching binding financial conditions and to provide earlier intervention; opponents from WASDA, rural districts, and school boards argued it would reduce local control, create cash-flow problems, and impose rigid limits that do not fit different district circumstances. Several witnesses also raised concerns about the proposed maximum fund balance and the impact on districts with enrollment volatility, federal impact aid, or special project savings needs. The committee also heard House Bill 2551, which would let school districts with estimated ending fund balances at or below 3% of revenues seek OSPI approval to sell real property before entering binding financial conditions, with proceeds used to restore solvency rather than being deposited into capital or debt service funds. The prime sponsor and Tacoma School District testified that the bill would give districts flexibility to avoid deeper fiscal distress, while OSPI said it supported the concept but suggested a higher threshold and broader minimum fund balance policy. Testimony in opposition or concern focused on the risk of selling appreciating assets, the possibility of one-time sales being used to solve ongoing budget problems, and the need for stronger state funding rather than asset liquidation. The committee also heard House Bill 2440, which would make identifying information in Office of Education Ombuds complaint records confidential, allow limited disclosure by consent or under legislative or gubernatorial subpoena, and require release of a complainant’s own records with redactions; the bill was supported by the ombuds office and its sponsor as a way to protect complainants and encourage reporting. No votes or executive actions were taken. The committee closed the public hearings after hearing testimony and recorded sign-ins, and the chair noted that the bills could be eligible for executive action beginning the following Monday.

Transcript Highlights:

• state budget by the end of this week.
• By Governmental Oversight and Accountability.
• By Governmental Oversight and Accountability.
• By Governmental Oversight and Accountability.
• It preserves legislative oversight.

Summary: The House convened with a prayer, pledge, quorum call, and recognition of Officer Cody Popple of the FSU Police Department for his actions during the April campus shooting. Members also observed a moment of silence for former Lee County Judge John Carlin. The Rules and Ethics Committee report setting the special order calendar was adopted, and the Speaker outlined the final week of session, noting that budget negotiations were still ongoing and that the House would continue taking up Senate bills and returning messages. The chamber then considered a series of mostly technical or sunset-review bills, including SB 100, SB 104, and SB 102 on the Florida Statutes, all of which passed unanimously. Several Open Government Sunset Review bills were also approved, extending or preserving public records and meeting exemptions for the Public Service Commission, the Department of Military Affairs, the Department of Highway Safety and Motor Vehicles, cybersecurity records, emergency shelter information, conviction integrity units, the Florida Gaming Control Commission, and school testing materials; most passed with little opposition, though SB 7006, SB 7026, and SB 7022 drew some dissenting votes. The House also passed SB 7016 on small business loan records, SB 7008 on gaming commission records, SB 7000 on emergency shelter information, and SB 7004 on conviction integrity unit records. Members then moved into farewell remarks and recognitions, including an extended farewell speech by Representative Hart-Lowman reflecting on her service, family, district, and policy priorities such as criminal justice, housing, health care, and labor issues. The House also recognized visiting students from Osceola County and other guests in the galleries. Later, the House took up more substantive measures. SB 7040 recreated the emergency preparedness and response trust fund; after a lengthy debate over an amendment to let the fund expire and a strike-all restoring the House position, the bill passed 82-25. The chamber then passed CS/CS/SB 302 on coastal resiliency, CS/CS/SB 984 on firefighter cancer benefits, and CS/SB 474 on military affairs, all with broad support. The final portion of the transcript shifted to SB 488 on Department of Highway Safety and Motor Vehicles, where members debated vehicle registration requirements, license plate frames, and related amendments, including provisions for disabled veterans and dealer allocation rules, before the transcript ended mid-debate.

Transcript Highlights:

• Their budget kicks out zero.
• So when you take the budget necessary plus the reserves and then minus all, you know, the whole budgeting
• So when you take the budget necessary plus the reserves and then minus all, you know, the whole budgeting
• But when a city submits their budget or an ambulance service submits their budget, who's responsible
• for seeing... their budget or an ambulance service submits their budget, who's responsible for saying

Committee: Joint Legislative Audit and Fiscal Review Committee

Summary: The committee convened, approved the prior meeting minutes, and received a memo summarizing major audit items. The State Auditor’s office and outside auditors then presented a series of audits, many of which were clean with unmodified opinions and no findings, including the Bank of North Dakota, the Guaranteed Student Loan Program, the Office of the Governor, the State Treasurer, the Office of Management and Budget, the Department of Transportation, the Department of Environmental Quality, Lake Region State College, and the Office of the Governor. The North Dakota Stockmen’s Association audit was also clean overall, but it repeated findings about limited segregation of duties and auditor assistance in preparing financial statements, which the auditor said were expected to continue because of the organization’s small size. Committee members asked about out-of-state board addresses, and the association explained those members were North Dakota residents using South Dakota mailing addresses. Several audits did include findings. The Council on the Arts audit identified two issues: payroll charged to federal awards without supporting time records, and $12,825 in Cultural Endowment Fund spending that was not allowable under state law, including staff training, retreats, and executive director candidate travel. The Department of Public Instruction audit found unsupported scholarship applications in the paraprofessional-to-teacher program, but additional testing confirmed the funds were credited properly and students completed required school district work, so no improper payments were identified. The University of North Dakota audit found a lack of documentation and transparency in School of Law admissions decisions; the auditor said the law school used a holistic process but did not keep notes or evaluation tools to show why applicants were admitted, waitlisted, or denied. UND leadership said the school is in good standing with the American Bar Association and agreed better documentation is needed, and the auditor said the issue was the missing documentation, not ABA accreditation itself. The most extensive discussion centered on the North Dakota Racing Commission audit, which found four findings: overspending the promotion fund’s 25% operating cap, grant conditions not being met, improper breeder fund awards, and improper procurement. The auditor said promotion fund spending exceeded the cap by $327,447 and the fund balance dropped sharply over the audit period. Racing Commission director Bruce Johnson said the agency had become complacent, that grant requests were treated as routine, and that controls and documentation need to be tightened. He also explained that the breeder fund overpayments involved two horses whose ownership transfers were not properly documented before racing, and that the procurement issue stemmed from an advertising contract that proceeded without proper written procurement procedures after a misunderstanding with the State Procurement Office. The auditor said the Racing Commission will now be audited every two years because of the findings. The committee also received updates on Dakota College at Bottineau’s bank reconciliations, which Minot State University said had been brought current after an 18-month backlog, with only one account still needing cleanup; members asked for a written report on the corrective actions. The North Dakota Fair Foundation was reported to have dissolved, with remaining funds transferred to another nonprofit account for continued support of the state fair. Finally, the Department of Public Instruction provided an update on school meal debt, revising the earlier estimate to about $1.1 million based on incomplete district survey responses, and said the Anti-Lunch Shaming law likely increased meal debt because schools must feed students regardless of account balance. Members discussed the need for a more accurate year-end debt figure and possible future reporting at a later committee meeting.

Transcript Highlights:

• The Senate Budget and Fiscal Review Subcommittee 4 will come to order.
• So we believe what we have in this budget achieves a balanced budget while also preserving the core elements
• COVID relief funding was very... 2023-24 budget.
• So this is a policy and budget...
• So I just want to be, you know, said that very clearly because it's the kind of oversight that this budget

Summary: The subcommittee first heard an informational overview from the Governor’s Office of Service and Community Engagement (GoServe), including California Volunteers, the Office of Community Partnerships and Strategic Communications, and the Youth Empowerment Commission. GoServe reported strong participation in programs such as California Service Corps, College Corps, Youth Service Corps, Climate Action Corps, and the new men’s service challenge. Testimony emphasized enrollment, retention, and completion outcomes, outreach results, and efforts to reduce administrative costs. The Department of Finance said the administration supports the programs but has already made reductions to help address the budget deficit, while the LAO said it had no new recommendations on the informational item. Committee members raised questions about program scale, demographics, and effectiveness, especially for Climate Action Corps and whether the programs are duplicative of existing volunteer opportunities. One member criticized the programs as too fragmented and costly, while others asked for more data on who is being served and whether the programs increase actual participation in state services. GoServe said it would follow up with demographic and regional impact information. The committee also discussed the men’s service challenge, which GoServe said has formed partnerships with organizations such as YMCAs and Big Brothers Big Sisters and has already attracted more than 2,000 participants. The item was informational only. The committee then heard a BOE overview and a budget request to implement SB 293, which gives wildfire-affected families additional time to claim intergenerational Prop. 13 property tax transfers. BOE requested $154,000 for guidance, public materials, and inquiry response, explaining that the work is urgent and tied to disaster relief in Los Angeles County, especially Altadena. The LAO had no concerns, and Finance had no comment. Members asked how many cases might be affected and whether more funding would be needed later; BOE said the full number is not yet known and that future requests are possible. The committee also heard BOE’s IT modernization proposal for the state-assessed property tax system, a 30-year-old mainframe replacement costing $3.2 million in 2026-27 and $3.1 million in 2027-28. BOE and Finance supported the project as necessary, while the LAO said it had no concerns but urged a high bar for new IT spending. Members generally supported modernization but cautioned about implementation risk. Finally, CDTFA presented an overview and two policy proposals. The department described administering 42 tax and fee programs, collecting $98 billion in FY 2024, and improving administrative efficiency. Members then discussed local sales tax tools and revenue-sharing agreements, with concerns raised about transparency, consultant-driven tax allocation disputes, and the impact on local communities. CDTFA and the LAO explained that local jurisdictions control how district sales tax revenues are spent and noted the Legislature could revisit the statutory cap on local add-on sales taxes. The committee then heard CDTFA’s proposal to treat all delivery network companies as marketplace facilitators so they must collect and remit sales tax on delivery-app orders. CDTFA said the change would resolve confusion, shift compliance from thousands of small restaurants to a few large platforms, and raise about $44 million annually. Several members questioned whether the proposal would effectively raise consumer costs and whether it would create a competitive advantage or disadvantage among delivery platforms. The item remained under discussion, with no vote taken in the transcript.

Transcript Highlights:

• That is a significant part of your budget, obviously. Right.
• You know, I know you've got the judiciary budget coming up.
• All right, members, next we will have the judiciary budget.
• Presenting the budget will be our analyst, Becky Robinson.
• Chairman, before I ever got involved with the budget, And before I ever got involved with the budget,

Committee: House Appropriations

Summary: The Appropriations Committee first reviewed the Department of Justice FY 2027 budget, which was presented at $117.8 million, with most funding coming from statutory dedications and the largest program areas being criminal law/Medicaid fraud and civil law. The Attorney General described major work in Troop NOLA, Medicaid fraud, opioid and PBM litigation, and especially child exploitation and online predator investigations. She said ICAC tips are rising sharply, local law enforcement partnerships have expanded, and her office needs more analysts, more permanent positions, and more expenditure authority for the legal support fund and related programs. Members asked about case backlogs, staffing, settlement funds, and whether more resources could be directed toward outreach, mental health, and technology; the Attorney General said she wants to expand cyber capacity, training, and prevention efforts, and that some settlement recoveries are being used to support existing programs and fraud enforcement. Committee members also focused heavily on child safety, truancy, and mental health. Several representatives described local concerns about online exploitation, trafficking, self-harm, and the need for school-based training and community outreach. The Attorney General said she wants a broader prevention strategy involving parents, schools, and behavioral health resources, and she discussed using outreach models such as anti-vaping campaigns and town halls. On opioid settlement oversight, members raised concerns about the size of the funds and the need for stronger state oversight; the Attorney General agreed more structure and compliance monitoring would be useful and said drug courts and treatment programs are effective investments. The committee then moved to the judicial branch budget presentation. The judiciary requested $229.6 million in FY 2027, plus $5.6 million in one-time funding, with most of the budget coming from state general fund. The presentation highlighted increases for judge salaries, staff pay adjustments, health insurance, operating costs, and 17 unfunded positions, along with one-time requests for security and technology upgrades. Chief Justice John Weimer and other justices said the budget would help core court functions and statewide programs such as CASA, drug courts, and FINS, and they emphasized the need for better staffing and technology in the courts. A major discussion centered on truancy and the FINS program. Justice Griffin said statewide collaboration with education officials had reduced truancy and that FINS officers are trained to identify children who may be runaways or trafficking victims. The justices and members supported expanding FINS so every judicial district has coverage, and they said the program helps keep children out of deeper system involvement. Members also asked about security funding, technology improvements, and the 17 unfunded positions, which were described as mostly clerical, IT, and support roles in appellate and district courts. No votes were taken in the portion of the meeting provided.

Transcript Highlights:

• Updates on cash management and budget.
• budget bill last session.
• Two: the State Water Commission takes a formal oversight role, creating an oversight committee with Commission
• You had mentioned an oversight committee.
• We're going through some budget cuts right now.

Committee: Joint Water Topics Overview Committee

Summary: The Water Topics Overview Committee met with a quorum and heard updates from Department of Water Resources Director Reese Haas and Lieutenant Governor/State Water Commission Chair Michelle Strinden on statewide water funding, major projects, and two legislative studies requested in House Bill 1020. Haas reviewed the status of the Northwest Area Water Supply and Southwest Pipeline projects, noting NAWS construction is expected to move water by fall and Southwest’s Hebron-Rugby expansion phase one is in final design with bids expected next month. He also summarized the department’s budget outlook, including Resources Trust Fund and Water Project Stabilization Fund balances, the effect of oil price volatility and stripper well exemptions on revenues, and the status of project buckets, carryover, lines of credit, regionalization, bid trends, and administrative/process updates. Committee members asked about project prioritization, municipal funding demand, maintenance expectations, replacement versus deferred maintenance, and whether the 2025 session may have underfunded municipal water supply needs. Haas said the commission uses the same high/medium/low prioritization process across all buckets, reviews maintenance plans as part of policy, and is seeing strong demand in the municipal bucket. He also explained that the department’s 14-year projection is based on the next seven legislative sessions and that the state faces a projected $1.3 billion shortfall over that period if all planned projects are funded under current assumptions. Deloitte then presented draft findings from the cost-share policy study and the governance/finance study. For cost share, Deloitte said the model shows a roughly $1.3 billion shortfall over 14 years and about $1.8 billion through 2031 under current policy, and offered seven options including tighter eligibility for replacement projects, state funding caps for the Mouse River and Red River Valley projects, a priority-based cost-share scale, timing shifts, use of existing lines of credit, and delayed reimbursement timing. For governance, Deloitte outlined draft options for Southwest, NAWS, and Red River ranging from maintaining current structures with stronger planning to transferring ownership or adding formal oversight, and recommended broader use of performance metrics, long-term financial planning, and clearer decision trees. No votes or formal actions were taken; the commission discussed the scenarios and the studies will return in revised form later in the spring.

Transcript Highlights:

• With respect to the department's budget, the proposed budget for fiscal year 2026-27 totals $3.2 billion
• The proposed budget includes four permanent positions and two one-year limited-term positions in budget
• So they’re ongoing budget requests.
• The broader budget context matters.
• CBHA supports the budget proposal.

Summary: The subcommittee heard budget and policy updates from the Department of State Hospitals, the Commission for Behavioral Health, and the Department of Health Care Services. DSH described its proposed 2026-27 budget of $3.2 billion, including savings tied to IST solutions, higher patient-driven operating costs, and a small increase in caseload projections. Officials said the department has met court-ordered IST treatment benchmarks, with wait times reduced from a pandemic peak of 1,953 pending placements to about 250, and average treatment initiation now around five days. Members asked about the effects of Proposition 36 and SB 1323, rising outside hospitalization costs, Medicare enrollment, and whether IST solution funding was being overbudgeted; DSH said referrals are slightly down overall, aging and medically complex patients are driving outside care costs, and the IST solution savings reflect slower-than-expected program activation rather than a service gap. The department also outlined proposed funding for CONREP cost increases, a new county-by-county LPS bed allocation model, electrical infrastructure upgrades at Napa and Patton, SB 380 transitional housing feasibility work, and additional dental staffing and space at Metropolitan and Patton. The Commission for Behavioral Health reviewed its role in the Behavioral Health Services Act transition and its new Innovation Partnership Fund. Staff said the commission is shifting from county-level innovation oversight to a statewide grant strategy, with the first $20 million RFA drawing strong interest and awards expected in mid-June. Members asked how “innovation” would be defined, whether grants could be renewed after the initial three-year contracts, and how the state would ensure the money supports real service delivery rather than general outreach or training. The commission also sought a liquidation deadline extension for the Alcove youth drop-in center grants so remaining funds can be spent before they revert, allowing sites to finish implementation and support the final evaluation. DHCS provided an overview of CalAIM and BH Connect implementation, including updated specialty mental health access criteria, new ASAM-based substance use treatment standards, contingency management, traditional health care practices for tribal members, workforce investments, evidence-based practice expansion, IMD participation, and transitional rent services. The department also addressed BHSA implementation, saying it does not track specific local program cuts but will monitor county three-year plans, performance measures, and outcomes as counties shift to the new funding structure. On H.R. 1, DHCS said it is preparing outreach, eligibility simplification, and exemption strategies to reduce Medi-Cal coverage losses, including clinic navigators, a statewide outreach campaign, and possible employment supports through a future waiver. The department also reported that BH-CHIP bond funds have supported 437 infrastructure projects, creating 546 facilities and more than 9,500 residential beds, with additional outpatient capacity and tribal investments. Finally, DHCS outlined a proposed 988 trailer bill to create a statewide designation process for 988 centers and mobile crisis teams, with implementation no earlier than October 1, 2027.

Transcript Highlights:

• So we believe what we have in this budget achieves a balanced budget while also preserving the core elements
• The budget change proposal The budget change proposal is a request for $3.2 million in 2026-27 and $3.1
• So I just want to be, you know, said that very clearly because it's the kind of oversight that this budget
• And the Senate Budget... Yeah, go ahead.
• And the Senate budget—yeah, go ahead.

Summary: The subcommittee first received an informational update on the Governor’s Office of Service and Community Engagement (GoServe), including California Volunteers, the Office of Community Partnerships and Strategic Communications, and the Youth Empowerment Commission. GoServe reported strong participation in College Corps, Youth Service Corps, and Climate Action Corps, along with outreach results from OCPSC and the Trusted Messenger Network. The Department of Finance said the programs remain a priority but noted prior budget reductions, while the LAO said it had no new recommendations. Committee members raised questions about program diversity, geographic reach, administrative costs, and whether the programs duplicate existing volunteer opportunities; one member criticized the programs as costly and duplicative, while another emphasized the value of volunteerism and asked about the men’s service challenge. The item was informational only. The committee then heard an overview of the Board of Equalization’s property tax responsibilities and its first budget proposals since the 2017 reorganization. BOE described its role in county assessment oversight, state-assessed property valuation, and related tax administration. Members asked about BOE’s interaction with counties, property tax reassessments, and local tax notices; BOE explained it mainly works with county assessors and handles technical property tax questions, while local special district charges are generally outside its scope. The committee also considered a BOE proposal to implement SB 293, which would give additional time for certain intergenerational property tax transfer claims after the 2025 wildfires. BOE requested $154,000 for guidance, public materials, and inquiry response work, saying the change is urgent for wildfire-affected families, especially in Altadena. The LAO had no concerns, and the item was held open. BOE also presented an information technology modernization proposal for its state-assessed property program, seeking $3.2 million in 2026-27 and $3.1 million in 2027-28 to replace a 30-year-old mainframe system. BOE said the current system relies heavily on manual data entry and paper processes, creating inefficiencies, cybersecurity risks, and delays, while modernization would free staff for more audits and valuation studies. The LAO supported the need but urged a high bar for new IT projects; Finance said the project met the threshold of necessity. Members generally supported the upgrade but asked about audit gains, revenue impacts, and implementation risks, and the item was held open. Finally, CDTFA gave its department overview and then discussed a proposal to require all delivery network companies, such as Uber Eats and DoorDash, to be treated as marketplace facilitators for sales tax purposes. CDTFA said the current carve-out creates confusion for restaurants and small businesses because some DNCs collect and remit tax while others do not, and the change would improve compliance and shift reporting to larger platforms. Members debated whether the proposal amounts to a tax increase for consumers, with CDTFA and Finance arguing it is a consistency and compliance measure rather than a new tax, while others said it would likely raise consumer costs. The committee also discussed broader CDTFA issues, including local sales tax districts, revenue-sharing agreements, and the growth of special taxing jurisdictions. No votes were taken, and the agenda items were informational or held open.

Transcript Highlights:

• We're talking about budget and money and all this stuff.
• You know, we're talking about budget and money and all this stuff.
• What this stops, this bill stops, is our oversight.
• Because we take our oversight serious. We're there.
• And that's why we've had good work done in the budget.

Bills: SB100

Committee: House House Judiciary

Keywords: burglary, aggravated burglary, dwelling, criminal law, property rights, 996, all

Transcript Highlights:

• Today is procurement Day and it policy and budget subcommittee. This is so exciting.
• That is exactly what occurred within my budget committee.
• So there is oversight in terms of our specific requirements for network capabilities, security.
• committee every year when we have the agency's budget request and the project is late and over budget
• But I am really counting on your input as we craft our committee budget recommendation up to the budget

Transcript Highlights:

• So is, to be clear, what role do you play in oversight?
• So, as commerce, what role do you play in oversight? What role does Commerce play in oversight?
• Some of those houses may come in under budget.
• There is a maximum budget on each and every household.
• Maximum budget on each and every household.

Committee: Senate Community Affairs

Summary: The Committee on Community Affairs met with a quorum and heard two bills, a confirmation, and two agency presentations. SB 48 by Senator Gates would require local governments to allow voluntary accessory dwelling units, preserve homestead exemption for the owner-occupied portion, limit parking restrictions, require 30-day minimum leases, extend density bonuses for military-family housing, and allow reusable tenant screening reports. The bill drew strong support from the Florida Association of Mortgage Professionals and several others, and it was reported favorably on a unanimous roll call. SB 34 by Senator Sharief would expand the Historic Cemetery Program, particularly to help historic African-American cemeteries preserve and maintain themselves by allowing sale of excess vacant land only if proceeds are used for long-term upkeep; it also passed unanimously and was reported favorably. The committee also recommended confirmation of Fox Henderson to the Florida Housing Finance Corporation Board of Directors by unanimous vote. In addition, the Department of Commerce presented on the Community Development Block Grant Disaster Recovery program and Rebuild Florida, describing more than $4.3 billion in HUD disaster recovery funds since 2017, housing repair and replacement efforts that have completed more than 5,200 homes, and infrastructure and mitigation projects across the state. Members asked about average project costs, contractor oversight, corrective actions for deficient work, and clawbacks from a prior vendor; Commerce said it had ended the earlier vendor relationship, imposed about $3.6 million in financial consequences, and now uses stronger oversight and competitive procurement for contractors. The Division of Emergency Management then presented on Elevate Florida, a federal mitigation program that allows homeowners to apply directly for elevation, reconstruction, acquisition, or wind-mitigation projects, with a 75/25 federal-homeowner cost share and no state funds used. Director Kevin Guthrie said the program is intended to reduce repetitive flood losses, keep homeowners in their communities, and serve as a national model; he reported more than 12,000 applications, about 1,500 prioritized for review, 500 on a wait list, and 305 submitted to FEMA for final approval. Members asked about assistance for seniors who cannot meet the 25% match, the wait-list process, contractor selection, and the mix of project types, and Guthrie said contractors were selected through competitive procurement and that most projects are elevations, though some may become reconstructions or acquisitions depending on inspection results. The committee adjourned after the presentations.

Transcript Highlights:

• cap on oversight fees.
• That we are looking at some of the scope of oversight requirements. Yes, we need more oversight.
• That we are looking on some of the scope of oversight requirements. Yes, we need more oversight.
• Yes, we need more oversight.
• This is pure and simple about oversight.

Summary: The Assembly convened after a quorum call, prayer, and Pledge of Allegiance, then moved through a long floor file of bills. Early measures passed with little or no debate, including AB 698 on local transfer taxes and affordable housing analysis, AB 456 on mobile home sales, AB 1129 on reportable infant health conditions, AB 69 on Fair Plan insurance notices and voluntary market searches, AB 357 on expedited student and faculty housing permits, AB 383 on firearms code cleanups, AB 426 on drones interfering with emergency response, AB 825 on energy affordability and transmission financing, and AB 699 on ballot transparency for local tax and bond measures. Most of these bills passed unanimously or with strong bipartisan margins, while AB 825 drew the most extended debate over whether it would lower costs or expand state control of energy infrastructure; it ultimately passed 45-5. The most contentious item was AB 84, which would strengthen oversight of non-classroom-based charter schools and tighten accountability for charter spending and operations. Supporters argued it was needed to stop fraud and misuse of public education dollars, citing major scandals and audit findings, while opponents warned it would harm legitimate charter schools, reduce educational options, and disproportionately affect rural and special-needs students. Several members said they supported the bill only to keep negotiations going, and others urged more targeted or delayed action. After extensive debate and multiple amendments, the Assembly passed AB 84 on a 41-22 vote. The chamber also took up AB 610, a housing bill that would require cities and counties to disclose planned housing restrictions and limit new constraints for three years after housing element approval. The author framed it as a certainty and transparency measure to help address the state’s housing shortage, while noting continued discussions with local governments and housing advocates. The transcript ends with the bill’s presentation and request for an aye vote, with no final vote shown in the excerpt.

Transcript Highlights:

• </c><00:31:07.360><c> and</c> of government providing oversight and of government providing oversight
• When they will conduct oversight.
• When they will conduct oversight.
• When they will conduct oversight.
• When they will conduct oversight.

Keywords: 1187, senate, all