Transcript Highlights:

• We also have 19 non-IT budget change proposals, as well as the budget estimates for the program of WIC
• from last year's budget act.
• We also have 19 non-IT budget change proposals as well as the budget estimates for the program of WIC
• last year's budget act.
• The initial presidential proposed budgets cut the CDC budget in half last year.”

Keywords: 988, house, all

Summary: The Assembly Subcommittee on Health heard an overview of the California Department of Public Health budget and several budget change proposals, including environmental health, healthcare quality, healthy communities, lab sciences, and family health programs. CDPH said its $5.1 billion budget is split between state operations and local assistance, with major estimates showing WIC participation essentially flat but food costs rising due to inflation, and the Genetic Disease Screening Program remaining relatively stable as birth-related caseloads decline slightly. Members and public commenters raised concerns and support around WIC continuity during federal shutdowns, the California Reducing Disparities Project, lead poisoning prevention, school nutrition implementation, prenatal vitamin testing, vector-borne disease work, and the hospital bed capacity registry. Dr. Erica Pond presented the 2026 State of Public Health report, highlighting improvements such as record-low all-cause, cancer, and cardiovascular mortality, an all-time high life expectancy, and the first decline in overdose deaths in 14 years. She also noted continuing problems, including rising behavioral health-related deaths among younger adults, persistent racial disparities in maternal and infant outcomes, and major geographic health gaps. She emphasized the importance of prevention, the Behavioral Health Services Act, and public health preparedness for emergencies, fires, and other environmental threats. Members discussed the need to invest upstream in prevention and to address social drivers of health, environmental hazards, and mental health. In a separate update on California’s response to federal public health actions, CDPH described efforts to preserve vaccine confidence and public health coordination through new partnerships such as the West Coast Health Alliance, the Governor’s Public Health Alliance, and the FACT Coalition. CDPH also explained how it is implementing AB 144 by posting and updating immunization and preventive service recommendations based on evidence and consultation with medical organizations, while declining some federal changes it found unsupported. Members asked about measles outbreaks, vaccine uptake, and how quickly the new initiatives might affect outcomes. The committee also reviewed the AIDS Drug Assistance Program estimate, which CDPH said would decrease because of lower caseloads and the expiration of one-time funds. Public commenters urged reinvestment of ADAP rebate funds into HIV prevention, PrEP, testing, disease intervention staff, and related services. The final and most contentious item was public health information technology systems: CDPH said Sapphire and CalReady are funded, but CalConnect, CARE, and the vaccine management system are not proposed for funding while the administration evaluates utilization and costs. Members and local health officials strongly opposed defunding the systems, arguing they are essential for disease investigation, vaccination tracking, outbreak response, and avoiding a return to manual spreadsheets and phone calls. The hearing ended without votes or formal action.

Transcript Highlights:

• And these are final adjustments to either the recurring budget or the non-recurring budget.
• They've already raised the rates outside of the budget process. I'm a bit confused, Mr. Chair.
• They've already raised the rates outside of the budget process, and so part of this extra funding is
• I mean, you increased their budget last year.
• We will not concur on the budget, and the work to finalize the budget depends upon answering the questions

Keywords: 996, all

Transcript Highlights:

• And yet, in the current budget, In the current budget proposal, which came out in January, that commitment
• disappears, along with 18% of my county's budget.
• This isn't just a budget issue; it's a human one.
• As part of last year's budget, $1.5 million was built into the Government Operations budget to fund activities
• I didn't use my first year on this budget sub.

Summary: The hearing began with a vote-only agenda and then focused first on San Mateo County’s request to restore in-lieu vehicle license fee (VLF) funding. County officials, city leaders, labor representatives, nonprofits, and public safety advocates argued that the loss of roughly $157 million would force major cuts to homelessness services, housing assistance, mental health programs, libraries, parks, fire and police staffing, and other local services. They described the current formula as outdated and unfair, tied to school funding and basic-aid dynamics that no longer work for San Mateo County, and urged both an immediate budget restoration and a permanent legislative fix. The Department of Finance said the payments are discretionary, not statutorily required, and noted the administration does not view the expenditure as sustainable in the current fiscal climate. Committee members expressed sympathy, questioned the formula, and said they would keep the issue under consideration; the committee later voted to move the two vote-only items on the agenda. The committee then received an update from the Department of General Services on state property redevelopment, including the Hillcrest DMV site in San Diego, the Fell Street DMV site in San Francisco, and other state-owned properties. DGS explained that Hillcrest is not currently an active project, while the Fell Street project shifted from an integrated DMV-housing plan to a more feasible relocation of the DMV into leased commercial space, with a budget change proposal pending. Members pressed DGS on the slow pace of redevelopment, the potential for housing on state sites, and the costs and feasibility of adaptive reuse. DGS said many state buildings are aging and that adaptive reuse depends heavily on building design, floorplate depth, light, and risk from unknown conditions behind walls. The Government Operations portion then turned to the California Education Learning Lab, which supports intersegmental higher education innovation grants. The Lab asked for permanent restoration of $4 million in ongoing funding and a move of its home agency from the Office of Land Use and Climate Innovation to GovOps, along with technical trailer bill changes. Supporters said the program has funded more than 120 projects reaching thousands of faculty and hundreds of thousands of students, including work on generative AI in higher education. The Legislative Analyst’s Office recommended rejecting the restoration and continuing the wind-down, citing the state’s projected deficit and suggesting the California Education Interagency Council could pursue non-state-funded grant opportunities instead. The committee held the item open. Finally, GovOps presented the new California Education Interagency Council staffing request, seeking four ongoing positions to support the council, with funding already included in last year’s budget. The department said the governor has appointed Debbie Cochran as executive officer and that the remaining positions are being recruited. Finance and LAO had no objections, and the committee began questions about how the council will be staffed and organized.

Transcript Highlights:

• These just move money around from one budget activity to another to realign the DHS budget after the
• are all from the governor's budget bill. are all from the governor's budget bill.
• Um for MA governor's budget bill.
• difficult choices in this year's budget. difficult choices in this year's budget.
• benefit in the budget proposal. benefit in the budget proposal.

Bills: HF2434

Keywords: healthcare, personal care assistance, worker retention, disability services, state funding, 1183, house

Transcript Highlights:

• Into our budget.
• So, we were able to come in under budget.
• Is that correct that their budget that the LFC budget is proposing, Madam Chair? It's Close.
• million is a 49% budget increase.
• It is a much bigger process.

Keywords: 996, all

Transcript Highlights:

• So if I remember correctly back from the pre-budget hearings a couple of weeks ago, on the budget line
• So then their line item within their budget for salaries will be addressed in the balanced budget and
• So if I remember correctly back from the pre-budget hearings a couple of weeks ago, on the budget line
• So then their line item within their budget for salaries will be addressed in the balanced budget and
• We already have an intake process.

Keywords: 1204, all

Transcript Highlights:

• In addition, leveraging funds from the 2025-26 budget, the Chancellor's Office is in the process of awarding
• Looking ahead to the budget year, we are encouraged by the increased— Looking ahead to the budget year
• time, officially for budget projections.
• here and this little budget there.
• changes to the state library budget.

Summary: The subcommittee on Education Finance heard an overview of the governor’s budget proposals and higher education financial aid trends, with a major focus on the Middle Class Scholarship (MCS), Cal Grant spending, and the effects of recent federal student aid changes. The Department of Finance said the budget would fully fund Cal Grant at projected levels and reduce MCS coverage from 35% to 17.5% of unmet need in 2026-27, while the Legislative Analyst’s Office supported considering the reduction as a cost-saving measure given out-year deficits. UC and CSU representatives opposed the cut, saying MCS is important to affordability and debt-free degree goals; they estimated average awards would fall substantially and that campuses do not have funds to backfill the loss. The Student Aid Commission said the proposal would reduce aid but simplify administration, and members questioned how lower awards would affect students, borrowing, and work-study options. No vote was taken, and the issue was held open for possible future action. The committee then discussed federal changes to student loans and Pell Grant policy under H.R. 1, including caps on Parent PLUS loans, elimination of Grad PLUS loans, and new proration rules for federal direct loans based on enrollment intensity. The LAO said these changes would likely push some borrowers into the private market, especially graduate and professional students and some parents of students at private institutions. CSU said the changes would affect thousands of graduate and part-time students and could reduce access by about $97 million in loan availability for part-time borrowers, while UC said the new definitions of professional degrees were too restrictive and would reduce access for nursing, teaching, law, dentistry, and other programs. Community colleges said they use relatively little federal loan aid but are monitoring Workforce Pell. Members raised concerns about workforce impacts, social mobility, and whether the state should consider alternative loan programs or other ways to reduce student costs. This issue was also held open. In the segment financial aid update, the LAO reported Cal Grant spending is projected to rise to about $3.2 billion in 2026-27, driven by more recipients and higher awards tied to UC and CSU tuition increases, while CSAC said FAFSA and CADAA applications are up significantly year over year. CSU, community colleges, and UC described their aid packaging and rising aid totals, with CSU reporting over $5.5 billion in aid to 381,000 students, community colleges reporting over $4.3 billion to more than 920,000 students, and UC reporting $3.17 billion in grant aid to undergraduates. Members asked about Cal Grant reform, application trends, and long-term outcomes; UC and community colleges pointed to alumni and wage dashboards, and the LAO noted the state’s Cradle to Career data effort. The committee then took public comment, including testimony on library funding and other education-related priorities, and concluded by holding the issues open without formal action.

Transcript Highlights:

• c> re<03:05:16.160> uh budget request capital budget re uh budget request capital budget re
• we first did the capital budget request, we have budgeted debt service in our operating budget, Highway
• operating budget.
• governor's budget.
• um capital budget is one of the budget um capital budget projects<04:51:53.600> that<04:51:53.760

Keywords: 928, house, all

Summary: The committee heard a Department of Corrections capital budget presentation on HB 25, focused largely on urgent maintenance and security needs at the New Hampshire State Prison for Men and other DOC facilities. DOC officials described the governor’s proposed priorities: boiler surge and radiator tank replacements, electronic controls and camera upgrades, and replacement of HVAC units using R22 refrigerant. They also outlined additional requested projects totaling $15.4 million, including a body alarm/man-down system at Northern New Hampshire Correctional Facility, steam line and trap repairs, fire alarm replacements, and removal of an underground diesel tank in favor of above-ground storage. DOC testified that many systems are well beyond their expected service life, including 40-year-old boilers, outdated analog cameras, and HVAC equipment using discontinued R22 refrigerant. They said the men’s prison is relying on a leased temporary boiler, has significant steam leaks causing major water loss and reduced boiler efficiency, and is dealing with frequent fire alarm faults and deteriorating wiring. On the body alarm system, they said the vendor no longer supports the equipment and replacement parts are no longer available. On the diesel tank, members questioned whether it could be abandoned in place or whether fuel could be reused; DOC said it had not explored all alternatives and would follow up, while noting the tank is underground and tied into the warehouse system. Members also asked whether some current investments could be reused in the planned new men’s prison. DOC said some items, such as air handlers, might potentially be moved, but most projects are needed to keep the current facility operational and would not be practical to transfer. Questions were also raised about the leased boiler arrangement, the use of the man-down system by staff and visitors, and whether the kitchen project could be converted to a modular unit. DOC said the modular kitchen approach is necessary because the existing kitchen cannot remain fully operational during repairs. The committee then moved to lapse extensions, and DOC identified several projects no longer needing extensions, including items numbered 64, 65, and 66 in HB 25, with the chair noting those balances would be deleted and that the lapse amount was $550,500.

Transcript Highlights:

• process if that is the plan Mr.
• the formal general fund budget process that will that you're already embarking on we have to pull that
• But my priority today is to make sure through the budget process the special session budget process that
• We cannot wait until May or June or July, and if it's July budget, the regular budget, it's going to
• process.

Keywords: 988, house, all

Transcript Highlights:

• c> add<00:05:09.039> a increase to our base budget to add a increase to our base budget to
• <00:28:24.679> as and maintaining a balanced budget as and maintaining a balanced budget as
• to support the timely existing processes to support the timely processing<00:37:52.720> of<00
• <00:39:39.079> the following improvements to process the following improvements to process
• budget as well.

Keywords: 1183, house

Transcript Highlights:

• Economic Development Budget Subcommittee, we'll come to order.
• in on budget.
• So we'll come in on budget.
• , emergency management process.
• Is there a plan to change some of the process?

Summary: The Economic Development Budget Subcommittee received a lengthy presentation from Kevin Guthrie, Executive Director of the Florida Division of Emergency Management, on disaster costs, recovery operations, sheltering, and major capital projects. He reviewed the 2024 hurricane season impacts from Debby, Helene, and Milton, explaining how FEMA public assistance and state reimbursement work, how cost shares can shift from 75/25 to 90/10 after a federal threshold is reached, and how Florida uses prior storm data and inflation to estimate recovery costs. He also described the state’s faster reimbursement timelines, crediting legislative investments in technology and digital field documentation, and said the division is working to reduce disaster closeout timelines from decades to about seven years. Members asked about debris removal, FEMA de-obligations, local preparedness, and whether regional shelters or co-located emergency operations centers could be used more efficiently. Guthrie said debris assistance is complicated and should generally remain tied to local contracts and planning, though the state will help fiscally constrained communities when needed. He explained de-obligations as FEMA clawing back previously approved funds after later review, and said Florida’s FROC program is helping local governments reduce those risks through standardized documentation, procurement review, and training. He also urged more mandatory emergency-management training for local and state officials and cautioned against weakening the FEMA 50% rule for rebuilding damaged structures. Guthrie provided updates on the new central Florida warehouse in Auburndale and the new State Emergency Operations Center in Tallahassee. He said the warehouse will improve logistics, include cold and ultra-cold storage, and be run by a private vendor with virtual inventory tracking, while the new EOC is designed for Category 5 conditions and expanded partner capacity. He acknowledged budget pressures that reduced the size of the EOC project and said an additional IT request was needed because those costs were not originally included. The meeting ended with praise for FDEM’s work and no votes or formal actions beyond adjournment.

Transcript Highlights:

• We do that because everything we look at, we try to keep it budget neutral.
• We are continuing to implement automated processes so that processes that can or automation.
• Right now, I think we're processing applications.
• Keeping it a flat budget is obviously a plus.
• So on your budgeted full-time positions, you're currently sitting at 31 budgeted but unfilled.

Keywords: 914, all

Transcript Highlights:

• We're going to call the budget section, I guess we're going to call the budget section.
• I mean, you've gotten, been on this budget a long time.
• more to the Commerce budget.
• And we're in the process of hiring a... ...These four out of the five are hired, and we're in the process
• The 2026 number is essentially what was budgeted.

Summary: The committee met as the Regulatory Division budget section and first reviewed the North Dakota Housing Finance Agency’s budget and program update. Legislative Council outlined the agency’s base budget and historical funding, and Housing Finance staff reported on homeownership lending, housing incentive fund (HIF) awards, and homeless grant spending. Agency officials said the five new FTEs approved last session are mostly filled, with one homeless program manager still open. They described strong demand for HIF, noting that September 2025 multifamily requests exceeded $73 million while only $25 million was available, and that single-family and homeless programs are also heavily subscribed. Members discussed the agency’s local loan servicing workload, interest-rate benefits, down payment assistance, and the need to coordinate housing discussions with Commerce and site-preparation efforts. The agency asked that HIF, single-family, and homeless funding be maintained or increased, and committee members emphasized accountability and statewide access for homeless prevention and rapid rehousing funds. The Department of Mineral Resources then presented its budget and agency initiatives. Staff reported that the department is on track financially, that most of the five new reclamation-related FTEs are hired, and that litigation costs tied to oil and gas matters are expected to continue appearing late in the biennium. The director reviewed ongoing modernization and organizational efforts, including the North Star IT project, succession planning, training, and rulemaking for oil and gas and critical minerals. Members asked about longer laterals, spacing, and production trends; the department said operators are increasingly drilling three-, four-, and even an initial five-mile lateral, which is helping keep North Dakota oil production relatively flat even as rig counts ease. The director also discussed oil price volatility tied to Middle East conflict, hedging practices among producers, gas capture remaining around 95%, and the likelihood that current production levels will stay near flat unless prices or geopolitical conditions change significantly. An update on the enhanced oil recovery grant program followed. The Industrial Commission’s grant administrator said the full $25 million appropriation was allocated in the fall to six projects, and because the oil and gas research fund also had carryover and biennial tax revenue, total awards reached about $45.1 million. The projects are expected to run two to four years, with meaningful results not likely until mid-2026 or later. Members questioned whether the public would have access to the research findings and how accountability would be maintained; staff said the grants are reimbursement-based, require regular status reports, and will culminate in public final reports. The committee also heard from the North Dakota Pipeline Authority, which updated members on natural gas transmission projects, especially WBI Energy’s proposed Bakken East pipeline. The authority said the project has advanced through a nonbinding and then binding open season, with WBI now securing survey permissions and moving through regulatory and landowner processes, while other related gas transmission projects near Minot and Epping are also in development.

Transcript Highlights:

• We value our ability to have choice and voice in the process.
• And certainly this is something that raised eyebrows that it was in through the budget process rather
• And certainly this is something that raised eyebrows that it was in through the budget process rather
• I'm still going to process and think about that, but thank you.
• Budget language? Yeah, the budget language drives a big portion of it.

Summary: The committee heard an update on the administration’s Career Education Master Plan and the new California Education Interagency Council. Administration and agency staff described efforts to better connect K-12, higher education, workforce, and data systems, including the California Cradle to Career Data System, e-Transcript California, and a proposed career passport. They emphasized regional coordination with workforce boards and community colleges, and said the new council’s immediate tasks are to hold its first meeting by the end of June, enter into a data-sharing MOU, and complete a strategic plan by the end of November. Members asked about the council’s authority, reporting requirements, and how it would relate to the broader Master Plan for Higher Education; staff said the council will make recommendations but does not have implementation authority. The committee then took up the Governor’s proposed $100 million one-time expansion of dual enrollment grants and related changes to instructional minute requirements. Finance and the Department of Education said the proposal would support middle college, early college, and CCAP programs, add technical assistance, prioritize high-need LEAs, and reduce the minimum instructional day for certain dual enrollment students from 240 to 180 minutes to ease scheduling barriers. The Chancellor’s Office strongly supported the investment, citing access, acceleration, and equity benefits, while the LAO recommended rejecting the funding, arguing the state already provides ongoing support and that the proposal does not address major barriers. Members raised questions about adult learners, A-G alignment, reporting on outcomes and expenditures, rural access, transportation, staffing, and whether the funding would create lasting program capacity. The item was left open after discussion. The committee also considered trailer bill language to align the definition of long-term English learners across data systems. Finance and CDE said the change would simplify identification by defining LTELs as students who have not attained English proficiency within seven years and RTELs as students not proficient within six years, matching the dashboard and research-based timelines. CDE said the current mismatch between dashboard and assessment definitions creates confusion and delays, while some members and advocates worried the change could reduce earlier intervention or should be handled through policy committees rather than the budget process. The committee voted to reject the proposal and refer it to policy, though the administration said it still supports the budget language. Finally, the committee heard a proposal to extend the Supporting Inclusive Practices project by one year, through June 30, 2027. CDE said the project is promising but raised concerns about the contract structure and fiscal management, while Marysville Joint Unified School District testified that SIP had helped expand inclusive preschool and district-wide practices and reduce reliance on more restrictive placements. Members questioned why funds had not been fully encumbered and whether the remaining money should be redirected to areas with greater implementation need. The item was discussed but no final action was described in the excerpt.

Transcript Highlights:

• process process and<00:05:24.520> changing<00:05:24.919> priorities<00:05:25.600> away
• I'm Ona Minge, State Budget Director with Minnesota Management and Budget.
• of the new prepayment review process. of the new prepayment review process.
• Any loss of federal funds resulting from that deferral process is also not reflected in the budget today
• reflected in the budget today. reflected in the budget today.

Bills: HF3425

Keywords: supportive housing, grants, housing assistance, funding, Minnesota Statutes, 1183, house

Transcript Highlights:

• part of the budget which is the budget part of the budget which is the budget is<00:15:55.680>
• budget. Okay. budget. Okay.
• for my budget this year.
• can't increase my budget, budget, and I can't increase my budget, I<00:46:09.040> mean,<00:46
• budget? Both in this case. budget? Both in this case.

Keywords: 928, house, all

Summary: The committee first discussed HB 771, the open enrollment bill, which had returned from the Senate with language clarifying that districts should list both tuition expenses and offsetting revenue estimates from sending districts. The chair and Representative McGuire supported concurring with the Senate changes, while Representative Luno raised broader concerns about the bill’s structure and equity, arguing that tuition based on 80% of the sending district’s average cost could be unfair and could create problems for receiving districts with different cost structures. After a show of hands, the committee voted to concur and send that recommendation to the House floor, with Luno indicating he would speak against it there. The committee then took up SB 9 in executive session. An amendment, 1920H, was offered to clarify that the tuition calculation should use the sending district’s average cost and to support access to CTE programs, including allowing students to take academic courses at the receiving school and, in some cases, attend the nearest CTE center. Supporters said the bill would help more students participate in career and technical education and noted bipartisan sponsorship in the Senate. Opponents argued the amendment would increase district costs, strain property taxpayers, and could reduce CTE participation or create logistical problems. The committee adopted the amendment 10-8, then voted 10-8 to recommend OTPA as amended; Representative Lad was assigned the majority report and Representative Luno the minority ITL report. After closing the SB 9 executive session, the chair reminded members that committee reports were due immediately and announced retained-bill subcommittees. One subcommittee will address adequacy and school funding issues arising from HB 651, HB 772, HB 491, and HB 434, chaired by Representative Spillsbury. Another will address school building aid issues from HB 295 and HB 366, including whether to keep the current formula or revise it, and how to handle renovations, new construction, and lease arrangements.

Transcript Highlights:

• The Pre-K through 12 Budget Subcommittee will come to order. Santa, please call the roll.
• Initial forecasts provide a basis for budgeting and resource allocation.
• Initial forecasts provide a basis for budgeting and resource allocation.
• So we're not in the process currently considering closing school sites.
• What is the process the department currently uses? Do you mean two districts?

Summary: The Pre-K through 12 Budget Subcommittee met to review how Florida’s Education Finance Program (FEFP) works, receive an update from the Department of Education on the October 2024 FTE survey and third FEFP calculation, and hear from three county superintendents about forecasting enrollment and reconciling scholarship students. The chair explained that FEFP is funded by both state and local dollars, is recalculated multiple times during the year, and is now closely tied to school choice policy. Department staff said the third calculation was still being rerun but should be completed soon, and described the forecasting process as collaborative among districts, DOE, and the Education Estimating Conference. Superintendents from Polk, St. Lucie, and Hendry counties said enrollment shifts, especially students moving to Family Empowerment Scholarships, homeschooling, or private schools, make budgeting and staffing difficult. They said districts often must hold back funds to protect against midyear losses, which affects collective bargaining, staffing, transportation, and classroom organization. Several members raised concerns about duplicate counting, transparency, and whether students receiving scholarship funds can also remain in district classrooms. DOE said districts can access scholarship information through a secure portal and that scholarship funding organizations are paid quarterly, with a new process requiring certification and possible future payment adjustments to reduce duplication. The superintendents urged better real-time tracking of students through a statewide ID or student information system and suggested scholarship students should be funded separately from district FEFP calculations. Members also discussed whether more frequent or daily attendance-based calculations would improve accuracy, though some warned that daily attendance could create new problems for high-poverty districts. The committee also briefly discussed categoricals, including mental health and ESE funding, with DOE saying it evaluates programs through studies, reporting requirements, and legislative direction. No votes were taken; the meeting ended with a motion to rise and adjourn.

Transcript Highlights:

• That is not a household budget.
• We have seen local budgets, local government budgets soar.
• Our voters are facing higher Local budgets, local government budgets are soaring.
• We're not telling them how this whole process, the phased-in process, is going to work.
• We're not telling them how this whole process, the phased in process is going to work.

Summary: The Senate took up Committee Substitute for Senate Joint Resolution 2F, a proposed constitutional amendment on property tax reform. The measure would increase the homestead exemption in stages, lower the assessment cap on non-homestead property from 10% to 5%, and limit county and municipal ad valorem tax revenues to specified uses such as public safety, education, infrastructure, natural resources, debt service, employee benefits, and certain administrative costs. Supporters, led by Senator Avila, argued the proposal would provide meaningful property tax relief and push local governments to rein in spending, while opponents warned it would shift costs to fees, reduce local flexibility, and threaten funding for core services. Several amendments were offered and rejected. Senator Sharief proposed an income-based circuit breaker for property tax relief; Senator Smith offered a sunset clause; and Senator Berman proposed revising the ballot statement to better match the amended proposal and remove outdated references. Each amendment failed on recorded votes. During questioning and debate, senators pressed Avila on the ballot language, the effect on local services, whether the legislature could later restrict local spending by statute, and whether renters would benefit. Avila said the ballot language was not his and repeatedly stated he was presenting the governor’s proposal, while also saying local governments would need to prioritize budgets and that future legislatures could address implementation details. After the amendment votes, the joint resolution was read a third time and moved into final debate. Supporters said the proposal would give homeowners relief and force fiscal discipline at the local level. Opponents, including Senators Nathan, Bracey Davis, Smith, Polsky, and Errington, argued the measure was rushed, lacked a completed fiscal analysis or replacement revenue, and could harm police, fire, libraries, parks, housing, and other local services. They also criticized the ballot summary as misleading, especially regarding the staged homestead exemption increase. The transcript ends during debate, before any final vote on the joint resolution itself.

Transcript Highlights:

• We won't be in budget cuts.
• We can process it. We can turn it into the fuel rods.
• At the same time that the Budget Reconciliation Act—the federal Budget Reconciliation Act—is incentivizing
• Because we're making choices on the budget.
• We completed it on time and under budget.

Keywords: 996, all

Transcript Highlights:

• process.
• Comments not related to this item, but an item that has historically been addressed via the budget process
• Over the years, the program has been implemented, refined, and improved through the budget process, and
• So we would suggest that the Legislature and the Governor's office, through the budget process, consider
• It is a competitive application process.

Summary: The Assembly Budget Subcommittee on State Administration heard several budget proposals from CDTFA, the Board of Equalization, and the Franchise Tax Board. The first panel focused on cannabis, hemp, flavored tobacco, and related enforcement. CDTFA requested ongoing funding to implement cannabis tax changes, enforce the new intoxicating hemp restrictions and flavored tobacco seizure authority, and continue compliance work. The department said it is targeting illicit product, protecting licensed businesses, and using referrals from the public and lawmakers to focus inspections. The LAO supported some of the proposals but urged the Legislature to treat them as part of a longer-term enforcement strategy and raised concerns about the use of General Fund support for cannabis enforcement. Public testimony on the cannabis item largely supported stronger enforcement and funding for the legal market. The committee also heard CDTFA’s request to reappropriate funds for an upgrade to the CROS tax collection system, which would improve taxpayer services, security, and software maintenance without adding new money. A separate CDTFA proposal would make all delivery network companies, such as DoorDash and Uber Eats, marketplace facilitators for sales tax purposes. CDTFA said the change would reduce confusion for restaurants and improve compliance, while the LAO questioned whether the proposal functioned more like a tax increase because it would also capture service fees. Members raised affordability concerns, but the proposal was framed by the administration as a parity and compliance measure. The subcommittee then considered a governor’s proposal for a sustainable aviation fuel tax credit. Finance argued the credit would help decarbonize aviation and support in-state production, while the LAO recommended rejection, citing cost, uncertainty about environmental benefits, possible diversion of diesel excise tax revenues from transportation programs, and concerns about consistency with voter-approved transportation funding rules. Testimony from airlines, labor unions, airports, and refinery workers strongly supported the credit, emphasizing union jobs, refinery conversions, and emissions reductions, while fuel retailers and some others warned about fiscal risk and higher fuel prices. The chair and some members expressed support for the proposal despite the funding concerns. Finally, the BOE presented an IT modernization project for state-assessed property administration, saying the current system is outdated and manual and that a new system is needed to improve accuracy, cybersecurity, and workflow efficiency, especially with a likely increase in workload from new VoIP assessments. The LAO asked for more justification for the timing, but BOE said the urgency stems from aging systems and growing workload. BOE also requested modest funding to implement SB 293 changes to intergenerational property transfers and wildfire relief guidance, which the LAO did not oppose. The Franchise Tax Board began its presentation on the final phase of its Enterprise Data to Revenue modernization effort, describing the project’s rollout across audit, collections, legal, and filing enforcement workloads and noting it is now in a warranty period.