Transcript Highlights:

• This bill would streamline the filling of board vacancies while maintaining safeguards against conflicts
• This bill would streamline the filling of board vacancies while maintaining safeguards against conflicts
• Any of you, this is a litigation reduction tool negotiated beforehand, that we're not going to have lawsuits
• And the litigation reduction was really my question? Well, the terms are not negotiable.
• And the litigation reduction was really my question? Well, the terms are not negotiable.

Bills: SB75, SB715, SB776, SB1299, SB1405, SB1968, SB2021, SB2077, SB2148, SB2321, SB2330, SB2411

Keywords: electric generation, reliability, ERCOT, Public Utility Commission, penalties, performance requirements, energy policy, construction contracts, compensatory damages, government delays, contractor, legislation, nonprofit donor privacy, membership lists, supporter confidentiality, volunteer privacy, association rights, public records exemption, Texas Public Information Act, government transparency

Summary: The committee first took up pending business and favorably reported several bills without objection or by recorded vote, including SB 783, SB 1238, SB 1706, SB 1791, SB 458, SB 1644, and SB 1810, with some of them also sent to the local and uncontested calendar. The committee then moved into hearings on additional bills. SB 1968, by Senator Schwertner, would update the Real Estate License Act by repealing subagency, requiring written buyer-agent agreements before showings, and clarifying when a formal buyer representation agreement must be signed. Texas Realtors testified in support, saying the bill modernizes agency rules and increases transparency, while a committee substitute corrected drafting issues. SB 2411, the annual update to the Texas Business Organizations Code, was also laid out and left pending after supportive testimony from the Texas Business Law Foundation and drafting committee representatives. The committee also heard SB 2321, which would codify ERCOT’s current practice of notifying TCEQ when backup generation needs enforcement discretion for grid reliability; Sierra Club and a chamber of commerce witness supported it with suggestions for clearer emissions reporting, and the bill was left pending. SB 2077 would broaden eligibility for the Texas Mutual Insurance Company board by narrowing conflict restrictions tied to insurance-related interests; Texas Mutual supported the change and the bill was left pending. SB 1405, a broadband bill, would align state law with FCC standards and streamline Broadband Development Office processes; it was left pending after supportive testimony. SB 1299, protecting nonprofit donor privacy, drew support from privacy advocates and concerns from one witness about transparency for publicly funded nonprofit operations; it was left pending. The committee then heard SB 776, which would bar government construction contracts from shifting delay damages to contractors when delays are caused solely by the public owner. Contractors, surety representatives, and water infrastructure advocates supported the bill, arguing it would improve fairness and reduce inflated bids, while water utilities and critical infrastructure entities opposed it, warning of more litigation and higher costs; the bill was left pending. Finally, SB 715, which would apply reliability requirements retroactively to all generation resources in ERCOT, drew opposition from renewable and storage groups and support from some critics of renewable subsidies, with witnesses split over whether it would improve reliability or raise costs; testimony was underway when the transcript ended.

Transcript Highlights:

• That reduction is due to a reduction in salaries due to SPB vacancy projections.
• to<00:24:53.960> um That reduction is due to um That reduction is due to um reduction<00:
• reduction in salaries due to SPB vacancy reduction in salaries due to SPB vacancy projections. projections
• in vacancy funding. in vacancy funding.
• over LBR just for a vacancy funding. over LBR just for a vacancy funding.

Keywords: MS Senate Floor - 19 February, 2026; 10:00 AM, 925, all

Summary: The Senate convened with a quorum, received an invocation from Reverend Kenny McGill, and approved dispensing with the reading of the journal, committee reports, and bill titles. The chamber then spent a substantial amount of time introducing guests in the galleries, including local officials, electric cooperative and farm bureau representatives, a doctor of the day, and student groups, with repeated recognition of workers involved in storm recovery and other public service efforts. Senators also offered brief remarks of support for Senator Warren Barnett’s recovery. The main business was the appropriations calendar. Senator Hopkins gave an overview of the budget process and projected FY 2027 general fund figures, noting that the Senate was still early in the process, had only considered Senate-originated bills, and was awaiting House bills such as education and Medicaid. He highlighted major budget pressures and items including university professor pay raises, agricultural unit increases, education enhancement funds, CAPEX projects, TRICARE funding, and a veterans home appropriation. He also noted that some bills were final passage while others contained reverse repealers and would go to conference. The Senate then considered several appropriations bills. Senate Bill 3051, the Department of Finance and Administration budget and related agencies, was explained by Senator DeBar; it included reductions tied to vacancy projections, contractual and nonrecurring funding changes, and reappropriations for America 250, the Capital City Water Project, coronavirus fiscal recovery expenses, and Bureau of Buildings invoices. It was adopted and passed by morning roll call. Senate Bill 3052, the Governor’s Office and Mansion budget, was presented as final action without a reverse repealer, with funding reduced from last year due to the loss of federal GEAR and EANS funds; it also passed by morning roll call. Senate Bill 3053, IHL general support, included a $2,000 professor raise and a $20 million CAPEX item, with a total budget of about $1.673 billion; it passed. Senate Bill 3054, IHL subsidiary programs, was explained as having no dollars over LBR and a total of $87.8 million, with a reverse repealer; after a brief question about the university professor raises, it too was adopted and passed.

Bills: HCR92, HCR46, HCR172, HCR147, HCR112, HCR100, HR84, HR42, HR139, HR104, HR92

Keywords: automated external defibrillator, AED, cardiac arrest, state buildings, health education, public health, lifeguards, first responders, public safety, ocean safety, emergency response, Hawaii, workers' compensation, auditor, procurement audit, compliance, Department of Human Resources Development, transparency, accountability, medical care

Transcript Highlights:

• AND HISTORICAL REVERSION AND DEBT SERVICE REDUCTIONS.
• OR REDUCTION IN WORK STAFF OVER IN CRIMINAL JUSTICE THEN I SEE IN THE SENATE.
• WHEN I LOOK AT LINE 65 I SEE A 39 MILLION REDUCTION IN MAJOR REPAIRS AND RENOVATION ON THE HOUSE SIDE
• THOSE ARE ALL VACANCIES WHICH HAVE BEEN VACANT FOR A LONG TIME.
• WHERE THEY HAVE BEEN WORKING ON FILLING THOSE VACANCIES AS WE GET THE NEW DATA THAT WILL BE ADJUSTED.

Transcript Highlights:

• The LFC recommendation did not include funding for reduction of vacancies, nor would the other line items
• In fiscal year 2026, the agency has 15 FTE permanent positions with three vacancies. vacancies and 20
• does not project vacancy savings in fiscal year 2027.
• We have filled vacancies with that had contributed to that vacancy savings, and we now project that level
• A 57% reduction in suspensions.

Keywords: 996, all

Transcript Highlights:

• The list of reductions in the Health and Human Services budget is long, and even after all the reductions
• <00:31:53.240> to<00:31:53.440> the devastating reductions to the devastating reductions
• <00:32:17.960> to and even after all the reductions to and even after all the reductions to
• Members, the reduction for UNH was from 91 to 66.
• there's some of those empty vacancies there's some of those empty vacancies that<00:34:10.679>

Keywords: 928, house, all

Summary: The House Finance Committee met for final approval of HB 1 and HB 2, with legislative budget staff Michael Kain reviewing the final amendment documents and surplus statements. Kain explained that HB 1474H and HB 1484H incorporated the committee’s prior votes and the Governor’s recommended sections, and he walked through the budget math for the general fund, education trust fund, Highway Fund, and Fish and Game Fund. He said the committee’s proposal remained balanced overall, though the current-year general fund showed a projected deficit that HB 2 would address by allowing a possible rainy day fund transfer if needed. He also noted that the committee’s revenue estimates were below the Governor’s, requiring reductions and adjustments to appropriations and lapse assumptions. Members discussed the rainy day fund provisions, including a section in HB 2 that suspends existing restrictions so a transfer can be made if the deficit materializes. Kain said the committee’s approach differed from the Governor’s because the state was not below the overall revenue plan, and the fiscal committee would retain a role in determining any transfer. He also summarized that the Highway Fund would end with about a $13 million balance and Fish and Game with about $3 million, both without additional general fund support. The committee then adopted two amendments to HB 2 unanimously: Amendment 1473H, a technical cleanup to the Group 2 retirement seven-year rule, and Amendment 1482H, a technical correction to the recreational services language. Amendment 1484H, which incorporated those changes into HB 2, was adopted on a 14-1 vote after minority members objected to the bill’s broader cuts and policy changes, including reductions to state agencies, health and human services, and education-related provisions. The committee also adopted Amendment 1474H to HB 1A on a 14-1 vote after similar debate over budget reductions, vacancies, university funding, and school spending limits. Finally, the committee voted 14-1 to report HB 1A and HB 2 as amended as ought to pass, with the minority voting no and the committee planning a full House presentation the following week.

Transcript Highlights:

• This is a reduction about $8.4 million from last year, but that is due to a reduction in federal
• And then on uh and vacancy funding.
• in special fund authority for vacancy in special fund authority for vacancy funding<00:43:02.960
• These are for vacancy funding. over LBR. These are for vacancy funding.
• <00:52:49.359> The Again, this is vacancy funding. The Again, this is vacancy funding.

Keywords: Appropriations - Room 216, 18 February, 2026; 11:00 AM, 925, all

Summary: The committee began with process instructions about using committee substitutes, identifying bills with reverse repealers, and taking up noncontroversial items in blocks. It then approved Senate Bill 3051, the DFA budget, which included LBR-level funding with a reverse repealer and agency-by-agency allocations for the status of women, DFA, tort claims, state property insurance, BEAM, and Mississippi Home Corporation. Senate Bill 3052, the governor’s support budget, was also approved as a final-action bill without a reverse repealer, with members noting the reduction from the prior year was tied to lower federal funding. The committee then handled the IHL budget bills. Senate Bill 3053, the general support bill, included a 3% across-the-board raise for IHL professors and $20 million for repair and renovation at universities, plus $5 million for UMMC; it passed as a committee substitute with a reverse repealer. Senate Bill 3054, the original IHL-related bill, passed without a committee substitute. Bills 3055 through 3059 were taken up in block and approved, providing 3% increases for A units at Alcorn State and Mississippi State. Senate Bill 3060, student financial aid, added about $7.7 million for scholarship costs, including MESG, MTAG, and Winters-Reed loan repayment, and passed as a committee substitute. The committee also approved the larger IHL budget bill with a reverse repealer and discussed, but did not fund, a UMMC cancer center request at that stage. Subcommittee 3 presented education-related bills. Senate Bill 3062 was approved at LBR with a reverse repealer and included a large transfer from the education enhancement fund. Senate Bill 3063 added $15 million for repair and renovation and $8.11 million for faculty pay raises, and passed as a committee substitute with a reverse repealer. On Senate Bill 3064, the Employment Security Commission budget, members discussed whether the committee substitute included a reverse repealer and noted they might revisit that on the floor if needed; the bill was advanced. Subcommittee 4 then took up Senate Bills 3065, 3066, 3068, and 3069 in block and approved them: Ethics Commission funding increased for salary realignment and a database; Judicial Performance Commission language was tightened to freeze the director’s salary and ensure youth court oversight funds were used solely for that purpose; Tax Appeals Board funding was increased to restore cuts and vacancy funding; and Workers’ Compensation Commission funding rose to cover commissioner salary increases and related language changes. Later, the committee approved Senate Bill 3067 for the Department of Public Safety, which included a reverse repealer, LBR-level funding, additional money for furniture for the new headquarters, and reappropriation language. Senate Bill 3071, the GCRF bill, was approved with a reverse repealer and reappropriation language for prior-year projects. Senate Bill 3072, the Department of Mental Health budget, was approved with a reverse repealer and included $12 million for the Canopy project, prior-year invoice funding, and language tied to mental health-related legislation. Finally, Senate Bills 3073 through 3075 were taken up in block for licensing boards, with increases for the Chiropractic Examiners, Dental Examiners, and Pharmacy boards, including funding for licensing system updates, vacancy funding, and expansion of the pharmacy recovery program.

Transcript Highlights:

• statute requiring movement toward a 15% vacancy rate.
• statute requiring movement toward a 15% vacancy rate.
• That relates back to what we’re doing related to the vacancy rate.
• A higher, well, actually, not likely, there will have to be a higher vacancy rate.
• Of course, anytime in labor you hear reduction in force, it gives members pause.

Summary: The Senate Committee on Rules first took up several governor’s appointments not required to appear, including Rick Simpson to the Commission on Teacher Credentialing and Trinidad Solis, M.D., and Gerald Talbert, M.D., to the Medical Board of California. The committee also approved reference of bills to committees and floor acknowledgments, with roll calls on each item showing unanimous support from members present and the items left open for additional votes before final tallying. The main public business was the confirmation hearing for George Cardona, J.D., for a second term as Chief Trial Counsel of the State Bar of California. Cardona described reforms made since taking office, including new conflict-of-interest and gift rules, stronger investigative requirements, efforts to reduce backlog and improve efficiency, and monitoring of discipline disparities identified in prior studies. Senators questioned him about safeguards after the Girardi matter, the John Eastman discipline case, racial and ethnic disparities in attorney discipline, unauthorized practice of law by notarios, staffing shortages, and the use of AI in filings. Public witnesses from the State Bar, SEIU Local 1000, and others spoke in support. The committee voted 3-0 to advance Cardona’s appointment to the full Senate. The committee then heard Laura Enderton Speed, J.D., for Executive Director of the State Bar. She said her priorities would be restoring public trust, improving the discipline system, addressing the February 2025 bar exam problems, and strengthening fiscal stability and internal controls. Members asked about the State Bar’s structural budget deficit, the remote administration failures in the February exam, safeguards against undisclosed gifts and conflicts, and the status of audits and investigations. Supporters from the State Bar, the civil defense bar, SEIU Local 1000, and a longtime colleague testified in favor. The committee approved her appointment 5-0 to move to the full Senate. At the end of the meeting, members also approved the remaining governor’s appointments and procedural items, and the chair thanked Senator Jones for his service on the committee before adjourning the public portion.

Transcript Highlights:

• So as for the specialists, the administration also is aware of a vacancy, substantial vacancy issue currently
• And you have one vacancy at the moment?
• In terms of the vacancies, Assemblymember Fong, we carry those vacancies and our accuracy has gotten
• Vacancy factors, though, are for the different departments.
• Achieving this larger reduction may prove difficult.

Summary: The committee heard an overview of the May Revision’s Proposition 98 changes for K-12 and community colleges. The Department of Finance said the minimum guarantee rises by $6.4 billion over the Governor’s Budget across the three-year window, with higher guarantees in each year, full payment of the prior settle-up, and larger deposits into the school rainy-day fund. The LAO said the revenue and LCFF updates were reasonable, but urged caution about the settle-up approach and recommended using more of the available funding to protect ongoing programs and build budget resilience. Members focused heavily on the size of the proposed $3.9 billion settle-up, the $10.3 billion reserve deposit, declining K-12 enrollment, and how much of the new funding should be ongoing versus one-time. The committee then reviewed the community colleges portion of the budget. Finance described the May Revision’s higher SCFF COLA, additional funding for enrollment growth, a student support block grant, apprenticeship adjustments, and continued funding for deferred maintenance, Calbright, Common Cloud, and credit for prior learning. The Chancellor’s Office supported the core investments but asked for more funding for enrollment growth, changes to the growth formula, and a COLA for Student Equity and Achievement. The LAO recommended prioritizing the statutory COLA increase, noted that more than half of districts are already above current-year growth targets, and said the new adult learner demonstration project should be rejected because districts already have tools to support similar services. Members also discussed a $52 million current-year apportionment shortfall, which Finance said was discovered too late for the May Revision and would need to be addressed later. Finally, the committee took up the proposed implementation of the federal Workforce Pell program. Finance proposed one-time funding for the California Student Aid Commission and Cradle to Career to build eligibility and data systems, along with trailer bill changes to set up state approval processes. CSAC said the program is promising but highly complex, that California lacks the needed infrastructure, and that the state will need emergency regulations, data linkages, and ongoing funding beyond the one-time proposal. The LAO agreed that some initial funding is needed but warned that the amounts and ongoing costs remain uncertain and that the Legislature should carefully draft the trailer bill language. Members asked about timing, other states’ actions, and how the state would ensure the program is ready for students and institutions.

Transcript Highlights:

• In terms of the vacancy rate, I would have to pull that.
• For our silo, I believe the reductions are our highlights. So let's start with the reductions.
• We spend a lot of time in our meetings asking agencies about their vacancies.
• For some, we had to get creative to find reductions for them.
• Combined with our vacancy reductions, the recurring budget has now been reduced by $57.2 million.

Summary: The State Administration Budget Subcommittee met for budget day, heard agency follow-up questions, and then presented its recommended budget for fiscal year 2025-2026. Chair Lopez opened with remarks about reducing spending, emphasizing vacancy reductions and recurring savings across agencies. The recommendation eliminated 452.5 vacant positions and produced recurring savings of $57.2 million overall, while still funding selected priorities. Notable funded items included $500,000 for a new DBPR website for condominium complaints and document filing, $481.3 million for the MICEF Florida Home Program in DFS, funding for Florida PALM implementation, $330,000 for a Tampa office in the Office of Insurance Regulation, $835,000 for warehouse space for confiscated gambling machines, $821,000 for the Lottery gaming system contract, and major DMS capital and facilities funding. Lopez also criticized DMS leadership and said the secretary’s salary would be held in reserve pending answers on fleet management, remote workers, SUNCOM billing, and other issues. The committee then questioned DBPR Secretary Griffin about condominium records, structural integrity reserve studies, and milestone-inspection compliance. Members focused on how the division tracks condominiums, whether it can identify buildings with three habitable stories, and whether the current filing system can be improved to better capture building height and story count. Griffin said the division relies heavily on self-reporting and complaint-driven checks, but has updated forms to capture whether a condominium has buildings three stories or higher and has received additional submissions. Members also asked about staffing and the Miami-area office; Griffin said DBPR now has two Fort Lauderdale offices and a Doral office, with about 82% of new positions filled. Secretary Davis of the Florida Lottery also testified, defending travel to Paris and other conferences as part of industry engagement, technology research, and best-practice sharing. He said the travel was reimbursed through lottery-related organizations, described the Lottery as an enterprise fund that receives no general tax revenue, and said the agency has remained a top revenue generator nationally. Members questioned Orlando travel reimbursements and dues to the Multi-State Lottery Association, and asked for more information on how increased revenue translates into more Bright Futures scholarships. Davis said he would provide additional details. The subcommittee then unanimously passed two conforming bills. PCB SAB 25-01 removed statutory references to the legacy FLAIR accounting system in preparation for Florida PALM and was reported favorably. PCB SAB 25-02 addressed Capitol Center space after the planned House lease cancellation, declaring the governor, cabinet, and legislature permanent tenants, protecting existing space and parking allocations, giving the legislature first right of refusal on vacant space, and giving legislative leaders control over utilities in their space; it also passed unanimously. The meeting adjourned after the bills were reported favorably.

Transcript Highlights:

• The current vacancy rate is 15%.
• Now, we have a vacancy rate of 15%.
• It was the vacancy savings.
• Let's talk about seven vacancies or five vacancies; pick a number.
• So, that's a reduction of 50% in our testing.

Transcript Highlights:

• to comply with the statute that says we should move towards a 15% vacancy rate.
• You are aware of the vacancy rate and what it means.
• That relates back to what we're doing related to the vacancy rate.
• Actually, not likely, there will have to be a higher vacancy rate.
• Of course, anytime in labor you hear reduction in force, it gives members pause.

Summary: The Senate Committee on Rules established a quorum and first approved several items without required appearances, including the appointments of Rick Simpson to the Commission on Teacher Credentialing and Trinidad Solis, M.D., and Gerald Talbert, M.D., to the Medical Board of California, along with references of bills to committees and floor acknowledgments. The committee then heard testimony on two State Bar of California appointments requiring appearance: George Cardona, J.D., for Chief Trial Counsel, and Laura Enderton Speed, J.D., for Executive Director. Cardona described his first four years as chief trial counsel, emphasizing reforms after the Girardi matter, including stronger conflict-of-interest and gift rules, tighter trust-account investigations, more data tracking, and efforts to reduce case backlogs and discipline disparities. Senators questioned him about the John Eastman disbarment case, the office’s role and jurisdiction, racial and Latino discipline disparities, unauthorized practice of law by notarios, staffing vacancies, and the use of AI in pleadings and internal work. Public witnesses from the State Bar, SEIU Local 1000, and others supported his confirmation, and the committee voted 3-0 to advance his appointment to the full Senate. Enderton Speed said she sought the executive director role to help restore public trust, strengthen discipline and admissions, and address the February 2025 bar exam problems. Senators asked about the State Bar’s budget deficit, hiring freeze, long-term fiscal stability, the bar exam audit and litigation, safeguards against conflicts and gifts, and the decision to move the February exam largely remote before returning to in-person administration for July. Public witnesses also supported her confirmation, citing leadership, accessibility, and a focus on core functions. The committee voted 5-0 to advance her appointment to the full Senate. The meeting ended with remarks honoring Senator Jones on his final day on the committee and a cake presentation before adjournment to executive session.

Transcript Highlights:

• The first is a list of the agency vacancy positions.
• When reductions are made to the vacancy positions, budget committees usually consider vacancies somewhere
• If you turn to the summary tab in the agency vacancy report, you'll see the vacancy rate by agency.
• Are there any questions on the vacancy report? Budgets for next fiscal year.
• Is 286 vacancies? Yes, ma'am. Thank you. Yes, ma'am. Thank you. Thank you.

Summary: The Agriculture and Natural Resources Budget Subcommittee met with a quorum and heard House Bill 1313, an agency bill by Representative Mooney. The bill extends the Resilient Florida Trust Fund within the Department of Environmental Protection and updates the state accounting reference from FLARE to the new POM system. A technical amendment removing the obsolete FLARE account code was adopted without objection, and the bill then passed favorably on a recorded vote with no public testimony or debate. After the bill, the chair reviewed budget process materials for the committee, including agency vacancy reports and three-year reversion reports. She noted that several agencies have relatively low vacancy rates, highlighting the Department of Agriculture and Consumer Services as especially efficient, while DEP’s vacancy rate was higher and a member asked about long-term vacancies there. On reversions, she said DACS had only about a 2% reversion rate over three years, while Citrus averaged about 40%, DEP about 12%, and Fish and Wildlife about 10%. The chair also discussed upcoming budget recommendations and asked members to review the materials and raise questions. She flagged trust fund concerns, especially for Fish and Wildlife, saying recent license fee waivers may reduce revenue supporting its trust fund and could affect funding decisions in the next budget. The meeting ended after brief clarification on the vacancy report and a motion to re-recess.

Transcript Highlights:

• In 2020, CalPERS introduced a system that was called the actuarial equivalent reduction, or AER, for
• receive the entire benefit, including for any unpaid service credit, in exchange for a permanent reduction
• , they may end up paying more than was owed for the credit purchase, given that it's a permanent reduction
• For too long, the Department of Industrial Relations has faced persistent staffing shortages, vacancy
• rate apprenticeship is the model mechanism to address these vacancies and increase enforcement as a

Summary: The Assembly Committee on Public Employment and Retirement heard three bills. SB 939 by Senator Laird, sponsored by CalPERS, would end new enrollment in the actuarial equivalent reduction option for service credit purchases starting in 2028 and require any unpaid balance at retirement to be paid within 90 days. The author said the change would reduce unintended consequences for members, employers, and CalPERS administration. There was no opposition, and the bill was approved on a unanimous vote and sent to Appropriations. SB 1038, also by Senator Laird and sponsored by CSEA, would expand CalPERS audit notification procedures so bargaining units receive notice when an employer is audited and receive relevant member information from final audit reports. Supporters said this would help unions protect members from benefit reductions or repayment demands caused by payroll or compensation errors, citing a Kern High School District audit example. Teamsters, the California Labor Federation, and AFSCME testified in support, with no opposition. The committee passed the bill unanimously and sent it to Appropriations. SB 1227 by Senator Drozdoff/Dorazo (as referenced in the transcript) would require the Department of Industrial Relations to work with unions on apprenticeship pathways into enforcement jobs, such as Cal/OSHA and Labor Commissioner classifications, to address staffing shortages and backlogs. The author and supporters from United Steelworkers, SEIU Local 1000, CSEA, the California Labor Federation, and others argued apprenticeship would create a pipeline of trained workers and improve labor law enforcement. The committee accepted amendments, voted the bill out on a unanimous vote, and re-referred it to the Committee on Labor and Employment.

Transcript Highlights:

• And you have one vacancy at the moment?
• In terms of the vacancies, Assemblymember Fong, we carry those vacancies and our accuracy has gotten
• We have one of those vacancies has been reclassified with CalHR.
• Achieving this larger reduction may prove difficult.
• From the numbers shown in the chart, the reduction would be the 1,800 FTE reduction that was mentioned

Keywords: 988, house, all

Summary: The committee first took up the May Revision update on Proposition 98 and the school rainy-day fund. The Department of Finance said the minimum guarantee rises by $6.4 billion over the Governor’s Budget across the three-year window, with lower average daily attendance projections offsetting some of the revenue gains. Finance also described a reduced $3.9 billion settle-up proposal, increased deposits into the Public School System Stabilization Account, and an ending reserve balance of about $10.3 billion. The LAO said the revenue and LCFF adjustments were reasonable, but urged the Legislature to be cautious about delaying settle-up payments and to consider more budget resiliency, including larger cushions or other tools to protect ongoing programs. Members then questioned the administration and LAO about the size of the settle-up, the rationale for the reserve deposit, declining enrollment, and how lower attendance is creating savings that can be redirected to other school priorities. The LAO said the May Revision’s mix of one-time and ongoing spending was generally reasonable but recommended keeping a strong cushion and considering alternatives such as advance payments or pension-related savings. Questions also focused on how the May Revision’s funding mix affects districts if revenues weaken, and on the treatment of special education, discretionary block grants, and paid family leave costs for LEAs and community colleges. The committee next heard the community colleges portion of the budget. Finance described a higher SCFF COLA, increased apportionment costs, a student support block grant, deferred maintenance, Common Cloud, Calbright, credit for prior learning, and a one-time adult learner demonstration project. The Chancellor’s Office supported the core investments but asked for more funding for enrollment growth, changes to the SCFF growth formula, and a COLA for Student Equity and Achievement. The LAO recommended funding the statutory COLA increase, noted a $52 million current-year apportionment shortfall not yet included in the May Revision, and suggested the Legislature could instead direct some funds to enrollment growth, categorical COLAs, or one-time uses. Members also clarified how COLA and hold-harmless rules apply to different community college districts. Finally, the committee reviewed the proposed state implementation of the federal Workforce Pell program. Finance proposed one-time funding for the Student Aid Commission and Cradle to Career data work, plus trailer bill changes to set up state approval of eligible programs. CSAC said the program is promising but highly complex, with new federal rules just released and significant data, regulatory, and systems work still needed; it said the state will not be ready by July 1 and that ongoing funding will likely be necessary. The LAO agreed that implementation will require careful trailer bill language and noted that ongoing administrative costs remain unresolved. Members asked about other states’ approaches and the practical effect on short-term workforce programs in California.

Transcript Highlights:

• So really since with uh vacancy rates.
• continue to deal with a high vacancy continue to deal with a high vacancy rate<00:53:56.240>
• again because of the ongoing um vacancy again because of the ongoing um vacancy rates<01:02:53.200
• um budgeted positions and vacancy um budgeted positions and vacancy slide.
• <01:48:15.840> because out with the expected reduction because out with the expected reduction

Keywords: 1191, senate, all

Transcript Highlights:

• We're also looking at some eligibility reductions.
• So reduction in that retroactive Medicaid period.
• Chair, what is your current vacancy rate? Mr.
• So we don't have much vacancy. We don't have any vacancies really in the Income Support Division.
• Mexico or reduction in federal funding to New Mexico.

Transcript Highlights:

• and, and historically we've had vacancies and and historically we've had them now being staffed at 99%
• and and historically we've had vacancies and and historically we've had them<00:07:38.080> now
• fills uh in the um in our vacancy fills uh in the um in our corrections<00:08:04.800> facilities.
• We have seen a significant reduction in overtime.
• We have seen a significant reduction in overtime.

Bills: HF3006, HF2130, HF1290

Keywords: Department of Corrections, DOC, corrections budget, supplemental appropriation, deficiency funding, public safety finance, incarceration, prerelease services, community supervision, postrelease services, supervised release, probation, reentry, reentry services, prison reform, body-worn cameras, corrections officer cameras, ARMER radio system, PREA, Prison Rape Elimination Act

Transcript Highlights:

• had a 51% vacancy rate in January of 2023 in those lines of effort, and now we have a 42% vacancy rate
• I think one was the state vacancies, the state position vacancies that had a state cost share.
• I think one was the state vacancies, the state position vacancies that had a state cost share.
• I think one was the state vacancies, the state position vacancies that had a state cost share.
• So why— vacancies the state position vacancies vacancies the state position vacancies that<01:39:08.960

Keywords: 928, house, all

Summary: The committee reviewed the Department of Corrections budget, with the chair initially noting that the overall numbers looked close to fiscal year 2024 spending, except for federal funds. Department officials explained that prior ARPA expenditures and delayed revenue recognition had distorted the comparison, and that the corrected general fund spend was about $169.7 million. Members then focused on whether the budget’s staffing assumptions were realistic, especially the shift from overtime to full-time lines and the use of vacant positions to offset overtime costs. The department said it is leaning on vacancy savings, but would return for additional appropriations if unforeseen staffing problems arise. A major portion of the discussion centered on recruitment, retention, and staffing levels. Officials reported a 42% vacancy rate in enforcement ranks, down from 51% in January 2023, with 28 new officers headed to the next academy and 33 new hires already tracked. They said overtime is more expensive than regular staffing because of benefits and that it takes about 11 months for a new hire to break even. Members also asked about the split between incarcerated and supervised populations; the department said it oversees about 1,970 inmates in facilities and just over 4,000 people in the community, with 77 positions supervising the community population and the inmate population remaining the most expensive area. The committee also discussed how sentencing and statutory changes affect incarceration levels, including misdemeanor/felony thresholds and theft thresholds, with the department agreeing that such changes can significantly affect prison and jail populations. Members asked about education and recidivism, and the department said base education is the most important foundation, followed by vocational training, while noting that many incarcerated men lack a high school diploma. The department also described a $1.3 million reduction in contracted forensic evaluation services, explaining that these evaluations are court-ordered competency assessments and are not statutorily required to be provided by DOC. Finally, members reviewed victim services funding and staffing, including VOCA-supported positions, and the department explained that a new victim witness specialist would help support survivors at parole hearings and safety planning.

Transcript Highlights:

• We do offer a backfill to a reduction to a backfill to the state court facilities. a backfill to a reduction
• Court vacancies.
• It's 50 Superior Court vacancies, 60 if you count the appellate vacancies.
• Superior Court vacancies.
• It's 50 Superior Court vacancies. 60, if you count the appellate vacancies.

Keywords: 988, house, all

Summary: The subcommittee met to review May Revision proposals for several departments and emphasized that no votes would be taken that day. The Legislative Analyst’s Office opened with a warning that the state budget is balanced only through one-time resources and still has structural deficits, recommending that the Legislature avoid new ongoing spending and instead preserve reserves and other solutions. The Judicial Council then presented proposals for language access and interpreter services, appellate court security, a backfill to the state court facilities construction fund, and an extension of the lactation-room mandate; Finance supported the language access item with reporting language and supported keeping the court facilities backfill. Members raised concerns about judicial pay freezes, judge vacancies, and uneven judge allocations across counties, and also asked about the cost and completion of courthouse lactation rooms and remote-hearing infrastructure. The Board of State and Community Corrections items focused on $10 million one-time grants for missing and murdered Indigenous people and for a human trafficking vertical prosecution program. The LAO suggested the Legislature consider whether the Tribal Nations Grant Fund could support the MMIP work, while Finance said it preferred General Fund support and wanted more review before any fund swap. On the human trafficking grant, Finance said the need was clear based on reported cases and California’s share of hotline reports. Members strongly supported MMIP funding and discussed whether ongoing funding would be needed beyond the one-time proposal, while also debating whether BSEC or OES should administer the prosecution grants. The Department of Justice presented antitrust litigation funding, Medi-Cal fraud and elder abuse staffing, organized retail criminal enterprise case completion, and a continuous appropriation for the Victims of Consumer Fraud Restitution Fund. The LAO raised concerns about the Unfair Competition Law Fund’s solvency and recommended rejecting that portion unless DOJ could show the fund could support it without General Fund repayment, and it opposed the continuous appropriation in favor of more legislative oversight. Finance said the fund would remain solvent under current projections and defended the continuous appropriation as necessary to pay victims promptly. Members also clarified that the Medi-Cal fraud unit targets providers, not beneficiaries, and asked about delays in restitution payments. A lengthy portion of the hearing covered CDCR’s May Revision package and the Boston Consulting Group cost-savings effort. CDCR described revised savings from workforce optimization, workers’ compensation, and procurement, but members repeatedly expressed frustration that the promised savings had fallen far short of earlier estimates. The LAO recommended deeper cuts to some parole positions, more detail on proposed eliminations and contract changes, and caution about counting unallocated future savings. CDCR also presented population projections showing continued declines and the LAO again urged the administration to close a prison to reduce ongoing costs. The committee also heard proposals on workers’ compensation, Corcoran honor housing, incarcerated firefighter pay, agricultural food purchasing requirements, menopause care, mental health receiver staffing, resource teams, crisis intervention teams, medical classification staffing, and AI note-taking in electronic health records, with the LAO generally recommending limited-term approvals and reporting requirements while Finance defended ongoing funding and said it was open to additional reporting language.