Transcript Highlights:

• As one of the committees responsible for oversight of the authority and the project, we plan to dive
• They're assuming they're going to stay on budget, and we know that hasn't always happened.
• This is the fourth annual report of the authority I reviewed. exercise its oversight role.
• I want to support this project, but I also don't want it to be adrift and us to have no oversight and
• years ago, and quite frankly almost what this whole state budget is today.

Committee: Senate Transportation

Summary: The Senate Transportation Committee held an informational hearing on the California High-Speed Rail Authority’s 2026 draft business plan, with testimony from the authority, the Legislative Analyst’s Office, and the High-Speed Rail Inspector General. Chair Cortese framed the hearing around the project’s recent changes: a new CEO, revised delivery strategy, loss of federal funds, renewed interest in private financing and value capture, and proposed adjustments to the Merced-to-Bakersfield segment. He also raised concerns about statutory compliance, transparency, and whether the draft plan fully reflects required elements and true costs and timelines. Authority CEO Ian Chaudhry said the project has made substantial construction progress in the Central Valley and is moving toward track installation, with the state’s $1 billion annual cap-and-invest funding providing a stable base. He argued the plan uses design optimization, direct procurement of materials, and revised sequencing to reduce costs and support an early operating segment by about 2032-33. He also promoted broader commercialization of the corridor through real estate, energy, broadband, logistics, and public-private partnerships, saying private sector interest is now real. Several senators pressed him on station locations, tax increment financing, utility relocation authority, permitting delays, transparency, and whether the project can realistically reach Los Angeles and San Francisco on the current timeline and budget. The LAO and Inspector General were more skeptical. LAO analyst Helen Kirstine said the draft plan assumes major scope changes, including a shorter segment, a Merced station outside downtown, more single-tracking, and several statutory changes that have not yet been enacted. She warned that the plan may not comply with recent legislative requirements, that funding may still be insufficient even for the reduced segment, and that borrowing against future cap-and-invest revenues is risky because those revenues are uncertain and volatile. Inspector General Ben Belknap said the draft plan fails to comply with newer statutory requirements, especially regarding the Merced-to-Bakersfield scope, the funding plan, and missing procurement milestone dates. He said the presentation obscures cost increases and schedule delays and limits the Legislature’s ability to compare current estimates with prior reports. Committee members generally supported continued oversight and some form of project delivery reform, but several expressed concern that the plan relies on legislative changes that have not been approved and on private financing that may not materialize. Chaudhry said the authority would address the Inspector General’s findings in the final business plan and continue to pursue federal grants, private capital, and corridor commercialization. No vote was taken at the hearing.

Transcript Highlights:

• As one of the committees responsible for the oversight of the authority and the project, we plan to dive
• So today we'll hear from the authority and our respected oversight partners from the LAO and the Inspector
• Stay on budget, and we know that hasn’t always happened.
• This is the fourth annual report of the authority I reviewed. exercise its oversight role.
• ago, and quite frankly almost what this whole state budget is today.

Summary: The Senate Transportation Committee held an informational hearing on the California High-Speed Rail Authority’s 2026 draft business plan, with testimony from the authority, the Legislative Analyst’s Office, and the High-Speed Rail Inspector General. Chair Cortese framed the hearing around the project’s recent changes: a new CEO, revised delivery strategy, proposed station and scope changes in the Merced-to-Bakersfield segment, the loss of major federal funds, and the authority’s push for private investment and ancillary revenue. He also raised concerns about financing risks, the proposed changes to the initial operating segment, and the Inspector General’s finding that the draft plan may be missing required statutory elements. Authority CEO Ian Chaudhry said the project is now in a more disciplined phase, citing major construction progress in the Central Valley, near-completion of right-of-way and utility work, and plans to begin track and systems procurement. He said the authority expects the Merced-to-Bakersfield segment to be completed around 2032-33, with broader Phase 1 service later, and argued that design optimization, direct procurement, and public-private partnerships could reduce costs and attract private capital. He also described plans for ancillary revenue from real estate, broadband, energy, and logistics, and said the authority is discussing station locations and value-capture tools with local governments rather than locking them in yet. Several senators questioned the legality and practicality of tax increment financing, utility relocation authority, transparency, and whether the project’s revised scope still meets high-speed rail standards and public expectations. The Legislative Analyst’s Office said the draft plan assumes major statutory changes, including changes to station locations and scope, and warned that the plan’s cost and schedule estimates depend on assumptions that may not materialize. LAO said the plan lacks transparency because it does not clearly disclose the assumed station changes, and it questioned whether even the shorter segment can be delivered within existing funding once borrowing costs and other risks are included. The office also noted uncertainty around future greenhouse gas reduction fund revenues and said ancillary revenues are not yet credit-worthy for financing. The Inspector General’s office said the draft business plan does not appear to meet several statutory requirements, including requirements added in AB 377, and reiterated that the final plan must address those omissions. Chaudhry said the authority would respond to the OIG’s findings in the final business plan and committed to resolving the compliance issues before final adoption.

Transcript Highlights:

• So Mayor Mayhan has a homelessness problem and a budget problem, right?
• and he So Mayor Mayhan has a homelessness problem and a budget problem, right?
• because ultimately this is a new revenue stream for cities with budget problems.
• The housing budget trailer bill enacted a couple of weeks ago.
• , municipal budgeting.

Committee: House Local Government

Summary: The committee began with housekeeping and then took up SB 753 by Senator Cortese, a bill to update California’s shopping cart recovery law. The author and supporters from San Jose, the League of California Cities, counties, and water districts argued the bill would let local governments retrieve abandoned carts immediately, return them directly to retailers, and recover documented costs, rather than storing carts for 30 days. Retail groups and grocers opposed the measure, saying carts are stolen property, that the bill could create a new revenue stream for cities, and that retailers should retain a first right of retrieval without added fees. Members debated notice periods, cost caps, and local control, and the author agreed to continue working on amendments. The committee adopted the bill as amended and passed it 6-0. The committee then heard SB 445 by Senator Wiener, which would speed up third-party permits and approvals for high-speed rail projects. The author said the bill was narrowed from an earlier broader transit proposal and now focuses on requiring early engagement, clear rules, and binding arbitration to prevent utilities, cities, and other entities from delaying a state-approved project. Supporters said permitting delays add major costs and can hold projects hostage; opponents from utilities, cities, counties, telecoms, and special districts said they were concerned about impacts on safety, reliability, affordability, and local authority, though many said they were willing to keep working on amendments. The committee sent SB 445 to the Utilities and Energy Committee on an 8-1 vote. Finally, the committee heard SB 9 by Senator Wiener, a narrower housing bill dealing with accessory dwelling units. The bill would require local ADU ordinances to be submitted to HCD for review and would make state standards apply if a local agency fails to submit a compliant ordinance or respond to HCD findings within the required time. Supporters from housing and YIMBY groups said the measure would improve enforcement of state ADU law and prevent local barriers from slowing housing production. There was no opposition testimony, and the committee passed the bill 6-0.

Transcript Highlights:

• That oversight that perform performance measure? You're recognized. Thank you, chair.
• Virtual schools will impact oversight across all Florida districts.
• National research shows that one oversight virtual schools is reduced.
• First oversight.
• Instead, a weakening reporting and oversight taxpayers deserve clarity.

Transcript Highlights:

• And obviously, with our state budget crisis, that is making it worse.
• Budgeting for those costly fuel bills is... Not easy.
• We are in the development phases of the Construction Training Pathway Oversight Committee, a very long
• And we did require there to be members of the Oversight Committee that have lived experience.
• I don't want to leave a budget question poorly answered. It was a generous hit back.

Summary: The work session focused first on Washington’s apprenticeship system, especially building trades programs and support services. Labor and Industries staff explained how registered apprenticeship works in the state, including the role of the Washington State Apprenticeship and Training Council, the requirements for paid on-the-job training and classroom instruction, and the difference between apprenticeship and pre-apprenticeship. Panelists emphasized that apprenticeship is tied to actual jobs and training agents, and that many waitlists reflect a shortage of job openings and employer participation rather than a lack of interest. They also discussed youth apprenticeship, the growth of apprenticeship and pre-apprenticeship programs, and the use of Career Bridge and L&I’s database to help people find programs. Representatives asked whether the state should expand apprenticeship programs and how people can find openings. Speakers said more programs alone would not solve the backlog without more employers signing on as training agents and more apprenticeship utilization on projects. The panel also highlighted the Constructed Career Initiative, a grant-funded navigation and support program that helps people enter and stay in building trades apprenticeships through outreach, case management, and wraparound aid such as transportation, tools, and work clothes. A related nonprofit, Build Up, described similar support services, including prison-based boot and PPE programs and assistance for reentry participants. The panel said these services are especially important because apprentices often face unstable income, housing, food, and transportation barriers. The panel also discussed House Bill 2084 and the new Construction Training Pathway Oversight Committee, which is examining construction training in correctional facilities and how to create clearer pathways from prison-based training to apprenticeship, college, or work. Speakers said the committee is still in its early stages and will report to the legislature. The session ended with committee members thanking the panel and noting the importance of support services and referral networks for apprentices. The meeting then resumed at Renton Technical College, where college leaders and faculty discussed serving non-traditional students. The college reported strong enrollment growth, a median student age of 30, a diverse student body, and high job placement rates, while also noting significant budget cuts and program reductions from the prior year. Health care and early childhood education programs were highlighted, including efforts to expand access through hybrid scheduling, evening and Saturday classes, Spanish-language offerings, and in-person wraparound support for admissions, financial aid, and registration. Faculty said these changes were driven by student data and were aimed at helping working parents, English learners, and other non-traditional students complete credentials and enter family-wage careers.

Transcript Highlights:

• What I have before you today, there's a document that says uh DHS oversight budget and vacancy rate.
• What I have before you today, there's a document that says uh DHS oversight budget and vacancy rate.
• What I have before you today, there's a document that says uh DHS oversight budget and vacancy rate.
• The first is a back of the budget reduction. And so the budget is passed.
• The first is a back of the budget reduction. And so the budget is passed.

Summary: The committee met with DHS Chief Financial Officer Nathan White to receive an update on the department’s budget lapse and vacancy rates. White explained the difference between the “back-of-the-budget” reduction and lapse assumptions, saying DHS is facing a current biennium reduction of about $23 million and estimating roughly a $60 million general fund lapse in state fiscal year 2025, compared with about $13.5 million the prior year. He said DHS’s lapse is driven largely by program utilization, labor market conditions, contract spending, and statutory carry-forwards in areas such as Medicaid and developmental disabilities, which tend to produce a smaller lapse in the first year of the biennium and a larger one in the second year. He also noted that the House and Senate budgets differ on some operating items, including Medicaid rates, with the Senate having struck a House proposal to reduce rates by 3%. Members questioned White about whether DHS ever spends down lapse money on last-minute purchases. He said the department does not engage in that practice, though it does retain some flexibility in its facilities budget for emergencies. He also described the process for transferring funds within and between class lines, including the need for fiscal committee approval above statutory thresholds, and gave examples such as moving funds to cover overtime in the SYSC budget and to ensure Medicaid payments for nursing facilities. White said such transfers are public and transparent and are reviewed by the governor and Executive Council. The committee then discussed DHS staffing. White said the department has a little over 3,200 authorized positions, with a vacancy rate around 14.5%, and that a hiring freeze had been imposed a few months earlier while exempting direct care positions. He said DHS is planning for about a $30 million general fund reduction to personnel, equivalent to just under 400 positions, and is managing postings centrally to stay within budget by July 1. In response to questions about the loss of about $80 million in federal funds, White and Associate Commissioner Patricia Tilly said DHS avoided layoffs by shifting staff into vacant positions, but that the cuts affected community contracts, public health workers, laboratory work, and some IT/data projects. Tilly said roughly 20 positions were affected, most were reassigned, a few staff left voluntarily, and the department has less flexibility going forward if more federal funding ends.

Transcript Highlights:

• Legislative Budget Board, the question was, why was it optional?
• Budgeting is one of the areas, is that correct? Budgeting is one.
• aspects of budgeting are actually provided as part of the training.
• We've cut our operating budgets. We've cut 4% this year.
• It is one of the key positions we decided had to stay in the budget.

Summary: The Senate Committee on Higher Education met with a quorum, adopted its interim rules on a 6-0 vote, and heard opening remarks from members and staff introductions. The chair emphasized higher education’s role in workforce development and noted a Legislative Budget Board survey issue that was resolved after a community college initially did not respond because the survey was marked optional. The committee then focused on monitoring implementation of Senate Bill 37, which governs public higher education boards, curriculum review, faculty senates/councils, training for regents, and the ombudsman office. Testimony from Chancellor Brandon Creighton of Texas Tech, Commissioner Wynn Rosser, UNT Chancellor Michael Williams, and Ombudsman Brandon Simmons described how SB 37 is being implemented. They said boards now have stronger authority, faculty senates are advisory, and institutions are reviewing general education curricula and other programs for rigor, relevance, and workforce value. Rosser said the statewide advisory committee is reviewing the core curriculum and board training requirements are being administered, while Simmons reported the ombudsman office has received 73 complaints, opened two investigations, and expects a third, with many complaints outside its jurisdiction or harassing in nature. Members questioned witnesses about transfer credits, board training content, auditing, conflicts of interest, curriculum decisions, and whether any institutions were missing deadlines. Rosser said non-transferable credits have declined since reporting began under earlier law, and that the most common reason is courses outside degree requirements. Witnesses said they were not aware of institutions missing the SB 37 review deadlines. Senators also raised concerns about an appearance of impropriety in a Texas Tech-related matter and about whether a Dred Scott case should be taught in law school, with Creighton saying the curriculum review process did not prohibit teaching Supreme Court cases and that he would follow up. Later testimony from University of Houston, Texas State, UT, and Texas A&M system officials said their systems had updated policies, abolished prior faculty senates, created compliant advisory councils, and completed or were completing core curriculum reviews and related governance changes.

Transcript Highlights:

• We've got a great framework set up through the oversight mechanisms to ensure that every applicant has
• There's no escalation, so if they're extrapolating, if the Legislative Budget Board... the fiscal note
• There will be people who say that this bill will blow up the budget.
• Last I checked, surpluses do not cause budget deficits.
• Balancing oversight is critical as we navigate these educational policies.

Bills: SB 2

Committees: Senate Education K-16 , Senate Education

Transcript Highlights:

• Subsection 4 gives oversight and regulations. I just had a bill on oversight.
• We did the walk-through on this budget before. I do have Ms. Timmion and Ms.
• However, there are a few changes in the governor's budget as it relates to specific proposals.
• This budget was put together before that, and I just wonder if you have anything to say about the budget
• One clarification... ...is a quarter percent, 25% of the federal budget for MDH, not the total budget

Committee: House Health Finance and Policy

Transcript Highlights:

• If you want to look that up, you can certainly do so in the budget book.
• If you want to look that up, you can certainly do so in the budget book.
• I'm with the AZDCS Oversight Group.
• away or just... ...make one oversight with the best I do.
• So, but we're, we're going on. and take some of those oversights away, or just make one oversight with

Committee: House House Government Committee of Reference

Summary: The special committee on government convened to discuss child welfare reform, with members framing the meeting as a response to Arizona Auditor General findings and broader concerns about the Department of Child Safety (DCS). The chair emphasized that the committee’s goal was to improve accountability, oversight, and child-centered practices rather than assign blame, and said bills advanced from the committee would move to the floor. Roll was taken, and the committee then heard testimony on several bills focused on foster care and DCS operations. HB 2611 was heard first. The bill would require termination of a group foster home employee who tests positive on a drug screen, establish screening and safety requirements for group homes, expand foster youth rights, and include designated advocates on family/service teams. An amendment was adopted that changed the drug-testing language to require removal from child contact pending confirmatory review rather than automatic termination, and to require testing after certain incidents. Supporters, including foster youth and former foster youth, described unsafe conditions in group homes, bullying, drug use by staff, inadequate training, and the need for posted rights, mental health services, and stronger accountability. Some members raised questions about the amendment, drug-testing procedures, backup staffing, and contracting authority, but the amendment passed and HB 2611 was given a do pass recommendation by a 5-1-1 vote. The committee next considered HB 2035, which would add extended family members to the search, notification, and placement process when a child enters custody and create a presumption that placement with relatives or significant adults is in the child’s best interest. Testimony strongly favored kinship placement, with speakers arguing that children do better with familiar caregivers and that current practice often fails to locate or prioritize relatives. Several witnesses described tragic cases, including the death of Zariah Finley Dodd, to argue that repeated placements and congregate care increase risk. Some members questioned whether the bill duplicated existing law and asked for clarification on differences from prior legislation; the sponsor said the bill strengthens existing policy and adds written documentation requirements. HB 2035 was ultimately given a do pass recommendation by a 4-2 vote. Finally, the committee heard HB 4049, which would authorize DCS to employ legal counsel and incur legal expenses, along with an amendment that would require independent representation or review in certain cases involving credible allegations against DCS or its agents. The sponsor and several witnesses argued that the Attorney General’s office has a structural conflict when representing DCS, and that independent counsel would better ensure honesty and accountability in court proceedings. Others cautioned that keeping representation within the Attorney General’s office preserves consistency, oversight, and existing checks and balances. Discussion continued on the structure of legal representation for DCS, but the transcript ends before a final vote on HB 4049 is recorded.

Transcript Highlights:

• Oversight that better ensures that every dollar is spent wisely is critical because...
• Per the analysis, any cost to the IG is minor and absorbable within the IG's budget.
• I ask for your support on this important bill that will improve transparency and oversight.
• The passage of AB 1608 will result in more timely, robust oversight of the California High-Speed Rail
• The passage of AB 1608 will result in more timely, robust oversight of the California High Speed Rail

Committee: House Appropriations

Transcript Highlights:

• Our budgeting process is complex.
• That's a different discussion: is that in our budget, or is that an education budget?
• Senator a this is in this is in budget Senator a this is in this is in our<01:11:21.040><c> budget</
• Child welfare systems are ... independent oversight into how Minnesota independent oversight into how
• </c> its organization as state oversight its organization as state oversight County<01:52:34.960><c>

Committee: Senate Health and Human Services

Transcript Highlights:

• I want to welcome everyone to the State Administration Budget Subcommittee.
• I want your input as we write next year's budget.
• The budget is not actually actual.
• Perhaps two or three percent of your overall base budget.
• Thank you. and then dive into the budget reductions.

Summary: The subcommittee met to review agency vacancy reports and agency-requested budget reductions, with Chair Lopez framing the discussion around stewardship of taxpayer dollars, agency efficiency, and whether long-vacant positions should be cut or repurposed. Members were given vacancy summaries and asked to focus on how agencies are functioning with current staffing, which positions are mission critical, and whether some vacancies reflect market pay issues, re-engineering of work, or true excess capacity. The chair also noted that agency heads had been asked to provide follow-up information on current openings, average vacancy duration, mission-critical roles, and reasons for vacancies. The Department of Revenue was the first major agency reviewed because it had the largest number of vacancies. Its leadership said vacancies had improved from pandemic-era highs due to market pay adjustments, but that some areas—especially general tax and audit—still had long-term openings. The department explained that some positions are intentionally frozen while work is restructured, that it hires above minimum salary in some cases to stay competitive, and that it is using automation and process changes to reduce backlogs. Members raised concerns about vacancies outside Leon County, out-of-state auditor positions, salary compression, and whether the department should provide a list of frozen positions and the salaries actually needed to recruit. The Department of Financial Services said its long vacancies were concentrated in risk management, law enforcement, and the general counsel’s office, where salaries and competition from private employers and other agencies make hiring difficult. DFS said it was using outside vendors in some areas, had reduced vacancies in its general counsel office significantly, and was willing to identify positions that could be cut, including some from treasury and OAT. The Department of Business and Professional Regulation reported progress in lowering vacancies through statewide recruiting, centralized legal hiring, automation in service operations, and leadership changes in alcoholic beverages and tobacco; it said one recommended cut could be achieved by combining two half-time positions. The Florida Lottery reported a low vacancy rate, said all positions were critical, and explained its longer onboarding time due to extensive background checks; members discussed sales reps, incentives, and the agency’s field-office structure. The Office of Financial Regulation said many of its vacancies were already in the hiring pipeline, with recent vacancies tied to promotions, a death, and internal moves, and noted that it often serves as a training ground for federal agencies. The Office of Insurance Regulation, which had a high vacancy rate concentrated in Leon County, said it had been reducing vacancies from a much higher level and was still working through hiring and administrative constraints.

Transcript Highlights:

• Instead, it aligns that oversight with standards already in place elsewhere across our education system
• I am not engaged in any oversight of athletes other than Bible.
• thought we had walked away from the national certifications for teachers and it had to do with the budget
• , I thought we had walked away from the national certifications for teachers and it had to do the budget
• It was a budget. I use a round number of $8 million that was cut to like $4 million.

Committee: Senate Education

Summary: The Senate Education Committee met with enough members present to conduct business and approved the June 17 minutes. It first heard HB 459 with House Amendment 1, which would prohibit the sale of energy drinks on public middle and high school campuses during school hours or school events. The sponsor and Department of Education explained that the bill targets beverages containing caffeine and marketed as energy drinks, not ordinary soft drinks or coffee/tea products. Public testimony from the Medical Society supported the bill on health grounds, while the beverage industry said its companies already voluntarily limit school offerings and that the bill does not reflect current practice. No vote was taken in the transcript. The committee then heard HB 461, a follow-up to prior legislation on New Castle County property reassessment and school tax rates. Senator Cruz said the bill would let New Castle County school districts adjust and reset tax rates to reflect reassessment changes without increasing projected operating revenue, and that it includes a sunset. DSEA supported the measure, saying fair property values are important to public education funding. The committee also heard HB 452, which would require additional background checks and training for DIAA sports officials and strengthen DIAA enforcement procedures. Members questioned how checks would be handled, who would see the results, and who would provide training; the DIAA compliance coordinator said the checks would be maintained through the state process and that associations would verify eligibility. The bill’s sponsor and DIAA said the goal was to align officials with existing child-safety standards. Next, the committee considered HS1 for HB 425, which raises the salary supplement from 6% to 12% for nationally certified school counselors, nurses, and school social workers, and allows DOE to identify additional qualifying positions by regulation. Supporters, including school social workers, nurses, and DSEA, argued the change would improve retention and recognize advanced credentials. Senator Hansen raised concerns that school psychologists were not included; sponsors said a broader study and possible future legislation or budget language would address other nationally certified school-based professionals. The committee then heard HS1 for HB 358 on student elopement notifications, inspired by Ace’s Law, but administrators and the chair raised concerns that the bill may be too prescriptive and difficult to implement in practice, especially when schools may not immediately know a student has left campus. Finally, the committee discussed HB 379 on the comprehensive school discipline improvement program; DOE said the substitute was intended to consolidate prevention and intervention supports and avoid competition for funding, while DASA asked that the bill be paused or tabled. The meeting ended before action on the remaining bill, and HB 443 was deferred to a future executive meeting.

Transcript Highlights:

• No, I have a question, because I do appreciate, you know, when we have such a tight budget, that trying
• That would allow the legislature to plan related to the SCAP budget, and that essentially eliminates
• So that budget is already impacted by our projects.
• The bill has no impact on the state budget.
• ECEAP programs are well regulated, have strong safety standards and practices, and DCYF oversight.

Summary: The committee heard testimony on several House education bills. HB 1796 would allow school districts, under existing debt limits and with voter-approved capital levies, to issue non-voted bonds for certain new construction projects. The sponsor and school district witnesses said it would let districts front-fund projects, speed construction, and reduce inflation-related costs; a member of the public opposed it as bypassing voters. HB 2317 would exempt school-day ECEAP and Head Start programs located in public school or community/technical college buildings from child care licensing. The sponsor and providers said the current licensing process is duplicative, delays services, and creates barriers to expanding early learning; no opposition was heard. The committee also heard HB 2594, which would codify McKinney-Vento homeless student protections in state law, require OSPI planning and reporting, and reinforce district responsibilities for students experiencing homelessness. The sponsor gave personal testimony about experiencing homelessness as a student, and advocates said the bill would improve coordination and accountability at no added cost. For HB 2557, which requires school districts to give parents a copy of special education evaluation reports by the 35th school day and hold the eligibility meeting at least five school days later, the sponsor said it would give families time to review reports; school psychologists and OSPI supported the substitute version, while some advocates asked for shorter timelines and clearer waiver language. After the hearings, the committee moved to executive session and advanced two bills: Substitute HB 2360, allowing schools to maintain and use stock albuterol under specified conditions, and Engrossed Substitute HB 2534, updating requirements for military families’ enrollment, records transfer, and related services. Both bills received due pass recommendations and were sent to Rules, with no recorded opposition in the executive session.

Transcript Highlights:

• And I know it is expensive and I know it will have an impact on the state budget and Medicaid, but in
• the system and are the ones that families call when a provider quits or when a service is cut or a budget
• committee has always been a committee of adults in the room when it came to putting money in the budget
• We support oversight that ensures nursing educators possess necessary qualifications, experience and
• The staff summary says Senate Bill 254 as amended revises regulatory oversight of pre-licensed nursing

Committee: Senate Appropriations Committee on Health and Human Services

Transcript Highlights:

• So it's an advisory commission, yet it has a whole bunch of important oversight roles.
• figured this, my personal, when we do something in the capital, we try to look at it, put it in the budget
• I'm just wondering if it's more the fundraising piece and not the overall budget.
• But what can we do to make sure that there's less bureaucracy and more oversight to help communities?
• Is that a fair assumption—to have better oversight, to see these multiple departments, plus you've got

Bills: SB238 , HJR1 , SM21 , SM22

Committee: Senate House Rules & Order Of Business

Summary: The committee first heard Senate Bill 238, which would rename the governor’s residence advisory commission as a governor’s residence management committee and clarify its duties, membership, and authority over furnishings, maintenance, inventories, and hospitality functions at the governor’s residence. Senator Worth and Secretary Designate Anna Silva said the change was needed to remove ambiguity during the transition to a new administration and to improve transparency around the residence, the General Services Department fund, and the separate Mansion Foundation fundraising role. Several senators questioned whether the bill concentrated too much authority in the governor and whether it could enable a large renovation project without sufficient legislative oversight; supporters said major renovations would still require legislative appropriations. The committee ultimately advanced the Senate Rules Committee substitute for SB 238 on a 5-2 vote. The committee then approved House Joint Resolution 1, which would create bipartisan nominating commissions to vet and recommend university and special school regents to the governor, rather than leaving appointments entirely to the governor’s discretion. Senator Steinborn said the resolution would improve qualifications and reduce conflicts of interest, including by changing the student regent selection process. After brief discussion about party-affiliation restrictions, the resolution received a due pass with no objection. Two memorials followed. Senate Memorial 21, presented by Senator Stephanics for Senator Bergman, calls for a Department of Health study of overdose prevention tools, including overdose prevention centers and other harm-reduction strategies, in response to New Mexico’s high and rising overdose death rates. Supporters cited rural access challenges and the need to explore all available tools; one senator asked for more accurate county and demographic data in the memorial’s background. The committee gave SM 21 a due pass. Senate Memorial 22, presented by Senator Charlie and the New Mexico Coalition Against Domestic Violence, asks the Legislative Finance Committee to convene a working group to map how domestic-violence funding flows through CYFD and related agencies, with an emphasis on transparency, accountability, and provider input. Witnesses said funding streams are fragmented and sometimes unclear, and senators discussed whether the work should remain within CYFD or be overseen elsewhere. The committee also gave SM 22 a due pass. The chair then announced that the committee would hear SB 264 and SB 261 at its next meeting and recessed.

Transcript Highlights:

• The chair calls Jeb Bell with the Legislative Budget Board. Mr. Bell.
• previous budget cycle as a result of those efforts. Thank you. Thank you for the question.
• Total budget? Our total budget is $65 billion for the biennium.
• Are there any areas in your budget that y'all have cut from last biennium to this biennium?
• No, our baseline budget remains the same. OK. You're asking a lot in your.

Committee: House Appropriations - S/C on Articles VI, VII, & VIII

Transcript Highlights:

• Members, this is the budget.
• Members, this is the budget.
• the health care budget.
• And then lastly, I just want to talk about the budget, not the budget, the vouchers.
• And who won with this budget?

Summary: The House convened with prayer, a moment of silence for former Senator Donnell C. Childers, the Pledge of Allegiance, and recognition of Officer Antonio Richardson as law enforcement officer of the day. A quorum was announced, the journal was approved, and the Speaker said the chamber would take up 11 budget conference reports, with debate and final votes on each report. The first report considered was HB 7031E, the tax package, followed by HB 501E, the state budget appropriations bill. On HB 7031E, Chair Duggan explained that the conference report included a range of tax reductions and tax-related changes, including sales tax holidays, property tax and homestead-related provisions, reductions in certain taxes and fees, and new exemptions or administrative clarifications. He said the package also added items such as sales tax relief for certain university construction projects, a tennis admissions exemption, and changes to agricultural property tax treatment, and that the amendment reduced state and local tax revenues by $272.2 million. Members questioned the bill about the child care tax credit reduction from three years to one, the homestead exemption provision for certain diplomats and foreign service personnel, the absence of gas tax relief and combined reporting, and the inclusion of firearm accessories and tennis tickets in sales tax holidays. After structured debate, the House adopted the conference report and passed HB 7031E by a vote of 88-11. The House then began the conference report on HB 501E, the $114.5 billion budget for fiscal year 2026-2027, which was described as below the prior year’s spending level and leaving more than $14 billion in reserves. Subcommittee chairs outlined major allocations across education, higher education, IT, health care, transportation and economic development, justice, state administration, and agriculture/natural resources. Highlights included increased FEFP funding and veteran teacher raises, full funding for Bright Futures, major IT modernization projects, Medicaid and behavioral health funding, transportation and local infrastructure spending, correctional and law enforcement investments, fire station and emergency response funding, and large environmental and water-quality appropriations. Members asked detailed questions about school voucher fraud oversight, scholarship funding, teacher raises, preeminence funding, ADAP changes, SNAP data tools and error rates, Medicaid rate changes, prison wastewater monitoring, and other budget items, but the transcript ends during the budget questions before final action on HB 501E is shown.

Transcript Highlights:

• Our current fiscal year appropriated budget is about $26.4 million.
• This slide on the department's budget is interesting.
• So it's coming out of the State Land Department's budget for general fund?
• It would come out of our budget. One last question, Mr. Chairman, if I may.
• Frankly, it is the job of this committee to provide oversight.

Summary: The Joint Natural Resources and House Natural Resources, Energy and Water Committees of Reference heard the Arizona Auditor General’s sunset review of the Arizona State Veterinary Medical Examining Board. The audit found the board generally met some licensing requirements, but it did not timely investigate and resolve 49 of 159 complaints in fiscal year 2024, and it did not fully comply with conflict-of-interest disclosure and filing requirements. The Auditor General also identified weaknesses in continuing-education verification and other sunset-factor areas, and the board agreed to implement all 21 recommendations. Board staff said complaint volume has risen sharply since the pandemic, that the board’s process is slower because every case goes through an investigative committee and then the full board, and that it has already corrected some conflict-of-interest issues and is adding tools to improve continuing-education audits. The committee then heard testimony from the board’s executive director and from the Arizona Veterinary Medical Association. The executive director emphasized the board’s public-protection mission, described the shortage of veterinarians and veterinary technicians, and said the board is working to improve efficiency through a new e-licensing system and staff training. Members asked about the shortage of large-animal veterinarians, complaint backlogs, and whether the board could do more to recruit rural practitioners; the board said it lacks direct recruiting authority but supports multiple licensure pathways and loan-assistance efforts. The veterinary association supported the board’s oversight and said it is also working on rural and large-animal workforce issues through partnerships and advocacy. The committee then voted to recommend continuing the board for eight years, until July 1, 2034. The committee next took up the Arizona State Land Department, beginning with the Auditor General’s presentation on the department’s sunset review and prior special audit. The audit found the department had not updated its required five-year disposition plan since 2011, had sold more than 48,000 acres without an active plan, had allowed agricultural rental rates to go unchanged since 2006 despite market increases, and had not consistently inspected mineral-related leases or properly managed reclamation bonds. The Auditor General said these issues created risks of lost revenue, reduced transparency, and public-safety hazards, and recommended 18 corrective actions in the main review plus 34 additional recommendations on other issues; the department agreed to most recommendations but declined to adopt a written policy for commissioner-initiated land sales. Commissioner Robin Sahid said the department is working through audit recommendations, has created a rules team, improved its customer portal, and is pursuing new policies on water use, transportation-basin leases, and disposition planning. Members questioned the department about agricultural leases, groundwater valuation, the Fondomonte leases and reimbursement for improvements, the canceled Coyotes land auction, backlog and processing times, and the use of consultants and administrative funds. The commissioner said the department had over 2,000 applications in queue when she arrived, that it has made progress reducing the backlog, and that it is conducting stakeholder outreach on water-efficiency standards and lease addenda. No final vote on the land department continuation was taken in the portion provided.