Transcript Highlights:

• It's our second-largest general fund dollar unit within our state budget, about $3 billion a year in
• We're going to have to use it as a revenue and use restricted agency funds, so you will see the budget
• um because the way to grow the budget um because the way you're<00:26:28.600><c> treating</c><00:26:
• </c> funds so you you will see the budget funds so you you will see the budget increase<00:26:40.279>
• uh to do the uh in section admin budget uh to do the uh in section 10<00:26:50.799><c> to</c><00:26:

Keywords: Meeting Start 00:00:00 Roll Call 00:00:10 HB 2 Discussion 00:01:00 HB 2 Vote 00:04:00 HB 544 Discussion 00:05:05 HB 544 Vote 00:06:15 HB 552 Discussion 00:07:00 HB 552 Vote 00:08:40 HB 605 Discussion 00:09:35 HB 605 Vote 00:11:35 HB 606 Discussion 00:12:10 HB 606 Vote 00:15:40 HB 695 Discussion 00:16:25 HB 695 Vote 00:34:05, 958, all

Summary: The Appropriations and Revenue Committee took up several House bills and committee substitutes. House Bill 2, as amended by Senate Committee Substitute 1, was described by Rep. T.J. Roberts as restoring a tax exemption enacted in 2024 by providing refunds with interest to those improperly taxed and creating a cause of action; the substitute also aligned state filing deadlines for certain flood-disaster counties with the federal November 15 deadline. The committee adopted the substitute and then passed the bill with favorable expression. The committee also adopted a title amendment for House Bill 544, which Rep. Jason Petrie said was part of the state’s flood-relief discussion and would allow the guard cap to be used over the biennium rather than annually, effectively increasing the cap from $50 million per year to $100 million over two years; the measure passed with favorable expression. House Bill 552, handled by Rep. Josh Bray after Rep. Kim King’s absence, was described as simplifying tourist commission appointments. The committee substitute added creation of the Kentucky-Ireland Trade Commission and changed marina licensing agreements by exempting private contractors from the model procurement code. The committee adopted the substitute, approved a title amendment, and passed the bill with favorable expression. House Bill 605, sponsored by Rep. Kim King, clarified which grants qualify for a grant program and allowed cities or counties to apply on behalf of water districts or other entities not directly affiliated with them; Rebecca Hearts of Grant Ready Kentucky said the program had matched $103 million of the $200 million allocation, generating about $469.98 million in total project value. The committee adopted the title amendment and passed the bill with favorable expression. House Bill 606, by Rep. Wade Williams, added a capital-oversight reporting requirement for school district general obligation bonds that had been omitted from prior legislation. The committee substitute also made several budget and program adjustments, including moving Regional Training Center funds, accelerating funding for the Grand Lyric Theater, correcting water funding language, removing Odyssey Inc. language from a treatment-related item, fixing a double appropriation to LifeWorks Transition Academy, clarifying carry-forward language, allowing SRO reimbursements for public and non-public schools, and authorizing an additional $10 million in agency bonds for Western Kentucky University athletic facilities. The committee adopted the substitute, approved a title amendment, and passed the bill with favorable expression. The committee then spent the most time on House Bill 695, a Medicaid-related bill. Rep. Adam Bowling said the bill was intended to stabilize Medicaid, create oversight and advisory mechanisms, and address growth in the program. Cabinet for Health and Family Services Secretary Eric Friedlander and Medicaid CFO Steve Beckle said they were generally supportive of the transparency and reporting changes but flagged risks, including federal compliance concerns, budget growth from changing the drug rebate treatment, administrative costs tied to MCO rebidding and a managed long-term services study, and some data-collection challenges. Representatives from the Kentucky Association of Healthcare Facilities opposed the section calling for a managed long-term care reimbursement study, arguing it would be costly, duplicative, and likely ineffective, and they warned against managed care models for long-term care. Despite the concerns, the committee adopted the committee substitute by voice vote and moved the bill forward with favorable expression.

Transcript Highlights:

• </c><01:21:58.960><c> but</c> committee to talk about our budget but committee to talk about our budget
• The budget for the Uniform Law Commission is probably the smallest budget you will look at in this committee
• </c> as as Kim explained um and uh the budget as as Kim explained um and uh the budget for<01:27:08.800
• From a budget standpoint, we now have 11 Uniform Law Commissioner spots to budget for travel costs instead
• I'm just curious about your budget.

Bills: HF747, HF360

Keywords: corporate governance, shareholder rights, beneficial ownership, defective corporate acts, Minnesota Business Corporation Act, trusts, Uniform Trust Code, probate, estate planning, trust protector, directed trust, investment trust advisor, distribution trust advisor, excluded fiduciary, decanting, power of appointment, revocable trust, irrevocable trust, uneconomic trust, rule against perpetuities

Transcript Highlights:

• The budget request you are considering today is focused on the operating budget for MassDOT and the MBTA
• Our pro forma budget was presented to our board of directors in February, and our deadline for budget
• That's been a hole in our budget.
• And so just to share a bit about how our budget, the budget that the EJ office is... ...to share a bit
• about how our budget, the budget that the EJ office is using right now.

Summary: The Joint Committee on Ways and Means held a hearing at UMass Amherst on Governor Healey’s fiscal year 2027 budget proposal, focusing on energy/environment-related transportation issues and the Massachusetts Department of Transportation. The hearing opened with welcomes from the co-chairs and local legislators, followed by remarks from UMass Amherst Chancellor Javier Reyes, who highlighted the university’s research, sustainability, transportation, and workforce contributions and thanked the administration and legislature for support of public higher education. MassDOT Secretary and MBTA General Manager Phil Eng, along with agency leaders, presented the administration’s transportation budget package. They described a combined funding plan through House 2, a Fair Share supplemental budget, and a Chapter 90 bill, emphasizing investments in MassDOT operations, snow and ice response, regional transit authorities, the MBTA, bridge and pavement repair, housing-related transportation improvements, sustainable aviation fuel, microtransit, and local road programs. Officials also highlighted record highway construction activity, safety initiatives such as work zone speed cameras and pedestrian protections, RMV service and equity improvements, airport and drone technology programs, and MBTA gains in reliability, accessibility, ridership, and service expansion. Committee members asked about Western Massachusetts priorities, especially Chapter 90 funding for rural road mileage, bridge repairs, and the Compass Rail/West-East Rail program. MassDOT officials said pending federal grants were moving forward, with some awards recently obligated and others expected as federal processes advance, and they said Palmer Station remains part of the long-term rail plan. Members also raised the Cape Cod bridges and the need for multi-year Chapter 90 funding. Officials said the Sagamore Bridge procurement would begin soon, with construction targeted for 2027, and reiterated that transportation investments support jobs, local economies, and municipal infrastructure statewide.

Transcript Highlights:

• , not on budget.
• , not on budget.
• that budget.
• that budget.
• that budget.

Keywords: 912, senate, all

Summary: The committee met on February 4, 2025, for decision making on previously heard measures, then later held hearings on additional bills. Early action focused on several measures that were amended and advanced, including SB 161 on state project exemptions from county permitting, which was heavily revised to allow programmatic or project-specific agreements with counties, require public reporting of exempted projects, and create a working group to study broader permitting and construction coordination issues. The committee also advanced SB 635 on energy efficiency with changes shifting survey leadership to the Hawaii State Energy Office, SB 700 on resilience hubs after narrowing it to focus on emergency-service-capable hubs and removing distributed energy language, SB 869 on community outreach boards with a technical amendment, SB 1081 on a legislative budget office by converting it to a feasibility study, SB 711 on gubernatorial appointments with a salary threshold change, SB 405 on neighborhood board agendas with a committee-report note about OIP concerns, SB 381 with privacy issues deferred to Judiciary, SB 2 as a two-year pilot for fruit tree planting in selected districts, SB 239 on disaster preparedness with sheltering revisions, and SB 998 as introduced with a cost estimate for site selection work. Several measures were deferred or not advanced, including SB 615, which was deferred indefinitely, SB 1132, which the chair said would be set aside in favor of another childcare bill, and SB 111, which was not taken up further because of confusion during an earlier hearing. During the later hearing portion, SB 1175 on procurement drew testimony from the State Procurement Office, which supported the bill but corrected its estimated database revision cost from $7,500 to $30,000; the Department of Transportation also appeared, while the General Contractors Association submitted opposition. Committee members questioned whether the past-performance database should include more detailed quality information and whether a one-year post-completion review would be useful, but no amendment was adopted at that time. SB 1587 on retainage received written support from the Subcontractors Association of Hawaii and no opposition in the room. SB 1543 on government accountability, which would require justification for outside consultants and cap consultant spending, drew opposition from the American Council of Engineering Companies of Hawaii, which argued it could slow procurement, reduce flexibility, and worsen delays given existing vacancies and limited in-house expertise. The Public First Law Center supported the related transparency bill discussed in the hearing, arguing it would close a loophole by making contractor-created records used in government functions subject to disclosure under UIPA, while the Attorney General’s office opposed it. The transcript ends with that testimony still underway, and no final vote is shown for the later hearing bills.

Transcript Highlights:

• Uh behavioral administrative budgets.
• Their budgeted determined tax rates.
• </c> cap on the portion of the budget cap on the portion of the budget separately<02:18:59.679><c> from
• </c> separately from the budget as a whole. separately from the budget as a whole. &gt;&gt; Okay.
• </c> meets or does not meet the budget cap. meets or does not meet the budget cap.

Keywords: 1191, senate, all

Transcript Highlights:

• Budget Subcommittee No. 3 on Education Finance in the Assembly.
• Other areas of the state budget and the segments' budget are complicated as well.
• The proposal that I think came out in the 23 report, you know, as we face budget cuts and some budget
• The Governor's budget proposes 29 projects for the Proposition 2 funding, with a budget-year state cost
• The governor's budget approved a budget change proposal for Cal Kids, and it was titled Cal Kids Program

Summary: The committee’s first major discussion focused on higher education facilities across UC, CSU, and the community colleges, with Chair Alvarez framing the issue as a final budget hearing before the May Revise. The LAO presented findings that campuses have grown substantially in buildings and square footage, while classroom and lab utilization remains below legislative standards and deferred maintenance backlogs continue to rise. The LAO also emphasized that the state and segments lack comprehensive data on capital renewal spending and recommended better reporting, clearer funding targets, and long-term planning for renewal and maintenance. UC, CSU, and community college representatives each described large five-year capital plans, aging facilities, seismic and deferred maintenance needs, and the role of student housing, while noting that construction costs are rising faster than inflation. Members questioned the segments about debt service, utilization rates, and how projects are prioritized. UC said its debt service tied to state support is about $665 million annually and described a $30 billion five-year capital financial plan, including housing, medical centers, and building renewal. CSU said it has about $31 billion in five-year needs and more than $8 billion in deferred maintenance, with funding coming from a mix of state-related and one-time sources since the state shifted capital responsibility to CSU. Community colleges said their unmet facilities needs total about $33.5 billion and explained their use of a scoring matrix and FUSION system to rank projects. The chair and members pressed all three systems to better distinguish between projects that are truly shovel-ready and those that are long-term needs, and discussed whether facilities condition data, total cost of ownership, and more standardized metrics should guide future bond proposals. The committee then turned to Proposition 2 and the Governor’s proposed community college capital outlay projects. The Department of Finance said Prop. 2 provides $1.5 billion for community colleges and that the Governor’s budget proposes 29 projects, with two continuing Prop. 51 projects also included. The LAO supported the overall use of the funds but raised concerns about the current 65/35 split between modernization and growth, the unusually large share of gymnasium projects, and some scoring metrics that favor larger campuses and certain regions. Community college officials said the scoring system was developed through participatory governance and would take one to two years to revise, but they supported the funding and agreed to follow up on questions about project categories and the rationale for the weighting. Members also suggested giving more weight to modernization, regional access, and intersegmental or collaborative projects. A final item addressed the CalKids program. The Department of Finance proposed $56,000 ongoing General Fund for three positions, while the LAO recommended approving two positions but rejecting a manager position until the current $7.5 million marketing campaign is evaluated. ScholarShare’s executive director said CalKids has enrolled more than 5 million children, with nearly 600,000 claims and over $45 million distributed, and argued that additional staff and outreach are needed to reach a goal of 1 million claimed scholarships by the end of 2025 and to implement AB 2808. Members asked about marketing effectiveness, data sharing, and eligibility rules, and the program said it is expanding partnerships with Cradle to Career and CSAC. No final vote was taken in the hearing, and the chair indicated the facilities item would be held open.

Transcript Highlights:

• The commission has one program and five budget activities.
• Primarily out of that budget is for salary.
• They are in the Judicial Branch Budget.
• Well, of course we're not managing your overtime budget.
• And you're doing it on a budget that is way too small.

Summary: The committee met to hear fiscal year 2026-2027 legislative budget requests from several justice-related agencies. The Florida Commission on Offender Review requested funding for investigator and revocation staff salary increases to address turnover, plus nonrecurring funds for Wi-Fi, seven vehicles, technology support, and commissioner salary adjustments. The State Courts Administrator presented a broad judicial branch request focused on trial court case-management technology, additional case managers, trust fund authority for child support hearing officers, courthouse furnishings, district court flexibility in staffing, a future courthouse for the Sixth District Court of Appeal, Supreme Court elevator replacement, POM accounting implementation support, judicial security liaison positions tied to the Florida Fusion Center, expanded senior management service authority, and judicial salary adjustments. The Office of the Attorney General outlined pay and operating requests for consumer protection, citizen services, ethics, crime compensation, victim services, vehicle replacement, IT and cybersecurity, lease and operating costs, and PALM-related expenses, while several senators questioned the office about outside counsel contracts, contingency-fee arrangements, transparency, and the use of private law firms. The Department of Corrections made the largest presentation, describing severe staffing shortages, high turnover, rising inmate populations, increased assaults, and heavy overtime use. Secretary Ricky Dixon said the agency’s request was driven by constitutional and public safety needs and included funding for operations, security equipment, inflationary costs, vehicle replacement, offender information system modernization, technology restoration, inmate health services, drug and food cost increases, staffing pilots, maintenance, security infrastructure, Florida PALM, recruitment and retention, and $56 million for new correctional housing units. Members asked about inmate labor, prison safety, overtime, vehicle breakdowns, and whether more National Guard support was needed; Dixon said the agency needed more staffing and pay competitiveness rather than a long-term military presence. A correctional officers’ union representative also urged support for pay raises, citing low pay and staffing concerns. No votes were taken on the budget requests. The chair allowed extended questioning, especially for the Department of Corrections, but noted time constraints and asked agencies to return in a later committee meeting, including FDLE, which was deferred because of a House site visit.

Transcript Highlights:

• That's become a significant, a growing, uh, part of the total budget.
• And this is another chart that illustrates the exposure within the state budget to federal uh uh budget
• increase, a recurring budget spend.
• Royalties go to the education, um, budget.
• Are you doing some out your projections, uh, regarding the budget?

Transcript Highlights:

• see budget deficits in upcoming years.
• see budget deficits in upcoming years.
• So before you today are two budget proposals.
• Madam Chair, this budget item proposes $5 million... ...and Strategic Communications.
• So specifically, the budget change proposal... Over a multi-year period.

Summary: The subcommittee held an informational budget hearing covering several GovOps, CDT, CPPA, and DGS items. GovOps reported that most deliverables under the Governor’s generative AI executive order have been completed, including guidelines, procurement tools, community-impact guidance, and a new project delivery lifecycle for Gen AI projects; one workforce-related deliverable remains. Members and public commenters raised concerns about privacy, labor impacts, and how the state will explain and oversee Gen AI use. The committee also heard a proposal to create a California Education Interagency Council with $5 million ongoing and 16 positions to coordinate workforce and education systems; LAO questioned duplication and recommended limited-term funding, while supporters said a neutral convening body is needed to improve coordination and student outcomes. GoServe presented the College Corps budget proposals, describing the program as a paid service and career-development opportunity for undergraduate students that helps reduce college costs while supporting communities through tutoring, food insecurity work, climate and disaster response, and other service. The administration sought one-time and ongoing funding to expand the program to more campuses and students, while LAO objected to the high administrative costs and recommended rejection. Several students and alumni testified that College Corps provided financial support, professional experience, and career pathways. The committee also heard a $5 million proposal for a Belonging Campaign to address loneliness and social isolation through research, outreach, and local grants; LAO said the proposal lacked clear goals and measures, while supporters said the effort is needed for youth, seniors, and community resilience. The Department of Technology updated the Middle Mile Broadband Initiative, saying construction is underway on the statewide open-access network and the project remains on track for the 2026 deadline, though LAO noted a required business plan had not yet been submitted. The California Privacy Protection Agency presented its Delete Act implementation request for the DROP platform, which will let consumers request deletion of personal information held by data brokers; LAO flagged oversight concerns because CDT is both developing the system and involved in project support. Public commenters from business groups urged caution on CPPA’s rulemakings, warning of compliance costs and job impacts. The Department of General Services then discussed implementation of Proposition 2 school facilities bonds, requesting staffing and administrative funding to manage the new bond program and continue school facility work. Officials said the program can also help districts affected by the January wildfires, including interim site funding and expedited assistance. Finally, DGS requested authority and positions to operate Building 18 for labor-agency tenants relocating from older Capitol Mall space; SEIU Local 1000 criticized the state’s four-day return-to-office policy and said telework has improved productivity and retention. No formal votes were taken; the hearing concluded after public testimony and member questions on each item.

Transcript Highlights:

• c> re</c><03:05:16.160><c> uh</c> 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><c> that</c><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:

• Everybody is focused on the operating budget.
• I really appreciate my opportunity to continue working on the ferry budget.
• We were not able to do that in this budget.
• We were not able to do that in this budget.
• Supplemental budget is not supposed to be so tough.

Summary: The Transportation Committee met on February 25 for executive action on three bills. House Bill 2306, a supplemental transportation appropriations bill for the 2025-27 biennium, was amended and advanced. The committee adopted a technical corrections amendment, a Fey amendment shifting King County Metro electrification funding from the South Annex Base project to the Central Campus Electrification Project, and rejected an Entenman amendment that would have moved $11 million for the 220 Corridor completion project from the 2027-29 biennium into the current biennium. Members discussed ferry vessel planning, maintenance and preservation, State Patrol staffing, and Climate Commitment Act investments before approving the bill 28-0 with one excused. House Bill 2711, dealing with transportation resources and tax changes, was also amended and passed. The committee adopted a technical amendment, rejected an Orcutt amendment that would have restored trade-in deductions for the luxury vehicle and recreational vessel taxes, adopted a Paul amendment temporarily exempting motorhomes from the luxury vehicle tax in late 2026, and adopted a Fey amendment directing interest earned on two transportation accounts to remain in those accounts. The bill’s substitute would repeal the luxury aircraft tax, change treatment of the luxury vehicle and vessel taxes, delay tow truck reimbursement provisions, and create a Preserve Washington Account. The committee approved the bill 27-1, with Representative Orcutt voting no without recommendation. Engrossed Substitute Senate Bill 5203, which would direct WSDOT and Fish and Wildlife to develop an integrated wildlife habitat connectivity strategy and create wildlife corridor and crossings accounts, was amended and passed. The committee adopted Hall’s amendment requiring consultation with landowners, agricultural producers, and community members before construction of wildlife crossings. Supporters said the bill would improve road safety and conservation and help position the state for federal and private funding, while opponents argued it could create expectations for new crossings without identified resources. The bill advanced 16-12, with several members voting no or no without recommendation. The chair then outlined upcoming committee meetings, possible floor deadlines for the budget bills, and noted there would be no caucuses that day.

Transcript Highlights:

• The budget Governor Ferguson signed at the end of that session doesn't really match up with the budget
• Doesn't really even line up with some of the budget priorities he outlines partway through session.
• We're in sad shape for that budget stabilization account. Poor management.
• State, it's the transportation budget.
• So through economic growth, you allow the operating budget to absorb that loss. Guess what?

Summary: House and Senate Republican leaders held a media availability on the second day of the 60-day legislative session, reacting to Governor Ferguson’s State of the State address and outlining their priorities. They said the top issue is affordability, and argued the governor and Democratic majority are responding with more taxes, regulation, and government spending rather than restraint. They criticized the prospect of a state income tax, calling it unconstitutional, politically unpopular, and likely to expand beyond high earners over time. They also said the state should avoid raiding the rainy day fund and instead look for savings through tighter budget management, reduced middle management, and a focus on core services. The leaders also discussed public safety, immigration enforcement, child care oversight, transportation, housing, and the Climate Commitment Act. On immigration, they said law enforcement coordination is essential and criticized mixed messages from state leaders about federal enforcement and sheriffs. On child care, they said allegations of fraud in subsidy programs should be investigated through audits and oversight, and rejected the idea that looking for fraud is offensive to honest providers. They said there is some bipartisan agreement on using Climate Commitment Act revenue for the Working Families Tax Credit, transportation, and wildfire prevention, but argued the tax itself is regressive and should be redirected to better uses. On the budget, Republicans said the current deficit will not be solved by a future income tax and that the state will likely need spending cuts or savings. They said there is some limited agreement with moderate Democrats against further tax increases and against using the rainy day fund as a first step. On housing and transportation, they said the real solutions are permitting reform, changes to the Growth Management Act and energy code, and more stable transportation funding, rather than more state spending on affordable housing or piecemeal fees. No votes were taken, and the event ended as a press availability with questions from reporters.

Transcript Highlights:

• </c> budget pro the way the budget budget pro the way the budget appropriation<00:04:48.960><c> bills
• That grant ended in their budget.
• And if you look by our budget is funded by state general our budget is funded by state general fund.<
• I'm gonna say about $18 million. what we're what's in our budget for what we're what's in our budget
• </c> dollars of our youth services budget. dollars of our youth services budget.

Keywords: Appropriations - Room 216, 28 January, 2026; 8:15 AM, 925, all

Transcript Highlights:

• Well, Senator, I worked with the budget chair.
• To inquire of either budget chair.
• The budget chair and myself worked. Thank you.
• like a resolution than budget language.
• I think we're entering some tough budget times.

Summary: The conference committee spent most of the meeting working through House Bill 2, the education budget, with repeated debate over how to close the remaining gap in the foundation formula. Members discussed fund swaps involving the blind pension fund, capital commission fund, lottery proceeds, state school money, and classroom trust funds, with several senators arguing the committee should fully fund the formula if possible and warning against leaving schools with a shortfall. The committee also reviewed child care subsidies, Parents as Teachers language, school safety and assessment-related items, Title I reallocation language, and a compromise on flexibility percentages for certain education lines. Several members raised concerns about language restricting virtual Parents as Teachers visits and about child care subsidy language tied to enrollment-based payment and prospective payment, while others defended the compromise as a way to balance provider concerns and budget limits. House Bill 3, covering higher education, was also reviewed. The committee largely accepted Senate positions on appropriations, with a compromise on the St. Louis Community College nursing program and a new proposal directing the Department of Higher Education to develop a new funding model by December 1, 2026. That language drew concern from some members, who said the timeline was too aggressive and asked for more flexibility, but supporters said prior work on performance funding justified the deadline. The committee then moved through House Bill 2004, transportation, agreeing to a mix of Senate positions and compromises on items such as safety operations, low-volume roads, port funding, and road improvements, including a larger-than-expected appropriation for Clarendon Road tied to a State Fair relocation plan. House Bill 5, general administration and IT, generated the most controversy over new language directing a plan for state IT modernization and cloud migration; several members objected that it was too prescriptive, resembled a resolution, and could favor a specific vendor, but the chair said the goal was accountability and oversight. The committee left some House Bill 5 items open for further negotiation, then later returned to finalize several dollar amounts and a shorter conference proposal on the IT language. The committee also worked through House Bills 7, 8, and 9, mostly adopting Senate positions with a few compromises. House Bill 7 covered economic development and tourism items, including Main Street, Missouri One Start, broadband, Juneteenth, and the Great American State Fair, with some items set aside for later or moved to other bills. House Bill 8 focused on public safety and veterans’ funding, including school safety apps, fentanyl testing, crime lab workload, DNA testing, veterans’ programs, and Highway Patrol fleet and fuel items; members debated whether to keep fleet and fuel funding separated or rolled together, and several items were set at compromise levels. House Bill 9, covering mental health and corrections, was handled more briefly, with most items following Senate positions and a few compromises, including probation and parole funding and a reduction on one appropriation. The committee then recessed and later resumed with House Bill 2010, beginning work on another budget bill with a mix of Senate, House, and compromise positions on early line items, but the transcript cuts off before that bill is completed.

Transcript Highlights:

• </c> &gt;&gt; It looks to, and I don't do the budget &gt;&gt; It looks to, and I don't do the budget
• They look at their budget.
• Your budget was a little over 1.07. 25. Your budget was a little over 1.07.
• </c> your actual operating budget? your actual operating budget?
• This year's budget looks a lot like last year's budget.

Keywords: Appropriations - Room 409, 22 January, 2026; 1:30 P.M., 925, all

Transcript Highlights:

• Um, the governor's budget further.
• Each department has worked budget.
• </c> in the executive budget recommendation. in the executive budget recommendation.
• our budget for two years.
• our budget for two years.

Keywords: Opening and Roll Call 00:28 Public safety Cabinet 01:09 Juvenile justice MH Facility: 04:30 Department of Corrections Repair and Replacement: 10:29 Department of Criminal Justice Flat Track 19:05 KSP : 27:02 Department of Public Advocacy : 37:35, 958, all

Summary: The subcommittee heard capital project requests from the Justice and Public Safety Cabinet for fiscal years 2026-28. The cabinet described its large statewide footprint and said its facilities face significant deferred maintenance, with the governor’s budget proposing full funding for maintenance pool requests, including an additional $60 million for the Department of Corrections’ maintenance pool and cash funding through investment income. Officials said the projects were based on facility assessments and were presented as necessary public safety investments rather than wish-list items. For the Department of Juvenile Justice, the main requests were $35 million for a high-acuity mental health treatment facility and $45 million each for two new female detention facilities. Officials said the mental health facility would fill a gap for youth needing psychiatric care, while the female facilities were needed to support a regional detention model and address overcrowding; they noted the current female population has grown by 50% since July 2024. Members asked about locations, and staff said they were considering western Kentucky abandoned mine land and available land in Fayette and Jefferson counties, with current female placements in Boyd County and Warren County. For the Department of Corrections, officials requested funding for critical mechanical, electrical, plumbing, roof, and structural repairs, including $15.78 million for Kentucky State Penitentiary utilities infrastructure and additional funding for North Point Training Center projects. They also highlighted two re-entry initiatives: a KCTCS partnership for a re-entry campus at North Point and the East Kentucky Applied Manufacturing Institute at Eastern Kentucky Correctional Complex, both aimed at reducing recidivism through intensive training and job preparation. Members asked about the KCTCS re-entry model, and DOC explained it would be a more immersive, campus-style program than current prison-based vocational classes. The Department of Criminal Justice Training discussed projects at its Richmond campus and the planned Western Kentucky Training Center, including a replacement flat track and campus access road at Richmond and added training features in Madisonville. Officials said the Richmond changes were needed because EKU construction had removed the existing flat track and would affect access, while the Western Kentucky project would expand training capacity and reduce travel for law enforcement agencies. The Kentucky State Police then outlined the final phase of the statewide emergency radio system replacement, estimated at about $17.5 million, and said the system is being built in geographic phases; members asked how long completion would take, and staff estimated roughly four years after funding, assuming no major inflation spikes. No votes were taken, and the meeting remained informational with member questions and staff responses.

Transcript Highlights:

• Senate Budget Subcommittee No. 2 on Resources, Environmental Protection and Energy.
• It includes a Administration over five years, through budget year plus four.
• It isn't just whether we're going to be able to have a balanced budget.
• And last year, in last year's budget, we had $3.5 billion that was included in the budget.
• Senate Budget Subcommittee No. 2 is adjourned.

Summary: The Senate Budget Subcommittee on Resources, Environmental Protection and Energy heard six budget-related items and took no votes, holding all items open for a future hearing. The first item concerned a climate bond expenditure plan for the California Transmission Accelerator Revolving Fund under SB 254. GoBiz, IBank, and the Department of Finance described a request for nearly $26 million and 10 limited-term positions to develop financing strategies and evaluate transmission projects, while the LAO said the proposal was broadly consistent with Prop. 4 but noted that the Legislature may want to provide more direction on program design. Senators questioned how the proposal would lower ratepayer costs, protect state funds, and ensure accountability for billion-dollar transmission projects. The second item covered trailer bill language to redirect funding among demand-side reliability programs. Finance proposed moving $22 million from the DEPA program to DSGS for summer 2026 and using CalSHAPE interest funds for ELRP or an equivalent CPUC program in 2027-28, with CEC and CPUC coordinating the transition. Senators and LAO questioned why CalSHAPE funds should not continue supporting schools, and several members argued DSGS has been more successful and should continue rather than be shifted to ELRP. CEC and CPUC explained that DSGS and ELRP serve different reliability functions and do not address public safety power shutoffs. Public commenters, including school groups and clean energy advocates, split between extending CalSHAPE for school HVAC/plumbing projects and preserving or expanding DSGS. The committee also heard on petroleum market oversight implementation under SBX1-2 and ABX2-1, with the CEC and its Division of Petroleum Market Oversight requesting additional staffing to support inventory monitoring, refinery resupply analysis, and market oversight. Senators pressed for details on investigations, refinery margins, gasoline price spikes, and the transportation fuels transition plan, while staff said the draft plan would be released soon and that DPMO’s work on branded versus unbranded gasoline remains ongoing. Finally, the CPUC presented three additional proposals: implementing AB 1207’s climate credit reforms, studying large-load/data center cost impacts under SB 57, and preparing for regional market participation under AB 825. The LAO repeatedly cautioned that some of these requests may go beyond statutory minimums and urged the Legislature to decide how much policy direction and staffing it wants to provide. Public commenters supported DPMO funding, opposed ending CalSHAPE, and strongly favored continued DSGS funding over a new ELRP structure.

Transcript Highlights:

• Senate Budget Subcommittee Number Two on Resources, Environmental Protection and Energy.
• It isn't just whether we're going to be able to have a balanced budget.
• And last year, in last year's budget, we had $3.5 billion that was included in the budget.
• And last year, in last year's budget, we had $3.5 billion that was included in the budget.
• Senate Budget Subcommittee No. 2 is adjourned. Senate Budget Subcommittee No. 2 is adjourned.

Summary: The Senate Budget Subcommittee No. 2 on Resources, Environmental Protection and Energy heard presentations on six budget-related issues and took no votes; all items were held open for a future hearing. The first item concerned funding for the California Transmission Accelerator Revolving Fund under SB 254 and Proposition 4. GoBiz and IBank requested nearly $26 million over five years and 10 limited-term positions to evaluate and finance eligible transmission projects. The LAO said the proposal was broadly consistent with Prop. 4 but noted many implementation details remain unresolved. Senators questioned how the program would lower ratepayer costs, how funds would be protected, and whether the full requested amount was necessary; the administration said the financing strategy is still being developed and that consultants are needed. The committee then discussed trailer bill language to redirect $22 million in General Fund money from the DEPA program to DSGS for summer 2026, and to use roughly $70 million in CalSHAPE interest for ratepayer relief through ELRP or an equivalent program in 2027-28. CEC and CPUC staff said DSGS and ELRP are reliability tools, not PSPS programs, and explained that DSGS had enrolled over 1,000 MW and was expected to have about $52 million available for 2026. Senators and the LAO raised concerns about ending a successful DSGS program, the complexity of transitioning customers to ELRP, and whether CalSHAPE funds should instead continue school HVAC and plumbing projects. Public commenters largely supported extending CalSHAPE and continuing or expanding DSGS rather than shifting funds to ELRP. The subcommittee also heard on petroleum market oversight under SBX1-2 and ABX2-1. The CEC and its Division of Petroleum Market Oversight requested about $1.67 million and a small permanent staffing increase to implement new inventory, resupply, and market analysis duties. Senators pressed the agencies on gasoline price spikes, refinery maintenance, price gouging, and the status of the transportation fuels transition plan, which staff said would be released in draft form soon. Public testimony supported DPMO’s work and called for continued oversight of gasoline pricing. Finally, the CPUC presented three additional budget proposals: resources to implement AB 1207’s changes to the California climate credit, funding for a study of large electrical loads such as data centers under SB 57, and staffing for AB 825’s regional market participation requirements. The LAO said the AB 1207 request may go beyond the statute and urged the Legislature to decide whether it wants a simpler or more complex climate credit redesign. Senators questioned the cost of the work, the need for ongoing staffing, and how ratepayer interests would be protected. The CPUC said the work is needed to adapt to changing load patterns, electrification, data center growth, and potential regional market participation. Public commenters also supported DPMO funding, CalSHAPE, and DSGS, and some urged the Legislature to keep DSGS at the CEC rather than shift funds to ELRP.

Transcript Highlights:

• Senators are preparing the budget for the 2026-2027 fiscal year.
• </c><00:21:15.240><c> for</c> senators are preparing the budget for senators are preparing the budget
• says the state will end its next budget cycle with a surplus.
• c> services</c> portions of their budgets to services portions of their budgets to services including
• </c> know our job is to balance the budget know our job is to balance the budget and<00:24:39.960><c>

Keywords: 1187, senate, all

Transcript Highlights:

• You have already built into the budget a backfilling of those.
• Going into session and budgeting from that, right?
• And that's the bigger kind of budget worry that I have.
• Our 27 base budget plus expansions is a total of $15 billion. 85% of the Health Care Authority's budget
• You know, as we talk about FTE and agency budget.