Transcript Highlights:

• This budget does take the recisions out of it.
• This budget does take the recisions out of it.
• But if you look up above the removal of one-time expenditures line, this budget contains a lot of budgets
• But if you look up above the removal of one-time expenditures line, this budget contains a lot of budgets
• I can't remember which budget it's in, and within that gigantic conglomerate Health and Welfare budget

Transcript Highlights:

• budget.
• </c> budget proposed operating budget. budget proposed operating budget.
• operating budget.
• It was to have a budget in the budget.
• The default budget is the budget of needs.

Committee: Senate Election Law and Municipal Affairs

Transcript Highlights:

• First budget, his last budget of his tenure as well.
• First budget, his last budget of his tenure as well.
• First budget, his last budget of his tenure as well.
• state budget.
• state budget. transportation and economic development silo with 15% of the state budget.

Summary: The Appropriations Committee first took up SB 7010, which would authorize Roth contributions in state and local deferred compensation plans. Senator Mayfield explained that current law only allows pre-tax contributions, and the bill would let the Department of Financial Services and local governments offer post-tax Roth options. The bill had one support appearance card, no debate, and was reported favorably by roll call vote. The committee then received a lengthy presentation from the Governor’s Office of Policy and Budget on the governor’s recommended “Floridians First” budget, totaling $117.4 billion and $53.2 billion in general revenue. The presentation highlighted reserves, debt paydown, tax relief, and proposed reductions and efficiencies, along with major spending areas in education, health care, public safety, corrections, transportation, and economic development. Key proposals included higher K-12 funding, teacher salary increases, funding for Everglades and water quality projects, emergency preparedness, corrections staffing and facility funding, cybersecurity, law enforcement recruitment bonuses, and affordable housing and infrastructure investments. Members asked extensive questions about property tax reserves, litigation funding, emergency response fund balances and spending, the Alligator Alcatraz detention facility and federal reimbursement, the Second Amendment sales tax holiday, animal abuse hotline funding, Hope Florida, corrections staffing, and teacher pay. A major portion of the discussion focused on the Department of Health’s planned changes to the ADAP HIV medication program, with senators and a public witness expressing concern about access to life-saving medications and possible misuse or redirection of funds. The committee did not take further action on the budget presentation, and the meeting ended after additional comments supporting the budget and the corrections funding, with SB 7010 already approved.

Transcript Highlights:

• We have 21 budget amendments on today's agenda.
• The department has one budget amendment requesting additional budget authority for $14,751,000.
• In front of the commission to hopefully receive the budget authority.
• So why are we just getting this budget amendment now in 2026? Mr.
• within the Medicaid services to individuals budget entity.

Summary: The Legislative Budget Commission considered 21 budget amendments, most of them routine authority adjustments tied to federal grants, Medicaid payment programs, and trust fund realignments. The Department of Education received $14.751 million for a Preschool Development Grant to support early learning system improvements, workforce credentialing and training, IT modernization, and related early childhood certification work. The Department of Veterans Affairs shifted $2.2 million within its trust fund to cover higher nursing home occupancy, replace contract nursing with OPS staff, and meet rising operating costs. The Department of Health moved about $9.1 million to support Disability Determinations, where roughly 140,000 cases were pending or in process, and said the change would help reduce backlog and avoid a deficit. The Agency for Health Care Administration presented multiple amendments for Medicaid-related programs, including $766 million for indirect medical education, $1.9 million for managed care network adequacy audits, $209 million for the Rural Health Transformation Program, and several large supplemental payment programs for hospitals and physicians; members asked about CMS approval delays, provider access, and how rural funds would be distributed. The commission also adopted an amendment realigning KidCare funds, placing a $32.1 million surplus into reserve, though several members objected that the state had not yet implemented the 2023 KidCare expansion and that children remained on a wait list. Another Medicaid amendment placed a $376 million surplus into reserve after updated estimating conference projections. Other agencies also received approvals. FDLE received $16.26 million to buy counter-unmanned aircraft systems equipment such as radar and RF sensors to detect and mitigate drone threats. The Department of Juvenile Justice received $1.6 million for the Florida Scholars Academy and a Social Services Block Grant realignment, with staff confirming corrective action had been taken after prior audit findings about allowable SSBG spending. The Division of Emergency Management received federal pass-through authority for FIFA World Cup security and counter-UAS funds, both controlled by the Miami host committee, and members noted the state had little direct oversight over how those local grants would be used. The Department of Commerce received $148.4 million for Community Development Block Grant Disaster Recovery work, with questions focused on the split between housing, infrastructure, and administrative costs. The Department of State received $408,377 for arts and culture federal grant obligations. All amendments were adopted, generally without objection, after brief questioning and no public testimony.

Transcript Highlights:

• The 2026-27 Governor's Budget does not have any significant budget proposal.
• Similar to the 2025 Budget Act, the 2026 governor's budget allows both... General Fund.
• it was 8% of the state's budget.
• years, and adopt the budget language... ...2025-26 and 2026-27 budget years.
• years, and adopt the budget language. ...2025-26 and 2026-27 budget years.

Transcript Highlights:

• </c> growth in our two largest budget growth in our two largest budget segments<00:03:04.200><c> education
• </c><00:08:05.840><c> and</c> Bia since Minnesota's budget and Bia since Minnesota's budget and economic
• I'm Anna Mingi, State Budget Director with Minnesota Management and Budget.
• </c><00:28:47.840><c> by</c> largest area of the state budget by largest area of the state budget by
• </c> House has recently passed a budget House has recently passed a budget resolution<00:31:31.960><c

Committee: Senate Finance

Transcript Highlights:

• Budget.
• cycle versus the current budget cycle, which... ...budget cycle versus the current budget cycle, which
• been built into their budget.
• It's within, so you can stay within your budget, approved budget. Yes, correct.
• My question is, what is the budgeted amount total? ...budgeted amount total?

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:

• So now we will move into budget format changes.
• So we are here today to present our proposed budget structure change, or the proposed budget format change
• The information, budget decisions, kind of accountability to our budget—that's information that people
• budgets go into effect.
• I work on the operating budget, and so the operating budget is quite immense for people, for lay people

Committee: Joint Legislative Evaluation & Accountability Program

Summary: The committee met with a quorum, approved the June 18, 2025 minutes, and heard four proposed budget format changes. Washington State Parks requested a structural change to separate and better track its Stewardship Services Division, including cultural and natural resources, environmental planning, and Climate Commitment Act investments. DCYF proposed moving direct service functions now housed in program support into the child welfare program so operational costs and direct services would be reported separately; members asked how this would help avoid across-the-board reductions affecting direct services, and the agency said the change would improve transparency and prevent that problem. The Department of Transportation sought to create a new Ferries Program Support sub-program to consolidate four related projects and two existing sub-programs into one administrative/project support structure, while the Department of Veterans Affairs requested only a title change for Program 20 from Field Services to Veteran Services and Counseling and Wellness. The committee voted unanimously to approve all four changes. Kevin Feltis then gave an interim work plan and staffing update for LEAP. He said the office is continuing work on the rewritten capital budget application (BuildSUM), updating the transportation bond model, completing carry-forward levels for the 2027-29 biennium, publishing 2026 legislative budget notes, updating 2025 salary data, and participating in a LegiTech AI pilot for system development within the legislative network. He also noted LEAP’s role in supporting the new Joint Legislative Executive Committee on Budget Transparency and Fiscal Sustainability. Staffing remained steady at 11 FTEs, with no retirements or staffing changes in the past year, though one vacancy may be filled later and two retirements are anticipated over the next four to five years. The committee also discussed updates to the fiscal.wa.gov website. Planned work includes streamlining how budget data is updated when budgets are released, converting more than 100 reports from Microsoft Reporting Services to Power BI because support is ending, and evaluating whether the site’s search tool should be improved or replaced. Senators and representatives raised concerns about the number of clicks needed to reach capital and transportation project maps and about making public-facing budget information easier to find and understand. Staff said the website redesign was based on prior user testing and that they would look at ways to make maps and other top-level information more accessible. Finally, the committee elected new officers under its alternating-chair rule. Representative Gregerson was nominated and elected chair, and Senator King was nominated and elected vice chair. The meeting then adjourned.

Transcript Highlights:

• Same thing with the default budget: if the default budget in some towns is higher than the proposed budget
• default budget.
• Same thing with the default budget: if the default budget in some towns is higher than the proposed budget
• budgets.
• </c><05:07:55.680><c> you</c><05:07:55.798><c> know</c> budget the default budget is you know budget

Committee: House Municipal and County Government

Transcript Highlights:

• budget.
• budget.
• budget.
• budget.
• budget.

Bills: HR159 , HR160 , HR161 , HR162 , HR163 , HR164 , HCR60 , HCR61 , HCR62 , HCR63 , HCR64 , HR153 , HR154 , HR155 , HR156 , HR157 , HR158 , HCR57 , HCR58 , HCR59 , SB124 , SB399 , SB441 , SB447 , SB460 , HCR4 , HCR47 , HB59 , HB74 , HB159 , HB175 , HB330 , HB364 , HB414 , HB458 , HB525 , HB568 , HB628 , HB786 , HB909 , HB1008 , HB1033 , HB1034 , HB1041 , HB1052 , HB1062 , HB1070 , HB1079 , HB1112 , HB1118 , HB1139 , HB1151 , HB1154 , HB1176 , HB1182 , HB1196 , HB1214 , HB1231 , HB1241 , SB244 , HB1 , HB2 , HB3 , HB312 , HB313 , HB383 , HB314 , HCR3 , HB983 , HB1126 , HR1 , HR17 , HCR5 , HB27 , HB71 , HB214 , HB225 , HB241 , HB244 , HB306 , HB345 , HB366 , HB446 , HB511 , HB514 , HB655 , HB730 , HB743 , HB1027 , HB1037 , HB1043 , HB1082 , HB1091 , HB1096 , HB1103 , HB1167 , HB1174 , HB1175 , HB1230 , HB1237 , HB1238 , HB55 , HB385 , HB394 , HB396 , HB406 , HB608 , HB622 , HB676 , HB772 , HB897 , HB1030 , HB1035 , HB1038 , HB1045 , HB1049 , HB1056 , HB1058 , HB1059 , HB1092 , HB1100 , HB1117 , HB1160 , HB1161 , HB1162 , HB1177 , HB1180 , HB1189 , HB1216 , HB1239 , HB1240 , SB162 , SB349 , SB350 , SB382 , SB383 , SB127 , HB51 , HB58 , HB140 , HB750 , HB911 , HB982 , HB1010 , HB151 , HB180 , HB192 , HB193 , HB310 , HB635 , HB690 , HB961 , HB1003 , HB1146 , HB864 , HB977 , HB181 , HB31 , HB664 , HB615 , HB901 , HR20 , HR74 , HB9 , HB284 , HB393 , HB459 , HB577 , HB582 , HB605 , HB614 , HB682 , HB733 , HB773 , HB996 , HB1113 , HB1234 , HB1236

Summary: The House convened with a quorum, opened with prayer and the Pledge of Allegiance, and received Senate messages, including several Senate bills and resolutions that were referred or laid over. The chamber also adopted a series of House resolutions honoring local organizations, commemorations, and community events, and referred one resolution on climate action to Natural Resources. Several Senate bills were read and referred to the appropriate committees, including measures on peer review confidentiality, higher education research security, pre-K program standards, police civil service, and a memorial highway designation. The main floor business was the budget. The House considered House Bill 1, the general appropriations bill, in Committee of the Whole and reviewed major funding levels and committee changes across state government. The bill included significant funding for early childhood education, higher education, TOPS, health care, corrections, public safety, transportation, and other agencies, along with adjustments tied to LASERS debt payoff, Medicaid, MFP, and various one-time or recurring items. Members heard brief questions on higher education funding and DOTD road needs, but no amendments were offered on the floor during the schedule-by-schedule review. HB 1 was reported from Committee of the Whole with amendments and then finally passed by a vote of 104 yeas. The House then took up House Bills 2 and 3, the capital outlay bill and the omnibus bond authorization act, both of which were explained as the financing measures for the capital program. HB 2 emphasized limited member project funding, reallocation of dormant projects, and bundling of projects to move them forward more efficiently; HB 3 authorized the bond sales needed to fund HB 2. Both bills passed unanimously or near-unanimously. The chamber also passed supplemental and fiscal bills including HB 312, HB 313, HB 383, HB 314, HCR 3, HB 983, and HB 1126, covering supplemental appropriations, treasury fund transfers, ancillary funds, hospital assessments, judiciary funding, and legislative expenses. The meeting ended with personal privileges, staff recognition, announcements, and adjournment to Monday at 1:00 p.m.

Transcript Highlights:

• > family</c><00:03:52.879><c> budgets</c> The state's budget and family budgets The state's budget and
• </c><00:04:20.560><c> are</c><00:04:20.799><c> bearing</c> budgets and our state budget are bearing budgets
• </c> budget.
• For the last two budget budget.
• Is fraud accounted in the budget? Should it be accounted in the budget?

Transcript Highlights:

• In addition, in order to make the budget balance, the budget architecture does rely on $20 billion of
• There are options to choose a budget solution, a spending reduction elsewhere in the health budget, for
• EMSA requests $4.3 million General Fund in budget year and $4.4 million General Fund in budget year plus
• budget was a balanced budget.
• So it is correct to say that at the Governor's budget, the budget year was balanced.

Summary: The committee heard opening budget remarks from the Department of Finance and the Legislative Analyst’s Office on the May Revision for Health and Human Services. Finance said the proposal significantly reduces projected out-year operating deficits through a mix of revenue increases and program cost reductions, while the LAO warned that even with booming revenues the state still faces a structural deficit and should prioritize reserves and avoid new ongoing commitments. The chair and members echoed concern about cuts to vulnerable populations, but also noted the need to maintain the overall level of budget solutions and add to reserves. The hearing then moved through a series of CalHHS and HCAI proposals, mostly held open after presentation. CalHHS requested additional legal support to respond to federal H.R. 1-related issues and a net-zero transfer of positions for a shared eligibility/data-sharing platform. Other items included ongoing funding for the 988 Behavioral Health Crisis Service Fund and a request for EMSA to fund maintenance of its enterprise data management system. HCAI presented proposals for hospital fair pricing implementation, the data exchange framework, the all-payer claims database, CalRx insulin development, the diaper access initiative, distressed hospital grants, opioid settlement fund reversion, and the Rural Health Transformation Program. Members questioned funding sources, special fund use, contracting exemptions, timelines, and whether some proposals should be more targeted or supported by alternative funding. A major discussion centered on HCAI’s diaper access initiative and the use of a Public Contract Code exemption to continue contracting for free diapers distributed through hospitals. The chair and some members criticized the optics of the selected vendor and questioned the lack of an income threshold, while HCAI said the program was designed to be universal and administratively simple, with future phase-two direct-to-consumer purchasing to be handled by a different vendor. Another extended exchange focused on distressed hospital funding, where HCAI said the May Revision would provide up to $50 million for hospitals at immediate risk of closure, but members argued the repeated annual need shows a structural problem and asked for broader reforms to hospital payment and care transitions. The final major topic was the Behavioral Health Services Oversight and Accountability Commission’s budget. The Commission opposed the May Revision’s reduction of the Innovation Partnership Fund from $20 million to $10 million and a $6.7 million cut to community advocacy contracts, arguing both are core Proposition 1 tools for statewide innovation and community engagement. Finance responded that the proposal is within Proposition 1’s allowable maximums and that prior unspent appropriations could be redirected if the Legislature wanted to restore the full amount. No votes were taken; items were generally held open for later action.

Transcript Highlights:

• We will also hear a few January budget items related to Prop. 98, the guarantee, and the K-12 budget,
• the 2025-26 budget. ...for the 2024-25 budget and the 2025-26 budget.
• for the 2425 budget and the 2526 budget for the 2425 budget and the 2526 budget while deferrals may
• Budget.
• Budget.

Summary: The Assembly Budget Subcommittee on Education Finance met for its annual Proposition 98 overview, with Chair Alvarez outlining the committee’s focus on K-12 funding, student outcomes, and use of one-time funds. Superintendent Tony Thurmond gave an update on education issues, including wildfire recovery support for affected school communities, ongoing concerns about federal threats to education funding and immigration enforcement, progress on literacy and math, dual-language immersion, educator housing, and support for dual enrollment. Members broadly expressed support for these priorities, while also raising concerns about implementation, funding stability, and the need for schools to remain safe places for students. The committee then reviewed the Governor’s Proposition 98 proposal. The Department of Finance said the 2025-26 Proposition 98 guarantee is projected at $118.9 billion, with higher revenues and TK-related rebenching driving the increase. The LAO said the budget adds about $7.5 billion over two years and discussed the volatility of the guarantee, especially in 2024-25, when changes in revenue could have an outsized effect on school funding. Members questioned the proposed $1.6 billion delayed settle-up payment, the legal basis for delaying it, and the impact of possible federal funding freezes. The LAO presented alternatives such as a reserve deposit or delayed disbursement, while Finance said the proposal is intended to manage uncertainty. Members also raised concerns that ethnic studies implementation was not funded in the January budget, and Finance said the administration was not proposing funding for it. The committee next heard on the Proposition 98 rainy day fund and education deferrals. Finance said the reserve would receive a mandatory deposit of about $1.2 billion in 2024-25 and a discretionary deposit of $376 million in 2025-26, leaving a balance of about $1.5 billion. The LAO supported rebuilding the reserve as a way to manage volatility. On deferrals, Finance described the Governor’s plan to eliminate remaining deferrals by 2025-26, and the LAO said paying them off improves cash flow and budget resilience. Members generally supported eliminating deferrals and rebuilding reserves, though some asked about acting earlier if revenues allow. The committee also reviewed the proposed $1.8 billion student support and professional development block grant; Finance said it would fund professional development, recruitment and retention, and dual enrollment, while the LAO recommended clearer language on local discretion and use for one-time costs. Members were divided, with some supporting flexibility and others warning that one-time block grants can create instability and confusion for districts.

Transcript Highlights:

• </c> record and present the updated budget. record and present the updated budget.
• </c> components within the governor's budget components within the governor's budget and<00:03:46.239
• 50.080><c> governor</c> the original budget, the governor the original budget, the governor proposed<
• /c><00:03:59.840><c> that</c> revised governor's budget updates that revised governor's budget updates
• <00:07:16.880><c> neutral</c> including two additional budget neutral including two additional budget

Bills: HF2995 , HF2434

Committee: House Human Services Finance and Policy

Keywords: human services, funding, appropriations, MinnesotaCare, behavioral health, general assistance, healthcare, personal care assistance, worker retention, disability services, state funding

Transcript Highlights:

• This budget together.
• And I Minnesota in the state budget.
• Can you speak to the health budget?
• </c> governor been in the budget governor been in the budget negotiations?
• </c><00:07:55.680><c> The</c> and a full Senate budget out. The and a full Senate budget out.

Transcript Highlights:

• The governor's budget reflects increases of roughly $655 million in funding for the 2024-25 budget year
• The governor's budget fully repays the apportionment deferral, the $408.4 million from the 2025 Budget
• Budget Act, and the Governor's budget does not affect any additional deferrals.
• , as well as 10 new capital outlay projects proposed in the 2026-27 budget. ...budget, as well as 10
• We are in strong support of the Governor's January proposed budget and the increased budget allocation

Summary: The committee heard an overview of the California Community Colleges budget proposal, including Proposition 98 funding, a 2.41% COLA for apportionments, enrollment growth funding, repayment of an apportionment deferral, and one-time investments for a student support block grant and deferred maintenance. The Department of Finance described the Governor’s package as providing significant new resources, while the LAO recommended prioritizing COLA and enrollment growth within available funds but raised concerns about some smaller proposals, including making the Healthy School Food Pathways Program ongoing and adding more funding for credit for prior learning before outcomes are known. The Chancellor’s Office supported the COLA, enrollment growth, and one-time investments, and said current projections suggest enrollment growth closer to 3%, with about $85 million to $90 million in ongoing costs if fully funded. Members focused heavily on enrollment growth, the 10% district cap, and whether the state should continue funding growth in the current year and budget year. The Chancellor’s Office said some districts, especially in the Inland Empire and Central Valley, are growing rapidly and that about seven districts are above the cap, with roughly 1,563 FTES and about $30 million in ongoing costs tied to that issue. Members also discussed hold-harmless districts and whether declining campuses should be required to produce turnaround or right-sizing plans. The Chancellor’s Office said districts are already having local conversations and that state funding provides time to adjust, but no formal plan requirement was proposed. The committee then took up common course numbering, where the Chancellor’s Office said all 115 community colleges have implemented the first phase and more than 550,000 students enrolled in the first six commonly numbered courses. The office argued that CCN improves clarity but does not yet guarantee that credits will transfer with full value across UC and CSU, because articulation is still handled campus by campus and can require more than 3,500 separate reviews. Members expressed concern that students can still be forced to retake courses such as calculus or ethnic studies even when they have the same common number, and urged the systems to develop a stronger statewide articulation mechanism tied to outcomes and transparency. The item was left open. Finally, the committee heard the Governor’s proposal to make Calbright College’s funding ongoing at $53.1 million. The LAO recommended instead transitioning Calbright to the student-centered funding formula, with one-time bridge funding in the meantime, arguing the Governor’s proposal lacks a clear enrollment-based rationale and performance expectations. Calbright’s leadership defended the college’s competency-based, flexible model for adult learners, citing more than 6,800 students served, over 2,200 certificates awarded, and wage gains for graduates; they said enrollment is expected to grow from about 7,000 students now to roughly 8,000 to 9,000 next year and around 10,000 over the next couple of years. Members pressed for clearer enrollment and funding data before deciding how Calbright should be funded going forward.

Transcript Highlights:

• So that is what the budget is.
• The budget estimates savings of $134.6 million General Fund in the budget year.
• I think the overall structure of the Governor's Budget is a workload-based budget.
• The second EDP budget item is a BCP. The second EDP budget item is a BCP.
• Budget Act of 2025.

Transcript Highlights:

• Chairman, the budget is before the committee.
• Last year we passed a very robust IDOC budget.
• Budget and Policy Analyst with Legislative Services.
• The division begins on page 2-87 in your budget book.
• You'll see the corresponding increase on the IDJC budget during budget setting this Friday.

Summary: The committee took up a series of Idaho Department of Corrections budget supplementals and FY 2027 enhancement requests. Members approved supplemental or ongoing funding for Hepatitis C treatment authority, county and out-of-state placement costs, medical services, management services replacement items and IT hardware, state prisons replacement items, and community corrections replacement items, with several motions passing by due pass recommendation after roll calls. In community corrections, the committee approved a reduced amount that excluded some vehicle replacements. The committee also approved a technical correction to the college and university budget to restore four FTP that had been omitted from yesterday’s motion. The committee then considered several Department of Health and Welfare items. It approved a budget-neutral fund source change for substance abuse treatment and prevention, moving $650,000 from the Liquor Control Fund to the Cooperative Welfare Dedicated Fund. In the Division of Welfare, members discussed SNAP administrative cost changes tied to H.R. 1, Medicaid expansion work requirements, and Medicaid eligibility system changes; the motion to fund all three items failed in the House committee, so no language advanced. The committee also approved psychiatric hospitalization supplemental funding to shift Idaho Behavioral Health Plan revenue from federal funds to dedicated funds. For FY 2027 mental health services, the committee approved a compromise package that reduced funding for a juvenile corrections clinical transfer and restored some mental health services staffing and Idaho Behavioral Health Plan costs, while adding Allenbaugh House funding through opioid settlement dollars. It also adopted language allowing certain transfers under state law and requiring separate reporting for children’s and adult mental health spending under the Idaho Behavioral Health Plan. For psychiatric hospitalization, the committee approved ongoing fund shifts for employee benefits, the Idaho Behavioral Health Plan, replacement items, and endowment fund adjustments. The meeting ended with notice of upcoming budget-setting work and a reminder for members to get any new motions to staff by early afternoon.

Transcript Highlights:

• Now on to the 2027 budget.
• When it comes to this budget, the question is, how does this budget lower our residents' costs?
• So let me share the quick highlights of this budget. The budget is a $60.75 billion budget that...
• The budget is a $60.75 billion budget that reflects the governor's introduced budget amount.
• The governor's budget message is reflected here today in a $60.75 billion budget.

Transcript Highlights:

• We're having with the budget.
• So when we proposed the January 10 budget, the Governor's budget, we were counting on looking at CCTR
• Our children and family services programs in the revised budget have a total budget of $10.6 billion,
• It's a pleasure to present a budget for a department that does not include budget solutions, per se.
• , from CalHHS’s budget to the California Department of Public Health. ...proposed in the Governor’s budget

Summary: The Assembly Budget Subcommittee on Human Services held a hearing on the Governor’s May Revision, with no votes taken. The first major topic was child care and early education, where the Department of Social Services and Department of Finance outlined proposed changes to absorb federal Child Care and Development Fund and Proposition 64 revenue reductions, shift some funding between child care programs, end funding for prospective pay implementation now that the federal requirement has been rescinded, adjust the alternative payment administration structure, and fund child care infrastructure grants and a Low-Income Investment Fund contract closeout. The Legislative Analyst’s Office said the budget makes progress on the structural deficit but recommended maintaining the administration’s solution level, making reserve deposits, and avoiding new ongoing commitments; it also raised concerns about shifting reductions to the California Alternative Payment Program and about the proposed administrative-rate change. Committee members strongly criticized the proposed loss of child care slots and said they would oppose eliminating those slots, while also expressing support for child care as essential infrastructure. The committee then reviewed California State Preschool Program proposals. Finance and CDE described reductions to the preschool COLA from 2.41% to 2.01%, removal of prospective pay funding, and increases for the QRIS block grant, audit support, and rate reform implementation. Trailer bill language would codify age-based rate categories, inclusion-rate documentation, family fee collection rules, portability, and excused absences. CDE supported the QRIS increase and some attendance and family-fee changes, but warned that aligning three- and four-year-old rates could reduce support for three-year-olds and that the budget does not fully cover enrollment growth. Members also questioned whether the preschool and child care slot reductions should be reallocated rather than terminated, and the administration said the reductions were intended to reflect current utilization and avoid harm to currently enrolled families. The hearing then moved to CalFresh and nutrition programs. CDSS said the May Revision includes a one-time CalFood augmentation, funding to cover federal SNAP administrative cost-share pressures, and additional staffing and technical assistance to implement HR 1 changes, including the able-bodied adults without dependents time limit and new non-citizen eligibility rules. The department estimated HR 1 could cut CalFresh funding by $2.3 billion to $3.7 billion annually and affect about 500,000 people, with roughly 806,000 adults potentially subject to the time limit and about 34,000 non-citizens expected to lose eligibility once fully implemented. Members pressed for stronger harm mitigation, including a $98 million backfill to protect families from losing food benefits, and raised concerns about county workload and the “chilling effect” on immigrant participation. The final portion of the transcript began the IHSS presentation, noting a revised budget of $33.7 billion total funds and $12.8 billion General Fund, with proposed reductions tied to Medi-Cal asset-limit changes and other federal conformity items.