Transcript Highlights:

• , and that funding... ...proposed new criteria or eligibility for this program funding, and that funding
• funding, ...often a program could be funded by HAP alone, or it could be funded by something like a
• , or this funding can only serve people with substance use challenges.
• Again, because of the multi-year funding cycle of HAP in particular, it is incredibly challenging to
• Again, because of the multi-year funding cycle of HAP in particular, it is incredibly challenging to

Summary: The Senate Budget and Fiscal Review Subcommittee 4 met to hear an information-only agenda focused on homelessness. The chair and vice chair opened with remarks about affordability, accountability, and the need for flexible but effective state responses. The committee then heard an update from Dr. Ryan Finnegan of UC Berkeley’s Turner Center on homelessness trends, data limitations, and program impacts. He said homelessness remains high, with 2024 point-in-time counts showing about 187,000 people experiencing homelessness statewide, though unsheltered homelessness has declined somewhat as shelter capacity expanded. He emphasized that California’s high housing costs and shortage of affordable housing are the main drivers, while also noting persistent racial disparities, high chronic homelessness, and the importance of coordinated housing, health, and social services. He also warned that cuts or changes to federal programs and state funding streams like HAP could threaten progress. Members questioned Dr. Finnegan about the 9% decline in unsheltered homelessness, the timing and methodology of point-in-time counts, how to interpret trends over time, and the role of policy changes such as Housing First, Proposition 47, and Martin v. Boise. He explained that the 9% figure came from 30 continuums of care that had completed 2025 counts, and that HUD’s eventual statewide number would likely differ because not all regions counted that year. He also discussed how different funding sources are layered in local programs, including HAP, local funds, philanthropic support, federal funds, and CalAIM reimbursements. Several members stressed the need for clearer, more comparable measures of effectiveness and outcomes, including whether programs reduce long-term homelessness and move people toward self-sufficiency. The committee then heard from the California Interagency Council on Homelessness on statewide data systems, especially the Homeless Data Integration System (HDIS). Staff described HDIS as the first state-level integrated homelessness data system, built from local HMIS data and used to track demographics, services, outcomes, and program performance across all 44 continuums of care. They said HDIS has enabled statewide dashboards, system performance measures, and new accountability tools under AB 977 and AB 799. Cal ICH also said HAP Round 4 was highly cost-effective under the State Auditor’s methodology, estimating a cost of about $9,172 per person permanently housed, and that new AB 799 dashboards are intended to provide clearer public reporting on outcomes, fiscal data, and progress toward statewide goals. Members asked about measuring self-sufficiency, identifying the best local partners, detecting fraud, and whether the new dashboards will allow better comparisons among program types and funding uses. No votes were taken, and the one scheduled vote was postponed.

Transcript Highlights:

• Those specific challenges are what we face in the city of Lawrence. We don't need extra funds.
• One of the areas of challenge that I know you have as well is funding our special education circuit breaker
• Because I really believe that, you know, there's a lot of challenges we've heard with funding overall
• Despite the intent of the Student Opportunity Act to modernize school funding, implementation challenges
• Charter public schools face an additional unique financial challenge when it comes to funding.

Committee: Joint Joint Committee on Ways and Means

Keywords: 995, all

Summary: The hearing was a Joint Committee on Ways and Means budget session held in Lawrence focused on the governor’s proposed FY27 education and local aid budget, with remarks from legislative co-chairs, local officials, and education agency leaders. Acting Mayor Giovanni Rodriguez and Superintendent Ralph Carrero emphasized Lawrence’s high-need student population, the importance of Chapter 70 and Student Opportunity Act funding, and the impact of state aid on schools serving many English learners and low-income families. Carrero highlighted Lawrence High School programs such as early college, dual degrees, career pathways, and early childhood classrooms embedded in the high school, while lawmakers introduced themselves and noted the importance of the hearing to their districts. Acting Secretary of Education Amy Kershaw, Commissioner of Higher Education Noi Ortega, Commissioner of Elementary and Secondary Education Pedro Martinez, and Commissioner of Early Education and Care Amy Kershaw outlined the administration’s FY27 priorities. They described investments in literacy initiatives, universal school meals, student mental health, early college and career pathways, higher education affordability, community college and university student-success supports, preschool expansion, child care subsidies, and workforce supports for early educators. The commissioners also discussed federal funding threats, equity gaps, and the administration’s efforts to improve outcomes for Black and brown students, multilingual learners, students with disabilities, and low-income students. Members questioned the panel about the local contribution formula study, the final year of Student Opportunity Act implementation, and the need to revisit Chapter 70 funding to better address rising costs such as special education, transportation, and health care. Officials said the local contribution study report is expected by the end of June, with a draft to be shared after data analysis and public comment. Commissioner Martinez said the Student Opportunity Act narrowed funding gaps but more work is needed, and he pointed to a proposed Accelerating Achievement Initiative to support the highest-need schools. Senator Oliveira also raised concerns about Chapter 70 disparities and asked about partnerships with libraries to support literacy, prompting discussion of broader early literacy collaboration.

Transcript Highlights:

• That's a challenge that we have.
• challenges, we need to address the way that we fund... ...the way that we fund students.
• , English learner funding, and gifted funding.
• Option two is to establish a new student-weighted funding formula. ...weighted funding formula.
• funding, I think that it would be a great... funding.

Committee: House Education Policy

Keywords: 1136, house, all

Transcript Highlights:

• and held their net funding flat.
• The Student Housing Grant Program bond funding has provided funds for seven projects at the University
• General Fund.
• Core funds support our campus operations, and when we discuss available funds, we subtract those funds
• We need to fully fund the compact.

Summary: The Senate Budget Subcommittee on Education held its first 2026 hearing on higher education, focusing on UC and CSU system updates, student housing, enrollment, and core operations. In opening remarks, the chair noted recent state fiscal stress, the prior rejection of proposed UC/CSU cuts, and the Governor’s proposed 5% ongoing compact increases. UC President James B. Milliken and CSU Chancellor Mildred Garcia described the systems’ public value, research and workforce roles, and the impact of federal actions on grants, financial aid, and campus operations. Both also emphasized Title IX and civil rights efforts; CSU said it had implemented nearly all state auditor recommendations and was on track to finish the remaining one, while UC highlighted its systemwide civil rights and Title IX offices. Both leaders said federal investigations, grant cancellations, and litigation demands were consuming staff time and money, with UC reporting more than 200 grants lost or affected and CSU citing more than $161 million in lost grants and more than 1,600 grants affected overall. The committee then heard on student housing. Finance and LAO staff said the Governor’s budget made no major new housing proposal but continued support for the Higher Education Student Housing Grant Program. CSU reported 12 supported projects that will add about 5,047 beds, most below market rate, with four already open and seven more expected this year; it also said it has about 68,000 beds systemwide, a 92% occupancy rate, and ongoing emergency housing support. UC said the program has supported seven UC projects and two joint community college projects, adding more than 7,000 beds total, but nearly 10,000 UC students were on housing waitlists at the start of fall 2025. UC asked for additional state support, including possible bond funding and a statutory change to allow UC participation in public-private partnership housing projects. Members discussed rapid rehousing, student homelessness, faculty and staff housing, and community college housing partnerships, with both systems describing existing emergency beds and support services. On enrollment, LAO recommended maintaining UC’s 2026-27 resident undergraduate target, funding enrollment growth separately from base increases, pausing the nonresident reduction plan, and holding UC flat in 2027-28. For CSU, LAO recommended revising the 2026-27 target downward to reflect current projections, funding growth separately, and holding 2027-28 flat. CSU said it had rebounded from COVID declines, now exceeds its funded target by about 3,000 FTE, and is shifting about $89 million and 10,000 FTE spots from lower-demand campuses to higher-demand ones while developing turnaround plans for seven campuses with sustained enrollment declines, including Sonoma State. CSU also described direct admissions, transfer success pathways, and new degree programs aimed at workforce needs. UC said it had surpassed its compact enrollment goals, planned to add 2,721 California undergraduates in 2026-27, and was seeking $5.5 million for health professional programs. Members raised concerns about underprepared freshmen, K-12 alignment, nonresident caps at UC San Diego, deferred maintenance, ROTC access, and the need for stronger turnaround plans and teacher preparation pipelines. The final item on core operations addressed the Governor’s proposal to defer 3% base funding again, moving the one-time deferral to 2027-28 and allowing short-term zero-interest loans to cover it.

Transcript Highlights:

• This funding, federal funding, comes to us from the Rehabilitation Services Administration, and the state
• Right, so we received some funding, federal funding, from Rehab Service Administration in October Some
• funding, federal funding, from Rehab Service Administration in October to start this project that we
• Has, have you found another funding source?
• once our interim funding is up.

Committee: Joint Joint Committee on Children, Families and Persons with Disabilities

Keywords: 995, all

Summary: The hearing was an informational and oversight session of the Joint Committee on Children, Families, and Persons with Disabilities, with chairs and members hearing agency updates from several commissioners. The Department of Public Health’s Bureau of Family Health and Nutrition described its maternal and child health work, including home visiting, early intervention, WIC, newborn hearing screening, and cross-agency efforts on prenatal substance exposure, respite care, children’s vision, and maternal health initiatives. DPH emphasized that federal grant cuts, layoffs, and the loss of data systems such as PRAMS would weaken services and planning, and members asked about Title V funding and the impact of federal uncertainty. The Massachusetts Commission on the Deaf and Hard of Hearing highlighted communication access services, interpreter and CART referrals, emergency after-hours support, family navigation, and independent living services. Commissioners and members discussed the shortage of ASL interpreters and the need to expand training pipelines, including partnerships with colleges and possible ASL programming for younger students. The Department of Developmental Services reported serving nearly 50,000 people and focused on youth and adult services, transition-age supports, autism services, self-direction, respite, and new high-acuity residential models. Members asked about respite availability, self-direction outcomes, and workforce shortages; DDS said it was expanding clinical capacity and provider rates while monitoring possible federal Medicaid, SNAP, and immigration-related impacts. The Commission for the Blind described services for about 28,000 legally blind residents, most of whom are older adults, including social rehabilitation, orientation and mobility training, children’s services, assistive technology, vocational rehabilitation, and Turning 22 supports. The commissioner discussed a UMass-based effort to build the workforce pipeline for blindness services and said the agency was watching federal restructuring but had not yet seen direct cuts. MassAbility’s leadership then warned about major federal changes affecting Social Security disability determinations, including staff restructuring, office closures, and a new overpayment repayment policy, and said the agency was preparing for possible increases in claims and uncertainty around reallotment dollars that help fund services. The Disabled Persons Protection Commission closed the hearing with an update on its abuse investigations and protective services for adults with disabilities. DPPC reported rising hotline calls and investigations, a growing caseload, its sexual assault response team, the abuser registry, and a new interagency protective services integration system funded by ARPA dollars through 2027. The agency also flagged new federal rules that could affect funding eligibility and said it may need statutory changes to comply. Members asked about funding, reporting pathways, and how complaints reach DPPC, and the commissioner said the agency uses both mandated reporting and proactive outreach to identify and respond to abuse.

Transcript Highlights:

• That's because it received pretty significant federal funding, and that federal funding was mostly eliminated
• We're challenging that.
• We're challenging that.
• So that happened regarding some DOJ funding, U.S. Department of Justice funding for legal services.
• There are, though, funding streams where conditions have been added, where we have... ...though, funding

Committee: House State Government & Tribal Relations

Keywords: 904, all

Transcript Highlights:

• how your money and your funding has helped us.
• challenge.
• The pipeline funding, the line funding has been phenomenal for us in terms of our local support.
• Line funding, we did over $12.3 million.
• Since we are talking about the Gayle Harrell line funding... ...about the Gayle Harrell line funding

Committee: Senate Appropriations Committee on Higher Education

Summary: The Appropriations Committee on Higher Education met to focus on nursing education funding, workforce supply, and Florida’s low NCLEX pass rates. The chair emphasized that Florida ranks last nationally in nursing exam pass rates and said the committee wants to use budget decisions and a forthcoming nursing bill to improve outcomes. The Florida Center for Nursing at USF presented preliminary workforce and education data showing RN supply is moving toward equilibrium with demand through 2037, while LPN shortages are projected to worsen, especially in some regions. The center also reported on enrollment, retention, faculty vacancies, and NCLEX trends, noting Florida still underperforms the national average but has shown some recent improvement, including higher RN pass rates in 2024 despite fewer test takers. The center highlighted that students who test sooner after graduation tend to pass at higher rates. A panel of nursing education leaders from public universities, state colleges, technical colleges, and private institutions described how prior state pipeline and line-item funding helped expand enrollment, simulation labs, faculty hiring, student support services, and partnerships with hospitals. UNF, Galen College, College of Central Florida, Keiser University, and Lorenzo Walker Technical College each reported strategies such as expanded simulation, mental health and social work support, test-prep and remediation, and efforts to grow faculty pipelines. Several speakers said faculty recruitment and retention remain major barriers because of salary competition with hospitals, faculty debt, and aging faculty. Technical college representatives also stressed the need to strengthen LPN pathways, English-language support, and LPN-to-RN bridge programs. Members asked for ideas to improve NCLEX outcomes and discussed possible policy options, including student loan forgiveness, critical shortage supplements for faculty, incentives for students to test soon after graduation, and possible changes to timing or regulation around NCLEX eligibility. Several witnesses supported more flexible or recurring funding, while noting that one-time line funding has been useful for simulation, scholarships, and faculty support but is harder to sustain. The committee adjourned after the discussion, with the chair saying the ideas would be considered in future funding and policy decisions.

Transcript Highlights:

• </c> and you know it's it's a challenging and you know it's it's a challenging time<00:01:40.640><c>
• Continued funding and increased funding for this program will help ensure that these instructors have
• Continued funding and increased funding for this program will help ensure that these instructors have
• Continued funding and increased funding for this program will help ensure that these instructors have
• Continued funding and increased funding for this program will help ensure that these instructors have

Keywords: 1183, house

Transcript Highlights:

• Those specific challenges are what we face in the city of Lawrence. We don't need extra funds.
• One of the areas of challenge that I know you have as well is funding our special education circuit breaker
• Because I really believe that, you know, there's a lot of challenges we've heard with funding overall
• Despite the intent of the Student Opportunity Act to modernize school funding, implementation challenges
• Charter public schools face an additional unique financial challenge when it comes to funding.

Committee: Joint Joint Committee on Ways and Means

Keywords: 1212, all

Transcript Highlights:

• So, some challenges there.
• Potential funding, federal funding impacts.
• funding secured.
• funding secured when applying for DCCA funding.
• for DCCA funding.

Summary: The Joint Committee on Veterans and Military Affairs met to hear updates from Joint Base Lewis-McChord, the Washington Military Department, the Washington Department of Veterans Affairs, and the Department of Commerce on federal and state impacts affecting veterans, military families, and military installations. JBLM’s garrison commander said the base remains focused on housing, child care, and spouse employment, but is facing workforce reductions tied to federal personnel actions, especially in air traffic control, 911 dispatch, and firefighting. He also said JBLM is preparing for increased mutual-aid needs during fire season, and that the Army Transformation Initiative could change unit composition at JBLM over time without a major overall population shift. He confirmed that the Lewis Army Museum is on a closure list, but said the building will remain in use for training and that the base is exploring partnerships to keep museum functions operating, possibly with volunteers or local partners. The Washington Military Department reported about 400 Guard members deployed on federal missions and described ongoing state missions in cybersecurity and firefighting. The department said the Army National Guard’s 81st Stryker Brigade will transition to a mobile combat team, with associated changes in equipment, manning, and end strength. It also warned that continuing resolutions are delaying funding, limiting new military construction starts, and increasing costs. The Washington Department of Veterans Affairs outlined a $3.2 million reduction from the governor’s budget and related cuts affecting internships, vacant positions, outreach travel, claims support contracts, counseling and wellness, veterans’ innovation assistance, and the military transition and readiness council staff position. WDVA said it is ending or scaling back several programs, including in-house nursing assistant training, the veteran farm at Ordean, Vet Corps due to AmeriCorps funding changes, and the tobacco cessation program, while noting that the legislature funded about $23.7 million in capital projects for veteran homes, cemeteries, and transitional housing. The Department of Commerce presented on the Defense Community Compatibility Account, which funds projects that reduce conflicts between military installations and nearby communities. The program currently has 10 projects across five legislative districts, including school and child care improvements, water wells, land acquisition, and a joint firefighting training center in Everett. The presenter said the main challenge is that DCCA projects often need non-state funding secured before they can compete, which can make it hard to leverage federal Defense Community Infrastructure Program dollars; he recommended more flexible state timing to help projects qualify for federal funding. In closing discussion, members raised possible future agenda items including child care near bases, veteran homelessness, suicide prevention, Navy Day, military family housing, and a possible Department of Licensing issue involving guard and reserve designations on driver’s licenses. No formal votes were taken, and the meeting adjourned after members were invited to suggest topics for the October and December committee meetings.

Transcript Highlights:

• The majority of districts seem like they are navigating those challenges and using the increases in funding
• our rainy day funds.
• I understand the challenges around hiring with one-time funds, with limited funds, but allowing folks
• go towards professional learning I understand the challenges around hiring with one-time funds with
• limited funds but around hiring with one-time funds, with limited funds, but allowing folks to extend

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:

• and held their net funding flat.
• The Student Housing Grant Program bond funding has provided funds for seven projects at the University
• General Fund.
• Core funds support our campus operations, and when we discuss available funds, we subtract those funds
• We need to fully fund the compact.

Summary: The subcommittee heard opening remarks and updates from UC President James Milliken and CSU Chancellor Mildred Garcia on the state of higher education, including federal funding losses, civil rights/Title IX compliance, enrollment, housing, and budget needs. Both leaders emphasized the value of UC and CSU to California’s workforce, research, and economic mobility, while warning that federal grant cancellations, investigations, and changes to student aid are creating major financial and operational strain. UC reported losing or having at risk more than 1,600 grants and over $1 billion in research activity, while CSU said it had lost more than 200 grants totaling about $161 million, including minority-serving institution grants that affected student support programs. Both systems said they are investing in civil rights services and trying to limit the release of personally identifiable information in response to federal requests. The committee then reviewed the higher education student housing grant program. Finance and Legislative Analyst’s Office staff said the governor’s budget does not include major new changes but continues support for the program. CSU reported 12 approved projects that will add about 5,047 beds, with roughly 75% below market rate, and said it has about 68,000 beds systemwide, a 92% occupancy rate, and ongoing housing insecurity among students. UC said its housing projects have added more than 7,000 beds when reduced-rent and regular-rent units are combined, but nearly 10,000 students were on housing wait lists at the start of fall 2025. Both systems described rapid rehousing efforts, emergency beds, and partnerships with community colleges, and UC noted several joint housing projects, including at Riverside, Merced, and Santa Cruz. Members discussed whether future housing bonds and use of surplus school sites could help expand capacity. In the enrollment section, the LAO recommended maintaining UC’s 2026-27 resident undergraduate target, funding enrollment growth separately from base increases, pausing the nonresident reduction plan at the three highest-demand UC campuses, and holding UC enrollment flat in 2027-28. For CSU, the LAO recommended revising the 2026-27 enrollment expectation downward to reflect updated projections, while also funding enrollment growth separately and holding enrollment flat in 2027-28. CSU said it has rebounded from pandemic-era declines, is above its funded target by about 3,000 FTE, and is shifting about $89 million and 10,000 FTE from lower-demand campuses to higher-demand ones while developing turnaround plans for seven campuses with sustained enrollment declines, including Sonoma State. UC said it has already exceeded its compact enrollment goals and is planning continued growth, but that sustaining it depends on ongoing state support. Members raised concerns about campus-specific enrollment declines, nonresident caps at UC San Diego, and the need for stronger turnaround plans and teacher preparation pathways. The final section covered core operations and deferred payments: Finance said the governor proposes another one-year deferral of about $129.7 million for UC and $143.8 million for CSU, and the LAO recommended retiring the deferrals when one-time funds are available. CSU described rising compensation, financial aid, utilities, insurance, and deferred maintenance costs, and said it is pursuing cost-saving measures such as procurement alignment, campus integration, and shared administrative services.

Transcript Highlights:

• And your funding makes it possible.
• to be ready for that challenge.
• And so is just line grant funding.
• Obviously, the funding placed a huge piece.
• That's another challenge.

Keywords: 999, senate, all

Transcript Highlights:

• There are many challenges in a health care budget. You think you have challenges.
• And again, none of the funds being requested are from the general deposit fund, or from the general fund
• I think where the challenge of the limited-term funding comes in is that a lot of contractors may not
• I think where the challenge of the limited term funding comes in is that a lot of contractors may not
• Fund.

Summary: The committee heard an overview from the Office of the Inspector General and California Correctional Health Care Services on prison oversight, medical care, reentry, and related budget requests. The OIG requested $275,000 General Fund for two additional intake analysts, citing a sharp rise in complaints from 3,200 in 2022 to 7,860 in 2025 and explaining that the unit reviews and routes complaints, including PREA and staff misconduct allegations, within 30 days. Its medical inspection unit reported on cycle seven prison health inspections, noting generally adequate case-review performance but weak policy-compliance results, especially in medication management and health care environment indicators, and said it was beginning cycle eight with revised inspection methods. Members questioned the OIG about what kinds of complaints were driving the increase, whether the office tracks validity or systemic patterns, and how it distinguishes duplicative complaints from those already handled by CDCR. OIG said the largest categories were prison conditions and staff misconduct, that it does not determine whether complaints are “valid” in a statistical sense, and that it forwards issues to CDCR or other entities as appropriate. Senators also asked about the medical inspection findings, the remaining prisons not yet delegated back from federal receivership, and whether more detail should be provided in future reports. LAO and Department of Finance staff said they had no concerns with the OIG proposal. The committee then reviewed the correctional health care budget, including staffing, pharmacy, contract medical costs, and the state’s progress toward ending the Plata medical receivership. CDCR said it is trying to reduce vacancies through hiring events, social media outreach, new classifications, and more on-site care, while also using CalAIM to improve reentry services; CalAIM officials reported 89% Medi-Cal activation at release, 87% managed care assignment, 88% reentry care plans, and 59% warm handoffs, with about $14.7 million in reimbursements to date. Members pressed staff on the cost of receivership, the pace of delegation, whether more care could be consolidated into fewer facilities, and whether the state should seek more federal reimbursement or alternative staffing models. Finally, the committee discussed the new mental health receivership and a telemental health staffing proposal. The receiver’s office requested $33.9 million from the Mental Health Special Deposit Fund, including $8.2 million for the receiver’s office and $25.3 million to make court-ordered bonus payments permanent; CDCR also sought about $8.9 million for telemental health staffing, growing to $13 million ongoing. LAO recommended approving the action plan and portions of the telehealth request, but urged the Legislature to monitor progress, consider out-of-state recruitment and expanded telehealth, and avoid across-the-board salary increases; Finance cautioned that out-of-state licensure would require major statutory changes and that staffing-ratio changes would need receiver approval. Senators raised concerns about the high cost of receiverships, vacancy-driven fines, the need for more detailed benchmarks, and whether the state should consolidate mental health populations and better target recruitment to fill hard-to-staff positions.

Transcript Highlights:

• My mission today is to convey the scale of the funding challenges that the university faces as a result
• Yeah, it's quite the challenge.
• funding.
• At the same time, we are facing another major challenge: the loss of federal funding for minority-serving
• And even in terms of how we're funded, we're funded less than than than...

Summary: The Assembly Higher Education Committee held an oversight hearing on how federal actions are affecting California higher education, with opening remarks from the chair and members emphasizing the importance of state-federal shared governance and the need to protect access, affordability, and campus diversity. The first panel included leaders from the CSU, University of the Pacific, California Community Colleges, and UC, who described broad impacts from federal grant terminations, changes to student aid, loan limits, visa and immigration policy, and proposed reductions to research support. Testimony focused on the elimination of Grad PLUS loans, caps on Parent PLUS and Pell-related changes, the loss or suspension of hundreds of grants, and the resulting harm to student support services, research, workforce pipelines, food assistance, and health care training. UC and CSU representatives warned of major losses in research funding, indirect cost reimbursement, and student opportunities, while community college leaders highlighted uncertainty around federal grants and the need to maintain services for low-income, first-generation, undocumented, and other vulnerable students. Committee members asked how the state could respond, including through intersegmental partnerships, dual enrollment, transfer pathways, and support for basic needs and nutrition programs. Witnesses said California could help by sustaining financial aid, protecting minority-serving institution programs, and investing in research, housing, and workforce development. Several speakers stressed that federal changes were creating instability for students and campuses, and that the effects would likely be long-lasting, especially in health care, teaching, STEM, and social work pipelines. A second panel then focused on equitable access. The California Student Aid Commission described state efforts such as the $3.9 billion investment in aid programs, the Cal Grant system, the Dream Act, and possible reforms to better serve adult learners, foster youth, undocumented students, and students with dependents. The Los Angeles Community College District reported that federal cuts and policy shifts are discouraging students from applying for aid, threatening TRIO and MSI/HSI-funded services, and reducing support for basic needs, counseling, and workforce programs. The Association of Independent California Colleges and Universities and the CSU Academic Senate echoed concerns about FAFSA confusion, international student restrictions, grant losses, and the erosion of equity-focused programs. No formal votes or legislative actions were taken during the hearing; the committee primarily received testimony and discussed possible state responses.

Transcript Highlights:

• We look at the challenges and solutions that will best serve all Californians.
• Today is also an opportunity to highlight both the challenges and the solutions.
• were about funding.
• This means they pay interest to deliver state-funded services."
• This legislation would be a first step in addressing the funding challenges experienced by nonprofits

Keywords: 988, house, all

Transcript Highlights:

• We're going to be talking today about the funding and the distribution of funds, and the effectiveness
• funding formula, and it's been our policy since 2010 to use that funding formula to also distribute
• our state Kupuna care funds.
• Maybe that was my overall state funds for all my state funds. Maybe that's what it was.
• We do get quite a bit of county funding, yeah. We last... ...bit of County funding, yeah.

Keywords: 912, senate, all

Summary: The Committee on Health and Human Services held an informational briefing on Kupuna Care funding, distribution, utilization, and the status of program rules. The Office of Aging explained that state Kupuna Care funds are distributed using the same federally approved interstate funding formula used for Older Americans Act funds, with eight weighted factors tailored to Hawaii’s conditions: older adults, greatest economic need, low-income minority status, disability, language barriers, geographic isolation, inverse population density, and older adults living alone in poverty. The department said the formula is based on census and American Community Survey data, with current county shares listed as Kauai 7.45%, Honolulu 69.61%, Maui 11.7%, and Hawaii County 17.88%. Officials said the formula is being reviewed with current data and will need federal approval and then public hearing before final adoption. Members questioned how the program works in practice, noting that the statute and eligibility language can sound like direct individual benefits even though services are delivered through area agencies on aging, ADRCs, and contracted providers such as meal and adult day care programs. The Office of Aging said ADRCs determine eligibility and then refer clients to authorized providers, who must meet service standards in their contracts. The chair pressed repeatedly for long-delayed rules, saying the Legislature had expected them years earlier and that clear rules are needed to ensure funds are spent properly and to avoid conflicts of interest. The department acknowledged the delay, said draft rules were written in 2023 after earlier commitments to finish sooner, and said it paused while federal Older Americans Act rules were being updated; it now expects to send the rules to the Deputy Attorney General, then out for public hearing, with a goal of completion in 2025. The department also reported utilization data for the last two fiscal years. In 2023, it expended about 93% of its allocation and served 5,473 older adults at an average annual cost of $1,358; in 2024, it expended about 97% and served 5,520 older adults, with the average cost down by about $200, which officials said may indicate fewer services per person. Eligibility was described as age 60 or older, U.S. citizen or qualified alien, with cognitive impairment or disability and functional deficits, and the statewide profile showed many participants were homebound, living alone, or below poverty. The most-used services were transportation, case management, and home-delivered meals. The chair also asked about the former Kupuna caregiver program; officials said the programs are now combined under Kupuna Care, with most funding going to adult day care to provide respite for working caregivers. County representatives then described local conditions, especially on Hawaii Island. Hawaii County officials said the county covers about 5,000 square miles, has about 208,000 residents, and roughly 24% are age 65 or older. They identified three main challenges: staffing shortages and retention problems among providers, shortages within the county department itself, and the loss of adult day care capacity, with only one center remaining on the island and none on the west side. They said these constraints limit service delivery even as demand grows. At the same time, they highlighted successes such as serving people in the community before they need higher levels of care, providing caregiver counseling and training through adult day care, serving 467 individuals locally, and ensuring the Resource Center answers calls from caregivers seeking help.

Transcript Highlights:

• I think where the challenge of the limited-term funding comes in is that a lot of contractors may not
• I think where the challenge of the limited-term funding comes in is that a lot of contractors may not
• I think where the challenge of the limited term funding comes in is that a lot of contractors may not
• Fund.
• Fund.

Keywords: 987, senate, all

Transcript Highlights:

• Current funding challenges and training gaps hinder sustainability and effectiveness.
• And so with that, there were some challenges with these historical funding models, especially with the
• funding for the child welfare system.
• funded.
• The second challenge that we're facing out of the four is that it does combine state and federal funds

Committee: Senate Children, Families, and Elder Affairs

Summary: The committee heard a presentation from Dr. Kelly O’Dare on first responder behavioral health access, peer support, and suicide prevention. She described UCF Restores, the Second Alarm Project, and related partnerships that provide culturally competent treatment, peer training, clinician education, disaster response support, and behavioral health navigation. She cited survey and state data showing significant rates of sleep problems, anxiety, depression, substance use, and suicide among Florida first responders, and said evidence-based treatment has helped many patients recover, including a reported 76% who no longer met PTSD diagnostic criteria after treatment. Senators asked about measuring outcomes, peer support standards, and whether the state should create more consistent statewide requirements; O’Dare said peer support training must be specialized, linked to higher levels of care, and supported by sustainable funding and statewide coordination. The committee also heard from a public commenter who supported the work and emphasized the need for adequate resources and peer support infrastructure. The committee then received a Department of Children and Families presentation from Casey Penn on the proposed funding methodology for community-based care lead agencies under HB 7089. Penn explained that the new model is intended to be actuarially based, reimbursement-oriented, and more transparent than prior funding approaches, using historical expenditures, standardized reporting, and two main tiers: Tier 1 for largely fixed administrative and operational costs, and Tier 2 for direct child-serving costs based on per-child-per-month blended rates. He said the model includes a 2% risk corridor for Tier 2, hold-harmless funding in the first year, and optional Tier 3 performance incentives, with an estimated additional state appropriation need after offsets. Senators raised concerns about prevention, historical inequities, reasonableness of costs, administrative overhead, blended state and federal funds, adoption subsidies, high-acuity placements, and disaster-related disruptions. Penn said some of those issues could be addressed in future iterations as the child welfare information system is modernized, and he agreed to provide written responses to committee questions. Representatives of the Florida Coalition for Children and CBCs responded that the model is a major improvement but urged additional safeguards, including an administrative cap, clearer separation of direct and indirect costs, and better treatment of federal and pass-through funds. They argued that the system already has oversight and that deficits reflect insufficient appropriations rather than excess spending, while also noting that higher-acuity children and regional differences can drive costs. No votes were taken on either topic, and the meeting ended with committee staff introductions and adjournment.

Transcript Highlights:

• Current funding challenges in training gaps hinder sustainability, ineffectiveness to address these gaps
• And so with that, there were some some challenges with these historical funding models, especially with
• specific line items that that that funding could only be used for this funding.
• funding.
• The second challenge that we're facing all the 4 is it does come paint combined state and federal funds

Keywords: 999, senate, all