Transcript Highlights:

• fund.
• To follow up on that, if we don't deposit the federal funds into the special fund, would those funds
• fund.
• fund.
• </c><00:43:43.720><c> is</c> federal funds from the special fund is federal funds from the special fund

Committee: House Consumer Protection & Commerce

Summary: The committee heard testimony on HB 818 HD1, which would establish the Waiawa Community Development District. The Attorney General’s office said the bill may not comply with requirements for a special fund, and DLNR asked for further amendments so lease revenues would remain with DLNR while it continues managing the lands. DLNR cited ongoing costs, including the Uncle Billy’s demolition debt and management needs at Banyan Drive/Banyan Country Club. HCDA/Waiawa representatives supported the bill, agreed that DLNR should keep lease revenues while it remains the land manager, and said a future transfer of land management would change where revenues should go. Members focused on whether removing lease revenue would undercut the bill and on how existing and future revenues should be allocated. The committee then took up HB 338 HD1 and HB 339 HD1 on renewable energy-related utility transactions and procurement. Testimony came from the Consumer Advocate, the State Energy Office, the Public Utilities Commission, Hawaiian Electric, IBEW Local 1260, Ulupono Initiative, and Life of the Land. Supporters generally backed the measures, while some asked for labor-related strengthening language. Discussion centered on how the PUC should handle competing bids or offers in utility merger or acquisition situations, with concerns raised about NDAs, timing, and whether the original version or amended language better allowed public and intervenor participation. A witness from Life of the Land argued that utilities should not negotiate under NDA in a way that blocks later public competition, and a PUC-related witness said the current language was changed from the original to address PUC testimony. Finally, the committee heard HB 1467 HD1 on housing resiliency. OIP was not present, while B&F raised concerns about placing federal funds into a special fund, saying federal grant money should remain in a separate P fund for transparency, accountability, and single-audit compliance. State agencies and groups including OPSD, Hawaii Emergency Management Agency, the Climate Advisory Team, and Hawaii Realtors supported the measure. Testimony emphasized that many older roofs lack hurricane clips and that strengthening homes could reduce disaster sheltering and temporary housing costs. IBEW Local 1260 supported the bill but argued that building to current standards upfront is preferable to retrofitting later. Members questioned funding structure, eligibility, and whether the program should be needs-based; the bill was described as limited to households under 140% AMI. No votes or final actions were taken in the portion of the meeting provided.

Transcript Highlights:

• of the NAP 2.0 program, which will continue funding for the 15 positions previously approved, funding
• These services are funded because of county resources provided through VLF funding.
• This is not new funding. It's funding already owed.
• This is not new funding. It's funding already old. 911 and fewer deputies solving crimes.
• This is not new funding; it's funding already owed. Public safety and community trust depend on it.

Summary: The subcommittee first heard an item on the vehicle license fee backfill for counties, focused largely on San Mateo County and the related excess ERAF calculation. Department of Finance staff said the administration does not propose the requested $119 million backfill, arguing the payment is discretionary and that the existing statutory formula should continue to operate as written. Senators and public witnesses, including Senator Becker and former Senator Jackie Speier, argued the state has a longstanding obligation to local governments and that San Mateo County faces severe service cuts without the funds; they also discussed whether the issue could be solved through local school district boundary changes or other structural fixes. The chair held the item open after testimony. The committee then reviewed Secretary of State budget proposals. The department presented SB 851 implementation funding of $1.1 million General Fund in 2026-27 and $807,000 ongoing for four positions and software to track election-related litigation, update voting system standards, and expand vendor notice requirements. Members asked about election security, the impact of recent federal court decisions, the end of federal HAVA funds in 2027-28, and the staffing and timeline needed to implement the law. The committee also heard a $11.8 million General Fund request for the Cal Access Replacement System, intended to replace the outdated campaign finance and lobbying disclosure platform; staff said the project is on track for a November 2026 go-live with a stabilization period afterward. A separate item sought $9.795 million Business Fees Fund for the Notary Automation Program replacement, with the department explaining delays were due to more planning, a 2025 special election, and the need to secure a contractor, with go-live now projected for 2029. All three items were held open. The Department of Veterans Affairs presented its overall status and then its Yountville skilled nursing facility project. CalVet described progress on veterans homes, home loans, housing programs, and mental health initiatives, while noting higher-acuity needs among older veterans and continued support for underserved groups. For Yountville, the department said the new 240-bed skilled nursing facility is nearing completion and will replace the aging Holderman Hospital building, though some functions will remain in the old building and other campus projects, including roof and steam system work, are still underway. Members also raised concerns about retroactive tax liabilities for employees whose housing fringe benefits had not been reported, and CalVet said it has corrected the reporting, retrained staff, and is working with employees on repayment and lease adjustments. The committee also discussed a proposal to eliminate vacant positions under Control Section 4.12; CalVet said the positions were long vacant and could be given back without harming operations, while the LAO noted the Legislature had not concurred and keeping them would increase General Fund costs. The item was held open. Finally, the California Arts Council gave an informational update on its work and the cultural districts program. The director described the council’s grantmaking, technical assistance, and support for 24 cultural districts statewide, while members emphasized the economic and preservation value of arts funding and urged more investment, including a proposed $50 million General Fund augmentation and a $10 million carve-out for cultural districts. Staff explained that the original cultural district funding was reduced and that the program is currently unfunded and lacks dedicated staff, limiting its ability to expand beyond a small share of applications. Members from different regions noted that many parts of the state still lack cultural district designations and pressed the council to broaden access beyond major urban areas. The item was informational only, with no vote taken.

Transcript Highlights:

• grant funding for eligible schools.
• We respectfully urge the subcommittee to protect full funding for the local control funding formula,
• Please sustain the funding and help even more Californians by including $3 million in funding. ...and
• I am here in strong support of restoring the CLSA funding and also restoring the ESL literacy funding
• With this funding, the ESL funding, it allows libraries to continue the ESL classes, which support our

Summary: The subcommittee opened with remarks on the state budget and K-12 education, noting the large increase in the Proposition 98 minimum guarantee, the use of deferrals and reserves in the prior budget, and the challenge of balancing education funding against other state priorities. Superintendent Tony Thurmond described California education as improving overall, citing gains in test scores, graduation, and college readiness, but said major gaps remain for low-income students, students of color, agricultural communities, English learners, foster youth, and students with disabilities. He praised recent investments in universal meals, transitional kindergarten, community schools, arts, broadband, and special education, while warning that declining enrollment, chronic absenteeism, and the proposed $5.6 billion Prop. 98 settle-up create uncertainty for districts. He also urged a long-term literacy plan, expanded tutoring, universal kindergarten, and continued protections for students and families affected by immigration enforcement, including ICE-related fear and attendance loss. The committee then heard a detailed presentation on Proposition 98 from the Department of Finance and the Legislative Analyst’s Office. Finance explained that the Governor’s budget projects the minimum guarantee will rise by about $21.7 billion over three years, with a $5.6 billion settle-up obligation in 2025-26 intended to avoid overappropriation if revenues weaken. Finance also described revised reserve deposits and withdrawals, ending with about $4.1 billion in the Public School System Stabilization Account by 2026-27. The LAO said recent revenue collections were stronger than expected in the current year but warned that the outlook for 2026-27 is weaker and that stock-market-driven revenues remain volatile. The LAO supported maintaining reserves and one-time spending buffers, but recommended fully funding the guarantee and using other budget solutions rather than shifting the settle-up into future deficits. Members asked about the settle-up process, certification timeline, the effect of attendance declines tied to immigration enforcement, and wildfire-related impacts, including Pasadena Unified’s $4 million special appropriation. On LCFF and necessary small schools, Finance proposed a 2.41% COLA and about $2.2 billion in additional LCFF funding for districts and charters in 2026-27, plus a $30.7 million ongoing increase to raise the necessary small schools allowance by 20%. The LAO supported funding the COLA but said the small-school increase was not tied to a specific cost study and could be redesigned to better target small districts, noting that only a fraction of very small districts would benefit. Questions focused on how small schools access supplemental and concentration grants and how attendance recovery programs are being implemented. The Department of Education said only 130 LEAs had reported attendance recovery so far, likely because it is a new program with compliance requirements, though interest appears to be growing. FICMAT then reviewed the fiscal health of local districts, reporting an uptick in qualified and negative certifications, though still far below Great Recession levels. It said declining enrollment, rising special education costs, and higher labor and insurance costs are the biggest fiscal pressures, and that some districts are using fiscal stabilization plans and staff reductions ahead of second interim reports. FICMAT also discussed wildfire impacts on Pasadena Unified and Los Angeles Unified, explaining that Pasadena’s $4 million state appropriation was based on an early post-fire assessment and that the district is being monitored with the county office of education. Members raised concerns about Pasadena’s leadership, special education staffing shortages, AB 218 sexual abuse litigation costs, insurance premium increases, and the need for stronger prevention and training measures. FICMAT said SB 848 and related policies address some of those concerns by strengthening standards, training, and reporting requirements.

Transcript Highlights:

• If this committee is looking for funds to support victim services, I have found the funds.
• Fund these great programs now.
• process for these funds.
• process for these funds.
• these funds.

Transcript Highlights:

• for in different funds, also a local revenue subfund of the general fund, and a capital projects fund
• for in different funds, also a local revenue subfund of the general fund and a capital projects fund
• , additional funding for special education, additional funding for transportation.
• we had problems with funding.
• include federal funding.

Summary: The House Education Committee heard public testimony on three bills focused on school district finances and education ombuds confidentiality. House Bill 2593, an OSPI request, would require school districts to maintain minimum general fund balances beginning in the 2031 school year, with OSPI calculating district-specific amounts and adopting rules. It would also require monthly financial reporting starting in 2028-29 and allow OSPI to withhold apportionment for late reporting or require repayment plans if districts fall below the minimum. Supporters, including OSPI and the prime sponsor, said the bill is intended to prevent districts from reaching binding financial conditions and to provide earlier intervention; opponents from WASDA, rural districts, and school boards argued it would reduce local control, create cash-flow problems, and impose rigid limits that do not fit different district circumstances. Several witnesses also raised concerns about the proposed maximum fund balance and the impact on districts with enrollment volatility, federal impact aid, or special project savings needs. The committee also heard House Bill 2551, which would let school districts with estimated ending fund balances at or below 3% of revenues seek OSPI approval to sell real property before entering binding financial conditions, with proceeds used to restore solvency rather than being deposited into capital or debt service funds. The prime sponsor and Tacoma School District testified that the bill would give districts flexibility to avoid deeper fiscal distress, while OSPI said it supported the concept but suggested a higher threshold and broader minimum fund balance policy. Testimony in opposition or concern focused on the risk of selling appreciating assets, the possibility of one-time sales being used to solve ongoing budget problems, and the need for stronger state funding rather than asset liquidation. The committee also heard House Bill 2440, which would make identifying information in Office of Education Ombuds complaint records confidential, allow limited disclosure by consent or under legislative or gubernatorial subpoena, and require release of a complainant’s own records with redactions; the bill was supported by the ombuds office and its sponsor as a way to protect complainants and encourage reporting. No votes or executive actions were taken. The committee closed the public hearings after hearing testimony and recorded sign-ins, and the chair noted that the bills could be eligible for executive action beginning the following Monday.

Transcript Highlights:

• Funding for CC has come from the general fund or has come from SIF, but there was no new funding awarded
• This funding used both SIF and ARPA funds, and I'll give you some details on that funding a little bit
• There have been many changes to the funding mechanism for this fund.
• the legacy fund, and those became a fixed asset for the legacy fund.
• the legacy fund, and those became a fixed asset for the legacy fund.

Summary: The committee received a compliance and budget update on Industrial Commission agencies and programs, including the Industrial Commission administrative office, the Oil and Gas Research Program, the Clean Sustainable Energy Authority, the State Energy Research Center, the Research Technology Park grant program, and related funds. Staff reviewed spending and balances for items such as electric grid resiliency grants, lignite research, enhanced oil recovery, the salt cavern business case study, and the new NDSU research and technology park grant. Members also discussed timing, carryover balances, matching requirements, and how some programs are structured to reimburse projects over several years rather than spend funds immediately. Karen Tyler of the Industrial Commission described the agency’s administrative budget, the grant management system nearing completion, and the transition to standalone audits and staffing after separating from other agencies. She also outlined the status of active grant rounds across lignite, oil and gas, renewable energy, outdoor heritage, and clean sustainable energy programs. Members asked about the length of active grants, demand for clean energy funding, and the possibility of future grant rounds. Tyler and members also discussed the salt cavern study, the need to better define its commercial value, and the research technology park grant’s cash-match requirement. Ron Ness then testified on enhanced oil recovery and broader oil and gas market conditions. He said North Dakota production remained steady, but future growth depends on infrastructure, longer laterals, and better use of natural gas and carbon dioxide for EOR. He described the state’s EOR grant round, the use of federal DOE funding to replace part of a state-funded project, and the expectation of additional grant rounds. Members asked about CO2 supply, storage, and the economics of using legacy fields and pipelines to extend oil production and support agriculture and industrial uses. The committee also heard from Bank of North Dakota President Don Morgan, who reviewed the bank’s mission, governance, lending verticals, disaster programs, and new initiatives. He said the bank is seeing deposit growth flatten and is responding to fintech competition by focusing on liquidity, risk management, and a new payment infrastructure initiative called Rough Rider Coin, which he emphasized is not crypto and not a public coin, but a banking payment rail for North Dakota institutions. Members asked about student loan rates, disaster lending, and how the bank’s lines of credit and balance sheet capacity are affected by deposit trends. Morgan said the bank remains profitable and continues to support agriculture, commerce, and industry through participation loans, student lending, and state-directed programs.

Transcript Highlights:

• funding.
• funding.
• funding.
• Projects Fund.
• funding this year.

Bills: SB234 , SB210 , SB243 , SB244 , SM16 , HB8

Committee: Senate House Education

Summary: The Senate Education Committee began by announcing that SB 210 would be rolled over to Friday and would not be heard. The committee then returned to SB 234, which would provide foster child school transportation funding statewide rather than only for Albuquerque Public Schools. Members adopted an amendment striking the APS-only language and making the bill statewide after testimony from the sponsor, PED, and others that foster youth transportation is a growing issue and should have its own funding stream. The committee discussed how the money might be distributed and whether the $1.2 million appropriation would be sufficient, then voted do pass on SB 234 as amended. The committee next heard HB 8, which creates a Higher Education Major Projects Fund for large capital projects that are difficult to fund through existing capital outlay processes. Testimony from the sponsor, LFC, HED, and university representatives explained that the bill would support projects such as the UNM School of Medicine, an NMSU multidisciplinary building, student housing, student life projects, and certain Division I athletic facilities, while requiring design readiness, institutional matches, and legislative oversight. Several senators raised concerns about the clarity of the prioritization process, the Division I-only athletics language, the recurring nature of future funding, and the relationship to other capital funding streams, but the committee ultimately voted do pass on HB 8. The committee then considered SB 243 and SB 244, nearly identical bills for UNM and NMSU that would each appropriate $5 million for student health, student support, nutrition, travel, scholarships, and other athletic department needs. Athletic directors testified that conference realignment, higher travel costs, nutrition demands, and new revenue-sharing/NIL obligations have increased expenses, and sponsors said the bills were intended as one-time appropriations. Some senators questioned whether the requests should be recurring or funded through university revenue rather than the state, but both bills received do pass recommendations. Finally, the committee heard SM 16, as amended, which asks HED to convene a task force to study parenting students in higher education and recommend ways to collect data and improve support. Supporters said better data is needed to understand barriers such as child care and transportation, and the memorial passed with a do pass recommendation. The committee then adjourned until Friday morning.

Transcript Highlights:

• Revolving Fund, as well as a more recently created Charter School Facility Revolving Fund.
• Fund.
• Was this new fund?
• First, we'll give you a funding overview of how our funding works at PSFA.
• The allowable uses of the funds.

Committee: House Public School Capital Outlay Oversight Task Force

Transcript Highlights:

• Legacy Fund, the Legacy Fund asset allocation...
• Or what's the cost to carry with a fund-to-fund manager?
• Yeah, about 15% for fund-to-funds.
• of the Legacy Fund distributions, there is a limit to... ...fund out of the Legacy Fund distributions
• funds.

Committee: Joint Legacy and Budget Stabilization Fund Advisory Board

Transcript Highlights:

• We have to fund that.
• Bandwidth to fund all of that.
• Just curious, given we had a conversation last year about funding and what was going to get funded: one
• In the second round of funding, there was funding specifically for this purpose that LEAs could opt into
• So for the 2021 funding, we had $150 million for the kit funding, and 941 LEAs opted into that of our

Summary: The committee heard a series of budget proposals focused on education finance, with repeated questions about whether the state’s investments are coordinated, targeted to the highest-need students, and likely to produce measurable results. On the first item, the administration proposed $1 million for a study of California’s curriculum framework, standards, and instructional materials process, plus $250,000 for supplemental ELA/ELD guidance. CDE and Finance said the study would examine how other states organize standards, frameworks, and adoptions, while the chair and members questioned why California has gone so long without updating some standards, what the study would actually accomplish, and whether the proposal was too vague to justify the cost. The issue was held open. The committee then took up a proposed $25 million statewide literacy network within the system of support. CCEE and CDE said the network would coordinate multiple existing literacy leads, create a clearinghouse of evidence-based resources, and improve coherence across the state’s many literacy initiatives. Members pressed on how a one-time, five-year allocation could support a long-term system, how the work would reach distressed and rural districts, and whether the proposal would translate into classroom change rather than just another layer of coordination. The issue was also held open. Next, the committee reviewed a $500 million proposal to expand literacy coaches and reading specialists and to create a math coaches program. CDE described the existing literacy coach cohorts as producing positive reports from participating LEAs, while the LAO recommended modifications, especially for the math coach portion, including limiting eligibility to elementary schools, setting minimum grant amounts, directing funds to eligible school sites, and making eligibility automatic rather than application-based. Members focused on whether coaches were actually being placed at the schools with the greatest need and whether the state has a coherent long-term strategy for literacy and math investments. The committee also heard a $40 million proposal for training and implementation of K-2 reading difficulty screeners, which the LAO said was reasonable but could be reduced because $25 million had already been provided for training; CDE said the new funds were needed for full implementation, procurement, and sustainability. Finally, the committee heard a $10 million proposal for a developmentally appropriate TK multilingual learner screener, with CDE explaining why the preschool language-identification process is different from K-12 EL assessment and the chair asking staff to explore whether a single, more consistent approach could be developed. The meeting concluded with a presentation on universal school meals and kitchen infrastructure, including a $31.5 million backfill, an $84.1 million increase for projected meal growth, a COLA adjustment, and $150 million for kitchen upgrades and training to support freshly prepared meals.

Transcript Highlights:

• Yes, we've allocated funding for that, or we have federal funding for that.
• funds, which is $568,000 in General Fund in 2026-27, and then a little less, $925,000 General Fund ongoing
• City and County funding.
• City County funding.
• funding.

Summary: The committee heard an extensive Department of Social Services presentation on child care budget issues, including the Governor’s proposed 2026-27 budget, federal CCDF changes, Prop. 64 revenue adjustments, and a one-time $11.5 million disaster-related infrastructure grant for licensed child care facilities affected by 2025 declared disasters. DSS said federal formula updates and lower Prop. 64 revenues would reduce funding and could result in about 4,176 CCTR slots being reduced, but the department said it was working to avoid impacts to currently enrolled children. The LAO supported aligning general child care funding with lower revenues and asked for more detail on the disaster grant. Members pressed DSS and Finance on why reductions were not being backfilled and why so many awarded slots remain uncontracted or unused; DSS said delays are largely due to providers building new infrastructure, licensing, staffing, and enrollment challenges, and that some unspent funds revert to the General Fund. The committee also discussed whether some contract dollars should be shifted to vouchers and whether more flexibility should be allowed for infrastructure and expansion costs. A second panel focused on the state’s commitment to expand child care and on rate reform. DSS reported that nearly 125,000 new slots have been awarded since 2021-22, but speakers from Stanislaus County Office of Education, Parent Voices California, and the California Budget and Policy Center argued that unmet need remains large and that the system still leaves many families without access. Stanislaus County described a large local shortage of infant and toddler care and said reimbursement disparities between child care programs and state preschool create disincentives for providers. Parent Voices gave testimony about the burdens and instability families face when trying to access care, especially for survivors and low-income parents, and called for a universal, publicly funded system. The Budget Center said only about 16% of eligible children were enrolled in 2024, urged expansion across the mixed delivery system rather than concentrating investment in TK, and called for faster rate reform and new revenue. LAO estimated that bringing certain CCTR adjustment factors up to CSPP levels would cost $88 million to $131 million ongoing. Members and witnesses discussed the single rate structure, automation needs, and the need for deadlines and a ramp-up plan; DSS said the goal is to eliminate disparities, but that policy decisions are still needed before automation can proceed. The committee then reviewed several trailer bill proposals. DSS outlined a 2026-27 COLA proposal that would apply a 2.41% increase through cost-of-care-plus payments, though the department said it had inadvertently excluded CalWORKs Child Care and the Emergency Child Care Bridge Program and would revise the proposal; LAO recommended making the COLA methodology uniform across programs. DSS also proposed replacing the market rate survey with the federally approved alternative methodology on a triennial schedule, limiting temporary absences in family child care homes to 20% of monthly hours, defining excessive unexplained absences as more than 30 days in a year, and aligning family fee deductions with new federal requirements so providers receive the full voucher value. Members generally supported the temporary absence change and asked about implementation timing for the family fee deduction, with DSS saying it was in contact with Riverside County. The committee also heard a brief update on the Early Childhood Policy Council reappropriation, which would extend unused funds through June 30, 2028 because prior costs came in higher than expected.

Transcript Highlights:

• That would be general fund, special funds, and federal funds, as well as the state contingency funds.
• That would be general fund, special funds, and federal funds, and then the state contingency funds as
• Could you and your team send the funds that you use as peer funds, these 108 funds?
• It looks like it's probably different. ...funds that you use as peer funds, these 108 funds.
• One structure is a fund-to-fund structure.

Summary: The Budget Section met with a quorum, approved the December 10, 2025 minutes, and received a general fund and revenue update from the Office of Management and Budget. OMB reported the state was about $2 million ahead of forecast biennium-to-date, with an estimated ending general fund balance of about $397.5 million. Joe Morset also reviewed balances in major funds, oil tax revenues, interest income, federal grant reporting, fiscal irregularities, the voluntary separation incentive program, vacancy savings, and the FTE pool. Members asked about the higher-than-forecast interest income, the effective oil tax rate and stripper-well production, the impact of temporary pay adjustments and vacancy savings, and whether the voluntary separation program could reduce institutional knowledge or shift duties to remaining staff. The committee then approved four Emergency Commission requests: $5.26 million for DPI to support an AI-enabled tutoring platform, $105,000 from the general fund contingency for Corrections GPS monitoring, about $1.963 million for HHS SPACES eligibility system upgrades tied to Medicaid work requirements, and about $1.2 million for SNAP eligibility IT improvements. Legislative Council reported remaining interim spending authority after those approvals, and NDIT gave an update on digital accessibility compliance efforts, saying the state has made substantial progress on websites and PDFs but that applications will take longer to remediate. NDIT also reported on the Infinite Campus student information system rollout, noting data migration remains the biggest challenge and that a supplemental vendor is being brought in to help get districts ready for summer go-live. Greg Hoffman then gave a brief update on NDIT’s operational fund, saying cash remains negative in PeopleSoft but accounts receivable keeps the fund functioning within federal limits. The Supreme Court reported on its new and vacant FTE funding pool, saying it has filled 7 of 10 new positions and has realized some vacancy savings, and Legislative Council provided a similar report for the legislative branch along with a reminder that budget action reports are available online. The Department of Transportation presented its Flexible Transportation Fund, explaining the fund’s allocation formulas and ranking process, and sought Budget Section approval for two projects over the $10 million threshold: a Medora city streets and sidewalk project and a Cass County bridge replacement. Members questioned whether funding Medora streets could set a precedent for city street reconstruction and whether the bridge application process fully reflects statewide needs. DOT said the projects were scored competitively and that the bridge list does not capture all deficiencies statewide.

Transcript Highlights:

• fund revenue.
• The MRF fund, this security education fund, had been depleted.
• fund.
• We'd like to be fully funded. ...funded.
• We're fully funded from the Dental Fund.

Committee: House House Appropriations & Finance

Transcript Highlights:

• for the fund.
• So then why do we need other funds expenditure if they're still funding?
• funds.
• funded.
• be funding them.

Summary: The Emergency Board met on June 17, 2026, and approved a series of subcommittee recommendations, mostly on consent, related to federal grant applications, agency funding adjustments, and position authority. Early actions included approval of four federal grant applications from natural resources agencies, three public safety grant applications, a one-time increase for Judicial Department court security, retroactive approval for an AmeriCorps volunteer-generation grant, and a $7.5 million allocation to Southern Oregon University from a special appropriation for short-term financial stability. Members supporting the SOU item emphasized the university’s structural deficits, declining enrollment, and the need for a long-term higher education plan; several members voted no or raised concerns about sustainability, but the motion passed. The board also approved a federal apprenticeship expansion grant for the Higher Education Coordinating Commission, a school nutrition equipment grant for the Department of Education, and an Oregon Health Authority request tied to Medicaid community engagement requirements under H.R. 1. Public safety items included funding for Oregon Military Department readiness facilities, a report on the stalled juvenile justice information system modernization project with a follow-up viability report due in 2026, and a statewide evacuation planning tool for emergency management. The evacuation tool drew strong support as a wildfire preparedness measure, with members noting it could significantly reduce alert times and save lives. A major point of debate was the Department of Justice request to add 16 permanent positions and increase other funds limitation for antitrust enforcement. Supporters argued the federal government has pulled back and Oregon needs capacity to pursue active cases and protect consumers; opponents objected to the process, the size of the expansion, and the incentive structure tied to settlements and awards. Despite those concerns, the motion passed. The board also approved Water Resources Department requests for the Water Well Abandonment, Repair and Replacement program, an assistant water master position in Washington County, and federal funding for Lower Umatilla Basin groundwater data collection. The water master item prompted questions about county cost shifts, but staff said the position would remain externally funded and would not be filled without those resources.

Transcript Highlights:

• I'll be going over the Local Control Funding Formula, but the bulk of unrestricted funding. for local
• We have enough funding to cover existing commitments and then funding for additional funding beyond that
• This brings total funding for the ELOP to $4.4 billion ongoing Proposition 98 General Fund.
• Currently, Tier 2 funding varies each year. Funding varies each year.
• Years to get that funding.

Transcript Highlights:

• We will not be using BHSA funds to fund nursing. Take it.
• We will not be using BHSA funds to fund nursing. Exactly.
• funding.
• Fund money.
• It's just that we need more funding. It's not enough funding.

Transcript Highlights:

• boating access funds.
• funding is expended.
• funding is expended.
• We find just a couple of sources of ongoing state funding. The funding is expended.
• It should be funded by California's General Fund.

Transcript Highlights:

• You can see the general fund, other funds, and the total pool for each agency.
• funds.
• from other funds?
• Fund appropriation.
• So we do not have funding to fund Highway 85 from the interstate to 200.

Committee: Joint Budget Section

Summary: The Budget Section met to approve prior minutes and receive a series of budget, revenue, and program updates from OMB, the Tax Department, DOT, DMR, and DPI. OMB reported that general fund revenues through May were about $76 million below the legislative forecast, driven mainly by individual income tax and sales tax shortfalls, though the biennium is still projected to end with a positive balance. OMB also reviewed oil price and production assumptions, the budget stabilization fund transfer above its cap, Legacy Fund performance, federal grant applications, fiscal irregularities, tobacco settlement proceeds, budget guidelines for agencies, vacancy savings, and the DAPL settlement, noting that most of the settlement funds had been deposited but a small amount of accrued interest would require a future deficiency request. The committee then considered Emergency Commission requests. It approved requests for Public Service Commission abandoned mine lands federal authority, an Attorney General FTE and related funding for criminal investigator work tied to the Office of Guardianship and Conservatorship, and a DPI transfer for bridge software costs. After discussion, the committee also approved DPI’s request for a $500,000 transfer for the food vendor program, despite questions about the program’s savings and cash-flow structure. Later, the Tax Commissioner presented the primary residence credit program, reporting that current biennium costs are expected to exceed the appropriation by about $22 million and explaining how the credit interacts with homestead and disabled veteran credits and the 3% property tax levy cap. The Legacy and Budget Stabilization Fund Advisory Board reported strong returns for both funds, and DOT sought and received approval for two flexible fund highway projects on ND 49 and ND 31. DOT also updated members on Highway 85 construction and said remaining flex fund dollars were essentially fully allocated. DMR reported on the abandoned well plugging and site reclamation fund, noting North Dakota’s relatively small orphan well inventory, current and projected fund balances, rising remediation costs, and a possible need to adjust the fund cap in future sessions. Finally, DPI outlined the new integrated formula gap funding program, explaining that it compensates school districts that cannot reach the assumed 60-mill local contribution because of the 3% levy cap; the first year’s gap funding totaled about $1.8 million, with future costs expected to grow.

Transcript Highlights:

• trust fund.
• /c> all lottery funds must go to fund all lottery funds must go to fund adequacy<01:21:22.239><c> public
• . fund. fund.
• </c> funded as part of the level funding. funded as part of the level funding.
• </c> pandemic funds. pandemic funds.

Committee: Senate Finance

Transcript Highlights:

• Restricted funds at FSU make up about 20% of our overall funding.
• funded, state funded, locally funded, or private resources.
• We're talking a lot about one-time funding versus recurring funding.
• I think ...enrollment-based funding and rolled out performance-based funding.
• Fund the unfunded mandates.

Summary: The Appropriations Committee on Higher Education met to examine how Florida’s state universities are funded and to begin discussing a possible university funding model. The panel included the State University System chancellor and CFOs from FSU, UF, FAMU, FAU, UNF, and UCF. Members first reviewed major cost drivers, which the universities said are broadly similar across institutions: wages and benefits, equipment and supplies, financial aid, professional services, utilities, IT, and maintenance. Several institutions noted unique pressures from geography, growth, research intensity, and mission, such as UCF’s size and engineering focus, UF’s land-grant and research enterprise, FAMU’s need to recruit top talent while serving a high-Pell student population, and FSU’s large facilities and research obligations. The chancellor also summarized systemwide cost growth since 2012-13, including higher health insurance, retirement, and salary costs, while noting tuition had been held flat. The committee then discussed other revenue sources, including auxiliaries, restricted funds, capital projects, and component units such as foundations and health systems. University leaders explained that many of these funds are restricted to specific purposes, and some, like UF Health, account for a large share of operating expenses. Members also discussed the current performance-based funding process. University representatives generally praised it for transparency, accountability, and its focus on student success, but said the heavy use of one-time funds, nonrecurring appropriations, and unfunded mandates makes long-term planning difficult. FSU and others argued that rising employee costs, waivers, and facilities expenses are not fully covered, while FAMU said performance funding has improved outcomes but can disadvantage institutions serving more low-income students. In response to questions about improvements, the universities suggested more recurring and predictable funding, better coverage of mandated costs, more flexibility in fees, and continued investment in research and strategic priorities. The chancellor said the Board of Governors is considering a version 3.0 of performance funding that would benchmark institutions against peers and Carnegie classifications. The committee also explored whether universities should have more flexibility to set out-of-state tuition and professional school tuition. Most university leaders favored giving boards of trustees more authority, while the chancellor cautioned that increasing out-of-state enrollment or tuition too much could affect legislative support. No votes were taken; the meeting ended with the chair thanking the panel and adjourning the committee.