Transcript Highlights:

• But I think the major downside is that this makes the due-to-choose budget deficits worse.
• We'd recommend doing that as part of a broader plan to shrink the state's structural deficit.
• That is going to mean spending reductions.
• We'd recommend doing that as part of a broader plan to shrink the state's structural deficit.
• That is going to mean spending reductions.

Summary: The Assembly Budget Subcommittee on Education Finance held its first hearing of the year on Proposition 98, focusing on the Governor’s budget estimates for the three-year budget window, the Public School System Stabilization Account (PSSA), and repayment of education deferrals. The Department of Finance said the minimum guarantee would rise by about $21.7 billion over the 2025 Budget Act, with increases in each year, full repayment of the existing settle-up obligation in 2024-25, a new $5.6 billion settle-up obligation proposed for 2025-26, and a higher guarantee in 2026-27. Finance also noted revised downward estimates for transitional kindergarten attendance and Los Angeles County property tax reimbursements, and said community colleges would be funded above the split because of enrollment growth. The Legislative Analyst’s Office emphasized fiscal risk and volatility, warning that recent revenue gains are tied heavily to the stock market and tech sector and could reverse quickly. The LAO argued the Governor’s proposed $5.6 billion delay shifts risk into future years and recommended instead fully funding the current estimate, making a larger reserve deposit, considering advance payments or pension-related uses, and finding additional non-Prop 98 solutions to reduce the state’s structural deficit. On the reserve and deferral items, Finance described revised PSSA deposits and withdrawals that would leave about $4.1 billion in the reserve by 2026-27, and both Finance and the LAO supported paying off the remaining LCFF and SCFF deferrals as good fiscal practice. Committee members questioned the size of the settle-up amount, the degree of revenue volatility, the use of the reserve, and the ongoing K-12/community college split. Finance said the proposal is meant to avoid overappropriation if revenues fall, while the LAO said a buffer of roughly $3.5 billion would address typical forecasting risk. Public commenters, including school boards, county offices of education, teachers, and advocacy groups, largely opposed the $5.6 billion withholding or settle-up delay, calling it a manipulation of Prop. 98 and urging full funding and more stable revenue solutions. Several speakers also urged dedicated funding for students experiencing homelessness. The hearing ended with no vote, and the chair announced that broader program discussions would occur in later hearings.

Transcript Highlights:

• reduction of the healthcare access fund. reduction of the healthcare access fund.
• Line 1361 is a reduction to funding.
• Line 1377 is a reduction to grants.
• <00:13:39.120> grant the ambulance operating deficit grant the ambulance operating deficit
• And my to proposed reductions.

Bills: HF2435

Keywords: healthcare, dementia services, public health funding, opioid prevention, women's health, community health boards, mental health, 1183, house

Transcript Highlights:

• , or structural deficit.
• . saying stigma reduction.
• We acknowledge there's about a $1.6 million reduction that results to the CCR: $720,000 will be a reduction
• $1.6 million reduction that a result to the CCR. 720,000 will be a reduction from Prop 99, and then there's
• an $850,000 reduction related to Prop 56.

Keywords: 988, house, all

Transcript Highlights:

• I was like, uh oh, I mean, the, the annual budget deficit is off the charts with how much money we're
• Their instructions would increase the deficit by 3.3 trillion over a 10-year period.
• Increase the deficit up to 5.7 trillion over 10 years.
• One is, uh, a sort of potentially an overall reduction at the federal royalty rate.
• I know that Reduction, federal reduction is not available at this point in time, but We, we get a significant

Transcript Highlights:

• Um, for the DHS target, you mentioned that includes inflationary reductions.
• <00:15:05.199> Does<00:15:05.360> that inflationary reductions.
• Does that inflationary reductions.
• inflationary reductions for disability waiverss?
• $1.3 second bianium uh to a deficit of $1.3 second bianium uh to a deficit of $1.3 billion. billion

Keywords: 919, house, all

Summary: House Democratic leaders and House Republican leaders announced a compromise set of budget targets reached Friday night, describing it as a numbers-only deal that leaves policy issues aside. They said the targets are the first step in the budget process: House committee chairs will write bills to fit the targets, those bills will go to Ways and Means, and later leaders will negotiate global targets with the governor and Senate. Leaders emphasized that the agreement reflects compromise rather than either party’s ideal budget, and that they will continue talks with Governor Walz and the Senate over the next several weeks. The speakers highlighted what was not included in the deal, saying it does not target paid family and medical leave, earned sick and safe time, reproductive rights, or universal school meals. They said the House priorities that did make it in include housing, education, pensions, public safety, and transportation. On education, they said the compromise provides $40 million in new money in the first biennium for the READ Act and no cuts in either biennium, contrasting that with larger cuts in the governor’s and Senate proposals. They also said schools could still choose to fund unemployment insurance for school workers from existing resources, though it was not earmarked in the targets. Leaders said the agreement leaves room for committee chairs to make choices within the targets, including in health and human services, where they described the target as a reduction in projected growth rather than a cut to existing appropriations. They said the budget plan sets aside discretionary inflation adjustments in the first biennium while preserving inflation indexing for items like the K-12 formula. They also said the deal improves the state’s long-term balance, with a projected $1.6 billion balance in the first biennium and a $1.3 billion deficit in the second, and that the House’s numbers do not include the same revenue assumptions as the governor’s and Senate’s plans. In questions, leaders said conference committees will require majority support from both House and Senate conferees, and that the House will send equal numbers of Democratic and Republican conferees. They said the bonding bill size is still under discussion, but the adopted numbers would allow for roughly a $700 million general obligation bill. They also said large state spending for professional sports facilities is likely over, and explained that the press conference was held without Republican leaders for logistical reasons after the deal was reached late Friday.

Transcript Highlights:

• Large the annual deficit is.
• About the federal deficit, but I mean, if the feds don't resolve the deficit issue, we're in deeper trouble
• They'll start to feel a minor reduction in revenue.
• I mean, a 10% reduction is those just shutters.
• I know some of that reduction has already happened.

Transcript Highlights:

• we're already in a deficit. we're already in a deficit.
• Uh we're already in a deficit situation. Uh we're already in a deficit situation.
• <00:22:14.000> in their inability through reduction in their inability through reduction in
• The deficit budget was over 80 million.
• 111 is the lapse deficit right now?

Keywords: 928, house, all

Summary: The Fiscal Committee met on June 20, 2025 and first approved the May 16 minutes and the non-removed items on the consent calendar. It then took up a Health and Human Services item for $5 million in additional nursing facility payments (FIS 25158). HHS explained the transfer was for private and county nursing facilities and was the third and final transfer in FY25, funded through federal matching dollars, county cap funds, and general funds. Members asked about the size of the transfer, whether it signaled future shortfalls, and how projections were developed; HHS said the request reflected updated estimates and that they did not expect similarly large transfers going forward. The committee adopted the item. The committee also considered an ARPA-related item to remove a line from a funding request because the issue had been resolved and the positions/funds were no longer needed. Members approved the item with that line removed. Commissioner Caswell then answered questions about ARPA spending authority, saying remaining projects must be expended by December 31, 2026 and that the item was intended to preserve authority for ongoing capital projects; any unspent funds would revert to the federal government. Members noted the recurring nature of these ARPA adjustments and the need to keep tracking deadlines. The Department of Corrections presented several items, including a $10 million request tied to staffing shortages and overtime costs, plus additional corrections-related funding items. Interim commissioner John Skipa said 18 employees had received preliminary layoff notices pending final budget approval. He and staff said the overtime need was driven by staffing shortages, later collective bargaining pay increases, and double-time compensation for uniform officers forced into overtime; they also said one housing unit section had been closed to reduce staffing pressure. In response to questions about morale and operational risk, Skipa said the department was under strain, that leadership was in transition, and that staffing or budget reductions could create litigation risk. The committee also heard about the Site Evaluation Committee’s budget shortfall, which was attributed to fewer new facility applications but continued casework and public engagement, and approved that item. Finally, members discussed a YDC claims administration item, questioning the role and cost of the Verald Dana consultant; staff said the firm handles intake and processing of claims for the Attorney General’s office and had been involved since the claims process was created. Several items were adopted after brief discussion.

Transcript Highlights:

• <00:45:59.680> to and the change reduces the deficit to and the change reduces the deficit
• would not entirely solve the deficit. would not entirely solve the deficit.
• <01:03:33.119> is hasn't been this large of a deficit is hasn't been this large of a deficit
• by turning the program's deficit into a college budget deficit for every one of the 88,000 students
• deficit by turning the program's deficit deficit by turning the program's deficit into<01:05:11.920

Keywords: 1187, senate, all

Transcript Highlights:

• We oppose the $20 million BHSA reduction. Thank you. Thank you.
• We oppose the $20 million BHSA reduction. Thank you.
• So I think for the reductions, those are the primary two proposals.
• Last item is CalRx reduction.
• Last item is Calorex reduction.

Summary: The Assembly Budget Subcommittee on Health held an informational hearing on the Governor’s May Revision, focusing first on the Commission on Behavioral Health, then EMSA, and then the California Department of Public Health (CDPH). The Department of Finance said the state faces a third consecutive deficit and that the May Revision includes difficult trade-offs, including proposed eliminations or reversions of some behavioral health and public health funds. The LAO echoed concern about the structural deficit and said it was still awaiting some budget details before offering a full analysis. For the Commission on Behavioral Health, Finance proposed eliminating $20 million in Mental Health Wellness Act funds, arguing the money would help offset General Fund costs and noting future Proposition 1 innovation funding. The commission strongly opposed the cut, saying it would eliminate or delay launch-ready grants for early childhood supports, full-service partnerships, and peer respite, and would eventually end ongoing grant programming. Several advocates and commissioners testified that the funds support underserved communities and that Proposition 1 is not a substitute for the existing programs. The chair asked Finance to look for alternatives, but no vote was taken. EMSA presented mostly technical budget adjustments: increased authority for the California Poison Control System, a correction to EMSIS funding, and a reappropriation for enterprise services and data management. CDPH then reviewed a broader set of May Revision proposals, including reversions from the California Reducing Disparities Project, workforce development, STD prevention, hepatitis C prevention, hospice, and extreme heat funding, as well as a new generative AI pilot for health facility survey reporting. Members raised concerns about cuts to CRDP and gender health equity programs, especially because many grants are mid-contract and serve underserved communities; CDPH said the reversions were part of solving the deficit and that CRDP had been successful, while also clarifying that abortion.ca.gov would not be eliminated. Public comment was overwhelmingly opposed to the CRDP and related cuts, with many speakers describing the programs as life-saving and cost-effective. No formal votes or actions were taken during the hearing.

Transcript Highlights:

• , presumptive eligibility, a reduction, presumptive eligibility, a reduction, not<02:16:20.800>
• . reductions. reductions. there's<02:42:44.560> going<02:42:44.720> to<02:42:44.960>
• HR1 will balloon the federal deficit. HR1 will balloon the federal deficit.
• HR1 will balloon the federal deficit. HR1 will balloon the federal deficit.
• disparity grant reduction.

Keywords: 981, all

Transcript Highlights:

• And so I think we should view California... ...to our deficit.
• It rescinds unobligated funds from the Inflation Reduction Act for certain U.S.
• It rescinds unobligated funds from the Inflation Reduction Act for certain U.S.
• For the Inflation Reduction Act repeals and rescissions, it repeals the Greenhouse Gas Reduction Fund
• We're also concerned that the reductions of staff and the elimination of the department, the U.S.

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held its fifth hearing of the year to examine the newly enacted federal H.R. 1 and its effects on California. Members and the chair described the law as a major threat to state health, food, education, and climate programs, and emphasized that California would not be able to fully backfill the federal cuts. Several members also highlighted the bill’s tax provisions, including temporary deductions for tips, overtime, seniors, and auto loan interest, while warning that the largest benefits flow to higher-income taxpayers and that major cuts to Medi-Cal, CalFresh, and clean-energy incentives are delayed or phased in over time. The Legislative Analyst’s Office and the Department of Finance presented detailed overviews of the bill’s likely impacts and implementation timelines. They identified the main affected areas as health care coverage and financing, food assistance, higher education, personal income taxes, and clean-energy/electric-vehicle credits. They explained that H.R. 1 limits provider taxes used to finance Medi-Cal, adds work and redetermination requirements, restricts CalFresh eligibility and increases state costs, changes student loan and Pell Grant rules, extends and modifies federal tax provisions, and phases out many clean-energy credits. Finance also noted major rescissions of Inflation Reduction Act funds, new border and immigration enforcement spending, and the possibility of PAYGO sequestration if Congress does not act to offset the deficit increase. During member questions, the committee focused on likely enrollment losses, administrative burdens, and fiscal exposure for the state and counties. Witnesses said many details still depend on federal guidance, but they estimated significant impacts on Medi-Cal, CalFresh, and graduate/professional student borrowing, and noted that California’s high CalFresh error rate could increase state costs. UC testified that the elimination of Graduate PLUS loans would affect thousands of professional students, especially in health, law, and other high-cost programs. Members asked for follow-up data on county, health, and tax impacts, and staff agreed to provide additional tables and estimates as implementation guidance becomes clearer. Public commenters from counties, early childhood advocates, health coalitions, disability rights groups, immigrant-rights organizations, and other stakeholders urged the Legislature to mitigate the law’s effects. They warned of higher county costs, reduced access to health care and food assistance, increased administrative burdens, and harm to children, immigrants, people with disabilities, and low-income families. Several urged new state revenue solutions and stronger protections for Medi-Cal, CalFresh, child care, and home- and community-based services. No votes were taken; the hearing was informational and ended with a commitment to continue monitoring federal guidance and to work on state responses in the budget process.

Transcript Highlights:

• While the most painful cuts, such as reductions to Medi-Cal and CalFresh, are delayed until after next
• Medicaid, agriculture, which includes SNAP, Inflation Reduction Act, repeals and rescissions, energy
• For the Inflation Reduction Act Repeals and Rescissions, it repeals the green house gas reduction fund
• So all of the programs under the Inflation Reduction Act that are being rescinded.
• We're also concerned that the reductions of staff and the elimination of the department the U.S.

Keywords: 988, house, all

Transcript Highlights:

• target $2 trillion in total spending reductions.
• states Minnesota could see a reduction states Minnesota could see a reduction of<00:43:30.480>
• We can talk about our federal deficit.
• We can talk about our federal deficit.
• We can talk about our federal deficit.

Keywords: 1187, senate, all

Transcript Highlights:

• we add to the deficits.
• It is a reduction in future clear.
• deficit in 2026 because of the bill. deficit in 2026 because of the bill.
• Finally in to the deficits.
• add to the deficits.

Keywords: U.S. House of Representatives Floor Proceedings on Friday, June 6, 2025, 1012, house, all

Transcript Highlights:

• We're headed toward a deficit, and that was a Democrat-created deficit back in '23 and '24.
• a Democratcreated deficit back in 23 was a Democratcreated deficit back in 23 and<00:07:34.880> 24
• into the state at a time when we're facing a deficit. >> Yeah.
• <00:22:51.679> in years ago and we did make a reduction in years ago and we did make a reduction
• a bite out of that impending deficit a bite out of that impending deficit that<00:22:56.880>

Keywords: 919, house, all

Summary: House Republican leaders outlined their agenda for the tied legislative session, saying their priorities are to stop fraud, make Minnesota more affordable, safer, and more competitive, and reduce mandates while raising education standards. They highlighted several planned bills, including an independent inspector general (HF 1), a “Fraud Isn’t Free” measure to impose consequences on agencies and commissioners that allow fraud, and statutory guidelines for high-fraud-risk programs. They also said they want to lower health care costs through a permanent reinsurance program and cost defrayal for new mandates, study property tax increases, conform state tax law to federal changes on tips, overtime, and scholarship tax credits, and avoid any tax increases. On public safety, Republicans said they will pursue tougher penalties for repeat offenders and repeat gun crimes, judicial accountability, and a school safety package that would support public and nonpublic schools, school safety personnel, and facility improvements. In education, they emphasized school choice tax credits, reading proficiency, and curriculum focused on basic academic fundamentals. They also said they want to protect and expand mining, reform permitting, end the nuclear moratorium, and make the state more attractive to businesses. On housing, one member said they are working on a more targeted affordable housing package rather than a broad sweeping bill. A substantial portion of the discussion focused on immigration and cooperation with federal authorities. Republicans said they want a statewide framework for local law enforcement cooperation with federal immigration enforcement, referencing House File 16 and saying they are open to changes and bipartisan work. They argued that local and state cooperation would improve safety and prevent situations where criminal suspects are released into the community. They also said Democrats have blocked similar efforts in committee and on the House floor. In response to questions, leaders said there is no current appetite for sports betting, bonding will be discussed but there are no promises, and they do not support the 2024 omnibus bill model. They said they are not interested in vaccine mandates, but will consider Medicaid funding impacts and other health-related proposals if bills are introduced. They also said election integrity measures such as voter ID, provisional ballots, and voter-roll cleanup will remain priorities. Throughout, leaders said they expect a bipartisan process in the tied House and expressed hope that both parties can work together on some issues.

Transcript Highlights:

• NOW THE DEPARTMENT WILL HAVE A DEFICIT FOR THE CURRENT YEAR AND WE WILL DEAL WITH THAT AS WE GET TO IT
• THE STATE HAS FUNDED 5.7 MILLION FOR CHILD ADVOCACY CENTERS TO OFFSET THE DEFICITS WE'VE SEEN IN VOCA
• SO AGAIN JUVENILE ARRESTS, ALMOST A 70% PERCENT REDUCTION OVER THE LAST SEVEN YEARS.
• AGAIN, SIGNIFICANT REDUCTIONS.
• THEY ARE STARTING THE YEAR OFF WITH A $25 MILLION DEFICIT.

Keywords: 999, senate, all

Transcript Highlights:

• Solve a budget deficit of $1.9 trillion where would you go?
• They pushed out a bunch of projected reductions that weren't necessarily reductions from today's spending
• They were reductions from tomorrow's projected spending.
• To us being able to close that $1.9 trillion annual deficit.
• The annual deficits are not going to be solved by this budget reconciliation.

Transcript Highlights:

• State spending on special education is driving us closer to a more than $5 billion deficit, according
• State spending on special education is driving us closer to a more than $5 billion deficit, according
• But it could be across the board that there would have to be a reduction in some area.
• But it could be across the board that there would have to be a reduction in some area.
• But it could be across the board that there would have to be a reduction in some area.

Keywords: 1187, senate, all

Bills: SCR56, SCR25, SCR79, SCR179, SCR181, SCR182, SR54, SR22, SR81, SR174, SR176, SR177

Keywords: lifeguards, first responders, public safety, ocean safety, emergency response, community wellbeing, Pohakuloa, condemnation, federal government, land sovereignty, Hawaii, native Hawaiians, public trust land, invasive species, octocoral, Pearl Harbor, environment, Navy responsibility, marine ecosystem, ecosystem preservation

Summary: The committee first heard SCR 56 and SR 54, which recognize open water lifeguards as first responders and acknowledge their role in emergency response and public safety. Testifiers from the Hawaiian Lifeguard Association, Hawaii Water Safety Coalition, Honolulu and Kauai Ocean Safety, and a junior guard all strongly supported the resolutions, describing lifeguards as often first on scene for drownings, cardiac arrest, spinal injuries, flooding rescues, and other emergencies. Several speakers said formal recognition would better reflect the work lifeguards already do and could improve training, support services, pay equity, and access to benefits such as retirement and trauma resources. Members asked about what legal or administrative changes would follow, and the discussion suggested the resolutions were a first step toward broader recognition and related policy changes. The committee then took up SCR 25 and SR 22, opposing federal condemnation or threats of condemnation to take control of Pohakuloa and other state land. The Office of Hawaiian Affairs supported the resolutions, saying Pohakuloa has deep historical, cultural, genealogical, and ecological significance and that any future decisions should go through existing state legal processes with meaningful consultation with Native Hawaiians. Members discussed the role of the governor’s advisory process, the need to follow DLNR/BLNR procedures, and concerns about environmental and health violations at the site. The committee also noted 14 written testimonies in support. Next, the committee heard SCR 79 and SR 81, urging the U.S. Navy to take responsibility for eradicating octocoral and other invasive species in Pearl Harbor waters, including West, Middle, and East Loch. DLNR supported the resolutions, and testimony focused on the spread of invasive coral, the difficulty of eradication, and the limited access state agencies have inside Pearl Harbor. Members raised concerns about contamination, responsibility for the problem, and whether the Navy should fund or carry out the cleanup; DLNR said it could not speak to broader contamination issues but supported the resolution as a way to encourage action. The committee then began discussion of SCR 179 and SR 174, which urge Maui County to enforce fire code provisions on brush clearance, fuel breaks, roadside vegetation clearing, and emergency access, with written support noted from Aloha Independent Living Hawaii.

Transcript Highlights:

• reduction value. reduction value.
• We heard health outcomes, reductions in heart disease and liver disease.
• <01:16:49.920> We<01:16:50.200> heard, reduction in heart attacks.
• We heard, reduction in heart attacks.
• <01:16:52.760> in you know, health outcomes, reductions in you know, health outcomes, reductions

Bills: HF4493, HF3133, HF4595, HF4143, HF4142, HF3756, HF4289, HF1724, HF2291, HF4568, HF4547

Keywords: opioid use disorder, OUD, medication-assisted treatment, MAT, pharmacist prescribing, pharmacy practice, controlled substances, Schedule III, Schedule IV, Schedule V, DEA registration, Board of Pharmacy, substance use disorder, addiction treatment, buprenorphine, naltrexone, harm reduction, prescription authority, pharmacist intern, Minnesota pharmacy law