Transcript Highlights:

• </c> from the Department of Army G4 grant. from the Department of Army G4 grant.
• She added that there are also three grants: one sewer grant requesting reallocation and two grants supporting
• reallocation and two grant uh requesting reallocation and two grants<00:21:37.760><c> supporting</c>
• </c> probably have grant funds on on hand. probably have grant funds on on hand.
• </c> under this grant? under this grant?

Summary: The Capital Projects and Bond Oversight Committee met on July 16 and approved the June meeting minutes. Members received six information items, including quarterly capital project status reports, notice that the committee did not approve a Kentucky Community and Technical College System fire academy maintenance building project, reports of upcoming school district debt issues, leasehold improvements, a Northern Kentucky University asset preservation revision, and prior debt issues from the School Facilities Construction Commission. The committee then heard five project reports from the Finance and Administration Cabinet. Three new projects were presented for action and approved: a $1.3 million White Haven rest area renovation in Paducah, a $6.5 million Boone County north- and southbound rest area remodel and expansion to add truck parking, and a $4.5 million Bluegrass Station Building 14 modernization project funded by a Department of the Army grant. Members asked several questions about the Boone County rest area project, including truck congestion, restroom capacity, staffing, and the need to keep the facility open during construction; Transportation staff explained the project is meant to expand parking and improve facilities. Two emergency projects were reported with no action required: an amended Fort Boonboro flood remediation project in Madison County and a Kentucky Horse Park emergency flood repair project. The committee also approved three new leases after hearing from the Division of Real Properties. The leases included Department of Corrections parking spaces in Louisville, a Kentucky State Police office and lab lease in Hopkins County, and an Education and Labor Cabinet lease in Kenton County that was negotiated at a lower rate. Members asked about lease terms and how local match or negotiated rates were set, and staff explained that lease lengths are generally set by lessors and that the Kenton County lease was reduced through direct negotiation to stay within budget. A separate lease modification for the Cabinet for Health and Family Services, involving reception-area renovations, was reported with no action required. Finally, the committee considered seven grant reallocations from the Kentucky Infrastructure Authority, including six Clean Water Program grants and one EKSF-related reallocation. Members questioned whether some flood-related water infrastructure work, especially an Olive Branch subdivision storage tank project, fit the intended purpose of the funding; staff explained the reallocations were needed to keep federal dollars from being returned and to move funds to eligible projects. The committee initially failed to approve the package on a 4-4 vote, but after a member noted a missed vote and changed to yes, the grants passed with favorable expression. The committee then began hearing three Kentucky Product Development Initiative grants for industrial site development in Russell County, Cumberland County, and Berea/Madison County, with members asking about match requirements, funding sources, and the scope of the projects; the transcript ends during the roll call on those grants.

Transcript Highlights:

• are justified and to grant specific remedies.
• I'm also speaking on two grants. And I'm also speaking on two grants.
• On the security grant—on the security grant, did we go to it?
• Right Grant. Here we go.
• I would like to show support for the Wright Grant and the VOCA funding. chime in for the right grant.

Transcript Highlights:

• It prohibits certain officers and family members from receiving grants that are distributed under the
• And all I did during COVID was grant after grant after grant after grant after grant after grant, and
• It's grants 101 that you should not double-dip.
• If you already got a grant from someone, you shouldn't get another grant from somebody else.
• It's just, again, it's grants 101.

Bills: HB2523 , HB2606 , HB2684 , HJM4012

Committee: House Technology, Economic Development, & Veterans

Keywords: community reinvestment, housing, local funding, urban development, economic revitalization, data protection, privacy, performance measures, reporting requirements, office of privacy, social disadvantage, business certification, state guidelines, economic equity, minority-owned businesses, combat veterans, support, military service, injury compensation, veteran affairs

Transcript Highlights:

• Seventy-seven of these grants have only two closed to date.
• Johns County, and he's got plenty of grant money, but has to give away the grant money because there's
• Students are either paying from their own pockets or they have a grant, a federal grant.
• But our grant manager has a...
• Well, it's more of a grants processing system.

Summary: The Higher Education Budget Subcommittee met to review funding models for the Florida College System and district workforce education programs, with an emphasis on how new dollars are allocated in the program fund and how performance and targeted funding are incorporated. Chancellor Hebda explained the Florida College System model, including base program funding, student success and pipeline funds, performance incentives for industry certifications, and the 2022 president-developed formula that weights enrollment, workforce enrollment, completions, small-college factors, and regional cost differences, plus a targeted funding floor for colleges below a minimum per-FTE level. Vice Chancellor Goodman then outlined the district workforce model, which uses lagged enrollment, program cost weights, local revenue offsets, small-district adjustments, and unmet-need calculations to distribute lump-sum appropriations to school districts offering workforce education. The department also provided updates on several grant programs and funding delays. Goodman said the Workforce Development Incentive Grant, Pathways to Career Opportunities Grant, Graduation Alternative to Traditional Education Startup Grant, and teacher apprenticeship/mentor bonus programs all involve multi-year awards and often require reversions and reappropriations because projects are delayed, extended, or not fully obligated by year-end. She said the department is moving toward an electronic grants system and had already adjusted internal deadlines to speed awards, while acknowledging some reimbursement delays and explaining that mentor bonuses for teacher apprentices will not be paid until the first cohort reaches the statutory timing requirement. Members asked about tracking whether CTE students work in their trained fields, how Xello is used to inform students about career pathways, how FTE is calculated, whether the funding formulas could encourage growth over quality, and how students with disabilities are counted in workforce funding. Questions also focused on tuition, enrollment trends, and the gap between college and university funding. The committee heard that tuition has remained flat for more than a decade, enrollment has rebounded from COVID and is projected to exceed pre-pandemic levels, and the college system’s funding per FTE varies widely. Valencia College President Kathleen Plinsky testified in support of the proposed formula and an additional $200 million for the Florida College System, saying Valencia is the second-largest college in the state but ranks last in per-FTE funding, which has made it difficult to recruit and retain faculty and admit qualified students in high-demand programs like nursing. The committee took no vote and adjourned after the presentations and questions.

Transcript Highlights:

• </c> recently received a $3 million Grant recently received a $3 million Grant from<00:24:58.200><c>
• Who does the grant execution then?
• Who does the grant execution then?
• c> then</c><00:27:00.960><c> if</c> who does the grant execution then if who does the grant execution
• </c><00:37:42.040><c> funding</c> anticipating additional grant funding anticipating additional grant

Transcript Highlights:

• Our grants division has grown from administering a small number of state and federal grants of around
• Our grants division has grown from administering a small number of state and federal grants of around
• Proposition 64, and also the adult reentry grant program.
• Okay, and since you brought up the grants, I know that there's 50% of the BSCC grants that are awarded
• In terms of the grant programs or in terms of our...

Committee: Senate Rules

Summary: The Senate Committee on Rules met to consider several gubernatorial appointments and routine committee actions. The committee first approved, by unanimous 5-0 votes, appointments to the Alfred E. Alquist Seismic Safety Commission, the appointment of Lee Herrick as California Poet Laureate, a reference of bills to committees, and floor acknowledgments. Members then heard testimony from Trista Gonzalez, nominee to lead the Department of Tax and Fee Administration, who described her long career in tax administration, efforts to improve taxpayer compliance and service, readiness for the state’s lithium extraction tax, and the department’s work on online sales tax, cannabis, and tobacco enforcement. Senators asked about responsiveness to legislators, small business support, accountability, and enforcement; public commenters from tax and accounting groups supported her nomination. Her appointment advanced to the full Senate on a 5-0 vote. The committee also heard from Aaron McGuire, nominee to lead the Board of State and Community Corrections. He discussed the board’s expanded responsibilities, including annual detention-facility inspections, large grant programs for violence intervention and reentry, and the new in-custody death review division. Members questioned him about grant oversight, audit transparency, statutory authority for in-custody death reviews, and conditions in local detention facilities, especially in Los Angeles County juvenile facilities. McGuire said the board uses screening, site visits, audits, and compliance reviews to reduce fraud and ensure grant funds are used appropriately, and that trailer bill language had clarified access to records for death reviews. He also said staffing shortages remain a major issue in some juvenile facilities and that the board continues to work with counties and the courts to improve conditions. Public support came from nonprofit reentry providers and Giffords. His appointment also advanced to the full Senate on a 5-0 vote.

Transcript Highlights:

• Our grants division has grown from administering a small number of state and federal grants of around
• Our grants division has grown from administering a small number of state and federal grants of around
• , the California Violence Intervention and Prevention Program grant, local mitigation grants associated
• Okay, and since you brought up the grants, I know that there's 50% of the BSCC grants that are awarded
• In terms of the grant programs or in terms of our...

Summary: The Senate Committee on Rules met with quorum and first approved several governor’s appointments not required to appear, including Deborah Garns, Davis Rabbit, Cindy Silva, Vincent Wells, and Lee Herrick as California Poet Laureate, all by 5-0 votes. The committee also approved reference of bills to committees and floor acknowledgments, each by 5-0 vote, before moving to appointments required to appear. Trista Gonzalez, nominated to lead the Department of Tax and Fee Administration, testified about her 33-year career in tax administration and emphasized taxpayer service, efficiency, and team culture. Members asked about responsiveness to legislators, the lithium extraction tax, online sales tax compliance after Wayfair, and enforcement against illicit cigarette, tobacco, and cannabis activity. Gonzalez said the department is ready for the lithium tax, works to register businesses meeting the $500,000 threshold, and coordinates with law enforcement on inspections and seizures. Public commenters from Ryan LLC and the California Society of Enrolled Agents supported her confirmation. The committee voted 5-0 to send her nomination to the full Senate. Aaron McGuire, nominated as executive director of the Board of State and Community Corrections, described his experience at the agency and its expanded responsibilities, including annual detention facility inspections, major grant administration, and the new in-custody death review division. Senators questioned him about grant oversight, fraud prevention, public access to audits, implementation of SB 519, and conditions in local detention facilities, especially in Los Angeles County juvenile facilities. McGuire said the board uses screening, reporting, site visits, audits, and recovery actions to monitor grants, and that trailer bill language has clarified access to records for in-custody death reviews. He also said staffing shortages remain a major issue in Los Angeles juvenile facilities and that the board continues to work with the courts and local officials. Supporters from Amity Foundation, Health Right 360, Westcare, and Giffords testified in favor, and the committee approved his nomination 5-0 to advance to the full Senate.

Transcript Highlights:

• There is no state match involved in this in this grant funding here.
• But that can't be exceeding 5% grant funding.
• It was part of the Grant award.
• The fact that a lot of it was submitted to grant stock of where the ticket was submit grants. True.
• Was it already and the grant you're recognized? >> That was that was already in the grant.

Transcript Highlights:

• So thinking about how if we're giving out grants, there could be a certain portion of those grants maintained
• We also had zero home hardening grants to point to.
• Cal Fire and other agencies are now moving to block grants.
• So those will be increasingly block grants to these individual sub-regions or block grants to the region
• grants that Cal OES administers or the grants that Cal Fire administers.

Transcript Highlights:

• McClatchy Foundation as our third-party grant administrator.
• Our project plan calls for the grant portal to open this summer.
• for new grants.
• Our grant awards ranged from $11,471 to $296,295. That was the largest grant.
• percentage of the grants because we wanted to have this grant money have the most impact on the organizations

Summary: The subcommittee heard an informational update from the Governor’s Office of Business and Economic Development on the state’s Jobs First economic development strategy and related budget requests. Go-Biz described its regional planning process, priority sectors such as ag-tech, space defense, life sciences, and semiconductors, and requests including an extension of the CalCompetes tax credit, support for export promotion, additional film commission staff, innovation and emerging technology capacity, and a California brand campaign. Members questioned the campaign’s purpose, with some supporting efforts to counter misinformation about California and others warning it should not obscure regulatory and business-climate concerns. Go-Biz said the campaign would be nationally focused, could include business attraction efforts, and was intended to complement—not replace—policy work on permitting and workforce development. The item was informational only. The committee then heard from the California Office of the Small Business Advocate on the California RISE program, the Performing Arts Equitable Payroll Fund, and the Technical Assistance Program/Capital Infusion Program. CalOSBA reported that California RISE’s first round awarded $16.9 million to 61 employment social enterprises, which collectively increased revenue, secured contracts, and employed thousands of people facing barriers to work; a second round is being launched with a new administrator and expanded services. For the performing arts payroll fund, the office said all 100 awardees had been paid, but demand far exceeded available funding, and the program was oversubscribed within days. California for the Arts testified that the sector remains fragile after COVID and urged statutory changes to simplify eligibility and stretch dollars further. SBDC representatives described TAP/SIP as a statewide network supporting small businesses, capital access, and disaster recovery, emphasizing their role in underserved communities and the leverage of federal matching funds. Committee members focused on whether these programs produce durable outcomes and reach smaller or disadvantaged businesses. Questions centered on long-term job retention in California RISE, outreach to ethnic and community media in the civic media program, and whether TAP/SIP are accessible to entrepreneurs with limited capital or capacity. CalOSBA and its partners said they rely heavily on local community organizations for outreach, provide one-on-one counseling and training, and are working to collect more longitudinal data. The committee also discussed the film and television tax credit program, for which Go-Biz requested funding for three permanent positions and ongoing program support. Film Commission staff said the expanded program is tracking demographic and career-pathway data, with most productions opting into new diversity provisions, and that a formal report to the Legislature is expected in 2027. The item concluded without a vote, as the hearing was for oversight and budget discussion.

Transcript Highlights:

• </c><00:40:27.440><c> Um</c> cleaner water project grants. Um cleaner water project grants.
• So do I I grants requiring no action.
• So the grants that require no action.
• Both the sewer grant and the water grant are reallocations from the county allocation pool.
• grant and the water grant are the sewer grant and the water grant are reallocations<00:49:05.599><c>

Summary: The committee first handled routine business, including a roll call, approval of the prior meeting minutes, and a set of informational reports. Those reports covered University of Louisville research equipment purchases, a Kent County school district debt issue for elementary school renovations, the University of Kentucky’s planned use of construction management risk for a new engineering building, APA certification reports for underwriter and bond counsel selection committees, and a KCNA status report on infrastructure upgrades and purchases. The main presentation was an informational update from the Louisville Arena Authority. Board representatives said the arena was created to drive economic development and reported about $1.4 billion in economic impact from 2010 to 2013. They explained the authority’s financial structure, including arena operating revenues, TIF revenues, debt service, and a long-term capital plan for major repairs and replacements. Members questioned the low net revenue figures, the long timeline before TIF revenues are projected to exceed debt service, the size of capital expenditure spikes, and the University of Louisville revenue-sharing arrangement. The authority said the $2.42 million annual UL payment is fixed under a 2017 refinancing agreement, while other amounts vary with ticket sales and related revenues. They also said the COVID-era state and Metro funds, combined with authority cash, were used to prepay debt and reduce interest, lowering the debt service schedule. The committee then considered and approved a new capital project for a new HVAC system for the student wellness center pool area. The project, presented by university staff, was approved by the board and required committee action. The committee took a roll call vote, and the project passed unanimously. Finally, Janice Thomas of the state budget office presented two tourism, arts, and heritage cabinet grid resilience projects at Kincaid Lake State Resort Park and Kentucky Down Village State Resort Park. Each project costs $7,834,600 and is funded mostly by a federal grid resilience grant, with the remainder from state utility infrastructure replacement funds and energy policy funds. Staff explained that the projects will move park electrical service ownership and maintenance to regional utilities, allowing the state to exit the infrastructure-management role while continuing to pay utility bills through normal metering. The committee approved the action item by voice vote.

Transcript Highlights:

• Is there, are you seeing that through a low uptake on grants, or the grants not all being applied for
• You mentioned that those that have been awarded grants basically know how to maneuver through the grant
• Is there a need for a grant-writing specialty to go after these grants? I think as a...
• We received a grant that we applied for.
• We have applied for grants.

Summary: The Select Committee on Native American Affairs met on Barona tribal land to examine rising homeowners insurance costs affecting tribal communities, with opening remarks from tribal leaders and Assembly members emphasizing tribal sovereignty, the history of forced settlement in high-risk areas, and the need for the state to recognize mitigation work already being done on tribal lands. The committee heard that wildfire, drought, and other climate-driven disasters have sharply increased insurance premiums and reduced coverage options, especially for tribes located in rural or mountainous areas that were not chosen by the tribes themselves. Cal Fire Deputy Director Frank Bigelow described the state’s wildfire response and tribal engagement efforts, including tribal liaisons on incident management teams, a Southern Region Tribal Affairs Deputy Chief, cultural burning agreements, and more than $30 million in tribal wildfire resilience grants over the last three years. Members questioned why tribal communities receive only a small share of grants, whether Cal Fire should do more outreach and budget proposals for tribes, and whether mitigation work is being recognized by insurers. Bigelow said Cal Fire is working with insurers and the Insurance Institute for Business and Home Safety on mitigation standards, but acknowledged that more tribal outreach and participation are needed. Tribal chairpersons and fire chiefs testified that their communities are already investing heavily in fire protection through dedicated fire departments, fuel reduction, defensible space, prescribed burns, firebreaks, and home-hardening efforts, yet premiums remain high or coverage is denied. Barona leaders said premiums can range from $6,000 to $18,000 and urged insurers to assess properties individually rather than by broad high-risk zones. Soboba, Hamu, and Pechanga representatives described similar efforts and said grant rules, environmental review, and insurer practices can make it difficult to translate mitigation into lower rates. Several members suggested short-term state assistance or a tribal insurance mitigation fund, and the committee discussed the possibility of requiring insurers to better account for tribal mitigation and sovereignty in risk assessments.

Transcript Highlights:

• Our grants division has grown from administering a small number of state and federal grants of around
• The grants division has grown from administering a small number of state and federal grants of around
• , the California Violence Intervention and Prevention Program grant, local mitigation grants associated
• with Proposition 64, and also the adult reentry grant program.
• Okay, and since you brought up the grants, I know that there's 50% of the BSCC grants that are awarded

Committee: Senate Rules

Summary: The Senate Committee on Rules convened with quorum and first approved several governor’s appointments not required to appear, including Deborah Garns, Davis Rabbit, Cindy Silva, Vincent Wells, and Lee Herrick as California Poet Laureate, all by 5-0 votes. The committee also approved reference of bills to committees and floor acknowledgments, each by unanimous 5-0 votes. The committee then heard testimony on the appointment of Trista Gonzalez as Director of the Department of Tax and Fee Administration. Gonzalez described her 33-year career in tax administration, emphasized taxpayer service, efficient collection, and support for small businesses, and answered questions about lithium extraction tax registration, online sales tax enforcement under Wayfair and AB 147, and CDTFA’s work with illicit cigarette, tobacco, and cannabis activity. Members praised her responsiveness to legislators and constituents, and public commenters from Ryan LLC and the California Society of Enrolled Agents supported her confirmation. The committee voted 5-0 to send her nomination to the full Senate. The committee also heard from Aaron McGuire, executive director of the Board of State and Community Corrections, on his confirmation. He discussed the board’s expanded responsibilities, including annual detention facility inspections, grant administration, and the new in-custody death review division. Members questioned him about grant oversight, audits, implementation of SB 519, access to local agency records, standards for detention facilities, and conditions in Los Angeles County juvenile facilities. McGuire said the board is using inspections, technical assistance, and public reporting to improve compliance and transparency, and that additional trailer bill language clarified access to records. Public support came from nonprofit reentry providers and Giffords. The committee approved his nomination 5-0, and then adjourned.

Transcript Highlights:

• We are asking for two grants.
• business support grants.
• business support grants.
• </c> Grant excuse me with little grant Grant excuse me with little grant funding<02:14:57.960><c> it's
• </c> request our grant Aid a granted Aid request our grant Aid a granted Aid request<03:20:34.120><c>

Summary: The joint Ways and Means and Finance informational briefing on grants and aids was held February 14 and was organized as a high-volume public testimony session with strict procedures: no Q&A, one representative per applicant, one minute per testimony, in-person testimony first, and then Zoom participants. The chairs also announced a recess at 11:00 a.m. for floor sessions and a reconvening at 1:00 p.m. Testimony was heard first from neighbor island applicants, then Oʻahu applicants, with members repeatedly directing speakers to line up and keep remarks brief. Neighbor island testimony focused on a wide range of capital and operating requests. Health and community projects included Hawaii Island Community Health Center’s workforce housing in Kau, Wuli Hawaiian Homestead Association’s learning center and predevelopment work, Rescue Tube Foundation’s beach rescue tube expansion, Puna Community Medical Center’s planned hospital/ER campus, Maui Humane Society’s free veterinary care after the wildfires, Hawaiʻi Care Choices’ palliative care readiness, and the Lyman Museum’s HVAC replacement. Other requests included the Maui Advanced Manufacturing Alliance’s Pāʻia Mill redevelopment, Laua 2020’s preschool and learning lab, Mālama Aina’s USDA-compliant meat processing facility, the Hawaiian Lifeguard Association’s water safety programs, Kaha P Organization’s agriculture education support, Ohana Arts’ youth performance project, Friends of the Children’s Justice Center’s emergency closet, EOA Pacific’s Marshall Islands teacher training, and the Central Pacific Youth Athletic Club’s new facility. Oʻahu testimony included the YWCA Oʻahu/Pythink Center’s renovation of Juliet M. Atherton Hall and its community kitchen, West Oʻahu Community Health Center’s wildfire protection and security needs, the Early School’s playground improvements, Surfing the Nations’ food distribution center expansion, and Sounding Joy Music Therapy’s weekly services for people with disabilities. Speakers generally emphasized community benefit, workforce development, health access, food security, disaster recovery, and support for children, seniors, and underserved populations. No votes or formal committee actions were taken during the briefing.

Transcript Highlights:

• It's the land grants requests and what they're looking at.
• By land grant, it's a pretty useful document, so I just wanted to show that to everybody.
• The State Auditor is a land-grant heir for the state. In a clear land grant.
• Like I said, a land grant often gets a new president who starts from scratch.
• The Juan Bautista Valdez Land Grant has been denied for two years in a row.

Committee: House House Rural Development, Land Grants And Cultural Affairs

Transcript Highlights:

• Because the way that the act is structured, we are unable to provide grants, so we can't make a grant
• We have another CAP grant application in development, perhaps a second Emerging Contaminants grant.
• The grant portion of the Water Trust Board and Colonius Infrastructure Board can be up to 90% of grant-like
• I would say, or getting requesting another grant.
• That was the first CAP grant that New Mexico received.

Committee: House New Mexico Finance Authority Oversight Committee

Transcript Highlights:

• grants.
• Um, so grant picture snapshot.
• </c> information, and grant reporting gaps. information, and grant reporting gaps.
• </c> generally, how do grants work? generally, how do grants work?
• </c><01:15:04.800><c> grants</c> and then you look at your grants. grants and then you look at your grants

Committee: Senate Education

Transcript Highlights:

• So this grant ensures that grant recipients do work with our schools, colleges, and professionals to
• We had three grants that came in to us that year for this specific grant opportunity.
• We had three grants that came in to us that year for this specific grant opportunity.
• We had three grants that came in to us that year for this specific grant opportunity.
• We had three grants that came in to us that year for this specific grant opportunity.

Committee: Senate Environment, Climate, and Legacy

Transcript Highlights:

• Is a $30 million grant being administered by the board?
• They are assigned to grant programs that are funded.
• Our grant programs are coming to a close.
• We call it the COYA Grant, the California Opportunity Youth Apprenticeship Grant.
• We've awarded $46 million in grants, and there is a third round of that grant that we are soon to announce

Summary: The Senate Budget Subcommittee on Corrections, Public Safety, Judiciary, Labor, and Transportation heard presentations on labor and public employment issues from the Employment Development Department (EDD), the California Workforce Development Board (CWDB), and the Department of Industrial Relations (DIR). The committee first focused on EDD Next modernization, where EDD described progress on online claims, call center upgrades, language access, fraud prevention, and the Integrated Claims Management System (ICMS). The Legislative Analyst’s Office urged closer legislative oversight, especially as the project moves into the most difficult phase. Senators asked about the revised timeline, total cost, fraud reduction, stress testing, transparency around change orders, and the decision to phase in disability insurance and paid family leave before unemployment insurance. EDD said the overall project cost remained about $1.2 billion, that it had no major cost overruns, and that it had saved more than $20 million by shifting some shared customer portal work into ICMS. The subcommittee then considered CWDB’s request for additional operational resources and trailer bill language to streamline reporting. CWDB and the Department of Finance said staffing had been expanded during the pandemic-era surge in grant funding and should now be reduced as one-time grant programs wind down. Senators questioned the proposed staffing reduction, arguing that workforce development needs remain strong and that the board’s policy role still requires adequate capacity. The committee also discussed a proposal to consolidate multiple annual and interim reports into a single biennial report, with LAO supporting the streamlining. Members asked about reporting for specific programs and the cost savings from reducing duplicative evaluations. A major portion of the hearing addressed DIR’s proposed reforms to the Subsequent Injury Benefits Trust Fund (SIBTF) and related workload funding. DIR and LAO described rapid growth in applications, a large and growing backlog, and sharply rising liabilities and employer assessments. The administration’s trailer bill would tighten eligibility, apply reforms to open cases, and use contemporaneous evidence and QME reports to document preexisting disabilities. LAO said the proposal largely matched its prior recommendations and would help return the program to its original intent. Senators raised concerns about fairness to pending claimants, the effect on workers with undocumented preexisting conditions, and whether the QME system could absorb the added workload. The committee also heard DIR’s request to eliminate vacant positions under a statewide vacancy sweep, with members objecting that some vacancies reflect unmet enforcement and safety needs rather than excess capacity. The hearing continued with DIR proposals for additional Cal/OSHA investigative staff, permanent changes to Workers’ Compensation Appeals Board petition deadlines, and apprenticeship-related funding increases. DIR sought 14 permanent positions for its Bureau of Investigation to handle serious workplace fatalities and injuries, and members emphasized the importance of timely investigations and family communication. The WCAB requested making permanent a 2024 change that starts the 60-day reconsideration clock when a case is transmitted rather than when the petition is filed; the board said this had reduced the number of cases awaiting decisions from 637 to 460. Finally, DIR proposed increasing apprenticeship training grants from $3 million to $20 million annually using the Apprenticeship Training Contribution Fund, citing an $80 million fund balance and workforce demand tied to rebuilding and infrastructure needs, and then began discussion of a separate request to expand pre-apprenticeship programs.

Transcript Highlights:

• There was an investment of $291.7 million to the grants, which increased SSP grant levels by 23.95%.
• SSI grants.
• than the entire grant in 28 counties.
• , let's at least get the grants there first.
• An automatic COLA will ensure that SSI/SSP grants can keep up when costs rise and prevent the grants

Summary: The joint Assembly Budget Subcommittee hearing focused first on long-term services and supports for older adults, especially the “forgotten/overlooked middle” who earn too much for Medi-Cal but cannot afford private long-term care. Administration witnesses from DHCS, the Department of Aging, and Social Services described Medicare’s limited long-term care coverage, Medi-Cal’s role, the elimination of the Medi-Cal asset test, and ongoing state studies and listening sessions on financing options. Testimony from advocates and researchers emphasized rising homelessness among older adults, the need for better navigation and coordination across health, aging, housing, and social service systems, and short-term policy steps such as share-of-cost reform, housing stability supports, and protecting home- and community-based services. Members highlighted the need for a coordinated, no-wrong-door approach and asked for the most impactful budget investments to address affordability and homelessness risk. The second major topic was the Community-Based Adult Services (CBAS) program. CDA reported that CBAS helps participants remain in the community, that 304 centers operate statewide serving about 42,000 people, and that demand is stable but access gaps remain in some regions. DHCS explained that a 2024 rate increase authorized by SB 159 became inoperative after Proposition 35, and that a separate 10% rate change on the fee schedule was the result of a DHCS system error; the department said it would not require recoupment, though managed care plans may act under their contracts. CBAS providers and advocates warned that reimbursement rates have not kept pace with costs, that several centers have closed, and that clawbacks could trigger more closures. They requested $74.8 million ongoing General Fund to close part of the rate gap and preserve the program, while members expressed concern about closures and the cost savings of keeping people out of more expensive institutional care. The hearing then moved to In-Home Supportive Services (IHSS) and statewide collective bargaining. CDSS reviewed provider recruitment and retention efforts, including electronic timesheets, direct deposit, and the now-completed IHSS Career Pathways program, which trained more than 59,000 providers. CDSS also summarized its AB 102 workgroup report on statewide versus regional bargaining, saying the final report would be sent to the Legislature soon and that statewide bargaining appeared more viable than regional bargaining, though it would require clear statutory scope and major fiscal changes. The department estimated that each $1 per hour statewide wage increase would cost at least $1.3 billion to $1.5 billion annually. Labor advocates argued that IHSS wages, benefits, and training are too inconsistent across counties and called for statewide bargaining, consumer participation, and ongoing state funding. County representatives supported stronger wages but cautioned that counties need protection from new costs and administrative burdens, and consumer advocates warned that moving bargaining to the state could weaken local consumer control and the program’s consumer-driven structure.