Transcript Highlights:

• By contrast, the budget we passed last week was $114.5 billion, which is less than the total budget for
• So we've cut billions of dollars out of our budget.
• It has a protected category, but it's not a protected budget.
• dust, budget dust, to offset the impact.
• You go into this budget cycle.

Summary: The Committee on Appropriations took up SJR 2-F, the proposed constitutional amendment on property tax relief, which would reduce assessment growth on non-homestead property, expand homestead exemptions, create a new exemption for new homesteaders, and direct counties, cities, and school districts to use property tax revenues for specified core services. Senator Avila presented the measure as the governor’s plan to provide historic relief and argued that local governments should tighten budgets and prioritize core functions. Senators raised concerns about the lack of fiscal scoring, the breadth and ambiguity of the permitted uses, the effect on special districts and local services, and whether the proposal would shift costs to fees or other taxes. The committee adopted several amendments, including Avila’s amendment clarifying that ad valorem revenues could be used for county and municipal operations and administration and other expenditures not prohibited by law, and Trumbull’s amendment removing school board ad valorem taxes from the proposal. Other amendments failed, including proposals to allow user fees and non-ad valorem assessments, add a sunset, redirect tourism development taxes, narrow the small-business provision, and change the ballot title to reference local service reductions. Grall’s amendment removing the constitutional trust fund requirement was adopted, while the committee also rejected Berman’s title-change amendment and Smith’s sunset and tourism-tax amendments. The committee then returned to the bill as amended for questions, including extended debate over whether the proposal would affect noncitizen residents, the impact on local government finances, and whether local governments would respond with higher fees or special assessments. The meeting ended with the bill still under discussion after the final round of questions, with Avila saying he would continue working with the governor’s office on the language before the next vote.

Transcript Highlights:

• Now, we haven't cut their budget. The budget is the same that came over from the governor's budget.
• really read the budget.
• Sometimes we'll be more budget.
• for next budget cycle.
• My first time seeing this budget.

Keywords: 920, all

Summary: The Senate convened with prayer, the pledge, and a roll call establishing a quorum. It adopted motions to excuse absent senators, dispense with reading the prior journal, and allow bills and committee reports to be taken up throughout the day. The chamber received multiple House messages and a gubernatorial confirmation, including House Bill 1 on motor vehicles, Senate Bill 170 on health insurance, and Senate confirmation 90 for Chenica Johnson Anom to the Alabama Cickle Cell Oversight and Regulatory Commission, all of which were referred to the appropriate committees. The Senate later concurred in the House amendment to Senate Bill 170 by a 29-0-1 vote. Committee reports covered a wide range of measures, with favorable reports and, in several cases, amendments or substitutes. Judiciary reported favorably on House Bills 228, 132, 347, 405, 86, 263, and 302, and on Senate Bills 318 and 260; State Government Affairs reported favorably on House Bills 435, 97, and 407 and Senate Bill 361; Education Policy reported favorably on Senate Bills 337 and House Bills 520 and 75; Fiscal Responsibility and Economic Development reported favorably on House Bills 303 and 477 and Senate Bills 360, 325, 329, and 330; Transportation and Energy reported favorably on Senate Bills 341, 354, and 340; Veterans and Military Affairs reported favorably on House Bills 465 and 307 and Senate Bills 338 and 359; and Local Legislation reported favorably on Jefferson County Senate Bill 243 and Shelby County House Bill 532. These reports generally advanced the bills to second reading and placement on the next legislative day’s calendar. The Senate also confirmed George Pierce to the Alabama Ethics Commission by a 33-0 vote after a favorable committee report, with several senators offering brief remarks of congratulations. In motions and resolutions, the chamber adopted Senate Joint Resolution 77 honoring the Section boys basketball team and Senate Joint Resolution 78 honoring the North Sand Mountain girls basketball team for state championships. It also adopted Senate Joint Resolution 79 establishing a legislative study commission on child sexual abuse laws and policies. A senator additionally urged colleagues to support broadband expansion efforts in rural Alabama and to ask the education chair to place HB 4 on the agenda. The most substantial floor discussion concerned Senate Bill 146, the state general fund budget substitute. The sponsor explained several budget provisions, including a $12 million transfer and an additional $5 million for the judiciary to address funding for newly created judgeships, a conditional $40 million for the Department of Corrections tied to progress on the Elmore and Escambia prison projects, conditional funding for DHR tied to reducing its federal error rate and developing a SNAP-related plan, conditional mental health funding tied to reporting and data requirements, and language preserving legislative control over certain federal rural health care funds. The Senate adopted the committee substitute for SB 146 by a 32-0-1 vote and then continued with the budget explanation as the transcript ended.

Transcript Highlights:

• This agency is on page 4-57 of the legislative budget book.
• So that did have the effect of growing their overall budget.
• drop out of the budget over the next two years.
• This is on page 5-15 of your legislative budget book.
• This is on page 5-15 of your legislative budget book.

Summary: The committee first heard a budget presentation for the Department of Water Resources. Analysts explained the agency’s structure, continuously appropriated funds, and the large budget increases tied to ARPA State Fiscal Recovery Funds and the ongoing $30 million infrastructure appropriation. Director Matthew Weaver and Water Resource Board Chairman Jeff Raybould described the department’s role in managing water rights, aquifer recharge, stream gauges, groundwater monitoring, and major projects in the Eastern Snake Plain Aquifer (ESPA), the Palouse area, Mountain Home, and the Bear River basin. Members asked about aquifer stabilization, the impact of budget holdbacks on field work and monitoring, water quality concerns, project delays caused by easements and federal coordination, and the effect of data centers on water use. Weaver said reductions are being managed through cuts to travel, training, maintenance, and some stream gauge funding, and that the department is working toward a long-term goal of stabilizing the ESPA through reduced pumping, increased recharge, and expanded management areas. Chairman Raybould and Director Weaver also discussed the use of the prior $30 million appropriation, saying it has been fully obligated for recharge, conversion from groundwater to surface water irrigation, telemetry, and related projects. They said the next $30 million would likely support additional ESPA work, a Bear River study, and other emerging needs, but that major projects can take years because of engineering, landowner, state, and federal coordination. Questions also covered recharge capacity, the current average recharge level, and whether the state could reach a 350,000 acre-foot annual recharge goal; the witnesses said current infrastructure could handle well over 500,000 acre-feet in a good year, but more capacity is needed. The committee also discussed private and local matching funds for aging irrigation infrastructure and the role of groundwater quality monitoring, with Weaver noting that contamination issues are referred to the Department of Environmental Quality. The committee then moved to the Soil and Water Conservation Commission budget. Analysts said the agency’s budget is driven largely by one-time water quality appropriations in recent years and a small ongoing base, with a supplemental and enhancement request tied to CREP funding. Weaver, serving as interim administrator, and two commissioners explained that the commission supports local conservation districts and that a stakeholder process led by the Langdon Group recommended merging the commission with the Department of Water Resources. Weaver said the merger would preserve the commission’s non-regulatory, locally led mission while creating administrative efficiencies, and that related legislation and a concurrent resolution are moving through the Legislature. Members asked about CREP data, acreage, and water savings; Weaver said the program is a voluntary federal-state partnership, mainly in southern Idaho and parts of the eastern Snake Plain, with about 11,000 acres enrolled out of a 50,000-acre cap. He said a fully utilized CREP program could significantly reduce groundwater diversions, and the committee adjourned after discussing the historical shift from soil conservation toward water conservation priorities.

Transcript Highlights:

• We're calling the conference committee on Environment Budget Senate File 2077 to order.
• This was an item in the governor's budget.
• This was an item in the governor's budget.
• So, it's a very unique uh of our budget.
• We also are planning on small budget.

Keywords: 919, house, all

Summary: The conference committee on the Environment budget for Senate File 2077 met to introduce members and staff, then walked through the Senate and House budget spreadsheets side by side. Nonpartisan staff explained that the Senate budget was built around a smaller general fund increase and more use of environmental and dedicated funds, while the House met its target through several reductions, including cuts to DNR, PCA, and Board of Water and Soil Resources appropriations. The committee reviewed major agency items for the Pollution Control Agency, DNR, the Metropolitan Council, the Minnesota Zoo, and other accounts, including operating adjustments, permit-related funding, and transfers between funds. Several major differences were highlighted. For the PCA, the Senate included operating adjustments, permitting efficiency funding, composting grants, outreach funding, and a closed landfill investment fund approach that repeals an expiring statutory appropriation, while the House instead extends that appropriation for four more years. For the DNR, the Senate included operating adjustments, groundwater and AIS fee increases, aquatic invasive species funding, trail grants, outdoor schools for all, abandoned watercraft enforcement, and a sustainable foraging task force; the House had fewer of these fee and policy items and used reductions to meet its target. The committee also noted Senate-only policy provisions on outreach to diverse communities, field citations and mercury certification for skin-lightening products, disabled veteran license fee changes, and a moratorium on foraging rulemaking until July 1, 2027. Agency testimony followed. The MPCA commissioner praised both chambers for recognizing core agency work and urged adoption of operating adjustments, the closed landfill fund access, and the air appropriation increase. The DNR assistant commissioner supported operating adjustments, groundwater and AIS fee increases, and the veteran license proposal, but raised concerns about the Senate’s foraging task force language, saying it overweights consumptive users and could limit the agency’s ability to manage foraging without clear data. He also noted support for the land transfer funding and said the agency would continue working with the committee on unresolved issues. No votes were taken in this portion of the meeting.

Transcript Highlights:

• Am I proposed budget additions.
• information we had when we prepared the information we had when we prepared the budget budget budget
• </c> to present their uh supplemental budget to present their uh supplemental budget request.<00:45:54.960
• </c><00:48:50.480><c> of</c> department requests a lean budget of department requests a lean budget of
• </c> &gt;&gt; It would be within the OE fund budget &gt;&gt; It would be within the OE fund budget for

Keywords: 912, senate, all

Transcript Highlights:

• So it looks like hopefully some of our Capital Budget members will be struggling in and listening in
• Capital Budget members will be struggling in and listening in their earbuds to the work session on the
• Is there a communication happening with the operational budget now?
• to quantify cost estimates into your budget cycles.
• However, this policy is intended to inform future capital budget funding after 2028.

Summary: The committee first received a Commerce overview of capital budget grant programs, including behavioral health facilities, Building for the Arts, Building Communities Fund, early learning facilities, library capital improvements, and youth recreational facilities. Commerce described program eligibility, match requirements, funding cycles, and project examples such as an early learning center in Spokane, a rural library in Stevens County, and a youth clubhouse in Prosser. Members asked about behavioral health capital projects, including how many facilities have been opened and how capital planning aligns with operating funding; Commerce said it could provide more data later and noted it focuses on capital while HCA, DSHS, and DOH handle operating requests. Members also raised concerns about nonprofit financial stability, project licensure, siting, and the burden of non-state match, while Commerce emphasized shovel-ready projects, community match, and efforts to reduce application burden. The committee then heard an update on the Clean Buildings Performance Standard from Commerce. Staff reviewed Washington’s building emissions laws, compliance tiers, exemptions, incentives, and district energy system decarbonization planning under House Bills 1543, 1976, and 1390. Commerce reported nearly 5,000 inquiries in 2025, a fellowship program that has helped more than 250 buildings in 16 counties, and review of nearly 30 district energy plans. The presentation highlighted that over half of Tier 1 buildings are already meeting targets, that Tier 2 incentive applications suggest the 30-cent-per-square-foot incentive often covers compliance costs, and that district decarbonization plans face common challenges such as aging infrastructure, grid readiness, workforce, and inconsistent cost reporting. Members asked what additional legislative action might help, and Commerce said it was still learning from the new rulemaking and implementation changes. Western Washington University and Corex then presented on WWU’s campus heating conversion project and a possible off-campus thermal energy partnership with the Port of Bellingham. WWU described its aging steam system, high emissions, maintenance costs, and the $51 million in Climate Commitment Account funding it has received to transition toward an electric hot-water system using technologies such as geo-exchange, heat recovery chillers, and air-source heat pumps. Corex explained its existing district energy system at the Port of Bellingham, which uses industrial waste heat and is operating at very high efficiency, and said it is exploring a heat transmission line to WWU and possibly sewer-heat recovery. Testimony from WSU and UW supported the broader decarbonization effort but raised concerns about the scale of costs, deferred maintenance, and the need for predictable state funding. A contractor witness urged the state to think bigger about public-private partnerships and other financing tools rather than forcing campuses to compete for limited funds. The committee then held a public hearing on House Bill 2330, which would create a prioritization process for capital funding for state campus district energy system decarbonization projects. Staff said the bill would establish a Commerce committee to score and rank projects, issue a preliminary framework report by December 30 of this year, and provide biennial recommended project lists beginning in 2028, while also studying barriers to energy-as-a-service contracts and public-private partnerships. The prime sponsor said the bill is intended to create a thoughtful, predictable process for deciding which projects to fund, emphasizing energy savings, emissions reductions, operating cost reductions, shovel-readiness, and the value of public-private partnerships. Testimony was mixed but generally supportive: WSU and UW backed the bill as a way to advance compliance and predictability, though WSU warned that compliance costs could be very large and that the university would likely seek state help if fines were imposed. A contractor witness supported the concept but argued the bill should help build a larger funding “pie” through partnerships and financing tools rather than simply dividing scarce resources. The committee then opened and heard testimony on House Bill 2338, which would authorize community-scaled weatherization projects. Commerce staff said the bill would allow weatherization funds and matching funds to be used for neighborhood-scale projects affecting multiple dwelling units, while still prioritizing low-income households; the fiscal note estimated about $273,000 in FY 2027 and about $237,000 per biennium ongoing for administration. Supporters from community action agencies and Spark Northwest said the bill would improve health, safety, affordability, and contractor participation by allowing weatherization to be done at a community scale, especially in mobile home parks and low-income neighborhoods. No votes were taken in the transcript.

Transcript Highlights:

• Assembly Budget Subcommittee 5 on State Administration Hearing today.
• Some of those will be future budget asks, not for this hearing or for this budget cycle.
• That's what our budget should be used for. We support the governor's budget. Thank you. Thank you.
• CA RISE is more than a budget line.
• Genevieve Morales, Assembly Budget.

Keywords: 988, house, all

Transcript Highlights:

• By contrast, the budget we passed last week was $114.5 billion, which is less than the total budget for
• So we've cut billions of dollars out of our budget.
• dust, budget dust, to offset the impact.
• Were budget dust, budget dust, to offset the impact.
• It's budget dust. We can handle it. ...said it today. It's budget dust. We can handle it.

Keywords: 999, senate, all

Transcript Highlights:

• This is the Assembly Budget Subcommittee on Human Services.
• Budget, legislation, and communication.
• On item two, we support the budget proposal that an budget proposal that ensures our immigrant communities
• But we urge your support for a budget response that meets the moment.
• This is part of the overall countywide HR1 budget request. It's critical.

Summary: The Assembly Budget Subcommittee on Human Services held an informational hearing focused on the impacts of federal HR1 on CalFresh and Medi-Cal, along with related state mitigation efforts. CDSS, DHCS, DDS, county representatives, LAO, and Finance discussed automatic exemptions, data-sharing between departments, county workload, and the timing of implementation. CDSS said about two-thirds of adults ages 18 to 64 are already known to be exempt in CalFresh, and that administrative data matches could newly exempt about 200,000 of the roughly 955,000 adults potentially at risk. DHCS said Medi-Cal work requirements would begin in 2027 and the department is working to automate exemptions, including for IHSS recipients and some caregivers, while DDS said its population is expected to be covered by auto-exemptions. County welfare directors emphasized that individualized worker contact is critical, that counties need more staffing and stable funding, and that without it they expect delays, higher error rates, and reduced exemption screening capacity. Members pressed for written timelines, county-by-county impact data, and clearer guidance; the administration said it would provide follow-up materials and technical assistance. No votes were taken. The committee then heard a separate discussion on a proposed CFAP expansion or “CFAP Plus” concept to provide state-funded benefits to additional populations affected by HR1, including lawfully present non-citizens and ABODs. CDSS said implementation could not occur before October 1, 2027 because of policy and system-design constraints, and that adding unique eligibility rules would increase complexity and cost. Finance cautioned that any expansion would have General Fund impacts likely in the hundreds of millions to multiple billions. Members asked for cost estimates and technical feedback on trailer bill language, and CDSS said it would review the proposal and respond. The hearing also covered CDSS’s CalFresh strategic plan and mandated reporter training updates. CDSS said it is hiring a strategic plan lead to develop a long-term, data-informed CalFresh plan, and that the revised mandated reporter training is on track for launch in fall/winter 2026, ahead of the July 1, 2027 statutory deadline. The training will include updated content on structural racism, ICWA protections, implicit bias, and the distinction between reporting and supporting families. Members praised the work and asked for continued updates. Later panels focused on Promise Neighborhoods, Stop the Hate, and housing programs. Promise Neighborhood advocates and CDSS described the state’s prior $12 million investment, a positive evaluation showing roughly a 4-to-1 return, and a new proposal to support place-based partnerships and community schools through AB 1969. Stop the Hate grantees and CDSS reported that the program has provided direct services, prevention, and statewide coordination to millions of Californians, and urged reauthorization before funding expires; members asked for best-practice language and discussed focusing future funding on solidarity work, harm reduction, legal services, and education. Finally, CDSS presented on the CalWORKs Housing Support Program and Housing and Disability Advocacy Program, saying proposed General Fund investments of $105 million and $55 million would prevent funding cliffs and allow the programs to continue through 2026-27, while the absence of new funding would force reductions in housing assistance, subsidies, and enrollments.

Transcript Highlights:

• First, the project is clearly overdue and future budget needs are unclear.
• You know, and I think in the budget process in 2019, there was some... ...pushback on that budget, and
• Because we are in a budget deficit.
• billion to California, about a third of our budget.
• The Senate budget subcommittee number five on corrections.

Summary: The Senate Budget Subcommittee on Corrections, Public Safety, Judiciary, Labor, and Transportation heard updates from the Office of Emergency Services (Cal OES) and the Department of Justice. Cal OES Acting Director Tina Curry described the department’s proposed budget, disaster response and recovery work, Los Angeles wildfire recovery, FEMA reimbursement delays, hazard mitigation grant applications, planning for major events like the FIFA World Cup and LA28 Olympics, and the state’s next generation 911 priorities. Senators raised concerns about Operation Stonegarden, small-disaster recovery delays, FEMA reimbursement timing, VOCA funding, and the need for more detailed reporting on federal grants and recovery costs. The committee then focused on Next Generation 911. Cal OES staff said the current regional deployment encountered call-routing and transfer failures, leading the department to pause further rollout and propose a new phased plan centered on a statewide provider, followed by an open procurement for a long-term vendor. They said the plan is intended to improve reliability, simplify architecture, and support Los Angeles-area PSAPs ahead of the Olympics, with a target of full statewide transition by summer 2030. The Legislative Analyst’s Office urged the Legislature to pause major changes until it receives more information, including a clearer explanation of the problems, alternatives considered, costs, cybersecurity and privacy issues, and oversight needs. Members expressed mixed views, with some supporting a joint oversight hearing and requesting quarterly fiscal reports and monthly progress updates. The Department of Justice then presented its overall workload, emphasizing public safety enforcement, fentanyl and human trafficking prosecutions, housing enforcement, civil rights work, and extensive federal litigation against the Trump administration. DOJ said the additional federal accountability work has significantly increased staffing and overtime demands, though it has hired 44 additional employees. The committee also heard DOJ’s firearms workload proposal, including funding for SB 704 implementation, continued firearms IT modernization, and a proposed shift of Bureau of Firearms costs to the General Fund. The LAO recommended using special funds and loans instead of ongoing General Fund support where possible, and asked DOJ to develop a framework by January 2027 for determining which firearms and ammunition workload should be supported by fee revenue. The Department of Finance largely agreed with the need for SB 704 funding but disagreed with the LAO’s proposed loan approach for the firearms account.

Transcript Highlights:

• . budget.
• Budget gives me a budget update of, okay, we have spent 55; we should be at 60 right now.
• This is for risk premiums, and the department's budget—this program in particular—their budget is very
• And as a result, our budget is suffering.
• And then this last one, this is not even about my budget or our budget request, but this is something

Bills: SB48, SB64, SB100

Keywords: State Fairgrounds District, fairgrounds bonds, public financing, bond authorization, gross receipts tax, gaming tax, tax-backed bonds, infrastructure funding, Albuquerque fairgrounds, State Fair Tid, economic development, municipal bonds, revenue pledge, capital projects, New Mexico finance, special education, office of special education, deputy secretary, public education department, IEP

Transcript Highlights:

• The Information Technology Budget and Policy Subcommittee will now come to order.
• That is our perceived budget at this time. Follow-up. Thanks, Mr. Chair.
• Here's the total budget authority received for Phase 2, about $76.4 million.
• We've had some budget constraints.
• We have over 35,000 individuals on the budget waiver.

Summary: The subcommittee heard updates on several state technology modernization efforts, beginning with the Florida Division of Emergency Management’s Enterprise Business Solution (DEMS). FDEM said DEMS is about 50% complete, with some grants and finance functions already live, and is intended to replace manual disaster and grants processing with a cloud-based system. Officials described faster reimbursement timelines after recent storms, major return-on-investment claims, and a planned final phase focused on design, testing, communications, data governance, and additional functionality. Members asked about the total cost, the role of Florida Digital Service, deliverables-based contracting, and how much of the system is live; FDEM said the project is expected to cost about $16 million to $16.8 million and finish by June 2027, with some follow-up information to be provided. The Department of Legal Affairs presented its Office of Attorney General Modernization Program, a follow-up to an earlier effort that failed after spending about $26 million. Acting Attorney General John Gard said the department has now moved to an off-the-shelf case management product, LawBase, and is in development and testing, with the Office of Statewide Prosecution already live and full implementation expected by the end of the fiscal year. The request includes funding for staff augmentation, cloud storage, the LawBase license, redundancy through a backup site in Orlando, and OnBase support. Members questioned the prior failure, the use of Florida Digital Service standards, data location and cloud migration, and the redundancy plan; Gard said lessons learned included better scoping and that the current effort is on track. The Department of Highway Safety and Motor Vehicles then updated the committee on Motorist Modernization, including the Orion system and the MyDMV portal. Officials said Phase 1 and Phase 2 have modernized driver license and motor vehicle services, with Phase 2 statewide rollout scheduled to begin in April 2025 and Phase 3 proposed at $16.5 million for dealer services, data warehouse improvements, and call center modernization. Members asked about payment options, organ donor questions, staffing, cybersecurity, cloud strategy, and the digital driver license program. The agency said the portal already allows some sanctions to be cleared online, an ACH option is being developed, the digital driver license vendor has changed with a fall go-live anticipated, and the department is using security testing and a managed security service provider. Officials also said the system is currently on an on-prem private cloud, with future workloads expected to move to public cloud where appropriate. Finally, Florida Commerce presented on the Reemployment Assistance modernization system, Reconnect, and the FLWINS workforce system. Commerce said Reconnect is hosted in the Azure Government Cloud, has reduced claim filing time, improved fraud detection, and increased appeals capacity, and now needs $4.9 million in recurring funding to cover ongoing operations, cloud hosting, licenses, and staff augmentation. Members asked about adjudication issues, wait times, fraud prevention, and whether the system stores caller identifiers; Commerce said the average wait to speak to a representative is about 18 minutes and claims are generally processed in four to six weeks. The committee then began hearing about FLWINS, which is intended to create a “no wrong door” workforce portal under the REACH Act, but the transcript cuts off before that presentation concluded.

Transcript Highlights:

• ’s a lot of budget items in there.
• budget is restricted."
• Base budget. How much is the base budget for the guards?
• Next slide: our budget request.
• We don't have one in the budget. This school is in the budget.

Keywords: 912, senate, all

Transcript Highlights:

• And I obviously chair the Health Budget Subcommittee, And I obviously chair the Health Budget Subcommittee
• And I obviously chair the Health Budget Subcommittee, And I obviously chair the health budget subcommittee
• The second piece is to put the system on a budget. Every Californian is on a budget.
• Neither Californians' budget nor household budgets can afford to let health care costs continue to grow
• Neither Californians' budget nor household budgets can afford to let health care costs continue to grow

Summary: The joint informational hearing focused on the cost of uncertainty in California health care, especially the effects of federal policy changes on coverage, access, and affordability. Opening remarks from committee leaders and members emphasized that California’s uninsured rate had fallen to historic lows under the Affordable Care Act and state policies, but that the expiration of enhanced federal subsidies, H.R. 1, and other federal regulatory changes could reverse those gains. Members repeatedly cited rising premiums, skipped care, medical debt, and the strain on low-wage workers, families, clinics, hospitals, and public programs. The first panel reviewed the federal landscape and state response. A federal policy analyst described the ACA’s coverage gains and consumer protections, then outlined current threats: H.R. 1’s Medicaid and marketplace cuts, the end of enhanced premium tax credits, shorter open enrollment, more verification requirements, and changes affecting preventive services and vaccines. Covered California reported that the loss of subsidies is expected to nearly double average monthly premiums, reduce enrollment, and push more consumers into bronze plans with higher deductibles; it also noted that California’s $190 million affordability fund is helping the lowest-income enrollees. HCAI’s Office of Health Care Affordability explained its work on spending targets, market consolidation review, and primary care investment, saying the goal is to slow spending growth rather than impose price caps. Committee members pressed witnesses on the practical effects of bronze plans, administrative burdens, immigration-related disenrollment, provider taxes, uncompensated care, and whether California can sustain current coverage levels without new revenue. Witnesses said bronze plans preserve essential benefits but shift more costs to consumers, and that H.R. 1’s verification and auto-renewal changes will likely reduce enrollment. They also said provider tax reductions could significantly weaken state financing over time, and that higher uninsured rates may increase uncompensated care and pressure premiums elsewhere in the system. The second panel, featuring UC Berkeley Labor Center and California Health Care Foundation experts, highlighted broader affordability problems across job-based coverage and Medi-Cal, citing medical debt, skipped care, and the role of underlying system costs, administrative waste, and lack of competition. They pointed to medical debt relief efforts such as Los Angeles County’s program as a short-term mitigation strategy while the Legislature considers longer-term policy and budget responses.

Transcript Highlights:

• “The budget proposal is the last for this current administration.
• final budget of the previous administration.
• budget change proposals.
• budget change proposals.
• Senate Budget Subcommittee 2 is adjourned.

Keywords: 987, senate, all

Transcript Highlights:

• “The budget proposal is the last for this current administration.
• final budget of the previous administration.
• budget change proposals.
• budget change proposals.
• Senate Budget Subcommittee No. 2 is adjourned.

Summary: The Senate Budget Subcommittee No. 2 on Resources, Environmental Protection and Energy heard budget overviews and several budget change proposals from CalRecycle, CalEPA, and DTSC. CalRecycle outlined its proposed 2026-27 budget of 987 positions and $1.9 billion, and members focused on edible food recovery funding under SB 1383, beverage container recycling fees and infrastructure under SB 1013, plastic packaging reduction under SB 54, and composting implementation under SB 279. CalRecycle said edible food recovery has recovered more than 300 million meals but lacks ongoing funding, explained that beverage container processing fees are set by statute and reflect higher recycling costs for difficult-to-recycle materials, and noted that SB 54 implementation will include a pollution prevention mitigation fund for legacy plastic cleanup. The committee also discussed the need for more composting capacity and the role of volunteer cleanup groups, while public commenters urged continued funding for food recovery, composting, and landfill response. CalEPA presented its department overview and a proposal to strengthen landfill response and enforcement, emphasizing climate, air quality, water, and cleanup priorities. Secretary Garcia described the agency’s work on methane monitoring, toxics reduction, drinking water compliance, Exide cleanup, pesticide alternatives, and implementation of AB 617, while also noting the agency’s response to federal rollbacks. Members pressed CalEPA on landfill fires and subsurface elevated temperature events, especially at Chiquita Canyon, asking about authority, scientific resources, and when intervention should occur. CalEPA said it has authority to respond but needs more coordinated technical and enforcement capacity, and later presented a $5.1 million, 12-position multi-agency proposal involving CalEPA, CalRecycle, DTSC, and the Water Board to address current landfill events and improve future prevention and response. DTSC and the Board of Environmental Safety presented several proposals tied to reform implementation, hazardous waste oversight, and emerging waste streams. DTSC reported progress in clearing its permit backlog, advancing safer consumer products regulations, and continuing Exide cleanup, while seeking additional resources for cost recovery and enforcement, PFAS work, recycling infrastructure for solar panels and lithium batteries, and a new statewide planning division to implement the hazardous waste management plan and consolidate reporting systems. The Board of Environmental Safety described its oversight role, public meetings, permit appeals process, and fee-setting authority, and said its priorities include permit appeals, hazardous waste plan oversight, and performance metrics. Members questioned whether DTSC was creating too many new subdivisions, but the department said the new structure is needed to handle growing workload and modernize regulation. Public testimony generally supported the landfill proposal, DTSC consumer product enforcement, water board staffing, and continued funding for food recovery and composting programs.

Transcript Highlights:

• Now it is a budget item, and I understand there are budget... ...for this.
• Now it is a budget item, and I understand there are budget concerns, dollar concerns, but let's take
• This will be a budget bill.
• The sponsor knows that there's no guarantee yet to be in the budget because we don't have a budget with
• reforms and do tighter budgets.

Summary: The committee heard several appropriations and policy bills, beginning with HB 263, which would appropriate $1.5 million to fund the Independent Correctional Oversight Office. Representative Blackman argued the office is needed to address serious problems in the Department of Corrections, including lawsuits, staffing shortages, injuries, and safety concerns, and said he was open to shifting existing dollars to cover the cost. A supportive witness from Justice Action Network said the funding would make the oversight office operational and is a small investment compared with the department’s overall budget. The bill received a do-pass recommendation on a 17-1 vote. The committee then considered HB 2993, as amended, which would let the Department of Public Safety spend money on legal services independent of the Attorney General and move $5 million from the Consumer Protection/Consumer Fraud Revolving Fund to the Gang and Immigration Intelligence Team Enforcement Mission Fund. Speaker Montenegro said the bill was intended to support law enforcement and shift resources toward frontline public safety work. The amendment changed the destination of the $5 million from the Peace Officers Training Fund to GITEM, and the bill passed 11-7. HB 2271 followed, dealing with firefighter cancer insurance reimbursement and rate deviations for insurers. Witnesses described it as a technical, unfinished consensus measure meant to bring fire districts into the existing cancer reimbursement structure without changing claim handling for firefighters. Members repeatedly noted more work was needed, but the bill still received a do-pass recommendation on a 16-1-1 vote. HB 2416 appropriated $20 million to DPS for local border support, including law enforcement positions, prosecution and detention costs, and equipment. Sheriffs and the Arizona Sheriffs Association testified in support, saying the funding has been used for drug interdiction, fentanyl seizures, and joint task forces, while opponents argued the money should go elsewhere. The bill passed 11-6-1. HB 2692, a procurement bill, would create or revise rules for construction delivery methods, including one-step competition and progressive design-build for federally funded public infrastructure projects. Construction and procurement stakeholders said it was a long-negotiated consensus measure, while some members worried about taxpayer risk and wanted more information; it passed 10-7-1. The committee also amended and passed HB 2478, which creates the Arizona Commission on Student Outcomes and funds it with Classroom Site Fund dollars to study K-12 accountability, standards, graduation requirements, early childhood education, and a possible trade pathways diploma. Supporters said Arizona needs a broader conversation about student outcomes and school accountability, while opponents questioned the funding source and whether the work should instead be done by existing education agencies. The amended bill passed 11-7. Finally, HB 4044 was introduced to create a Public Safety Parity Fund for DPS and Corrections salaries using proceeds from forfeited digital assets and interest from the Budget Stabilization Fund; the sponsor and a troopers association witness said it would help address long-standing pay parity and vacancy problems, but the transcript cuts off before any vote on that bill.

Transcript Highlights:

• and trying to keep those budgets balanced.
• Obviously, it's a huge budget.
• Now we're trying to balance a budget without raising...
• The budget was less than half of what our current budget is, and it was a five to six billion dollar
• The worst pain we'll have next budget period.

Transcript Highlights:

• This budget is huge. I believe it's what a three percent increase.
• And so, is there anything in this budget that we're not seeing?
• We try to reserve places in the budget, but a bill still has to pass.
• Very few places had the base budget grown.
• I do think the budget was smoother this year than it's been in the past.

Keywords: 996, all

Transcript Highlights:

• The Governor's budget maintains the 2025 Budget Act Agreement to support Cal Fire operation costs with
• Well, from the general budget.
• They've been appropriated through the budget, through the budget change proposals.
• They're appropriated through the budget, through budget change proposals.
• parts of the budget.

Summary: The subcommittee heard extensive testimony on the governor’s proposed sustainable aviation fuel (SAF) tax credit, which would provide a $1 to $2 per gallon credit against the diesel excise tax for SAF sold for use in California from 2026 to 2036. The Department of Finance and CARB argued the proposal would help decarbonize aviation, support a long-term transition in the fuel sector, and encourage in-state investment and jobs. The Legislative Analyst’s Office and several outside witnesses recommended rejecting the proposal, saying it is a relatively expensive way to reduce greenhouse gases, could have uncertain or limited net climate benefits, and may shift limited feedstocks away from renewable diesel rather than create additional fuel supply. A major point of debate was whether the credit would mainly benefit California refineries and workers or instead subsidize out-of-state producers while reducing revenue for transportation programs. Supporters, including union members, refinery workers, airlines, Boeing, and airport representatives, said SAF is one of the few viable near-term options for aviation, that California should keep fuel production and jobs in-state, and that the credit would help maintain refinery operations and support the industry’s transition. Opponents, including the LAO, trucking and fuels groups, environmental organizations, and county/road advocates, warned that the proposal could raise gasoline and diesel prices, reduce diesel excise tax revenue for highways and local streets and roads, and provide limited climate benefit compared with other uses of state funds. Some members also raised concerns about feedstock availability, food-system impacts, and whether the policy should be more narrowly targeted if the goal is to support a specific refinery. No vote was taken. The chair stated at the outset that all items on the agenda were being held open for a future hearing, and public comment was taken after the first item because of the level of interest. The hearing then continued with public testimony, which was split between strong support from labor and industry and strong opposition from environmental, transportation, and local government groups.