Transcript Highlights:

• We also have made reductions in our contracts with mental health.
• We're making the necessary reductions. We're strengthening our systems.
• They're in a fiscal deficit as well as a fiscal cliff.
• We are now in our second year of deficit.
• It's projected that we will be having, in the next few years, a deficit.

Summary: The committee heard several audit requests and related testimony. The first major item was an audit of Coachella Valley Unified School District’s contract and fiscal management. The author and supporters described long-standing fiscal mismanagement, large budget shortfalls, layoffs, contracting concerns, and questions about the district’s foundation and use of public funds. District representatives and the Riverside County Office of Education said the district is already under fiscal oversight, has a stabilization plan, and is working to reduce deficits and improve student outcomes. After extensive debate and public comment, the motion to approve the audit was put on call because the committee did not have the required votes from both houses at that moment. The committee then approved an audit of East Bay transit agencies in Alameda and Contra Costa counties. Senator Wahab argued the region’s many overlapping transit agencies create fragmentation, duplication, and inefficiency, especially amid a fiscal cliff and possible future tax increases. Transit agencies and labor representatives opposed the audit, saying the agencies already undergo multiple audits, serve distinct local needs, and are implementing regional coordination efforts. After testimony from agency leaders and public commenters, the committee voted to approve the audit. The next item was an audit of California Community Colleges’ unrestricted reserves. Senator Archuleta and supporting faculty representatives said reserves have grown substantially and may be diverting resources from student services, instruction, and workforce programs. They argued there is little oversight when reserves become too high. The Chancellor’s Office and Calbright College were invited to respond, and the audit objectives focused on reserve growth, reasons for high balances, oversight by the Chancellor’s Office, and effects on students and staff. The transcript cuts off during the Chancellor’s Office response, so the final committee action on this item is not shown.

Transcript Highlights:

• I also want to note that the Senate led the call for new revenues to address our structural deficit,
• make cuts as well and hold revenue from this year for the year after next so that the structural deficit
• or who have been frozen out of access to care for future reductions.
• further reductions to the Medi-Cal program.
• If it doesn't have a blanket coverage reduction.

Keywords: 987, senate, all

Transcript Highlights:

• Second, this also relies on $81 million in the greenhouse gas reduction fund.
• We've had a 20-year deficit, as pointed out by the LAO.
• Solve the structural deficit in the motor vehicle account, aside from this short-term fix?
• So we've got a deficit problem. We have no plan.
• If you have a big deficit, no good solution in front of you at this point in time.

Keywords: 988, house, all

Transcript Highlights:

• There's a lot more work to be done on the reduction of evacuation space in the deficit there. facilities
• There's a lot more work to be done on the reduction of evacuation space in the deficit there.
• There's a lot more work to be done on the reduction of evacuation space and the deficit that comes with
• 28 counties are in deficit of special needs shelter spaces.
• Inevitably, there's a deficit.

Summary: The committee held its first meeting of the session, with members introducing themselves and expressing support for veterans, military families, first responders, space industry growth, and domestic security. The first presentation was from the Florida Division of Emergency Management on the 2024 hurricane season and recovery efforts. Officials described response and recovery operations for Hurricanes Debbie, Helene, and Milton, including sheltering, meals, water, tarps, power restoration, flood control, debris removal, and public assistance funding. They emphasized that recovery is ongoing, that mitigation and resiliency investments are critical, and that Florida’s shelter space remains in deficit in many counties, especially for special needs populations. Senators asked about improving logistics capacity, technology for grant processing, HOA/private property debris issues, drainage and culvert maintenance, and ways to expand shelter capacity; the witness said more technology, better local coordination, and county-by-county planning would help, while noting limits on state authority over private property and county emergency manager qualifications. Committee members praised FDEM’s response and asked how the Legislature could help, including whether more logistical hubs, pumps, and flood-control equipment were needed. The witness said technology investments could reduce fatigue and improve grant and recovery processing, but that manpower would still be necessary. The committee also discussed the statewide emergency shelter plan, the use of schools as shelters, and the need to identify vacant commercial space and other facilities for future sheltering and special-needs needs. The witness said FDEM works with counties and commerce partners to identify available space and uses legislative funding for shelter retrofits and new construction when needed. The second presentation was from Blue Origin on its Florida operations. The company outlined its work in New Glenn, New Shepard, Blue Ring, lunar landers, and engine production, highlighting its Space Coast presence, more than 3,600 Florida employees, and over $3 billion invested in facilities. Blue Origin also described partnerships with Space Florida, public school Space Academies, internships, SkillBridge, and STEM outreach through Club for the Future. Members asked about the upcoming New Glenn launch window, which the company said was targeted for later that week, and the committee expressed interest in Blue Origin’s role in Florida’s space economy. The meeting ended with no further business and a motion to adjourn, which was adopted.

Transcript Highlights:

• <00:32:14.080> over<00:32:14.399> the we saw a consistent reduction over the we saw
• $260 million deficit we discussed.
• Seeing that it ends with a $259,000 structural deficit. So, that's a pretty concerning issue.
• deficit in the healthcare access fund. deficit in the healthcare access fund.
• So, that's a uh structural deficit.

Keywords: 1187, senate, all

Transcript Highlights:

• The deficit.
• We addressed the deficit grant program across the board.
• In this bill, we focused on actual spending reductions.
• There are some automatic reductions that happen in this.
• We focus on spending reductions in program integrity.

Transcript Highlights:

• The bottom line is this: we didn't share in what caused this deficit.
• <00:12:48.480> we<00:12:48.600> didn't in what caused this deficit we didn't in what
• The cost shifts of the proposed budget also includes reductions in aid payments to counties.
• in Aid payments to counties reductions in Aid payments to counties and<00:23:54.440> finally<
• Now we're facing a $5.1 billion deficit.

Keywords: 1187, senate, all

Transcript Highlights:

• would result in larger reductions to funded child care slots.
• And when we talk about harm reduction, we can think...
• The May Revision is proposing a reduction of $62.6 million.
• This is a technical budget reduction, which is actually very good.
• We are also concerned with the reduction.

Summary: The Assembly Budget Subcommittee on Human Services held a hearing on the Governor’s May Revision, with no votes taken. The first major topic was child care and early education, where the Department of Social Services and Department of Finance outlined proposed changes to absorb federal Child Care and Development Fund and Proposition 64 revenue reductions, shift some funding between child care programs, end funding for prospective pay implementation now that the federal requirement has been rescinded, adjust the alternative payment administration structure, and fund child care infrastructure grants and a Low-Income Investment Fund contract closeout. The Legislative Analyst’s Office said the budget makes progress on the structural deficit but recommended maintaining the administration’s solution level, making reserve deposits, and avoiding new ongoing commitments; it also raised concerns about shifting reductions to the California Alternative Payment Program and about the proposed administrative-rate change. Committee members strongly criticized the proposed loss of child care slots and said they would oppose eliminating those slots, while also expressing support for child care as essential infrastructure. The committee then reviewed California State Preschool Program proposals. Finance and CDE described reductions to the preschool COLA from 2.41% to 2.01%, removal of prospective pay funding, and increases for the QRIS block grant, audit support, and rate reform implementation. Trailer bill language would codify age-based rate categories, inclusion-rate documentation, family fee collection rules, portability, and excused absences. CDE supported the QRIS increase and some attendance and family-fee changes, but warned that aligning three- and four-year-old rates could reduce support for three-year-olds and that the budget does not fully cover enrollment growth. Members also questioned whether the preschool and child care slot reductions should be reallocated rather than terminated, and the administration said the reductions were intended to reflect current utilization and avoid harm to currently enrolled families. The hearing then moved to CalFresh and nutrition programs. CDSS said the May Revision includes a one-time CalFood augmentation, funding to cover federal SNAP administrative cost-share pressures, and additional staffing and technical assistance to implement HR 1 changes, including the able-bodied adults without dependents time limit and new non-citizen eligibility rules. The department estimated HR 1 could cut CalFresh funding by $2.3 billion to $3.7 billion annually and affect about 500,000 people, with roughly 806,000 adults potentially subject to the time limit and about 34,000 non-citizens expected to lose eligibility once fully implemented. Members pressed for stronger harm mitigation, including a $98 million backfill to protect families from losing food benefits, and raised concerns about county workload and the “chilling effect” on immigrant participation. The final portion of the transcript began the IHSS presentation, noting a revised budget of $33.7 billion total funds and $12.8 billion General Fund, with proposed reductions tied to Medi-Cal asset-limit changes and other federal conformity items.

Transcript Highlights:

• The annual deficit for this particular FY 24 year, recall, was $1.9 trillion.
• Still have a deficit. That's just how large it is.
• if a bill is passed to increase the deficit.
• And the deficit spending that's triggered by H.R. 1 is.
• Deficit spending that would be triggered. Why am I freaking out about this?

Transcript Highlights:

• we also would propose considering a trigger so that when there are revenue surpluses, tax rate reductions
• include limiting spending to trend revenue growth along with Minnesota's economic performance, with a deficit
• we also would propose considering a trigger so that when there are revenue surpluses, tax rate reductions
• we also would propose considering a trigger so that when there are revenue surpluses, tax rate reductions
• We propose considering a trigger so that when there are revenue surpluses, tax rate reductions go into

Keywords: 1183, house

Summary: The committee took up House File 4, first adopting the H004A1 amendment without objection. The author described the bill as a constitutional amendment intended to create a tax relief account funded from projected budget surpluses, defined as revenues exceeding 105% of projected expenditures based on the November forecast. Supporters framed the proposal as a way to return excess taxpayer money to families, homeowners, and seniors rather than allowing the state to retain or redirect it. Testimony in support came from Ranna Lee of Americans for Prosperity, who praised the bill’s clarity and argued that taxpayers are overburdened and should receive surplus funds back; she also suggested broader tax and budget reforms, including rate reductions and tighter spending limits. Nan Madden of the Minnesota Budget Project testified in opposition, saying the legislature already has authority to use surpluses for rebates or tax cuts and warning that constitutionalizing tax policy would reduce flexibility, weaken accountability, and make it harder to respond to changing conditions, emergencies, or recessions. Members then briefly commented, with Republicans expressing support for returning money to taxpayers and citing cost-of-living pressures and fixed incomes. The committee did not hear a formal department position. At the end of the hearing, Representative Johnson renewed the motion that House File 4, as amended, be recommended to pass and sent to the Ways and Means Committee; the motion prevailed on a voice vote.

Transcript Highlights:

• that the product we are delivering today is going to make significant progress on our structural deficit
• budget actions, and I’m proud that we are going to make real progress on those out-year structural deficits
• In addition, the budget reduces the out-year structural deficits that were identified in the Governor's
• Instead, this budget represents a balance of program reductions and increased revenues to address both
• near-term budget deficits and longer-term structural deficits.

Summary: The Assembly Budget Committee met to consider the final three-party agreement for the 2026-27 state budget and 19 implementing bills, including two budget bill juniors and 17 trailer bills. Committee leadership and administration officials described the budget as a balanced plan that reduces out-year structural deficits, maintains large reserves, and makes major investments in health care, education, housing, child care, public safety, and other core services while also responding to expected federal cuts and fiscal uncertainty. The Department of Finance outlined the package’s major components, including Medi-Cal adjustments, education funding increases, higher education changes, child care and human services updates, housing and homelessness funding, energy and transportation provisions, and tax and general government changes. Members asked questions about several provisions, including CSU enrollment targets and turnaround plans, the Prop. 98 settle-up mechanism, the plastics market development payment program, housing accountability measures, NextGen 9-1-1 implementation, and veteran services. Staff and administration witnesses explained that the higher education language is intended to improve campus-by-campus reporting and oversight, that Prop. 98 settle-up would be finalized later through the statutory certification process, and that NextGen 9-1-1 now includes one-time funding, quarterly reporting, an independent technical review, and a state audit. Members also discussed the HAP homelessness funding increase to $900 million and the balance between accountability and timely distribution of funds. The most extended exchange centered on comparisons between funding for veterans and Medi-Cal/immigrant health coverage. Republican members argued the budget spends far more on undocumented immigrant services than on veterans, while Democratic members and Finance staff responded that the comparison was misleading because many veterans’ services are federally funded and the state budget also includes dedicated veteran support. The chair and other members emphasized that the budget reflects difficult tradeoffs and that the package protects vulnerable populations, preserves health care access, and advances affordability. No final vote was described in the excerpt, but members indicated support for the overall package and said they would support it on the floor.

Transcript Highlights:

• Senators tell us how they hope to avoid a deficit while also avoiding cuts to state services Minnesotans
• Reductions in federal funding will result in increased cost to the state budget.
• know we've heard that there's a deficit know we've heard that there's a deficit on<00:04:50.680>
• and of our looming budget deficit.
• and of our looming budget deficit and of our looming budget deficit deficit deficit and<00:15:29.440

Keywords: 1187, senate, all

Transcript Highlights:

• I will note that coverage reduction in premium increases coverage reduction in premium increases um<00
• We're looking at a $6.1 billion deficit in two years.
• <00:30:30.159> in<00:30:31.039> um is actually a reduction in um is actually a reduction
• deficit.
• Two years from deficit.

Keywords: 1187, senate, all

Transcript Highlights:

• <01:18:15.240> uh or other incentives or tax reductions uh or other incentives or tax reductions
• Of reduction in their aid award.
• The reductions do vary. The dollar reductions do vary by student.
• would<01:49:40.280> differ reductions would differ reductions would differ um<01:49:42.240
• <01:54:00.880> in on top of the significant reductions in on top of the significant reductions

Keywords: 1187, senate, all

Transcript Highlights:

• But the good news is in that second biennium of the projected deficit nearly 90% of that has been erased
• With that, I will turn it over to Senate Leader, uh, Erin Murphy. deficit nearly 90% of that has been
• Um, if they can, that's where we get the reduction in costs.
• we were seeing out in the out years and a 45% reduction in the structural imbalance.
• reduction in the structural imbalance. reduction in the structural imbalance.

Keywords: 1183, house

Transcript Highlights:

• and actually if you structural deficit and actually if you look<00:02:17.840> at<00:02:18.000
• in um the effect of the reduction in um the effect of the reduction<00:09:43.800> in<00:09:44.000
• solves half of the um structural deficit solves half of the um structural deficit into<00:12:02.639
• <00:36:21.720> or what is considered uh cost reductions or what is considered uh cost reductions
• Yes, there are going to have to be some hard decisions made to deal with the deficit.

Keywords: 1187, senate, all

Summary: The committee met to hear a presentation from the Commissioner of Revenue on Governor Walz and Lieutenant Governor Flanagan’s tax proposal, with members told no public testimony would be taken because bill language was not yet available. The commissioner said the proposal would lower the statewide sales tax rate by 0.75 percentage points while expanding sales tax to selected professional services such as legal, brokerage, banking, and accounting, with several carve-outs. He emphasized that the plan would not add business-to-business sales taxes, arguing that taxing business inputs leads to tax pyramiding and higher hidden consumer costs. The commissioner said the rate cut would be the first sales tax rate cut in state history and estimated it at about $95 million annually, while the service expansions would raise about $203 million to $205 million annually, for a net increase of roughly $110 million per year. He said the proposal is part of the governor’s broader budget, which he described as addressing long-term structural deficits and funding other priorities such as an R&D credit, an expanded sustainable aviation fuel credit, fraud prevention, and service-member retention bonuses. He also said the carve-outs and exemptions would be reflected in the revenue estimate. Members questioned whether the proposal was truly a tax cut or instead a tax increase, and several asked for a revenue-neutral rate if all or more services were taxed. One member raised concerns about how pro bono legal work with a fee would be treated, and another asked about possible streamlining issues and whether fees are treated as taxes in statute. The commissioner said a fee would be taxable depending on the arrangement and that the department would review the language carefully once drafted. He also said the department would provide more detailed estimates later, including what the rate would be if the tax were made revenue neutral. No votes or formal actions were taken.

Transcript Highlights:

• Step two, when the wheels come off this cart and the budget deficit is exposed, blame Donald Trump.
• Even though your budget deficit existed far before Donald Trump even got reelected to the office.
• Even though your budget deficit existed far before Donald Trump even got reelected to the office.
• We couldn't do deficit spending.
• We have a deficit and we borrow from a rainy day fund; that's not good budgeting.

Summary: The Assembly convened after a quorum call and proceeded to floor business, with the main item being SB 101, the state budget bill. Before debate on the bill, Assembly Member Sanchez offered amendments to redirect funding toward Proposition 36 implementation, wildfire prevention, Medi-Cal provider reimbursement, developmental services, and other priorities; the majority moved to lay those amendments on the table, and the motion passed 43-18. The chamber then took up SB 101 as the budget bill for immediate effect. Debate on the budget was extensive and sharply divided. Supporters, including Assembly Member Gabriel and several committee chairs, described the budget as a difficult but responsible compromise that protects Medi-Cal, IHSS, child care, housing, wildfire prevention, and other safety-net programs while responding to a projected deficit and federal uncertainty. Opponents criticized the budget as fiscally unsound and argued it relied on accounting gimmicks, did not adequately fund Proposition 36 or wildfire prevention, and continued spending on high-speed rail and Medi-Cal coverage for undocumented immigrants. Several members also raised concerns about gas taxes, provider reimbursement, probation funding, and the impact on vulnerable Californians. After debate, the Assembly voted on SB 101 and passed it 57-19. The measure was sent immediately to the Senate. The body then announced upcoming session schedules, with no floor or check-in sessions on June 14 and 15, and a floor session set for June 16 at 1 p.m., before adjourning.

Transcript Highlights:

• We have a $1.1 billion deficit.
• We're at a billion dollar deficit right now.
• deficit. He had a $4.5 billion surplus. deficit. He had a $4.5 billion surplus.
• at a billion dollar deficit right now. at a billion dollar deficit right now.
• targeted rate reductions. targeted rate reductions.

Keywords: 981, all

Summary: The House convened, established a quorum, approved the journal, and then moved out of order to consider Senate Joint Resolution 10, a resolution celebrating Lunar New Year 2026. The resolution highlighted Colorado’s observed Lunar New Year holiday, the cultural significance of the holiday to Asian-American communities, and the contributions of Asian-Americans in Colorado. Several members spoke in support, including remarks about the Far East Center, Asian-American heritage, and the importance of recognizing the holiday statewide. The chamber also welcomed a number of guests and groups for the Lunar New Year observance, including state and international dignitaries, community leaders, and lion dancers. Representative Soer and others introduced guests and offered brief remarks; the House then recessed briefly for the celebration. After returning, the House adopted Senate Joint Resolution 10 by a vote of 60 ayes, with five excused and no no votes. Following the resolution, members made announcements about committee meetings and visiting student groups, including District 6 Day, Disability Rights Advocacy Day, and several school groups at the Capitol. The House then took up third reading of supplemental appropriations bills. House Bill 1150, a supplemental appropriation to the Department of Agriculture, passed on third reading. House Bill 1151, a supplemental appropriation to the Department of Corrections, prompted extended debate over prison funding, inmate care, staffing, and parole-related concerns; members argued both for humane treatment and for fiscal restraint, and discussion was still ongoing in the portion provided.

Transcript Highlights:

• For instance, up to 38% reduction in sulfur oxides, 11% reduction in carbon monoxide, 62% reduction in
• Cost reductions, future emissions reductions, and if we carefully manage the unintended consequences.
• So any reduction is significant.
• So any reduction is significant.
• and almost 100% sulfur reduction.

Summary: The meeting began with a budget subcommittee hearing on a proposed sustainable aviation fuel (SAF) tax credit trailer bill. Assembly Members Ávila Farías and another member spoke in support, emphasizing union jobs, refinery investments, and the need to decarbonize aviation. The Department of Finance said the Governor’s proposal would provide a $1 to $2 per gallon credit against the diesel excise tax for SAF sold in California from 2026 to 2036. The Legislative Analyst’s Office recommended rejecting the proposal, arguing it is a relatively expensive way to reduce emissions, has uncertain environmental benefits, could significantly reduce transportation revenues, and conflicts with the spirit of voter restrictions on transportation taxes. Committee members questioned whether the credit would mainly benefit out-of-state producers, whether firms would have diesel tax liability to use the credit, and whether the proposal would shift production away from renewable diesel and raise fuel prices. Administration and CARB staff said the credit is intended to support aviation decarbonization, preserve jobs, and help keep California on track toward its 2045 climate goals. LAO and UC Berkeley testimony countered that the policy could mostly subsidize existing technologies, that feedstock supply is limited, and that the net emissions benefit may be small relative to the cost. Members also asked about the effect on local streets and roads, SHOP, and trade corridor funding; Finance estimated a $165 million annual revenue impact would reduce those programs, while LAO said the reductions would mean fewer projects over time. No vote was taken, and the chair said the issue would remain open for further discussion. The committee then moved to a zero-emission vehicle incentive trailer bill proposing a one-time $200 million appropriation to CARB for a new point-of-sale incentive program focused on first-time buyers and leases of new and used light-duty ZEVs. Supporters said the program would help offset the loss of the federal EV tax credit, maintain momentum in California’s ZEV transition, and use a one-to-one match with participating automakers to double the state’s investment. LAO recommended rejection, saying the proposal does not meet the high budget bar this year, lacks enough program detail to evaluate, is unlikely to move sales significantly given the size of the appropriation, and could duplicate existing state and utility programs. Members asked about current incentives across light-, medium-, and heavy-duty sectors, the recent decline in ZEV sales, and whether the program would help lower-income buyers rather than subsidize purchases that would have happened anyway. CARB said the proposal is meant to fill a gap in the light-duty market, where sales fell sharply after the federal credit expired, and noted existing programs for other vehicle classes. The Department of Finance also addressed a separate question about the Motor Vehicle Account, saying a previously planned GGRF transfer was no longer needed because updated forecasts showed the fund had sufficient balances, though LAO said the account still has a structural long-term imbalance. The discussion ended before any vote or action on the ZEV proposal.

Transcript Highlights:

• I was very pleased to hear, though, that the governor has realized that we are heading toward a deficit
• We're seeing a budget where we have a deficit coming at us of $6 billion.
• where we have a deficit coming at us<00:03:45.120> of<00:03:45.360> $6<00:03:45.879>
• , when our schools are billion deficit, when our schools are just<00:08:12.960> buckling<00:08
• when he was talking about the deficit? when he was talking about the deficit?

Keywords: 1183, house