Transcript Highlights:

• Signs and placards are not permitted in the hearing room.
• </c><00:46:33.200><c> Verbal</c><00:46:33.520><c> outbursts,</c> hearing room.
• Verbal outbursts, hearing room.
• Our goal is to from the hearing room.
• </c> because the trauma of an emergency because the trauma of an emergency removal<01:31:56.200><c> never

Bills: HF3665 , HF3002 , HF4217 , HF4125 , HF4174

Committee: House Children and Families Finance and Policy

Transcript Highlights:

• open states of emergency on their website.
• , and the state of emergency declaration Proclamation that ended a number of states of emergencies, and
• the state of emergency declaration associated with the Caldor Fire was one of those.
• And was Berry Creek still declared, or was it still an active emergency that was approved?
• So I was a teacher and I was an OES emergency manager.

Transcript Highlights:

• My next-to-the-last question is about the emergency clause. Is there an infrastructure crisis?
• Next to the last question is about the emergency clause.
• Is there an infrastructure crisis that we're trying to address with, or remediate with, the emergency
• There's a $24 billion emergency. Follow-up. Thank you, Mr. Chair.
• I think everybody in this room knows how important this industry is to us.

Bills: SB1191 , SB1314 , SB1319 , SB1333 , SB1346 , SB1439 , SB1509 , SB1510 , SB1613

Committee: Senate Energy

Summary: The Senate Energy Committee met and first laid over a couple of items before taking up a series of energy and water-related bills. Senate Bill 1333, presented by Sen. Hall, was framed as a symbolic reflection of the Oklahoma Water Resources Board’s budget request and the state’s estimated $24 billion water infrastructure need through 2030. Members asked about project prioritization, emergency needs, long-term funding, federal matching dollars, and whether some proposed spending would go to outreach or new programs rather than direct infrastructure. Supporters emphasized the statewide water crisis, rural and municipal needs, and the goal of building a comprehensive water package; the bill passed 11-0. Senate Bill 1191, presented by Sen. Daniels, would eliminate an unused board tied to the Low Carbon Energy Initiative; the deputy secretary testified the board was never actually founded and collected no research, and the bill passed 11-0. The committee then considered Senate Bill 1439, the Energy Security and Independence Act, also by Sen. Daniels, which would shield fossil fuel companies operating lawfully and within permits from certain climate-change and emissions-based lawsuits. Questions focused on why the bill applied only to fossil fuels, whether it could affect landowners’ rights or environmental standards, and whether it would create a lower regulatory bar in Oklahoma. The author said it was aimed at a specific category of litigation seen in other states and would not protect unlawful conduct; the bill passed 10-1. Senate Bill 1314, by Sen. Yek, would raise the cap on the well drillers and pump installers indemnity fund from $50,000 to $100,000 and increase the per-well cap from $10,000 to $25,000; members discussed how the fund works and its limited size, and it passed 10-0. Senate Bill 1509, also by Sen. Yek, would update groundwater well spacing rules so the Water Resources Board could apply spacing requirements across all groundwater basins, not just those with maximum annual yield studies. The board said the bill is meant to protect existing commercial wells from encroachment, with exceptions if water cannot be found elsewhere on the property; it passed 10-0. Senate Bill 1319, presented by Sen. Hall, would allow the Corporation Commission to use plugging funds in rare cases where homes are affected by historic oil and gas activity or orphan wells; members raised concerns about caps, proof of contamination, remediation versus plugging, and whether landowners could present expert evidence. The author said the language was still being refined with the Commission, and the bill passed 10-0. Senate Bill 1346, by Vice Chair Woods, would direct the Water Resources Board to establish a water and wastewater infrastructure program with competitive loans for eligible entities; it was described as part of a broader effort to consolidate water measures into a comprehensive package and passed 9-0. The committee also passed Senate Bill 1613, which would let the LP Gas Administration buy, lease, and own its own vehicles instead of using the OMES fleet and would rename a miscellaneous permit as a food truck permit; it passed without debate. The meeting ended with adjournment and notice that there would be no committee meeting the following week.

Transcript Highlights:

• Say, for instance, an emergency situation happens.
• Will it be the senior waiting for emergency services?
• With a population boom so fast that we can't keep count of how many residents we have, emergency room
• We warned y'all about the potential abuse of the governor's emergency trust fund.
• room doors open.

Transcript Highlights:

• Changes some things regarding the emergency clause.
• It came through General Laws instead of Education because it's a pretty emerging issue.
• This bill came through your Emerging Issues Committee.
• This bill came through your emerging issues committee.
• Could we get a little order in the room, please? Proceed, please.

Transcript Highlights:

• The gentleman from Platte is again recognized for the emergency clause. Thank you, Mr. Speaker.
• Gentleman from Jefferson, speak in support of the emergency clause. Proceed, Representative.
• Speaker, your Committee on Fiscal Review will meet in Hearing Room 5444 in five minutes. Mr.
• Speaker, your Committee on Fiscal Review will meet in Hearing Room 5444 in five minutes.
• The gentleman from the handsome district, could we make a little room here? Thank you so much.

Summary: The House recognized its drafters and research staff, then moved through committee reports and several conference committee reports and final passage motions. Senate Joint Resolution 87 was adopted and finally passed after debate over a provision affecting the City of St. Louis sheriff; supporters said the final version restored the original format with a minor wording change, while opponents argued it removed local voter control. The resolution passed 95-46 on both the conference report and final passage votes. Members then adopted and finally passed Senate Bill 973, a measure combining a wholesaler provision and a land bank/real estate transparency provision, with supporters describing it as consumer protection and cleanup language. Senate Bill 1421, a public safety package, was also advanced after a motion to exceed the conference differences; debate focused on clean slate provisions, masked intimidation penalties, prosecuting attorney salaries, fentanyl language, good time credit, Brianna’s Law, and a St. Louis liability provision. The conference report passed 116-18, final passage 110-25, and the emergency clause for the drone-related portion passed 136-5. The House also adopted and finally passed Senate Bills 835 and 1111, a broad package including insurance claim assignment protections, court automation updates, treatment court administration, a circuit judgeship codification, a St. Louis civil case surcharge, and anti-SLAPP protections. Senate Bill 1408, which authorizes MoDOT and the Highway Commission to consider raising rural interstate speed limits from 70 to 75 mph, was receded to the Senate version and finally passed 93-46. Senate Bill 913, extending multiple agricultural tax credits through 2033 and adding a short-line railroad credit, drew extensive debate over tax credits, budget priorities, and return on investment before the previous question was ordered and the bill passed 107-30. Finally, Senate Bill 1553 was passed, creating incentives and a grant program tied to critical minerals and pharmaceuticals to reduce reliance on foreign suppliers; supporters framed it as a jobs and national security measure, while one member raised concerns about local revenue impacts before clarifying the bill’s scope. The House then received Senate messages indicating the Senate had passed a House bill, and the session continued.

Transcript Highlights:

• I tell you, when I look into a room, I look at a room.
• ,</c><00:44:15.800><c> I</c> tell you, when I look into a room, I tell you, when I look into a room,
• And so, I'm seeing look at a room.
• </c><01:19:36.880><c> room</c><01:19:37.120><c> because</c><01:19:37.400><c> they</c> risk, to an emergency
• room because they risk, to an emergency room because they did<01:19:37.680><c> not</c><01:19:37.920>

Committee: Senate Human Services

Transcript Highlights:

• 437 from 1 to 2:30; Local Government in Room 127; Privacy and Consumer Protection in Room 444.
• Boy, in a room full of attorneys, the silence is deafening.
• For Republican members, there will be a caucus in Room 125.
• 437, Local Government in Room 127, Privacy and Consumer Protection in Room 444.
• Natural Resources Committee will now meet at 11 a.m. in Capital Room 437.

Summary: The Assembly convened after initially lacking a quorum, completed the roll call, and opened with prayer and the Pledge of Allegiance. Members then moved through a long daily file and concurrence calendar, with many items passed without debate and several bills taken up for final votes. The chamber also handled procedural motions, including re-referring AB 1152 to the Public Safety Committee, suspending rules for guest introductions, and later a roll-call vote on a motion to print a journal letter, which passed 41-16. Among the major Senate bills considered on third reading, SB 385, SB 753, SB 838, SB 643, SB 645, SB 761, SB 774, SB 400, SB 24, SB 37, SB 258, SB 364, SB 403, SB 770, and SB 22 all passed, with debate focused on topics such as shopping cart recovery, housing and land use, carbon removal grants, jury selection rules in civil cases, student CalFresh access, real estate licensing sunsets, renewable energy tax incentives, utility spending transparency, attorney advertising ethics, spousal rape protections for disabled spouses, freeway advertising placement, medical aid in dying, EV charging access in HOAs, and gift certificate redemption values. SB 596 on hospital nurse staffing drew the most extended debate, with supporters arguing it enforces existing law and protects patient safety, while opponents warned it could worsen rural hospital closures; the bill ultimately passed 59-0. The Assembly also concurred in numerous Senate amendments to Assembly bills, including measures on service of process, firearms, workers’ compensation, family leave for crime survivors, solid waste, water reporting for data centers, student information privacy, Diwali recognition, wildfire workforce recovery, educational equity, civic education, office-to-housing conversions, cannabis tax relief, browser privacy, housing element transparency, landlord-tenant appliances, code enforcement, homelessness, DEIA in state government, inmate firefighter wages, children’s health, real estate, rehiring protections for laid-off hospitality workers, hazardous materials, housing covenants, aging, care facilities, species protection, CalWORKs modernization, cannabis access for seriously ill patients, foreign labor contractors, and downtown revitalization financing. Most of these concurred with broad bipartisan margins; AB 247 on inmate firefighter wages drew especially extensive bipartisan support and passed 74-0, while AB 93 on data center water reporting and AB 766 on state DEIA planning drew some opposition but still passed concurrence.

Transcript Highlights:

• Uh it was not long before the idea emerged as well to include uh the Northern Kentucky Crime Lab, uh
• Uh we were just talking in the back of the room here how important it is to spend time during programming
• as well to include uh the emerged as well to include uh the Northern<00:03:19.280><c> Kentucky</c><00
• Um those youth we would never emergency.
• They are not emergency<00:54:45.760><c> medically</c><00:54:46.480><c> trained</c> emergency medically

Summary: The interim Budget Review Subcommittee for Justice and Judiciary received an update on Northern Kentucky University’s capital project to house the Northern Kentucky Medical Examiner’s Office and the Northern Kentucky Crime Lab in the former Highland Heights Civic Center building on NKU’s campus. NKU and Justice Cabinet staff described the project timeline: the building was identified in late 2022, lease terms were agreed to in early 2023, a pre-construction evaluation agreement was executed in May 2023, the General Assembly authorized $21 million in April 2024, and the lease and construction agreement were finalized in spring 2026. The project is now being prepared for bid, with construction expected to start in August and occupancy targeted for January 2028. About $1 million has been spent so far on design and related investigations. Testimony emphasized that the vacant building was structurally sound but required major upgrades, including HVAC, plumbing, electrical, roof, windows, a generator, specialized mechanical systems, security, and geothermal work to meet the needs of two separate operations sharing one facility. NKU said it is contributing $3.7 million to the project. Committee members asked about the condition of the building, the urgency of the project, and why the process took so long. Justice Cabinet and real properties officials said the medical examiner’s office had been shut down since roughly late 2017 or 2018, that the state had first sought funding in the 2022 budget for staffing, a lease, and equipment, and that it took time to find a suitable leased location because the facility has highly specialized requirements. Members also asked about operating costs, annual lease costs, and the impact of the office’s absence on families and counties in Northern Kentucky. Officials said the lease cost is based on NKU’s expected maintenance-related expenses, while utilities and staffing are covered through the Office of the State Medical Examiner or Kentucky State Police, with seven medical examiner positions funded in House Bill 500 and two additional KSP positions requested for the crime lab. They explained that, until the new facility opens, bodies from Northern Kentucky are generally transported to Louisville for autopsy, with transportation costs borne by the coroner’s office. No votes were taken, but the committee requested follow-up information, including lease cost numbers and additional details on facility usage and timing.

Transcript Highlights:

• After his internship in Santa Barbara, California, he moved to Tucson to begin practice as an emergency
• He practiced emergency medicine in rural hospitals in southern Arizona for over 30 years.
• Emergency measures aren't casual shortcuts.
• This was an attempt to get a splash pad approved with an emergency measure, which is a gross abuse of
• emergency measures.

Transcript Highlights:

• We are holding our subcommittee hearing here in State Capitol Room 113.
• And when we deliberate in this room, our responsibility is not to defend your one side or another.
• Homelessness remains high in California, which I think is not news to any of us here in this room.
• The first is the emergency housing voucher program. in the capacity of the system.
• The first is that the emergency housing voucher program, California.

Summary: The Senate Budget and Fiscal Review Subcommittee 4 met to hear an oversight discussion focused on homelessness, including the state of homelessness in California, state data systems, and the Homeless Housing, Assistance, and Prevention (HAP) program. In opening remarks, the chair emphasized accountability and the need to focus on families and people at the bottom rung, while the vice chair argued that homelessness and affordability problems stem from policy choices and the state should give counties more flexibility rather than top-down mandates. The committee also announced that the one scheduled vote would be postponed and public comment would be taken later. Dr. Ryan Finnegan of UC Berkeley’s Turner Center presented recent homelessness data, saying California’s homelessness remains high at about 187,000 people in the 2024 point-in-time count, with most still unsheltered, though the unsheltered share has declined somewhat. He explained differences between point-in-time counts and the state’s Homeless Data Integration System (HDIS), noted progress in shelter, permanent supportive housing, rapid rehousing, and interim housing capacity, and highlighted declines in youth and veteran homelessness. He also described persistent racial disparities, the large number of chronically homeless people, and risks from federal changes and possible reductions to programs such as Emergency Housing Vouchers and Continuum of Care funding. Members questioned the causes of recent trends, the role of Housing First, Proposition 47, Martin v. Boise, and how funding streams such as HAP and CalAIM are layered together. The California Interagency Council on Homelessness then outlined its data systems and AB 799 implementation. Staff explained that HDIS aggregates HMIS data from all 44 continuums of care and is used to measure outcomes, disparities, and program effectiveness statewide. They said HAP 4 was cost-effective under the State Auditor’s methodology, and that new AB 799 dashboards will provide more public-facing fiscal and outcome reporting by June 2027. Members asked whether the system can better distinguish which interventions work, how self-sufficiency will be measured, how fraud is detected, and whether the council can meet the auditor’s concerns on time. Cal ICH said it has met prior statutory deadlines, that program outcome data already exist, and that fiscal reporting will be built through a web-based tool and aligned with existing departmental reporting systems.

Transcript Highlights:

• It certainly doesn't have anything to do with whether there are rats in the room.
• It certainly doesn't have anything to do with whether there are rats in the room.
• It has to do with, doesn't have anything to do with whether there are rats in the room.
• Those few seconds of faster access can be critical in an emergency and can save a life.
• Your committee on Veterans and Armed Forces will meet at 12 noon in hearing room seven.

Transcript Highlights:

• hearing, and I have the following expectations: signs and placards are not permitted in the hearing room
• If you leave the hearing room, failure to comply with these guidelines may result in removal from the
• Chair, it's always really, really sad when the soldiers in the room are late to class.
• , I can't think that's good enough to continue to move forward, but we need your help outside this room
• We have tighter language that will explicitly say that and if there are in other emerging issues will

Bills: HF3727 , HF3684 , HF3467

Committee: House Veterans and Military Affairs Division

Transcript Highlights:

• In fact, there is no one in this room today with untreated serious mental illness.
• In fact, there is no one in this room today with untreated serious mental illness.
• I've always found that if you can get Mark and I together in a room, we can usually figure it out.
• I've always found that if you can get Mark and I together in a room, we can usually figure it out.
• I was told that I needed to go have an emergency mammogram.

Committee: House House Health & Human Services Committee of Reference

Summary: The House Committee on Health and Human Services heard and advanced a series of Senate bills focused largely on mental health, public health, child welfare, and insurance coverage. SB 1113 would allow screening or evaluation agency employees to personally serve court documents on patients in involuntary mental health proceedings; supporters said this would reduce burdens on police and be less disruptive for patients. The committee adopted the Bliss amendment limiting reimbursement to services provided under county contract, and SB 1113 was given a due pass recommendation 12-0. SB 1122 would limit Access from imposing over-100% prepayment review on certain behavioral health providers serving American Indian Health Program members unless a corrective action plan is in place; Access was neutral and said it had worked with the sponsor, and the bill passed 12-0. SB 1123 would remove a board-certification requirement so trained, licensed forensic pathologists can supervise pathology trainees during autopsies; Maricopa County supported it as a workforce and efficiency measure, and it passed 12-0. SB 1125 would require DCS to make annual efforts to enter MOUs with Arizona tribes and improve coordination on tribal children in state care; DCS said it was already working on pending MOUs, and the bill passed 12-0. The committee also heard several bills tied to breast cancer screening and court-ordered treatment. SB 1165 would prohibit cost-sharing for follow-up breast cancer diagnostic and supplemental screening services in private insurance; the sponsor and advocates described it as removing financial barriers that can delay diagnosis, and it passed 12-0. SB 1243 would require guardians to be notified before discharge or release of patients under court-ordered treatment and allow guardians to seek continuation of treatment; family members and advocates testified that missed renewals can create dangerous gaps, and the bill passed 10-0 with two absent. SB 1318 would repeal a state breast-density notice requirement that now overlaps with a newer federal FDA standard; ADHS said the change would reduce confusion and duplicate notices, and it passed 11-0 with one absent. Later, SB 1188 would align Arizona controlled-substance schedules with federal FDA/DEA scheduling; the sponsor said it would speed access to new treatments, while one member opposed it over concerns about relying on federal agencies, and it passed 8-2. SB 1193 would bar DHS from selling or disclosing EMT personal identifying information for commercial purposes without consent; the sponsor said the bill was prompted by concerns about vendors buying licensee data, and members discussed whether broader privacy protections should be considered, but the bill passed 10-0. Finally, SB 1477 would require referral agencies serving assisted living facilities to verify background-screening practices, registry status, and insurance coverage; the sponsor and PASSRS said it would raise standards in senior placement services, and it passed 10-0 after a technical amendment. The committee then adjourned.

Transcript Highlights:

• episode of care she also suffered a urinary tract infection, which oftentimes patients go back to the emergency
• room in order to seek treatment and care and can be very debilitating for our elderly seniors.
• room in order to seek treatment and care and can be very debilitating for our elderly seniors.
• room in order to seek treatment and care and can be very debilitating for our elderly seniors.
• She also suffered a urinary tract infection, which oftentimes patients go back to the emergency room

Transcript Highlights:

• And it seemed to be a lot of hate in the room at that time.
• Probably none of us in this room. Dr. Haruza is a doctor.
• Trust me, I don't want any of these people in the exam room.
• It's the reason why I'm in this room talking to you today.
• It's the reason why I'm in this room talking you today.

Committee: House Emerging Issues

Transcript Highlights:

• So I guess look for that, because I see that hopefully there's room for that.
• So that really is the only wiggle room that we have in terms of the reserve payments.
• I'm happy to answer any questions and I also have my finance colleagues available in the room to answer
• Now, and we'll move on to public comment, if there's anyone in room 2100 who wants to provide public
• I strongly support the 20 million one-time investment in emergency basic needs, funded for UC campuses

Transcript Highlights:

• and nobody in the room across the street was happy with at all.
• This allows us to address the conditions that shape health before patients reach exam rooms or emergency
• It is getting everybody in this room to want to get other people's money.
• If Democrats want to give people in this room money, fine.
• Now COVID emergency funds have ended, and layoffs are back.

Summary: House Finance held a public hearing on Gross Substitute Senate Bill 6346, a proposal to impose a 9.9% tax beginning in 2028 on Washington taxable income over $1 million for individuals, with related rules for residents, nonresidents, pass-through entities, estimated payments, penalties, credits, and revenue distribution. Staff explained that the bill would also fund several tax changes, including an expanded Working Families Tax Credit, sales tax exemptions for grooming and hygiene products, higher small business B&O credits, an early end to the B&O surcharge on very large businesses, and repeal of most retail services sales tax changes from last session. The fiscal note projected about $2.53 billion in additional state revenue in FY 2029 and $3.21 billion in FY 2030, with local revenue losses and significant Department of Revenue implementation costs. The chair also announced concerns about apparent fraud and duplicate records in the public sign-in system and set testimony rules limiting questions and shortening testimony time as the hearing progressed. The prime sponsor, Senator Jamie Peterson, said the bill was intended to make Washington’s tax system less regressive and to raise revenue for schools, health care, higher education, and other public needs while reducing the burden on lower- and middle-income residents. Supporters from labor, education, health care, child care, housing, poverty-reduction, and social service organizations argued that the bill would help fund essential services, expand the Working Families Tax Credit, and improve fairness by asking the wealthiest households to contribute more. Several individual supporters, including business owners and workers, said they were willing to pay more and described the need for better-funded schools, health care, child care, and public defense. Opponents, including former Attorney General Rob McKenna, business groups, construction and real estate representatives, and taxpayer advocates, argued the measure would function as an unconstitutional income tax, would be unstable and likely expanded over time, and would harm small businesses organized as pass-through entities. They said the bill would reduce investment, discourage entrepreneurship, and could drive businesses and high earners out of Washington. Some local government representatives supported the public defense funding but asked for more dedicated revenue and protection against local revenue losses from the bill’s sales tax exemptions. No committee vote or final action was taken during the hearing.

Transcript Highlights:

• New data center load significantly increased the risk of emergencies.
• During an emergency, people turn to internet and social media, while emergency responders and agencies
• Our read is that it goes beyond just emergencies.
• backup generators or large load during that energy emergency event.
• backup generators or large load during that energy emergency event.

Summary: The committee first suspended the five-day notice rule and then heard House Bill 2521 on firearm background check fees. Staff explained that the bill would remove the $18 fee cap and allow Washington State Patrol to set fees based on actual program costs, which could be about $33 to $35 per check. Supporters said the change was needed to keep the background check system operating and avoid delays and layoffs; opponents argued it would burden lawful gun owners and amount to an unconstitutional tax or barrier to a constitutional right. No vote was taken in the hearing. Members then heard Substitute House Bill 2475 on language-accessible public programs, which would direct the Office of Equity to develop uniform language-access guidelines, address interpreter and translator shortages, and require agency implementation reporting. Testimony was strongly supportive, emphasizing the need for consistent access for limited-English-proficient residents and the benefits for schools, families, and state services. The committee also heard Second Substitute House Bill 2479 on wage recovery, which would create a wage recovery fund to provide partial advance payments to low-wage workers with meritorious unpaid wage claims and adjust wage penalty provisions. Employers, labor advocates, and legal services representatives largely supported the bill as a bipartisan, worker-protection measure funded by penalties rather than the general fund. The committee next took up Engrossed Third Substitute House Bill 1960 on renewable energy tax incentives, which would replace existing property tax and excise tax provisions with a new state and local renewable energy excise tax structure and related grant programs for local governments and tribes. Counties, utilities, developers, and tribal representatives generally supported the bill’s goal of stabilizing tax treatment for renewable projects, though several witnesses said they wanted amendments to address rates, timing, and late-stage project impacts. The committee also heard Substitute Senate Bill 5932 on alternative jet fuel incentives, which would change the timing and duration of existing tax preferences; supporters said it would provide certainty for emerging sustainable aviation fuel projects, while one refinery sought clarification and a broader county threshold. Later, the committee heard Engrossed Substitute House Bill 2238 on statewide food security, directing the Department of Agriculture to monitor food system performance and develop a statewide food security strategy. Agricultural groups, grocers, anti-hunger advocates, and farmers supported the bill as a coordination effort to improve food access, affordability, and supply chain resilience. The committee then heard Engrossed Second Substitute House Bill 1903, which would create a statewide low-income energy assistance program through the Department of Commerce; supporters said it would address growing unmet need and complement existing utility programs, while opponents said it did not address the root causes of rising energy costs. Finally, the committee heard Engrossed Second Substitute House Bill 2416 on waste-to-energy facilities under the Climate Commitment Act and Engrossed Second Substitute House Bill 2515 on large energy-use facilities (data centers), both of which drew mixed testimony centered on balancing emissions, ratepayer impacts, reliability, and environmental or tribal concerns. No final votes were taken in the hearing.

Transcript Highlights:

• We're holding our committee hearing in 1021 O Street, Room 1200.
• You're talking about sitting in a hospital emergency room.
• because they can't get in a room.
• We have firefighters and paramedics who are waiting in emergency rooms, standing by people because they
• Are you aware that people can't even get to the rooms? There's no water. There's no food.

Committee: Senate Budget and Fiscal Review

Summary: The Senate Budget and Fiscal Review Committee heard opening remarks on the Governor’s 2026-27 budget and presentations from the Department of Finance and the Legislative Analyst’s Office. Chair Laird described the proposal as roughly balanced with $23 billion in reserves, while Vice Chair Niello argued the revenue estimates were overly optimistic and warned of a structural deficit, calling for a deeper review of programs and concern over the state’s $20 billion unemployment insurance debt. Finance said the budget is balanced in the budget year but still leaves a roughly $2.9 billion deficit, with out-year gaps above $20 billion, and characterized the plan as largely a workload budget with limited new spending or cuts. The LAO said its office sees substantial downside risk to the revenue forecast, emphasized the volatility of stock-market-driven revenues, and urged the Legislature to begin addressing the structural deficit now rather than waiting until May. Members focused on the implications of federal policy changes, Medi-Cal, CalFresh, and the MCO tax, as well as the state’s reserve strategy. Senators Menjivar and Richardson raised concerns about health coverage reductions, county costs, hospital finances, and the lack of a broader revenue solution, while Finance said the state cannot fully backfill federal cuts and is still assessing the impacts. The LAO recommended rejecting the proposal to suspend the rainy day fund deposit and setting aside the proposed Proposition 98 settle-up rather than using it for spending. Finance defended both proposals as necessary to balance the budget year and said it plans to begin discussions with legislative leaders before the May Revision. The committee also discussed climate and transportation funding, including cap-and-trade/GGRF allocations for Cal Fire, interest earnings from the fund, zero-emission vehicle incentives, and AB 617 air quality investments. Senator Reyes questioned the focus on light-duty ZEV incentives instead of heavy-duty vehicles, and Finance said the proposal is intended to partially replace the federal consumer tax credit and that some heavy-duty funding remains from prior years. Senator Richardson also raised concerns about Olympics-related infrastructure, courthouse repairs, and displaced workers, while other members stressed homelessness funding and the need for more immediate action on out-year budget problems. No formal votes or actions were taken during the portion provided; the hearing was informational and moved into member questions after the presentations.