Transcript Highlights:

• In the city of Shafter, a small Central Valley community in my district, local leaders worked in good
• that look out for our small cities.
• rural cities to say, yes, you know, bring this economic driver to my city versus bringing it to somewhere
• I see it in my own city in Arinda.
• program that's incredibly important to us locally: our school bus program.

Summary: The committee heard several bills focused on public health, wildfire recovery, local government finance, transportation, and rural health care. SB 1124 by Senator Archuleta would require the California Department of Public Health to create and post lung cancer screening eligibility signage at tobacco retail locations. The author and a physician witness argued the bill would raise awareness of a highly underused screening that can save lives, while retailers and fuel/convenience groups raised implementation concerns about signage size, notice, and penalties. The bill passed to the Health Committee on a 4-0 vote after the committee later took up the on-call item. SB 1352 by Senator Valadao and Senator Allen would clarify that wildfire victims can rebuild homes up to 110% of the original size without triggering reassessment, so long as the property was destroyed in a governor-declared disaster. Supporters, including the L.A. County Assessor, the California Assessors Association, Realtors, and taxpayers groups, said the bill would reduce uncertainty and help families rebuild without higher property taxes. It passed to Appropriations on a 5-0 vote. SB 1343, presented by Senator Allen on behalf of Senator Dodd, would provide a $4,000 income tax credit for sales tax paid on furniture and appliances purchased to furnish a primary residence after a disaster; it drew one opposition witness from the California Teachers Association but otherwise had no public opposition and passed 5-0 to Appropriations. SB 1172 by Senator Hurtado would place caps and transparency requirements on consultant compensation in local tax-sharing agreements, responding to cases in Shafter and Dinuba where revenue was allegedly diverted to consultants. Local government and business groups supported the measure as a guardrail, while some members expressed concern about Sacramento limiting local control; it passed 4-0 to Appropriations. SB 1408 by Senator Arreguín would authorize the Contra Costa Transportation Authority to place a countywide sales tax measure of up to 1% on the ballot to continue transportation funding; transit agencies and local officials supported it, while taxpayer groups opposed it, and it passed 4-1. SB 1404 by Senator Stern would restore a fee on property owners in state responsibility areas to fund Cal Fire wildfire prevention and suppression, with supporters arguing the fee would broaden funding and opponents calling it an unfair tax on rural and wildfire-prone residents; it passed 4-1 to Appropriations. Finally, SB 1102 by Senator Dodd would create a $2,000 tax credit for frontline nurses working in rural hospitals; supporters said it would help recruit and retain nurses in underserved areas, and the bill passed 5-0 as amended to Appropriations.

Transcript Highlights:

• But the key to this program is that we need a program that is efficient.
• I know how city works.
• I know how city works.
• , you're always in one city.
• That's not the job of the city.

Summary: The House Commerce Committee heard House Bill 2181, which would extend the deadline for funeral establishments or responsible individuals to complete and submit death certificates. The committee adopted an amendment reducing the maximum extension to 14 days and clarifying that the medical certification deadline for health care providers excludes weekends and holidays. Testimony from a mortuary owner and the sponsor described delays caused by doctors’ schedules, county processing, holidays, and families needing more time; some members argued the bill did not address the underlying accountability problems for doctors and counties, while others supported the added flexibility. HB 2181 was approved 6-4-1 with a due pass recommendation. The committee then heard House Bill 2682, which creates a DES rental assistance program providing up to two months or $5,000 in aid and appropriates $5 million from the general fund for administration. Supporters said the bill would help families facing short-term crises stay housed, reduce evictions, and serve as a preventive measure that could save money downstream; a constituent testified in Spanish about receiving emergency rental help after falling behind. Some members raised concerns about the program’s cost, the limited target population, and whether seniors should be included, while others supported it as a pilot and asked for possible amendments. HB 2682 passed 7-4. House Bill 2698, which creates a rental assistance study committee to evaluate the effectiveness of such programs and repeals the committee in 2028, was heard next and passed on a 7-4 vote. The committee then considered House Bill 2476, revising CPA certification and reciprocity requirements by creating multiple pathways to licensure and updating related rules and fees. Supporters said the bill would help address a CPA workforce shortage and align Arizona with other states; after questions about whether the bill made licensure harder or easier, the committee unanimously approved HB 2476, 11-0. Finally, the committee began House Bill 2308, which would bar dental insurers and certain holding companies from owning dental practices. The sponsor and Arizona Dental Association argued the bill would prevent conflicts of interest and preserve separation between payers and providers, while Delta Dental opposed the measure as overbroad and potentially burdensome for nonprofit insurers and investors. After discussion about private equity, nonprofit charity care, and vertical integration, the bill was approved 8-0 with three members present. The committee then started House Bill 2118 on mobile food vendors, with the sponsor and food truck operators arguing it would streamline duplicate local permitting, while cities and some vendors opposed it as a loss of local oversight and control; testimony continued, but no final action on HB 2118 appears in the excerpt.

Transcript Highlights:

• We'll be receiving program updates and conducting oversight regarding the programs at the Governor's
• than alternative programs.
• than alternative programs.
• Specifically, these programs work on a program year.
• For those types of programs.

Summary: The subcommittee first heard an informational overview from the Governor’s Office of Service and Community Engagement (GoServe), including California Volunteers, the Office of Community Partnerships and Strategic Communications, and the Youth Empowerment Commission. GoServe reported strong participation in programs such as California Service Corps, College Corps, Youth Service Corps, Climate Action Corps, and the new men’s service challenge. Testimony emphasized enrollment, retention, and completion outcomes, outreach results, and efforts to reduce administrative costs. The Department of Finance said the administration supports the programs but has already made reductions to help address the budget deficit, while the LAO said it had no new recommendations on the informational item. Committee members raised questions about program scale, demographics, and effectiveness, especially for Climate Action Corps and whether the programs are duplicative of existing volunteer opportunities. One member criticized the programs as too fragmented and costly, while others asked for more data on who is being served and whether the programs increase actual participation in state services. GoServe said it would follow up with demographic and regional impact information. The committee also discussed the men’s service challenge, which GoServe said has formed partnerships with organizations such as YMCAs and Big Brothers Big Sisters and has already attracted more than 2,000 participants. The item was informational only. The committee then heard a BOE overview and a budget request to implement SB 293, which gives wildfire-affected families additional time to claim intergenerational Prop. 13 property tax transfers. BOE requested $154,000 for guidance, public materials, and inquiry response, explaining that the work is urgent and tied to disaster relief in Los Angeles County, especially Altadena. The LAO had no concerns, and Finance had no comment. Members asked how many cases might be affected and whether more funding would be needed later; BOE said the full number is not yet known and that future requests are possible. The committee also heard BOE’s IT modernization proposal for the state-assessed property tax system, a 30-year-old mainframe replacement costing $3.2 million in 2026-27 and $3.1 million in 2027-28. BOE and Finance supported the project as necessary, while the LAO said it had no concerns but urged a high bar for new IT spending. Members generally supported modernization but cautioned about implementation risk. Finally, CDTFA presented an overview and two policy proposals. The department described administering 42 tax and fee programs, collecting $98 billion in FY 2024, and improving administrative efficiency. Members then discussed local sales tax tools and revenue-sharing agreements, with concerns raised about transparency, consultant-driven tax allocation disputes, and the impact on local communities. CDTFA and the LAO explained that local jurisdictions control how district sales tax revenues are spent and noted the Legislature could revisit the statutory cap on local add-on sales taxes. The committee then heard CDTFA’s proposal to treat all delivery network companies as marketplace facilitators so they must collect and remit sales tax on delivery-app orders. CDTFA said the change would resolve confusion, shift compliance from thousands of small restaurants to a few large platforms, and raise about $44 million annually. Several members questioned whether the proposal would effectively raise consumer costs and whether it would create a competitive advantage or disadvantage among delivery platforms. The item remained under discussion, with no vote taken in the transcript.

Transcript Highlights:

• We'll be receiving program updates and conducting oversight regarding the programs at the Governor's
• The program tracks outcomes, including enrollment, retention, and completion, and the program has reached
• CDTFA administers 42 tax and fee programs, the largest being the sales and use tax program.
• For those types of programs.
• And so it's possible that that program or something similar to that... ...program could be a type of

Keywords: 987, senate, all

Transcript Highlights:

• However, due to the system's small size, the city cannot afford to finance these upgrades without at
• My name is James Enriquez, and I am the public works director and city engineer of the city of Santa
• That will go to the city, and then the city submits it to a supplier who does a supply assessment.
• This bill would prohibit cities...
• , county, or city and county, The provision that talks about that the city, county, or city and county

Keywords: 988, house, all

Transcript Highlights:

• We did a lot of work in the state to sort of think about small business and to ensure that the programs
• Again, we're a small group in this.
• groups for small amounts of time.
• Loan situation there is a small. Amounts of time.
• We've learned a lot about how small things can turn into. about how small things can turn into huge fiscal

Keywords: 987, senate, all

Transcript Highlights:

• , a move a program from Kansas City to the city of St.
• The city of St. Joseph purchased 1,776 acres of farmland in 1942. The city of St.
• And even though the airport is owned by the city, it has never been in the city limits.
• be in the city limits.
• There is one small problem: this land is not contiguous to the city limits.

Keywords: 959, house, all

Transcript Highlights:

• The work program. The one program? This program? No, no.
• Yeah, no, it sounds like a great program. My question was more to who it meant. Is it the city?
• The city. The city. So it's operated.
• So it is a well-known documented program in the city of St. Louis.
• So it is a well-known documented program in the city of St. Louis.

Summary: The House Budget Committee met with a quorum and began by taking up a series of budget bills and committee substitutes, including House Bills 2002, 2003, 2004, 2008, 2009, 2010, 2011, 2012, and 2013, which were laid over. The chair then walked members through a committee amendment package, explaining a mix of technical corrections, fund swaps, and adjustments involving highway patrol fringe costs, summary budget timing, rural health care, the CCBHO FMAP correction, and marijuana-fund reallocations. Members adopted the chair’s decrease amendments and later adopted the corresponding increase amendments, including partial restoration for Care to Learn, a Title I grant language change, an Overpass and Seymour road project, technical corrections for DPS and health-related items, and restorations for Jordan Valley and FQHC substance abuse funding. After a brief recess for session and lunch, the committee returned to House Bill 2 and began considering member amendments. On House Bill 2, the committee adopted Representative Lewis’s amendment making the curriculum transparency and parent portal item a pilot program, and Representative Davidson’s amendment adding $2 million in federal Child Care and Development Block Grant funds for One-Time Wonder School. Representative Steinhoff’s attempt to shift funding from Missouri Star Solutions and WorkKeys to the Success Ready Student Assessment failed, as did Representative Taylor’s proposal to move $1.2 million from career ladder to community college nursing programs. The committee then rejected Representative Steinhoff’s attempt to redirect Title I Innovation and Improvement Grant funds back to the governor’s recommendation, and later adopted Representative Steinhoff’s vocational rehabilitation amendment, which restored the department’s request and drew down additional federal matching funds. The committee also adopted Representative Hyne’s language amendment to allow flexibility between the MOQPK pre-K grant program and the Child Care Works tri-share program, though members discussed concerns about cross-bill flexibility and whether funds would actually be available. Representative Fogle’s amendment to require budget communications sent to committee chairs to also go to the full Budget Committee was defeated after members expressed concern about information overload and the difference between required distribution and requested information. The committee then took up a lengthy debate over Representative Fogle’s amendment to remove language barring Parents as Teachers participation for children already enrolled in public pre-K. Supporters argued the programs serve different purposes and that families should not be forced to choose between them, while opponents said the language was intended to prevent duplication of services and preserve resources for children without other options. After extensive discussion, the amendment failed. The committee continued with additional House Bill 2 amendments, but the transcript ends before final action on the remaining items.

Transcript Highlights:

• And so allowing the flexibility to, again, pause the program instead of completely stop the program would
• I believe the program could be useful itself.
• Statewide, major cities like Kansas City and St. Louis have the highest theft rates.
• Kansas City was number six, St. Joseph was 32, and St. Louis rates. Kansas City was number six. St.
• The program will initiate grant programs overseen by a motor vehicle theft prevention commission to aid

Keywords: 959, house, all

Transcript Highlights:

• the City of Coronado for hosting us today.
• The City of Oceanside had a major sewer spill.
• So small developers with small impacts are looking for a place to go.
• We're like a lot of outdoor equity programs that are kind of We're like a lot of outdoor equity programs
• That’s about a two-year-old program. There’s already a certificate program created for aquaculture.

Summary: The hearing of the Select Committee on Sea Level Rise and the California Economy focused on infrastructure, pollution, climate resilience, public health, access, and economic impacts of sea level rise in California, with an emphasis on San Diego and the Bay Area. Chair Tasha Boerner Horvath opened by describing the committee’s purpose, the state’s sea level rise action planning, and the need for better monitoring and early warning systems. She also referenced her prior bills AB 66 and AB 72, which supported Scripps research on coastal bluff collapse warning capabilities. Assembly Members David Alvarez and Jessica Caloza later joined and emphasized that sea level rise affects not only coastal communities but inland areas as well, and that the issue should inform future legislative and budget decisions. In the first panel, Dr. Mark Merrifield of Scripps Institution of Oceanography described observed sea level rise of roughly 0.8 to 0.9 feet since the early 1900s, with acceleration expected by mid-century and potentially much greater rise by 2100 depending on emissions. He highlighted flooding, groundwater rise, beach and cliff erosion, salinization, and risks to transportation, sewage, ports, and national security. Dave Gibson of the San Diego Regional Water Quality Control Board discussed how sea level rise affects wastewater systems, stormwater, contaminated sites, wetlands, and coastal groundwater basins, and said the board is requiring climate adaptation planning, updating stormwater permits, and seeking more flexible state permitting and mitigation tools. Members and witnesses also discussed the need for better mapping, more monitoring, and more state funding, especially if federal support from NOAA and other agencies declines. The second panel addressed public health, equitable access, and local economies. Ramon Chiras of Un Mar de Colores described how sea level rise, pollution, and access barriers threaten the Tijuana River Valley and Imperial Beach, especially for underserved communities and youth programs that rely on safe, welcoming access to the ocean. He stressed the cultural and spiritual importance of coastal access and the need for water safety and environmental education. Jessica Fane of the San Francisco Bay Conservation and Development Commission explained that the Bay Area faces major economic exposure from sea level rise, citing a regional estimate of $96 billion in adaptation costs versus $230 billion in potential losses from inaction, and said BCDC is working with local governments under SB 272 on shoreline adaptation planning, funding, and regulatory innovation. Members discussed the tension between environmental permitting and the need to move projects faster, including the possibility of planned retreat in some areas and the use of simultaneous permitting and longer-term state authority to streamline adaptation work. In the final panel, Philip Gibbons of the Port of San Diego described the port’s climate adaptation efforts and its vulnerability assessments under AB 691. He said the port manages state tidelands, supports maritime commerce and recreation, and is already seeing flooding at king tides and during El Niño events, including storm-drain backflow and damage to bikeways and parks. He explained that future sea level rise could inundate major port areas and disrupt operations, underscoring the need for continued planning, mitigation, and infrastructure investment. The hearing did not take formal votes, but it concluded with a clear call for more science, funding, coordination, and regulatory streamlining to prepare California’s coast and nearby communities for worsening sea level rise impacts.

Transcript Highlights:

• We have the kind of... ...cities almost within the city of San Jose.
• Go down to, and I'm going to use one of the cities I worked in, the City of Inglewood.
• We had one of the bigger cities at 160,000 people, one of the bigger cities in California.
• cities.
• I mean, I'm just talking about the small cities. I'm not talking about the counties.

Keywords: 987, senate, all

Transcript Highlights:

• It's happening in New York City.
• And their top combined income tax rate in New York City, It's happening in New York City.
• There are many great programs, and no one's here to criticize the programs.
• Is it going to put too much pressure on programs?
• Amesbury is not a gateway city.

Keywords: 995, all

Summary: The Special Joint Committee on Initiative Petitions held a public hearing on two proposed ballot initiatives: one to reduce the state personal income tax rate from 5% to 4% over three years, and another to revise the state’s tax collection cap/62F process so it would be based on prior-year collections plus wage growth and include surtax revenue. The committee chair and House co-chair outlined the hearing process, and the first witness was Doug Howgate of the Massachusetts Taxpayer Foundation, who testified as the committee’s subject-matter expert on both measures. He said the income tax proposal would lower taxes broadly but would reduce state revenue by about $5.4 billion when fully implemented, with an estimated $800 million hit in FY27, and he discussed possible effects on competitiveness, taxpayer savings, and public finances. On the 62F proposal, he said the revised cap would make refunds more likely, could have produced several large refunds in recent years, and would reduce stabilization fund deposits and constrain recovery after recessions. Committee members questioned Howgate about competitiveness, outmigration, prior tax ballot measures, spending growth, MassHealth, and the interaction between the income tax and surtax. He emphasized that taxes are only one part of the state’s overall competitiveness and that housing, public services, and other factors also matter. He also noted that the surtax is constitutionally restricted but can still support ongoing spending choices. After his testimony, the committee moved to the proponents’ panel. Proponents of both initiatives, including representatives from Taxpayers for an Affordable Massachusetts, the National Federation of Independent Business, Pioneer Institute, and the Mass Opportunity Alliance, argued that the measures would improve affordability, help retain residents and businesses, and support job growth. They cited polling support, outmigration, small-business reinvestment, and comparisons to lower-tax states such as North Carolina. Their economist, Rebecca Paxton, said her model showed smaller revenue losses than critics claim and projected that the revised revenue cap would not create additional annual revenue losses while producing more regular taxpayer refunds. Committee members pressed the panel on competitiveness, prior ballot initiative implementation, and whether the measures would actually address broader affordability pressures; the hearing ended with the committee continuing to take questions from the proponents.

Transcript Highlights:

• They're so small it's really hard to measure them in a person's body.
• We are the solid waste manager for the city of Seattle.
• Tidy at Tacoma program.
• So this is just grocery, the small grocery sack.
• So you mentioned small forest landowners.

Bills: SB5965, SB6030, SB5975, SB5941

Keywords: environment, retail bags, sustainability, pollution, customer impact, plastic bags, retail, waste reduction, cookware safety, lead regulation, consumer protection, interstate trade, health standards, SB 5941, Washington State Energy Code, State Building Code Council, renewable energy, solar panels, school district exemption, public school construction

Transcript Highlights:

• help inform program development and implementation and advise on the program evaluation.
• Do you work with cities as well? You mentioned working with different programs that support folks.
• a lot of cities here do.
• Do you work with cities as well? You mentioned working with different programs that support folks.
• So most of our small utilities... well, our utilities have assistance programs that they've established

Summary: The committee first waived the five-day notice rule for several House bills, then took up public hearings on HB 2426, HB 1742, HB 2215, HB 2575, HB 1903, and HB 2606. HB 2426 would allow the Pollution Control Hearings Board, with party consent and board approval, to hear permit appeals in alternative smaller compositions to improve efficiency; the sponsor and supporters from Greater Grays Harbor and FutureWise said it would speed up reviews without harming environmental protections, while the bill was described as cost-neutral. HB 1742 would create a Center for Environmentally Sustainable Urban Design at Ecology to promote sustainable building and design competitions; the sponsor emphasized regenerative, biophilic design and a proposed showcase project, and the bill was presented as budget-neutral through outside funding, though the fiscal note was still pending. HB 2215 would tighten Climate Commitment Act compliance for certain newer fuel suppliers by lowering the emissions threshold for post-2023 suppliers, exempt lubricants, and add procurement and transparency requirements. The sponsor said the bill targets “paper distributors” and loopholes used to avoid coverage; Ecology supported closing the loophole but raised concerns about reporting thresholds, implementation, staffing, and rulemaking. Testimony was mixed: the propane association and Washington Oil Marketers Association were concerned about the two-tier threshold and urged stronger upstream enforcement instead, while Climate Solutions and Washington Conservation Action supported the bill as a way to prevent gaming and strengthen climate policy. HB 2575 would reduce several environmental and energy reporting obligations, including less frequent utility reporting under the Energy Independence Act and state energy strategy updates; Commerce and the sponsor said the changes would reduce duplicative reporting and save money, while preserving core protections and oversight. HB 1903 would establish a statewide low-income energy assistance program in the Department of Commerce, phased in by 2027, to supplement existing utility programs and target households with the greatest energy burden. The sponsor and many advocates described the bill as an affordability measure to address a large unmet need, while community action agencies, utilities, and rural representatives supported the goal but asked for clearer language on voluntary utility participation, funding sources, allocation formulas, and how the program would interact with existing utility and weatherization efforts. Several speakers stressed that the program should not replace local assistance and should be designed to avoid shifting costs onto ratepayers. HB 2606 would update the Office of Privacy and Data Protection’s duties and reporting requirements, including adding review of agency AI projects and aligning the office’s work with JLARC recommendations; the chief privacy officer testified in support, explaining that the bill would formalize AI risk review, human oversight, and existing privacy/security review processes, with no fiscal impact. No votes were taken on the bills during the hearing.

Transcript Highlights:

• The city of Minneapolis appreciates the inclusion of funding for cities of the first class for traffic
• The city of Minneapolis appreciates the inclusion of funding for cities of the first class for traffic
• The city of Minneapolis appreciates the inclusion of funding for cities of the first class for traffic
• </c><00:13:56.000><c> of</c> the inclusion of funding for cities of the inclusion of funding for cities
• </c> to the Twin Cities. to the Twin Cities. um<01:08:55.440><c> it</c><01:08:56.080><c> compared</c>

Keywords: 1187, senate, all

Transcript Highlights:

• Angeles, in the city of Almonte.
• When I came back, there's actually a small, very small factory in Palmdale, literally three miles away
• I mean, the state does currently have a pro-housing certification program for cities in California, those
• There was historically also a housing-related parks program in California, which gave cities that could
• It looks the same when it's falling from the sky, but city after city, jurisdiction after jurisdiction

Keywords: 988, house, all

Transcript Highlights:

• One small example is our radex radiology tech technicians in our programs today.
• One small example is our radex radiology tech technicians in our programs today.
• One small example is our radex radiology tech technicians in our programs today.
• One small example is our radex radiology tech technicians in our programs today.
• One small example is our radex radiology tech technicians in our programs today.

Keywords: 1183, house

Transcript Highlights:

• He served as a trustee ways and small.
• </c> Chicago city leadership accountable. Chicago city leadership accountable.
• Let's help small businesses for it.
• city in the state of Texas.
• </c> uh weapons program. uh weapons program.

Keywords: U.S. House of Representatives Floor Proceedings on Wednesday, July 23, 2025, 1012, house, all

Transcript Highlights:

• But this bill is necessary, because cities in multiple states, including 31 cities in Texas, have yet
• It's not on cities or anyone else.
• But what does a small city do that has no code enforcement officer?
• are using to run the city.
• County. and city fees.

Bills: SB264, SB542, SB924, SB1008, SB1029, SB1036, SB1057, SB1058, SB1185, SB1202, SB1358, SB1364, SB1376, SB1569, SB1664, SB1697, SJR50

Keywords: SB 264, Texas Workers' Compensation Act, group self-insurance, self-insured groups, workers' compensation, Texas Department of Insurance, commissioner of insurance, certificate of approval, guaranty fund, trust fund, wind down, dissolution, labor code, insurance regulation, employer coverage, risk pool, business and commerce, trade workforce economic development, property owners' association, water conservation

Transcript Highlights:

• for us to even start up a program.
• program and may be relying on that, opposed to implementing this new program.
• to small school.
• to small school.
• Increase to small school.

Summary: The subcommittee opened with remarks on the state budget and K-12 education, noting the large increase in the Proposition 98 minimum guarantee, the use of deferrals and reserves in the prior budget, and the challenge of balancing education funding against other state priorities. Superintendent Tony Thurmond described California education as improving overall, citing gains in test scores, graduation, and college readiness, but said major gaps remain for low-income students, students of color, agricultural communities, English learners, foster youth, and students with disabilities. He praised recent investments in universal meals, transitional kindergarten, community schools, arts, broadband, and special education, while warning that declining enrollment, chronic absenteeism, and the proposed $5.6 billion Prop. 98 settle-up create uncertainty for districts. He also urged a long-term literacy plan, expanded tutoring, universal kindergarten, and continued protections for students and families affected by immigration enforcement, including ICE-related fear and attendance loss. The committee then heard a detailed presentation on Proposition 98 from the Department of Finance and the Legislative Analyst’s Office. Finance explained that the Governor’s budget projects the minimum guarantee will rise by about $21.7 billion over three years, with a $5.6 billion settle-up obligation in 2025-26 intended to avoid overappropriation if revenues weaken. Finance also described revised reserve deposits and withdrawals, ending with about $4.1 billion in the Public School System Stabilization Account by 2026-27. The LAO said recent revenue collections were stronger than expected in the current year but warned that the outlook for 2026-27 is weaker and that stock-market-driven revenues remain volatile. The LAO supported maintaining reserves and one-time spending buffers, but recommended fully funding the guarantee and using other budget solutions rather than shifting the settle-up into future deficits. Members asked about the settle-up process, certification timeline, the effect of attendance declines tied to immigration enforcement, and wildfire-related impacts, including Pasadena Unified’s $4 million special appropriation. On LCFF and necessary small schools, Finance proposed a 2.41% COLA and about $2.2 billion in additional LCFF funding for districts and charters in 2026-27, plus a $30.7 million ongoing increase to raise the necessary small schools allowance by 20%. The LAO supported funding the COLA but said the small-school increase was not tied to a specific cost study and could be redesigned to better target small districts, noting that only a fraction of very small districts would benefit. Questions focused on how small schools access supplemental and concentration grants and how attendance recovery programs are being implemented. The Department of Education said only 130 LEAs had reported attendance recovery so far, likely because it is a new program with compliance requirements, though interest appears to be growing. FICMAT then reviewed the fiscal health of local districts, reporting an uptick in qualified and negative certifications, though still far below Great Recession levels. It said declining enrollment, rising special education costs, and higher labor and insurance costs are the biggest fiscal pressures, and that some districts are using fiscal stabilization plans and staff reductions ahead of second interim reports. FICMAT also discussed wildfire impacts on Pasadena Unified and Los Angeles Unified, explaining that Pasadena’s $4 million state appropriation was based on an early post-fire assessment and that the district is being monitored with the county office of education. Members raised concerns about Pasadena’s leadership, special education staffing shortages, AB 218 sexual abuse litigation costs, insurance premium increases, and the need for stronger prevention and training measures. FICMAT said SB 848 and related policies address some of those concerns by strengthening standards, training, and reporting requirements.