Transcript Highlights:

• The bill also makes changes to local government firefighter employment provisions for purposes of permanent
• We don't have to reorganize, take out consumer affairs, or wait another year for this to be happening
• Item number one I think is most pertinent to the governor's reorganization of the Business, Consumer
• We're the largest direct level of care providers of inmates, patients, and individuals with developmental
• With the state's limited resources this year, we think that money could be better directed to domestic

Committee: House Budget

Transcript Highlights:

• assigned to the data center has increased by a minimum of 35 family wage employment positions, or, if
• lower, three family wage employment positions for each 20,000 square feet of space or less that is newly
• If a qualifying business or tenant fails to meet the net employment and sustainability certification
• The family wage employment positions are defined.
• I'm not direct... The project itself. I'm not directly... I'll find out who does, who can.

Summary: The committee heard several public hearings on tax and housing-related bills. HB 2451 on local tax increment financing was briefed as a negotiated trailer bill adding new limits and consultation requirements for increment areas, including restrictions on using areas that already have needed public improvements, earlier sunset rules, more detailed project analysis, and stronger notice, mediation, and arbitration procedures for affected taxing districts. Supporters from cities, ports, and fire districts said the bill rebalances the process and protects impacted jurisdictions; the hearing then closed. HB 2322 would change the alternative jet fuel tax incentive program by replacing the current production-capacity trigger with a fixed effective period beginning in 2031 and ending in 2046, while clarifying carbon-intensity requirements. The sponsor said the change adds certainty and supports cleaner aviation fuel. A refinery representative supported the program but asked for clarification to include Pierce County or define “blender,” while a climate-health opponent argued the bill subsidizes continued fossil-fuel combustion and should be rejected. HB 2590 would revise the limited equity cooperative definition and exempt such cooperatives from WUCIOA unless they opt in, while preserving the property-tax exemption requirements; supporters said it would reduce red tape and better fit cooperative housing, while members raised concerns about unintended restrictive membership rules and asked for fair-housing guardrails. HB 2655 would create a new sales and use tax exemption for construction and equipment at certain new data centers in eastern Washington, subject to labor, wage, apprenticeship, employment, and sustainability requirements. Supporters framed it as a jobs and clean-energy opportunity tied to hydrogen development and regional competitiveness, while opponents said it was a subsidy for large corporations and could strain water, power, and public revenues. The committee then moved to executive action and advanced HB 1983, the second substitute for HB 1974, the substitute for HB 2334, HB 2367, and the substitute for HB 2650, all with due pass recommendations. Amendments were adopted on HB 1974 and rejected on HB 2367; the other bills were advanced without amendment. Votes were recorded on each measure, with HB 1974 passing 10-4, HB 2334 passing 13-1, HB 2367 passing 11-3, and HB 2650 passing 14-0.

Transcript Highlights:

• And just to clarify, continuing on that, that would be, again, though, just for those employers that
• Employers, you know, only have a person or two.
• One other thing, and I just, what happens if an employer with 10 to 250 employees doesn't send one in
• It's not limited to consumer? No, the lower of CPI or Hancock.
• I'm not one going that direction, but I'm surprised you didn't know that by now, Rep. Matthiesen.

Committee: House Ways and Means

Transcript Highlights:

• The direct quote was, 'socializing the risk of damage from natural catastrophes.'
• John Fisk, who is an attorney and part of the Consumer Attorneys of California. Dr.
• John Fisk, who is an attorney and part of the Consumer Attorneys of California. Dr.
• John Fisk, who is an attorney and part of the Consumer Attorneys of California. Dr.
• Next up, we are hearing from John Fisk with the Consumer Attorneys of California. Welcome.

Summary: The Assembly Committee on Utilities and Energy held a hearing on the California Earthquake Authority’s SB 254 report and broader options for reforming California’s utility wildfire recovery system. The chair framed the discussion around the Palisades and Eaton fires, the scale of wildfire-related costs on utility bills, and the need to weigh trade-offs among survivors, ratepayers, utilities, insurers, and taxpayers. The first panel featured wildfire survivors William Abrams and Joy Chen, who described long delays in compensation, housing insecurity, and what they viewed as a system that protects utility shareholders more than victims. They urged greater transparency, clearer accountability for utility spending and safety performance, faster and fuller compensation for survivors, and reforms such as independent audits and better alignment of utility incentives with wildfire prevention and restitution. The second panel began with Tom Welsh of the California Earthquake Authority, who explained that the SB 254 report was intended as a broad inventory of policy pathways rather than recommendations. He described the report’s process, including stakeholder submissions, workstreams, and a convergence process, and outlined the current wildfire fund structure: utilities remain liable, the fund reimburses eligible claims after a covered wildfire, and the CPUC later determines prudency and possible reimbursement back to the fund. RAND’s Lloyd Dixon summarized compensation data, saying utilities paid about $38 billion between 2017 and 2024, with major shares going to injured parties, insurers, and public entities, while litigation costs and survivors’ own losses remain substantial. He noted that legal fees and delays reduce the amount survivors ultimately receive. Utility and public-interest witnesses offered differing views on the report’s pathways. PG&E’s Tyson Smith said the report shows inaction is the worst outcome and argued for community wildfire risk reduction, equitable allocation of catastrophe costs, and state-led resilience tools. LADWP’s Fernando Valero emphasized the vulnerability of municipal utilities and cities, and supported inverse condemnation reform, a state-sponsored liability insurance framework, damages and subrogation limits, and stronger insurance access. Consumer Attorneys of California’s John Fisk argued that IOU-caused fires are not natural disasters but the result of negligence and sometimes criminal conduct, and opposed reducing utility liability while supporting stronger oversight and audits. The Public Advocates Office’s Nathaniel Skinner focused on affordability, saying ratepayers already bear large and growing wildfire costs and warning against shifting more costs onto bills without measurable risk reduction and tighter accountability. Committee members then began questioning witnesses about what counts as measurable mitigation, how to define full and fair compensation, and how any fast-pay process should work.

Transcript Highlights:

• In the meantime, we'll have the Office of Consumer Advocate come on up.
• I'm Donald C., the Consumer Advocate.
• However, complaints... consumer protection act um in section consumer protection act um in section four
• helping to helping consumers to realize helping to helping consumers to realize more<00:30:13.080><c>
• </c> fine-tuning regarding the Consumer fine-tuning regarding the Consumer complaint complaint complaint

Committee: Senate Energy and Natural Resources

Transcript Highlights:

• And who is your question directed to? Whoever wants to answer it.
• ... ...or through employer-sponsored coverage with premiums.
• We see has chilled in terms of access to employment.
• We think that's a hopeful start in the right direction.
• I think that's a hopeful start in the right direction.

Summary: The Senate Budget and Fiscal Review Committee heard AB 109, the Budget Act of 2026, as the main item. Committee leaders described the legislative budget agreement as a balanced two-year plan with about $355.9 billion in total spending, $253 billion from the General Fund, and $36.5 billion in reserves. The Legislative Analyst and Department of Finance said the package assumes about $5.5 billion in higher revenues than the May Revision and uses those resources for a mix of spending changes, including higher Proposition 98 support, additional child care slots, housing and homelessness funding, delayed Medi-Cal reductions, and added support for counties, public hospitals, and distressed hospitals. The administration said the plan resembles the May Revision’s overall structure but includes new spending and revenue assumptions, and members noted that separate revenue trailer bills would be heard later in the week. Much of the committee discussion focused on Medi-Cal, H.R. 1, and the impact on immigrants, low-income workers, counties, and hospitals. Several senators criticized the budget for locking in savings from delayed or reduced Medi-Cal coverage and for not including a mechanism to restore eligibility, while administration and LAO staff said the package delays some reductions but does not automatically reinstate coverage. Finance staff said roughly 1.5 million to 2 million people with unsatisfactory immigration status would move from managed care to fee-for-service, with coverage largely unchanged except for certain services not federally allowed. Members also discussed county administrative funding, indigent care, public hospital support, and the expected rise in uncompensated care. Other topics included In-Home Supportive Services, child care, homelessness funding, Prop. 36, courthouse construction and new judgeships, transit and cap-and-invest/GGRF funding, local journalism, and workforce or reentry programs. Committee members split along party lines in their comments. Democratic members generally supported the agreement as a difficult but responsible compromise that protects core services, preserves reserves, and makes targeted investments in education, housing, health care, and justice system capacity. Republican members argued the budget relies on unrealistic revenue assumptions, does not sufficiently reduce spending, and includes costly policy choices and tax increases. Public testimony largely came from advocates and stakeholders who supported IHSS, Medi-Cal, child care, domestic violence services, hospitals, transit, and other programs, while some business and health plan representatives raised concerns about tax proposals and the shift from managed care to fee-for-service. The chair then moved the committee to public comment and indicated that the revenue bills would return later in the week; no final vote on AB 109 is reflected in the portion provided.

Transcript Highlights:

• And who is your question directed to? Whoever wants to answer it. I'll take a shot at it.
• Very difficult to prove for essential workers who cannot certify their employment.
• ... ...coverage on the marketplace or through employer-sponsored coverage with premiums.
• We think that's a hopeful start in the right direction.
• I think that's a hopeful start in the right direction.

Committee: Senate Budget and Fiscal Review

Transcript Highlights:

• By way of background, the 2022 legislature directed JLARC to review DOH programs related to the types
• By way of background, the 2022 legislature directed JLARC to review DOH programs related to the types
• But correct, I mean, again, we don't have a current directive, again, to not do inspection unless we
• Directive, again, to not do inspection unless we get a certain amount of complaints.
• Those are a direct response to the financial and operational headwinds that we're facing.

Summary: The committee heard a JLARC presentation on the Department of Health’s oversight of hospital inspections, complaints, and reporting. JLARC said DOH was late on 72% of acute care hospital inspections as of December 2024, had not verified that third-party accrediting standards were substantially equivalent to state standards, did not consistently require proof of those inspections, did not review adverse health event corrective plans, and could make hospital data more accessible. JLARC also raised a possible language-access barrier in the complaint system. Members asked about complaint filing by staff, the meaning of adverse health events, inspection outcomes, and whether the audit compared DOH to other agencies. JLARC said it had not reviewed inspection results or cross-agency comparisons, but noted inspectors were dedicated and working long hours. DOH later said it concurred with the recommendations and outlined a strategic plan with target dates for improving timeliness, verifying accreditation standards, expanding language access, reviewing adverse event laws, and improving public data access, with annual reporting to the Legislature expected. The committee then heard a Department of Health presentation on certificate of need modernization. DOH described the current certificate of need process, which reviews need, financial feasibility, quality, and cost containment for certain facility changes and new services, and said the program has not been modernized since the 1980s. DOH proposed 10 statutory modernization recommendations, including clarifying the program’s purpose, creating a planning entity, adding flexibility, reducing legal costs, updating access-to-care standards, expanding oversight to freestanding emergency departments and urgent care, addressing equity, improving cost control coordination, strengthening long-term funding, and using better data systems. Members asked about oversight of freestanding urgent care and EDs, funding sources, and whether the process could be streamlined or made more responsive to complaints or other triggers. A third panel discussed artificial intelligence in health care. Lucy O’Rourke of the Coalition for Health AI described CHAI’s work on responsible AI principles, technical standards, model cards or “nutrition labels,” testing and governance tools, and educational resources for providers. She said the group is focused on trust, transparency, fairness, safety, security, and privacy, and noted Washington’s AI-related policy work as among the more progressive in the country. No questions were asked. The final portion focused on the financial impact of federal and state health care policy changes. The Washington State Hospital Association said hospitals are facing low or negative operating margins, service reductions, layoffs, and closures, and that state cuts and taxes enacted in 2025, combined with federal HR1 changes, will significantly worsen finances. Providence Swedish leaders described staffing reductions, service cuts, delayed capital investments, and pressure from denials, tariffs, and reimbursement changes, while emphasizing that frontline staffing cuts are tied to service reductions rather than nurse-to-patient ratio changes. The Washington Health Benefit Exchange then began a presentation on expiring federal ACA premium tax credits, state Cascade Care Savings assistance, and eligibility changes affecting lawfully present non-citizens, with examples showing large premium increases for customers if federal subsidies expire.

Transcript Highlights:

• AB 458 aims to resolve that by directing the Department of General Services, in consultation with the
• Strikingly, in most cases, the direct supervisor has no objection to the employees working remotely.
• Highlighting the resiliency of California's first people is a step in the right direction.
• They help gather consumer feedback on characteristics like taste, aroma, and overall product quality.
• So 100 percent, we have a long way to go, and this bill is just one step in the right direction.

Summary: The committee heard several bills, with testimony largely in support and some opposition on a few measures. AB 458 would direct the Department of General Services, in consultation with the Department of Justice, to develop model procurement guidelines for state purchases of firearms, ammunition, and accessories so agencies avoid vendors that violate gun laws; law enforcement and San Francisco representatives supported it, and members discussed adding oversight and vetting. AB 1729 would update state telework policy by requiring written telework plans for return-to-office decisions and restoring public reporting on telework savings; supporters cited cost savings, productivity, climate benefits, and worker flexibility, while the author clarified it would not alter collective bargaining under the Dills Act. AB 1754 would require post-completion reporting on bond-funded programs’ goals and outcomes; supporters framed it as a transparency and accountability measure, while counties and water agencies opposed it unless amended, warning of added bureaucracy, delays, and litigation risk. AB 1841 would create a paid state holiday recognizing California Native American Day, and AB 2115 would issue a formal legislative apology to California’s first peoples and install a commemorative plaque at the Capitol; both drew strong tribal and labor support and broad committee praise, with members emphasizing education, historical acknowledgment, and healing. AB 2211 would allow craft distillers to operate a satellite room and use certain alcohol modifiers on premises, and AB 1991 would authorize wineries, breweries, and craft distilleries to conduct sensory tastings for research with guardrails; both had industry support, with AB 1991 drawing one opposition voice from Alcohol Justice. AB 1578 would require elected officials to take anti-hate speech training as part of existing sexual harassment training; it drew sharp First Amendment objections from opponents and mixed committee views, but the motion to send it to Appropriations passed on a recorded vote. The committee also heard AB 1807, which would bar state-owned property from being used for federal immigration enforcement operations; the author and supporters argued it would protect communities and prevent state complicity in federal actions.

Transcript Highlights:

• That's been increased, according to the consumer price index, up to $28. So that's under state law.
• Health insurers have been required to cover these services with no cost to consumers.
• Health insurers have been required to cover these services with no cost to consumers.
• Her employer fired her when she requested a few days off for that care.
• Yes, even electronically transmitting data can be time-consuming.

Bills: HB1496 , HB2182 , HB2196 , HB2242

Committee: House Health Care & Wellness

Keywords: patients' rights, healthcare information, medical confidentiality, health data security, healthcare access, abortion, medications, reproductive health, access, healthcare, PANDA, PANS, treatment access, mental health, legislation, preventive services, state authority, definitions clarification, public health

Transcript Highlights:

• As you came into the hearing room today, the sergeants directed your attention to the rules for public
• They spend less on consumer products that support the California economy.
• We're prepared to vote for it and support it as it moves in the right direction.
• We need generational employment, generational training across the board.
• These contracted workers rarely receive all of the training required of direct hires.

Summary: The Assembly Higher Education Committee heard a series of bills focused on expanding access to higher education, addressing workforce shortages, student housing, and labor standards on campus projects. AB 662 would create a South County Higher Education Task Force to explore a mixed-use, intersegmental institution in Chula Vista; supporters said South San Diego County is a “college desert,” while the bill passed on a due pass as amended motion to Appropriations. AB 885 would establish a College Access for All Fund to help make CSU and UC attendance more affordable; supporters cited student debt and affordability concerns, and it also passed to Appropriations. AB 730 would provide $15 million to help establish a medical school in the Central Valley to address physician shortages, and it advanced on a due pass motion. AB 1400 would let up to 15 community college districts pilot bachelor’s degrees in nursing; supporters argued it would expand affordable BSN access and keep students local, while CSU, UC, and other higher education groups opposed it as unnecessary and inconsistent with the master plan. The bill passed to Appropriations, with members raising questions about clinical placements, faculty shortages, and possible effects on associate-degree programs. The committee also considered AB 1235, which would require CSU design-build projects to use a skilled and trained workforce, aligning CSU with other public higher education construction standards. Supporters said it would improve safety, training, and local job opportunities, and the bill passed to Appropriations. AB 1247 would restrict contracting out of classified school and community college jobs unless workers meet training and qualification standards and would address pension and training concerns; supporters said it would protect students and classified employees, while school and college groups warned it would disrupt services and add unfunded mandates. The bill passed to Appropriations with one no vote. AB 1470, presented on behalf of Assemblymember Haney, would allow a portion of student housing revolving loan funds to be used for affordable student, faculty, and staff housing in downtown and commercial districts; it was discussed as a housing and downtown revitalization measure, but the committee held off on a motion pending more members. ACA 3, also on behalf of Haney, would require UC to offer limited down payment loans to eligible long-term support staff first-time homebuyers; it drew extensive support from UC workers and unions, while UC and business groups opposed it as costly and outside UC’s mission, and the measure was still under discussion at the end of the transcript.

Transcript Highlights:

• Because a lot of these workers actually live with their employer, and they don't have any proof that
• This is a trial lawyer employment bill without this amendment.
• And I think that, you know, Seattle has been a pioneer in this direction.
• That is not, and it does not require an employment contract, Mr.
• That is not, and it does not require an employment contract, Mr.

Bills: SB5223 , SB6071 , SB5966 , SB6061 , SB6016 , SB5973 , SB5053 , SB5249 , SB6190 , SB5574 , SB6263 , SB6282 , SB5950 , SB6074 , SB6096 , SB5609 , SB5943 , SJM8016 , SB5907 , SB6155 , SB6158 , SB6227 , SB6085 , SB6234 , SB6274 , SB5909 , SB6045 , SB6089 , SB6170 , SB5954 , SB5762 , SB6032 , SB6082 , SB6164 , SB6176 , SB6319 , SB6308 , SB6177 , SB6052 , SB6182 , SB6335 , SB6017 , SB5470 , SB5990 , SB5046 , SB5387 , SB5637 , SB5647 , SB5839 , SB5888 , SB5962 , SB6018 , SB6037 , SB6047 , SB6078 , SB6130 , SB6147 , SB6256 , HB2155 , HB2304 , HB2367 , HB2606 , SB5998 , SB6005

Keywords: criminal offense, fingerprinting, law enforcement, state regulations, public safety, overpayment recovery, modernization, health care, legislation, healthcare, nutrition, medically tailored meals, dietary support, food security, chronic illness, tourism, self-supported assessment, funding, statewide promotion, economic development

Transcript Highlights:

• It includes three divisions: Medicaid, health care purchasing and compliance, and consumer health, and
• Health care purchasing and compliance, and consumer health, and consolidates functions from multiple
• Amendment No. 913 to Senate Bill 260 eliminates the requirement for certain employers to establish and
• Amendment 913 to Senate Bill 260 eliminates the requirement for certain employers to establish and implement
• requires the Administrator of the Division of Industrial Relations to establish regulations that an employer

Transcript Highlights:

• I mean, we have to learn that roads are consumables.
• And then we've got to say a road is a consumable.
• Consumable.
• Why are we, we talk about consumables, why are those roads consumed so fast? Mr.
• My question is, you know, Chairman Muñoz made the point that roads are consumable.

Transcript Highlights:

• </c> technology platform, the consumer technology platform, the consumer assistance,<00:07:25.360><c>
• </c><00:48:47.760><c> KIPA</c><00:48:48.319><c> has</c> employer sponsored insurance.
• KIPA has employer sponsored insurance.
• </c> away from employer sponsored coverage. away from employer sponsored coverage.
• </c> employment or life transition. employment or life transition.

Summary: The Medicaid Oversight Advisory Board met for its third meeting and approved the July 30 minutes. The chair outlined a full agenda covering the state-based marketplace versus the federally facilitated marketplace, connectors and navigators, presumptive eligibility, eligibility/enrollment/redetermination, and a rural health transformation update. Commissioner Lisa Lee and Assistant Director David Barry presented first on Kentucky’s state-based exchange, Connect, explaining that it is an integrated eligibility and enrollment system for Medicaid, CHIP, SNAP, TANF, child care, and qualified health plans. They reviewed Kentucky’s move from a state-based exchange to healthcare.gov in 2017 and back to a state-based marketplace in 2021, and said the system helps route applicants to the correct program and allows families to move more easily between Medicaid and exchange coverage as circumstances change. The presenters said the exchange is funded by carrier assessments on qualified health plans rather than general fund dollars, with costs allocated across programs based on use. They said Kentucky’s exchange fees are lower than the federal platform’s and that the state-based system provides local assistance through DCBS offices, connectors, and licensed agents in every county. Members asked about startup and operating costs, fee-setting, and whether any general fund dollars are used; the department said it would follow up with the CFO on fee details and said it was not aware of general fund support for exchange operations. Members also raised concerns about Medicaid eligibility verification and improper enrollment, while the department emphasized that the state system uses different questions than healthcare.gov and is designed to identify the correct coverage based on monthly Medicaid income and annual tax-credit income. The board also discussed enrollment trends, including a COVID-era spike during the public health emergency when disenrollments were largely paused, and current qualified health plan enrollment of more than 97,000 people on Connect. Commissioner Lee explained presumptive eligibility as temporary Medicaid coverage, noting it applies to pregnant women and hospital-based cases, with hospitals able to grant it and certain providers able to grant it to pregnant women. She said full eligibility is still determined within 30 days and that presumptive eligibility ends when full Medicaid eligibility is determined or at the end of the following month. The meeting then shifted to connectors, with representatives from Community Action Kentucky and the Kentucky Primary Care Association describing their statewide outreach network, local offices, and role helping residents apply for Medicaid, renew coverage, report changes, and navigate benefits; they said connectors do not determine eligibility but assist with applications, recertifications, and outreach events across the Commonwealth.

Transcript Highlights:

• And right now, if delays for consumers.
• Yeah, the DOT would not direct anybody to damage anybody's property.
• No, it's prohibited on roads with three or more lanes in the same direction.
• No, it's prohibited on roads with three or more lanes in the same direction.
• No, it's prohibited on roads with three or more lanes in the same direction.

Summary: The committee heard testimony on several transportation-related bills. HB 1688, which would provide a general excise tax exemption for certain aircraft maintenance materials, parts, tools, and facility construction, received comments from the Department of Taxation and support from Alaska Airlines, Hawaiian Airlines, Kohala Coast Resort, the Activities and Attractions Association of Hawaii, and the Tax Foundation of Hawaii. Testimony indicated the measure was intended to clarify an existing exemption rather than create a new one. The bulk of the hearing focused on HB 2386, which would authorize the Public Utilities Commission to establish automatic adjustment mechanisms and a water carrier inflationary cost index. The Department of Transportation said it would change its testimony to support the bill, citing a 2020 working group recommendation, while the PUC and DCCA offered comments. Matson, the Maritime Group, Hawaii Harbors Users Group, and Young Brothers supported the measure, arguing it would modernize regulation, improve predictability, and help maintain reliable interisland shipping. Hawaii Farm Bureau offered comments, while Hawaii Food Industry Association, Maui Brewing Company, Lani Kai Brewing Company, and the Japanese Chamber of Commerce and Industry of Hawaii opposed it, arguing automatic rate increases were not the solution and that underlying costs and efficiencies should be addressed first. The chair noted the bill was essentially the same as one previously considered, and asked questions about how Hawaii’s water carrier regulation compares with other states. The committee also heard HB 1691, which would allow electronic signatures for certain motor vehicle title transfers after total-loss insurance settlements and remove the notary requirement for that narrow transaction. The City and County of Honolulu Department of Customer Services, Hawaii Insurers Council, Copart, American Property Casualty Insurance Association, and one individual supported it, with Copart saying the change would reduce delays and could allow a faster, largely electronic settlement process. Members asked about county impacts, and Copart said counties would only see a different form with no added cost or electronic integration. HB 1680, requiring county finance directors to notify agencies through a centralized system for vehicle transfers, drew opposition from the City and County of Honolulu Department of Customer Services and one individual in support. HB 2516, raising helmet requirements for electric foot scooters and bicycles and requiring helmets for high-speed or Class 3 electric bicycles, received support from DOT, DOH, AAA Hawaii, and the Hawaii Bicycling League. HB 193, allowing deaf vehicle owners to register a deafness designation visible to law enforcement, drew support from the City and County of Honolulu Department of Customer Services, the Hawaii Disabilities Rights Center, and an individual who suggested amendments to broaden the bill to deaf and hard of hearing individuals and adjust the proof standard. HB 2442, increasing required accessible and van-accessible parking spaces in larger parking lots, was supported by the Disability and Communication Access Board, the Council on Developmental Disabilities, and the Disability Rights Center, which said the bill would address shortages of accessible parking and may need technical amendments to align terminology with the ADA.

Transcript Highlights:

• </c> uh respectfully request one-time direct uh respectfully request one-time direct appropriations<00
• </c> we came up with these proposed direct we came up with these proposed direct appropriation<00:32:
• c> one-time direct appropriations, one-time direct appropriations, uh<00:40:16.160><c> because</c><00
• And it's similar to the consumer price index.
• </c><00:53:31.040><c> price</c> it's similar to the consumer price it's similar to the consumer price

Summary: The committee met for its fifth and final Interim Joint Budget Review Subcommittee on Education meeting, but did not initially have a quorum and approved the minutes later when enough members were present. The Council on Postsecondary Education, represented by President Aaron Thompson and Vice President Bill Payne, opened with condolences for the UPS crash victims and then presented higher education budget recommendations for the 2026-2028 biennium. Thompson emphasized the return on investment from state support for higher education, citing gains in retention, enrollment, persistence, graduation, reduced time to degree, lower student debt, and expanded dual credit participation, while noting that affordability and access remain priorities. Payne outlined CPE’s operating funds request, including $43.3 million in the first year and $86.6 million in the second year for inflation adjustments, plus $30 million and $45 million for performance funding. He said the inflation request would apply across the board to institutions to offset rising costs, and that the KSU land grant match would not need additional funding because the state has already met the matching requirement. He also explained that state support for educating students has not kept pace with inflation over time, creating pressure on institutional budgets and tuition, though tuition increases have been held to historic lows in recent years. A major portion of the discussion focused on the performance funding model and how it affects smaller institutions. CPE proposed two approaches to address institutions that have received little or no performance funding, especially Kentucky State University and Morehead State University. The first approach would create a $20 million minimum distribution pool, providing $1.95 million to each university and $4.4 million to KCTCS, with the goal of giving smaller and rural institutions a base level of support. The second approach would provide direct appropriations totaling a little over $5.6 million to Kentucky State, Morehead State, and five community colleges that have not been receiving performance funding. Members, especially Representative Tipton and Senator West, questioned how the model had treated small schools over time, and CPE officials explained that the original small school adjustment was not large enough to prevent KSU and Morehead from effectively being left out of the distribution. No votes were taken.

Transcript Highlights:

• So as you know, back in September of 2023, Governor Newsom signed Executive Order 1223, which was directing
• What have you found out since the Governor actually issued his directive?
• College Corps is what ultimately got me out of my shell, and through its abundance of employer partners
• CDT is not providing direct oversight on the project.
• So there's additional oversight, but they're not providing direct oversight as CDT.

Summary: The subcommittee held an informational budget hearing covering several GovOps, CDT, CPPA, and DGS items. GovOps reported that most deliverables under the Governor’s generative AI executive order have been completed, including guidelines, procurement tools, community-impact guidance, and a new project delivery lifecycle for Gen AI projects; one workforce-related deliverable remains. Members and public commenters raised concerns about privacy, labor impacts, and how the state will explain and oversee Gen AI use. The committee also heard a proposal to create a California Education Interagency Council with $5 million ongoing and 16 positions to coordinate workforce and education systems; LAO questioned duplication and recommended limited-term funding, while supporters said a neutral convening body is needed to improve coordination and student outcomes. GoServe presented the College Corps budget proposals, describing the program as a paid service and career-development opportunity for undergraduate students that helps reduce college costs while supporting communities through tutoring, food insecurity work, climate and disaster response, and other service. The administration sought one-time and ongoing funding to expand the program to more campuses and students, while LAO objected to the high administrative costs and recommended rejection. Several students and alumni testified that College Corps provided financial support, professional experience, and career pathways. The committee also heard a $5 million proposal for a Belonging Campaign to address loneliness and social isolation through research, outreach, and local grants; LAO said the proposal lacked clear goals and measures, while supporters said the effort is needed for youth, seniors, and community resilience. The Department of Technology updated the Middle Mile Broadband Initiative, saying construction is underway on the statewide open-access network and the project remains on track for the 2026 deadline, though LAO noted a required business plan had not yet been submitted. The California Privacy Protection Agency presented its Delete Act implementation request for the DROP platform, which will let consumers request deletion of personal information held by data brokers; LAO flagged oversight concerns because CDT is both developing the system and involved in project support. Public commenters from business groups urged caution on CPPA’s rulemakings, warning of compliance costs and job impacts. The Department of General Services then discussed implementation of Proposition 2 school facilities bonds, requesting staffing and administrative funding to manage the new bond program and continue school facility work. Officials said the program can also help districts affected by the January wildfires, including interim site funding and expedited assistance. Finally, DGS requested authority and positions to operate Building 18 for labor-agency tenants relocating from older Capitol Mall space; SEIU Local 1000 criticized the state’s four-day return-to-office policy and said telework has improved productivity and retention. No formal votes were taken; the hearing concluded after public testimony and member questions on each item.

Transcript Highlights:

• This unemployment insurance debt will be paid by employers, that is, the entities in our economy that
• So what we have is a policy, maybe unintentional, that acts as a governor on employment in the state,
• outlines that $1 billion in discretionary funding will go through GGRF, with $750 million to be directed
• at, but it's to partially offset that to continue the adoption of zero-emission vehicles in the consumer
• Part of that is because so much of our spending now is much more on direct payments to people or direct

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.

Transcript Highlights:

• Speaker, the underlying bill here, HB 892, remained largely the same, and it was a directive to the SCC
• It was a directive to the SCC to initiate a proceeding to review load forecasting practices by utilities
• that we were safeguarding the security and privacy of data that is specific to locations and to consumers
• constituents are able to collectively bargain and meaningfully engage in discussions about their employment