Transcript Highlights:

• For the Air Resources Board, $666,000 from the General Greenhouse Gas Reduction Fund and three permanent
• The greenhouse gas reduction fund is balanced at May Revision, with continuous appropriations and the
• Given that we're facing out-year structural deficits, how will the administration approach this issue
• We are talking about a reduction of up to $3 billion between now...
• We are talking about a reduction of up to $3 billion between now and fiscal year 2028-29.

Summary: The Assembly Budget Subcommittee hearing focused on the governor’s May Revision, especially the proposed extension of the cap-and-trade program to 2045 as “cap-and-invest,” the related greenhouse gas reduction fund (GGRF) spending framework, and several trailer bill proposals. Department of Finance staff outlined budget solutions including a $1.5 billion annual General Fund-to-GGRF shift for Cal Fire that would grow to $1.9 billion by 2029-30, continued support for high-speed rail, climate bond implementation, and various environmental and water-related statutory changes. The administration also described proposals affecting the Delta Conveyance Project, water quality planning, groundwater bulletin timing, Exide cleanup funding, and other agency-specific items, though the chair repeatedly asked staff to keep the presentation high-level and save details for the next hearing. Members from both parties raised strong concerns about the cap-and-invest proposal, arguing that it could reduce or displace funding for transit, affordable housing, active transportation, wildfire prevention, zero-emission vehicles, and other previously committed programs. Several members questioned whether the administration was effectively shifting essential ongoing services like Cal Fire onto a temporary carbon market fund, how the General Fund backstop would work if auction revenues fall short, and whether the proposal would leave enough money for continuous appropriations and future awards. Members also criticized the inclusion of cap-and-invest reauthorization in the budget process and asked for clearer information on the impact to high-speed rail, transit, and other GGRF priorities. The Delta Conveyance Project and related trailer bill language drew significant opposition from members and public commenters, who argued the proposal would fast-track the project, weaken CEQA-related review, and authorize revenue bond financing without sufficient legislative oversight. Public testimony also included support for maintaining or expanding funding for transit, affordable housing, AB 617 community air protection, offshore wind infrastructure, and ignition interlock programs, while environmental and community groups opposed cuts to wildfire prevention, housing, and school climate-related programs. No votes were taken; the hearing was informational, and the chair said the committee would continue the discussion and receive more detailed responses at the follow-up hearing on Tuesday.

Transcript Highlights:

• He is our lead on tracking reductions in federal funding.
• We've been seeing cancellations and we've also been seeing reductions.
• Inflation Reduction Act in that table on the right.
• Guess I mean, if the feds don't deal with the federal deficit.
• And there was a concern that they needed to be brought in sooner to help with deficit reduction.

Transcript Highlights:

• At the time, he was being objected to because we were in a structural deficit, not unusual here, but
• For our cities, reductions in public safety budgets would be equally disastrous, as almost all would
• There would also be a 20% reduction in law enforcement patrol in Portola Valley.
• As you know, the state is facing a deficit in 2027-28.
• To address that projected deficit, the state is already considering ways to reduce its spending.

Keywords: 988, house, all

Summary: The committee heard a lengthy presentation on San Mateo County’s request to restore in-lieu vehicle license fee (VLF) funding, which county officials said would otherwise leave the county and its cities facing major budget losses. Supervisors and local officials argued the 2004 VLF swap was intended to hold local governments harmless, but the formula no longer works for San Mateo because of its mix of basic-aid school districts and high property values. They said the loss would force deep cuts to homelessness services, rental assistance, mental health programs, libraries, parks, public safety, wildfire mitigation, and nonprofit partners, with examples including shelter closures, reduced police and fire staffing, and layoffs. The Department of Finance responded that the payments are not statutorily mandated, are discretionary, and are not sustainable in the current fiscal situation, noting the state has still provided more than $300 million since 2012. Members from both parties expressed sympathy, questioned the formula, and said the issue may need a permanent legislative fix; public commenters from cities, labor, nonprofits, and public safety organizations overwhelmingly supported full restoration. The committee ultimately held the item open and later took vote-only action to move two unrelated items on the agenda. The committee also received an update from the Department of General Services on state property redevelopment projects, including the Hillcrest DMV site in San Diego, the Fell Street DMV site in San Francisco, and other state-owned properties. DGS explained that Hillcrest is not yet an active project, while the Fell Street DMV proposal shifted from an integrated housing-and-DMV concept to a plan to relocate DMV into leased space so the site can proceed as housing. Officials said the leased-space option is significantly cheaper than building a new DMV on-site and would allow the housing project to move forward, though questions remained about timing, costs, and whether the partnership model can work. Members pressed DGS on the broader challenge of converting state buildings to housing, and DGS said adaptive reuse depends heavily on building type, floorplate depth, light, and risk from unknown conditions behind walls. The committee also briefly discussed Fairview Developmental Center and the Southern California Veterans Cemetery feasibility study, with DGS saying both are progressing. In Government Operations items, the California Education Learning Lab asked for permanent restoration of its $4 million annual funding and a move from the Office of Land Use and Climate Innovation to GovOps, arguing that the program supports intersegmental innovation in teaching and learning across UC, CSU, and community colleges, including AI-related work. The Legislative Analyst’s Office recommended rejecting the restoration and continuing the planned wind-down, citing the state’s projected deficit and suggesting the interagency council could pursue non-state-funded grant opportunities instead. The committee held that item open. The next item, on the California Education Interagency Council, was presented as a staffing request for four ongoing positions, with GovOps saying the council has already been set up administratively and an executive officer has been appointed.

Transcript Highlights:

• In this 2025-26 budget, that one-time reduction is restored.
• So that's a fairly significant reduction.
• 7.95% reduction.
• Because now it is a reduction, and it's an ongoing reduction.
• Additionally, as part of the statewide efficiency reductions, the State Library should plan for a reduction

Summary: The committee heard the May Revision presentation for the Assembly Budget Subcommittee on Education Finance, with public comment focused heavily on K-12 priorities such as universal school meals, kitchen infrastructure, food service and custodial support, youth leadership grants, Special Olympics funding, English learner support, universal pre-K, literacy investments, and concerns about community college funding shifts. Speakers also urged support for expanded learning, teacher recruitment and training, and maintaining or increasing funding for community colleges and student support programs. Finance and the LAO then reviewed the Proposition 98 outlook. Finance said the May Revision lowers the 2025-26 Prop. 98 guarantee to $114.6 billion, about $4.3 billion below January, due mainly to lower revenue estimates, with smaller effects from attendance and property tax changes. The administration also described rebenching for universal transitional kindergarten and a one-time rebench tied to Los Angeles fire-related property tax losses, along with changes to the Public School System Stabilization Account, deferrals, and updated COLA assumptions. The LAO said the budget relies too much on deferrals and one-time funds, creates a structural shortfall, and should instead align ongoing spending with the guarantee and preserve a reserve buffer. Members questioned the TK rebench and the shift of funding from community colleges to K-12, asking why it was being applied retroactively and how colleges would be held harmless. Finance said the changes align funding with where TK costs are being incurred and that reappropriation funding and other adjustments would offset impacts on community colleges. The LAO argued the historical split formula is outdated and should be abandoned in favor of budgeting around current priorities rather than fixed percentages. Members also raised concerns about draining the rainy day reserve and using deferrals, while the LAO said preserving reserves would better protect against future volatility. The committee then moved to specific K-12 and education proposals. Finance outlined May Revision changes including state operations adjustments for the Department of Education, technical trailer bill changes, a $100 million student teacher stipend program administered by Kern County, and updates to the charter school facility grant program. The LAO recommended rejecting the proposed increases for expanded learning, literacy coaches, and the student teacher stipend as currently structured, while supporting the minimum grant increase for expanded learning. Members expressed support for teacher recruitment efforts but questioned whether one-time funding can sustain ongoing programs and whether the student teacher stipend should be targeted to shortage areas or low-income communities.

Transcript Highlights:

• This is a one-time reduction of $1.7 million in fiscal year 2025.
• in the 2829 BM the projected deficit in the 2829 BM this<00:13:27.320> is<00:13:27.440> a<
• > 1<00:13:29.120> .7 this is a one-time reduction of 1 .7 this is a one-time reduction
• <00:19:31.240> and bium uh there will be a deficit and bium uh there will be a deficit and
• Senator Mqu, well... uh to prevent deficits in certain uh to prevent deficits in certain Pockets<00:20

Keywords: 1187, senate, all

Transcript Highlights:

• Those reductions have had the impact of increased pressure on paras.
• We've still not made up those deficits.
• Our schools are at a $2 million deficit this year.
• The drastic reduction in HIP means lower sales for our farms.
• They saw a 64% reduction in weekly transaction numbers.

Keywords: 995, all

Summary: The Joint Ways and Means Committee held its final public hearing on the FY26 state budget, with chairs and members emphasizing that public testimony would help shape the budget and asking speakers to keep remarks brief. Committee leaders introduced members, explained the hearing process, and repeatedly thanked residents, students, and advocates for participating. No votes were taken during the hearing. Testimony focused heavily on education funding and the Chapter 70 formula. Students from Amherst, Northampton, Gateway Regional, Chester Elementary, and other districts described budget-driven cuts to electives, special education supports, paraprofessionals, counselors, transportation, and building maintenance. They urged higher Chapter 70 aid, increased minimum aid, rural school aid, and a reopening or restructuring of the funding formula, arguing that current formulas leave many districts unable to meet student needs and force local layoffs and overrides. Other speakers urged funding or protection for a range of programs and facilities, including the Louis D. Brown Peace Institute for homicide survivor services, the Museum of African American History, the Massachusetts Commission for the Deaf and Hard of Hearing and CART/interpreter services, the Access to Counsel housing legal aid program, the Department of Mental Health and Pocasset Mental Health Center, and Pappas Rehabilitation Hospital for Children. One speaker opposed offshore wind-related spending and urged a reset of the state’s energy approach, while another advocated ending the aircraft sales tax exemption. Committee members responded sympathetically to many speakers, asked a few follow-up questions, and several expressed support for maintaining or expanding the programs discussed.

Transcript Highlights:

• or deficit reduction.
• neutrality or deficit yield deficit neutrality or deficit reduction.<04:15:24.640> That's<04:
• running close to $2 trillion deficits. running close to $2 trillion deficits.
• we repeal the Inflation Reduction Act. we repeal the Inflation Reduction Act.
• a half in reductions over 10 years? a half in reductions over 10 years?

Keywords: U.S. House of Representatives Floor Proceedings on Thursday, May 1, 2025, 1012, house, all

Transcript Highlights:

• Both of these groups of individuals, we are expecting to see a very strong impact in reduction of our
• I know it's 81% and 10% of case load reduction, but can you give me that 1,000 number again?
• I know it's 81% and 10% of case low reduction, but can you give me that 1,000 number again?
• We already know over and over again where we are as far as the budget deficit, and we know that...
• this deficit, we're going to have to make some hard-fought decisions.

Summary: The joint informational hearing focused on CalFresh enrollment, food insecurity in California, the recent federal shutdown’s disruption of SNAP benefits, and the long-term effects of H.R. 1 on eligibility, benefits, and state and county costs. Opening remarks emphasized that millions of Californians rely on CalFresh, that the shutdown briefly delayed benefits for the first time in the program’s history, and that state and local governments, including Alameda County, stepped in with emergency food aid and funding. Members also framed the issue as both a hunger and affordability problem, with several noting that California’s agricultural abundance contrasts sharply with persistent food insecurity. The first panel presented research and advocacy perspectives on food hardship. PPIC’s Tess Thorman described food insecurity rates, disparities affecting households with children and Black and Latino households, and the role of nutrition programs in reducing poverty. Nourish California’s Betzabel Estudio argued that hunger is a policy choice and highlighted campaigns to expand state-funded food assistance for immigrants, support reentry populations, and continue the CalFresh fruit-and-vegetable incentive program. The California Association of Food Banks’ Josh Wright said food banks are seeing sustained high demand, lower federal food supplies, and cannot replace CalFresh, while urging more state support for food purchasing, school meals, and SunBucks. The second panel reviewed CalFresh operations and participation. The California Department of Social Services reported that CalFresh participation has risen over the past decade, with the state closing much of the participation gap through outreach, simplified applications, and demonstration projects such as the Elderly Simplified Application Project and a minimum nutrition benefit pilot. Alameda County Social Services described local caseloads, application trends, and emergency food distributions during the shutdown, while also warning that H.R. 1’s work requirements, immigrant eligibility restrictions, and possible cost-sharing could reduce enrollment. A student CalFresh ambassador testified about the burdensome application and recertification process and urged more funding for campus basic-needs centers and outreach to reduce stigma and administrative friction. In the final panel, county, food bank, and policy witnesses described the shutdown response and the expected impact of H.R. 1. Alameda County Community Food Bank and the County Welfare Directors Association said counties, food banks, and community partners mobilized emergency funds, pop-up pantries, and food purchasing to bridge the shutdown gap, but warned that hundreds of thousands of Californians could lose benefits under the new federal rules. The California Budget and Policy Center began outlining the scale of federal cuts, noting that H.R. 1 will significantly reduce SNAP funding and shift costs to states. No votes or formal committee actions were taken; the hearing was informational and concluded with discussion of possible state responses, including backfilling benefits, preserving outreach funding, and improving administrative systems to protect enrollment.

Transcript Highlights:

• pass-through entities that benefit from the qualified business income deduction and the general reductions
• But what about fiscal responsibility and cutting the deficit?
• reduction, health care costs, or small business support.
• He's saying, well, the deficits, it's a huge problem for our country.
• The Tax Cut and Jobs Act in 2017. resulted in the deficit growing by $2 trillion.

Keywords: joint hearing, small business, Tax Cuts and Jobs Act, economic recovery, tax relief, job creation

Summary: In this joint hearing of the House Committee on Small Business and the Senate Committee on Small Business and Entrepreneurship, the primary focus was on the importance of making the Tax Cuts and Jobs Act of 2017 (TCJA) permanent. The chair emphasized that small businesses are crucial for the nation's economic recovery, especially in the wake of current federal policies perceived as detrimental. Witnesses shared their experiences and highlighted how the tax cuts facilitated job creation and business expansion, stressing the need for continued support through ongoing tax relief measures. The meeting included discussions about the economic implications of the TCJA's potential expiration, with members voicing their concerns regarding how this could impact small businesses and the broader economy.

Transcript Highlights:

• <00:06:40.199> in protect students from reductions in protect students from reductions in
• make up for the state Grant reductions make up for the state Grant reductions and<00:14:00.440><
• for the program is a deficit for Minnesota students and a deficit for quality of life for all Minnesota
• for Minnesota students and a deficit for Minnesota students and a deficit<00:34:02.000> for<00
• there's a a program spending deficit there's a a program spending deficit projected<01:20:42.440

Keywords: 1183, house

Transcript Highlights:

• And it essentially sends us to the potential this year of actually going into a deficit.
• Just to ensure that it doesn't put us in a deficit.
• So, that's a reduction of 50% in our testing.
• So that's a reduction of over 100 days of racing, which is significant.
• So, I think there would be a reduction in that type of scenario. And that's what we saw.

Transcript Highlights:

• ADH does not have a fund balance, and in recent years, we've actually been running a deficit.
• your income, your expenses, and you were about $53,000 short last year, and you said you're out of deficit
• You know, that may change, but right now we’re able to cover that deficit through the cost allocation
• That, in the fee reductions, is doing that.
• And so there was legislation that y’all ran in 2023, I think, as well, that required the fee reductions

Keywords: 1204, all

Transcript Highlights:

• ADH does not have a fund balance, and in recent years, we've actually been running a deficit.
• your income, your expenses, and you were about $53,000 short last year, and you said you're out of deficit
• You know, that may change, but right now we’re able to cover that deficit through the cost allocation
• That in the fee reductions is doing that. The scholarship’s been in place, I believe, since 2023.
• you know, there was legislation that y’all ran in 2023, I think, as well, that required the fee reductions

Summary: The committee met and first recognized a visiting student cohort from Arkansas State University’s Medical Laboratory and Radiation Sciences program. It then suspended the rules and approved a supplemental report, which was reviewed without objection. Members reviewed the Arkansas Fire Protection and Licensing Board’s occupational report. Department of Labor and Licensing counsel Lacey Kirchner answered questions and confirmed there were no fee increases. The report was then accepted as reviewed. The committee next heard from the Arkansas Department of Health’s Radiation Control Section. Officials Craig Smith, Charles Thompson, and Shane David explained the radiologic technologist licensing program, including full and limited-scope licensure, unchanged fees since 1999, and a current deficit covered through cost allocation from other programs. They also noted compliance with automatic licensure provisions for service members and said apprenticeship provisions already exist in the rules if such programs become available. The report was accepted as reviewed. Finally, the Arkansas State Board of Physical Therapy presented its report. Staff described the board’s structure, licensing and complaint functions, compact participation, and growth in licensees. Members asked about the board’s $200,000 scholarship program, which provides awards to 10 recipients per year, and about low fees and a $1.1 million balance. Officials said recent fee reductions and the scholarship program are intended to return funds to licensees. The report was also accepted as reviewed, and the committee moved to other business.

Transcript Highlights:

• With a looming budget deficit, it is important that we offer solutions to that deficit.
• With a looming budget deficit, it is important that we offer solutions to that deficit.
• <00:27:49.559> to<00:27:49.799> that<00:27:50.559> deficit<00:27:51.559>
• the we offer solutions to that deficit the we offer solutions to that deficit the first<00:27:51.880
• It's an appropriate punishment, and it comes with reductions in civil liberties.

Keywords: 1183, house

Transcript Highlights:

• WHICH IS THE SALES TAX RATE REDUCTION WE PASSED OFF THE FLOOR UNANIMOUSLY IN WEEK SIX.
• THIS IS THE REDUCTION OF THE STATE SALES TAX GENERAL SALES TAX FROM 6 PERCENT TO 5.25 AND SEVERAL OTHER
• THE TOTAL RECURRING REDUCTION IN TAXES IN THE BILL IS JUST UNDER $5.5 BILLION OF WHICH APPROXIMATELY
• AS WAS MENTIONED EARLIER, WE ALL VOTED UNANIMOUSLY TO SUPPORT THE SALES TAX REDUCTION ON THE HOUSE FLOOR
• IT WAS PART OF THE GENERAL REDUCTION IN ADDITION TO REDUCING THE GENERAL RATE FROM SIX TO FIVE AND ONE

Transcript Highlights:

• though your budget deficit existed far before Donald Trump even got reelected to the office.
• We know that we were facing massive deficits.
• And when you have deficits and you have to make tough decisions, that's certainly not an easy thing to
• We couldn't do deficit spending. You look at the revenues.
• We have a deficit, and we borrow from a rainy day fund. That's not good budgeting.

Keywords: 988, house, all

Transcript Highlights:

• ADH does not have a fund balance, and in recent years, we've actually been running a deficit.
• your income, your expenses, and you were about $53,000 short last year, and you said you're out of deficit
• You know, that may change, but right now we’re able to cover that deficit through the cost allocation
• That, in the fee reductions, is doing that. The scholarship’s been in place, I believe, since 2023.
• you know, there was legislation that y’all ran in 2023, I think, as well, that required the fee reductions

Summary: The committee met and first welcomed a visiting group from Arkansas State University’s Medical Laboratory and Radiation Sciences program. It then suspended the rules to take up a supplemental report, which was approved and noted as reviewed without objection. Members reviewed the Arkansas Fire Protection and Licensing Board’s occupational report. Counsel for the Department of Labor and Licensing said there had been no fee increases, and the report was accepted without objection. The committee then heard from the Arkansas Department of Health’s Radiation Control Section, which described its radiologic technologist licensing program, including full and limited-scope licensure, unchanged fees since 1999, and a recent operating deficit covered through cost allocation. Members asked about the deficit, possible future fee changes, and whether apprenticeship pathways might be added; the agency said it was not currently planning fee increases and would accommodate apprenticeship if such programs are created. That report also stood as reviewed. Finally, the Arkansas State Board of Physical Therapy presented its report, outlining its licensing and disciplinary role, current licensee counts, compact participation, and recent growth in licensees. The board highlighted lower fees, a $200,000 scholarship program for 10 recipients per year, and a large fund balance that is being reduced through fee cuts and scholarships. Members asked about the scholarship details and the effect on reserves. The report was accepted without objection, and the meeting concluded with no further business.

Transcript Highlights:

• Continuous coverage unwinding or the overdose prevention and harm reduction initiatives.
• To answer your question, the reduction is based on updated opioid settlement fund revenues.
• I'm a co-director at the Yuba Harm Reduction Collective.
• The size of the deficits varies, and it's a projection that continues to evolve.
• Of course, we need more definition on that, the opioid settlement, and harm reduction.

Keywords: 988, house, all

Transcript Highlights:

• Admiral, a significant reduction of of our military presence on the Korean Peninsula, good or bad?
• We have a trade surplus with Australia, not a deficit. We have a trade surplus with Australia.
• The measure of the tariff was not Chinese trade barriers, it was the trade deficit that we have with
• Japan, measured by deficit in goods.
• The trade deficit is we buy more of their stuff than they buy of our stuff.

Keywords: Indo-Pacific Command, U.S. military strategy, China military drills, Taiwan, Philippines, North Korea, defense budget, military modernization

Summary: The meeting focused on significant strategic discussions regarding the U.S. Indo-Pacific Command and its military posture in the region. Admiral Paparo and General Brunson were commended for their services, with the Chair noting an alarming shift in the balance of power towards China. Key topics included China's aggressive military drills near Taiwan, the increasing coercion against the Philippines, and the need for the U.S. to reaffirm its commitments to its allies in the region. Concerns were raised regarding China's military modernization and its implications for U.S. forces, alongside discussions on North Korea's threats and its burgeoning nuclear capabilities. The committee emphasized the urgent need for military and defense appropriations to counteract these growing security challenges.

Transcript Highlights:

• With a looming budget deficit, it is important that we offer solutions to that deficit.
• Some of this is new information as we look at the reductions in costs that have been passed along.
• It's an appropriate punishment, and it comes with reductions in civil liberties—that's the definition
• You saw the budget forecast of a $6 billion deficit in the next couple of years.
• You may have heard recently about the reduction in North Minneapolis.