Transcript Highlights:

• resources include resources those resources include self-care<00:30:25.559> including<00:30:26.000
• I noticed here that for emergency grants that were allocated, $2.5 million were allocated throughout
• So when we look at how Minnesota State system spends its and allocates its resources, obviously based
• allocates its resource um obviously allocates its resource um obviously based<01:19:05.280> on
• The allocation process.

Keywords: 1183, house

Transcript Highlights:

• We have allocated nearly $900 million in grants over the last two years, funding projects We have allocated
• I was actually noticing this morning that this allocation, $668 million, is the largest single allocation
• Brian Cash from the Natural Resources Agency.
• Is there—do you see anything in the Prop 4 bond that could be allocated as a really critical resource
• If you take the resource and you don't pay the true cost of taking the resource, you are, from the public

Summary: The Assembly Budget Subcommittee heard the administration’s spending plan for Proposition 4’s climate smart agriculture and biodiversity chapters, along with related trailer bill language. CDFA outlined proposed funding for existing programs such as SWEEP, Healthy Soils, Urban Agriculture, and invasive species work, plus new or phased-in programs including year-round and mobile farmers’ markets, tribal food sovereignty, and regional farm equipment sharing. The Department of Conservation described funding for the California Farmland Conservancy Program and Working Lands and Riparian Corridors Program, while the Department of Finance and LAO discussed pending allocations and generally found the overall approach reasonable, though LAO suggested the Legislature may want more statutory guidance and reporting, especially for new programs. Members focused on implementation details, equity, and accountability. Questions covered how programs would serve vulnerable and disadvantaged communities, whether new solicitations would be reopened for previously oversubscribed grants, how outcomes are tracked, and how to structure guidance for new programs such as farm equipment sharing. The chair emphasized that the Legislature wants clearer direction on program design and noted that AB 2313 should guide implementation of the regional farm equipment sharing allocation. The committee also discussed the administration’s request to directly appropriate bond funds to departments and to exempt bond program guidelines from the Administrative Procedures Act; LAO supported the APA exemption with possible legislative guardrails for public notice and comment. The committee then heard on the farm-to-school proposal, with CDFA requesting $24.9 million General Fund for incubator grants, technical assistance, and network support. CDFA said the program has reached nearly half of California schoolchildren and has shown strong demand and positive evaluation results. LAO supported the core program but recommended rejecting the $3 million technical assistance component as too broad and suggested the Legislature consider using Proposition 98 for some of the funding. Members debated that point, with some expressing concern about using General Fund dollars for a new discretionary request during a tight budget year. The biodiversity and nature-based solutions chapter included funding for the Wildlife Conservation Board, state conservancies, and tribal nature-based solutions. WCB described major recent investments and proposed projects tied to 30 by 30, habitat restoration, tribal partnerships, and public access. Members raised concerns about long-term stewardship, the size of the WCB allocation, and whether the Legislature should receive more detail on how funds will be distributed. The committee also heard requests for Bolsa Chica wetlands maintenance and Rincon Island decommissioning funding from the State Lands Commission, with members questioning long-term liability, remediation costs, and the role of private oil operators. No votes were taken, and the hearing ended with public comment from stakeholders largely supporting the APA exemption, farm-to-school funding, biodiversity investments, and related conservation programs.

Transcript Highlights:

• And that allocation brought us together, and it allowed us to focus our resources on this issue about
• And that allocation the same direction.
• <00:05:10.640> those a strategic way to allocate those a strategic way to allocate those dollars
• The resources, if you give them to us, it works.
• We weren't allocated our extra bodies.

Keywords: 1183, house

Transcript Highlights:

• in consideration of the findings from the AB 3264 report to evaluate how to best allocate these resources
• But based off of the program successes, that is the reason why we allocated the resources for it holistically
• To best allocate those resources, there are a couple of entities that we're considering, but we're still
• are clean resources.
• It's not allocated, I'm sorry, and gentlemen, it's not allocated.

Keywords: 988, house, all

Transcript Highlights:

• The policy-preferred resources—wind, solar, and batteries—only make a limited contribution to resource
• On the left-hand side there, I've shown the retirements of resources, which are mostly coal resources
• Almost all of the resources that have been added over the last seven years have been wind and solar resources
• Hydro is the original variable resource.
• In fact, if you add up all the resources that are in all of the utilities' resource plans, you'll find

Summary: The committee held a work session covering PFAS regulation and impacts, no-cost allowance allocation for emissions-intensive trade-exposed industries (EITEs), and regional resource adequacy and data center load growth. Senator Victoria Hunt was welcomed as a new member. The Department of Ecology reviewed Washington’s Safer Products for Washington PFAS work, including completed restrictions on PFAS in outdoor furniture, carpets, rugs, stain/water-resistant treatments, and newer rules adopted in November restricting PFAS in most apparel, cleaning products, and automotive washes, with reporting requirements for some other products such as cookware and firefighting gear. Ecology also described Cycle 2 PFAS reviews now underway, including artificial turf and paints, and answered questions about compliance, online sales, sell-through periods, and how Washington’s approach differs from broader bans in states like Maine and Minnesota. The Department of Ecology also presented on PFAS in biosolids, describing a 2024 sampling study, limitations in testing methods, and a 2025 statutory amendment requiring additional sampling between 2027 and 2028 and a report to the legislature in 2029. The Department of Health then updated the committee on PFAS in drinking water, reporting that most Group A public water systems have completed sampling, that 317 sources and 188 systems are expected to exceed new contaminant levels, and that treatment costs for public systems are estimated at about $970 million, leaving a large funding gap; members also asked about private wells, health effects, bathing exposure, and home filters. The Board of Health’s new state action levels are being aligned with federal MCLs, and the department said it expects to continue monitoring and notification under state rules. Ecology also briefed the committee on no-cost allowance allocations to EITEs under the Climate Commitment Act, explaining the leakage-mitigation rationale, the current allocation schedule through 2034, and a forthcoming report on policy options for 2035-2050; members asked about industry barriers, competitiveness, and whether facilities might leave the state. Finally, E3 presented a regional resource adequacy study showing rising load, retirements outpacing additions, limited winter reliability value from wind, solar, and batteries, and a projected shortfall beginning in 2026 that could grow to about 9,000 MW by 2030 if planned projects are not built. The presentation emphasized winter cold-weather events, hydro variability, the importance of permitting and transmission, and longer-term options including nuclear, geothermal, hydrogen, carbon capture, and long-duration storage. EPRI then introduced its DC Flex initiative, which is studying how data centers can provide flexible load through workload shifting, cooling optimization, and on-site backup or bridging resources to reduce grid stress and protect ratepayers.

Transcript Highlights:

• The allocations were provided on an FTE basis, based on the number of FTEs allocated through the model
• Those are those restricted resources.
• That's one area that we can see how districts are allocating those resources, how they allocated, but
• done allocations in a budget.
• Those, while may be considered an allocation that we may use, we're not so... allocation that we may

Keywords: 916, all

Transcript Highlights:

• Resource conservation districts primarily work with private landowners to do critical natural resources
• So first, there's, in terms of how you allocate it, you can allocate it statutorily either...
• First, there's, in terms of how you allocate it, you can allocate it statutorily, either on a continuously
• So it's about how you want to allocate that money.
• And then just being a continuous allocation.

Summary: The Budget Subcommittee No. 4 hearing focused on the Greenhouse Gas Reduction Fund (GGRF) and cap-and-trade reauthorization, with members and panelists discussing how to balance climate goals, affordability, and legislative oversight. The chair emphasized the hearing as a broad review of past GGRF spending and future options, while the LAO outlined how GGRF revenues are generated, how variable they have been, and the tradeoffs between continuous appropriations and annual budget control. Two academic panelists, Dr. Kyle Meng and Danny Cullen Ward, argued that cap-and-trade remains an effective climate policy, but stressed that future revenue will depend heavily on market design, allowance allocation, and price levels. They also raised the idea that GGRF could be used more directly for affordability, especially by lowering electricity costs, and for targeted investments in technologies that the market would not otherwise support. Committee members pressed the panelists on where revenues come from, how much has actually been spent, and whether continuous appropriations reduce oversight. CARB staff said more than $33 billion has been generated to date and a little over $11–12 billion has been spent, with the rest committed or in process, and noted that project timelines can be lengthy. Members also asked about ways to lower electricity rates, reduce wildfire-related utility liabilities, and support electrification. The panelists said transportation fuels are the largest source of GGRF revenue, that industrial emitters receive a smaller share of free allowances, and that reducing wildfire liability and investing in grid-scale batteries could help lower costs and speed decarbonization. Public commenters largely urged the Legislature to preserve or expand continuous appropriations for specific climate programs. Speakers supported funding for nature-based solutions, natural and working lands, urban greening, agricultural climate solutions, waste and composting programs, clean transportation, AB 617 community air protection, clean cars, transit, affordable housing near transit, and dairy digesters. Several groups argued these programs are cost-effective, provide public health and affordability benefits, and should receive dedicated shares of GGRF. Others urged reducing free allowances and using more GGRF revenue to directly lower energy costs for households. No votes were taken during the hearing.

Transcript Highlights:

• There is a handful of allocations that we have in a pending allocations plot.
• I think that's the total allocation for the wildfire mitigation grant program in the total allocation
• What are those allocations looking like now?
• So, we may have, we may not have a multi-year allocation; we may be convinced to have a multi-year allocation
• We would be able to get resources there quicker, drone resources there quicker, and some kind of suppression

Keywords: 988, house, all

Transcript Highlights:

• SP spent or already been allocated SP spent or already been allocated because<00:24:01.159> we
• <00:53:58.760> the land water and mineral resources the land water and mineral resources the
• it's considered a vital vital resource it's considered a vital vital resource for<00:58:42.119><
• <00:59:07.720> of Management this allocation of Management this allocation of $777,500<00:
• Cuts again to free up existing resources Cuts again to free up existing resources we<01:20:49.000

Keywords: 1183, house

Transcript Highlights:

• Proposition 4 allocates $15 million.
• Resiliency sub-allocation. Yeah, sure.
• We have allocated nearly $900 million.
• At the same time, I noticed this morning that this allocation of $668 million is the largest single allocation
• If you take the resource and you don't pay the true cost of taking the resource, you are...

Keywords: 988, house, all

Transcript Highlights:

• >> Chair: YOU ARE RECOGNIZED. >> THE SCHOOL MENTAL HEALTH ALLOCATION PLAN.
• AND I GUESS MY QUESTION IS AS I START THINKING ABOUT THIS AND I LOOK AT THE ALLOCATIONS MADE WE ALLOCATE
• SINCE WE HAVE BEEN ALLOCATING A LOT OF MONEY FOR MENTAL HEALTH SERVICES?
• THEY NORMALLY WOULD ONLY GET A SMALLER ALLOCATION.
• NOT JUST A SCHOOL RESOURCE OFFICER BUT AN ENTIRE DEPARTMENT.

Transcript Highlights:

• > those The district must allocate those The district must allocate those resources<01:32:10.159
• And I would stand 100% behind the data Lori provided, and 100% confident that you're allocating resources
• And I would stand 100% behind the data Lori provided, and 100% confident that you're allocating resources
• And we chose to allocate resources towards the most current and proven and peer-reviewed and research-based
• And we chose to allocate resources towards the most current and proven and peer-reviewed and research-based

Keywords: 916, all

Transcript Highlights:

• We'll also hear from the Department of Water Resources and the State Water Resources Control Board.
• Those resources are still on the table and are...
• Statewide regulated dams by the Department of Water Resources.
• The issue of whether we allocate all this bond funding is the same issue regarding out-year allocations
• Casey Schimke with the Department of Water Resources.

Keywords: 988, house, all

Transcript Highlights:

• The budget revision and allocation timing align with previous fund allocation and payment timelines.
• The department also needs project management resources and oversight resources to support this.
• Some of these resources are also specific to continuing one component in CalAIM: resources necessary
• Motion number 24. million allocation, which was allocated to the Center for Inherited Blood Disorders
• These allocations... BHSA allocation to offset existing General Fund commitments.

Keywords: 987, senate, all

Summary: The subcommittee first heard May Revision items for child support, child care, and related human services. The Department of Child Support Services described two technical adjustments, which the LAO said raised no concerns. The Department of Social Services then walked through child care proposals, including a shift in how federal and Proposition 64 funding reductions would be absorbed, a 2.01% COLA, disaster-related child care infrastructure grants, an increase in in-contract administrative support costs for alternative payment agencies, reversion of prospective-pay implementation funding after a federal rule change, a one-time allocation to cover the first quarter of Cost of Care Plus payments in the next fiscal year, reappropriation for existing infrastructure grant closeout work, and estimates of unspent child care funds. The department also outlined trailer bill language on a single rate structure, site safety and emergency procedures, CalWORKs child care data sharing, and child care oversight. The LAO recommended that the Legislature seek more justification for shifting reductions from General Child Care to the Alternative Payment Program, noting that CAP reductions affect more slots and that General Child Care has had significant unspent funds. It supported removing prospective-pay funding, but recommended rejecting the administrative cost shift to a percentage-based rate because it could create future General Fund pressure. It also suggested the Legislature review alignment between the disaster grants and the child care infrastructure program. Senators and members pressed the administration on why the budget would reduce child care slots and COLA percentages while the state still has waitlists and unspent funds, and questioned the need for early funding of Cost of Care Plus payments and the move from a flat administrative amount to a percentage. Public commenters, including providers, advocates, county offices, and infrastructure partners, urged full COLA funding, preservation of child care slots, support for prospective pay, and continued investment in child care access and facilities. After a short recess, the committee moved to Part B on health and heard the Department of State Hospitals. DSH presented a May Revision budget of $3.2 billion and described proposals for a central utility plant replacement at Metropolitan State Hospital, an electronic health record implementation, reduced county bed billing authority due to phased-in LPS bed capacity, limited contract exemption authority for online clinical subscriptions, reversion of prior-year unspent operating funds, and a workforce development proposal shifting some costs to Behavioral Health Services Act funds, including support for an additional psychiatric training cohort at Napa. The department also outlined IST-related savings and a trailer bill to remove the sunset on the independent placement panel program.

Transcript Highlights:

• There's a table there that shows all of those statutory allocations.
• So, especially some of those percentage allocations may be less robust.
• Resource Conservation Districts primarily work with private landowners to do critical natural resources
• So first there's in terms of how you allocate it you can allocate it statutorily either on a continuously
• And they're outlined in public resource code 4214.

Keywords: 988, house, all

Transcript Highlights:

• it enables them to determine how to best allocate those resources.
• it enables them to determine how to best allocate those resources.
• Diana Scamia with the Central American Resource Center.
• Diana Scamia with the Central American Resource Center.
• As such, I think we view the per-ADA allocation methodology as the best way to proportionally allocate

Keywords: 988, house, all

Summary: The committee first took up the May Revision update on Proposition 98 and the school rainy-day fund. The Department of Finance said the minimum guarantee rises by $6.4 billion over the Governor’s Budget across the three-year window, with lower average daily attendance projections offsetting some of the revenue gains. Finance also described a reduced $3.9 billion settle-up proposal, increased deposits into the Public School System Stabilization Account, and an ending reserve balance of about $10.3 billion. The LAO said the revenue and LCFF adjustments were reasonable, but urged the Legislature to be cautious about delaying settle-up payments and to consider more budget resiliency, including larger cushions or other tools to protect ongoing programs. Members then questioned the administration and LAO about the size of the settle-up, the rationale for the reserve deposit, declining enrollment, and how lower attendance is creating savings that can be redirected to other school priorities. The LAO said the May Revision’s mix of one-time and ongoing spending was generally reasonable but recommended keeping a strong cushion and considering alternatives such as advance payments or pension-related savings. Questions also focused on how the May Revision’s funding mix affects districts if revenues weaken, and on the treatment of special education, discretionary block grants, and paid family leave costs for LEAs and community colleges. The committee next heard the community colleges portion of the budget. Finance described a higher SCFF COLA, increased apportionment costs, a student support block grant, deferred maintenance, Common Cloud, Calbright, credit for prior learning, and a one-time adult learner demonstration project. The Chancellor’s Office supported the core investments but asked for more funding for enrollment growth, changes to the SCFF growth formula, and a COLA for Student Equity and Achievement. The LAO recommended funding the statutory COLA increase, noted a $52 million current-year apportionment shortfall not yet included in the May Revision, and suggested the Legislature could instead direct some funds to enrollment growth, categorical COLAs, or one-time uses. Members also clarified how COLA and hold-harmless rules apply to different community college districts. Finally, the committee reviewed the proposed state implementation of the federal Workforce Pell program. Finance proposed one-time funding for the Student Aid Commission and Cradle to Career data work, plus trailer bill changes to set up state approval of eligible programs. CSAC said the program is promising but highly complex, with new federal rules just released and significant data, regulatory, and systems work still needed; it said the state will not be ready by July 1 and that ongoing funding will likely be necessary. The LAO agreed that implementation will require careful trailer bill language and noted that ongoing administrative costs remain unresolved. Members asked about other states’ approaches and the practical effect on short-term workforce programs in California.

Transcript Highlights:

• in consideration of the findings for the AB 3264 report to evaluate how to best allocate these resources
• those resources.
• are clean resources.
• are clean resources.
• Unlike some of the other resources that we had, these are grid-scale resources.

Summary: The hearing was an informational budget session on energy agency proposals, with no votes taken. Early discussion focused on Proposition 4 climate bond implementation, including funding for demand-side grid support, offshore wind development, and transmission financing. The Department of Finance said the budget includes allocations for demand-side grid support and offshore wind, but not yet for the $325 million transmission financing piece pending a required study. The Legislative Analyst’s Office urged the Legislature to consider whether to wait on offshore wind funding, whether to keep shifting funds into demand-side grid support, and how to direct future transmission financing. Members also raised concerns about local technical assistance for offshore wind, Salton Sea priorities, and the need for more information before final decisions. The California Energy Commission and CPUC then reviewed the broader energy package. The CEC highlighted the demand-side grid support program’s growth, distributed energy backup assets, long-duration storage, hydrogen grants, and the SIRP clean energy reliability program. CPUC testimony emphasized affordability, wildfire mitigation costs, rooftop solar cost shifts, and efforts to reduce rates while maintaining reliability and clean energy goals. Members questioned CPUC staffing, delays in proceedings, coordination with the CEC and CAISO, and the impact of rate increases on customers. The agencies also discussed the AB 3264 transmission financing study, with CPUC saying work on the study had already begun and was on track for the July 1 deadline. Several trailer bill and implementation items were also discussed. The committee reviewed a proposal to extend the Deaf and Disabled Telecommunications Program surcharge, with members split over whether it should be handled in budget trailer bill language or policy legislation; the administration said the surcharge supports a critical program serving about three-quarters of a million Californians. The committee also heard a CPUC data-sharing proposal to allow nondisclosure agreements for transmission and reliability data, which members generally supported as a technical fix. DWR explained a proposal to clarify language for the Electricity Supply Strategic Reliability Reserve so it can potentially sell three gas-fired units it owns, and the CEC presented a federal transmission grant proposal tied to grid-enhancing technologies and ratepayer cost recovery. Finally, the committee discussed California Lifeline and possible broadband pilot reforms in light of uncertainty around federal Universal Service Fund support, with CPUC saying it is exploring a statewide standalone broadband option for eligible customers.

Transcript Highlights:

• We'll also hear from the Department of Water Resources and State Water Resources Control Board.
• the State Water Resources Control Board.
• The issue as to whether we allocate all this bond funding, same issue about out-year allocations, et
• And we won't have the resources to be able to deal with that.
• Casey Schemke with the Department of Water Resources.

Summary: The Assembly Budget Subcommittee on water and coastal resilience heard an overview of the governor’s Proposition 4 spending plan, with presentations from the Department of Finance, the State Water Resources Control Board, the Department of Water Resources, the Legislative Analyst’s Office, and later coastal agencies. Members discussed the water chapter’s major allocations for drinking water and wastewater, recycled water, tribal water infrastructure, groundwater recharge and SGMA implementation, dam safety, flood protection, integrated regional water management, Salton Sea projects, and water data/stream gauges. The LAO noted that many programs are established and have clear funding processes, but some newer or less-defined programs may warrant more detailed future budget requests and reporting. No votes were taken on the agenda items. Members raised concerns about groundwater subsidence, water deliveries from the Delta, the pace of water storage investments, instream flows, and whether bond dollars were being used to backfill General Fund reductions. Administration witnesses said groundwater recharge spending is being paced because prior years already funded substantial SGMA work, that Delta operations are governed by water quality, salinity, and species requirements, and that Proposition 1 storage projects have moved slowly because they are locally led and require permitting and financing. The Water Board and DWR said they use public needs assessments, annual plans, and existing grant processes to prioritize projects, and Finance said some General Fund programs were shifted to Proposition 4 to help balance the budget. Members also asked for clearer public tracking of bond spending and more concise future reporting. In the coastal resilience portion, the Ocean Protection Council and Coastal Conservancy described Proposition 4 funding for sea level rise adaptation, coastal flood management, habitat restoration, public access, and San Francisco Bay projects, with a multi-year rollout based on project readiness and recent large state investments. The Conservancy said it would use its existing rolling grant process, while OPC said its sea level rise grants would build on existing programs and new technical assistance. The Department of Fish and Wildlife explained its proposed use of bond funds for climate-ready fisheries, hatchery modernization, salmon monitoring, whale- and turtle-safe fishing gear, and a specific hatchery operations request tied to the Friant settlement. The LAO said the coastal chapter’s proposed first-year spending is relatively modest but generally reasonable given staffing and project readiness, while members emphasized oversight, transparency, and coordination across agencies and jurisdictions.

Transcript Highlights:

• A supermajority of that is resource entities.
• For example, IEEE 1547 is a guide for distributed energy resources.
• Back to the cost allocation.
• , batteries; a little over 160,000 are solar resources.
• They were all thermal, long-duration, dispatchable resources.

Keywords: 1185, senate, all

Transcript Highlights:

• We don't have enough resources.
• care, and additional financial resources.
• Starting with the single allocation, as has been noted by other panelists, the single allocation funding
• Because if we don't get the single allocation right, we won't have the staffing and the resources necessary
• I think protecting the allocation, as well as increasing the allocation for state funding, is essential

Keywords: 988, house, all