Transcript Highlights:

• House Bill 4156 is the capital outlay bill for FY 2027.
• The bill appropriates approximately $549 million for building renewal, capital projects, statewide highway
• Madam Chair, members, House Bill 4167 continued session law that sets fiscal year 2027 capital outlay
• It increases the minimum capital investment made by a manufacturing facility for a local government reimbursement

Keywords: 1182, all

Transcript Highlights:

• House Bill 4156 is the capital outlay bill for fiscal year 2027.
• The bill appropriates approximately $549 million for building renewal, capital projects, statewide highway
• Madam Chair, members, House Bill 4167 continues session law that sets FY 2027 capital outlay stabilization
• It increases the minimum capital investment made by a manufacturing facility for a local government reimbursement

Summary: The meeting covered a series of fiscal year 2027 budget and budget-related bills, beginning with the general appropriations and tax package. Staff and the chair highlighted a budget built around about $1.4 billion in tax cuts, a one-time 2.5% agency reduction, major funding for state employee health insurance, corrections, flood and wildfire relief, and other supplemental appropriations. The chair repeatedly urged support for the package, emphasizing the size of the tax cut and noting that the committee’s joint vote had only three no votes out of 28 members. Members then reviewed several smaller budget implementation bills affecting racing and gambling, capital outlay, commerce and defense innovation, corrections, environment and water policy, higher education, human services, K-12 education, county finance, tax administration, state data governance, and state office rent rates. Key provisions included extending or modifying funds and fee structures, transferring surplus or unneeded monies, creating or revising oversight boards and pilot programs, increasing K-12 funding by 2% for inflation, adjusting university retention limits, expanding SNAP and housing-related requirements, and changing tax conformity and credits. Several members asked clarifying questions about specific items such as electric vehicle charging funds, mobile home relocation payments, university funding, and the new health insurance oversight board. The chair also explained the tax bill’s major changes, including conformity to federal tax law, a larger dependent tax credit, changes to deductions, repeal of certain tax credits, veteran property tax relief, limits on data center tax incentives, and provisions affecting manufacturing infrastructure and unemployment insurance administration. The committee discussed the Budget Stabilization Fund, debt repayment, and education rollover balances, with the chair arguing for using surpluses to pay down debt. The final item discussed was a behavioral health bill creating a home and community-based services program for adults determined to be seriously mentally ill, with a stated FY 2027 total fund appropriation of $7.8 million contingent on federal approval and matching funds. The meeting ended with a reminder that floor action would begin the next day at 10 a.m.

Transcript Highlights:

• I think in large scale we've been looking at toll rate increases because of the capital commitments required
• c><00:16:16.160> the toll rate increases because of the toll rate increases because of the capital
• :17.120> required<00:16:18.240> uh<00:16:18.520> on<00:16:18.640> the capital
• commitments required uh on the capital commitments required uh on the turnpike<00:16:19.160> system

Keywords: 1189, house, all

Summary: The Joint Fiscal Committee met on May 15 at 10:00 a.m. and first approved the April 17 minutes. It then took up a consent calendar covering tabs three through seven, with items 089 and 097 removed for separate discussion. The committee approved the remainder of the consent calendar and then adopted item 089, which involved Department of Safety/Homeland Security grant funding for active shooter incident management and school reunification training. Officials said the project is a mandatory Homeland Security grant set-aside, with training for public safety officials and school districts and internal social media used only to promote training schedules; members asked about marketing, outcomes, and how success would be measured. The committee next considered item 097 for the Division of Historical Resources. Agency officials said the request was driven by a decade-long increase in Section 106 and state historic preservation reviews, many tied to disaster-related infrastructure work such as culvert and road repairs, and that the grant would add capacity to handle roughly 1,000 to 1,500 reviews per year. The committee approved the item after brief discussion. Under the regular calendar, the Department of Transportation presented a fuel-related transfer. Members questioned the decline in the highway fund balance, which staff said was being affected by rising expenses, flat-to-moderate revenue, and a rough winter that increased maintenance costs. DOT officials said they were considering toll rate increases and noted the agency pays market wholesale fuel rates; they also discussed prior fuel hedging decisions and said they have authority to hedge again if it makes sense. The committee approved the DOT item, then approved a miscellaneous action item to fill a position at the LBA. Members also asked the chair to remind the Attorney General to appear at a future meeting regarding the YDC claims report. The committee set its next meeting for Friday, June 19 at 11:00 a.m., and adjourned after a brief note of appreciation for recent corrections and changes reported by the liquor commission.

Transcript Highlights:

• Brandon App, representing the National Independent Venue Association as well as the California Capital
• new mechanism to finance wildfire mitigation, including by mobilizing a blend of public and private capital
• The key is mobilizing private capital to the cause.
• SB 1297 creates a mechanism and incentive for these entities to allocate capital towards community wildfire

Summary: The Senate Committee on Business, Professions and Economic Development met as a subcommittee due to the lack of a quorum, then later established quorum and took up a series of bills, mostly sunset extensions for licensing boards. SB 1302, SB 1303, SB 1304, SB 1363, and SB 1368 all dealt with extending board operations to January 1, 2031 and making related technical or policy changes. SB 1303 for the Board of Naturopathic Medicine added a fictitious name permit program and other administrative changes, while SB 1304 for the Respiratory Care Board drew significant testimony over whether licensed vocational nurses should be allowed to perform basic respiratory tasks in skilled nursing facilities and hospitals. SB 1363 updated barbering and cosmetology apprenticeship and licensing rules, and SB 1368 added a retired license category and strengthened continuing education oversight for speech-language pathology, audiology, and hearing aid dispensers. The committee also heard SB 865, which would create a California Music Festival Preservation Grant Program to support large independent multi-day music festivals. Supporters, including Visit Sacramento and festival promoters, said the bill would protect jobs, tourism, hotel nights, and local tax revenue; opponents raised concerns about using state funds during a deficit year and questioned whether profitable events should receive subsidies. The committee also heard SB 1297, which would create regional public-private partnerships and financing tools for wildfire mitigation projects; the author and supporters said it would help address the state’s large wildfire prevention funding gap by leveraging local and private investment, while members asked how the bonds would be repaid and whether the state would bear costs. SB 993, presented on behalf of Senator Ochoa-Bogue, would restore privacy protections for mental health professionals working in correctional and state hospital settings by limiting routine disclosure of identifying information while preserving a complaint process. Supporters described safety threats, stalking, and staffing concerns, and the bill passed unanimously. SB 1304 also passed after committee discussion, with members and the author noting ongoing negotiations over LVN scope and training in higher-acuity settings. SB 865 passed on a 9-1 vote, SB 1297 passed 10-0, and the sunset bills SB 1302, SB 1303, SB 1363, and SB 1368 all advanced unanimously to the Senate Appropriations Committee. SB 1333 was not heard, and SB 1445 was on the consent calendar.

Transcript Highlights:

• morning, Brandon App, representing the National Independent Venue Association as well as the California Capital
• new mechanism to finance wildfire mitigation, including by mobilizing a blend of public and private capital
• The key is mobilizing private capital to the cause.
• SB 1297 creates a mechanism and incentive for these entities to allocate capital towards community wildfire

Keywords: 987, senate, all

Transcript Highlights:

• To capitalize on this, I've grown our social media team, and we now have more in-house capabilities than
• To capitalize on this, I've grown our social media team, and we now have more in-house capabilities than
• And each campaign that we've used with the strategy has only capitalized on itself over time.
• Like who knew that Sierra Vista was the hummingbird capital of the world, or that we have the largest

Keywords: 1182, all

Transcript Highlights:

• Like, so like Hatch, I know that there's other funding... that's being contributed— capital outlay, etc
• Chair, so that's different in the governor's capital. Is that governor's capital? Mr.
• Chair, Representative Monson, we got—there's 5 million identified in capital outputs.

Keywords: 996, all

Transcript Highlights:

• Special language in their act allows a transfer among various capital improvements and construction projects
• Special language in their act allows a transfer among various capital improvements and construction projects
• We knew we're going to have to put some additional capital in the trust fund sooner or later.
• Again, that'll be part of the conversations about preparing the budget and what, if any, additional capital

Summary: The committee met with a quorum, opened with a prayer recognizing the death of Reverend Jesse Jackson, and then worked through a series of appropriation and transfer requests. In Section B, it approved a $273,000 temporary appropriation for the Department of Labor and Licensing. In Section C, it approved two Infrastructure Investment and Jobs Act requests: $280 million for the Department of Transportation and $195 million for the State Broadband Office to support Arkansas BEAD broadband grants, including an extra help position. Members questioned the broadband awards, provider amendments, buildout timelines, accountability, and the status of unawarded locations; the broadband director said no provider had requested speed changes, awards would be monitored with milestone-based payments, and remaining locations would be addressed later as federal guidance is received. The committee also approved transfers in Section D, including $458,000 for the Department of Correction, $25 million for Department of Education programs such as declining enrollment and teacher incentive funding, and $229,000 for Shared Administrative Services project management support. In Section E, the committee considered a $4.7 million budget stabilization trust fund loan for the Office of State Technology to implement ServiceNow and related IT modernization, cybersecurity, and governance tools. Members pressed agency officials on repayment, cost savings, and whether the loan would simply roll over existing costs; officials said repayment would come through agency rates over a five-year period and that the new payment would be lower than the current loan being retired. The committee voted to give favorable advice to the Governor on the loan request. In Section F, the committee reviewed cash fund requests for wage and hour claims, unclaimed property, and a heritage grant; in Section G, it reviewed a $1.1 million federal grant to expand college and career coaching in rural districts; in Section H, it reviewed pay plan and performance fund requests totaling millions across multiple agencies; and in Section I, it reviewed budget manual formatting changes. The latter part of the meeting focused on reports, especially the Medicaid trust fund. DHS and DFA officials reported the fund balance had declined from prior years and was down to about $394 million after seven months, with further decline expected by year-end. Senators and representatives asked about the appropriate reserve level, the impact of pending Medicaid rules and legislation, FMAP changes, and whether additional funding would be needed in the upcoming budget. Officials said projections are updated regularly, more than 10 rule packages remain pending with CMS, and the governor and legislative leaders will discuss additional capital needs during budget development. Members also discussed the importance of balancing Medicaid spending with new federal funding and maintaining flexibility for critical areas such as labor and delivery. The committee then adjourned without further action on the reports.

Transcript Highlights:

• Yes, what we did do is we got another $400,000 into capital outlay.
• Yes, what we did do is we got another $400,000 into capital outlay, so they had a complete budget of
• Representative Luhan, Representative Andrea Romero, Representative me, Joseph, we all put more money through capital
• It was a House memorial and then I put a thing on capital outlay, so we did get $500,000, right?

Bills: HB310, HB323, HM51, HB194

Keywords: museum, cultural affairs, lowrider, Espanola, appropriation, feasibility study, broadband access, low-income, rural areas, Indian nations, affordable internet, employment opportunities, detention centers, immigration, economic development, repurposing facilities, job transition, rural development, housing, affordable housing

Transcript Highlights:

• They pledged over 2 billion dollars of capital investment in the state of Florida.
• If somebody comes in and makes a capital investment and we as taxpayers are now paying incentives associated
• with the capital investment, this covers that new company, that new company under the National Labor
• You must establish a list of the capital projects. It sounds like a great bill. Thank you.

Transcript Highlights:

• That change was made so that social equity applicants could generate the necessary capital to actually
• necessary applicants could generate the necessary applicants could generate the necessary capital
• 22.480> start<00:03:22.720> a<00:03:22.959> business<00:03:23.200> and capital
• to actually start a business and capital to actually start a business and participate<00:03:23.840><

Keywords: 1183, house

Transcript Highlights:

• Martin, Northrop Grumman, and a myriad of federal and Department of Defense contractors for human capital
• Northrop Grumman and a myriad of federal and Department of Defense contractors for human capital.
• fit that, you know, the definition that was changed because there are going to be, you know, your capital
• is: it's a slightly rebranded version of the failed New Markets Development Program that Advantage Capital

Summary: The Finance and Tax Committee considered several tax-related measures. SB 674, allowing county property appraisers to budget for and pay hiring or retention bonuses with Department of Revenue approval, was supported by property appraisers and reported favorably. C.S. for SJR 318, as amended, would create a tangible personal property exemption for agricultural land used in agricultural production or agritourism; the amendment clarified the property’s location and allowed the Legislature to define conditions, and the resolution was reported favorably with support from Farm Bureau and the Florida Chamber. The committee also advanced C.S. for SB 1664, as amended, which requires locally approved discretionary taxes to be reauthorized by voters when they expire and sets rules for taxes tied to revenue bonds. Local government and tourism-related groups raised concerns about impacts on tourist development taxes, beach funding, transportation surtaxes, and long-term planning, while supporters argued voters should periodically reaffirm taxes; the bill was reported favorably. C.S. for SJR 1510 and its implementing bill, SB 1512, were both amended to sharply narrow a proposed long-term lease property tax exemption to one qualifying property and to single-family homes, mobile homes, and condominiums; counties and cities opposed the measures as tax shifts, but both were reported favorably. The committee then took up SPB 7034, the Senate tax package, which includes permanent sales tax exemptions for certain clothing and bullion, multiple tax holidays, a temporary motor vehicle fee reduction, a property tax study, corporate and insurance tax credit changes, a communications services tax freeze, and other tax provisions, with staff estimating $2.1 billion in total revenue reduction. Testimony included support for studying property taxes and strong opposition to the firearm and ammunition tax holiday from students and advocacy groups, who argued it was unsafe and inappropriate; others urged adding combined reporting or removing tourist development tax changes. After debate, the committee reported the package favorably and also approved a motion to submit it as a committee bill. The meeting ended after Senator Bernard recorded an affirmative vote on tab 5 and the committee adjourned.

Transcript Highlights:

• names for conservation corps, so it's consistent throughout that article and then clarifies on the capital
• The second one relates to arts and cultural heritage funds and capital construction.
• It provides that these funds can't be used for capital construction or new buildings, except when it's
• state with these funds, and we all, you know, hopefully we have a tour or something, or if you're on capital

Bills: HF2563

Keywords: HF2563, legacy finance bill, Legacy Amendment, outdoor heritage fund, clean water fund, parks and trails fund, arts and cultural heritage fund, Lessard-Sams Outdoor Heritage Council, Clean Water Council, Minnesota legacy funds, habitat conservation, prairie restoration, wetland restoration, forest conservation, riparian buffers, water quality, groundwater protection, drinking water, septic systems, watershed planning

Transcript Highlights:

• We are leading in deploying clean energy in Minnesota, so let's capitalize on that to create an energy
• Minnesota in deploying clean energy in Minnesota so<00:01:14.520> let's<00:01:15.000> capitalize
• > that<00:01:16.080> to<00:01:16.400> create<00:01:16.759> an so let's capitalize
• on that to create an so let's capitalize on that to create an energy<00:01:17.520> Innovation

Keywords: 1183, house

Transcript Highlights:

• says the Met Council might expend any funds for project development activities on light rail transit capital
• If the Met Council wanted to do a capital improvement project on the existing lines that we have now,
• Prohibit any Met Council expenditures on LRT capital costs except for direct appropriations in law and
• Workforce, Labor, and Economic Development Finance and Policy and be re-referred to the Committee on Capital

Transcript Highlights:

• I'm Mark Motoya, a senior policy analyst, and I cover capital infrastructure and governance.
• districts right now, but it will have a lot of information for you in terms of enrollment, achievement, capital
• Our office is in the annex, the Capital North Annex, down by the fountain.
• The fourth item is Senate Bill 82, public school capital outlay changes, sponsored by Chairman Sahls,

Transcript Highlights:

• By tying its advocacy and political capital It is a region-wide air quality crisis.
• By tying its advocacy and political capital to the USMCA framework, California can elevate what has long
• This targeted incentive will reduce upfront capital costs for infrastructure developers... ...will reduce
• This is about saving taxpayers money, and we know we need to bring in private capital.
• And the only way we're going to attract that private capital is by allowing for advanced engineering,

Summary: The committee heard presentations on several energy, environmental, and consumer protection bills while operating at times without a quorum. Senator McNerney presented SB 925, which would direct the California Energy Commission to develop a statewide roadmap for fusion energy, and SB 1350, which would expand the use of green hydrogen in the power sector by allowing renewable portfolio standard credit for power plants using hydrogen. Supporters said both bills would help California maintain leadership in emerging clean-energy industries, attract investment, and create jobs. Opponents of SB 1350 raised concerns about greenwashing, resource shuffling, and increased NOx emissions from hydrogen combustion, while supporters said committee amendments added guardrails against those outcomes. Senator Ashby presented SB 1010, a manufacturer-funded extended producer responsibility program for refrigerants in appliances; supporters said it would reduce greenhouse gas emissions and improve recovery, while opponents argued existing laws already regulate refrigerants and that the bill could raise costs and disrupt recycling markets. Senator Grayson presented SB 1145 to streamline CEQA and federal reuse procedures for qualifying projects in the Concord Reuse Project Area, which supporters said would help deliver long-planned housing, jobs, and open space, while one housing group sought stronger affordable-housing guarantees. Senator Cabaldon presented SB 1341, which would give CalRecycle authority to reduce processing fees for wine and spirits bag-in-a-box containers when fee collections exceed program needs; supporters said the current fee increase was abrupt and excessive, while opponents warned against giving the agency too much discretion. Senator Padilla presented SGR 13, urging the U.S. to secure enforceable commitments to eliminate transboundary sewage pollution in the Tijuana and New River watersheds during the 2026 USMCA review, and SB 1033, which would require testing and disclosure of heavy metals in protein products; SGR 13 drew strong support from border and environmental justice advocates, while SB 1033 drew support from consumer and health groups and opposition from industry groups concerned about labeling burdens and scope. Senator Caballero presented SB 1183, requiring a state study of the environmental, land-use, and economic impacts of industrial solar in the Central Valley; farm and land-use advocates supported the bill, while solar industry groups opposed unless amended, saying it should better reflect solar’s benefits and existing state analysis. After testimony, the committee took roll and adopted several measures on a 4-0 or 3-0 basis, with bills including SJR 13, SB 925, SB 1350, SB 1145, SB 1341, SB 1033, and SB 1010 advanced on call to Appropriations or, in the case of SB 1010, already voted with a 3-1 result before being held on call.

Transcript Highlights:

• Message number 290, House Bill 111, state funded capital construction. Suspend further reading.
• 00:50:50.000> 111,<00:50:51.200> State<00:50:51.520> Funded<00:50:52.079> Capital
• H House Bill 111, State Funded Capital H House Bill 111, State Funded Capital Construction.
• It's in Capital Extension Room E5. >> Thank you, Mr. President.
• The select water committee will meet tomorrow upon noon recess in Capital Extension Room E5 to review

Keywords: 916, all

Transcript Highlights:

• I'm the managing director of Capital Stage Company here in Sacramento, California.
• This grant will be a lifeline for Capital Stage. This is an existential moment for our company.
• I'm the managing director of Capital Stage Company here in Sacramento, California.
• This grant will be a lifeline for Capital Stage. This is an existential moment for our company.
• In the past 10 years, capital staged paid over $7 million, of California's GDP.

Summary: The subcommittee first heard an informational presentation on the May Revision’s proposed reorganization of the Business, Consumer Services and Housing Agency into separate housing-focused and consumer/business-focused entities. Administration officials said the split would improve oversight, streamline decision-making, and create a dedicated California Housing and Homelessness Agency with a new housing development and finance committee. The Department of Finance said funding was needed in 2025-26 to begin implementation, while the LAO recommended rejecting the proposal without prejudice because the Little Hoover Commission review was still pending and the plan would require ongoing General Fund costs. Members raised concerns about the timing, the lack of alignment with the budget process, and whether the reorganization would improve accountability for homelessness spending; several public witnesses supported the concept but stressed it could not substitute for new housing and homelessness dollars. The committee then took up the Department of Veterans Affairs. CalVet requested funding for phase three of its electronic health care record project and a trailer bill to preserve authority for federal background checks, but the May Revision withdrew requests for deferred maintenance and additional administrative support. The LAO noted deferred maintenance can prevent larger future costs, and the chair criticized the withdrawal of less than $1 million for veterans’ homes as short-sighted given existing repair needs. No vote was taken. Next, the Department of Housing and Community Development presented its budget. HCD said the May Revision provides no new affordable housing or homelessness funding, but does retain existing rounds of funding and proposes a $31.7 million reversion from undersubscribed housing programs. Members from both parties expressed concern about zeroing out ongoing housing and homelessness investments, especially for LIHTC, the Multifamily Housing Program, and HAP. HCD also defended its homelessness accountability and compliance work, saying the unit includes about 30 program staff and six attorneys, with three additional attorneys requested mainly to handle public records and litigation workload. Public commenters largely opposed the lack of new funding and urged continued support for housing and homelessness programs, while some supported the reorganization and accountability efforts. Finally, the committee heard Go-Biz proposals. The administration requested authority to increase funding for a federal trade program match if needed, plus reappropriations for administrative funds tied to the Containerized Ports Interoperability Grant Program, zero-emission vehicle operations, and the Women’s Business Center Enhancement Program. It also proposed withdrawing the Cal Competes grant request and reverting remaining funds from the Performing Arts Equitable Payroll Fund. The LAO said Cal Competes is generally effective but could be cut as a budget solution, while warning that the performing arts fund was close to awards and should be considered carefully. Members objected to pulling back committed funds for performing arts organizations and questioned why the state would withdraw support after applications had already been submitted.

Transcript Highlights:

• We develop PACE capitation rates in accordance with actuarial standards, leveraging actual costs and
• And then on the PACE capitation payments, what's the expected impact and how are you looking at that?
• But it's more of a capitated—is it more capitated? Is it fee-for-service?
• So whether they are capitated—some providers receive a capitation payment—regardless of whether they're
• Chris Strong with Capital ... Thank you, Chair.

Summary: The Assembly Budget Subcommittee on Health held the first of several hearings on the Governor’s May Revision for health care, with opening remarks focused on the state’s projected $12 billion deficit, looming federal Medicaid changes, and the potential impact on Medi-Cal, public health, reproductive health, and safety-net providers. Several members criticized the proposal as balancing the budget on vulnerable Californians, while others defended the need for cost containment and questioned the administration’s assumptions. The chair set ground rules for respectful, focused questioning and outlined three topics: the Medi-Cal proposals, Proposition 35, and Proposition 56. DHCS Director Michelle Baas presented the May Revision’s Medi-Cal package, saying the department’s budget totals $200.6 billion overall, including $45.2 billion General Fund, and that the proposals are intended to address rising caseloads, pharmacy costs, and managed care spending. She described proposed changes for adults with unsatisfactory immigration status, including a freeze on new full-scope enrollment for those 19 and older, $100 monthly premiums beginning in 2027, elimination of adult dental and long-term care coverage, removal of PPS/RAP payments to FQHCs and rural health clinics for that population, and a pharmacy rebate aggregator. Other proposals included eliminating certain OTC drug classes, removing GLP-1 coverage for weight loss, prior authorization and step therapy changes, reinstating the Medi-Cal asset test, eliminating acupuncture as an optional benefit, allowing utilization management for hospice, raising the managed care minimum medical loss ratio to 90%, reducing PACE capitation rates toward the midpoint of the actuarial range, eliminating the skilled nursing facility workforce and quality incentive program, and suspending the SNF backup power requirement. The LAO said the revised Medi-Cal spending estimate is about $2.5 billion higher than the Governor’s Budget in the budget year, and that the increase appears driven more by higher per-enrollee costs than by caseload alone. The LAO said the budget solutions are concentrated in a few areas, are largely ongoing, and should be considered in light of federal uncertainty, but suggested the Legislature could explore alternatives such as more targeted income thresholds for the undocumented expansion and simpler asset-test rules. Department of Finance officials said the proposals are difficult but necessary to address a third consecutive deficit and rising Medi-Cal costs. Members then pressed the administration on the methodology and impacts of the proposals, especially the enrollment freeze, premiums, asset test, hospice controls, PACE reductions, and the elimination of benefits and provider payments. No votes or formal actions were taken at this hearing.