Transcript Highlights:

• The 2024 actuals show a little over 2.8 billion dollars in revenue, and then the estimated expenditures
• yesterday, and he's been cautioning us for the last several sessions about the gravy train of the extra revenue
• When we went back and calculated based on individuals and their individual IAP scores, the rate increased
• Because right now, we have no additional streams or new net revenue coming in.

Transcript Highlights:

• But when they went to have the calculation for reimbursement for that transportation block grant, the
• department was calculating it based on that little itty-bitty grant they had back in 2008, saying that
• work with the SDE staff, transportation staff, to resolve this issue, feeling that the way the calculation
• So the career ladder is not a salary schedule, but is calculated based on averages.
• So the career ladder is not a salary schedule, but is calculated based on averages.

Committee: Senate Education

Transcript Highlights:

• Your assumptions and calculations help determine how much General Fund dollars the state must spend to
• our office, or the CalPERS office, performs an actuarial evaluation, and part of that process, we calculate
• So say we take all our active members, and then we calculate their expected working lifetime using our
• we look at the data, we look at the assets... ...we look at where we expect it to be, and then we calculate
• How did that work out... ...and we calculate all that, and then we factor in those variances into the

Summary: The Assembly Committee on Public Employment and Retirement and the Senate Committee on Labor, Public Employment, and Retirement held a joint hearing required by law to receive an independent report from the California Actuarial Advisory Panel on CalPERS. Chair McKinnor and Senator Smallwood-Cuevas opened by emphasizing CalPERS’ importance to retirement security for public employees and to the state budget. Scott Tarando, CalPERS Chief Actuary and a CAP member, presented on the statutory disclosure requirements in Government Code Section 2029, including the use of CalPERS’ 6.8% discount rate and the need to show how changes in investment return assumptions and amortization periods affect liabilities, contribution rates, and budgets. Tarando explained that lower investment returns increase contribution rates and unfunded liabilities, while higher returns reduce them. He also described CalPERS’ 20-year amortization period for new unfunded liabilities, comparing it to a mortgage and noting that shorter periods raise near-term costs but reduce long-term interest costs. He said the CAP has recommended a 15- to 20-year range and that CalPERS’ current approach is intended to smooth volatility for a large, ongoing plan. Members asked about the meaning of average service lifetime, the timing of valuation data, whether more current data could be used, the effect of AI and workforce changes on assumptions, and whether contribution changes affect retiree benefits. Tarando said retiree benefits do not change with annual valuations, that CalPERS uses audited year-end data because it is the most reliable basis for rates, and that AI impacts are being monitored but are too early to quantify. Committee members also discussed CalPERS’ funded status, with Tarando saying it had improved from the mid-60% range about 10 years ago to around 79% at fiscal year-end and over 80% more recently, reducing pressure on employers and the state budget. Michael Cohen, CalPERS’ investment operations chief, said CalPERS had complied with federal information requests and that its annual audits are publicly available, but no formal federal review had been released. In public comment, a representative of the California State Association of Counties praised the improved funded status and the role of PEPRA reforms. The chairs closed by reaffirming CalPERS’ fiduciary duty and the goal of protecting retirement security for public workers; no votes were taken.

Transcript Highlights:

• Your assumptions and calculations help determine how much General Fund dollars the state must spend to
• our office, or the CalPERS office, performs an actuarial evaluation, and part of that process we calculate
• We look at, and then we calculate their expected working lifetime using our assumed assumptions in terms
• know, we look at the data, we look at the assets, we look at where we expect it to be, and then we calculate
• And we calculate all that, and then we factor in those variances into the contribution rates that the

Transcript Highlights:

• millions of dollars in lost wages, millions in lost business productivity, millions in lost tax revenues
• She says this expansion would generate approximately $8,000 for her in monthly revenue for her business
• </c><01:12:29.280><c> for</c> $8,000 for her in monthly revenue for $8,000 for her in monthly revenue
• I'm here today to sponsor this bill that would change the way we calculate the default budget here in
• </c><01:47:33.720><c> the</c> would change the way we calculate the would change the way we calculate

Committee: Senate Election Law and Municipal Affairs

Transcript Highlights:

• Generate that self-sustaining revenue so we can keep this place and better this place.
• Develop the revenue... ...revitalizing the lodge and island facilities.
• Tommy mentioned some of the revenue possibilities.
• And also, do y'all have oil and gas revenue royalties on the areas?
• And as far as the oil and gas revenue, we do have some revenue coming, but it's pretty minimal with the

Summary: The board met on January 21, 2026, approved the agenda and minutes, and received a CPRA implementation update from Executive Director Michael Hare. Hare reported about 103 active projects, with work focused on completing existing projects and moving more into construction. He highlighted several projects, including Port Fourchon shoreline protection, Northwest Little Lake marsh creation, Sugar Ridge Pump Station, a large RESTORE-funded marsh creation project, Schooner Bayou saltwater barrier rehabilitation, Cain Bayou marsh creation redesign, West Shore river reintroduction work, Morganza to the Gulf reaches, NERDA Raccoon Island restoration, and Chenier-O-Tig ridge restoration. He also reviewed recreation and partnership projects such as Bayou Pigeon and Destrehan boat launches, Grand Bayou Marsh Creation, Highway 1 terracing, and four Louisiana projects funded through the National Coastal Resilience Fund. Hare noted the annual plan public meetings were complete and the comment period remained open through February 17, 2026. Board members asked about the Rockefeller shoreline project, and Hare said the Corps and state agencies were working through geotechnical and environmental issues and that leadership remained committed to moving it forward. The board then heard a joint presentation from CPRA and the Louisiana Department of Wildlife and Fisheries on the White Lake Conservation Area and Management Plan. Officials described White Lake as a 72,000-acre property in Vermilion Parish with major habitat, recreation, and revenue functions, but said aging infrastructure, levee erosion, limited water control structures, and maintenance costs made a master plan necessary. The plan, finalized in October 2025, recommends coastal restoration projects, lodge and facility revitalization using private dollars, revenue-generation improvements, and long-term partnerships. Proposed work includes GIWW shoreline protection, Unit 2/Caddo levee stabilization, and north shoreline protection, with about $30 million already secured for engineering and construction and total needs estimated at roughly $120 million to $130 million. Officials also discussed broader habitat management, conservation incentives for private landowners, possible land acquisition in southwest Louisiana, and coordination with federal partners and other state agencies. Members praised the White Lake effort as a model of interagency collaboration and emphasized its importance for waterfowl habitat, public access, and tourism. Questions focused on funding sources, oil and gas revenue, and whether other agencies such as economic development and tourism should be involved. Several members also urged the state to apply similar management approaches to other refuges, including Sabine, Cameron Prairie, and Lacassine, where they said federal management has lagged. The discussion underscored a broader shift toward landscape-scale habitat management and public recreation investment. The final major presentation covered CPRA’s marsh creation design guidelines and related construction logistics. Staff explained that marsh creation makes up a large share of the coastal master plan and that the agency is updating its 2017 design guidelines after nearly a decade of use. The updates will address survey standards, geotechnical methods, dredge production estimates, construction monitoring, and oil and gas infrastructure conflicts. A second presentation reviewed safety, access, and logistics for marine construction, including equipment access routes, pipeline identification and coordination, cultural resources, private landowners, oyster resources, and permitting. Board members asked about reducing geotechnical costs, improving land-rights coordination, considering uncontained marsh creation where appropriate, and managing pipeline impacts; staff said they would consider those suggestions as part of the guideline updates.

Transcript Highlights:

• We calculate the cost of completing all of these ongoing projects that have been approved but not yet
• That lease then goes back to Citizens, who then takes the revenues that we earn over time through our
• then lease back the revenues we earned in FERC rates for those facilities to pay off the revenue bonds
• That means less revenues for the municipalities.
• That means less revenues for the municipalities.

Summary: The committee first heard AB 13, which would restructure the CPUC to increase legislative oversight, add legislative liaisons, require more detailed and timely reporting on rate-setting decisions, and add a public advocate member. The author and supporters argued the bill would improve transparency, accountability, and geographic diversity in CPUC decision-making amid rising utility rates. Witnesses from TURN, San Joaquin County, SDG&E, and former CPUC Commissioner Loretta Lynch offered support or support-in-principle, while no opposition testimony was presented. Members generally praised the bill’s transparency goals, and AB 13 passed 10-0 to Appropriations, with the roll left open for absent members. The committee then adopted the 2025-2026 committee rules and approved three consent items: AB 61, AB 365, and AB 406. The next bill, AB 99, would cap investor-owned utility rate increases above inflation except for specified costs such as safety, modernization, and fuel/commodity costs. The author and supporters, including a representative of the California Senior Legislature, said the bill was needed to protect ratepayers, especially seniors and low-income customers, from repeated rate hikes. Opposition came from utility labor, utilities, the Chamber of Commerce, and others, who argued the bill was too simplistic, could suppress labor costs, and did not account for major cost drivers such as wildfire mitigation, mandates, and net metering. Several members supported moving the bill forward as a starting point on affordability, while others criticized it as overly blunt. AB 99 passed 11-0 to Appropriations, with the roll left open. The hearing then shifted to an informational panel on strategies to reduce California transmission costs. A Public Advocates Office staffer described a growing backlog of approved-but-unbuilt transmission projects, rising transmission access charges, and long project timelines driven largely by utility pre-application and construction periods. Panelists from Net Zero California and consulting firms presented research suggesting that public financing or public-private partnership lease models could reduce transmission costs by lowering financing, tax, and capital costs, with estimated savings of up to 57% and as much as $123 billion over 40 years. PG&E’s representative said the utility is already pursuing federal loan guarantees, grants, and a public-private partnership with Citizens Energy, but warned that state ownership could create tax, wildfire-liability, and governance risks. Members asked about the CPUC’s role, the causes of delays, and whether public financing could complement existing competitive solicitation processes.

Transcript Highlights:

• >> Um, I can calculate that and get back to you on that one.
• >> Um, I can calculate that and get back to you on that one. >> Is that available on the website?
• >> Um, I can calculate that and get back to you on that one. >> Is that available on the website?
• If you could still calculate that and let this committee know, I'd appreciate it. >> Thank you, Mr.
• If you could still calculate that and let this committee know, I'd appreciate it. >> Thank you, Mr.

Summary: The committee opened with roll call, welcomed a new member, approved the July meeting minutes, and then took up testimony on the statewide emergency responder voice system, also described as the state police radio system replacement project. John Hicks, secretary of the governor’s executive cabinet and state budget director, testified that the project is unusually complex because it combines multiple IT replacements, land acquisition, and tower construction. He said the existing system dates to the early 1970s and that the administration is treating the project as a priority, with work proceeding in phases and weekly coordination among the Justice Cabinet, Kentucky State Police, and Finance and Administration Cabinet. Hicks said the project has already spent about $110 million, with nearly 1,900 portable radios acquired, microwave replacement completed at 56 sites and underway at 76 more, and routers, switches, and network upgrades addressed. He explained that because the State Police are not set up to handle real property work, the administration brought in outside real property consulting vendors through an RFP, and three vendors are now qualified to help identify and negotiate sites. He said the goal is to speed up land acquisition and tower construction while the State Police continue the technology work, and he emphasized that the project is intended to close coverage gaps for state police first and later benefit local governments and other first responders. Members of the committee expressed concern about the project’s cost and pace. Representative Petri noted that about $218.8 million has been authorized since 2018 and questioned whether the project could stretch into 2030 or later, asking what more the General Assembly could do to help. Representative Blandon also raised concerns about the long timeline and the risk of the project becoming another costly, delayed infrastructure effort, while asking when the vendor RFP was completed and whether any sites had been acquired since then. Representative Sharp asked whether there was a detailed plan and timeline, and Hicks responded that the technology side is well defined but the property acquisition side must proceed site by site because each location depends on ownership, access, power, and other factors. Hicks said the west-to-east phasing has been a smart approach and that the executive branch should improve performance to beat the current timeline expectations.

Transcript Highlights:

• </c><00:36:22.200><c> for</c><00:36:22.320><c> the</c> at the way the calculation for the at the way
• the calculation for the experience<00:36:22.920><c> rating</c><00:36:23.200><c> is</c><00:36:23.400><
• It is special revenue fund.
• It is um<00:43:09.680><c> special</c><00:43:10.080><c> revenue</c><00:43:10.440><c> fund.
• The agency does not have the ability to access any of that revenue without a direct appropriation.

Bills: HF3489 , HF3393 , HF3785 , SF856 , HF4006 , HF4615 , HF3919 , HF4591 , HF3682 , HF4240

Committee: House Ways and Means

Transcript Highlights:

• be eligible for a higher state max rate for child care assistance, which may positively impact the revenue
• North Dakota's current ratio, group size, and point system, and discussed ways to simplify the calculations
• It easier to calculate.
• When points are calculated for mixed-age groups, the first adult and each adult thereafter should be
• Is that what you're assuming on some calculations if you take $400,000 a month?

Summary: The committee first heard an update on North Dakota’s Interagency Council on Homelessness and Continuum of Care funding. Jennifer Henderson of the North Dakota Housing Finance Agency reported that homelessness remains driven by tight housing markets, low incomes, rising rents, and barriers to rental assistance, public benefits, and disability determinations. She said the state’s one-time North Dakota Homeless Grant is serving all regions but reaches far fewer households than the former Rent Help program, and that aging homelessness, shelter staffing shortages, and limited affordable units are growing concerns. Members discussed the need for more housing supply, better coordination with Health and Human Services, landlord engagement, reentry housing, and possible continued one-time funding for the $10 million Homeless Grant and $25 million Housing Incentive Fund. Henderson also warned that federal Continuum of Care funding is uncertain, with HUD expected to issue a new notice June 1 and possible shifts away from permanent supportive housing toward transitional housing and other models. The committee then took testimony on accessibility of government services for people who are blind, visually impaired, deaf, or hard of hearing. Paul Olson of North Dakota Vision Services School for the Blind described the school’s services for infants, children, and adults, including screenings, mobility training, assistive technology, and outreach across the state. He said the agency works closely with Vocational Rehabilitation and is also involved in improving website and document accessibility, especially for PDF materials. Public testimony highlighted barriers such as inaccessible CAPTCHA systems, online forms, driver’s license requirements on job applications, and limited transportation in rural areas. A deaf resident urged broader use of video remote interpreting and video relay services, along with training so people know how to use them effectively. Finally, Kay Larson presented the final report on the child care provider licensing study. The report recommended streamlining North Dakota’s child care licensing structure into three provider types plus a preschool designation, while preserving health and safety standards and maintaining eligibility for child care assistance. The committee discussed simplifying training and qualification rules, revising ratio and group-size requirements, and adjusting age bands for infants and toddlers. The report also noted that some changes would require statutory amendments and later administrative rule changes, with a transition period likely extending through 2029. No formal votes were taken in the transcript, but the committee accepted the updates and scheduled follow-up presentations for a later meeting.

Transcript Highlights:

• There is just absolutely no way to know, and it doesn't make any sense whatsoever to try to calculate
• calculators?
• Sometimes the other calculator is something else. And I could just go on and on.
• Sometimes the other calculator is something else. And I could just go on and on.
• CRA outreach could have resulted in millions of dollars of lost revenue to the county.

Summary: The committee first took up SB 1272 on guardianship, which would limit a guardian’s ability to isolate an adult ward from family and require notice to family or other named persons about major events such as a ward’s death or medical relocation. Senator Jones said the bill was intended to curb abuse by bad actors while not affecting good-faith guardians. Fortuna Smuggler and Phyllis Smith spoke in support, describing the need for family notification and closure. The bill passed unanimously, 8-0, and was reported favorably. The committee then considered CS/SB 1284 on wrongful death for an unborn child. Senator Graal explained that the bill would expand Florida’s Wrongful Death Act to allow parents to recover economic and non-economic damages for the death of an unborn child. An amendment was adopted to define “unborn child” as a member of the species Homo sapiens carried in the womb and to state that the act does not authorize a wrongful death action against the mother or a health care provider acting within the applicable standard of care. The amendment drew questions about abortion, medical emergencies, and whether fathers could sue; the sponsor said the bill was not intended to create claims against mothers or lawful medical care. Public testimony was sharply divided, with supporters arguing it gives families parity and accountability, and opponents warning it could be used to target abortion care, increase malpractice pressure, and worsen physician shortages. The committee approved the bill as amended by a 6-4 vote. Finally, the committee heard a strike-all amendment to SB 1288 on parental rights. The amendment would strengthen parental consent requirements for minors’ medical care, with exceptions for emergencies, court orders, certain legal categories of minors, and other existing statutory exceptions. It also would require parental consent for treatment related to STD screening, give parents more control over school or health surveys, and address use of biofeedback devices. Supporters said the measure restores parents’ authority and protects children from inappropriate questioning or treatment, while opponents argued it could block needed care for minors in unsafe homes, reduce access to STI treatment and mental health services, and create unintended consequences. The amendment was adopted, and the committee continued hearing testimony on the bill.

Transcript Highlights:

• is a risk that, you know, members knowing their situation might make better decisions than our calculated
• Might make better decisions than our calculated reductions would qualify for.
• So if it is discovered that there has been an underpayment, then there will be interest calculated.
• It kind of defines how it'll be calculated. It'll be paid back immediately.
• provide relative to the authority of the Board of Trustees to grant an increase, to provide for the calculation

Committee: House Retirement

Summary: The Retirement Committee met on March 19, 2026, adopted prior meeting minutes without objection, and then heard a series of retirement-system bills. Representative Wiley presented three bills for the Louisiana Sheriffs’ Pension and Relief Fund: HB 33 would expand the back deferred retirement option program from four to five years for members with 35 years of service; HB 34 would allow certain members to retire at age 50 with an actuarially reduced benefit instead of waiting until 55; and HB 35 would allow up to 3% of employer contributions to be credited to the fund’s deposit account to help manage future costs and benefit increases. Witnesses for the sheriffs’ fund described its strong financial condition, including assets over $6 billion and a funded ratio above 90%, and said the bills were intended to reward long service, aid recruitment and retention, and provide flexibility in managing the fund. All three measures were reported favorably without objection. Representative Baralt presented HB 15 and HB 47 for the Assessor’s Retirement Fund. HB 15 sets procedures for correcting administrative errors in benefit payments, including interest on underpayments and repayment terms for overpayments. HB 47 revises the fund’s cost-of-living increase rules and funding deposit account provisions; Baralt noted the system has no unfunded liability and that the changes are tied to pre-funded COLAs. Both bills were reported favorably without objection. Representative Ilg presented HB 17, HB 18, and HB 19 for the District Attorneys’ Retirement System. HB 17 adds the Louisiana District Attorneys Association to the definition of employer and addresses reemployed retirees, with amendments removing a local funding restriction, requiring reporting of reemployed retirees, and adding a sunset in 2031. HB 18 staggers trustee elections so no more than two board seats are up in a year, and HB 19 removes references to the State Medical Disability Board because the system now works directly with physicians. All three bills were amended where applicable and then reported favorably. Representative Bacala presented HB 8, HB 48, and HB 22. HB 8 allows legislative staff designated by the committee to attend executive sessions of state and statewide retirement boards for a term-based authorization. HB 48 allows Louisiana Supreme Court court criers commissioned with the Orleans Parish Sheriff’s Office to participate in the Sheriffs’ Pension and Relief Fund, with amendments allowing an election between systems and clarifying employer responsibilities. HB 22 revises the Clerks of Court Retirement and Relief Fund’s COLA rules, raising the maximum COLA to 3% under certain funding conditions and tying increases to the fund’s deposit account; a technical amendment adjusted the timing language. All three bills were adopted favorably, with amendments where offered.

Transcript Highlights:

• of the fines to our own calculations based on state law and Cal/OSHA's policies.
• of the fines to our own calculations based on state law and Cal/OSHA's policies.
• Our audit also identified instances where Cal/OSHA staff made questionable decisions when calculating
• the employer's fine versus our own calculation.
• . to reduce some of the penalty calculations.

Summary: The hearing focused on a state audit of Cal/OSHA titled “The Division of Occupational Safety and Health: Process Deficiencies and Staffing Shortages Limit Its Ability to Protect Workers.” Committee leaders and members described the audit as a response to serious workplace tragedies and argued that California’s strong worker protections are undermined when enforcement is inconsistent. Chair Ortega and others emphasized that the issue is not only staffing, but also structural problems in how complaints, inspections, citations, and penalties are handled. State Auditor Grant Parks testified that the audit found major weaknesses in Cal/OSHA’s operations during a five-year review period, including a 32% vacancy rate in 2023-24, heavy reliance on employer self-investigation letters for complaints, late inspections, incomplete case files, outdated policies, and weak documentation for fine calculations and reductions. He said Cal/OSHA often lacked evidence to justify why it did not inspect certain complaints or why it reduced penalties, and that many files did not show proof that employers corrected hazards. He also noted that criminal referrals were rare and that the agency’s paper-based system made oversight difficult. Cal/OSHA and the Department of Industrial Relations responded that they accept the audit’s findings and are already taking corrective steps. Director Jennifer Osborne and Chief Deborah Lee said the division has hired more staff, reduced vacancies to about 12% through recruitment and position eliminations, hired a policy writer, updated or is updating several policies, and is developing a new data management system expected to go live in late 2026 or early 2027. They said serious hazards will be directed to on-site inspections, letter investigations will be limited to non-serious complaints, and internal audits and training will be used to improve consistency and accountability. Members pressed the department on whether these changes will be enough, how fines are set and reduced, and whether the agency is doing enough to protect workers and hold employers accountable.

Transcript Highlights:

• And I'm curious: what is the projected net loss in our state and local tax revenue, particularly when
• Tax revenue loss as a result of these enforcement actions.
• Unfortunately, we don't have any data projecting what we expect to be the tax revenue loss.
• “Share each of you, just to say, in a snapshot of what is coming: I heard the call for revenue.
• What does that comprise in terms of your overall revenue in your sector?

Committee: Senate Labor, Public Employment and Retirement

Summary: The Senate Labor and Public Employment Committee held an oversight hearing on federal policy impacts on California’s labor market. In opening remarks, the chair argued that federal actions, including immigration enforcement, tariffs, and cuts to safety-net programs, are harming workers, employers, and communities, and said the committee wanted to document impacts and identify state responses. The first panel featured economist Enrique Lopez Lira of UC Berkeley, who described slow job growth, wage pressures, high housing and care costs, and the large share of California workers in low-wage jobs. He said federal cuts to Medi-Cal and SNAP/CalFresh and increased immigration enforcement would worsen insecurity, especially in health care, retail, hospitality, agriculture, and care work. The chair asked about recession indicators, middle-wage stagnation, and which sectors rely most on safety-net programs, and Lopez Lira said worker organizing and unions were a source of hope. A second panel focused on federal immigration enforcement. UC Merced’s Edward Orozco Flores presented research finding that private-sector employment in enforcement-targeted states fell during escalated enforcement periods, with California experiencing unprecedented declines in 2025. He urged policymakers to consider wage-replacement or stimulus-style support for affected workers, including excluded workers who cannot access unemployment insurance. Shannon Sedgwick of the Los Angeles County Economic Development Corporation said undocumented workers are deeply embedded in the county economy, generating substantial economic activity and supporting over a million jobs. She reported that intensified enforcement in Los Angeles County was associated with business disruptions, reduced sales and customer traffic, workforce instability, lower transit ridership in vulnerable areas, and losses from the downtown curfew. Committee members asked about impacts on small businesses, tax revenue, and recovery, and witnesses pointed to local resiliency funds, business toolkits, and know-your-rights efforts as partial responses. The hearing then heard from worker representatives. Flore Melendres of the Clean Car Wash Worker Center said car washes have been heavily targeted by federal agents, with hundreds of workers taken from workplaces, many businesses disrupted or closed, and workers living in fear; she urged support for AB 2271 to provide financial benefits to families who lost income because of DHS activity. California Nurses Association president Michelle Gutierrez-Vos said H.R. 1’s Medi-Cal and Covered California cuts threaten hospital finances, jobs, and patient care, and she backed CalCare (AB 1900), a hospital closure moratorium, and more support for nursing education. UAW 4811 president Rafael Jaime said federal research cuts are putting UC research funding and postdoctoral jobs at risk and endorsed SB 895, a proposed bond measure for health and scientific research. AFGE representatives Wallace Wade and Kendrick Roberson described the strain on federal workers during shutdowns, unpaid work, staffing losses, and the effects on TSA, Social Security, VA services, and worker housing stability; they supported SB 1155 to protect federal workers from eviction. Committee members thanked the witnesses and said the testimony showed both the human and economic consequences of federal policy. In the final panel, employer groups began responding to the same federal pressures. California Retailers Association president Rachel Michelin said retail is a major private-sector employer and a key entry point for young workers, and that retailers are seeing the effects of rising costs, supply-chain shifts, and consumer pressure at the checkout counter. The hearing continued with additional employer testimony beyond the provided excerpt.

Transcript Highlights:

• And we are very supportive of the LAO's proposal that the state use one-time funds, one-time revenues
• The bar chart for UC relative to revenues and expenditures—there's a similar chart in our staff report
• This enrollment growth, by the way, along with increased tuition revenue, will allow us to grow system
• This enrollment growth, by the way, along with increased tuition revenue, will allow us to grow system
• Our calculations indicate we could generate $300 million to $600 million to address facilities issues

Summary: The Senate Budget Subcommittee on Education held its first 2026 hearing on higher education, focusing on UC and CSU system updates, student housing, enrollment, and core operations. In opening remarks, the chair noted recent state fiscal stress, the prior rejection of proposed UC/CSU cuts, and the Governor’s proposed 5% ongoing compact increases. UC President James B. Milliken and CSU Chancellor Mildred Garcia described the systems’ public value, research and workforce roles, and the impact of federal actions on grants, financial aid, and campus operations. Both also emphasized Title IX and civil rights efforts; CSU said it had implemented nearly all state auditor recommendations and was on track to finish the remaining one, while UC highlighted its systemwide civil rights and Title IX offices. Both leaders said federal investigations, grant cancellations, and litigation demands were consuming staff time and money, with UC reporting more than 200 grants lost or affected and CSU citing more than $161 million in lost grants and more than 1,600 grants affected overall. The committee then heard on student housing. Finance and LAO staff said the Governor’s budget made no major new housing proposal but continued support for the Higher Education Student Housing Grant Program. CSU reported 12 supported projects that will add about 5,047 beds, most below market rate, with four already open and seven more expected this year; it also said it has about 68,000 beds systemwide, a 92% occupancy rate, and ongoing emergency housing support. UC said the program has supported seven UC projects and two joint community college projects, adding more than 7,000 beds total, but nearly 10,000 UC students were on housing waitlists at the start of fall 2025. UC asked for additional state support, including possible bond funding and a statutory change to allow UC participation in public-private partnership housing projects. Members discussed rapid rehousing, student homelessness, faculty and staff housing, and community college housing partnerships, with both systems describing existing emergency beds and support services. On enrollment, LAO recommended maintaining UC’s 2026-27 resident undergraduate target, funding enrollment growth separately from base increases, pausing the nonresident reduction plan, and holding UC flat in 2027-28. For CSU, LAO recommended revising the 2026-27 target downward to reflect current projections, funding growth separately, and holding 2027-28 flat. CSU said it had rebounded from COVID declines, now exceeds its funded target by about 3,000 FTE, and is shifting about $89 million and 10,000 FTE spots from lower-demand campuses to higher-demand ones while developing turnaround plans for seven campuses with sustained enrollment declines, including Sonoma State. CSU also described direct admissions, transfer success pathways, and new degree programs aimed at workforce needs. UC said it had surpassed its compact enrollment goals, planned to add 2,721 California undergraduates in 2026-27, and was seeking $5.5 million for health professional programs. Members raised concerns about underprepared freshmen, K-12 alignment, nonresident caps at UC San Diego, deferred maintenance, ROTC access, and the need for stronger turnaround plans and teacher preparation pipelines. The final item on core operations addressed the Governor’s proposal to defer 3% base funding again, moving the one-time deferral to 2027-28 and allowing short-term zero-interest loans to cover it.

Transcript Highlights:

• The calculations are very different, especially for New Hampshire students.
• </c><04:05:45.439><c> The</c><04:05:45.600><c> calculations</c><04:05:46.319><c> are</c><04:05:46.720
• The calculations are very way at all.
• </c><04:26:00.399><c> Administration</c> Department of Revenue Administration Department of Revenue Administration
• </c><04:27:14.720><c> and</c> standardizes the calculation and standardizes the calculation and applications

Committee: House Municipal and County Government

Summary: The committee convened for a day of public hearings on nine bills, with plans to later execute several early bills and possibly additional measures under House Rule 44. Chair Diane Pauer outlined time limits for sponsors and testimony, announced a lunch break around noon, and noted substitute members would be arriving later. The first hearing was on House Bill 1107, which would allow municipal budget committees to have one to three alternate members. Representative Valon, the prime sponsor, said the bill was intended to help towns like Epping deal with quorum problems during the compressed budget season and noted that alternates are common on other local boards. The New Hampshire Municipal Association testified in support, saying the bill would increase flexibility and help fill seats. Committee members raised concerns about whether alternates should be elected, how they would be selected, whether they would be sufficiently informed to vote, and whether the bill’s one-year term language and rescission provisions were clear. The sponsor and NHMA said the process would be consistent with other local boards, that alternates would typically be appointed after elections, and that they would follow up on possible statutory clarification. The hearing closed with six remote supporters, one paper supporter, and no opposition reported. The committee then heard House Bill 1118, sponsored by Representative Colby, which would raise the daily amount municipal employees may hold before remitting funds to the treasurer from the current $1,500 limit to $3,500. Colby said the existing thresholds are outdated, have not been updated in about 20 years, and create burdens for smaller towns that must make frequent bank deposits, sometimes far from town offices. She said the bill would improve efficiency and allow staff to focus more on serving residents, while still allowing municipalities to keep lower limits if they choose. Members asked about how the remittance process works in practice, what amounts municipalities typically collect, and whether the change reflected a broader trend of updating cash-handling thresholds. The sponsor explained that the bill only changes the dollar thresholds in the relevant statutes and does not require municipalities to adopt the higher limit. The transcript cuts off before any final action on HB 1118 is reported.

Transcript Highlights:

• I did jump in one and the slide was up, but back on the revenue...
• The top two are basically the buckets for postpaid revenue, which is your typical revenue from postpaid
• But the postpaid revenue is the typical phone bill.
• We are getting $12.6 million from 9-1-1 fee revenue, actually $14.6.
• from that revenue to be able to sustain a 24/7 crisis line.

Summary: The committee approved the March 26 minutes and then received a quarterly update on major IT projects from NDIT. Staff reported the portfolio included 116 major projects totaling about $546 million, with the overall portfolio under budget but slightly behind schedule. They reviewed projects over the 20% variance threshold, including an Industrial Commission grants management system and DOT’s roadway pre-construction replacement, and then heard startup and closeout reports from HHS, OMB, DPI, and DOT. Several previously troubled projects were closed, including HHS bed management, vital records modernization, and DOT roadway capital planning; some projects finished under budget and ahead of schedule, while others were significantly behind schedule or over budget but were now closed or being remediated. The committee also reviewed NDIT’s annual report, including service-fund financials, peer-state rate comparisons, records management, and customer satisfaction efforts. Members asked about how service-fund revenue and grant administrative charges are accounted for, how chargebacks work, and whether NDIT tracks customer satisfaction scores. NDIT said it does track CSAT-type measures in some service areas and has survey data, but it is not planning another customer survey this summer. Members encouraged more regular reporting of customer satisfaction, service-level metrics, and performance data to help guide future improvements. A major portion of the meeting focused on the state’s mainframe modernization effort. NDIT said the overall effort is still targeting about 2030, with multiple HHS and DOT projects underway and a $15 million tech-debt appropriation already removing some components. Staff described the main obstacles as data cleanup, complex integrations, limited staff capacity, retirements, and vendor constraints, and said they are seeking a vendor with modernization support in the next contract cycle. Members pressed for clearer accountability and faster progress, and NDIT and HHS emphasized that they are working jointly but need continued support and better tools. The committee then heard a cybersecurity update on NDIT’s statewide services and maturity assessments. NDIT explained that it provides vulnerability scanning, endpoint protection, security awareness training, threat briefings, and penetration testing, and that these services are tied to a cybersecurity maturity assessment based on CIS controls. Members questioned the sharp drop in participation since 2020 and whether the self-assessment should be mandatory or tied more strongly to StageNet access or insurance incentives. NDIT said participation is voluntary, but Enderf is now requiring annual assessments to keep a 4% insurance discount, and members discussed whether stronger requirements or audit authority may be needed. The meeting ended as the committee began a follow-up discussion on BEAD broadband connection costs and why some locations are much more expensive to connect than others.

Transcript Highlights:

• Programs would be continued through the imposition of a local tax to provide revenues locally.
• Now, the second thing is to view your number calculation.
• The current restrictions force them to compromise their entire year's revenue into just two weeks.
• Tax fares are left to make up the lost revenue.
• The breakdown of revenue in the almost $43 million, which is 15% of our district's entire tax base.

Bills: SB434 , SB844 , SB898 , SB1177 , SB1214 , SB1454 , SB1920 , SB1927 , SB1935 , SB1965 , SB2010 , SB2046 , SB2068 , SB2073 , SB2183 , SB2260 , SB3034 , SB907

Committee: Senate Local Government

Transcript Highlights:

• </c> along that we always expected revenues along that we always expected revenues to<00:08:02.479><c
• </c> revenue picture shapes up. Thank you. revenue picture shapes up. Thank you.
• So, we calculated that the bill would result in a fiscal year 27 $23 million reduction in revenue. >>
• </c> reduction in revenue. reduction in revenue.
• So I think this bill revenues.

Committee: Senate Finance

Transcript Highlights:

• revenues and expenditures measures<00:17:54.840><c> of</c><00:17:55.080><c> Effectiveness</c><00:17:
• I still working through some calculations. Good morning, and thank you, folks, for coming.
• </c> forward are are very uh very calculated forward are are very uh very calculated and<01:25:14.639
• But, you know, in this kind of year when Council revenues came out the other day and they identified
• So $34 in incremental tax revenue.

Summary: The Committee on Finance received an informational briefing from the Department of Education on its budget request for the upcoming fiscal year. The Superintendent and staff described the department’s mission, enrollment and staffing scale, recent gains in NAEP reading and math, persistent attendance problems since the pandemic, and the need for resources to support student recovery, middle school math, and other strategic priorities. The department said its proposal is intended to be aligned with its 2023–2029 strategic plan, fiscally balanced, and reliable for schools, while also addressing inflation, workforce needs, and uncertainty in federal funding. Assistant Superintendent and CFO Brian Hallet reviewed federal grants, non-general funds, and the budget development process. He said federal funds make up about 11% of the department’s FY25 appropriation and warned that House budget proposals could threaten predictable funding for core programs. He also explained that the department began its biennial budget work in April 2024 and used an internal review group to identify possible reallocations. The department characterized its request as a “flat” budget proposal overall, with a large share devoted to continued funding for existing recurring needs, and noted challenges including a projected state funding decline, inflation, lingering pandemic impacts, recruitment and retention, and uncertainty about future federal support. A major topic was the department’s capital improvement program. DOE officials argued for a risk-based, proactive approach using lump-sum “buckets” to manage facilities and deferred maintenance across more than 21.5 million square feet at 268 sites. They said this would allow more efficient prioritization of projects and better coordination with complex area superintendents, principals, and legislators. Members asked about how legislative priorities would fit into the bucket system, county-versus-state property jurisdiction issues affecting school facilities, enrollment decline and staffing ratios, and how the department plans to adjust facilities and human resources to shifting enrollment patterns. DOE said it is studying enrollment trends, will brief the Board of Education next month, and is willing to provide further briefings to legislators. No votes or formal actions were taken during the informational briefing.