Transcript Highlights:

• Department of Finance. Department of Finance, Elise Bettis.
• Department of Finance. Italy's Bedez, Department of Finance, nothing further to add.
• Department of Finance? I can't try to Department of Finance.
• Department of Finance.
• Department of Finance. Thank you. Department of Finance. Italy's Bedis, Department of Finance.

Summary: The joint Assembly Budget Subcommittee hearing focused first on long-term services and supports for older adults, especially the “forgotten/overlooked middle” who earn too much for Medi-Cal but cannot afford private long-term care. Administration witnesses from DHCS, the Department of Aging, and Social Services described Medicare’s limited long-term care coverage, Medi-Cal’s role, the elimination of the Medi-Cal asset test, and ongoing state studies and listening sessions on financing options. Testimony from advocates and researchers emphasized rising homelessness among older adults, the need for better navigation and coordination across health, aging, housing, and social service systems, and short-term policy steps such as share-of-cost reform, housing stability supports, and protecting home- and community-based services. Members highlighted the need for a coordinated, no-wrong-door approach and asked for the most impactful budget investments to address affordability and homelessness risk. The second major topic was the Community-Based Adult Services (CBAS) program. CDA reported that CBAS helps participants remain in the community, that 304 centers operate statewide serving about 42,000 people, and that demand is stable but access gaps remain in some regions. DHCS explained that a 2024 rate increase authorized by SB 159 became inoperative after Proposition 35, and that a separate 10% rate change on the fee schedule was the result of a DHCS system error; the department said it would not require recoupment, though managed care plans may act under their contracts. CBAS providers and advocates warned that reimbursement rates have not kept pace with costs, that several centers have closed, and that clawbacks could trigger more closures. They requested $74.8 million ongoing General Fund to close part of the rate gap and preserve the program, while members expressed concern about closures and the cost savings of keeping people out of more expensive institutional care. The hearing then moved to In-Home Supportive Services (IHSS) and statewide collective bargaining. CDSS reviewed provider recruitment and retention efforts, including electronic timesheets, direct deposit, and the now-completed IHSS Career Pathways program, which trained more than 59,000 providers. CDSS also summarized its AB 102 workgroup report on statewide versus regional bargaining, saying the final report would be sent to the Legislature soon and that statewide bargaining appeared more viable than regional bargaining, though it would require clear statutory scope and major fiscal changes. The department estimated that each $1 per hour statewide wage increase would cost at least $1.3 billion to $1.5 billion annually. Labor advocates argued that IHSS wages, benefits, and training are too inconsistent across counties and called for statewide bargaining, consumer participation, and ongoing state funding. County representatives supported stronger wages but cautioned that counties need protection from new costs and administrative burdens, and consumer advocates warned that moving bargaining to the state could weaken local consumer control and the program’s consumer-driven structure.

Transcript Highlights:

• We'll start with the Department of Finance.
• This is for Finance, sorry. This is for Finance.
• This is for finance. Devin Mitchell with the Department of Finance.
• So thank you for filling that gap as well.
• We'll kick it off with Finance, please. Hello again, Devin Mitchell with the Department of Finance.

Summary: The Assembly Budget Subcommittee on Education Finance met to review CSU and State Library budget issues, enrollment trends, the Capital Fellows program, and a Title IX update. Chair David Alvarez opened by stressing that CSU faces serious financial pressure, including a systemwide deficit and proposed cuts that he and several members said were too large and likely to harm access, course offerings, and student services. Public comment focused heavily on the Braille Institute Library, with patrons, staff, veterans, and advocates urging restoration of funding and warning that the proposed cut would severely affect blind and visually impaired Californians across Southern California. Several CSU faculty, staff, and union representatives also opposed the proposed reductions and warned of larger class sizes, fewer sections, and layoffs. On the CSU core operations item, the Department of Finance explained the Governor’s proposal to reduce ongoing General Fund support by about $375 million and defer a 5% base increase, while the LAO said CSU core funding would be roughly flat once tuition and targeted augmentations were considered, but warned that rising costs and prior shortfalls would still force campuses to cut spending. CSU’s Chancellor’s Office said the proposed cut would deepen existing problems, citing prior-year budget gaps, job losses, reduced course sections, and student-service reductions. Members pressed Finance and the LAO on whether cuts could be made more surgically, especially at the Chancellor’s Office or in institutional support rather than in instruction, and the LAO said the Legislature has flexibility to target cuts more specifically. CSU also described ongoing consolidation efforts, including shared services among campuses and the planned Cal Maritime/Cal Poly San Luis Obispo integration, while cautioning that savings are not yet fully known. The committee then discussed CSU enrollment. The LAO recommended holding enrollment targets flat because the budget does not add new funding, while CSU reported strong recent growth, including more California residents, record first-year enrollment, and expanded direct admissions and transfer pathways. Members questioned why some campuses with high demand turn away many applicants while others continue to lose enrollment, and CSU said it is shifting resources from campuses with sustained declines to those with demand, using a 10% below-target threshold. The committee also discussed whether enrollment declines mirror local population trends, how to improve marketing and program alignment, and whether lessons from Cal Poly Humboldt’s conversion could inform other campuses such as Sonoma State. The Capital Fellows item drew a Finance proposal for a salary increase and an LAO counterproposal for a smaller raise plus future COLA language; the committee kept the item open. Finally, CSU reported progress on Title IX compliance, saying it has completed most State Auditor recommendations, expanded civil rights staffing, and increased training, prevention, and case-management efforts, though members asked how proposed budget cuts might affect those services.

Transcript Highlights:

• Department of Finance, please kick us off.
• This one's for the Department of Finance.
• This is for finance, sorry. Devin Mitchell with the Department of Finance.
• So thank you for filling that gap as well. That gap as well.
• there to fill in the gaps.

Keywords: 988, house, all

Transcript Highlights:

• So the consistent gaps in communication.
• >> Finance. >> Finance. >> Finance. >> Thank<00:32:01.279> you.
• I believe a fiscal finance after this.
• examined in education finance. examined in education finance.
• All those Education Finance Committee.

Keywords: 1183, house

Summary: The committee heard House File 3585, as amended, which would create an interagency council on student attendance and re-refer the bill to education finance. Representative Keeler moved the bill and an A1 amendment that corrected the council’s placement from the Department of Children, Youth, and Families to the Department of Education; the amendment was adopted. Keeler and Representative Bakeberg described the bill as the product of several years of bipartisan work on chronic absenteeism and truancy, emphasizing that attendance problems involve multiple systems and require ongoing coordination rather than a single-agency response. Testimony was strongly supportive. Matt Shaver of Allies cited statewide chronic absenteeism data and argued that schools cannot solve the problem alone because root causes such as housing, transportation, health, and economic instability lie outside school control. Assistant Commissioner Angela Mansfield of MDE said the task force and pilot districts showed coordination gaps and supported the council, while also noting MDE’s Compass staff would need permanent funding to carry out the work. Ashley High Totower of Hennepin County’s BEET program said attendance is a public health, child welfare, transportation, housing, and economic issue, and Kenneth Avon of the Minneapolis Foundation said absenteeism is an ecological problem requiring cross-sector coordination. Student witnesses also supported the bill but urged stronger youth representation. Henry Brick of Catalyst for Systems Change said students understand the causes of absenteeism best and proposed expanding student seats on the council from one to five. Ava Northrup of the Minnesota Youth Council said youth voices should be more than symbolic and suggested two youth representatives, one from the metro and one from greater Minnesota, plus additional youth task forces or panels. In member discussion, Representative Lawrence questioned whether the council duplicated existing MDE work, asked who would coordinate the group, and raised the lack of a sunset; Keeler and Bakeberg said the Department of Education would coordinate and that a sunset could be considered later. Other members asked about fiscal impact, and the chair said a fiscal note had been requested and the bill would move on to education finance.

Transcript Highlights:

• With the flexibility, though, that Finance said it does allow us to recognize the SBB gap, it still does
• It does allow us to recognize the SBB gap.
• Ney Williams, the Department of Finance.
• Department of Finance: Bid Long Wing, Department of Finance, nothing to add. Thank you.
• Department of Finance.

Keywords: 987, senate, all

Summary: The subcommittee heard an extensive discussion on the Governor’s proposal to eliminate vacant positions across several environmental and natural resources departments, including Fish and Wildlife, Parks, the Coastal Commission/BCDC, DPR, DTSC, CalRecycle, and the State Water Resources Control Board. The Legislative Analyst’s Office explained that the JLBC had already not concurred with 650 of roughly 1,000 positions under review, citing concerns that many of the vacancies support core functions such as law enforcement, permitting, public safety, sea-level rise planning, and implementation of recently enacted laws. The Department of Finance defended the vacancy reduction exercise as a way to capture savings from a statewide pool of about 40,000 vacancies, arguing that departments need flexibility to manage operations and that some vacancies are used to cover operating costs or hard-to-fill roles. Several department representatives testified that the cuts would reduce capacity and could slow permitting or enforcement, though they said they would try to reclassify positions and prioritize the highest-need work. No vote was taken and all items were held open for a future hearing. Members focused heavily on the practical effects of the cuts. Senators questioned whether vacant positions should be treated as a budget savings tool, whether special-fund positions should be eliminated when they do not affect the General Fund, and whether long-vacant positions should simply be removed if they have not been filled for years. Fish and Wildlife and Parks described impacts to permitting, wildlife conflict response, and law enforcement; Parks said its academy can train only about 50 rangers a year, leaving many vacancies even after the proposed reductions. The Coastal Commission said the affected positions support SB 272 sea-level rise planning with local governments. DPR said the proposed cuts would affect multiple branches involved in pesticide registration, enforcement, and safety review, while DTSC said it was still hiring from a large 2022 reform package and had reduced its vacancy rate from about 30 percent to 15 percent before the drill. The State Water Board said its proposed reductions would be spread across programs and could lead to slower permitting and backlogs, though it would protect drinking water functions as much as possible. The committee then moved to a State Water Resources Control Board overview and a new budget proposal tied to the U.S. Supreme Court’s Sackett decision. Chair Esquivel described the board’s responsibilities for water quality, water rights, drinking water, and financial assistance, and said the board is updating the Bay-Delta Plan while also pursuing voluntary agreements and broader water-rights administration. He said federal workforce reductions and the Sackett ruling have increased pressure on state programs. The board requested $2.6 million and 12 permanent positions from the Waste Discharge Permit Fund to address permitting and enforcement gaps created by the narrowing of federal Clean Water Act jurisdiction. The LAO said the request met its high bar for new proposals because it was supported by the board’s data and would help maintain water-quality protections, though it noted that state processes are less efficient than the federal framework they are now partially replacing.

Transcript Highlights:

• Thank you, Department of Finance. Neal Kishun, Department of Finance: Nothing to add. Okay.
• We will have a gap, and then that gap needs to be recovered from some other way.
• They will do the financing, meaning they can advance the cash.
• financing on top of the $20 billion.
• And back about the finance...

Keywords: 987, senate, all

Summary: The Senate Budget Subcommittee No. 5 heard an update from the California High-Speed Rail Authority on its 2026 draft business plan and related budget proposals. The Authority said work in the Central Valley is advancing, with 59 of 92 major structures complete, 80 of 119 miles under construction finished, utility relocations 93% complete, and track-laying expected to begin later this year. It said the revised plan targets completion of the Merced-to-Bakersfield early operating segment in 2032-33, and it highlighted a new strategy focused on ancillary revenues, public-private partnerships, and possible value-capture tools such as real estate, energy, broadband, logistics, and tax increment financing. The Authority also asked for reappropriation of $423 million in Prop 1A funds for the Link Union Station project and $246 million in federal trust funds to avoid expiration. The Legislative Analyst’s Office said it had no specific concerns with the two budget change proposals but raised broader concerns about the draft business plan and the project’s finances. LAO said the plan appears to assume optimistic cost savings, immediate approval of major statutory changes, and reliable future cap-and-invest revenues, while actual funding may be insufficient even for the revised Central Valley segment once borrowing costs are included. LAO also said the draft business plan was missing several required elements identified by the Office of the Inspector General, and it suggested the Legislature could wait until the plan is finalized before acting. Department of Finance had no additional comment. Members questioned the Authority about whether all proposed financing and policy changes are necessary, how tax increment financing would affect local governments and school districts, and what authority the Authority has to enter public-private partnerships without further legislative approval. The Authority said utility relocation authority is its top legislative priority, that value capture is a longer-term tool not needed to complete Merced-to-Bakersfield, and that any state backstop beyond the current $20 billion commitment would require returning to the Legislature. It said a private partner is expected to be selected around June 1, with more detailed financing analysis to follow over six to eight months. Public testimony was split: labor groups and project supporters backed the budget request and urged action on utility relocation and job creation, while local government and special district representatives strongly opposed tax increment financing and related land-use proposals without local consent. The hearing ended with no vote taken and the committee adjourned.

Transcript Highlights:

• <01:27:11.239> between 20-year estimated funding gap between 20-year estimated funding gap
• <01:29:17.080> at kind of buy down buys down the Gap at kind of buy down buys down the Gap
• The gap numbers, everything presented as the gap is of all the trunk highway money.
• One of these says the remaining gap is $17.8 billion, and another one says the total HD gap is $18.7
• that was a part of the year Gap that was a part of the transportation<01:41:38.000> Finance<01

Keywords: 1187, senate, all

Summary: The committee heard testimony on Senate File 285, a bill to shift MnDOT highway project cost participation away from local governments and onto MnDOT. The bill’s author and several city representatives said current cost-share policies force cities to spend local aid, property taxes, or debt on state highway projects they do not control, leaving less money for local streets and maintenance. Testifiers from Richfield, Elk River, Faribault, Minneapolis, and the Minnesota Association of Small Cities all supported the bill, describing the policy as one-size-fits-all, financially burdensome, and especially harmful to smaller cities and cities with major state highways running through them. Witnesses gave examples of large and sometimes changing local cost-share obligations, including Richfield’s spending of most of its MSA funds on projects it does not own and a small-city project where the estimated local share rose from about $2.3 million to over $3 million. Several testifiers said cities often have little practical ability to refuse MnDOT projects because the projects are valuable and MnDOT can move on if a city declines. One witness also raised concerns about money being paid upfront and held in an account during construction, causing cities to lose interest earnings while funds sit unused. Members asked whether cities truly have a say in these projects and whether there are limits on how much the local share can increase. Testifiers said MnDOT does engage cities, but the cost participation policy largely dictates the outcome, and they described the municipal consent statute as too narrow in practice. Senators expressed concern about fairness and the burden on local budgets, while one member noted the bill may not fully address the broader consent issue. No vote or final action was taken in the portion of the meeting provided.

Transcript Highlights:

• Bowen Peterson, Department of Finance.
• It's a problem, and the gap is growing every year.
• Pollack from Department of Finance. Benjamin Pollock, Department of Finance.
• One is this funding gap—this isn't like a way-out-in-the-future funding gap.
• This is a pretty immediate funding gap.

Summary: The committee held an informational hearing on transportation agency budget proposals and did not take any votes. The first major discussion focused on the Motor Vehicle Account shortfall and a proposed one-time $166 million transfer from the Air Pollution Control Fund and Greenhouse Gas Reduction Fund to offset California Air Resources Board mobile source costs. Department of Finance and the LAO described the account’s long-running structural deficit, driven largely by employee compensation growth and REAL ID-related workload, while members criticized the use of Proposition 4, GGRF, and other one-time or redirected funds as backfills and urged a longer-term solution that addresses both revenues and expenditures. The committee then heard Caltrans’ request for $25 million in General Fund support to create a Clean California Community Cleanup and Employment Pathway Grant Program. Caltrans said the program would build on the prior Clean California effort by funding local litter and graffiti cleanup, community engagement, and workforce pathways for vulnerable populations. The LAO recommended rejecting the proposal, arguing that local litter abatement is not a core state responsibility and that one-time funding is unlikely to solve persistent local cleanup needs. Several members echoed those concerns, while public commenters split between support for the cleanup/employment model and calls to instead restore funding to the Active Transportation Program and transit operations. The Tahoe Regional Planning Agency requested that California administratively recognize Tahoe’s federally designated population figure for state formula-based transportation funding, which would raise the population count used in formulas from 40,000 to 145,000. The agency said the change would not request new money but would better align state formulas with federal law and support a shared regional funding framework; members appeared generally supportive, though they noted the need to phase in the change to reduce impacts on other regions. The final presentation was on High-Speed Rail. The LAO reviewed the authority’s project update report, noting that it did not fully meet statutory requirements and that key details are still pending in a supplemental report expected later in the summer. The LAO said the Merced-to-Bakersfield segment still shows an estimated roughly $7 billion funding gap, with no specific plan to close it, and highlighted risks from federal review, inflation, and uncertain GGRF revenues. High-Speed Rail Authority staff said they are conducting a bottom-up review of scope, schedule, ridership, and costs, expect to provide updated information by late summer, and are exploring public-private partnerships and other financing strategies. Members stressed that no further funding commitments should be made until the updated analysis is available.

Transcript Highlights:

• I'm Peterson from the Department of Finance.
• gap will continue to grow.
• Every year, the gap is growing.
• Pollack from the Department of Finance. Benjamin Pollack, Department of Finance.
• One is this funding gap. This isn't a way out; this is a pretty immediate funding gap.

Keywords: 988, house, all

Transcript Highlights:

• House File 3600 provides up to 5% additional bonus points from the Minnesota Housing Finance Agency for
• Minnesota Housing Finance Agency would give greater consideration for their competitive development programs
• agency has been phenomenal over finance agency has been phenomenal over the<00:04:24.000> last
• Um, I'm not sure if you've talked with the Housing Finance Agency yet.
• ,<00:08:18.720> especially Minnesota Housing Finance, especially Minnesota Housing Finance

Keywords: 1183, house

Transcript Highlights:

• finance 50,000 new home buyers. finance 50,000 new home buyers.
• That is the gap this fund is worse.
• <01:00:24.640> Many work, we see a consistent gap. Many work, we see a consistent gap.
• So, it's really financing costs.
• housing gap in greater Minnesota. housing gap in greater Minnesota.

Bills: HF3279, HF1879, HF1417, HF2462

Keywords: housing, sales tax, homeownership, rent assistance, community stability, education, counseling, financial assistance, housing development, culturally appropriate services, HF1417, manufactured home parks, manufactured housing, mobile home parks, housing development fund, Minnesota Housing Finance Agency, MHFA, infrastructure grants, infrastructure loans, affordable housing

Transcript Highlights:

• So it's about an $1,120 gap.
• It's very complicated, as school finance bills are.
• and we have to fill those gaps.
• The amount doesn't cover the entirety of the gap. The last I saw the gap from T.E.A.'
• s numbers was 1.7, 1.8 billion a year, so there is still a gap. um, a significant gap, but this goes

Bills: HB2, HB2

Keywords: public education, teacher compensation, certification, funding, school finance, educator rights, education funding, charter schools, staff compensation, state aid, retention allotment, disaster preparedness, emergency management, flooding, mass fatality, mass casualty, fatality tracking, body recovery, autopsy, justice of the peace

Transcript Highlights:

• Hugo Saly Scalena with the Department of Finance.
• So he's going on with the Department of Finance.
• So, Department of Finance, we'll start with you. Hugo Siles-Galina with the Department of Finance.
• And yet, the achievement gaps persist.
• Finance, CDE? I can comment.

Summary: The committee heard a series of budget proposals focused on education finance, with repeated questions about whether the state’s investments are coordinated, targeted to the highest-need students, and likely to produce measurable results. On the first item, the administration proposed $1 million for a study of California’s curriculum framework, standards, and instructional materials process, plus $250,000 for supplemental ELA/ELD guidance. CDE and Finance said the study would examine how other states organize standards, frameworks, and adoptions, while the chair and members questioned why California has gone so long without updating some standards, what the study would actually accomplish, and whether the proposal was too vague to justify the cost. The issue was held open. The committee then took up a proposed $25 million statewide literacy network within the system of support. CCEE and CDE said the network would coordinate multiple existing literacy leads, create a clearinghouse of evidence-based resources, and improve coherence across the state’s many literacy initiatives. Members pressed on how a one-time, five-year allocation could support a long-term system, how the work would reach distressed and rural districts, and whether the proposal would translate into classroom change rather than just another layer of coordination. The issue was also held open. Next, the committee reviewed a $500 million proposal to expand literacy coaches and reading specialists and to create a math coaches program. CDE described the existing literacy coach cohorts as producing positive reports from participating LEAs, while the LAO recommended modifications, especially for the math coach portion, including limiting eligibility to elementary schools, setting minimum grant amounts, directing funds to eligible school sites, and making eligibility automatic rather than application-based. Members focused on whether coaches were actually being placed at the schools with the greatest need and whether the state has a coherent long-term strategy for literacy and math investments. The committee also heard a $40 million proposal for training and implementation of K-2 reading difficulty screeners, which the LAO said was reasonable but could be reduced because $25 million had already been provided for training; CDE said the new funds were needed for full implementation, procurement, and sustainability. Finally, the committee heard a $10 million proposal for a developmentally appropriate TK multilingual learner screener, with CDE explaining why the preschool language-identification process is different from K-12 EL assessment and the chair asking staff to explore whether a single, more consistent approach could be developed. The meeting concluded with a presentation on universal school meals and kitchen infrastructure, including a $31.5 million backfill, an $84.1 million increase for projected meal growth, a COLA adjustment, and $150 million for kitchen upgrades and training to support freshly prepared meals.

Transcript Highlights:

• enterprises, where the private markets are not filling the gaps.
• And third, develop state-led financing strategies for resilience.
• can be financed, and victims are protected.
• can be financed, and victims are protected.
• So that's where this gap is.

Keywords: 987, senate, all

Summary: The committee held the first of several informational hearings on the SB 254 Natural Catastrophe Resiliency Study, focused on wildfire risk, utility liability, and how to finance catastrophic losses. Chair Allen opened by describing California’s recent utility-ignited wildfires, the creation of the wildfire fund under AB 1054, and SB 254’s extension of that fund and requirement for a study. The California Earthquake Authority, as wildfire fund administrator, presented the report’s process and findings, emphasizing that the study was intended to be neutral and broad, based on extensive stakeholder outreach, and that the status quo is not working well for survivors, communities, ratepayers, insurers, or utilities. CEA’s report organized recommendations into three policy pathways: continued mitigation investment, more equitable allocation of catastrophe burdens, and expanded state roles in catastrophe financing. For utilities, the report discussed options such as setting a binding risk-tolerance standard, preserving safety certificate accountability, tying executive compensation more directly to safety, creating confidential reporting with safe-harbor protections, reforming utility liability including possible changes to inverse condemnation, limiting damages, reducing insurance subrogation, and creating a fast-pay facility for survivors. The financing analysis compared a more durable wildfire fund, risk transfer/reinsurance, liability reforms, and state-backed mechanisms such as a state insurer, a state backstop, and broader funding for community wildfire mitigation. The CPUC said wildfire mitigation oversight has improved, but wildfire-related costs are driving electricity bills higher and creating an affordability crisis. The Office of Energy Infrastructure Safety highlighted its wildfire mitigation plan review and field inspections, and recommended stronger safety reporting and more safety-weighted executive compensation. In member discussion, senators and assemblymembers focused on the cost of the status quo, whether the burden should be shared by ratepayers, utilities, the state, or other parties, and whether California should consider broader disaster-financing approaches. Several members raised concerns about inverse condemnation, the pace of survivor compensation, local land-use responsibility, and the need for a more comprehensive statewide solution rather than piecemeal bills. No votes or formal actions were taken; the hearing was informational only.

Transcript Highlights:

• experiences and closing the gaps before a student enters kindergarten.
• Incremental financing, you know, caps are in place for various reasons.
• And we've got to look at other ways in the longer term to help fill the gaps.
• And we've got to look at other ways in the longer term to help fill the gaps.
• Racial and socioeconomic achievement gaps are growing wider.

Keywords: 995, all

Summary: The hearing focused on House Bill 55, the governor’s FY25 supplemental budget proposal to spend about $1.3 billion in surplus Fair Share revenue. House and Senate chairs framed the bill as a one-time opportunity to invest fairly in education and transportation, while also noting the need to protect the state’s long-term fiscal balance. Administration officials said the proposal should be considered alongside the FY26 budget and related bills, since the governor’s broader Fair Share plan aims for roughly an even split between education and transportation over time. Secretary of Administration and Finance Matthew Gorzkowicz, Transportation Secretary Monica Tibbits-Nutt, and Education Secretary Patrick Tutwiler outlined the administration’s priorities. Transportation funding would go mainly to the MBTA and related reserves, including money for the Federal Transit Administration reserve, MBTA stabilization reserve, low-income fares, winter resilience, RTA workforce support, MassDOT workforce and project delivery, and micro-transit grants. Education funding would support universal preschool expansion, early education and care capacity, early literacy tutoring, adult basic education and ESOL, early college and career technical education, MyCAP expansion, and special education circuit breaker funding. The administration emphasized that many of these investments are one-time or multi-year measures designed to address current needs without creating unsustainable recurring costs. Committee members raised concerns about regional equity, especially the large share of transportation money going to the MBTA versus regional transit authorities and rural areas. Several members asked for more detail on how the proposal would benefit Western Massachusetts and other non-MBTA regions, and whether micro-transit and Chapter 90-related investments would be sufficient. Education questions focused on special education reimbursement shortfalls, federal funding cuts to school districts, and how CTE and vocational investments would align students with workforce needs. The administration said it would provide additional data on MBTA versus RTA investment and explained that the special education circuit breaker and transportation reimbursement changes were intended to improve predictability and relief for districts. After the administration panel, Jessica Tang of AFT Massachusetts testified in support of using Fair Share funds to protect public education amid federal uncertainty and cuts. She argued that schools are facing a fiscal cliff, that vulnerable students would be hit hardest by funding losses, and that the Fair Share revenue should be used to preserve services and support students’ needs.

Transcript Highlights:

• And the other part is the gap. When the plan has to identify gaps, I think that will help policy.
• Or, and gaps, and I would propose that we would take the "and" out, put a comma, and then the word "gaps
• So it's resources and gaps, would be the first part.
• gaps.
• So this is to cover the small gap of what's.

Transcript Highlights:

• without the 340b program our finances without the 340b program our finances would<00:20:15.760><
• We borrowed $54 million in bond financing from Wall Street to finance that project.
• <00:31:25.200> Gap<00:31:25.480> to<00:31:25.679> the um the the the um financing
• Gap to the um the the the um financing Gap to the state's<00:31:26.120> Medicaid<00:31:26.799
• Hospital finances are tight.

Keywords: 1183, house

Summary: The Health Finance and Policy Committee heard testimony from the Minnesota Hospital Association and several hospital leaders about the financial strain facing hospitals across Minnesota. The association’s CEO said hospitals are essential 24/7 safety-net providers, but rising labor, supply, technology, and drug costs are outpacing reimbursement from Medicaid, Medicare, and commercial payers. He warned that many not-for-profit hospitals are struggling, that workforce shortages remain significant, and that the committee should consider help on Medicaid rates, discharge/boarding problems, mental health services, workforce development, protecting the 340B drug discount program, and avoiding new mandates that add costs. Relle Schultz of Winona Health described a community hospital with a 49-bed facility and long-term care services that has faced years of losses, including a $17 million loss in 2023 and $12 million in losses the following year. She said government payers now make up about 65% of the hospital’s mix, and each 1% increase in that mix costs about $1 million. She highlighted the difficulty of sustaining services such as dialysis, which was nearly closed until a local donor provided $3 million to keep it open for three years, and she emphasized the importance of 340B savings and the need for higher Medicaid payments. Carrie Mulski of Riverview Health in Crookston said critical access hospitals are also under pressure despite their federal designation. She explained that federal support has eroded, that Medicaid and other public programs do not cover full costs, and that her hospital’s 340B savings help keep the doors open. She said Riverview opened a new hospital in 2020 but was hit by the pandemic and inflation, leading to annual losses of $5 million to $6 million and a negative operating margin of 9% to 10%. She also described bond covenant problems, low cash on hand, the prior closure of the nursing home, and the need for rapid state action to stabilize rural hospitals and preserve access to care.

Transcript Highlights:

• And the Finance Authority's Opportunity Enterprise Fund fills a gap in housing development.
• And the Finance Authority's Opportunity Enterprise Fund fills a gap in housing development financing
• But if we do not get the gap financing that we need, we will not be able to take full advantage of the
• In reality, you can only bond what you can finance, and that $9.1 million finances about $100 million
• They have been approved by the Board of Finance. They've been approved by the Finance Authority.

Keywords: 996, all

Transcript Highlights:

• Finance Agency. The Economic Development Finance Agency.
• Um, and so this is an important gap financing tool that is always oversubscribed.
• Still, a gap remains.
• Still, a gap remains.
• Still, a gap remains.

Keywords: 1183, house

Transcript Highlights:

• That alone is a gap of 20,000 homes.
• and an ongoing gap.
• That alone is a gap of 20,000 homes.
• We are now working to identify alternative financing, including expanding our loan fund to fill the gap
• We are now working to identify alternative financing, including expanding our loan fund to fill the gap

Keywords: 1187, senate, all