Transcript Highlights:

• [Music] I call this meeting of the House Housing Finance and Policy Committee to order.
• Thank you, Chair Igo and members of the House Finance and Policy Committee, for allowing me to testify
• You've probably all heard this, that there's a gap that needs to be cleared for developers to want to
• You've probably all heard this, that there's a gap that needs to be cleared for developers to want to
• Without some type of assistance bringing the development costs down, both tax increment financing and

Keywords: 1183, house

Transcript Highlights:

• building and is helping to close the gap building and is helping to close the gap for<00:21:17.240
• But this bill helps to fix three critical gaps in our current system.
• But this bill helps to fix three critical gaps in our current system.
• These funds help bridge the affordability gap and value gap by making home ownership more accessible.
• affordability Gap and value Gap by affordability Gap and value Gap by making<01:19:23.480> home

Keywords: 1187, senate, all

Transcript Highlights:

• Paula Flynisher-Tang with the Department of Finance.
• Liz Beth Casillo with the Department of Finance.
• Anything from the Department of Finance or LAO? Kayla, nothing from the Department of Finance?
• Matt Schuller, for Finance Capital Unit.
• Joseph Dawson, Department of Finance.

Summary: The Assembly Budget Subcommittee on Health held an informational hearing on the Governor’s May Revision, focusing first on the Commission on Behavioral Health, then EMSA, and then the California Department of Public Health (CDPH). The Department of Finance said the state faces a third consecutive deficit and that the May Revision includes difficult trade-offs, including proposed eliminations or reversions of some behavioral health and public health funds. The LAO echoed concern about the structural deficit and said it was still awaiting some budget details before offering a full analysis. For the Commission on Behavioral Health, Finance proposed eliminating $20 million in Mental Health Wellness Act funds, arguing the money would help offset General Fund costs and noting future Proposition 1 innovation funding. The commission strongly opposed the cut, saying it would eliminate or delay launch-ready grants for early childhood supports, full-service partnerships, and peer respite, and would eventually end ongoing grant programming. Several advocates and commissioners testified that the funds support underserved communities and that Proposition 1 is not a substitute for the existing programs. The chair asked Finance to look for alternatives, but no vote was taken. EMSA presented mostly technical budget adjustments: increased authority for the California Poison Control System, a correction to EMSIS funding, and a reappropriation for enterprise services and data management. CDPH then reviewed a broader set of May Revision proposals, including reversions from the California Reducing Disparities Project, workforce development, STD prevention, hepatitis C prevention, hospice, and extreme heat funding, as well as a new generative AI pilot for health facility survey reporting. Members raised concerns about cuts to CRDP and gender health equity programs, especially because many grants are mid-contract and serve underserved communities; CDPH said the reversions were part of solving the deficit and that CRDP had been successful, while also clarifying that abortion.ca.gov would not be eliminated. Public comment was overwhelmingly opposed to the CRDP and related cuts, with many speakers describing the programs as life-saving and cost-effective. No formal votes or actions were taken during the hearing.

Transcript Highlights:

• The Assembly Banking and Finance Committee is now called to order.
• Potential bankruptcy of the Department of Finance and Innovation? Do we know about that?
• The bill would include lawsuit financing in the definition of commercial loan.
• Litigation financing is the most significant development in modern civil litigation.
• It's a mouthful, but legal funding is different from litigation financing.

Keywords: 988, house, all

Transcript Highlights:

• information and resources, bridging gaps information and resources, bridging gaps in<00:02:13.080
• funding gap for this critical project. funding gap for this critical project.
• <00:46:10.480> a their project faced funding gap a their project faced funding gap a funding
• million funding gap.
• The gap is exactly million funding gap.

Keywords: 1187, senate, all

Transcript Highlights:

• Department of Finance.
• Department of Finance. Anthony France with the Department of Finance.
• Department of Finance: Anthony Franzoid, Department of Finance.
• Department of Finance. Thank you so much. Department of Finance or L.A.O.
• Department of Finance. Department of Finance. Matthew Perky, Department of Finance.

Summary: Assembly Budget Subcommittee No. 6 heard the Governor’s May Revision proposals for the judicial branch, the Board of State and Community Corrections, the Department of Justice, and the California Department of Corrections and Rehabilitation. The Legislative Analyst’s Office opened with a warning that the state budget remains structurally imbalanced and urged the Legislature to avoid new ongoing spending unless offset by reductions elsewhere. In the judicial branch discussion, the Judicial Council highlighted language access funding, appellate court security, a backfill for the state court facilities construction fund, and an extension of the lactation room mandate; Finance supported most items but suggested reporting language on interpreter costs and reducing the General Fund backfill. Members raised concerns about judicial vacancies, long-term salary freezes, remote hearings, and the lack of progress on court staffing in some counties. For the Board of State and Community Corrections, the administration proposed $10 million one-time each for the Missing and Murdered Indigenous People grant program and a human trafficking vertical prosecution grant program. The LAO said both should be weighed against other priorities and suggested the Legislature consider whether the Tribal Nations Grant Fund could support MMIP work, while Finance said it preferred General Fund support and wanted more review before any fund swap. Members strongly supported MMIP funding and asked whether ongoing support would be considered. On the human trafficking grant, Finance said BSC was a good fit because of its grant administration experience and prior vertical prosecution work, while legislators asked why the program was not placed with the Office of Emergency Services as originally contemplated in prior legislation. The Department of Justice presented antitrust litigation funding, Medi-Cal Fraud and Elder Abuse staffing, completion of organized retail criminal enterprise cases, and trailer bill language for a continuous appropriation from the Victims of Consumer Fraud Restitution Fund. The LAO supported the antitrust account use but questioned the Unfair Competition Law Fund’s ability to cover the full request without General Fund repayment, and recommended against a continuous appropriation for the restitution fund in favor of a more limited mechanism with legislative oversight. Finance said the fund would remain solvent and defended the continuous appropriation as necessary to pay victims promptly. In the CDCR portion, the largest discussion centered on the Boston Consulting Group efficiency review and sharply reduced savings estimates; LAO said the department had not fully explained the proposed position eliminations or future $100 million savings target, while Finance said the work reflected deeper analysis and ongoing efforts to find savings. Members repeatedly pressed CDCR and Finance on the gap between earlier promised savings and the revised figures. CDCR also outlined population projections showing continued declines in prison and parole populations, while LAO again urged the state to close an additional prison to save ongoing costs. The department then walked through several May Revision items, including workers’ compensation funding, a Corcoran honor housing dorm, incarcerated firefighter pay implementation, an incarcerated menopause program, mental health receiver staffing, mental health resource teams and crisis intervention teams, medical classification staffing changes, and AI note-taking for the electronic health record. LAO generally recommended limiting-term funding and more reporting for many of these proposals, while Finance defended them as necessary ongoing investments or court-ordered obligations. Members questioned the cost of workers’ compensation, the need for more prison closures, the lack of funding for women’s facility violence prevention, and the timing and transparency of the BCG savings process. No votes were taken.

Transcript Highlights:

• This gap could grow larger.
• Amen Nalban, Department of Finance.
• Department of Finance.
• Steve Wells, Department of Finance.
• All right, Finance, someone from Finance is here. That's right.

Summary: The hearing opened with budget framing from the chair and the LAO, who said the May Revision addresses roughly a $14 billion budget problem and that the environment and transportation subcommittee’s proposals account for about $1.9 billion of the solution. The LAO urged members to focus on solutions that do not worsen out-year deficits, to preserve reserves, and to defer major policy changes that are not necessary to pass the budget, including the newly introduced water-related trailer bills. Members also raised concern about a late-dropped Olympic-related trailer bill, which the LAO likewise suggested should be deferred for fuller review. The first major item was the Delta Conveyance Project and related water quality control plan trailer bills. The administration argued the proposals would streamline permitting, water rights proceedings, judicial review, and land acquisition, and would clarify DWR’s bond authority for the project. DWR said the project is needed to protect water supply reliability against drought, earthquakes, sea level rise, and other climate-related disruptions, and that the tunnel would help move water when conditions are wet and safer for the environment. Committee members from both parties questioned the timing, the use of budget trailer bills for major policy changes, the scope of the CEQA and water-rights changes, the lack of a bond cap, cost growth, and eminent domain protections. The LAO recommended deferring both water trailer bills without prejudice. Public comment was sharply divided, with labor, water agencies, and some business groups supporting the project as climate adaptation and reliability infrastructure, while environmental, tribal, fishing, county, and community groups opposed it as an attempt to bypass public process and weaken protections. The committee then briefly heard the DMV’s Digital Experience Platform fee trailer bill, which would reinstate a $1 system improvement fee to help fund the vehicle-registration phase of the project. DMV said the fee would raise about $7 million annually and offset roughly $59 million to $60 million of project costs, while the LAO noted it would help but would not solve the Motor Vehicle Account’s broader structural gap. The hearing then moved to California High-Speed Rail, where the new CEO presented an updated plan and said the project remains a major climate and infrastructure investment. He reported a revised Merced-to-Bakersfield cost range of $34.9 billion to $38.5 billion, said the agency is trying to reduce risk through direct procurement of materials, and argued that stable annual funding is needed to avoid higher costs from delays.

Transcript Highlights:

• Laura Yala, Department of Finance, has no additional comments.
• But there's a gap in the middle, and I am very concerned if we don't fill that gap.
• Yeah, Lizbeth Castillo with the Department of Finance.
• From the Department of Finance, nothing further to add.
• First, anything from the Department of Finance? Finance or the LAO?

Keywords: 988, house, all

Transcript Highlights:

• Yeah, we have a Senate Finance.
• Senator Woods, you also are a member of Senate Finance.
• Today we have a hypersonic gap. They're outpacing us. Today we have a hypersonic gap.
• A yes would send it to Senate Finance.
• Then the Senate Finance Committee. Senate Bill 99.

Keywords: 996, all

Transcript Highlights:

• Uh, Division II Finance Division.
• a<00:15:14.240> couple finance committee meeting, a couple finance committee meeting,
• Um, now just to kind of clarify finance.
• ,<00:20:53.679> I a little bit on the troubled finance, I a little bit on the troubled finance
• But we do need to look at the gap.

Keywords: 1189, house, all

Summary: The Finance Division met to consider two bills: HB 112 and HB 1399. On HB 112, members debated a proposal tied to civics education requirements for public higher education. Supporters argued the measure would reinforce basic civic knowledge and noted that a similar high school requirement had already been enacted with little apparent fiscal impact. Opponents said the legislature should not dictate university curriculum and raised concerns about administrative burden and precedent. The committee voted 5-3 to recommend ought to pass. The committee then heard testimony on HB 1399, which concerned Claremont and retroactive school building aid related to past construction during the state moratorium on building aid. A Claremont representative explained the district’s history, estimated the lost state aid, and said any funds would likely be used for contingency, tax relief, or future liabilities, while preferring normal building aid participation going forward. Members discussed whether the issue reflected state policy, local governance, or both, and whether the bill would create an unfair retroactive precedent or a broader statewide obligation. After discussion, the committee voted on an ITL motion for HB 1399. The motion failed, and the committee instead approved the bill 7-1. The chair then closed the hearing and adjourned the meeting.

Transcript Highlights:

• Paula Flanisher Tang with the Department of Finance.
• As a commissioner, I want to support the gaps.
• Anything from the Department of Finance or LAO?
• Kayla Knott, Department of Finance: Nothing further to add.
• Is there anything from the Department of Finance or the LAO? Finance: Nothing further to add.

Keywords: 988, house, all

Transcript Highlights:

• early stage gap.
• gap of approximately $1 million. gap of approximately $1 million.
• fill an essential early stage gap. fill an essential early stage gap.
• Um further member this to finance.
• gap here. gap here.

Keywords: 1187, senate, all

Transcript Highlights:

• But there's a gap in the middle, and I am very concerned if we don't fill that gap that our constituents
• Department of Finance, nothing to add.
• It's a huge gap in our system.
• Department of Finance: Nothing further to add.
• First, anything from Department of Finance or the LAO? Sima, Department of Finance, nothing to add.

Summary: The committee heard a budget oversight hearing on the Department of Health Care Services, focusing first on the overall Medi-Cal budget and a March General Fund loan to cover a current-year shortfall. DHCS said the 2025-26 budget proposal totals $193.4 billion, with Medi-Cal projected at $188.1 billion total funds and $42.1 billion General Fund, driven by higher enrollment, pharmacy costs, managed care growth, and costs tied to eligibility expansions and the COVID-era redetermination unwinding. The department said the $3.44 billion loan was needed to manage cash flow and ensure timely payments to providers and plans, while the LAO noted Medi-Cal’s cash-basis budgeting creates volatility and that more detailed estimates would come with the May Revision. Members discussed federal Medicaid threats, the need for transparency on cost drivers, and the impact of pharmacy spending, long-term care, and immigration-related coverage expansions. The second major topic was family health programs, including California Children’s Services, the continuous coverage unwinding, and opioid settlement fund spending. DHCS described CCS funding methodology changes, ongoing county stakeholder work, and a delayed rollout of CCS monitoring and oversight until July 1, 2025, while county representatives and advocates argued the program is underfunded and asked for more technical assistance and a delay in implementation. On the unwinding, the department explained that federal redetermination flexibilities helped maintain coverage after the pandemic, but the Governor’s budget proposes ending them at the end of June 2025; advocates urged making the flexibilities permanent to avoid coverage losses. For opioid settlement funds, DHCS and Finance said the budget increases funding for naloxone distribution while reducing other harm-reduction spending based on updated settlement revenues, prompting criticism from members and public commenters who argued the change would weaken effective harm-reduction programs. The hearing also included an update on Proposition 35 implementation. DHCS said the voter-approved measure continuously appropriates MCO tax revenues beginning in 2025, with up to $4.6 billion annually available for specified Medi-Cal and provider investments in 2025 and 2026, but implementation depends on consultation with the required stakeholder advisory committee. The department and LAO noted uncertainty about future federal rules affecting the MCO tax after 2026. Public testimony largely supported maintaining Medi-Cal expansions, protecting immigrant coverage, preserving harm-reduction funding, and increasing support for community health workers, pediatric dental care, and CCS county administration. No votes were taken during the portion of the hearing provided.

Transcript Highlights:

• It closes a gap in 16B that we coffers.
• fill that gap now. >> Any follow-up, Trish Scott?
• fill that gap now. >> Any follow-up, Trish Scott?
• say it should fill that gap now.
• The bill fills a gap between that strong law and the current process.

Transcript Highlights:

• Um, and I'd like supply gap last year.
• So we commissioned last year this housing supply gap analysis to try to look at what are the gaps across
• The total gap for 2024, so we're calling that the current housing supply gap, is 206,000 units, roughly
• <00:24:36.480> and housing infrastructure financing and housing infrastructure financing and
• you that uh in our housing supply gap you that uh in our housing supply gap analysis,<01:04:08.640

Keywords: Meeting Start 00:00:15 Roll Call 00:00:45 Discussion of Pro-Growth Housing Policies 00:02:33 Adjournment 01:17:15, 958, all

Summary: The Housing Task Force 2.0 reconvened with several new members and heard a presentation from Kentucky Housing Corporation Executive Director Winston Miller and Deputy Executive Director Wendy Smith. They framed the task force’s work as a practical effort to address Kentucky’s housing shortage, update members on the current housing landscape, summarize existing state and federal resources, and suggest areas for the task force to focus on over the coming year. KHC said its 2024 housing supply gap analysis found Kentucky is short about 206,000 housing units, split roughly evenly between rental and homeownership, and projected the gap could grow to 287,000 units by 2029 if current trends continue. They emphasized that every county in Kentucky needs more housing, that the 2008 housing crisis and loss of construction capacity remain major causes of the shortage, and that current pressures include high interest rates, rising insurance and tax costs, construction cost inflation, and housing prices and rents growing faster than incomes. KHC also said homelessness has risen in Kentucky, with point-in-time counts showing double-digit increases in recent years. The presenters reviewed existing resources, including federal programs, the Kentucky Affordable Housing Trust Fund, the rural housing trust fund, KHC mortgage and down payment assistance programs, and the state mortgage interest deduction. They said these resources are important but insufficient to close the gap, and noted that a proposed federal FY2026 budget would cut HUD programs by 44%, potentially removing about $286 million from Kentucky housing resources, though no action has been taken yet. They urged the task force to consider stronger, more flexible tools such as a revolving loan fund, a state affordable housing tax credit, and economic development and employer-assisted housing incentives, and pointed to Indiana’s housing infrastructure and regional development funds as examples. No votes or formal actions were taken in the portion provided.

Transcript Highlights:

• Some gaps have reached historic lows.
• to narrow and close those gaps by race and gender?
• what types of economic events have caused the Black-White wealth gap or employment gap to widen?
• But there is, at the end of the day, always been a gap.
• Treasuries needed to finance the debt to skyrocket.

Bills: SB257

Keywords: supply chain resilience, critical supply chains, critical goods, manufacturing, domestic manufacturing, reshoring, nearshoring, supply chain security, supply chain shock, supply chain disruption, critical infrastructure, emerging technologies, semiconductors, microelectronics, artificial intelligence, quantum computing, robotics, advanced manufacturing, blockchain, cybersecurity

Transcript Highlights:

• We saw a huge need, gaps in service that will be shared.
• So, you know, we talk about gaps, and that gap is really from that historical, inherent distrust over
• So, you know, we talk about gaps, and that really is a gap from that historical, inherent distrust over
• Department of Finance. Victoria Chin, Department of Finance.
• Department of Finance. No, just kidding. This meeting is adjourned.

Summary: The hearing focused on the Missing and Murdered Indigenous People (MMIP) grant program under the Board of State and Community Corrections and related Department of Justice efforts. BSCC reported that it now administers 36 MMIP grants across three cohorts, with awards ranging from $436,000 to $1 million, plus five collaborative grants at $2 million each, totaling $35.4 million awarded to federally recognized tribes. Testimony from tribal leaders and grantees described how the funding supports prevention, family advocacy, domestic violence services, law enforcement coordination, youth programming, culturally grounded healing, and new tribal public safety positions such as investigators, social workers, and drone operators. Speakers repeatedly emphasized that the crisis is longstanding, tied to generational trauma, and that the grant has helped build trust and infrastructure in tribal communities. Several witnesses and committee members urged continued and preferably ongoing funding, noting that demand now exceeds available one-time money. BSCC and tribal representatives described outreach efforts that increased participation from four applicants in cohort one to 20 in cohort two and more applicants than funding in cohort three. Tribes also raised implementation concerns, especially the burden of quarterly narrative reporting, limited staff capacity, and the need for flexible administration. BSCC said it uses steering committees, separate small- and large-project categories, orientations, monitoring visits, and technical assistance to support grantees. Tribal leaders and advocates stressed that the program should remain accessible without requiring a waiver of tribal sovereignty. The second major topic was DOJ’s update on AB 3099, the Tribal Assistance Program, and the tribal police pilot under AB 134. DOJ officials said the Office of Native American Affairs and the Division of Law Enforcement have been conducting outreach, trainings, listening sessions, and coordination with tribal, local, state, and federal partners to address Public Law 280 jurisdictional issues, improve reporting and data, and support Feather Alert and MMIP-related resources. DOJ said the AB 3099 report is in internal review and that the tribal police pilot is moving forward with the Yurok Tribe as a participant, with a July 1, 2026 start date. DOJ and tribal witnesses said the pilot’s main barriers are cost and, for some tribes, the waiver of sovereign immunity. No votes were taken, and the hearing ended with broad support for expanding and sustaining MMIP-related funding and infrastructure.

Transcript Highlights:

• resources from Prop 1, is we actually have created, different than previous Homekey rounds, kind of a gap-financing
• financing.
• There is a lane there, essentially, to do some gap financing.
• So that's the aggregate and the nature of housing finance. And that's why we talk about gap.
• gaps.

Summary: The Assembly Subcommittee on State Administration held a budget hearing focused heavily on housing, homelessness, and related administrative proposals. HCD reported that California housing production has increased, with 2023 completions up 13% from 2022 and entitlement and construction timelines improving, while members and advocates criticized the Governor’s January budget for zeroing out or sharply reducing several housing programs. Public testimony urged funding for affordable housing production, preservation, youth housing, CalHome, LIHTC, HAP, and related programs, and several speakers argued the state should not pull back after recent progress. A major policy item was trailer bill language to allow HCD to access “excess equity” in existing affordable housing projects and recycle those funds into new or preserved housing. HCD and the LAO said the proposal could unlock tens or hundreds of millions of dollars, but members wanted guardrails and clearer statutory direction to ensure the funds stay within the intended housing purposes. The committee also discussed encampment resolution funding; HCD said the proposal would shift expenditure deadlines to the date of award rather than appropriation, while the LAO raised concerns about limited outcome data and urged the Legislature to use upcoming reporting before deciding on future funding. The hearing also covered HCD trailer bills to consolidate default reserve funds into a centralized continuously appropriated account and to clarify reporting requirements for early rounds of the Homeless Housing, Assistance and Prevention program. HCD requested funding to implement chaptered legislation, including a new tribal housing program and reporting-related bills, and also sought extensions for certain reappropriations, including Homekey and REAP 2 deadlines. Public commenters and regional agencies supported flexibility for REAP 2 timing and other housing-related adjustments. Finally, the Business, Consumer Services and Housing Agency presented the Governor’s reorganization proposal to split the current agency into a Housing and Homelessness Agency and a Consumer Protection Agency. The administration said the change would improve focus, efficiency, and coordination, but the LAO and several members questioned whether it would truly save money or improve accountability, especially given the need for new leadership, possible staffing changes, and the fact that the plan had not yet been formally submitted for review. No votes were taken during the hearing.

Transcript Highlights:

• We believe that it is time to revisit the school finance formula.
• This gap has been masked by federal pandemic recovery funds.
• Chelsea has a $7 million gap because of the inflation gap.
• We wouldn’t have this gap.
• I understand how critical it is to fill in gaps as soon as we can.

Keywords: 995, all

Summary: The Joint Committee on Education opened a hybrid public hearing on a large slate of bills related to school buildings, school finance, technology, data privacy, safety, and related education issues. Chairs Jason Lewis and Ken Gordon outlined procedures for the hearing, including two-minute testimony limits and the plan to group similar bills together. Several bills drew no testimony and were closed without further discussion, while others drew extensive testimony from legislators, school officials, parents, advocates, and educators. A major theme was school safety and student well-being. Lori Al-Hadeth testified in support of bills on alert systems in public schools, describing the loss of her daughter in the Parkland shooting and urging adoption of Alyssa’s Law-style panic alert technology. Representative Gallagher and disability advocates also supported a bill authorizing, but not requiring, airway clearance devices in schools, arguing they could save lives in choking emergencies and provide an option for people who cannot use the Heimlich maneuver. Another bill on reducing cafeteria waste drew support from a legislator and a Lexington sustainability official, who said installing dishwashers during construction would reduce waste and long-term costs. Much of the hearing focused on Chapter 70 school funding and the inflation cap. Senator Pavel Payano, Senator Sal DiDomenico, Representative Senna, and multiple local officials and school committee members from Bridgewater, Chelsea, Groton-Dunstable, and other districts argued that the 4.5% cap on inflation adjustments has left schools underfunded during years of high inflation, forcing layoffs, larger class sizes, and cuts to programs and student supports. They urged bills to eliminate the cap, restore lost funding, increase the Commonwealth’s share of the foundation budget, or create commissions to study reforms. Testimony also highlighted the impact on special education, English learners, and low-income students, with Chelsea witnesses saying the cap has cost their district about $7 million annually. School construction and MSBA reform were the other major topic. AIA Massachusetts, Boston Public Schools, Lynn officials, and AFT Massachusetts described aging facilities, overcrowding, deferred maintenance, and the difficulty of financing new schools under current reimbursement rules. Boston officials said the district has many pre-World War II buildings and has only built a handful of new schools in decades, while Lynn leaders said reimbursement rates have fallen well below the statutory 80% because of caps and ineligible costs. Witnesses urged modernization of the MSBA program, higher reimbursement rates, and more resources for school construction. The committee also heard support for a bill to study the adequacy and equity of the school building program, and chairs indicated some bills would be closed after no one signed up to testify.

Transcript Highlights:

• and bond financing, right?
• So that's the aggregate and the nature of housing finance, and that's why we talk about gap financing
• The California Housing Financing Agency which will focus on continuing providing financing tools for
• Finance Committee as well.
• gaps.

Keywords: 988, house, all