Transcript Highlights:

• Where does not come out of these 2 allocation?
• There is any ESE guaranteed allocation.
• Beyond that, the ESE guaranteed allocation.
• We go to resources with with the district.
• that don't have that resource.

Keywords: 999, senate, all

Transcript Highlights:

• We have only so many... ...resources to spend on climate change mitigation.
• Matthew Botella with the California Air Resources Board.
• Matthew Botella with the California Air Resources Board.
• So that's less funding available to allocate to local governments.
• Courtney Smith, California Air Resources Board.

Summary: The meeting began with a budget subcommittee hearing on a proposed sustainable aviation fuel (SAF) tax credit trailer bill. Assembly Members Ávila Farías and another member spoke in support, emphasizing union jobs, refinery investments, and the need to decarbonize aviation. The Department of Finance said the Governor’s proposal would provide a $1 to $2 per gallon credit against the diesel excise tax for SAF sold in California from 2026 to 2036. The Legislative Analyst’s Office recommended rejecting the proposal, arguing it is a relatively expensive way to reduce emissions, has uncertain environmental benefits, could significantly reduce transportation revenues, and conflicts with the spirit of voter restrictions on transportation taxes. Committee members questioned whether the credit would mainly benefit out-of-state producers, whether firms would have diesel tax liability to use the credit, and whether the proposal would shift production away from renewable diesel and raise fuel prices. Administration and CARB staff said the credit is intended to support aviation decarbonization, preserve jobs, and help keep California on track toward its 2045 climate goals. LAO and UC Berkeley testimony countered that the policy could mostly subsidize existing technologies, that feedstock supply is limited, and that the net emissions benefit may be small relative to the cost. Members also asked about the effect on local streets and roads, SHOP, and trade corridor funding; Finance estimated a $165 million annual revenue impact would reduce those programs, while LAO said the reductions would mean fewer projects over time. No vote was taken, and the chair said the issue would remain open for further discussion. The committee then moved to a zero-emission vehicle incentive trailer bill proposing a one-time $200 million appropriation to CARB for a new point-of-sale incentive program focused on first-time buyers and leases of new and used light-duty ZEVs. Supporters said the program would help offset the loss of the federal EV tax credit, maintain momentum in California’s ZEV transition, and use a one-to-one match with participating automakers to double the state’s investment. LAO recommended rejection, saying the proposal does not meet the high budget bar this year, lacks enough program detail to evaluate, is unlikely to move sales significantly given the size of the appropriation, and could duplicate existing state and utility programs. Members asked about current incentives across light-, medium-, and heavy-duty sectors, the recent decline in ZEV sales, and whether the program would help lower-income buyers rather than subsidize purchases that would have happened anyway. CARB said the proposal is meant to fill a gap in the light-duty market, where sales fell sharply after the federal credit expired, and noted existing programs for other vehicle classes. The Department of Finance also addressed a separate question about the Motor Vehicle Account, saying a previously planned GGRF transfer was no longer needed because updated forecasts showed the fund had sufficient balances, though LAO said the account still has a structural long-term imbalance. The discussion ended before any vote or action on the ZEV proposal.

Transcript Highlights:

• are raised, allocated, and managed across multiple levels of government.
• Efficiency means that the system aligns resource allocations at every level to the goals of the statewide
• and districts where local resources are most limited.
• there to create the full Public School Fund allocation for the year.
• resources, and these are all combined to get a total per-student amount.

Summary: The House and Senate Education Committee first approved minutes from February 2 and 3, then heard an interim study proposal on Arkansas adult education and the Excel Center model, presented by Goodwill Industries of Arkansas and the University of Notre Dame’s Lab for Economic Opportunities. Witnesses argued that about 300,000 Arkansas adults lack a high school diploma or GED and described the Excel Center as a diploma-granting public charter option for adults 19 and older, with wraparound supports such as child care, transportation, tutoring, life coaching, and career services. They said the Arkansas campuses are not state-funded, highlighted growth in enrollment and graduation outcomes, and cited research showing improved employment, earnings, and reduced criminal justice involvement for graduates. Committee members discussed the role of Goodwill’s nonprofit mission, the need for multiple adult education pathways, and the relationship between adult education challenges and broader state efforts such as LEARNS and ACCESS. The committee then debated the interim study proposal procedure, including whether questions should have been taken before the vote. The motion to adopt the ISP passed, and members noted that the study would broadly examine adult education, GED testing, high school diplomas, charter schools, in-person adult education, and funding allocation. Several members asked for follow-up information on current adult education funding, the availability of Excel Centers, and the criminal justice study results. After that, staff from the Bureau of Legislative Research gave a detailed adequacy funding overview for Arkansas K-12 education. They reviewed national funding principles and then explained Arkansas’s revenue streams and distribution system, including general revenue, the Educational Excellence Trust Fund, the Educational Adequacy Fund, local property-tax revenues, and facilities partnership funding. They also walked through the state’s foundation formula, categorical aid, supplemental aid, and additional funding, including the per-student matrix amount of $7,771 for 2025 and how funds are allocated to districts and charters. Members asked about student support staff, special education high-cost occurrences, ALE funding, teacher salary equalization, and the Excel Center’s treatment in funding totals; staff said some of those questions would be addressed in a later spending presentation. The meeting ended after the committee was told the department was present mainly to answer questions and no further business remained.

Transcript Highlights:

• We have thousands of generation resources and thousands of customer resources, and being able to take
• Water, you know, is a really scarce resource in this state.
• So the transmission is going to be allocated to them.
• Not even 5% of our allocation.
• Match your resources to your location.

Summary: The Committee on State Affairs convened to discuss data centers and their impact on Texas's energy infrastructure. The meeting featured testimony from key representatives of the Public Utility Commission (PUC) and ERCOT, who outlined the evolving landscape of energy generation and the challenges posed by the rapid growth of data centers. Notably, ERCOT reported over 450,000 MW of generation resources planned for connection, with a significant portion attributed to data centers, which now represent around 87% of new large load interconnection requests. The committee explored proposed changes to the interconnection process, including a new 'batch study' approach aimed at streamlining the approval of multiple projects simultaneously. This change is intended to address the challenges of managing numerous simultaneous requests and to provide more certainty for developers regarding their energy needs. Testimonies emphasized the importance of ensuring that the costs of infrastructure upgrades are borne by the data centers rather than residential ratepayers, with discussions around the financial commitments required from developers. Several data center developers also provided testimony, highlighting the economic benefits of their projects, including job creation and increased local revenues. They expressed concerns about the potential for a moratorium on future growth due to the new interconnection rules and emphasized the need for a collaborative approach to address water usage and environmental impacts. The committee plans to continue discussions on these topics in future hearings, with a focus on balancing economic growth with energy reliability and resource management.

Transcript Highlights:

• It provides the resources.
• , case processing, and due process resources.
• We're putting those into the base allocation.
• So we do increase the base per student allocation.
• Are we using the educational enrichment allocation?

Summary: The Senate opened with prayer, the Pledge of Allegiance, and several gallery introductions before taking up Committee Substitute for Senate Bill 168, the Tristan Murphy Act, on mental health. Senator Bradley explained that the bill is intended to divert clinically appropriate defendants with mental illness from jail to treatment, create pretrial mental health diversion programs, expand grant uses for mental health and substance abuse reinvestment, require evaluations and treatment follow-up in certain probation and prison settings, add Hillsborough County to a forensic hospital diversion pilot, and establish a Florida Behavioral Health Data Repository. Senators from both parties spoke in support, emphasizing treatment over incarceration, public safety, and the Murphy family’s role in the bill. The Senate passed the bill 37-0 and then recorded 37 co-sponsors. The chamber then moved into presentations on SB 2500, the 2025-26 General Appropriations Act. Chair Hooper said the Senate budget totals $117.4 billion, reduces overall spending from the prior year, maintains reserves, keeps employee health contributions level, and includes major investments in water quality, transportation, education infrastructure, and nearly $1 billion in education capital outlay. Committee chairs outlined their portions of the budget, including increased funding for K-12 schools and scholarships, higher education workforce programs, Medicaid and health services, corrections and courts, transportation and housing, and environmental restoration such as Everglades and water quality projects. Members then asked extensive questions, especially about education funding, school choice, AP/IB and accelerated programs, the Family Empowerment Scholarship, and the FEFP calculations. Senator Burgess repeatedly explained that scholarship funding is being moved “below the line” to improve tracking and that the Senate position is to preserve funding while giving districts more flexibility. Senators also questioned the APD wait list for disability services, opioid settlement spending, arts funding, the My Safe Florida Home condo pilot, and proposed IT and agency restructuring. Several chairs said some issues would be resolved in conference, and no final vote on the budget was taken in the portion provided.

Transcript Highlights:

• How we allocate those costs is going to be extremely important.
• They've got their allocation. And so that's not going to change.
• have really been concentrated in those type of resources.
• reevaluating 4CP and looking at alternatives to allocating costs.
• So the transmission is going to be allocated to them.

Keywords: 1184, house, all

Transcript Highlights:

• Twelve months, and the contract hasn't been allocated yet. Well, it's typical.
• And will the positions allocated here help them grow to that level?
• So then how do you route them to their local resources?
• They can only allocate to the 988 centers what they are given to allocate. Yes.
• And even AB 988 says that the 988 centers have to be fully resourced first.

Summary: The subcommittee heard presentations from the Department of State Hospitals (DSH), the Commission for Behavioral Health, and the Department of Health Care Services (DHCS) on budget proposals and implementation updates. DSH outlined its proposed 2026-27 budget, including funding for patient operating expenses, IST solutions savings, conditional release program costs, LPS bed allocation changes, electrical infrastructure projects at Napa and Patton, SB 380 transitional housing feasibility work, and expanded dental services at Metropolitan and Patton. DSH also reported that it has met court-ordered IST treatment benchmarks in the Stiavedi v. Clinton case, with average time to initiate treatment down to about five days and pending placements reduced to roughly 250, while noting that Proposition 36 could increase referrals and SB 1323 may divert some individuals earlier into community-based treatment. Members asked about rising outside hospitalization costs, Medicare enrollment, the timing and structure of capital projects, and whether IST solution funds are being fully used; DSH said the savings reflect slower-than-expected ramp-up of community programs and that the Central California FACT replacement program is still on track for January 2027 activation. The Commission for Behavioral Health described its role under the Behavioral Health Services Act (BHSA), including data, evaluation, grantmaking, technical assistance, and transparency work. It highlighted the new statewide Innovation Partnership Fund, a five-year, $20 million-per-year program with small and large grant categories; the first RFA drew strong interest, with more than 400 questions and over 1,000 bidders’ conference participants. The Commission also discussed a proposed extension to spend down about $4.1 million remaining for the Alcove Youth Drop-in Center grants so sites can finish implementation and Stanford can complete the final evaluation. Members asked about grant duration, whether projects can be renewed, what qualifies as innovation, and whether the fund could support service delivery rather than awareness campaigns or training; the Commission said awards are expected to be three-year contracts and that proposals must be new or meaningfully expanded approaches that support BHSA priority populations. DHCS reviewed major behavioral health changes under CalAIM and BH Connect, including peer support, mobile crisis, contingency management, traditional health care practices for tribal members, updated specialty mental health access criteria, and new substance use treatment standards based on ASAM’s fourth edition. DHCS reported strong contingency management results, with more than 13,000 members served and 95% testing negative for stimulant use during treatment, and said 21 Indian health care providers have been approved to offer traditional health care practices. It also described BH Connect initiatives such as the $1.9 billion access reform and outcomes incentive program, workforce investments, evidence-based practice expansion, IMD participation by four counties, and transitional rent services. On BHSA implementation, DHCS said it is not tracking individual county contract cuts but is monitoring county plans and statewide outcomes, while stakeholders raised concerns about local prevention and service gaps. DHCS also outlined its H.R. 1 implementation strategy, including outreach, streamlined renewals, exemptions for disabled, substance use, and medically frail individuals, and proposed clinic navigator and outreach funding; it said it has not yet produced a focused estimate of H.R. 1 impacts on behavioral health populations. The discussion ended with DHCS noting that B-CHIP bond funding has supported 437 infrastructure projects, creating 546 new or expanded facilities and more than 9,500 residential beds across the state.

Transcript Highlights:

• I'm pleased to present the highlights of the Agriculture and Natural Resources budget.
• I was wondering why we made that allocation change. Thank you.
• Safe schools allocation. Thank you, Madam Chair.
• What has been allocated this year versus what was allocated last year for that program?
• For local water projects this year, we allocated $175.4 million.

Transcript Highlights:

• This is also allocated to transportation purposes, largely.
• collection and this has been allocated collection and this has been allocated partially<00:18:17.640
• <00:20:27.919> to<00:20:28.080> transportation allocated to transportation allocated to
• of flexibility on how this is allocated of flexibility on how this is allocated and<00:26:34.399
• uh does a fair amount towards allocating uh does a fair amount towards allocating use<00:48:21.280

Keywords: 1183, house

Summary: The Transportation Working Group met on January 15, 2025, with Chair John Kosnik opening by saying the committee expected to pass a transportation bill this year and emphasizing efficient use of transportation revenues, maintenance of roads and transit, and safety. Members and staff introduced themselves, and several representatives noted their interest in roads, bridges, and regional transportation needs. Kosnik also said he had spoken with Representative Kel about leadership arrangements and stressed that bipartisan support would be needed for a transportation bill. House Fiscal Staff’s Andrew Lee and House Research’s Matt Burus then gave an overview of transportation finance, focusing mainly on highways and transit. Burus explained Minnesota’s highway funding structure, including the constitutional Highway User Tax Distribution Fund and the related Trunk Highway Fund, County State-Aid Highway Fund, and Municipal State-Aid Street Fund. He reviewed the main revenue sources: the motor fuels tax, motor vehicle registration tax, motor vehicle sales tax, portions of the general sales tax tied to auto parts, vehicle rentals and leases, and the retail delivery fee. He noted several changes from 2023 legislation, including indexing of the gas tax, creation of the Transportation Advancement Account, and the retail delivery fee, which began in July 2024 and therefore would affect fiscal year 2025 rather than the fiscal 2024 data shown. The presentation also covered how highway dollars flow through constitutional formulas, including the 95/5 split from the Highway User Tax Distribution Fund, with the 5 percent set-aside used for town roads, town bridges, and flexible highway purposes such as turnbacks. Burus distinguished trunk highway bonds from general obligation bonds and explained that both are debt-financing tools for transportation projects, but with different repayment sources and uses. No votes or formal actions were taken at this informational meeting.

Transcript Highlights:

• We know districts hire those positions and they utilize their instructional resources to do that.
• We know districts hire those positions and they utilize their instructional resources to do that.
• We know districts hire those positions and they utilize their instructional resources to do that.
• We know districts hire those positions and they utilize their instructional resources to do that.
• And so there's a resources to do that.

Bills: HB0150

Keywords: Wyoming business council, economic development, task force, evaluation, policy reform, 916, all

Transcript Highlights:

• Presentation on the resource allocation part one, and then we'll roll right into part two.
• Our topic for today is resource allocation, and we'll dive right in.
• analysis and resource allocation review each by That this is accomplished by completing an expenditure
• analysis and resource allocation review each by NEM.
• , and district-level resources.

Keywords: 1204, all

Summary: The joint education committee continued its adequacy study with a Bureau of Legislative Research presentation on resource allocation, covering how Arkansas school spending is mapped to the adequacy matrix and how expenditures are split between foundation funds and other funding sources. Staff explained the methodology, district and school categories used for comparisons, and key findings for matrix spending, including that classroom teachers account for the largest share of matrix expenditures and that districts spend more per student than charter districts in most categories. Members asked for additional breakdowns on waivers, trend data, and more detailed spending by district type, and staff agreed to provide follow-up information. The committee then reviewed non-matrix spending, including instructional aides, facilities, school safety, mental health services, dyslexia support, gifted and talented, career and technical education, and other items not explicitly in the matrix. Staff noted that non-matrix spending exceeded $2 billion and that superintendents consistently identified mental health services, school safety, and dyslexia support as important needs not fully captured in the matrix. Members raised concerns about dyslexia identification and funding, school safety, facilities spending, and whether some items such as food service should be included in adequacy calculations. Staff and Department of Education representatives explained that some expenditures are difficult to isolate because of coding and commingled funds, and that certain items are funded outside the matrix or through separate programs. In the final section, staff summarized total spending across matrix and non-matrix items, noting that districts spent more than the foundation amount per student and that most total spending was on matrix resources. They also highlighted data limitations, including two matrix lines that cannot be fully tracked through current accounting codes. The chair then proposed postponing the second part of the presentation until a May meeting after the fiscal session, with additional time set aside to address questions for both staff and the Department of Education. The committee agreed, and the meeting adjourned without any formal vote on policy changes.

Transcript Highlights:

• The education enrichment allocation, is that the decategorized money that you are referring to?
• As I have expressed, I am concerned about making sure that the money is allocated for WAS A PRINCIPAL
• In this House, safety is one of the things that we think is a top priority for the resources we allocate
• In this House, safety is one of the things that we think is a top priority for the resources we allocate
• WE ALLOCATE.

Summary: The Pre-K-12 Budget Subcommittee met with a quorum and considered three bills. HB 157, School Teacher Training and Mentoring Program, would create a Department of Education program allowing school districts and charter schools to place current or retired high-performing teachers in D- or F-rated schools as mentors, with a proposed $3,000 stipend per mentor per mentee. Members questioned the funding source and contract-time implications; the sponsor said the program would use previously decategorized education funds and that mentoring could be done within existing planning, before-school, after-school, or weekend time. An amendment clarifying that the bill would use a contract template rather than a DOE contract was adopted, and the bill was reported favorably. The committee then heard CS/HB 859, Exceptional Students and Video Cameras in Public Schools, which would require school boards to adopt policies for video cameras in self-contained ESE classrooms upon a parent request, with redaction of other students from footage. Public testimony strongly supported the bill, including emotional accounts from a parent of a nonverbal adult with autism who described past abuse in a classroom and from the Autism Society of Florida, which argued cameras are a necessary safety measure for vulnerable students and noted other states already allow or require them. Members emphasized student safety and the need to fund the policy, and the bill was reported favorably. Finally, the committee considered HB 561, Educator Certification, which aims to reduce barriers for experienced educators returning to the classroom by expanding temporary certificate eligibility to those with expired Florida certificates, allowing prior subject-area exam results to count for reinstatement, and updating references related to educator professional learning support. The sponsor said the bill preserves standards while making reinstatement more efficient and less costly. There was broad support from members, who noted the value of retaining experienced teachers, and HB 561 was also reported favorably. The committee then adjourned.

Transcript Highlights:

• Student activities versus how much we allocated in the model? >> Mr.
• allocates $105 and then $35 for the school districts with more than 2,000.
• Uh, given the large influx of resources,...
• Um [snorts] during years no ECA was allocated.
• And then also related to school resource officers, Related to school resource officers, you've also requested

Keywords: 916, all

Transcript Highlights:

• The SCFF is composed of three main components: a base allocation.
• Yeah, they are not allocated but approved, perhaps, as a result of this.
• committing additional resources to this, and I'm not entirely clear what that additional resource will
• So to your point, we think that these resources would be used with fidelity.
• We suggest a universal basic allocation with FTES instead. Thank you.

Keywords: 988, house, all

Transcript Highlights:

• State parks deployed over 50 resource advisors, or reeds, for short, and we partnered with, 50 resource
• . scoring the critical role in protecting public trust resources.
• While the funding set aside for State Parks is allocated for other purposes, there are other bond allocations
• We do have full funding allocated for the project.
• We could be using these resources to do a lot of other things.

Summary: The subcommittee heard presentations on the administration’s Proposition 4 spending plans for extreme heat mitigation and outdoor access, then took up SB 54 implementation, SB 707 textile producer responsibility, and recovery needs related to the Los Angeles fires at state parks. For the extreme heat chapter, agencies described funding for the Extreme Heat and Community Resilience Program, urban greening, urban forestry, fairground upgrades, and technical assistance for community-based climate programs. Witnesses emphasized that these are existing programs with strong demand, that technical assistance is important for reaching disadvantaged and tribal communities, and that the proposed funding would expand outreach and implementation capacity. Members asked for more detail on where funds have gone geographically, examples of successful projects, tree-planting totals, and how fairgrounds could better support fire staging and emergency preparedness. The LAO said the timing of the administration’s proposed funding generally made sense because the programs are already established, and no votes were taken. For outdoor access, State Parks, Fish and Wildlife, and Natural Resources described funding for new parks in underserved communities, deferred maintenance, state lands access, and several new or pending programs. State Parks said the park development program would fund roughly 48 projects and that deferred maintenance funding would address high-priority health, safety, and access needs. Fish and Wildlife said its lands program would improve visitor amenities and access on properties that often lack basic facilities. The Natural Resources Agency also outlined three newer outdoor-access proposals: expanding recreation in disadvantaged communities, enhancing natural resource values and trail access, and a nature/climate/education facilities grant program. The LAO distinguished between existing programs, which are ready to move forward, and the newer proposals, where the Legislature may want more input before funds are allocated. Members also raised concerns about park police vacancies, the need to track outcomes for accessibility investments, and whether Prop. 4 could help with wildfire-related recovery at state parks. CalRecycle then presented on SB 54, the plastics and packaging producer responsibility law, and members pressed hard on the delay in regulations. CalRecycle said it has held workshops, formed an advisory committee, selected the producer responsibility organization, and completed required baseline and covered-material reports, but needs more time to address complex comments and novel features such as source reduction and eco-modulated fees. Members expressed frustration that a statutory deadline was missed and asked for a concrete timeline; CalRecycle said it expects regulations in place by 2026, ahead of the PRO’s January 1, 2027 plan deadline. Finance said the Beverage Container Recycling Fund is currently healthy enough to support short-term loans for implementation. The committee also reviewed SB 707, the textile EPR law, which would create the nation’s first textile producer responsibility program; staff said the proposal would add positions and loan authority, and members noted the statutory deadlines for PRO approval, needs assessment, and later regulations. The hearing ended with discussion of the January Los Angeles fires’ damage to Topanga State Park and Will Rogers State Historic Park, where State Parks described extensive losses, emergency response work, and ongoing damage assessment. Members asked about FEMA eligibility, state funding sources, and community engagement in rebuilding, and the department said it is still assessing costs and will work with the public on reimagining the parks.

Transcript Highlights:

• The majority of these resources are being allocated into parts of the state where it is harder and more
• allocated<00:02:02.880> into<00:02:03.200> parts resources are being allocated into
• parts resources are being allocated into parts of<00:02:03.520> the<00:02:03.680> state
• <00:03:46.560> are provide clarity on how resources are provide clarity on how resources are
• that they need live, has the resources that they need to<00:04:36.880> succeed.

Keywords: 1183, house

Transcript Highlights:

• Um, to get resources into the system.
• [clears throat] um, with these resources [clears throat] um, with these resources that<00:09:04.959
• it um is that allocated in there? it um is that allocated in there?
• resources of their 10 million allocation resources of their 10 million allocation for<00:13:25.920
• We shouldn't come up with resources.

Keywords: 1183, house

Transcript Highlights:

• This team will provide us the resources necessary to do so.
• allocation to go up.
• fish allocation. and water safety, count number nine.
• Allocating those, they invoice us as soon as it's been allocated. majority of those dollars, I don't
• We haven't begun to allocate those because we don't want to over-allocate. money that we may not be able

Bills: SB1, SB 1

Keywords: appropriations, budget, state funding, education, healthcare, infrastructure, campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• you mean like a multi-year allocation?
• They also have tailored academic resources.
• And so I'm wondering why there's almost a $6 million allocation.
• , probably around 2.5%, we allocate it system-wide.
• This is intended to optimize remaining resources.

Summary: The committee heard the May Revision presentation for the Assembly Budget Subcommittee on Education Finance, with public comment focused heavily on K-12 priorities such as universal school meals, kitchen infrastructure, food service and custodial support, youth leadership grants, Special Olympics funding, English learner support, universal pre-K, literacy investments, and concerns about community college funding shifts. Speakers also urged support for expanded learning, teacher recruitment and training, and maintaining or increasing funding for community colleges and student support programs. Finance and the LAO then reviewed the Proposition 98 outlook. Finance said the May Revision lowers the 2025-26 Prop. 98 guarantee to $114.6 billion, about $4.3 billion below January, due mainly to lower revenue estimates, with smaller effects from attendance and property tax changes. The administration also described rebenching for universal transitional kindergarten and a one-time rebench tied to Los Angeles fire-related property tax losses, along with changes to the Public School System Stabilization Account, deferrals, and updated COLA assumptions. The LAO said the budget relies too much on deferrals and one-time funds, creates a structural shortfall, and should instead align ongoing spending with the guarantee and preserve a reserve buffer. Members questioned the TK rebench and the shift of funding from community colleges to K-12, asking why it was being applied retroactively and how colleges would be held harmless. Finance said the changes align funding with where TK costs are being incurred and that reappropriation funding and other adjustments would offset impacts on community colleges. The LAO argued the historical split formula is outdated and should be abandoned in favor of budgeting around current priorities rather than fixed percentages. Members also raised concerns about draining the rainy day reserve and using deferrals, while the LAO said preserving reserves would better protect against future volatility. The committee then moved to specific K-12 and education proposals. Finance outlined May Revision changes including state operations adjustments for the Department of Education, technical trailer bill changes, a $100 million student teacher stipend program administered by Kern County, and updates to the charter school facility grant program. The LAO recommended rejecting the proposed increases for expanded learning, literacy coaches, and the student teacher stipend as currently structured, while supporting the minimum grant increase for expanded learning. Members expressed support for teacher recruitment efforts but questioned whether one-time funding can sustain ongoing programs and whether the student teacher stipend should be targeted to shortage areas or low-income communities.

Transcript Highlights:

• And to the extent that there's additional resources, there's additional resources.
• And right now I'm concerned that by allocating these resources that you're going to be able to run with
• So, we received the federal allocation.
• Moving on to the mental health resource teams, this provides $4.8 million in 2026-27 to fund resource
• And then I'll need subsequent meetings to understand how you're allocating those resources. Okay.

Keywords: 987, senate, all

Summary: The committee held an informational hearing on the Governor’s May Revision proposals for labor, public safety/judiciary, and transportation, and no votes were taken. In Part A on labor, the Employment Development Department reviewed proposals for EDD Next document management system funding, updated UI loan interest costs, disability insurance and paid family leave benefit and administration adjustments, WIOA funding changes, UI administrative and benefit changes, school employee benefit adjustments, an EMT training reappropriation, and a technical correction tied to EDD Next. PERB discussed funding tied to AB 28 and AB 1, including litigation-related workload and new jurisdiction over legislative employees. DIR presented proposals for legal unit reclassifications, two major IT modernization projects, a new Cal/OSHA emerging technologies unit, a COIA reappropriation, and trailer bill language on electronic assessment payments and the DWC director salary cap. CalHR proposed additional funding for a consolidated employee assistance program contract, and CalPERS and CalSTRS presented budget adjustments tied to investment costs and state contribution changes. Members focused heavily on UI debt and interest payments, asking the administration for a plan to reduce the outstanding loan and relieve employers. Finance said no specific repayment plan was included in the May Revision, while LAO said the state’s UI tax structure is structurally insufficient and that any debt payoff should be paired with tax-system reform. Senators also questioned EDD Next costs and timelines, PERB’s caseload and staffing needs, and DIR’s emerging technologies unit, with LAO noting that the unit would appear focused on physical workplace safety rather than broader AI labor issues. CalHR said the new EAP contract would consolidate services, improve access to clinicians, and lower costs relative to the current model. CalPERS defended higher external management fees as part of a strategy to pursue higher net returns, while some members pressed for more transparency about private investments; CalSTRS said it was not prepared to address investment-strategy questions at this hearing. Public comment in Part A was dominated by advocates urging support for an immigration enforcement emergency relief fund, along with comments supporting the Jails to Jobs proposal, the Apprenticeship Innovation Fund, and additional PERB funding. The chair noted that many of the immigration-related requests might fall under other committees and said staff would follow up. In Part B, Finance and LAO outlined judicial branch and DOJ May Revision items, including funding for court interpreter services, appellate court security, lactation room implementation delays, courthouse construction reappropriations, and DOJ budget increases. LAO recommended approving the language-access proposal with a report on reducing interpreter cost growth and reducing the General Fund backfill for state court facilities by $10 million on an ongoing basis.