Transcript Highlights:

• Then we'll go to the Department of Finance. Jesse, you're on mine. Department of Finance.
• Disability Insurance program.
• There's also mass transit and vanpool commute programs where state employees can receive subsidies of
• deliver through the state.
• states.

Summary: The Assembly Budget Subcommittee No. 5 heard updates from the Secretary of State, EDD, the State Controller’s Office, CalHR, and DGS on a range of budget proposals and federal policy impacts. Secretary of State Shirley Weber opened with remarks about California’s election system, emphasizing its safety, transparency, high voter registration and vote-by-mail participation, and the office’s response to bomb threats and other election threats. Her staff then presented funding requests for the Cal-Access Replacement System (CARS) and Help America Vote Act/VoteCal activities, describing them as needed to modernize campaign finance and lobbying disclosure systems and maintain election security and voter services. A major portion of the hearing focused on federal election policy, especially the potential effects of a presidential executive order and the SAVE Act. Secretary of State staff said California would face significant, potentially unquantifiable costs if forced to comply, including new burdens on county recorders, county election offices, and the Secretary of State’s office, and warned of voter disenfranchisement, especially for students, seniors, disabled voters, military and overseas voters, rural residents, and people with limited transportation. Members and public commenters strongly opposed the federal proposals and argued California’s current system is functioning well. The committee also heard that federal HAVA funds were not expected to be at risk because the state draws them down into an interest-bearing account. EDD reported on paid family leave, explaining that recent delays were tied to a system transition and increased claim volume, and said it was simplifying applications and adding staff and automation. Public testimony supported expanding paid family leave to chosen family. EDD also said it is prepared for possible unemployment spikes, citing a recession plan, a command center, and recent hiring. The State Controller’s Office requested funding to continue the Fiscal migration project, which would move the state’s accounting book of record to the new system by July 1, 2026; Finance and LAO had no objections, and the committee expressed support for the project’s progress. CalHR presented a proposal for a statewide recruitment, outreach, and education paid media campaign under AB 1511, saying its current advertising budget is too small to reach diverse communities effectively. The final item addressed Governor Newsom’s executive order requiring a return to office on a four-day schedule. CalHR and DGS said they were working department-by-department to assess space, parking, transit, and other logistics, but had not completed a statewide cost analysis. Members and many public commenters criticized the order, arguing it was rushed, costly, harmful to telework benefits, and potentially disruptive to workers, especially those with disabilities, caregiving responsibilities, or long commutes. No votes were taken during the hearing.

Transcript Highlights:

• Legislature about which programs we should backfill with state money.
• The commission works to embed racial equity across state policies, programs, and initiatives.
• The commission works to embed racial equity across state policies, programs, and initiatives.
• The commission works to embed racial equity across state policies, programs, and initiatives.
• The SEED entrepreneurship program is a program that will support small businesses throughout the state

Summary: The subcommittee heard an informational update from the Governor’s Office of Business and Economic Development on the state’s Jobs First economic development strategy and related budget requests. Go-Biz described its regional planning process, priority sectors such as ag-tech, space defense, life sciences, and semiconductors, and requests including an extension of the CalCompetes tax credit, support for export promotion, additional film commission staff, innovation and emerging technology capacity, and a California brand campaign. Members questioned the campaign’s purpose, with some supporting efforts to counter misinformation about California and others warning it should not obscure regulatory and business-climate concerns. Go-Biz said the campaign would be nationally focused, could include business attraction efforts, and was intended to complement—not replace—policy work on permitting and workforce development. The item was informational only. The committee then heard from the California Office of the Small Business Advocate on the California RISE program, the Performing Arts Equitable Payroll Fund, and the Technical Assistance Program/Capital Infusion Program. CalOSBA reported that California RISE’s first round awarded $16.9 million to 61 employment social enterprises, which collectively increased revenue, secured contracts, and employed thousands of people facing barriers to work; a second round is being launched with a new administrator and expanded services. For the performing arts payroll fund, the office said all 100 awardees had been paid, but demand far exceeded available funding, and the program was oversubscribed within days. California for the Arts testified that the sector remains fragile after COVID and urged statutory changes to simplify eligibility and stretch dollars further. SBDC representatives described TAP/SIP as a statewide network supporting small businesses, capital access, and disaster recovery, emphasizing their role in underserved communities and the leverage of federal matching funds. Committee members focused on whether these programs produce durable outcomes and reach smaller or disadvantaged businesses. Questions centered on long-term job retention in California RISE, outreach to ethnic and community media in the civic media program, and whether TAP/SIP are accessible to entrepreneurs with limited capital or capacity. CalOSBA and its partners said they rely heavily on local community organizations for outreach, provide one-on-one counseling and training, and are working to collect more longitudinal data. The committee also discussed the film and television tax credit program, for which Go-Biz requested funding for three permanent positions and ongoing program support. Film Commission staff said the expanded program is tracking demographic and career-pathway data, with most productions opting into new diversity provisions, and that a formal report to the Legislature is expected in 2027. The item concluded without a vote, as the hearing was for oversight and budget discussion.

Transcript Highlights:

• Recovery program grants 23,000 uh of it. Recovery program grants 23,000 per<00:21:35.919> year.
• <00:22:16.720> this on MD's testimony and ED finance this on MD's testimony and ED finance
• finances of the agency. finances of the agency. >> Thank<00:30:56.000> you.
• Finance.
• And we don't need to look at other states States to find where there's success.

Keywords: 919, house, all

Summary: The committee heard House File 3764, as amended by the DE1 amendment, which would allow school districts and charter schools to create local anonymous threat reporting systems. Representative Nadeau described the bill as an optional framework that would support 24/7 anonymous tips through an app, hotline, or website, use trained crisis counselors and school-based teams, coordinate with 911 and law enforcement when needed, require public awareness efforts and student training, and direct districts to report usage data to the Department of Education. The chair adopted the DE1 amendment, and the bill was moved before the committee with the intent to place it on the general register. Testimony was largely supportive. Chris Linquist of St. Francis Area Schools said his district has used the Sandy Hook Promise reporting system since 2023-24 and credited it with helping identify bullying, mental health crises, and other safety concerns outside school hours. Alexandra Fitz Simmons of Children’s Defense Fund Minnesota said anonymous reporting systems are an important prevention tool because students are often the first to see warning signs before violence occurs. Representative Lawrence also praised the bill for being encouraged rather than mandated and emphasized local control. Rick Kaufman, speaking for several school organizations, supported the concept but said the bill still lacked clear standards for how tips are evaluated and shared with school officials, and he urged stronger coordination and funding for staffing and training. Joe Oonie of the Department of Education said the department supports anonymous reporting systems but raised concerns about the costs of building data collection and reporting infrastructure, FERPA safeguards, and the need for resources to implement the bill effectively. Chair Bennett pushed back on the funding objection, arguing the department should be able to handle the reporting within existing resources, and Representative Roach later asked whether the department had higher-priority uses for its carryover funds. No final vote on the bill itself was taken in the portion provided, beyond adoption of the DE1 amendment.

Transcript Highlights:

• Section two is a bi-state effort with Indiana, with Kentucky taking the lead in delivering and financing
• She added that the team is also working on a broader bi-state development agreement covering financing
• And then that'll be reduced by however much toll revenue we can finance each state. >> Sharon, so you've
• > state.
• I'm happy to report that the program is now fully operational across the state.

Keywords: 958, all

Summary: The committee first approved the minutes from its June 3 meeting and received an opening update on transportation revenues. Leadership noted that the gas tax formula dropped 4.1 cents on July 1, reducing road fund revenue by about $125 million, and warned that city, county, rural, and secondary road funding will be affected. The chair said the committee would likely have to be selective about transportation project requests given the reduced revenue outlook. The main presentation was an update on the I-69 bridge project. Kentucky Transportation Cabinet officials said the project is the missing link in the Henderson-Evansville corridor and is being delivered in three sections, with Kentucky leading section two. They said section two is a $933 million project, with Kentucky’s share described as $58 million and the balance Indiana’s, and that toll revenue will be used to finance the project through a TIFIA loan and Garvey bonds. Officials said Kentucky and Indiana have executed an agreement under House Bill 546 to use tolls, are working on a broader bi-state development agreement, and will ask the General Assembly next session to carry forward $150 million in general funds without conditions and to ratify the agreement. Members asked about the timeline, toll sharing, whether tolls would sunset, and whether US 41 bridges would remain open for local traffic; officials said construction is planned for 2027, tolling would begin in 2031, toll revenue would be shared 50/50, and at least one US 41 bridge would remain open for local use. The committee then heard a combined update from the Department of Vehicle Regulation and the Division of Motor Vehicle Licensing on implementation of several recent changes. Officials reported that the new registration category for special-purpose vehicles is fully operational statewide, with all counties enrolled and 292 vehicles processed so far; they also said counties received at least five plates each and that the program is permissive, not mandatory. They described implementation of Senate Bill 43’s medical review board reforms and third-party driver’s license issuance framework, saying the medical review process has been updated and that third-party partners may eventually handle easier transactions such as renewals, name changes, and address changes, while initial issuances would remain at KYTC regional offices. They also reported that the sheriff’s inspection process has been integrated into CAVIS, reducing paperwork and fraud and improving tracking. Members asked about communication to counties and cities with differing local rules, the number of counties participating, and how to coordinate multiple policy changes; officials said all counties are enrolled, though not all have submitted applications, and that they are still finalizing the scope of third-party services.

Transcript Highlights:

• after we finish with the state budget. after we finish with the state budget.
• We've included $240 million for financing programs, including the rental housing revolving fund and the
• We've included $240 million for<00:52:10.559> financing<00:52:11.200> programs<00:52:12.079
• > including<00:52:12.559> rental for financing programs including rental for financing
• On page one, Program ID JUD 601, sequence 2060-001. Program ID JUD 601, sequence 2060-001.

Keywords: 910, house, all

Transcript Highlights:

• affordable housing programs here in the state, which also includes set-asides for seniors and rural areas
• While the state has created several tools that provide funding for housing construction, programs that
• Financing Program.
• The Infrastructure Partnership Financing Program would help directly support infrastructure improvements
• By providing state support for infrastructure, this program would allow more housing developments to

Keywords: 987, senate, all

Transcript Highlights:

• In addition to Education Finance, I also staff Commerce Finance. Thank you.
• We together, the state progressed significantly in a range of critical education programs on behalf of
• We together, the state progressed significantly in a range of critical education programs on behalf of
• As I stated last week at the Minnesota Senate Education Finance Committee meeting, we sent out a Crossroads
• He said Minnesota is not an outlier because several states have these same programs in place for more

Keywords: 1183, house

Transcript Highlights:

• This is your state government.
• and all the state money that we throw out to everybody who comes into the state and says, hey, we're
• And so this is a super important program that's dispersed around the state.
• It's a state agency.
• With development timelines and financing and pulling it all together and stacking up financing, I can

Keywords: 996, all

Transcript Highlights:

• I'll also just note in food assistance, the state has the program called the California Food Assistance
• for the underlying program and if the tax were more restricted, the state would need to find alternative
• When combined with other looming federal cuts and state budget cuts to our programs serving undocumented
• And as you heard this morning, H.R. 1 really fundamentally attacks how we finance the Cal program and
• And as I stated earlier, we're also concerned about the Graduate Plus program. Thank you.

Keywords: 988, house, all

Transcript Highlights:

• You go to New Mexico Finance Authority.
• And I am happy to hear that they are increasing those programs around the state in Albuquerque and Rio
• mechanisms of the state.
• That's where we need the hand up from the state.
• Obviously, they can accept state funds.

Transcript Highlights:

• The state does have an initial outlay of funding. for that program that flows through the school finance
• State supported school or state supported living center. Are they in your program? No, no, ma'am.
• So no state funds have been or will be expended under this program, is that correct?
• water plan and a state flood plan. then financing.
• Finally, Chairwoman Stepney mentioned our State Revolving Fund or SRF programs.

Keywords: 1184, house, all

Transcript Highlights:

• Um, I move that the Committee on Finance Um, I move that the Committee on Finance be relieved of S. 710
• So I just here in the United States.
• stated increase. stated increase.
• state general fund. state general fund.
• on accessing state property. on accessing state property.

Keywords: 927, senate, all

Transcript Highlights:

• affordable housing programs here in the state, which also includes set-asides for seniors and rural areas
• While the state has created several tools that provide funding for housing construction, programs that
• Financing Program.
• The Infrastructure Partnership Financing Program would help directly support infrastructure improvements
• By providing state support for infrastructure, this program would allow more housing developments to

Summary: The committee heard AB 736, a proposed $10 billion Affordable Housing Bond Act of 2026, with Assembly Member Buffy Wicks and numerous housing, local government, labor, and advocacy groups testifying in strong support. Supporters said the bond would fund multifamily housing, permanent supportive housing, homeownership, preservation, farmworker, tribal, and other programs, and argued that the state needs new capital because prior bond funds are exhausted and many shovel-ready projects are waiting. Habitat for Humanity California opposed the bill unless it was amended to dedicate 10% of bond proceeds to Cal Home for affordable homeownership, and several senators said they supported the bond but wanted Cal Home strengthened. The committee voted do pass to Senate Appropriations, with the measure placed on call for absent members. The committee also heard SB 1361 by Senator Durazo, which would limit local governments from using SB 79 transit-oriented housing requirements as a reason to stall or condition planned transit projects. Los Angeles Metro, the Building Trades, and several cities and advocacy groups supported the bill, saying it would protect transit investments, jobs, and federal funding from opposition tied to future density around transit stops. Several groups that had initially opposed or been concerned about the bill, including West Hollywood, Streets for All, Greenbelt Alliance, California YIMBY, and the Bay Area Council, withdrew opposition or moved to neutral after amendments. The committee approved the bill as amended to Senate Local Government, with the measure also placed on call. Senator Grayson presented SB 1003, creating an Infrastructure Partnership Financing Program to help local governments and developers fund infrastructure needed for infill housing, and SB 1014, which would require local agencies to provide early, good-faith estimates and itemized lists of required on-site and off-site improvements for housing projects. Both bills were supported by housing advocates, Habitat for Humanity, SPUR, and industry groups, who said the measures would reduce uncertainty, late fees, and project delays. The committee advanced both bills as amended to Senate Appropriations, placing them on call. The committee also took up SB 908, which streamlines energy-code-compliant window replacement and limits aesthetic review, especially for residential replacements; it passed as amended to Appropriations after support from affordable housing and green building groups and no opposition. Later, Senator Allen presented SB 1092 and SB 1093 on mobile home park preservation and post-disaster protections. SB 1092 would give residents notice and an opportunity to make a competing bid when a park owner intends to sell, with supporters arguing it would help preserve unsubsidized affordable housing and protect displaced residents, while park owner representatives argued it would devalue properties, create litigation risk, and interfere with market transactions. SB 1093 would require more communication, access, and consideration of rebuilding or closure after disasters, and would restore certain resident reimbursement rights; supporters cited the Palisades fire and survey data showing residents lacked information and access, while opponents said the bill imposed onerous timelines, liability issues, and penalties and could force owners into rebuilding or compensation assumptions they disputed. Both bills were discussed at length, but the transcript ends before final recorded votes on them.

Transcript Highlights:

• <00:34:29.800> of<00:34:29.879> the<00:34:30.000> program the funding the financing
• of the program the funding the financing of the program worked<00:34:31.000> going<00:34:31.240
• reinsurance program. reinsurance program.
• That is the reinsurance program in the state of Minnesota.
• Um states.

Keywords: 918, senate, all

Summary: The committee met to walk through nonpartisan side-by-side comparisons of House File 4188, focusing on differences between House and Senate language across consumer protection, insurance, financial services, health, and technical provisions. Staff highlighted numerous Senate-only items, including rules for financial providers communicating through trusted contacts, virtual currency requirements for banks and credit unions, a prohibition on virtual currency kiosks beginning in 2026, mortgage servicing and student loan servicing changes, the Rental Home Marketplace Guarantees Act, insurance and travel-related provisions, scrap metal licensing changes, protections related to minors accessing chatbots and AI companions, and several technical or conforming repealers. Staff also noted that some provisions were identical or substantially similar between the chambers, including mortgage originator standards, student loan borrower protections, securities-related changes, unclaimed property provisions, and technical updates in the bill’s miscellaneous articles. The Senate-only health-related articles were also summarized, including repeal of the prescription drug affordability advisory council, technical changes to the reinsurance program, and a series of health insurance provisions on enrollment-growth notices, limits on officer and director salary increases under certain capital conditions, guaranteed issue rights for certain Medicare supplement enrollees, data-sharing between Commerce and Health, restrictions on using artificial intelligence alone to deny claims, reimbursement for clinical trainees, home care nursing coverage, and PBM transparency. The Senate’s telecommunications article was described as largely technical and conforming, with repeals of obsolete statutes. Staff also noted that some standalone bills had already passed and would be removed from the comparison report. Public testimony followed. Thomas Elness of AARP Minnesota supported inclusion of the cryptocurrency kiosk bill, expressed support for guaranteed issue protections for a narrow group of consumers affected by discontinued plans, and urged adoption of changes to the consumer protection restitution account, including raising the cap to $10 million per fiscal year. Representative Lee testified that the restitution account proposal should be treated as policy rather than finance because it has a zero fiscal note, and said the House would accept the Senate’s $10 million cap. Robin Rowan, representing the Minnesota Insurance and Financial Services Council and the U.S. Travel Insurance Association, urged adoption of Senate travel insurance language, requested a House-style change to lead-generation recordkeeping language, and supported a Senate provision allowing employers and insurers to coordinate notice to employees when group policies are cancelled. The Department of Commerce then responded to questions, explaining that the prescription drug affordability council would be sunset because the board already has other avenues for public input, that the reinsurance changes were technical and did not alter the prior agreement, and that the abandoned cryptocurrency provisions rely on statutory definitions of inactivity and known examples such as keys stored in safes or deposit boxes.

Transcript Highlights:

• Most states are moving away from allowing K-5 students to participate in virtual programs.
• And we really want you to think about the costs between a virtual program and an in-person program.
• Are a virtual program and an in-person program the same?
• Plus, should a virtual program generate all the same funding as an in-person program?
• . whole program virtual instruction program, and that would eliminate that $42 million in funding for

Transcript Highlights:

• They go to state projects under the State Shop Program.
• The state has supported other programs and currently had some other programs in place related to zero-emission
• SB 1 provides critical state funding through the local streets and roads program.
• SB1 provides critical state funding through the local streets and roads program.
• These are programs making an impact in disadvantaged communities across our state.

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:

• <00:11:57.680> is not going to affect that program is not going to affect that program is
• I think that, as under the current financing structure, how we finance long-term care, they would be
• I think that, as under the current financing structure, how we finance long-term care, they would be
• It's modeled a lot like Washington state has where we I think that, as under the current financing structure
• program like this? program like this?

Keywords: 928, house, all

Summary: The Committee to Study Long-Term Managed Care approved the prior meeting minutes as amended after correcting the first paragraph. The chair then outlined the committee’s plan to produce a preliminary report by October 1, with additional meetings to follow, since some questions remain about the federal One Big Beautiful Bill (OB3) and its effects on Medicaid financing and managed care. The main discussion focused on New Hampshire nursing home funding and how ProShare and MQUIP work. Members reviewed Medicaid rates, supplemental payments, intergovernmental transfers, and the role of federal matching funds. The chair and Mr. Litman concluded that OB3’s phase-down of payments above the Medicare rate likely would not directly eliminate ProShare or MQUIP in New Hampshire, but uncertainty remains about intergovernmental transfers and about how these payments would function if the state moved nursing facilities into managed care. Mr. Litman said managed care would likely require waivers for supplemental payments, and Texas was cited as an example of a state operating under such waivers. The committee also discussed dual eligibles, DNIP, PACE, and the possibility of carving out HCBS from nursing facility services. DHS said its managed care contract would allow the state to use MCOs for DNIP, with the goal of better coordination between Medicaid and Medicare, while PACE would likely require more study and might be more feasible in populated counties. Members also reviewed OB3’s new presumptive eligibility provisions and a state waiver request modeled on Washington’s approach, plus a separate grant for transitioning people from facilities back to the community. The rural health transformation fund was discussed as a possible source for workforce, telehealth, mobile integrated health, and other support investments, but not for direct construction or major building renovation. County representatives emphasized that any county role in PACE or DNIP would require significant vetting, infrastructure, capital investment, and a realistic timeline. The meeting ended with the chair saying the draft report would outline issues and possible alternatives, but not recommendations yet, and the committee adjourned without taking further action.

Transcript Highlights:

• The state does have an initial outlay of funding. for that program that flows through the school finance
• State supported school or state supported living center. Are they in your program? No, no, ma'am.
• So no state funds have been or will be expended under this program, is that correct?
• water plan and a state flood plan. then financing.
• Finally, Chairwoman Stephanie Mendoza. our state revolving fund or SRF programs.

Keywords: infrastructure, water supply, flood mitigation, Texas Water Fund, community projects, funding allocations

Summary: During this committee meeting, the focus was on discussing critical infrastructure funding, especially related to water supply and flood mitigation projects. Chairwoman Stepney and the Water Development Board presented extensive details regarding the Texas Water Fund, which included $1 billion appropriated to assist various financial programs and tackle pressing water and wastewater issues. Additionally, funding allocations aimed at compromising the state's flood risk and improving water conservation were hotly debated, emphasizing collaboration among committee members and the necessity of addressing community needs in such projects.

Transcript Highlights:

• funding and what has been the impact of tapering down of those programs and funds on state funding.
• First off, overarchingly, the amount of share of the state school and local foundation programs because
• My real ask is 100% because we feel like it's a state program, but be a little more aggressive than maybe
• My real ask is 100% because we feel like it's a state program, but be a little more aggressive than maybe
• The first, finance committee to highlight, I think, some of the benefits to the state that quality representation

Bills: SB 1

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards

Summary: The Senate Finance Committee held its first hearing of the 89th regular session, adopted nearly identical committee rules from the previous legislature by a 15-0 vote, and began review of Senate Bill 1, the state budget for fiscal years 2026-27. Chair Huffman outlined the budget framework, emphasizing conservative spending, a $332.9 billion all-funds budget, and major priorities including property tax relief, public education, border security, health and human services, transportation, energy, and water infrastructure. She also introduced committee and leadership staff and described the hearing schedule and public testimony procedures. Comptroller Glenn Hager presented the biennial revenue estimate, saying the state has $194.6 billion available for general-purpose spending, including a $23.8 billion ending balance, but warned that revenue growth is returning to more normal levels and that lawmakers should avoid using temporary spikes for ongoing commitments. Senators questioned him extensively about the Economic Stabilization Fund cap, sales tax trends, inflation, and whether the state should consider raising the cap or using severance-tax revenues differently. Hager said the Rainy Day Fund is expected to hit its cap, which would leave more severance-tax revenue in general revenue, and he stressed that infrastructure needs remain significant. The Legislative Budget Board then gave a detailed overview of SB 1 and the budget’s major components. LBB staff explained that the bill includes continued funding for the Foundation School Program, $850 million for the Texas State Technical College endowment, $1.3 billion for the Texas University Fund, $6.5 billion for border security, salary increases for correctional officers and state troopers, $3 billion for dementia research, higher community attendant wages, expanded community-based care, $5 billion for the Texas Energy Fund, and funding to clear volunteer fire department grant backlogs. They also outlined supplemental priorities such as water infrastructure, retirement legacy payments, rail grade separations, wildfire aircraft, and emergency facilities, and said the current controlling budget limit is the tax spending limit. A major portion of the hearing focused on property tax relief. LBB explained that prior-session relief grew from an expected $18 billion to $22.7 billion because of higher-than-anticipated property values and interactions among hold-harmless provisions, and that SB 1 continues and expands relief with $51 billion in total property tax relief, including $3 billion more for compression, $3 billion to raise the homestead exemption from $100,000 to $140,000, and a $500 million placeholder for business tax relief. Senators discussed the automatic nature of some of these costs, the effect of the non-homestead circuit breaker, the role of federal COVID funds, and the need to maintain school finance commitments if the state continues to compress school tax rates.

Transcript Highlights:

• Senate Bill No. 554, introduced by the Committee on Finance, revises provisions governing the State Highway
• Senate Bill No. 492, introduced by the Committee on Finance, makes appropriations to the State Department
• Senate Bill No. 492, introduced by the Committee on Finance, makes appropriations to the State Department
• Senate Bill No. 499, introduced by the Committee on Finance, revises provisions relating to the state
• Senate Bill 475, introduced by the Committee on Finance, makes appropriations to the Department of State

Keywords: 909, all