Transcript Highlights:

• We also do conduct adjustments for locally collected revenue.
• Sometimes there are adjustments made to program costs because certain costs may be rising in certain
• Or are all faculty members standard the same salary no matter what you teach?
• What faculty salaries are is going to vary by college.
• The college is free to decide how to set those salaries with their faculty.

Committee: Senate Appropriations Committee on Higher Education

Summary: The Appropriations Committee for Higher Education met to review Florida’s workforce and Florida College System funding models as part of budget planning. Chair Harrell opened by emphasizing the state’s growing focus on technical education and workforce pathways, and the committee first heard from Tara Goodman of the Department of Education on district workforce education. Goodman explained the programs funded through district workforce dollars, including career certificates, applied technology diplomas, registered apprenticeship, and adult general education, and described the model’s reliance on lagged enrollment, program cost weights, local tuition offsets, and supplemental factors such as disability services, GED testing, and minimum funding for small rural districts. She also noted federal support through Perkins and WIOA and said the model is used to determine unmet need and guide appropriations. In response to questions, she said health care programs are generally among the higher-cost offerings and may be supplemented by pipeline funds. The committee then heard from Kathy Hebda, Chancellor of the Florida College System, on the college system’s funding model. Hebda described the main funding sources, including the program fund, student success incentive funds, pipeline funds, tuition and fees, and performance-based incentives, and explained that the current model was developed by the 28 college presidents under legislative direction. She said the model uses a three-year average FTE, weights workforce enrollment more heavily than non-workforce enrollment, gives significant weight to completions, includes a small-college factor and regional cost differentials, and also provides targeted funding to bring colleges up to a floor based on per-FTE funding. Senators asked about colleges below the target, cost differences among programs, faculty salaries, and health insurance costs; Hebda said the model is meant to provide flexible operating dollars that colleges can use for those expenses, but specific salary and benefit decisions are left to the institutions. Seminole State College President Georgia Lorenz also testified in support of the college funding model, saying it holds institutions accountable for enrollment and completions, can be adjusted to reflect state priorities like workforce, and addresses differences in size and regional costs. No bills were voted on, and the committee adjourned after brief closing remarks thanking Seminole State College and the presenters.

Transcript Highlights:

• These weights were last adjusted in 1993.
• The secondary factor, the one for grades 7 through 12, was last adjusted in 1976.
• The ninth proposal would amend existing law to increase minimum salaries.
• The mechanics of this proposal include some flat salary increases.
• Figures are going to adjust in terms of what we are talking about in terms of dollars.

Committee: Senate Senate Education

Transcript Highlights:

• and will be adjusted.
• , and their budget adjustments were either to get a vehicle.
• What are the public defenders' salaries? I would hear as high as 210.
• It looks like there is significant budget adjustments for the contractual ...budget adjustments for the
• In FY25, there was a $350,000 budget adjustment and transfer out of the 400 ...dollar budget adjustment

Committee: House House Appropriations & Finance

Summary: The committee first heard an Aging and Long-Term Services Department budget presentation comparing the LFC and executive recommendations. The main differences were in the Aging Network, Adult Protective Services, Program Support, and Long-Term Care Division, especially the executive’s proposed $10 million infusion into the Kiki Savadra Senior Dignity Fund and $6.2 million for expanding New Mexico Care. LFC staff explained that the committee recommendation was lower in general fund and fund-balance use, while the executive emphasized rising senior population needs, meal and transportation costs, and the cost savings of keeping older adults at home. The secretary also reviewed the department’s special requests, including the conference on aging, outreach, emergency preparedness, and the Kiki fund, and described New Mexico Care’s growth, its evaluation results, and the department’s plan to separate Kiki into its own accounting fund. Members largely focused on senior services, rural meal delivery, transportation, caregiver support, and the Kiki fund. Several members urged stronger support for non-metro aging providers and for New Mexico Care, citing its role in keeping seniors out of nursing homes and the program’s reported savings and outcomes. Questions also covered eligibility, background checks for caregivers, respite care, dementia and Alzheimer’s screening, and whether Kiki funds can support home modifications such as ramps. The committee then voted to adopt the LFC recommendation with one executive language change: adding the executive’s page 14 language allowing an additional 12.5% distribution for initial payments to aging network providers at the start of FY27. Representative Dow opposed the motion. The committee then moved to the Attorney General’s budget. LFC staff explained that the office’s budget relies heavily on the Consumer Settlement Fund, with both recommendations reducing general fund revenue while increasing settlement-fund use, and that performance measures were in consensus. The Attorney General said the office was not seeking more general fund, but wanted greater ability to use funds it recovers. He highlighted major consumer and public safety work, including litigation against major social media and AI platforms, a case involving Snapchat and child exploitation/extortion, the statewide crime gun intelligence center, efforts to address oilfield theft, work on missing and murdered Indigenous persons, and efforts to protect federal funds coming into New Mexico.

Transcript Highlights:

• Those operating adjustments are crucial to the agency functions.
• To that, we add an operating adjustment on line 29 of $179.
• On line 116, we have an operating adjustment.
• On line 124, we have their operating adjustment.
• Number one is the operating adjustment.

Committee: House Public Safety Finance and Policy

Transcript Highlights:

• rewritten more than a decade ago to emphasize performance pay and limit the role of cost-of-living adjustments
• Today, the and limit the role of cost-of-living adjustments and advanced degrees.
• currently ranks toward the bottom in the nation in average teacher pay, and many educators cite low salaries
• It restores meaningful use of cost-of-living adjustments for educators with direct student contact.
• Those individuals have just kind of been stuck, not able to get adequate raises and salary increases

Committee: Senate Appropriations Committee on Pre-K - 12 Education

Summary: The Appropriations Committee on Pre-K-12 Education met and first temporarily postponed SB 920, the mathematics education bill. The committee then took up SB 1216 on public school personnel compensation, with Senator Rodriguez explaining that the bill would give districts more flexibility in educator pay by restoring meaningful cost-of-living adjustments for teachers with direct student contact, allowing districts to recognize relevant advanced degrees, and removing rigid performance-pay caps. Several senators spoke in support, emphasizing teacher retention, compensation, and the need to invest more in education. The bill was reported favorably by a unanimous roll call vote. The committee next heard SB 1036 on school counselors, presented by Senator Calatayud, which aims to address counselor shortages by removing certification barriers tied to classroom teacher requirements and expanding the pool of eligible applicants. Testimony and discussion focused heavily on the shortage of counselors, high student-to-counselor ratios, and the impact on academic guidance and student mental health. Students and a veteran teacher described limited access to counselors, overburdened staff, and the need for more support personnel; Senator Osgood also noted the role of BRACE advisors and broader student support needs. The bill was reported favorably as CS for SB 1036 by unanimous vote. During the counselor bill discussion, senators also reflected on access and equity in college and career advising, with comments about the need for more efficient use of counselor time and better outreach from Florida colleges. The meeting ended after members recorded their votes on the two bills and, with no objection, adjourned.

Transcript Highlights:

• I sit on the registrars of voters' retirement board, and this is a cost-of-living adjustment.
• return allocation and retiree raise rules for the Louisiana State Police Retirement System while adjusting
• , which Margaret went through, and with the change that was made in 2023 to fund cost-of-living adjustments
• The chairman's pay remains tied to that of a Court of Appeal judge, which includes standard salary plus
• The chairman's pay remains tied to that of a Court of Appeal judge, which includes standard salary plus

Bills: SB8 , SB10 , SB11 , SB12 , SB13 , SB14 , SB16 , SB17 , SB18 , SB20 , SB21 , SB22 , SB416 , SB455 , SB456 , SB477

Committee: House Retirement

Summary: The Retirement Committee met on April 29, 2026, established a quorum, and heard a series of retirement-related bills, mostly cleanup or technical measures affecting various public retirement systems. SB 22 would extend Municipal Employees Retirement System eligibility to certain positions in the Second City Court constable’s office in New Orleans. SB 17 would create a funding deposit account for cost-of-living adjustments for registrars of voters’ employees’ retirement system. SB 455 would allow certain district and parish courts to participate in the Parochial Employees Retirement System. SB 456 would update compensation rules for assigned retired judges, and SB 8 would add the Louisiana Asset Management Pool as a participating employer in MERS. All of these bills were described as aligning statutes with current practice or expanding participation options, and each was reported favorably without objection. The committee also heard several Louisiana State Police retirement bills. SB 10 would repeal outdated priority allocation and retiree raise rules and adjust handling of surplus employee contributions; SB 11 would increase the funding cap for benefit increases from 2.5% to 3.5%; and SB 12 would update membership and definition language to reflect the State Police Commission rather than the Civil Service Commission. SB 18 would repeal a special exception allowing certain MERS retirees to return to part-time work while collecting full benefits, while protecting roughly 30 current participants. SB 20 and SB 21 would update actuarial gain/loss and unfunded liability funding rules for school employees’ retirement and LASERS, respectively, in light of the new permanent benefit increase funding structure. Each of these bills was supported by system officials as cleanup or modernization measures and was reported favorably. The committee spent the most time on education and return-to-work issues for teachers and public employees. SB 16 would reduce annual trustee training requirements for retirement system boards from 16 hours back to 12 hours, which witnesses said would better fit smaller systems and match the original intent of the law. SB 13 would similarly update TRSL’s actuarial funding rules after the sunset of the experience account. SB 14, based on a 2025 study work group, would consolidate and simplify TRSL return-to-work rules and expand options for retired teachers, with witnesses emphasizing teacher shortages and the need to retain experienced educators. All three were reported favorably. Finally, SB 416 would allow certain Department of Public Safety and Corrections retirees to return to critical shortage positions after one year, and SB 477 would classify the chairman of the Louisiana Gaming Control Board as a full-time state employee for retirement purposes. Both bills drew questions and discussion, especially SB 416, and both were reported favorably. The chair announced the committee’s next meeting would be moved from Monday to Tuesday, and the meeting adjourned.

Transcript Highlights:

• What we were asking for is a permanent adjustment to baseline because the request falls into two categories
• And so this has some adjustments in it.
• Plus, we're going to have those staff adjustments that we talked about.
• And we can't pay that level of salary to those individuals.
• I would like to get the salary of our employees up.

Transcript Highlights:

• Additional requests include $73.4 million for targeted salary adjustments at TDCJ that would allow them
• That is targeted salary adjustments for our administrative positions, but this is everything from engineers
• adjustments.
• Again, we're grateful. 10% salary increase this biennium.
• These are not across-the-board salary enhancements for all employees.

Committee: House Appropriations - S/C on Articles I, IV, & V

Transcript Highlights:

• aid nor salary incentive aid pursuant to section 18.
• to Pay above the salary schedule.
• This raises the minimum salary schedule by $2,000. I yield for questions.
• What is the penalty if a school district doesn't honor the salary schedule?
• But as long as this minimum The salary schedule exists, and we all know how I feel about it.

Bills: SJR47 , SB1491 , SB1579 , SB1806 , SB1552 , SB483 , SB63 , SB137 , SB346 , SB514 , SB1344 , SB1360 , SB1380 , SB1437 , SB1189 , SB1217 , SB1221 , SB1262 , SB1272 , SB1325 , SB1339 , SB201

Transcript Highlights:

• State-only claiming adjustments.
• We've made additional adjustments related to our state-only claiming for members with unsatisfactory
• And that could be some benefit that would give the state more time to adjust the fee.
• So even if we sort of adjust uniformity, we still may have to think about that limit too.
• So are you adjusting it to $50 million because the MCO tax is going all the way to September 31st?

Summary: The subcommittee heard a lengthy Department of Health Care Services presentation on the governor’s Medi-Cal budget, including a $229.1 billion total-funds proposal, projected Medi-Cal enrollment declines as redeterminations continue, and several major cost drivers such as managed care growth, Medicare-related costs, pharmacy spending, and changes tied to federal policy. Members focused heavily on the elimination of Prop. 56 dental supplemental payments beginning July 1, 2026, questioning the likely impact on provider participation and utilization. DHCS said it is completing the required rate reduction/access analysis for CMS, has been holding stakeholder meetings and issuing provider bulletins, but could not yet quantify the real-world effect. The committee also discussed a $50 million savings proposal tied to new hospice utilization management authority and asked about possible effects on emergency dental care and provider participation. The hearing then moved through the November 2025 family health estimate and several county and program administration issues, including CCS, GHPP, and Every Woman Counts. DHCS said family health costs are rising despite slight caseload declines because of higher utilization and medical costs, and members raised concerns about CCS website accessibility, county administrative funding, and the transition of youth aging out of CCS. The department said most CCS beneficiaries are also on Medi-Cal, that counties have long raised funding concerns, and that it had clarified use of maintenance-and-operations dollars to address some county workload issues. Members also asked about Every Woman Counts potentially seeing higher demand as Medi-Cal changes take effect; DHCS said that is possible and that the program has multiple funding sources including General Fund. A major portion of the hearing focused on provider taxes and federal changes under H.R. 1, especially the Medi-Cal managed care organization tax and the hospital quality assurance fee. DHCS explained that H.R. 1 restricts new or increased health care-related taxes, phases down allowable tax levels over time, and tightens “generally redistributive” rules, which could sharply reduce the state’s ability to use the MCO tax for Medi-Cal financing. Members asked whether the Legislature could amend Prop. 35 or whether voters would need to act; DHCS said a three-fourths legislative amendment may be possible if it aligns with the measure’s purpose, but the department is still evaluating options. The committee also discussed hospital financing, with DHCS describing recent increases in state-directed payments and the effect of H.R. 1 in capping those payments at Medicare levels, and the LAO noting the tradeoff between preserving provider taxes and maintaining Medi-Cal funding. The subcommittee also reviewed a series of DHCS budget change proposals and trailer bill items, including managed care final-rule implementation, managed care operations, a hospital value strategy, a one-year extension of skilled nursing facility financing, long-term care payment transparency, and interoperability/prior authorization requirements. Members repeatedly questioned the use of limited-term versus permanent positions, the overlap among proposals, and the timing of new financing reforms. DHCS said the SNF extension would preserve current workforce standards, sanctions, growth limits, and the SNF quality assurance fee while the department develops a broader 2027-28 redesign. No votes were taken; items were repeatedly held open for later action. Covered California then presented on the expiration of the federal enhanced premium tax credit and the resulting affordability crisis. The agency said Californians will lose about $2.5 billion in premium assistance for 2026, average premiums could nearly double for many enrollees, and as many as 400,000 people could eventually leave marketplace coverage. Open enrollment ended with 1.9 million sign-ups, down 3% from the prior year, with especially steep declines among middle-income consumers and increased movement into bronze plans. Covered California said the state’s $190 million affordability subsidy is helping lower-income enrollees retain coverage, but cannot fully replace the lost federal assistance. Members also asked about the Health Care Affordability Reserve Fund, repayment of loans from that fund, the status of federal review of California’s essential health benefits benchmark, and implementation of the new gender-affirming care benefit under AB 144.

Transcript Highlights:

• And it doesn't have to specifically do with the salary.
• by the salary he's making.
• ...in funding salaries and other things. Is that tax in perpetuity?
• So, but I appreciate you. ...these salaries with our state money.
• I'm just going to try to focus on the salary, which is the issue of this bill.

Summary: The committee first heard and favorably reported House Bill 1175, which updates aeronautics-related definitions to make Louisiana more attractive to the aviation industry. It then approved House Bill 655, giving DOTD clearer authority to contract for operation and maintenance of state ferry systems on a cost-plus basis, with testimony focused on flexibility for the Cameron Ferry and other state-run ferries. House Bill 1037, which reorganizes certain DOTD operations by shifting duties to a chief operating officer and extending work on a unified permitting platform, was also reported favorably, as was House Bill 1174, which recreates the Department of Transportation and Development on a revised cycle. House Bill 714 was voluntarily deferred. The committee next took up several port-related measures. House Bill 871, which would have added two St. Tammany appointees to the Port of New Orleans board, was voluntarily deferred after the author said the timing was premature given ongoing work on the LIT project and regional trade zone issues. House Bill 345, expanding the Rail Infrastructure Improvement Program to include rail infrastructure at ports, was reported favorably. House Bill 713, which would cap the Caddo-Bossier Port executive director’s compensation at the statewide average of the top ten port directors, drew extensive testimony for and against; supporters argued the salary was excessive and the port needed accountability, while opponents said ports are different from one another, the local appointing authorities already oversee the board, and the bill could hurt recruitment. The committee voted 12-1 to involuntarily defer HB 713. House Bill 667, which would change the Caddo-Bossier Port Commission from appointed to elected members, also drew strong opposition over cost, voter confusion, and loss of local appointing authority, and it too was involuntarily deferred by a 12-1 vote. The committee then favorably reported House Bill 743, creating the Harry P. Williams Memorial Airport District in St. Mary Parish, after testimony that the airport should be managed as a dedicated economic development asset. House Bill 836, which would reconfirm members of the Southeast Louisiana Flood Protection Authority East, was amended to move the reconfirmation date from August 1, 2026, to December 1, 2026, to avoid disrupting hurricane-season operations, and was reported favorably by substitute. Finally, House Bill 730, concerning the use of ADS-B aircraft tracking data, was discussed with an amendment limiting the bill’s application to smaller aircraft; the measure was presented as a privacy and safety bill to prevent assessors or others from using ADS-B data to impose fees or taxes on aircraft owners.

Transcript Highlights:

• </c><00:14:58.639><c> have</c> costs have increased salaries have costs have increased salaries have
• The last time these X-ray fees were adjusted was 2009.
• The last time these X-ray fees were adjusted was 2009.
• Finally, our operations adjustment is the other proposal.
• Chair. of operational adjustments over the of operational adjustments over the years<00:41:08.720><c>

Committee: House Health Finance and Policy

Transcript Highlights:

• Representative, we've seen quite the jump in salaries and other positions. Why not put a cap?
• So, no, we're not looking to pay them that, but we want it to be a working wage, and we'll have to adjust
• No, we're not looking to pay them that, but we want it to be a working wage, and we'll have to adjust
• And so if the legislature isn't setting the maximum salary cap, who would be?
• House Bill 3566 would just adjust the fee received by tag agents for a title transfer from $2.25 to $3.75

Summary: The committee heard and advanced a series of bills, mostly on a due-pass basis. Representative Grego’s bill to keep a prescribed-burn indemnity fund framework alive, with no state cost and hopes of private or insurance funding, passed 6-0 after discussion about wildfire risk and encouraging safer burns. Representative West’s HB 2962, removing time limits and refund caps for certain tax overpayment claims and extending refund rights for tribal members and former wards, also passed 6-0, with the sponsor saying it would apply retroactively. Representative Archer’s HB 3175, as a committee substitute, would begin creating a state nuclear regulatory framework in anticipation of future federal court changes; it passed 4-3. Representative May’s HB 3336 to remove the salary cap on the OMES CIO failed 2-5 and remained in Appropriations and Budget, while his HB 3831 to create a revolving fund for Oklahoma Task Force One equipment upgrades passed 6-1. Representative Wolfley’s HB 3566 raising tag agent title-transfer fees from $2.25 to $3.75 passed 6-1, and Representative Lawson’s HB 3621 to recreate a state data center for census preparation and LUCA support passed 6-1 after he agreed to amend it to be subject to available funds. Other measures advanced included HB 2958, a 9% pay raise for state employees, which passed unanimously 8-0; HB 3047, making LOFT the clearinghouse for statutorily required agency reports, which passed 6-1; HB 4301, strengthening the VA escape clause by requiring earnest-money refunds when a VA-financed home does not appraise, which passed 7-0; and HB 1979, creating a two-year task force to consolidate early childhood programs across agencies, which passed 4-2. The committee also heard a bill allowing the Attorney General’s Office and District Attorneys Council to buy vehicles without going through OMES, and it passed 6-2. After finishing the agenda, the committee announced a short recess before reopening for an Emergency Management budget hearing.

Transcript Highlights:

• We're estimating a two percent salary increase.
• We're just asking to please consider us if 2 or 3 for teacher salaries or educator salaries passes through
• And so just two Positions in that department is an additional $250,000 for salaries, benefits, travel
• And that is really because this legislature helped us out in getting those salaries increased.
• NMSU is also looking at employee salary structures.

Transcript Highlights:

• THESE ADJUSTMENTS ARE APPLIED IN THE PREVIOUS MODEL AND WILL CONTINUE TO BE REFINED.
• I NEED TO KNOW THE WHAT I APPLY A WAGE ADJUSTMENT TO SALARY AND FRINGE.
• I'M ADJUSTING EVERYONE'S SALARY AND FRINGE.
• ONE AREA I NEED SOME CLARIFICATION ON HAS TO DO WITH THE FACTORIAL ADJUSTMENT THAT YOU MENTIONED.
• I WAS TRYING TO DO THE ADJUSTMENTS ALIGN WITH OTHER TRENDS IN THE CHILD WELFARE SYSTEM.

Transcript Highlights:

• The more substantive change is that, in the salary adjustment for the confidential assistants and the
• deputy registrar, it would clarify that the limitation on the salary adjustment that the bill is providing
• would be the adjustment based on population changes.
• a year, over 50% of the current Louisiana salary.
• a year, over 50% of the current Louisiana salary.

Summary: The committee first heard Senate Bill 319, which would tighten and standardize voter identification rules at polling places. Senator Presley and Secretary of State Nancy Landry said the bill replaces the current “generally recognized” photo ID standard with a specific list of acceptable IDs, removes the affidavit-only option, and allows voters without a photo ID to cast a conditional paper ballot at the registrar of voters office or during early voting if they later provide approved documentation within two days after the election. Supporters argued the bill improves consistency, election integrity, and poll-worker guidance while still preserving access through alternative documents and free state IDs; opponents warned it could create confusion and burden seniors, students, homeless voters, and others without easy access to the required documents. After debate, the committee reported SB 319 favorably by a 7-2 vote. The committee then approved Senate Bill 202, which adds one day of compensated meeting time for parish boards of election supervisors in certain elections, and Senate Bill 25, which revises the compensation schedule for registrars of voters and related staff. SB 25 was amended to remove outdated step references and make conforming technical changes, and supporters said the pay structure has not been updated since 2007 despite increased duties and workload. The committee also adopted and reported favorably Senate Concurrent Resolution 29, creating a legislative study committee on water quality in the Chafalalaya Basin, and House Concurrent Resolution 85, creating a task force on illegal dumping, both with technical amendments. In addition, the committee advanced Senate Concurrent Resolution 63, which asks the legislative auditor to review how fiscal notes are prepared during session, and Senate Concurrent Resolution 33, which creates a work-based learning coordination task force to improve alignment among education, workforce, and employer partners. SCR 33 was amended to change the appointing authority for two members. The committee also approved Senate Concurrent Resolution 5, establishing the Louisiana-Ireland Trade Commission, and House Resolution 196, which creates a study committee on the impact of fallen trees on residential property and insurance issues. Several of these measures were supported by agency representatives or outside groups, and the committee adopted technical amendments where needed before reporting the bills and resolutions favorably.

Transcript Highlights:

• adjustments included in the 2024-25 appropriations.
• Recommendations increase funding to 8.8 million dollars to biennialize the statewide salary adjustments
• TVMDL has had to increase starting salary offers by an average of 34 percent.
• This is causing salary inequities with our existing staff that must be addressed.
• But you can then adjust. Things like altitude, by managing the temperature and pressure.

Committee: House Appropriations - S/C on Article III

Transcript Highlights:

• with these increases we are experiencing, and school boards have been forced to pay lower wages and salaries
• the insurance committee where we listened to a consulting company who has paid five times my yearly salary
• /c> company who has paid five times my company who has paid five times my yearly<00:09:06.560><c> salary
• explain to us how prices yearly salary explain to us how prices are<00:09:09.279><c> going</c><00:09
• </c><00:30:27.360><c> over</c> negotiations to prioritize salary over negotiations to prioritize salary

Transcript Highlights:

• Also, there is a zero-dollar FTP adjustment in the Washington, Idaho, Montana, Utah Veterinary Education
• Add 1.5 FTP for an FTP adjustment in the Washington, Idaho, Montana, Utah FTP for an FTP adjustment in
• There was no new salary money.
• "We're competing with other salaries, even in K-12 education.
• Some of those salaries compete with our community colleges. So I have a difficult time with this.

Summary: The committee took up a series of JFAC budget items, beginning with health education programs. Members approved an FY 2027 increase of $900,000 and 2.5 FTP for psychiatry, family medicine, OB fellowship, child psychiatry, and veterinary education slots. They then adopted language to shift funding for the family medicine OB fellowship to the rural health transformation program if those funds become available before July 1, 2026, with the general fund then redirected to undergraduate medical education seats under H 368. The language drew debate about whether rural health money should be reserved for rural facilities and whether the provision would preempt a future committee’s role, but it ultimately passed. The committee next approved the Office of the State Board of Education budget, including Canvas LMS renewal, transfer of risk managers to institutions, and a federal post-secondary improvement grant, with a net increase of $4,487,900 and a reduction of four FTP. For colleges and universities, a substitute motion to add general fund support for an additional rescission restoration and other items failed, and the original motion passed instead, providing a smaller increase. Community colleges received a one-time general fund increase of $1,123,200 after the committee rejected a substitute that would have only reduced Canvas costs. Career Technical Education was addressed twice: first, the committee approved $957,600 one-time from the Career Ready Students Fund to restore a prior rescission in secondary programs; later, it approved $1,877,300 one-time from the same fund for secondary CTE programs after rejecting a substitute that would have used ongoing general fund support. The Department of Administration budget included utilities, Medicaid procurement staffing, training, document services, IT hardware, and a rescission correction. The committee rejected the main motion after concerns were raised about staffing for a large Medicaid managed care contract, but then approved the Permanent Building Fund budget, including $890,100 for design of a National Guard Readiness Center in Bonneville County and $71.6 million for replacement items and maintenance projects. Standard language and reporting language for that fund were adopted by unanimous consent. Finally, the State Lottery received approval for $25,800 in dedicated funds for replacement computers used in scratch-game design. The committee adjourned after announcing future work group meetings and upcoming budget agenda items.

Transcript Highlights:

• The next proposal we have is a federal authority adjustment.
• What is the average salary for one of the attorneys?
• What is the average salary for one of the attorneys?
• I'm just curious what our salary would look like for these positions.
• Because the salaries are not competitive.

Summary: The subcommittee heard May Revision presentations for the Office of Emergency Services, Judicial Branch, CDCR, and the Department of Justice, with the LAO offering comments and recommendations throughout. For Cal OES, the administration outlined funding for relocating the Red Mountain communications site, increased FEMA reimbursement authority, cybersecurity grants, next-generation 911 support, and a reduction to the Flexible Cash Assistance for Survivors of Crime program. Members raised concerns about VOCA backfill and disaster reimbursement, while the LAO recommended approving the 911 request with reporting, adding contingency planning for cybersecurity grants, clarifying the FEMA reimbursement language, and increasing reporting on emergency spending. For the Judicial Branch, the May Revision included funding for implementation of the Trial Nations Access to Justice Act, reductions tied to court facilities and employee benefits, and General Fund solutions such as a reduction to the pretrial release program, a reversion from the Trial Court Trust Fund, and elimination of the jury duty pilot program. The LAO cautioned that the pretrial reduction could affect detention and release decisions and recommended tighter legislative oversight over the trust fund transfer and reallocation language. Members questioned the impact of the pretrial cut, the lack of Prop. 36 court funding, and the rationale for the jury pilot elimination; the Judicial Branch said it was generally supportive of the budget as proposed. CDCR presented requests for roof repairs, fire alarm replacements, CalAIM-related costs, and trailer bill changes on incarcerated college students, mental health hiring, and tuberculosis testing, along with a planned prison closure by October 2026. The department also proposed reducing or delaying several items, including radio replacement, ADA improvements, COVID mitigation, and some facility upgrades, while adding a $125 million placeholder for consultant-driven operational savings. The LAO recommended rejecting or reducing several San Quentin-related proposals, questioned the staffing and contract medical requests, and urged more transparency on the consultant savings plan; members expressed concern about the realism of the savings targets and the potential legal or operational risks from delaying ADA and radio projects. For DOJ, the May Revision proposed ongoing funding and 44 positions to defend against federal actions, IT and accounting system upgrades, implementation funding for AB 1877, and a special fund loan. The LAO supported the KLETS connection but asked for a contingency plan if the new DMV link is delayed, noted that AB 1877 would not be fully implemented without additional funding, and recommended limiting and reporting on the federal accountability workload. Members questioned the size and permanence of the DOJ request, the use of the earlier $25 million special session appropriation, and the pace of federal litigation; DOJ said the new request would support ongoing litigation, expert assistance, and coordination across multiple cases and states.