Transcript Highlights:

• The consequence of those reforms has been an acceleration of decarceration in the state.
• The consequence of those reforms has been an acceleration of decarceration in the state.
• FY25 budgets: when you look at the budgets, sheriff's offices, $713 million, just under $714 million.
• Counts are dropping, budgets are going up.
• In 2018, we've shifted with the Criminal Justice Reform Act.

Summary: The meeting was the third public session of the Special Commission on Correctional Consolidation and Collaboration. Members introduced themselves, and the commission approved the prior meeting minutes. The main presentation came from the Massachusetts Sheriffs’ Association, led by several sheriffs, who described the role of sheriffs’ offices as independently elected county institutions that operate jails and houses of correction, regional lockups, civil process, 911 communications in some counties, school resource officers, and investigative units. They emphasized that most of their population is pretrial, that admissions and releases are far higher than the Department of Correction’s, and that their facilities now house more people overall than DOC despite having a smaller budget. The sheriffs argued that their work has shifted toward rehabilitation, reentry, and public health, highlighting extensive programming in mental health, substance use treatment, medication-assisted treatment, education, vocational training, and gender-specific, trauma-informed services. They said standardized risk/needs assessments and better funding would help make services more consistent across counties. They also described specialized units and models such as regional evaluation and stabilization units, older-adult housing, emerging adult and gang-intervention programs, and reentry centers that connect people to housing, employment, family support, and community services. Several examples were cited, including Suffolk’s Project Evolve, Middlesex’s older-adult unit, Hampden’s MAGIC program, Worcester’s STOP program, and county reentry centers across the state. A major theme was that these programs are expensive but, in the sheriffs’ view, reduce recidivism and improve safety by stabilizing people before release and supporting them afterward. They pointed to COVID-19 as a period when sheriffs adapted facilities for quarantine and medical care, and said they continue to work with public health partners. They also stressed that their facilities are heavily audited by state and federal agencies and that maintaining humane, safe conditions requires significant staffing and operating costs. Commission members responded favorably at points, noting the importance of the turnover in sheriff populations and the need to understand the different correctional mission compared with DOC. The meeting ended with discussion of future commission dates and a note that the presentation materials would be shared electronically.

Transcript Highlights:

• In addition, thank you for the budget request approval.
• Because these reforms are happening.
• I know the budget is challenged.
• I know the budget is challenged.
• I know the budget is challenged.

Summary: The committee first heard AB 597, a bill to strengthen consumer protections for disaster survivors who use public adjusters. The author and the Department of Insurance said the measure would cap public adjuster fees at 15% for claims tied to declared disasters, require clearer contracts, prohibit solicitation during emergency conditions, and allow consumers to rescind contracts that were solicited during prohibited periods. Insurance industry groups supported the bill, while public adjuster representatives opposed it as written but said they were willing to work on revisions. The committee approved the bill and re-referred it to Appropriations; the roll call was ultimately recorded as 16-0. The committee then held its fourth oversight hearing on the Department of Insurance’s Sustainable Insurance Strategy, with Commissioner Ricardo Lara giving an extensive update on wildfire-related market reforms and consumer protections. He said the recent Southern California wildfires had not derailed the strategy and described actions including advance claim payments, a one-year moratorium on residential non-renewals in affected areas, a new fraud strike team, smoke-damage claim guidance, additional living expense protections, and a consumer claims tracker. He reported more than $12.1 billion in claims paid, over 37,000 claims filed, and more than 7,000 survivors assisted directly. He also discussed related bills and reforms, including AB 597, SB 495, SB 547, SB 429, SB 616, AB 888, and AB 2026. Members questioned the commissioner about the Fair Plan’s growing exposure, the $1 billion assessment, rate increases, non-renewals, underinsurance, and whether the reforms would actually stabilize the market. Lara said the assessment was already approved, that policyholders would not be hit with one large bill because insurers have two years to recover costs, and that the department was pushing insurers to use catastrophe modeling and reinsurance tools in exchange for commitments to write more policies in wildfire-distressed areas. He said the department expects to see market stabilization by 2026, though he emphasized the timeline depends on insurer participation, implementation of the new regulations, and future disaster activity. Members generally expressed support for the goals of the strategy while pressing for clearer expectations for consumers and faster action on mitigation and market reform.

Transcript Highlights:

• work on reforming Chapter 70.
• Is it right about at the foundation budget, or is it above the foundation budget?
• budget.
• City Is it right about it the foundation budget or is it above the foundation budget?
• As in most towns, our budget makes up over 60% of our total budget.

Committee: Joint Joint Committee on Education

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

Transcript Highlights:

• I'm also testifying in support of an act reforming charter school funding in Massachusetts.
• Municipal budgets, as you know, across the Commonwealth are strained.
• Both communities have significant money going from district school budgets to charter budgets, provoking
• us to try to work with this committee through this legislation on ideas for structural reform.
• Both communities have significant money going from district school budgets to charter budgets, provoking

Committee: Joint Joint Committee on Education

Summary: The Joint Committee on Education held a lengthy hearing on a large slate of bills focused primarily on charter school policy and vocational technical education. Committee members opened with ground rules for testimony, including a two-minute limit, written testimony acceptance, and a live-streamed format. The committee then heard testimony on bills to expand collective bargaining rights in Horace Mann and Innovation Schools, reform charter school funding and reimbursement, allow enrollment preferences for high-need students in charter lotteries, and require BESE to consider district impacts when approving new or expanded charters. Several witnesses, including union leaders, parents, educators, and legislators, argued that charter growth has strained district budgets and that funding formulas should be reworked to better protect public schools; charter advocates and alumni countered that charter schools serve high-need students well and should not be penalized for their success. A major portion of the hearing focused on vocational technical education bills, including proposals to expand access and capacity, create a large grant program, and increase MSBA reimbursement rates for vocational school construction. Supporters described long waitlists, strong labor-market demand, and the higher cost of building and maintaining vocational schools, while municipal officials emphasized the tax burden on local communities. The committee also heard testimony on charter school reimbursement bills that would extend the state’s reimbursement schedule, with witnesses from districts such as Boston, Worcester, Fall River, and New Bedford describing large net losses to charter tuition and arguing for longer reimbursement periods and structural reform. The committee took no final votes during the hearing. In one instance, the chair said a bill would be held open until a missing senator could testify. Members asked several detailed questions about charter admissions lotteries, special education placements, funding formulas, and the practical effects of proposed charter caps and reimbursement changes. The hearing remained informational, with witnesses and committee members presenting sharply different views on whether the bills would improve equity and opportunity or harm existing public school systems.

Transcript Highlights:

• I sincerely governor's budget proposal.
• She then turned to questions about permitting reform, saying the handout says permitting reform will
• </c><00:37:23.359><c> doesn't</c> Jordan that permitting reform doesn't Jordan that permitting reform
• budget recommendations.
• </c> and our broader permitting reform and our broader permitting reform coalition<01:36:10.400><c> seeks

Bills: HF1587 , HF2293 , HF2218 , HF1208 , HF1482

Committee: House Environment and Natural Resources Finance and Policy

Transcript Highlights:

• Julia Gradney with the Office of Planning and Budget.
• Next is the five-year baseline budget.
• Our total proposed operating budget is...” “...budget for fiscal year 2027.
• Our operating budget rises by about 2%.
• Current year budget. All right. Any questions?

Summary: The Joint Legislative Committee on the Budget met on February 19, 2026, and first received unchanged fiscal status and five-year baseline budget reports from the Office of Planning and Budget; the fiscal status statement was approved without objection, and the baseline budget required no action. The committee then approved a request from Facility Planning and Control to add five higher education deferred maintenance projects to the eligible list under Act 751, and reviewed four change orders over $50,000 for informational purposes only. Members approved the Louisiana Lottery Corporation’s fiscal year 2026-2027 operating budget after testimony highlighted projected gross revenue of $610 million, 29 years without legislative auditor findings, and continued support for the MFP. The committee also approved, en bloc, the operating budgets for LASERS, the Teachers’ Retirement System of Louisiana, the School Employees’ Retirement System, and the State Police Retirement System. Retirement officials described modest budget increases or decreases, strong investment performance, and ongoing efforts to reduce unfunded liabilities; members discussed the impact of surplus payments toward UAL debt and the possibility of future COLAs, including a 2% COLA if the legislature reaches the required two-thirds vote. The committee approved payment of $20,262.32 in prior-year deputy sheriff supplemental pay expenditures from the current-year budget. It also approved several legislative intent clarifications for prior appropriations, including changes involving Tangipahoa Parish, Harahan, Allen Parish, Morgan City, and DeSoto Parish School System-related funding. In addition, the Water Sector Commission’s recommendation for $2.8 million in additional funding for four ongoing water and sewer projects was approved. The remaining items were reviewed without action: an RTI International contract extension for DEQ air-quality filter weighing, amendments to four Department of Culture, Recreation and Tourism marketing contracts to extend and supplement funding, and the fifth-year amendment to the Office of Risk Management’s Sedgwick claims administration contract, valued at $21.1 million. The meeting adjourned after no further business.

Transcript Highlights:

• First, fees, along with governance reform, offered fee reform.
• This is a tremendous achievement from reform efforts.
• First, fees, along with governance reform, offered fee reform.
• This is a tremendous achievement from reform efforts.
• We are glad that there have been some reforms.

Summary: The joint oversight hearing focused on DTSC’s implementation of SB 158 reforms, including enforcement, community engagement, fiscal stability, the hazardous waste management plan, permitting backlogs, and the Safer Consumer Products Program. Director Katie Butler said DTSC is now more transparent and proactive, citing stronger enforcement actions, an online inspections map, community open houses, the Environmental Justice Advisory Council, wildfire hazardous waste removal in Los Angeles, and progress on cleanup and permit decisions. She said the department is fiscally stable after fee changes, has released a draft hazardous waste management plan, and is revising it in response to public and board comments, including removing a proposal to send certain contaminated soil to municipal landfills. Board Chair Andrew Rakestraw described the board’s oversight role on fees, transparency, appeals, and performance metrics, and said the board is working toward revised metrics, a revised plan, and future fee votes. Members pressed DTSC on several issues. Senator Blakespear raised extended producer responsibility programs and asked how DTSC could reduce the cost and complexity of launching them; Butler said enforcement and partnerships with local authorities are essential, and Rakestraw suggested closer coordination with CalRecycle. Chair Connolly asked about wildfire cleanup, fee stability, Safer Consumer Products progress, and permit lengths; Butler said residential fire cleanup is largely complete, the fee system is now stable, the consumer products program has many technical projects underway and is expected to reach more listings over time, and some permits are set for five years to hold facilities accountable sooner. Senator Menjivar questioned how DTSC balances hazardous waste capacity with community impacts from facilities with violation histories, and Butler said permits are reviewed through engineering controls, health risk assessments, public comment, and, where needed, stricter conditions. Senator Reyes emphasized the need for stronger protections for overburdened communities and asked about landfill leachate and goal-setting in the hazardous waste plan; Butler said DTSC is using its hazardous waste authority where municipal landfill leachate shows hazardous characteristics and is looking at broader statewide responses. Panelists from the California Council for Environmental and Economic Balance and Earthjustice offered contrasting views. CCEB’s Don Krepke supported SB 158’s reforms but urged risk-based decision-making, broader use of alternative management standards, alignment with federal and other state hazardous waste classifications, less duplication across agencies, and caution about added costs from permitting and cumulative impacts rules; he also warned that the generation-and-handling fee remains structurally weak and suggested more General Fund support for statewide planning work. Earthjustice’s Angela Johnson-Mazares argued DTSC remains too slow and too cautious, saying communities continue to face delayed permits, weak enforcement, and ongoing harm, and that the agency should prioritize source reduction, strong permit protections, and more decisive action to prevent emissions and protect frontline communities.

Transcript Highlights:

• Several of these changes are also proposed in the governor's budget.
• Several of these changes are also proposed in the governor's budget.
• Real permitting reform would ensure public participation, not limited as HF 8 would.
• Real permitting reform would ensure public participation, not limited as HF 8 would.
• PCA, I believe, has completed their portion and the budget office has signed off on it.

Transcript Highlights:

• The Florida Tax and Budget Reform Commission, which meets every 20 years, is convening next year.
• The Florida Tax and Budget Reform Commission, which meets every 20 years, is convening next year.
• The Tax and Budget Reform Commission deal with this in its entirety so that it is uniform.
• money in the budget to research what this type of property tax reform might do to our state and the
• If that's needed, I'm sure that the Budget and Tax Reform Commission can look that up, and we'll deal

Committee: Senate Appropriations

Transcript Highlights:

• Julia Gradney with the Office of Planning and Budget.
• Next is the five-year baseline budget.
• Our total proposed operating budget is...
• Our operating budget rose by about 2%.
• Current year budget. All right. Any questions?

Summary: The Joint Legislative Committee on the Budget met on February 19, 2026, and first received an unchanged fiscal status statement and five-year baseline projection from the Office of Planning and Budget. Members approved the fiscal status statement, and the baseline budget was noted as unchanged from the prior month. The committee also approved Facility Planning and Control’s request to add five higher education deferred maintenance projects to the Act 751 eligible list, and reviewed four change orders over $50,000 for informational purposes. The committee then approved the Louisiana Lottery Corporation’s fiscal year 2026-2027 operating budget. Lottery officials reported $610 million in projected gross revenue, emphasized 29 consecutive years without legislative auditor findings or management comments, and noted the corporation’s long-running transfers to the MFP and State General Fund. Members also approved the 2026-2027 operating budgets for LASERS, TRSL, the School Employees’ Retirement System, and the State Police Retirement System en bloc. The retirement systems described modest budget increases or decreases, strong investment performance, and continued progress in reducing unfunded liabilities; members discussed COLA prospects, UAL paydown, and the impact of surplus dollars on retirement debt reduction. The committee approved prior-year deputy sheriff supplemental pay expenditures of $20,262.32 and then approved several legislative intent clarifications for prior appropriations, including items for Tangipahoa Parish, Harahan, Allen Parish, Morgan City, and DeSoto Parish. It also approved the Water Sector Commission’s recommendation for an additional $2.8 million for four ongoing water and sewer projects. Several contract items were reviewed without action, including DEQ’s extension with RTI International, Tourism’s marketing contract amendments, and the Office of Risk Management’s Sedgwick claims administration amendment. The meeting concluded with adjournment after no further business.

Transcript Highlights:

• If you go down to row 76, we have the PED agency budget.
• This is not the budget for next year.
• be smack dab right in the budget.
• It is not part of the budget here.
• Also voted to endorse your budget recommendation.

Transcript Highlights:

• programs in the budget year. 4,745 positions to support the department's programs in the budget year
• So these are... these were implemented to address the budget challenges as part of the 2025 Budget Act
• So Prop. 35 is in calendar year, and then we budget obviously in budget year.
• as a budget solution.
• Here with rate reforms in Sub 3.

Summary: The subcommittee heard an overview of the Department of Health Care Services’ proposed budget, including a $229.1 billion total-funds budget and projected Medi-Cal enrollment decline as redeterminations continue. Members focused heavily on the fiscal and programmatic effects of prior budget solutions and federal changes, especially the elimination of General Fund-supported Prop. 56 dental supplemental payments beginning July 1, 2026, the hospice utilization-management change, and the impact of reduced caseloads alongside rising health care costs. DHCS said it is still completing required access and rate-reduction analyses for the dental cuts and has been engaging stakeholders, but could not yet quantify the real-world effect on utilization or provider participation. The committee also reviewed the November 2025 Medi-Cal local assistance estimate, which shows higher General Fund spending despite lower enrollment, driven by managed care rate growth, Medicare cost growth, state-only claiming, and federal policy changes. The hearing then turned to provider taxes and federal H.R. 1 constraints, with extensive discussion of the MCO tax, the hospital quality assurance fee, and other health care-related taxes. DHCS explained that H.R. 1 phases down allowable tax levels and tightens “generally redistributive” rules, making the current MCO tax structure and the proposed higher hospital fee levels difficult or impossible to renew as originally designed. Staff and the LAO described the tradeoff between preserving Medi-Cal funding and avoiding higher costs on private providers and consumers. Members asked about options for preserving revenue, including possible amendments to Prop. 35 or returning to voters, and were told the department is still evaluating approaches while federal guidance remains in flux. The committee also reviewed hospital payment increases already implemented through state-directed payments, with DHCS noting that H.R. 1 will force those payments down to Medicare levels over time. Several budget change proposals were discussed and left open, including requests tied to the managed care final rule, managed care operations, hospital value strategy, long-term care payment transparency, and interoperability requirements. The committee also heard about a one-year trailer bill extension for skilled nursing facility financing, including continuation of the SNF workforce standards program, the SNF quality assurance fee, and annual rate growth, while the department develops a longer-term financing redesign for 2027-28. Members expressed skepticism about repeated rate reform efforts and questioned whether a one-year extension of the eliminated workforce quality incentive program should be restored during the transition. Finally, Covered California presented its budget and enrollment update, reporting that the expiration of the federal enhanced premium tax credit is expected to reduce affordability significantly, with average premiums roughly doubling for many enrollees and as many as 400,000 Californians potentially losing marketplace coverage over time. The exchange said California’s $190 million subsidy program is helping lower-income enrollees, but not enough to offset the federal loss, and it is also implementing a new gender-affirming care benefit and awaiting federal action on benchmark plan changes.

Transcript Highlights:

• So we have a couple of budget change proposals before you.
• I really appreciate the consideration of this budget change proposal.
• weigh these against other priorities across the budget.
• But we have worked for the reforms, and some reforms have been very important in the last couple of years
• Maida Sanchez with Californians for Pesticide Reform.

Summary: The Assembly Budget Subcommittee on Climate Crisis, Resources, Energy, and Transportation heard an informational hearing with Secretary Garcia and CalEPA-related departments on the administration’s budget proposals and related environmental programs. Secretary Garcia highlighted CalEPA’s work on methane reduction, community air protection, water infrastructure, Exide cleanup, safer pesticide alternatives, Prop 4 implementation, and Bay-Delta water quality, while emphasizing the impact of federal rollbacks and the need for flexible state response. Members raised broader policy concerns about the polluter-pays principle, special fund vacancies, and whether the state is maintaining sufficient staffing and enforcement capacity, especially after recent fee increases. A major portion of the hearing focused on landfill support, response, and enforcement, particularly subsurface elevated temperature events at Chiquita Canyon and El Sobrante. CalEPA requested $5.1 million and 12 positions to improve monitoring, technical response, coordination, and enforcement across CalRecycle, CARB, DTSC, the Water Board, and OEHHA. Assembly Member Schiavo described severe community impacts from Chiquita Canyon and pressed for stronger state action, more transparency, and accountability from landfill operators; Assembly Member Rogers emphasized that accountability must mean forcing operators to take preventive measures and bear the costs. Agency staff said the proposal would help augment current response efforts, support local enforcement agencies, and improve early detection, while acknowledging that the causes of set events are not fully understood and may involve factors such as lithium-ion batteries, oxygen intrusion, and gas extraction practices. The committee then heard an update on the Safe and Affordable Drinking Water program and the effects of the new cap-and-invest structure. State Water Board Chair Joaquin Esquivel reported that the program has reduced the number of Californians without safe drinking water from 1.6 million to about 600,000 since 2019, while also bringing 320 systems back into compliance and distributing $1.8 billion in drinking water grants. The Legislative Analyst’s Office explained that under SB 840, SAFER is now in a lower funding tier, which could reduce annual proceeds from the prior $130 million level to a projected $92 million in 2026-27 and delay funding until later in the year. Members expressed concern that this deprioritizes rural drinking water needs, while the board said it would continue using SAFER’s flexible funds for emergency water, technical assistance, and construction, and would keep pushing consolidations and other long-term solutions for the remaining failing systems.

Transcript Highlights:

• A lot of us supported public records reform.
• And I was proud to support that reform legislation back then.
• Seeking to do in this public records reform ballot question.
• To vote on bills, to vote on budgets, to work on things like that.
• So which budget records are you seeking?

Bills: H5004

Committee: Joint Special Joint Committee on Initiative Petitions

Summary: The Special Joint Committee on Initiative Petitions held a public hearing on Initiative Petition 25-14, H 5-004, “an act to improve access to public records.” Chairs Cindy Friedman and Alice Peisch outlined the Article 48 process and explained that the committee was hearing expert testimony, then proponents, then opponents, before any public testimony. The first expert, Will Clark of the National Conference of State Legislatures, gave a general overview of public records laws across the states, emphasizing that all states have some form of open-records law but that exemptions, timelines, fees, and coverage of legislatures vary widely. He discussed legislative exemptions, legislative privilege, and court cases showing that outcomes often turn on the exact language of state constitutions, statutes, and chamber rules. Rebecca Murray, General Counsel for the Secretary of the Commonwealth, testified about Massachusetts public records administration, saying requests and appeals have risen sharply since the 2017 law update, with state agency requests increasing from 22,572 in 2017 to 47,776 in 2025 and appeals reaching a record 4,051 cases in 2025. She said the initiative would extend the law to the General Court and the Governor’s office and add exemptions for those branches, while warning that the volume and complexity of requests could require more resources. The proponents, led by Jesse Littlewood of the Coalition for Healthy Democracy, Scotia Hila of Act on Mass, and Auditor Diana DiZoglio, argued that Massachusetts is an outlier for exempting the legislature and governor from public records law and that the proposal would create needed accountability without exposing personal constituent communications or internal deliberations. They said the measure would make records such as committee votes, final bill drafts, amendments, expenditures, attendance records, minutes, and public testimony available, while preserving exemptions for constituent services, draft legislation, internal staff communications, and policy development discussions. DiZoglio emphasized that the initiative is aimed at basic administrative and financial records, citing her own difficulty obtaining receipts, contracts, and procurement documents, and said the public should be able to see how taxpayer dollars are spent. Committee members questioned the witnesses extensively about the scope of exemptions, constituent privacy, legislative privilege, and whether the measure could reach communications with nonprofits or lobbying-type interactions; proponents responded that privacy and constituent-service exemptions were intended to remain in place, though some members pressed for clearer statutory language. The hearing also included a contentious exchange over whether the initiative could affect legislative communications and whether the Senate had already taken a position against the measure. Some members raised concerns about separation of powers, legislative privilege, and the possibility of exposing constituent communications or internal deliberations, while proponents argued that the initiative was narrowly tailored and that any legal disputes could be resolved in court. No votes or formal actions were taken at the hearing. The committee concluded the testimony portion after hearing from the proponents and their questions, with the matter left pending for further consideration.

Transcript Highlights:

• And again, we talk about workforce reform with regard to employers and workers getting better services
• They're on the mandatory side of the federal budget. So what does that mean?
• That often creates a barrier to reform and an organizational and program culture.
• and create the welfare reform movement of the 1990s.”
• That's why we have the 1996 reform.

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Transcript Highlights:

• They are overspending their budget by at least 40, maybe up to 60 million.
• Outlay reform we may need to consider for the future, but also the implementation of reforms that you
• It'll likely be a part of your budget guidelines.
• This is the operating budget that will be submitted on May 1st.
• To adopting our operating budget. Seeing none, we've adopted our operating budget. And then, Mr.

Transcript Highlights:

• programs in the budget year. 4,745 positions to support the department's programs in the budget year
• So these are, these were implemented to address the budget challenges as part of the 2025 Budget Act.
• So Prop. 35 is in calendar year, and then we budget, obviously, in budget year.
• as a budget solution.
• as a budget solution.

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:

• These added costs aren't just numbers in a budget.
• They force the working class and retirees on a fixed budget to leave.
• </c><00:16:22.800><c> Not</c> retirees on a fixed budget to leave.
• Not retirees on a fixed budget to leave.
• </c><00:39:14.000><c> will</c> and the work of education reform will and the work of education reform

Transcript Highlights:

• For the 2026-27 scholarship, which will be paid for in the 2027-28 budget, the Governor's budget proposes
• last budget, the 2025-26 budget, which total... ...the last budget, the 2025-26 budget, which total $748
• The Budget Act of 2025 included funding for the design phases of 29 new projects, with budget-year state
• in the 2025 Budget Act.
• The 2026 Governor's Budget also includes proposals for 10 new projects, with a budget-year state cost

Summary: The committee first heard updates from the California State University on its turnaround plans for seven campuses with enrollment declines. CSU said overall enrollment has grown for three straight years, but some campuses—especially in Northern California—continue to face structural declines tied to demographics and community college pipelines. The system described campus-specific strategies such as outreach to stopped-out and adult learners, guaranteed admissions, partnerships with community colleges and high schools, expanded high-demand programs, and cost reductions including hiring freezes, program suspensions, and shared administrative services. The LAO said the plans were reasonable but urged regular reporting so the Legislature can track results. Committee members pressed CSU for ongoing implementation updates, stronger recruiting efforts, and safeguards around AI use; CSU said it would continue regular check-ins and share best practices across campuses. The second item focused on the Bureau for Private Postsecondary Education and its request for a $10 million General Fund appropriation to repay a special fund loan used for litigation costs. DCA and BPPE said the bureau has long had a structural deficit and has already cut positions, streamlined operations, and shifted some costs to the Student Tuition Recovery Fund, but still needs fee increases through the sunset review process. The LAO opposed the General Fund backfill, arguing the bureau can cover near-term costs with its loan, that litigation costs should generally be borne by regulated entities through fees, and that using General Fund money could set a precedent. Finance supported the one-time backfill as a way to avoid larger fee increases on institutions and to isolate the litigation expense from the bureau’s ongoing structural shortfall. Members asked how the bureau would avoid repeating the problem; BPPE said it has updated policies and practices, including disability accommodation procedures and non-discrimination training. The committee then reviewed Cal Grant funding and program updates from CSAC, UC, CSU, and the community colleges. CSAC said the Governor’s budget would increase Cal Grant funding to about $3.2 billion in 2026-27, driven by enrollment growth and higher tuition at UC and CSU, and highlighted efforts to improve payment processing and financial aid data. UC and CSU emphasized that Cal Grants are central to affordability and debt reduction, while also warning that federal changes under H.R. 1 could reduce access to loans and harm graduate and part-time students. Community colleges reported rising aid applications and awards, but said students still face major affordability barriers, especially mixed-status and undocumented students, and asked for more support for aid administration and completion grants. The chair repeatedly asked for data on eligible students who are not receiving Cal Grants and for a phased-in path to implement the Cal Grant Equity Framework; Finance said full implementation would cost hundreds of millions and the state is not currently in a position to fund it. Finally, the committee began discussion of the Middle Class Scholarship Program. CSAC said the program helps low- and middle-income students cover total cost of attendance, not just tuition, and warned that cutting funding by more than half would reduce award coverage from 35% to 17.5% of cost of attendance. CSU and UC said the program is important for reducing student debt and supporting affordability, and CSU noted recent administrative changes have reduced workload and award adjustments. The hearing continued into the next agenda item after these presentations.

Transcript Highlights:

• For the 2026-27 scholarship, which will be paid for in the 2027-28 budget, the Governor's budget proposes
• last budget, the 2025-26 budget, which total... ...the last budget, the 2025-26 budget, which total $748
• The Budget Act of 2025 included funding for the design phases of 29 new projects with budget-year state
• in the 2025 Budget Act.
• The 2026 Governor's Budget also includes proposals for 10 new projects, with a budget-year state cost