Transcript Highlights:

• We kind of focused the Budget in Brief this year on, obviously, as Senator Lanier noted, the state budget
• We kind of focused the Budget in Brief this year on, obviously, as Senator Lanier noted, the state budget
• fund for agency budgets.
• This is a budget, and the executive recognizes that this is a budget that we will have control over for
• The 45 million is In the budget for the SNAP overhead costs. Yes, it's in both budgets.

Committees: Senate Senate Finance , Senate House Appropriations & Finance

Transcript Highlights:

• Living within our means, avoiding unnecessary off-budget ...means, avoiding unnecessary off-budget spending
• The capital budget over the years has evolved into sort of two capital budgets, if you will, statewide
• So, >> exactly. >> Exactly. >> Exactly. >> So, there, this capital budget, next capital budget, one after
• Today we are budgeted for 225 veterans. In our state Budgeted for 225 veterans.
• I know that that money was encumbered from one budget to this budget.

Transcript Highlights:

• The only reserve we had in the budget was to just cover unanticipated expenses in that budget year.
• And that, of course, makes the budget more difficult to manage and more difficult to enact a budget that
• I'm the budget director at the California Budget and Policy Center.
• Budget Center?
• So we're talking about balancing our budget, but what happens when the cities' and counties' budgets

Summary: The Senate Budget and Fiscal Review Committee held an informational hearing on California’s Budget Stabilization Account, or Rainy Day Fund, with opening remarks focused on the state’s long history of revenue volatility and the role reserves play in smoothing downturns. The Legislative Analyst’s Office explained that California’s personal income tax base is highly volatile because high-income earners’ income is tied to capital gains and other fluctuating sources, and that Proposition 2’s current reserve rules set aside 1.5% of General Fund revenues plus a share of excess capital gains, but cap constitutional deposits at 10% of General Fund taxes. The LAO said its analysis evaluates reserve policy over decades and found the current system would cover about 30% of funding shortfalls in a 90th-percentile downturn scenario over 50 years, which is an improvement over no reserve but still inadequate. The LAO recommended raising the reserve cap substantially, ultimately to 50% by 2055, with an immediate increase to 20% and gradual increases thereafter. It also suggested either replacing Proposition 2’s deposit formulas with broader rules that capture volatility across all tax revenues or, alternatively, depositing all excess capital gains rather than only a share. The Department of Finance said the Governor’s prior proposal similarly sought to raise the cap from 10% to 20% and exclude reserve deposits and withdrawals from the state appropriations limit, arguing those two constraints limited the state’s ability to save during recent revenue surges. Other panelists and members discussed whether reserves should be paired with broader structural changes, including unemployment insurance reform, safety-net funding, infrastructure reserves, and the projected surplus temporary holding account. The California Budget and Policy Center supported reserve reform but emphasized balancing savings with current needs and noted other tools such as revenue increases, borrowing from special funds, and the new surplus-holding account. Members debated the causes and effects of Proposition 13, the appropriations limit, business departures, and whether reserve policy should be more directly tied to protecting Californians’ access to health care, food assistance, child care, and other core services. No votes or formal actions were taken, as the hearing was informational only.

Transcript Highlights:

• This budget is crucial.
• budget proposal as filed.
• budget proposal is filed.
• budget lines.
• The $54 million in this budget request is distributed across seven budget lines.

Committee: Joint Joint Committee on Ways and Means

Summary: The Joint Committee on Ways and Means held a public hearing in Lawrence focused on the governor’s proposed FY27 budget for education and local aid. Opening remarks from Senator Pavel Payano, Representative Pat Duffy, and local leaders emphasized the importance of education funding for Lawrence and other Gateway Cities, with Acting Mayor Giovanni Rodriguez and Superintendent Ralph Carrero highlighting the city’s high-need student population, Chapter 70 and Student Opportunity Act funding, early college and career pathways, and the need for sustained support to close achievement gaps. The Education Secretariat testified in support of the budget, with Acting Secretary Amy Kershaw outlining investments in early literacy, universal pre-K, student mental health, school meals, high school redesign, higher education affordability, and early childhood systems. Commissioner Noi Ortega described higher education proposals including expanded free community college, continued free tuition at public four-year institutions, student success funding, early college and dual enrollment investments, and the Bright Act and Drive Act. Commissioner Pedro Martinez detailed K-12 proposals such as full Student Opportunity Act funding, increased Chapter 70 aid, special education circuit breaker funding, transportation aid, literacy initiatives, and a new Accelerating Achievement Initiative aimed at schools with the greatest needs. Commissioner Kershaw also described early education proposals including funding for C3, child care financial assistance, CPPI, workforce supports, and administrative funding restoration. Committee members questioned the administration about the pending local contribution formula study, the final year of Student Opportunity Act implementation, and the need to address health care and other cost drivers in school funding. Officials said the local contribution report is expected by the end of June and that a draft will be shared for public comment after data analysis is complete. Members also raised concerns about Chapter 70 disparities between districts and urged a broader review of the formula. In response, the commissioners said the Student Opportunity Act narrowed funding gaps but further work is needed, and they pointed to the new achievement initiative, literacy efforts, and early college expansion as ways to improve outcomes. No votes were taken at the hearing.

Transcript Highlights:

• or the executive budget?
• can submit their base budget for.
• , they did not do that within the budget.
• When they said that they did this within the budget, they did not do that within the budget.
• And then the budget.

Committee: House Appropriations - Human Resources Division

Summary: The committee took up Senate Bill 2025, the Veterans Home/Veterans Affairs budget, and worked through the long sheet line by line. Members discussed base payroll, salary and health insurance increases, FTE pool adjustments, IT rate increases, operating expenses, transportation grants, the PTSD service dog program, salary equity requests, temporary help/intern funding, a Veterans Benefit Specialist FTE, accrued leave, and several one-time or carryover items including the Fisher House, document scanning, and veterans medical transportation. The committee also reviewed proposed policy language that would shift governance authority for the Veterans Home and Department of Veterans Affairs from the Administrative Committee on Veterans Affairs to the governor, and would remove board authority over salary-setting and related hiring powers. A major portion of the meeting focused on clarifying the commissioner salary equity line and how the agency had shifted operating dollars to fund the commissioner’s current salary increase. After discussion with agency staff and Lonnie, the committee voted to remove the separate commissioner salary equity increase line and instead restore operating funding, ultimately setting the operating line at $50,000 above the prior amount rather than fully funding the executive request. The committee also approved funding for the Veterans Benefit Specialist FTE, approved a carryforward/exemption for accrued leave, approved authority to accept $200,000 in federal transportation grant funds, approved the $500,000 transfers related to veterans homelessness, and approved the exemption language for certain federal/state fiscal recovery funds after discussing whether the funds were properly obligated. On the governance amendment, members expressed concern about making a major policy change in an appropriations bill, but also frustration over the board’s salary actions. After debate, the committee adopted the amendment transferring governance authority to the governor by a 7-1 vote. The committee also approved a smaller amount for veteran service officer salary equity than requested, and rejected funding for temporary salaries and an intern. The chair then directed staff to prepare the amended bill for further action, with the committee planning to revisit it once the revised version was ready.

Transcript Highlights:

• So today, I am proud to support this budget and this provision.
• Many of our local cities and towns are facing budget crises.
• This House Ways and Means budget increases local aid over last year’s final budget and over the governor
• Our budget before us allows us to be nimble.
• This budget provides $6.68 million This budget provides $6.68 million for the Commonwealth Zoological

Transcript Highlights:

• In the proposed budget, there's a budget... Thank you.
• In the proposed budget, there's a budget.
• slots in the 2027-28 budget.
• slots in the 2027-28 budget.
• It is still in our January budget and governor's budget.

Transcript Highlights:

• So that's what goes into your budget.
• Now, the budget this year has changed... ...because we could find the money in the budget.
• So the budget, the government's budget already equals out to zero with no room? Yes.
• Here we'll get into some budget basics. Sometimes we talk. Here we'll get into some budget basics.
• Now the continuation budget is prepared by the Division of Administration, Office of Planning and Budget

Summary: The House Ways and Means Committee met on March 10, 2026, for a series of informational presentations rather than bill hearings. House Fiscal Division staff reviewed the state’s tax structure, the 2024 third special session tax reform package, and the Revenue Estimating Conference process. They explained the move to a 3% flat individual income tax, a 5.5% flat corporate income tax, the higher standard deduction and retirement-income exclusion, the repeal of several deductions and credits, the repeal of the corporate franchise tax, and the expansion of the sales tax base to certain digital goods. Staff also walked through tax exemption data, showing the size of exemptions relative to collections, and discussed forecasted revenue gaps in the out years, including the effect of the scheduled sales tax rate reduction and the return of transportation-related revenues to their prior dedication. Members asked about declining mineral revenues, digital sales tax collections, corporate collections, and the impact of tax credits and exemptions. Division of Administration and Legislative Fiscal Office staff said lower oil and gas prices, long-term production declines, and the timing of corporate payments were major factors in revenue trends, and that it will take at least another year or two of tax returns to fully understand the reform’s effects. They emphasized that corporate collections are still below the $600 million threshold that affects the state general fund and Revenue Stabilization Fund, though the forecast remains $900 million. The committee also discussed surplus and excess revenues, the distinction between discretionary and non-discretionary spending, and how current-year and prior-year balances are allocated under the constitution. A significant portion of the meeting focused on the relationship between Ways and Means and Appropriations. Chairman McFarland stressed that new fiscal-note bills can force cuts elsewhere if revenue is not available, and urged members to coordinate early with fiscal staff before advancing costly legislation. Members also asked how pending constitutional amendments on teacher pay and inventory tax might affect the budget; staff said the teacher stipend proposal is not currently funded in the executive budget and that the inventory tax proposal would mainly affect local governments and any reimbursements from the Revenue Stabilization Fund if approved. The committee then heard from Louisiana Economic Development Secretary Susan Bouchoux, who reported strong results from recent reforms, including $92 billion in capital investment, 37,000 new jobs, a record year of announcements, a top-10 corporate tax climate ranking, and a pipeline of 189 active projects representing nearly 42,000 potential jobs and $280 billion in potential investment. Members praised LED’s work and discussed the need to pair economic development with workforce training, infrastructure, and predictable tax policy.

Transcript Highlights:

• So that's what goes into your budget.
• So the budget, the government's budget already equals out to zero with no room? Yes.
• The only teacher stipend has been non-recurred from the budget currently, so as the budget is presented
• Here we'll get into some budget basics. Sometimes we talk. Here we'll get into some budget basics.
• Now the continuation budget is prepared by the Division of Administration, Office of Planning and Budget

Committee: House Ways & Means

Transcript Highlights:

• amendment passes, how will Congress even balance a budget?
• They can balance the budget that way, and they certainly will, even with a balanced budget.
• So this magic balanced budget is going to... They are the biggest spenders.
• We have this budget.
• We have this budget.

Committee: Senate Judiciary and Rules

Transcript Highlights:

• We won’t know that until we go and we do the budget and the budget narrative.
• We want a budget, we want a budget narrative.
• We want a budget, we want a budget narrative.
• Does that go to the budget leaders? We turned over to House budget.
• The folks behind to the budget leaders. We turned it over to House budget.

Committee: House Budget

Summary: The committee resumed hearing the Department of Social Services’ Family Support Division budget request for FY 2027, with testimony from Director Mandy Adams, fiscal manager Jennifer Lovell, and other staff. Members reviewed core funding for FSD administration, income maintenance field staff, the call center, Medicaid renewal staffing, EBT, Summer EBT, refugee resettlement, the judgment payment related to EngagePoint, FAMIS/MEDES system maintenance, eligibility verification, and SNAP outreach. Several items were explained as core reductions due to one-time funding, changing match rates, or shifts in federal requirements, especially in light of HR1 implementation and Medicaid/SNAP renewal backlogs. The division emphasized using contract staff, technology upgrades, IVR improvements, and AI call summarization to reduce wait times, clear backlogs, and protect federal funding compliance. A large portion of the discussion focused on the call center and resource centers, including how calls are triaged, how outbound and inbound calls are handled, weekend IVR access, and whether county resource centers are publicized as alternatives. Members asked for more data on backlog volumes, call performance, and customer survey results. The division reported improved average wait times and said it is trying to shift Tier 1 questions to automated tools so staff can focus on more complex Tier 2 matters and interviews. Members also discussed the refugee resettlement line, with questions about why the state is again administering federal refugee support funds, how much of the appropriation will actually be spent in FY 2026 and FY 2027, and what oversight exists; staff said MoRA and its subrecipients will be monitored and that federal reporting and audits apply. The committee also spent considerable time on Summer EBT/Sun Bucks and TANF. Members questioned why some higher-income families might receive Summer EBT in CEP schools, whether the state can alter eligibility rules, and how the program is audited; staff said the criteria come from federal guidance and DESE, and that DSS will be audited later this spring. On TANF, members asked how the department and governor selected organizations and programs for funding, how much TANF was over-appropriated in FY 2026, and whether new additions would require offsets elsewhere. Staff explained that TANF spending is constrained by the block grant and carryover, that some items are mandated or prior-approved, and that new additions would require reductions elsewhere or later restrictions. The committee then recessed before finishing the TANF section, with no votes taken during the portion provided.

Transcript Highlights:

• I'm a budget and policy analyst with the Legislative Services Office.
• It gave IDLA a budget and a cap.
• Keith Bybee, I'm the division manager for budget policy analysis.
• Now, I... ...in and out of the budget stabilization fund.
• So our budget is currently balanced with a lot of excess in that.

Summary: The Joint Finance and Corporation Committee met with a quorum from both chambers and first approved a $6.5 million federal supplemental appropriation for the Military Division to replace failing climate control systems in Idaho Air National Guard buildings at Gowen Field. The committee then considered Idaho State Police funding tied to three revenue measures: a beer excise tax distribution change, a new specialty license plate, and a liquor account distribution change. Members discussed the impact on cities and counties, with several noting the shift away from local governments, but the motion to appropriate $6.695 million in dedicated and federal funds for ISP personnel costs passed and received a do-pass recommendation. The committee next took up two pieces of language related to Idaho Digital Learning Academy. One trailer language item tied to House Bill 940, which would change course fee limits for non-graduation and graduation-required courses, was adopted by unanimous consent. A second proposal to restore IDLA’s access to PSIF after a large appropriation reduction failed after members raised concerns about allowing access before the academy spent down its cash balance and about weakening the budget cap. Members then approved language redirecting about $12 million from the Strategic Initiatives Fund to the local highway distribution formula instead of LTAC grants, after debate over whether formula-based distribution or competitive grants better served local needs. Finally, the committee adopted language preventing an automatic transfer from the Budget Stabilization Fund to the General Fund when the fund exceeds its 15% cap, preserving the fund balance unless the legislature acts otherwise. The meeting adjourned after the final do-pass recommendation was approved.

Transcript Highlights:

• -24 and 2024-25 budget acts.
• as the chair mentioned, is a budget bill junior that amends the 2023, 24, and 25 budget acts.
• , the 2025 Budget Act, for...
• Control Section 91, which was included in the current year budget, the 2025 Budget Act, required the
• So for the benefit of my colleagues on Budget Sub 4 that are not part of Budget Sub 4, the key topic

Committee: House Budget

Transcript Highlights:

• It give me the budget. Let me decide the budget."
• And this budget does not fix... Government. And this budget does not fix it.
• And the budget just mentioned before. And the budget remains<02:35:56.319><c> balanced.
• . budget. budget.
• So, it maintains the budget.

Transcript Highlights:

• That person retired with a significant leave balance, and that's never budgeted, or it's rarely budgeted
• So will we see budgets that have additions, whether you have these budget guidelines or not?
• That's my question on that budget item. Mr.
• or over the budget on it and stuff on it.
• Typically not because budgets grow.

Committee: Joint Budget Section

Transcript Highlights:

• This budget can be found on page 2-59 of your legislative budget book.
• “The budget information can be found on page 2-19 of your legislative budget book.
• The budget information can be found on page 2-27 of your legislative budget book.
• The budget information can be found on page 2-27 of your legislative budget book.
• The division did not request any budget enhancements, but there are three pieces of budget law exemption

Summary: The committee first approved a $3,700 dedicated-fund enhancement for the Endowment Fund Investment Board to replace a high-end laptop. It then took up several Department of Lands items. A $125,000 supplemental for Forest and Range Fire Protection to help stand up firefighters was rejected after concerns were raised that prior firefighter bonus money had gone largely to office staff rather than firefighters. The committee did approve a supplemental shifting 1.25 FTP and $160,000 from the Abandoned Mines Lands Fund to the Navigable Waterways Fund to align spending with statutory uses, and later approved a broader FY 2027 Department of Lands package including radio equipment, vehicle storage, a UTV, legal counsel fund shifts, Idaho Geological Survey support, replacement items, and OITS hardware. A proposed substitute that would have omitted the $140,500 general-fund restoration for eastern Idaho fire preparedness failed, but the original motion including that amount passed. The committee also adopted language for the Idaho Geological Survey and later approved Parks and Recreation FY 2027 enhancements for staffing, trail work, a mower, grant pass-throughs, staff housing, interpretive displays, Farragut entrance work, RV campsite development, and replacement items, after questions about federal replacement-item funding were answered by the director. A FY 2026 Parks and Recreation supplemental allowing program transfers above the 10% cap also passed. The committee then moved to the Department of Health and Welfare’s Division of Public Health Services. It approved FY 2027 funding for the Idaho Home Visiting Program, immunization assessment fund restoration, disaster planning and training, fee-for-service lab testing, ARPA multi-year grants, HIV prevention, hepatitis prevention, and a $19,000 suicide prevention restoration; a substitute motion that would have reduced the home-visiting restoration to $500,000 failed, and the original motion passed. The committee adopted reporting language for suicide prevention, HIV prevention, hepatitis prevention, and immunization assessment funds. It then considered the Division of Early Learning and Development, approving funding for Idaho Child Care Program capacity, replacement items, population forecast adjustments, and the transfer of the Idaho Home Visiting Program from Public Health; a separate motion to require an open competitive acquisition process for Idaho STARS was set aside and the committee instead held the language in committee for further work. The committee also adopted language for Idaho Home Visiting reporting, Idaho Child Care Program reappropriation, Idaho Child Care Capacity Grant restrictions, and a transfer-limitation exemption for the division. Finally, the committee began the Division of Family and Community Partnerships and heard a request for $180,000 in federal funds for kinship navigation services to help relatives and close family friends care for children and prevent foster care entry. The transcript cuts off before the vote on that item, so no final action on it is shown here.

Transcript Highlights:

• So moving on to districts and charters in the budget year, the Governor's budget includes an increase
• I believe in the 2021-22 budget and the 2023-24 budget, if I recall.
• Around 1.4 is the ADA decline assumed in the budget proposals, the Jan. 10 budget proposals.
• Around 1.4 is the ADA decline assumed in the budget proposals, the Jan 10 budget proposals.
• And that's prudent budgeting because we have a lot of one-time funding available in this year's budget

Summary: The committee heard opening public comment and then took up several K-12 budget items in the Governor’s January proposal. On LCFF and necessary small schools, the Department of Finance described a 2.41% COLA, a roughly $2.2 billion increase for districts and charters, and a $30.7 million ongoing augmentation to raise necessary small schools funding by 20%. The LAO supported funding the COLA and said the small schools proposal had merit, but questioned the 20% figure and warned about a sharp funding cliff around the enrollment thresholds. Members and witnesses repeatedly raised declining enrollment, attendance, and the need to align funding with outcomes and local cost pressures. The chair and several members also asked whether consolidation, shared administration, or alternative formulas could better address small district costs, and the issue was left open for further discussion. The panel then discussed special education equalization. Finance proposed $509 million ongoing Proposition 98 funding to raise the statewide special education base rate to $999 per ADA, which would fully equalize SELPA base rates; the LAO said the same target could likely be reached with less money under current assumptions. CDE strongly supported equalization as an equity issue and said about 15% of students are identified with disabilities, with identification rising by roughly 20,000 to 25,000 students per year. Members raised concerns about staffing shortages, high caseloads, and the need to use any additional funds for inclusive practices, alternative diploma pathways, and the extraordinary cost pool. The committee also discussed whether the budget language should reflect the $509 million amount or the $999 rate, and the item was held open. For the Learning Recovery Emergency Block Grant, Finance proposed restoring $757.3 million one-time to complete the program, while the LAO recommended approval because learning loss remains unresolved and districts have generally used the funds for tutoring, supplemental instruction, and other academic supports. CDE explained that LEAs must revisit their needs assessments and that many districts are using the funds alongside other support systems, but members pressed for clearer accountability and better data on how much money actually goes to tutoring or other direct services. The committee then reviewed the Student Support and Professional Development Discretionary Block Grant, with Finance proposing $2.8 billion one-time and the LAO saying discretionary funding can help districts address local priorities but should be paired with fiscal oversight and possibly more targeted priorities. Members split between supporting flexibility for local needs and worrying that the grant could be used to cover ongoing structural deficits without clear evidence of student-outcome gains; the issue was also held open. Finally, the committee heard a high-level overview of school facilities funding under Proposition 2, with Finance proposing to continue $1.5 billion in bond spending in 2026-27. OPSC said that at the current pace all Prop 2 K-12 funds would likely be exhausted around 2029-30, and that demand is shifting toward modernization as enrollment declines in many areas. Members asked about school closures, reuse of unused sites, and the new small school district facilities program, which OPSC said is moving toward proposed regulations and would begin accepting modernization applications in November 2026 and new construction applications in January 2027. The committee also briefly noted community college facilities funding and asked for more information later in the process.

Transcript Highlights:

• This budget How the proposed budget aligns with the administration's vision.
• budget proposal as filed.
• budget proposal is filed.
• budget lines.
• The $54 million in this budget request is distributed across seven budget lines.

Committee: Joint Joint Committee on Ways and Means

Transcript Highlights:

• So today, I am proud to support this budget.
• And schools have to absorb that budget.
• This House Ways and Means budget increases local aid over last year's final budget and over the governor's
• Our budget before us allows us to be nimble.
• This budget provides $6.68 million This budget provides $6.68 million for the Commonwealth Zoological

Summary: The House first adopted several ceremonial resolutions congratulating three Eagle Scouts, then concurred in Senate amendments to House bills affecting the town of Milford’s alcohol licensing law and the town of Middleton’s charter. It also passed to enact a Senate bill on maintenance of private roads in Gloucester and engrossed a House bill allowing Plymouth to create a special revenue account for land acquisition. The chamber later observed moments of silence for former Lynn City Councilor Richard “Rick” Ford, Portuguese American community leader Louis Pedroso, and Quincy veteran Mildred “Millie” Cox, and welcomed several guest groups and dignitaries, including students from Fall River, D.A.R. Good Citizen award recipients, and a British minister visiting the State House. Most of the floor session centered on FY27 budget amendments, especially housing and shelter policy. Members debated and rejected multiple Republican amendments that would have tightened eligibility for the HomeBASE and emergency shelter programs by requiring citizenship or limiting access to U.S. citizens with Massachusetts residency, with supporters arguing the changes would reduce costs and opponents saying the programs already have strict eligibility rules and that the proposals would exclude lawful residents and vulnerable families. The House also rejected an amendment to block Housing and Livable Communities grants from being conditioned on MBTA Communities Act compliance, with supporters calling it a reprieve for noncompliant towns and opponents saying the law is helping address the housing shortage. A consolidated housing/environment amendment was then adopted 154-0, funding major housing, shelter, clean water, climate, and food assistance accounts. The chamber also defeated amendments to create a data center commission and to eliminate the vocational-technical school admissions lottery, though the latter was withdrawn after debate. Another rejected amendment would have suspended public policy and public benefit charges on electric and gas bills; opponents said that would eliminate low-income and senior bill relief. The House then turned to education-related amendments, rejecting proposals to change special education reimbursement formulas and to raise the reimbursement rate from 75% to 80%, with opponents arguing the ideas needed committee review and cost analysis. Finally, the House began debating an amendment to fully fund regional school transportation by removing “subject to appropriation,” but the transcript ends before any final vote on that item.

Transcript Highlights:

• and really guide our budget.
• and really guide our budget.
• on the environmental budget.
• On the environmental budget, I'll use 'environmental budget' as a shorthand for departments within the
• And the Governor's budget proposal before you, while balanced in the coming budget year based on the