Transcript Highlights:

• So I don't see any increase in the cost of housing.
• That also increases costs.
• But if something were to increase in the middle of the year and they need to increase the, do it a special
• You know, our security labor costs have increased. Our insurance costs have increased.
• And don't increase it all the way up to 20%.

Summary: The committee heard presentations on several bills. SB 1091, by Senator Kavayetal, would create the Community Anti-Displacement and Preservation (CAP) program within HCD to provide financing and technical support for nonprofit and local efforts to acquire unsubsidized rental housing and preserve it as affordable housing or homeownership opportunities. Supporters, including Enterprise Community Partners, the Unity Council, and several housing and tenant groups, said preservation is a fast, cost-effective way to prevent displacement and homelessness. Members discussed funding, with the author and chair noting the program is intended to be funded through housing bond legislation and would be implemented upon appropriation. The bill was moved on a due-pass motion to Judiciary and passed out of committee. SB 904, by Senator Seyarto, would codify and expand the state’s coordinated wildfire recovery response by requiring HCD and other agencies to identify permitting and code barriers after future state-of-emergency wildfires and report on ways to speed rebuilding. The author cited the faster permitting response after the Los Angeles fires compared with the Camp Fire. Some members supported the goal but raised concerns about repeated reports and the burden on smaller jurisdictions; the author said the bill is meant to avoid reinventing the wheel and to streamline recovery. The committee noted the bill is fiscal and would go to Appropriations, and it was reported out with sufficient votes. SB 1007, by Senator Menjivar, would increase transparency and limit assessment growth in homeowners associations by requiring clearer disclosure of HOA finances and violation evidence, and by replacing the current 20% annual assessment increase ceiling with a cap tied to inflation, with possible amendments still under discussion. Supporters, including consumer and homeowner advocates, said the bill would help protect homeowners from steep fee hikes and opaque budgeting. Opponents from HOA management and industry groups argued the bill could undermine reserve funding, delay maintenance, and create more special assessments, while also adding duplicative disclosure requirements. Members debated whether the bill would protect homeowners without harming HOA finances; the author said he would continue negotiations and that the bill would look different in the next committee.

Transcript Highlights:

• So, why this huge increase in premiums?
• More drastic increases in more recent years.
• Projecting increased rate increases in the future, and I know that you're—I hope that you're all going
• We can't get away from these increased PCF fees.
• When you delay settlement of cases, you increase the attorney's costs for the defense lawyers, you increase

Committee: House Courts, Corrections & Justice Committee

Transcript Highlights:

• </c> and this rate change would increase and this rate change would increase revenue<00:04:49.320><c>
• the</c> governor's budget. um increasing um the governor's budget. um increasing um the or<00:05:00.160
• </c> increase revenue by 92.6 increase revenue by 92.6 million.<00:10:59.040><c> Um</c><00:10:59.360>
• One was an increase to the annual appropriation, and one was an increase to the income tax credit.
• It increases the Senate File 1089.

Committee: Senate Taxes

Transcript Highlights:

• The primary driver of these increases is increases in utility spending, particularly on their distribution
• And are we increasing how much we have to generate? Are we increasing the transmission line?
• And are we increasing how much we have to generate? Are we increasing the transmission line?
• Lincoln Avenue Water Company is approaching with a $15 rate increase in addition to a 10% increase to
• why their bills are increasing.

Committee: House Utilities and Energy

Transcript Highlights:

• So it's not an increase in any spending.
• Just in terms of the increases, it's not only because of increased participation rate, which has been
• Overall, the increase is not just because participation rates are increasing; it's for a variety of factors
• What's been the average valuation increase?
• Then I have a future consideration of allowing that fund to increase 3.5 percent annually to match increases

Committee: Joint Budget Section

Summary: The Budget Section met to approve prior minutes and receive a series of budget, revenue, and program updates from OMB, the Tax Department, DOT, DMR, and DPI. OMB reported that general fund revenues through May were about $76 million below the legislative forecast, driven mainly by individual income tax and sales tax shortfalls, though the biennium is still projected to end with a positive balance. OMB also reviewed oil price and production assumptions, the budget stabilization fund transfer above its cap, Legacy Fund performance, federal grant applications, fiscal irregularities, tobacco settlement proceeds, budget guidelines for agencies, vacancy savings, and the DAPL settlement, noting that most of the settlement funds had been deposited but a small amount of accrued interest would require a future deficiency request. The committee then considered Emergency Commission requests. It approved requests for Public Service Commission abandoned mine lands federal authority, an Attorney General FTE and related funding for criminal investigator work tied to the Office of Guardianship and Conservatorship, and a DPI transfer for bridge software costs. After discussion, the committee also approved DPI’s request for a $500,000 transfer for the food vendor program, despite questions about the program’s savings and cash-flow structure. Later, the Tax Commissioner presented the primary residence credit program, reporting that current biennium costs are expected to exceed the appropriation by about $22 million and explaining how the credit interacts with homestead and disabled veteran credits and the 3% property tax levy cap. The Legacy and Budget Stabilization Fund Advisory Board reported strong returns for both funds, and DOT sought and received approval for two flexible fund highway projects on ND 49 and ND 31. DOT also updated members on Highway 85 construction and said remaining flex fund dollars were essentially fully allocated. DMR reported on the abandoned well plugging and site reclamation fund, noting North Dakota’s relatively small orphan well inventory, current and projected fund balances, rising remediation costs, and a possible need to adjust the fund cap in future sessions. Finally, DPI outlined the new integrated formula gap funding program, explaining that it compensates school districts that cannot reach the assumed 60-mill local contribution because of the 3% levy cap; the first year’s gap funding totaled about $1.8 million, with future costs expected to grow.

Transcript Highlights:

• access to civic engagement, including the development of tools and frameworks to increase access to
• We are seeing an increase in students going to community colleges.
• We are seeing an increase in students going to community colleges.
• We are seeing an increase in students going to community colleges.
• But there's been an increasing level of frustration in what seems to be a lack of progress.

Summary: The Emergency Board approved a series of consent federal grant applications from the Natural Resources and Public Safety subcommittees, along with several budget and position requests. The board approved grant applications for parks, transportation, judicial, emergency management, higher education, school nutrition, and other programs, including retroactive approvals where deadlines had passed. One member objected to the Natural Resources consent grants over concerns about future funding needs, but the motion still passed. The board also approved a one-time increase for Judicial Department court security, including digital privacy protections, circuit court security, and a statewide facilities assessment. A major discussion centered on Southern Oregon University’s financial stability. The Higher Education Coordinating Commission reported on SOU’s structural deficits, declining enrollment, and projected cash shortfall. The subcommittee recommended, and the board approved, allocating $7.5 million from the special appropriation for short-term stability, with a required update at the September 2026 Emergency Board meeting and a future request for the remaining funds. Members debated the broader crisis in higher education, with several saying SOU’s situation reflects systemwide enrollment and funding pressures and that long-term restructuring will be needed. The board also approved an AmeriCorps volunteer generation grant, an apprenticeship expansion grant, and a Department of Education nutrition equipment grant. In public safety, it approved funding for Oregon Military Department readiness facilities, a statewide evacuation planning tool, and a juvenile justice information system modernization report, while requiring a follow-up viability report. The Department of Justice received approval for additional antitrust positions and expenditure limitation, though several members raised concerns about the funding structure and incentives tied to settlement revenues; the motion passed despite objections. In natural resources, the board approved funding for the Water Resources Department’s well abandonment, repair and replacement grants, an assistant water master position in Washington County, groundwater data collection in the Lower Umatilla Basin, a wetlands remote sensing pilot, and parks-related grant applications for operations, maintenance, and capital improvements. Members generally supported the requests but raised concerns about geographic equity, long-term sustainability, and whether some county responsibilities were being shifted to the state. The meeting also included discussion of a Department of Emergency Management evacuation tool as an urgent wildfire preparedness measure, with members emphasizing its potential to save lives.

Transcript Highlights:

• </c> reimbursements only increase 1 to 2%. reimbursements only increase 1 to 2%.
• </c> sharply increased in recent years. sharply increased in recent years.
• increase since 2022.
• </c> It is clear that the increasing It is clear that the increasing uncompensated<00:17:27.640><c> care
• :55.880><c> along</c><00:57:56.120><c> with</c> facing increases in costs along with facing increases

Committee: House Taxes

Transcript Highlights:

• Because this is going to increase the cost of your premiums.
• The opposition mentioned 15% to 25% premium increases on average.
• Is that because we saw an average of—that's what was the increase of building code increases?
• There's the section on the increased penalties for claim violations.
• So that piece doesn’t mandate an increase in the coverage.

Summary: The committee first heard SB 1315, the “Drive My Car Act,” from Senator Cabaldon. The author explained that the bill was intended to address the overlap between autonomous features and human driving, with a focus on preventing software updates from disabling a purchaser’s ability to drive a vehicle they bought for that purpose. He said the bill would be redirected to the Transportation Committee and amended to remove insurance provisions. Members broadly supported the concept as a forward-looking issue, and the committee voted due pass to Transportation on a roll call vote, with the bill held on call until all members were recorded. The committee then took up SB 876, the Disaster Recovery Reform Act, presented by the Insurance Commissioner and the committee chair. The bill would make a broad set of changes to disaster claims handling and coverage after declared wildfires, including stronger replacement-cost and contents coverage, higher additional living expense limits, building code upgrade coverage, faster claim payment timelines, adjuster status updates, insurer emergency response plans, and stronger penalties and restitution for unfair claims practices. Supporters, including United Policyholders, California Environmental Voters, the Los Angeles Mayor’s office, AARP California, and the Consumer Federation of California, said the measure would help wildfire survivors avoid underinsurance, delays, and repeated trauma in the claims process. Opposition came from insurance industry and related groups, including APCIA, the Personal Insurance Federation of California, the Pacific Association of Domestic Insurance Companies, the Civil Justice Association of California, and the California Building Industry Association. They argued the bill remained too broad even after amendments, would raise premiums, increase claim severity, reduce flexibility, and potentially worsen availability in an already fragile market. Committee members questioned several provisions, especially the cost and feasibility of mandatory coverage expansions and faster timelines. The commissioner and author said the bill was about disaster recovery rather than rates, that many provisions were optional or limited to declared disasters, and that any cost impacts could be reflected in future rate filings. The committee ultimately passed SB 876 as amended to Judiciary on a due pass vote, with one member absent and the bill held open briefly for additional votes.

Transcript Highlights:

• On 1601, so there was the fuel tax increases.
• And then the second increase is set to go into effect July 1, 2027.
• On 1601, so there was the fuel tax increases.
• And then the second increase is set to go into the last year.
• And then the second increase is set to go into effect July 1 of 2027.

Committee: Senate Transportation

Transcript Highlights:

• director-level increase pursuant to 200 KAR 17:050, Section 7, Part 6.
• </c> city of Harland has a uh loan increase city of Harland has a uh loan increase request<00:13:27.839
• increase increase &gt;&gt; to<00:18:28.880><c> maintain</c><00:18:29.919><c> our</c> &gt;&gt; to maintain
• </c><00:20:45.760><c> necessary</c><00:20:46.320><c> to</c> any rate increase necessary to any rate increase
• </c><00:25:37.200><c> or</c> opportunity to see an increase or opportunity to see an increase or decrease

Summary: The committee met without a quorum for much of the meeting, so several agenda items were initially heard only for information. Early updates included six informational reports, such as an Auditor of Public Accounts compliance examination with no findings, university equipment and allocation reports, school district bond issuances, Western Kentucky University’s planned public-private partnership housing redevelopment, and quarterly Kentucky Communications Network Authority reports. Members then questioned WKU officials about the P3 housing project, including the number of RFQ responses, property tax responsibility, ownership of the student life foundation, and the status of repairs to residence halls. WKU said the foundation has owned the property since 2000, one hall would be razed or demolished at the end of the academic year, and repairs to the other two were expected to be completed by fall 2027. The committee also heard a Department of Fish and Wildlife Resources acquisition project for Mount River Farms in Wayne County and a Department of Corrections roof replacement project at Luther Luckett Correctional Complex, but no votes were taken until a quorum was later established. The Kentucky Infrastructure Authority then presented six loans and four grant reallocations, including loan increases for Adair County Water District and the City of Harlan, new loans for Litchfield, Louisa, Southeastern Water Association, and Flatwoods, and grant reallocations under the Cleaner Water Program. Members asked about Harlan’s 30-year term and special condition requiring a revenue increase; KIA explained the longer term is reserved for disadvantaged communities and that the condition was meant to reinforce standard debt coverage requirements, while depreciation is reviewed but not included in cash-flow calculations. After a recess, Senator Thomas arrived and a quorum was reached. The committee approved the prior minutes and then took a consolidated vote on the action items, which passed. The final items included a Kentucky Economic Development Authority revenue bond refunding for CommonSpirit Health, several Kentucky Housing Corporation conduit and single-family bond issuances, a Western Kentucky University bond issuance, and SFCC debt issues. Members discussed the housing transactions, noting they are developer-financed and not subject to a traditional bidding process, and expressed concern about whether the process could produce more units for the same amount of money. The meeting adjourned after all information items were approved and the next meeting date was announced.

Transcript Highlights:

• So my concern is not the increase.
• My concern is a 500% increase with 50% to 60% of the people being low income and then just increasing
• Not the increase that this would be. No.
• Not the increase that this would be.
• Cost increases as high as 20 percent. Cost increases as high as 20 percent, just in 2020 alone.

Bills: HB42 , HB 125 , HB 1233 , HB2853 , HB3148 , HB3326 , HB3701 , HB4066 , HB4361 , HB4762 , HB4909 , HB4912 , HB42 , HB125

Committee: House Higher Education

Keywords: higher education, funding, financial allocation, state budget, Texas A&M University, University of Houston, education funding, medical education, osteopathic medicine, healthcare workforce, Tarleton State University, industry-recognized credentials, workforce development, career opportunities, feasibility study, student fees, university funding, student union, education, UT El Paso

Summary: The Committee on Higher Education met to hear several bills and first corrected the minutes from its April 1, 2025 meeting to reflect that a committee substitute for HB 271 had been adopted before the bill was reported favorably. The committee then heard HB 3326, which would help Texas higher education employees, especially adjunct faculty, qualify for federal Public Service Loan Forgiveness by counting classroom hours toward full-time status, requiring institutions to verify employment within 60 days, and requiring annual notice to eligible employees. No witnesses testified against the bill, and it was left pending. Members then heard HB 2853, authorizing UTEP to phase in a student union fee increase to fund demolition and reconstruction of its aging student union. Representative Perez and UTEP student and university witnesses said the current facility is outdated and insufficient for a campus of more than 25,000 students, while some members raised concerns about the size of the fee increase and its impact on low-income students. UTEP representatives said most students receive aid, the fee would be phased in over time, and the project was student-approved; the bill was left pending. The committee also heard HB 4066, a one-line bill to abolish the Texas Research Incentive Program after the state cleared its backlog of matching obligations, with the author saying the program was no longer needed in light of newer research funding approaches. The bill was left pending. The committee spent substantial time on HB 125, which would create the Tarleton State University College of Osteopathic Medicine. Supporters, including Tarleton leadership, the founding dean, a rural hospital CEO, and a feasibility consultant, argued the school would address severe rural physician shortages by recruiting Texas and rural students, training them in rural settings, and developing new residency slots rather than competing for existing ones. Members asked about affordability, residency placement, and whether the school would draw students from rural Texas; Tarleton said it would seek to keep tuition and debt low, had already raised private donations, and would request $25 million in state support over the biennium. The bill was left pending. Finally, the committee heard HB 42, which would increase the annual Higher Education Fund appropriation and adjust its allocation methodology. The chair and university witnesses described rising deferred maintenance, inflation, cybersecurity needs, and enrollment growth at HEAF-eligible institutions, with witnesses from Texas Tech, Sam Houston State, and UNT saying the additional funding would help address aging facilities and technology needs. After testimony, the committee left HB 42 pending and recessed.

Transcript Highlights:

• Some districts will see an increase, and some will see a small increase.
• Some of them are going to see a small increase.
• We're creating a weighted student unit for transportation, so as you increase that, those costs do increase
• They're getting a 171% increase. So their... ...$1,000, they're getting a 171% increase.
• The House increased it to 70,000.

Committee: Senate Appropriations - Education and Environment Division

Summary: The committee met to hear and discuss three education bills and related budget items. House Bill 1214 would revise K-12 transportation funding by replacing the current rider-based formula with a new formula tied more closely to district size, square mileage, building counts, and the weighted student payment. Sponsors and DPI said the change would better reflect actual transportation costs, hold districts harmless overall, and likely increase funding by about $4 million beyond current spending; they also said parent-provided transportation and open-enrollment mileage rules would remain largely unchanged. No opposition was heard, and the committee closed discussion without taking final action in the transcript. The committee then reviewed House Bill 1013, the education appropriations bill, and walked through proposed adjustments to program and pass-through grants. The chair proposed keeping or reducing some items, eliminating others, and moving one-time items to the stabilization fund; examples included leaving free meals at $4.5 million for now, keeping the paraprofessional-to-teacher program, reducing some grant lines, and removing several new or one-time grants. DPI also explained that the student information system would remain a flow-through grant for this biennium but would move in-house after July 1, 2026. The committee also discussed adding an FTE for the School for the Blind and making a small equipment swap at the Center for Distance Education. House Bill 1369 was discussed as the main school aid bill, including a proposed 2 percent and 2 percent per-pupil payment increase, higher construction bidding thresholds, elimination of the 12 percent cap, and a transfer of $75 million from Foundation Aid to the School Construction Revolving Loan Fund, with the chair suggesting $100 million instead. DPI explained that the bill also included a policy change returning placement decisions for students with disabilities in congregate care to the Superintendent of Public Instruction, with support from the governor’s office. The committee heard testimony from school officials seeking gap funding for Title I losses caused by a switch from free-and-reduced-lunch to census-based allocations, saying districts with many open-enrolled students could lose substantial funding and staff positions. Later, the governor’s office presented a proposed $1.5 million one-time appropriation to help schools buy secure storage for student cell phones if a statewide device policy is adopted; members raised concerns about cost, local control, and whether the money would be enough. The committee also heard student testimony and then recessed without voting on the amendment in the transcript.

Transcript Highlights:

• This is a second increase for them.
• is going to be given, and this is an increase either after the fact or this is an increase to cover
• The original grant amount of $11 million would be increased to $12,591,386, an increase of 14.46% of
• That's pretty sizable increase. That's a pretty sizable increase. I'm Mike Thompson.
• The additional increase would bring the award total to $3,767,778, which is an increase of 34.56% of

Summary: The Water Sector Commission met with a quorum and opened with a reminder that no funding had yet been appropriated for future project awards, so any discussion of upcoming grants was speculative until the legislature acts. The committee then approved the December 10 minutes and moved through a series of deadline extensions for Phase Two state-funded projects, including Delcambre, Faraday, Meyer Branch, and Waterworks District No. 1 of Pointe Coupee Parish. Members also approved a scope change for St. Tammany Parish Project 845 to relocate an unmarked fiber optic line discovered during construction. The committee spent substantial time on Tallulah’s water rehabilitation project, where Mayor Yubon Lewis explained that the city is trying to isolate and fund the purchase of four permanent media filters, plus related electrical work, from the original approved project scope. Members questioned whether the request was a true scope change or a way to use existing funds while the city continues to rely on temporary filtration and state-led triage. After discussion, the committee approved the request and asked to be kept informed as the state continues seeking additional support for the system. The committee also approved additional funding requests for Kaplan, Ponchatoula, St. Martin Parish, and West Allen Water Works. Ponchatoula’s request included multiple change orders tied to sewer and force main work, including emergency levee repair, equipment changes, and rerouting around unmarked fiber. St. Martin Parish’s increase was tied to land acquisition and added costs for a new well site in a multi-phase consolidation project. West Allen’s increase stemmed from a failed well drilling effort and was supported by cost reductions from the contractor and engineers, which members treated as in-kind match. In contrast, Tensaw Water Association’s very large request to consolidate Newellton drew significant concern over cost growth, scope, and timing; after extensive questioning, the committee deferred that item to the next meeting for further review. The meeting ended with an update that about 42.11% of ARPA funds remain, 16 projects are now considered high risk, and staff will continue ground-truthing project status and pushing ARPA dollars out first before adjournment.

Transcript Highlights:

• The state and local increases there, you can see respectively, the state increase of $761 million and
• the local increase of $317 million.
• Teacher salary allocation, it's a total $201 million increase.
• The state and local increases there, you can see respectively, the state increase of $761 million, and
• the local increase of $317 million.

Summary: The Appropriations Committee first took up SB 7010, which would authorize Roth contributions in state and local deferred compensation plans. Senator Mayfield explained that current law only allows pre-tax contributions, and the bill would let the Department of Financial Services and local governments offer post-tax Roth options. The bill had one support appearance card, no debate, and was reported favorably by roll call vote. The committee then received a lengthy presentation from the Governor’s Office of Policy and Budget on the governor’s recommended “Floridians First” budget, totaling $117.4 billion and $53.2 billion in general revenue. The presentation highlighted reserves, debt paydown, tax relief, and proposed reductions and efficiencies, along with major spending areas in education, health care, public safety, corrections, transportation, and economic development. Key proposals included higher K-12 funding, teacher salary increases, funding for Everglades and water quality projects, emergency preparedness, corrections staffing and facility funding, cybersecurity, law enforcement recruitment bonuses, and affordable housing and infrastructure investments. Members asked extensive questions about property tax reserves, litigation funding, emergency response fund balances and spending, the Alligator Alcatraz detention facility and federal reimbursement, the Second Amendment sales tax holiday, animal abuse hotline funding, Hope Florida, corrections staffing, and teacher pay. A major portion of the discussion focused on the Department of Health’s planned changes to the ADAP HIV medication program, with senators and a public witness expressing concern about access to life-saving medications and possible misuse or redirection of funds. The committee did not take further action on the budget presentation, and the meeting ended after additional comments supporting the budget and the corrections funding, with SB 7010 already approved.

Transcript Highlights:

• , resulting in a $500,000 decrease to the state multimodal transportation account and a $500,000 increase
• There is no net increase to appropriated levels.
• County Ferry, resulting in a $986,000 increase to the state motor vehicle account.
• As a reminder, there's a $1.1 billion general increase.
• There is an increase to the SR 520 bond authorization of $500 million, and it repeals some older bond

Bills: SB6005 , SB6225

Committee: Senate Transportation

Keywords: transportation budget, transportation appropriations, capital budget, supplemental budget, Washington State Department of Transportation, WSDOT, Washington State Patrol, Department of Licensing, ferries, Puget Sound ferries, tolling, express toll lanes, highway safety, traffic safety, impaired driving, ignition interlock, speed cameras, transit funding, public transit, multimodal transportation

Transcript Highlights:

• Second, the bill increases license fees and certain penalties.
• So that's more than a 470% increase. $175 to $1,000, so that's more than a 470% increase, and eliminates
• This bill will increase our tobacco license fees by 700%.
• is generating increased tax revenue for the state.
• This bill will increase those declines, and coupled with the increased license fees, I don't know how

Bills: HB2439 , HB2483 , HB2400

Committee: House Consumer Protection & Business

Keywords: public health, tobacco regulation, smoking cessation, vapor products, health policy, youth prevention, data broker, registry, consumer protection, privacy, data regulation, social media, content creation, online platforms, digital marketing, user-generated content

Transcript Highlights:

• The increases to the their bills.
• </c><00:16:33.519><c> Um,</c> might increase uh groceries. Um, might increase uh groceries.
• </c> challenge, we are grateful for increased challenge, we are grateful for increased investments<00
• </c> for key programs that would increase for key programs that would increase production<00:29:36.720
• </c> assistance as that's proven to increase assistance as that's proven to increase access<00:30:33.520

Committee: House Housing Finance and Policy

Transcript Highlights:

• rents were affected and saw big increases.
• So that can increase the complexity of combining funds.
• Prevention, homelessness prevention, and, lastly, increased housing supply.
• Our results include a 49% increase in emergency shelter beds over a four-year period, a 63% increase
• Our results include a 49% increase in emergency shelter beds over a four-year period, a 63% increase

Transcript Highlights:

• The increase is primarily related to expected increases in community-based restoration and diversion
• Last year, we increased this by 25.
• It does increase in the out years.
• “Increase in the out years.
• And that increases every day.

Summary: The subcommittee heard budget and policy updates from the Department of State Hospitals, the Commission for Behavioral Health, and the Department of Health Care Services. DSH described its proposed 2026-27 budget of $3.2 billion, including savings tied to IST solutions, higher patient-driven operating costs, and a small increase in caseload projections. Officials said the department has met court-ordered IST treatment benchmarks, with wait times reduced from a pandemic peak of 1,953 pending placements to about 250, and average treatment initiation now around five days. Members asked about the effects of Proposition 36 and SB 1323, rising outside hospitalization costs, Medicare enrollment, and whether IST solution funding was being overbudgeted; DSH said referrals are slightly down overall, aging and medically complex patients are driving outside care costs, and the IST solution savings reflect slower-than-expected program activation rather than a service gap. The department also outlined proposed funding for CONREP cost increases, a new county-by-county LPS bed allocation model, electrical infrastructure upgrades at Napa and Patton, SB 380 transitional housing feasibility work, and additional dental staffing and space at Metropolitan and Patton. The Commission for Behavioral Health reviewed its role in the Behavioral Health Services Act transition and its new Innovation Partnership Fund. Staff said the commission is shifting from county-level innovation oversight to a statewide grant strategy, with the first $20 million RFA drawing strong interest and awards expected in mid-June. Members asked how “innovation” would be defined, whether grants could be renewed after the initial three-year contracts, and how the state would ensure the money supports real service delivery rather than general outreach or training. The commission also sought a liquidation deadline extension for the Alcove youth drop-in center grants so remaining funds can be spent before they revert, allowing sites to finish implementation and support the final evaluation. DHCS provided an overview of CalAIM and BH Connect implementation, including updated specialty mental health access criteria, new ASAM-based substance use treatment standards, contingency management, traditional health care practices for tribal members, workforce investments, evidence-based practice expansion, IMD participation, and transitional rent services. The department also addressed BHSA implementation, saying it does not track specific local program cuts but will monitor county three-year plans, performance measures, and outcomes as counties shift to the new funding structure. On H.R. 1, DHCS said it is preparing outreach, eligibility simplification, and exemption strategies to reduce Medi-Cal coverage losses, including clinic navigators, a statewide outreach campaign, and possible employment supports through a future waiver. The department also reported that BH-CHIP bond funds have supported 437 infrastructure projects, creating 546 facilities and more than 9,500 residential beds, with additional outpatient capacity and tribal investments. Finally, DHCS outlined a proposed 988 trailer bill to create a statewide designation process for 988 centers and mobile crisis teams, with implementation no earlier than October 1, 2027.

Transcript Highlights:

• </c> increase mileage rates. increase mileage rates.
• able to increase tolls.
• </c><00:37:01.839><c> the</c> amendment because it would increase the amendment because it would increase
• All it does is increase the bonding capacity.
• <c> the</c><00:48:10.960><c> bonding</c> just need to increase the bonding just need to increase the