Transcript Highlights:

• The budget provides funding to support core operational costs and student retention at the California
• One relates to an Information Security Officer, and the second relates to operational costs.
• CSAC has identified a in year-over-year operational costs, and significant cost drivers are related to
• I will first start by addressing the first proposal related to operating costs.
• or staff costs and $1.6 million for operating expenses and equipment.

Transcript Highlights:

• </c><00:04:23.120><c> in</c><00:04:23.360><c> our</c> cost which we now call base cost in our cost which
• He said the base cost includes a certain dollar amount per enrolled child for maintenance and operation—he
• </c> pupil for maintenance and operation. pupil for maintenance and operation.
• </c> catch part of the burden the cost. catch part of the burden the cost.
• </c> cost in 1984. cost in 1984.

Committee: Senate Education Finance

Transcript Highlights:

• and maintenance costs.
• Additionally, the governor's recommending $650,000 in recurring general revenue to adjust operating costs
• It is actually sound, cost-based, scaled for the cost of living, and designed to promote efficient operations
• for core services and the cost of administration.
• This particular question, in terms of their ability to reduce the cost, subsidize the costs directly

Committee: Senate Appropriations Committee on Health and Human Services

Summary: The Appropriations Committee on Health and Human Services heard presentations on the governor’s proposed FY 26-27 budget for the health and human services silo, which totals $48.5 billion within a $117.4 billion state budget. Agency leaders outlined major spending priorities, including AHCA’s behavioral health redesign, APD waiver enrollment and facility needs, DCF’s integrity and self-sufficiency systems, opioid response, community-based care and mental health bed expansion, DOEA’s Alzheimer’s, home care, and community care programs, DOH’s cancer research, public health, EMS blood-transfusion initiative, and lab feasibility study, and the Department of Veterans’ Affairs’ facility, cybersecurity, and medication-management investments. Members generally praised several proposals, especially increased reimbursement for private duty nursing, behavioral health funding, Alzheimer’s support, and the EMS blood program. Senator Sharief raised concerns about the AIDS Drug Assistance Program (ADAP), warning that changes could leave many Floridians without coverage for HIV medications and asking whether manufacturers could provide rebates directly to patients. Surgeon General Ladapo said the issue was driven largely by funding and federal changes, not a legal barrier, and said the department had explored alternatives but could not fill the gap with current resources. Senator Rouson asked about the Office of Minority Health and Health Equity, and DCF said its budget includes about $7 million for the substance abuse and mental health data dashboard required by prior legislation. Public testimony focused heavily on ADAP. Former program leaders and advocates said the proposed changes would reduce enrollment and remove key drugs and insurance-premium support, calling the situation a crisis and criticizing the department for lack of transparency and stakeholder engagement. They urged a pause and collaborative review of the program’s finances. The committee also discussed KidsCare implementation, with AHCA saying federal conditions and litigation have delayed the expansion. The meeting ended after the chair noted the budget would still need to be adjusted for updated Medicaid caseload estimates, and the committee adjourned without taking any formal votes or other action on the budget items.

Transcript Highlights:

• But one of the bigger challenges in addition to cost is cost uncertainty.
• profile can operate on its own.
• Their vision at that time was not to build was to operate was to operate some of their at that time was
• What technology needs to be in place to operate them?
• One is DOME, a demonstration of operational microreactor experiment.

Committee: Joint Advanced Nuclear Energy Committee

Summary: The meeting was a presentation and Q&A at Idaho National Laboratory focused on the state of nuclear energy, advanced reactors, and the lab’s role in testing, regulation, and commercialization. Speakers described INL’s broader mission beyond nuclear, including cybersecurity and critical infrastructure, but emphasized its major nuclear capabilities: the Advanced Test Reactor, TREAT, the Materials and Fuels Complex, and other test beds used to accelerate fuel and materials testing. They also highlighted the lab’s size, workforce, internship pipeline, and partnerships with DOE, DHS, DOD, and private companies. A major topic was the federal push to speed up nuclear deployment through executive orders and regulatory reform. Speakers said DOE and the NRC are reducing unnecessary bureaucracy, streamlining environmental reviews, and working toward a goal of having three new nuclear systems achieve criticality by July 4, 2026. They discussed the difference between microreactors, small modular reactors, and traditional gigawatt-scale plants, arguing that advanced reactors can be factory-built, safer, and better suited for data centers, military bases, remote communities, industrial heat, and other nontraditional uses. They also said the U.S. is rebuilding its nuclear supply chain, including enrichment and fuel fabrication, and that states willing to host parts of the fuel cycle could see major economic benefits. The speakers addressed questions about cost, safety, waste, and international competition. They said advanced reactors rely on passive safety features, TRISO fuel, and natural circulation, and that the industry’s challenge is often cost uncertainty rather than a precise fuel or materials limit. They argued used nuclear fuel should be viewed as a resource rather than waste if recycling becomes policy, and said microreactors should produce relatively small amounts of spent fuel. They also noted that China and Russia continue to build aggressively, with China on pace to surpass the U.S. in total nuclear generation, while U.S. projects such as Palisades, Crane Clean Energy Center, Duane Arnold, Oklo, Aalo, MARVEL, and Project Pele are moving forward under DOE and private-sector partnerships.

Transcript Highlights:

• costs due to cost-of-living adjustments.
• These funds are mission critical to state government operations and directly address the cost of delivering
• These funds are mission critical to state government operations and directly address the cost of delivering
• Operating investment.
• This outcome reflects significant internal cost controls and operational discipline across the agency

Committee: Joint Joint Committee on Ways and Means

Summary: The hearing in Barnstable opened with remarks from the House and Senate co-chairs about the importance of holding Ways and Means budget hearings on the Cape, especially given the region’s seasonal economy and infrastructure needs. The committee then heard testimony from Labor and Workforce Development Secretary Lauren Jones on the governor’s FY27 budget proposal. She highlighted funding for workforce programs including the Workforce Competitiveness Trust Fund, Career Technical Initiative, registered apprenticeship, YouthWorks, reentry workforce programs, and services for young adults with disabilities. She also discussed MassHire career centers, the MassHire Innovation Project, and the Department of Unemployment Assistance modernization effort, noting improved call wait times and claims processing, but acknowledging continued challenges and federal funding uncertainty. Members asked about job-seeker barriers such as child care, housing, and transportation; domestic outmigration of young workers; youth work permits; unemployment insurance costs and the COVID assessment on employers; and the state’s unemployment rate and UI trust fund solvency. Jones and Undersecretary Josh Cutler explained the difference between workforce training funds and the unemployment trust fund, described the statewide trigger that extends unemployment benefits from 26 to 30 weeks when regional unemployment averages 5.2 percent, and said the administration is reviewing the trust fund with labor and business stakeholders. They also said the administration is trying to preserve front-line DUA staffing while shifting resources to customer service and adjudication, including a Friday adjudication pilot and seasonal hires. Senators and representatives also pressed the administration on regional equity in workforce funding, especially for Hampshire Franklin MassHire, which was described as serving a large rural area with fewer resources than other regions. Administration officials said they are reviewing MassHire funding formulas and modernizing the system with a policy committee and state workforce board input, but did not offer an immediate fix. The committee also heard that early childhood education apprenticeships are expanding quickly, with state funding leveraged to secure federal grants and support new Grow Awards. The hearing then moved to the Executive Office of Economic Development, where Secretary Eric Paley outlined House 2 proposals for economic development, including support for the Community One Stop for Growth, rural economic development, workforce partnerships, life sciences, advanced manufacturing, AI, small business assistance, tourism, and tax incentives. Undersecretary Leila D’Amilia followed with testimony on consumer affairs and business regulation, describing funding for consumer protection, banking oversight, occupational licensure, and public safety inspections.

Transcript Highlights:

• costs, and most also lacked information to help them determine what it would cost to continue operating
• costs, and most also lacked information to help them determine what it would cost to continue operating
• costs and continued lack of state funding may deter them from continuing to operate the systems.
• Additionally, although we were unable to determine the exact cost of continuing to operate the systems
• , as I've mentioned a couple of times before, ...determine the exact cost of continuing to operate the

Committee: Joint Joint Legislative Audit Committee

Transcript Highlights:

• Our second point is that the Department stated that revenues would not exceed the costs needed to operate
• costs.
• cost, we would set the fee to operating costs and not exceed the 1%.
• So the 1% is truly a cap, and we would be setting a fee that would only cover our operating costs, again
• based on the operating costs of DHCS and not necessarily looking specifically at the impacts on the

Transcript Highlights:

• to sort of inflate the cost.
• to sort of inflate the cost.
• costs, cost overruns, projects project costs, cost overruns, projects last<00:16:33.800><c> longer,</
• </c> Commercial Vehicle Operations. Commercial Vehicle Operations.
• </c> short lines operating in Minnesota. short lines operating in Minnesota.

Committee: Senate Transportation

Transcript Highlights:

• It has low ridership, huge operating subsidies, and ridiculous maintenance costs.
• It has low ridership, huge operating subsidies, and ridiculous maintenance costs.
• </c> is possible and and and and cost is possible and and and and cost effective<01:05:08.079><c> um<
• keep the line going with very little ridership, the maintenance cost, and the planned cost over the
• the maintenance cost um and the<01:25:08.159><c> Planned</c><01:25:08.960><c> cost</c><01:25:09.320>

Committee: House Transportation Finance and Policy

Transcript Highlights:

• So it may result in increased staff costs, increased premiums, pension costs, and claim costs.
• fund, and then the cost of the claim if they're self-insured, and then obviously the claim costs.
• The cost of PTSD is high. It's true.
• This bill does impose some costs on municipalities, but it shares those costs that are being borne by
• a small operation like mine.

Summary: The committee heard testimony on several bills. SB 5882 would extend workers’ compensation PTSD presumptions to local correctional facility workers after 90 days of employment, with staff explaining the bill’s scope, fiscal note, and how claims would affect employers’ experience ratings. The sponsor and labor representatives supported the measure as a response to correctional officer trauma, while cities, retailers, and self-insurers opposed it over cost, system sustainability, and the need for more study. Labor and Industries said the estimated five-year state-fund claim cost ranges from $6.7 million to $15.3 million, and the hearing closed after testimony from both sides. The committee then heard SB 6196, which would impose a 95% excise tax on kratom products starting in 2027, create licensing and labeling requirements, and direct revenue to youth harmful substance prevention. Supporters argued kratom is unregulated and increasingly available to youth, and some urged age-gating and stronger restrictions on synthetic concentrated products. Opponents, including retailers and the American Kratom Association, said the bill is too punitive, would hurt legitimate businesses, and should be revised into a consumer protection framework rather than treated like a controlled substance. No vote was taken. SB 6204, allowing adults to grow up to six cannabis plants at home with a 15-plant household cap, drew strong support from cannabis advocates and some medical users, who said home grow should have been part of legalization and would help consumers understand the plant. Opponents from law enforcement, cities, and public health warned about youth access, enforcement problems, fire and chemical risks, and possible impacts on cannabis tax revenue. The committee also heard SB 6134, requiring notice to striking workers about possible UI overpayments if they later receive retroactive wages, which the sponsor said would prevent surprise repayment obligations; testimony was overwhelmingly supportive. Finally, SB 6195, aimed at reducing cannabis oversupply by tying producer canopy size to reported sales, drew broad support from cannabis businesses and trade groups, who said it would stabilize the market and address JLARC’s findings, with some stakeholders asking for implementation fixes and clearer language.

Transcript Highlights:

• costs on businesses.
• These will be cost drivers, and we anticipate this raising your constituents' costs on pretty much all
• cost items, right, because the cost on the shelf might be a lower cost.
• And cost-wise, I know you're very always very concerned about cost, but we have seen single-use vapes
• . operations entirely.

Committee: House Environmental Safety and Toxic Materials

Transcript Highlights:

• Operators are currently authorized to use pits, certain pits during normal oil and gas operations, but
• Yeah, and, and that those Costs are, uh, not costs, but those are contracts that you guys let because
• For either bad operators or operators going out of business or whatnot, you utilize those bond funds
• Have you had that one operator, and we don't have, I mean, where was this operator?
• You know, these Large operators, whatever operators out there is, is.

Committee: House Appropriations - S/C on Articles VI, VII, & VIII

Summary: The committee met with a quorum present to hear Article VI Natural Resources agency budget recommendations, beginning with the Railroad Commission. LBB staff summarized the commission’s 2026-27 base recommendation at $458.7 million, down from the prior biennium, with an increased FTE cap. The presentation highlighted reduced federal IIJA funding, volatility in oil and gas regulation account 5155, continued support for IT modernization, and rider changes. The commission’s major exceptional items were then presented, including requests for produced water and injection data reporting, an authorized pit registration system, regulatory filing/permitting upgrades, an underground injection well investigation team, site remediation support, and especially $100 million for orphan well plugging. Members asked about biennium-to-biennium comparisons, salary biennialization, the scale of orphan well risks, federal funding delays, bonding, and whether the state should rely more on industry or general revenue for plugging costs. Commission leadership explained that orphan wells can threaten water and public safety, that plugging costs have risen sharply, and that current funding is insufficient to keep up with emergency wells and the backlog; they also said the agency is moving to cloud-based systems with cybersecurity protections and that the proposed performance measure may need adjustment if funding does not increase. The Railroad Commission testimony was followed by LBB and agency testimony for the Texas Animal Health Commission. LBB described a $42 million recommendation for 2026-27, an increase overall, but with a reduced FTE cap due to turnover and salary reallocation. The recommendation maintained funding for cattle fever tick work, chronic wasting disease, lab testing through an MOU with Texas A&M’s veterinary diagnostic lab, and a new $5 million spay-and-neuter pilot program, while deleting a capital budget rider and adjusting riders tied to entry point inspection stations and clinical trials. Agency leadership then outlined the commission’s mission to protect livestock health and the state’s $22 billion animal industry, and described major disease threats including highly pathogenic avian influenza, cattle fever ticks, New World screwworm, and chronic wasting disease. Their exceptional items focused on recruiting and retaining veterinarians, replacing fleet vehicles, creating an ectoparasite identification lab, adding field staff and IT support, improving records and epidemiology reporting, strengthening central administration, supporting secure food supply planning, expanding chronic wasting disease work, and staffing the new spay-and-neuter program. Members asked about field identification of ticks, the use of disinfectants and PPE, fleet management, the scale of cattle fever tick risk, and chronic wasting disease; the agency explained its current inspection and lab-confirmation process, its reliance on field disinfecting and biosecurity, and the need for more staff and better data systems to keep pace with growing workloads and disease threats.

Transcript Highlights:

• Increased cost the average cost per well has surged since you started helping as chairman Darby eight
• and the cost to rework those wells.
• We've got two operators who. that you would know, great, great sophisticated independent operators who
• The cost, as Chairwoman Craddick pointed out, the cost of plugging those wells has gone up just remarkably
• The lower cost energy and price to... provided by a PPA, enables businesses to keep their operating costs

Committee: House Energy Resources

Transcript Highlights:

• This came in the operating budget.
• This came in the operating budget.
• We looked at device costs and compliance costs throughout the state, and we found that typically a one-year
• cost to around $5,000.
• Reflect DOH's actual oversight costs.

Summary: At the April 8, 2026 JLARC meeting, members approved the January 7 minutes and recognized Marilyn Richter for more than 12 years of service to JLARC and the Citizens Commission. Staff then gave a legislative recap and work plan update, noting that JLARC staff presented to five committees during session, six bills or budget provisos implementing prior recommendations were enacted, and seven new study assignments were received. Members approved the updated 2025–2027 biennial work plan, including the new studies and the required 2027 lodging tax review. The committee also heard a presentation on a new post-meeting member survey tied to JLARC performance measures. Members then considered the final report on ignition interlock device compliance and monitoring. Staff reported that many drivers required to install ignition interlock devices do not do so, with installation rates rising with income, and identified problems in the Department of Licensing’s financial assistance program and coordination with the State Patrol. Both agencies said they concurred with JLARC’s recommendations to clarify responsibilities, formalize coordination, and develop a plan to increase installation rates. The committee approved the final report. Next, JLARC reviewed the final report on drug takeback fee setting and expenditures. Staff concluded that the Department of Health’s fee design limits full cost recovery and that the agency should publicly report oversight costs and activities; the legislature should revise the fee structure to better align with best practices. Members discussed whether the program should remain at DOH or be housed elsewhere, and adopted committee comments emphasizing transparency and future sunset review work before approving the final report. Finally, staff presented the scope and objectives for the Clean Buildings Performance Standard study, focusing on state-owned Tier 1 buildings and K-12 facilities in the first compliance cohort, with questions centered on compliance costs, energy savings, funding sources, fines, and possible workforce or budget impacts. The meeting ended with administrative announcements about upcoming meetings and adjournment.

Transcript Highlights:

• Recommendations include $115,000. million for operational cost increases and 259 million for repairs
• We're operating 102.
• As those costs rise, this cost would allow them... to continue to keep those services in place.
• This funding enhances those operations.
• It's got a cost of about $48,000.

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

Transcript Highlights:

• So I think, from a fiscal cost perspective, in fiscal year 2028 there's no impact to operating.
• , holding costs, and the opportunity costs from time lost searching for land and negotiating deals.”
• , holding costs, and the opportunity costs from time loss searching for land and negotiating deals.
• And that could cost the state some revenue. I also see potential litigation costs added on.
• and a four-year cost of $192,000.

Summary: The committee took up executive action on the capital budget, Proposed Substitute Senate Bill 6003, and several policy bills. Staff described amendments to the capital budget that shifted funding among behavioral health, local/community projects, irrigation projects, and juvenile rehabilitation capacity, plus a technical fix to the water pollution control revolving program. The committee adopted Senator Dozier’s budget-neutral amendment and a technical amendment, then advanced the amended capital budget to the Rules Committee. It also moved House Bills 2441, 2124, 2471, 2133, 2610, and 2338 forward with due-pass recommendations, and advanced Engrossed Second Substitute House Bill 2251 on Climate Commitment Act accounts to the Transportation Committee after adopting two amendments and withdrawing three others. A major public hearing focused on Engrossed Second Substitute House Bill 2034, which would terminate and restate LEOFF Plan 1 in 2029, transfer surplus assets, and direct portions to the Climate Commitment Account and the pension funding stabilization account. Staff said the plan is currently about 160% funded and explained the bill’s IRS-review process, statute of limitations, and estimated implementation costs. Testimony was sharply divided: some retirees, firefighters, counties, and cities opposed the bill as an improper use of pension assets and urged benefit enhancements or protection of local medical obligations, while others supported using the surplus for broader public purposes. No vote was taken on the bill during the hearing. The committee also heard House Bill 2179 on PERS coverage for certain port workers, with ports and the Washington Public Ports Association supporting clarification for railroad employees covered by the federal railroad retirement system. House Bill 1069, allowing Department of Corrections employees to bargain over supplemental retirement benefits, drew support from Teamsters and corrections workers, while House Bill 2091, expanding employee-information sharing with bargaining representatives, drew union support and privacy objections from Washington Policy Center. Finally, Second Engrossed Substitute House Bill 1210 on targeted urban area tax preferences drew support from labor, local governments, and project proponents, and opposition from contractor groups and environmental advocates over project labor agreement requirements and nuclear-related concerns; Engrossed Substitute House Bill 1408 on community preservation and development authorities and Engrossed Second Substitute House Bill 1974 on land bank authorities for affordable housing were also heard, with both receiving supportive testimony from community and housing advocates.

Transcript Highlights:

• Despite awareness of the federal incentive dollars being used to backfill essential operating costs and
• costs to backfill essential operating costs and<00:03:32.400><c> the</c><00:03:32.720><c> knowledge<
• </c> cost-saving measures whenever possible. cost-saving measures whenever possible.
• Year 2 funding operational resonance. Year 2 funding sustains<00:15:42.480><c> operations.
• </c> centers at no additional cost for them. centers at no additional cost for them.

Summary: The House Budget Review Subcommittee on General Government heard presentations on several Attorney General and Homeland Security budget items. Amy Burke of the Department of Child Support Services said the program inherited a structural shortfall of more than $13 million after the transition from CHFS, including about $14 million in federal child support incentive funds that had been used to cover core operating costs and county attorney contracts. She explained that federal law requires incentive funds to supplement, not supplant, baseline services, and said the Attorney General’s budget request seeks general fund support to replace that gap and help balance the program going forward. Members asked for clarification on the misuse of the funds, the size of the shortfall, and whether the requested money would be unrestricted; staff said the intent is to use it as a contract offset for core services. Commissioner Rich Ferretti then presented the Department of Criminal Investigations’ request for additional staffing and a Western Kentucky Digital Forensics Lab. He said DCI wants one additional special victims unit investigator and one digital forensic examiner to handle increasingly digital cases involving child exploitation, sexual assault, human trafficking, and technology-facilitated abuse. He also described plans for a lab in Mayfield, co-located with the new Mayfield Police Department facility, to reduce travel time, speed forensic processing, and improve access for rural communities. Committee members responded positively and asked no substantive questions. Finally, the Office of Homeland Security outlined Kentucky’s Next Generation 911 project. Officials said the current 911 system was built for landlines, while most calls now come from mobile devices, and the upgrade will add precise location routing plus text, photo, and video capability. Shelley Clark described the funding model, including wireless subscriber fees and a dedicated tech fund, and reviewed progress on mapping, vendor selection, and migration to the new platform, with completion expected by July 2027. Members asked about local maintenance costs and the impact on rural areas; officials said maintenance is local but supported in part by collected funds, and implementation will not be delayed for rural localities. The meeting concluded with no votes or formal actions taken.

Transcript Highlights:

• Or 18% in the other cost category, in some part due to mailing cost increases.
• In the other cost category, the agency requested $130,000.
• Other costs are related to additional administrative expenses, including costs related to their new facility
• That we needed to fund our operating budget.
• So these are costs that are. Currently being paid, but are not in their operating budget.

Transcript Highlights:

• might be raising the cost of TNC service.
• Yeah, what are your general cost drivers?
• It’s in the hundreds of millions of what this costs Californians.
• We've been seeing the cost go up.
• Precise trip activity data can provide information on cost and revenue that operators may not wish to

Summary: The hearing focused on transportation network companies in California, with the chair framing it as an informational hearing on the history, regulation, safety, climate, accessibility, and data issues surrounding Uber, Lyft, and smaller or autonomous TNC services. The CPUC described its decade-long regulatory role, including safety rules, background checks, insurance requirements, reporting obligations, and two major legislative programs from 2018: the Clean Miles Standard and the Access for All program. Members asked about complaint trends, data collection and disclosure, program implementation, and how the CPUC uses annual reports for policymaking, compliance, and program oversight. Uber and Lyft said the statewide framework has supported growth while providing safety and access benefits, but both companies emphasized that insurance is a major cost driver and argued that California’s UM/UIM requirement is unusually high compared with other vehicles. They said the Clean Miles Standard is pushing electrification but faces headwinds from EV affordability and charging infrastructure, while Access for All has expanded wheelchair-accessible service but still needs continued support. They also discussed transit partnerships, wildfire response, and the potential role of autonomous vehicles, with both companies saying human drivers will remain important and that future regulation should account for new technology. The final panel, including the San Francisco County Transportation Authority and UC Berkeley researchers, presented evidence that TNCs have increased congestion and reduced transit ridership, especially in dense urban areas. They described prior research showing TNCs contributed to congestion growth in San Francisco and noted that this work helped spur local taxes on ride-hailing trips to fund safety and transit improvements. The panel also discussed the CPUC’s evolving data-disclosure decisions, arguing that public access to TNC trip data is important for understanding transportation impacts and informing local policy.

Transcript Highlights:

• Rising costs for material supplies and operating costs, combined with sales tax on staffing services,
• costs.
• for material supplies and operating costs, combined with sales tax on staffing services, PD, and IT,
• costs.
• in the operating budget, and so we hope that you can... ...facility would come with those costs in the

Bills: HB2289

Committee: House Appropriations

Keywords: appropriations, budget, fiscal matters, state spending, general fund, supplemental budget, biennial budget, substitute bill, public defense, civil legal aid, courts, judicial branch, homelessness, supportive housing, affordable housing, behavioral health, juvenile rehabilitation, youth services, child welfare, foster care