Transcript Highlights:

• Now, what is the impact of that on the average taxpayer?
• We also, of course, had high inflation in recent years.
• We had inflation rates of 6, 7, 8 percent, inflation that we hadn't seen in decades at that high rate
• , and there are other cost drivers too, and then the impact of Proposition 2 1/2.
• But when inflation is running as high as it has, the math just doesn't work.

Summary: The Senate took up a long series of FY26 budget amendments during debate on the Ways and Means budget bill. Early on, an amendment on debt service and the Debt Affordability Committee was rejected. A major education amendment offered by Senator Lewis and supported by Senator Comerford was then adopted; it directs DESE to begin a public process, with $200,000 in funding, to review and recommend updates to the Chapter 70 municipal contribution formula and related school funding structures as the Student Opportunity Act nears full implementation. Senators argued that school districts across the Commonwealth are under severe fiscal strain, citing rising special education, transportation, health insurance, and Proposition 2 1/2 pressures, and that the current formulas are increasingly out of alignment with local needs. The chamber also considered and voted on many other amendments, with several adopted and several rejected. Adopted amendments included measures on public payroll transparency, regional EMS, a small business group purchasing cooperative pilot, simplifying Medicaid eligibility determinations, and early education background checks. Rejected amendments included proposals on first-time homebuyer savings accounts, population change studies, competitiveness studies, emergency contract reform, natural gas cost containment, a $200 per pupil aid increase, regional school reimbursement increases, a Foundation Budget Review Commission-related study, special education service studies, welfare benefit audits, short-term capital gains, and an MBTA sustainability plan. Senator Durant also spoke in support of Amendment 766, which would create a crumbling concrete assistance fund for homeowners affected by pyrrhotite, with tax-exempt aid, federal funding applications, audits, and a stakeholder working group. Near the end of debate, Senator D. DiDomenico praised the Shannon Grant program for gang violence prevention, and the Senate adopted a final corrective amendment containing technical fixes and local earmarks. The bill was then ordered to a third reading and, after a roll call on engrossment, passed to be engrossed by a vote of 38-2. The Senate also approved a motion to adjourn to the following Tuesday at 11:00 a.m. and recessed in memory of Yaron Lashinsky, Sarah Lynn Milgram, and Leslie A. Feeney.

Transcript Highlights:

• fairly and honestly, and activities are limited to those authorized, as well as minimize negative impacts
• and honestly, and it limits the activities to those authorized, as well as minimizing the negative impacts
• And this will help both consumers and insurance companies because inflated claim costs, which is what
• these AOBs can result in, they impact all of our premiums.
• Costs, which is what these AOBs can result in, they impact all of our premiums.

Bills: SB5831 , SB6031 , SB6178 , SB5928 , SB5919

Committee: Senate Business, Trade & Economic Development

Keywords: mortgage modification, uniform regulations, homeowners, financial stability, foreclosure prevention, public safety, insurance fraud, law enforcement, crime prevention, penalties, SB6178, property insurance, insurance claims, assignment of benefits, AOB, post-loss assignment, post-loss benefits, homeowners insurance, policyholder, insured

Transcript Highlights:

• One, it's not clear that hours worked is negatively impacted to the extent they're talking.
• We've had massive inflation, especially since COVID.
• The number that was thrown out on inflation, that percentage, was an average.
• Fewer units, especially with all the inflation. So that's our main concern.
• One challenge is inflation.

Bills: SB434 , SB844 , SB898 , SB1177 , SB1214 , SB1454 , SB1920 , SB1927 , SB1935 , SB1965 , SB2010 , SB2046 , SB2068 , SB2073 , SB2183 , SB2260 , SB3034 , SB907

Committee: Senate Local Government

Transcript Highlights:

• What is in fact impacted? I think industry might have some estimates that...
• How can we have less mitigation damage and less long-term impact?
• Okay, so I guess my question to you is, that's going, you know, inflation...
• And yes, all those would be inflation-adjusted.
• Those have negative impact on wildlife there.

Committee: Joint Arizona Off-Highway Vehicle Study Committee

Transcript Highlights:

• positive impacts to underserved, underdeveloped communities.
• We're at a critical point that our salary savings... ...due to inflation.
• Inflation has always been present.
• No, it's supposed to have the impact. That's a part of it.
• COVID hit, and we had like 60% increase in IT market costs, inflation, vendor pricing.

Summary: The Senate Budget Subcommittee heard several Caltrans, CHP, and DMV budget and trailer bill items. On Caltrans fleet replacement, the department requested a one-time $225 million augmentation to replace aging medium- and heavy-duty vehicles and expand zero-emission vehicle infrastructure. LAO said the request was consistent with state policy, but senators criticized the high cost of electric fleet purchases and Caltrans’ delayed zero-emission fleet report; the chair said the report must be delivered within 30 days before the request could be fully considered. Caltrans also presented trailer bill language to replace an originally intended $50 million federal transfer for the High Road Construction Careers Program with $30 million in state Highway Account funds after federal eligibility problems prevented use of the federal dollars. Members questioned the reduction, the delay in implementation, where the remaining funds would go, and whether the program would keep jobs in California and meet labor standards; Caltrans and the Workforce Development Board said the program had prior success and that the state-funds transfer was intended to preserve the original policy goal. The committee then reviewed CHP’s request for a $60 million augmentation for equipment and operating costs, which CHP said was needed because vacancy savings no longer covered rising fuel, vehicle, and other operating costs. CHP argued that recruitment success had reduced vacancies and that costs had risen sharply since 2006, while LAO recommended rejection, citing that the expenses were ongoing, CHP still had vacancies above pre-pandemic levels, and the Motor Vehicle Account faces structural insolvency by 2028-29. Members discussed whether the account can sustain these costs and whether the Legislature should consider broader funding changes. CHP also sought a permanent $885,000 augmentation for seven analyst positions for the Highway Violence Task Force; CHP said freeway shootings had fallen sharply since 2021 and that analysts were essential to solving cases, while LAO noted the request was smaller than prior years but would create an ongoing commitment. Senators generally supported the task force but asked for clearer metrics and reporting, especially because the data categories had changed over time. Finally, the DMV presented the State-to-State verification system and related modernization work under DXP. DMV said State-to-State is required for Real ID compliance and that California must join the system by February 2027, with live testing planned for the summer. Senators focused heavily on privacy and data security, especially the inclusion of Social Security number digits in the system, the role of the American Association of Motor Vehicle Administrators, and whether Californians understood their information would be shared in a nationwide database. DMV said the system only shares federally required data, uses encryption, and is designed to de-duplicate records across states, but members pressed for more information on governance, audit authority, and whether the Legislature had explicitly approved the data-sharing approach. The chair asked DMV to follow up with the Attorney General and indicated the committee would continue reviewing the issue.

Transcript Highlights:

• If they make these decisions on health care, on transportation, on other things, it will impact us in
• </c><00:31:23.760><c> We</c> impact that those cuts will make. We impact that those cuts will make.
• us in a profound things, it will impact us in a profound way.<00:31:47.760><c> One</c><00:31:47.919>
• </c><00:37:01.119><c> The</c> inflation in the um budget bianium.
• The inflation in the um budget bianium.

Transcript Highlights:

• Not only indexing the infant supplement to inflation, but also increasing it by $524.17 to cover the
• The necessity of indexing the infant supplement to inflation cannot be overstated.
• The infant supplement is one of only two foster care payments not currently indexed to inflation.
• Additionally, immense inflation has also continued to apply additional cost pressures to these parents
• Indexing to inflation would help compensate for the increase in costs for these basic needs for infant

Committee: House Human Services

Summary: The Assembly Human Services Committee met as a subcommittee while waiting for quorum and heard several bills related to homelessness, housing, foster youth, domestic violence, disability services, and immigrant legal aid. AB 790, by Assembly Member Avila Farias, would require cities, counties, and continuums of care receiving homelessness funds to develop systems specifically supporting women and children; it drew supportive testimony from New Economics for Women and others and passed unanimously after committee amendments. ACA 4, the Housing Opportunities Made Equal Act by Assembly Member Jackson, would dedicate 5% of the state general fund to affordable housing and homelessness solutions; supporters argued more stable funding is needed, while opponents questioned whether more spending would help, and the measure passed on a 5-2 vote. AB 349, by Assembly Member Dixon, would index the infant supplement for parenting foster youth to inflation, with testimony emphasizing the needs of teen mothers and babies in foster care; it passed unanimously after amendments. AB 779, by Assembly Member Lackey, would expand a domestic violence consultant model in child welfare offices statewide to better support survivors and keep families together; it also passed unanimously after amendments. The committee also heard AB 1335, by Assembly Member Gonzales, which would remove the CARF outside accreditation requirement for regional center vendored employment programs for people with disabilities and shift oversight to state standards. Supporters said the current accreditation process is costly, duplicative, and a barrier to expanding employment services, while the chair expressed concern about reducing quality checks; the bill was left on call and later reported out on a 5-2 vote. AB 1066, by Assembly Member Castillo, would bar state-funded immigration legal services for undocumented immigrants convicted of specified serious felonies; supporters framed it as a public safety and fiscal responsibility measure, while opponents said it would undermine due process and align California with mass deportation efforts. After extended debate, the bill failed on a 2-2 vote, and a motion for reconsideration also failed. Two bills were pulled by the author and not heard: AB 277 and AB 318. After the roll was reopened for absent members, the committee finalized the votes on the measures heard earlier, confirming passage of AB 790, ACA 4, AB 349, and AB 779, while AB 1066 remained failed. The meeting then adjourned.

Transcript Highlights:

• ,</c> just numbers, is about impact, just numbers, is about impact, innovation,<00:14:52.320><c> and<
• </c><00:27:06.159><c> The</c> and the inflation reduction act. The and the inflation reduction act.
• </c> and I thank him for the profound impact and I thank him for the profound impact he's<00:57:51.440
• </c> doesn't impact each one of our district. doesn't impact each one of our district.
• </c> addicted who's impacted by addiction." addicted who's impacted by addiction."

Transcript Highlights:

• The program has had a huge impact on DeafBlind lives.
• So I'm sure you feel the impact as well. I wanted to thank you for your time.
• They are structural funding problems that directly impact students.
• In a district of nearly 10,000 children, this impact is felt in every school.
• We're a restorative justice organization led by system-impacted people.

Committee: Joint Joint Committee on Ways and Means

Transcript Highlights:

• They put this swept in 2011 down to where it is now in stable terms, no inflation whatsoever.
• Not a major change, simply an inflation adjustment that begins to recognize inflation.
• a change that begins to inflation a change that begins to recognize<01:26:29.440><c> inflation</c><01
• </c> by what in effect is inflation. by what in effect is inflation. um<01:27:47.040><c> and</c><01:27
• <c> different</c><01:27:59.120><c> rate</c> tends to re inflate at a different rate tends to re inflate

Committee: House Ways and Means

Transcript Highlights:

• But when it comes to income taxes, it does have a direct impact.
• It also has indirect impacts that we'll talk a little bit about.
• We also need to consider inflation.
• You just can't catch up with inflation.
• and how that's going to impact.

Committee: House Revenue Stabilization & Tax Policy Committee

Transcript Highlights:

• Such actions may blunt the impact of rate increases.
• And they've never been inflated, right?
• And they've never been inflated, right?
• The assessments have never been inflated; they've been fixed despite out-of-control inflation and despite
• And they've never been inflated, right? The assessments have never been inflated.

Committee: Senate Business & Commerce

Transcript Highlights:

• Joining me now is Republican Senator Jim Abeler, who says the changes impact more than just policy.
• They impact people. Senator, welcome back. Well, good to be here on a rainy day in Minnesota.
• And so they got rid of some inflation. That was their big contribution.
• That was their big inflation.
• </c> 90 million a two billion dollar impact 90 million a two billion dollar impact on<00:12:59.279><c

Transcript Highlights:

• like how What's the impact to tourism?
• </c> have done and how that's impacted them. have done and how that's impacted them.
• </c> at play right now that could also impact at play right now that could also impact tourism<00:22:
• </c> those um positive uh benefits um impact those um positive uh benefits um impact the<01:31:28.960
• </c><01:42:58.480><c> Thank</c> uh cover inflation. Thank you. Thank uh cover inflation. Thank you.

Summary: The committee held a public hearing on SB 63, a bill described by Senator Tim Lang and other supporters as a technical correction to the rooms and meals tax distribution formula. Lang said the bill would clarify that the Division of Travel and Tourism’s 3.15% promotional allocation is taken from gross rooms-and-meals revenue before the 30% municipal reimbursement fund is calculated, which he argued restores the intended 2009/2021 structure and avoids an unintended loss to tourism marketing. Committee members raised questions about whether the bill actually changes section one or instead addresses DRA’s interpretation, and whether the measure could be affected by the budget process or HB 2. Jessica Keeler of Ski New Hampshire testified in strong support, saying the bill would preserve the promotional budget formula that had been in place since 2009 and that the 2019 revision effectively reduced the promotional allocation by placing the municipal share first. She said tourism promotion has helped increase visitation, revenues, and jobs, and warned that without a fix, the joint promotional program and other tourism efforts could be cut in future budgets. She also said the bill would not change the current year’s tourism budget but would matter for future cycles. Mike Summers of the New Hampshire Lodging and Restaurant Association also supported SB 63, calling it a correction to the 2021 changes and arguing that state tourism marketing is essential because small businesses cannot reach distant markets on their own. He said the industry has benefited from state promotion, especially after COVID, but is now facing softer occupancy rates, lower Canadian visitation, and financial strain from debt and operating costs. Summers said the industry cannot make up for major tourism budget cuts on its own and urged maintaining or increasing travel and tourism funding. No vote or final action was taken at the hearing.

Transcript Highlights:

• I think P is going to maybe also add to the discussion of what the impact of using that word is, and
• Senator Putnam’s bill was two or three million, and I’m still uncertain as to what the impact would be
• <00:16:28.639><c> uh</c> impact uh impact uh would<00:16:30.000><c> be</c><00:16:31.000><c> um</c><00
• </c><00:41:10.960><c> by</c><00:41:11.599><c> tax</c> and impacted by tax and impacted by tax increment
• values and due to due to inflating values and due to inflating inflating inflating budgets<01:06:17.000

Committee: Senate Taxes

Transcript Highlights:

• It does not make any change to current state policy and it does not have a fiscal impact.
• Worrying about the impact on your constituents. The impact is relatively insignificant.
• You know so many of them are struggling right now with inflation.
• People, because of inflation, just aren't going out to eat anymore.
• And I mean... with inflation.

Bills: SB264 , SB542 , SB924 , SB1008 , SB1029 , SB1036 , SB1057 , SB1058 , SB1185 , SB1202 , SB1358 , SB1364 , SB1376 , SB1569 , SB1664 , SB1697 , SJR50

Committee: Senate Business & Commerce

Transcript Highlights:

• But he was reporting as to its impact on inflation.
• inflation inflation and<00:06:07.759><c> they</c><00:06:07.919><c> would</c><00:06:08.160><c> employ
• </c> reporting as to its impact on inflation. reporting as to its impact on inflation.
• Miller-Meeks, for five minutes. relating to inflation. So let's dis relating to inflation.
• Bring inflation down on the food need.

Transcript Highlights:

• Inflation impacts government as well.
• Inflation impacts government as well.
• County recording fees to catch up with inflation.
• by inflation.
• And as was noted from the impacted families, extremely important to get right.

Committee: House Local Government

Summary: The Assembly Local Government Committee heard a long slate of bills, with the chair opening by outlining hearing rules, noting in-person testimony only, and identifying several bills for the consent calendar. The committee repeatedly operated without a quorum for much of the hearing, so several authors closed with requests for aye votes before formal action could be taken. AB 407 (Jackson) was heard first and would broaden eligibility in state loan and financing programs to help small businesses fund environmental, seismic, and ADA upgrades; it drew support from the Treasurer’s office and no opposition. AB 93 (Papan) would require state and local agencies to develop best practices and reporting around data center water use; supporters emphasized water scarcity and transparency, while the Data Center Coalition opposed it as overly restrictive and potentially burdensome. The League of California Cities and water agencies were generally supportive or neutral with amendments. The committee also heard several housing-related bills. AB 650 (Papan) would give cities earlier RHNA information and require HCD to provide clearer, more actionable housing element feedback; it received broad support from cities, planning groups, and housing advocates, with no opposition. AB 507 (Haney) would streamline adaptive reuse of office buildings into housing, especially in downtowns, and AB 1294 (Haney) would create a more standardized housing application process; both drew strong support from housing and business groups, while local government groups raised concerns about one-size-fits-all mandates and local discretion. AB 610 (Alvarez) would strengthen housing element transparency and limit new local housing constraints and fees after certification; supporters said it would improve certainty, while legal aid and city groups opposed it as too rigid and potentially harmful to inclusionary housing and local fee authority. AB 610 ultimately received a 7-0 do-pass recommendation to Appropriations. Other measures included AB 1044 (Macedo), which would create a new groundwater sustainability agency structure for Tulare County to help the region comply with SGMA; it was backed by county and agricultural water representatives and had no opposition. AB 523 (Irwin) would allow proxy voting for single-representative member agencies on the Metropolitan Water District board, with support from several water districts and no opposition. AB 1112 (Wallace) would repeal an outdated property tax carve-out affecting Rancho Mirage; the city supported it as restoring equity, and the committee called the roll after reaching quorum, then moved the bill do pass as amended to Appropriations by a 6-0 vote with the roll left open. Finally, AB 698 (Wicks) would require analysis of the housing, market-rate, and property tax impacts before a local transfer tax is adopted; supporters said it would inform local decision-making, while opponents, including a coalition tied to Los Angeles’ Measure ULA, argued it could undermine local revenue tools and housing funding. The committee discussed that the bill was forward-looking and not retroactive, and then moved it forward as amended.

Transcript Highlights:

• have impacted the revenue yields from our fuel tax.
• So then finally, on page five, it just tracks the inflation.
• Any chance that inflation gets under control?
• I mean, we've received the environmental impact study and the record of decision.
• These are real decisions that really impact our constituents' bottom line.

Bills: HJR58 , HJR63 , HB263 , HB542 , HB905 , HB 1288 , HB1402 , HB2003 , HB2262 , HB2323 , HB2429 , HB2876 , HB3019 , HB263

Committee: House S/C on Transportation Funding

Keywords: healthcare, insurance, elderly, retirement, benefits, transit-oriented projects, constitutional amendment, state highway fund, funding allocation, voter approval, highway fund, funding, public transportation, transit projects, transportation, local transit, fund allocation, voting rights, election integrity, ballot access

Transcript Highlights:

• enough with inflation with uh choking<00:17:12.079><c> regulations</c><00:17:12.679><c> in</c><00:17
• and how that impacts us in Michigan.
• A year-long CR would negatively impact our economy.
• </c><00:28:57.039><c> our</c> would be NE would negatively impact our would be NE would negatively impact
• </c><02:43:47.960><c> they</c> would create massive inflation they would create massive inflation they