Transcript Highlights:

• Our state budget discussions are taking place during historic uncertainty for the budget.
• While UC campuses do have reserves, the unallocated core funds reserves system-wide are not enough to
• Even the Governor's budget talks about a massive budget structural deficit, which if we continue that
• were not in the final budget.
• of the Governor's budget.

Transcript Highlights:

• </c> my colleagues and I yield back reserve my colleagues and I yield back reserve the<00:38:52.359><
• ><c> and</c> back reserve the gentleman reserves and back reserve the gentleman reserves and the<00:53
• ><c> and</c> back reserve the gentleman reserves and back reserve the gentleman reserves and the<01:11
• the gentleman reserves yield I reserve the gentleman reserves and<01:14:59.320><c> the</c><01:14:59.400
• Our foreign aid budget is less than 1% of our federal budget.

Transcript Highlights:

• </c> discussion are there any reservations discussion are there any reservations are<00:09:16.839><c>
• </c> discussion are there any reservations discussion are there any reservations are<00:10:24.959><c>
• ><c> for</c><00:11:00.040><c> Senator</c> reservation for Senator reservation for Senator mckelvie<00
• <00:11:23.920><c> any</c><00:11:24.200><c> no</c> reservations any no reservations any no votes<00:11
• <00:11:53.360><c> any</c><00:11:53.600><c> no</c> reservations any no reservations any no votes<00:11

Transcript Highlights:

• reserve.
• But under the operation of House File 4, those transfers to the budget reserve would only be allowed
• So however much of that $3.7 billion fell into that window could be part of the budget reserve, but then
• Under the operation of House File 4, those transfers to the budget reserve would only be allowed within
• So however much of that $3.7 billion fell into that window could be part of the budget reserve, but then

Bills: HF4 , HF173

Committee: House Taxes

Transcript Highlights:

• year, but budget year plus one.
• We know that from the last few budgets, where we had to tap into the reserves to help solve past budget
• Proposition 98, so the education budget, which is basically a budget within our overall budget, is seeing
• The governor's budget does not propose to change what was happening in the 25 budget.
• budget.

Summary: The Assembly Budget Committee opened its hearing on the Governor’s 2026-27 budget with remarks emphasizing the start of a months-long process, the need for fiscal responsibility, and concerns about structural deficits, federal funding losses, housing and homelessness, and oversight. The vice chair echoed those concerns, warning against budgets built on short-term fixes and urging accountability. The Department of Finance presented a balanced budget year proposal of about $349 billion in total expenditures, including $248 billion General Fund, while acknowledging a structural imbalance in the out years and proposing a workload budget with limited new spending or cuts. Finance said the budget relies on stronger-than-expected revenues, but also on constitutional obligations such as Proposition 98 and Proposition 2, and on suspending a rainy-day fund true-up deposit to cover a projected $2.9 billion budget-year deficit. The administration highlighted higher education funding, climate and wildfire resilience investments, a new ZEV incentive, added Health and Human Services costs tied to H.R. 1, child care funding, and three tax proposals: third-party delivery tax compliance, a sustainable aviation fuel tax credit, and an extension of the California Competes tax credit. The LAO, by contrast, warned that the budget is “precariously balanced,” cited downside risk from stock market-driven revenues, and urged the Legislature to use reserves, avoid suspending rainy-day deposits, and begin shrinking multi-year deficits sooner rather than later. Member questions focused on wildfire mitigation and insurance, transit and GGRF funding, federal cuts affecting CalFresh and Medi-Cal, the proposed tax credits, homelessness accountability language, and education funding. Several members pressed for earlier partnership on deficit solutions and for more scrutiny of budget choices. The committee also discussed declining enrollment in K-12, community colleges, and CSU, with concerns about whether funding formulas are aligned with actual student demand. No formal votes or final actions were taken in the hearing.

Transcript Highlights:

• I reserve the balance of my time. The gentleman from New Jersey reserves.
• I reserve the balance of my time.
• <05:53:26.840><c> gentleman</c> reserve gentleman reserve gentleman reserves<05:53:29.400><c> from</c
• I reserve the balance of our time.
• Okay, the gentleman from Illinois reserves. Okay, the gentleman from Illinois reserves.

Transcript Highlights:

• Any reservations? Reservations for Rep. Almost. Any other reservations? Any no votes?
• </c> reservations? Reservations for Rep. reservations? Reservations for Rep.
• Any reservations? Reservations for Rep. Almost. Any other reservations? Any no votes?
• Reservations. Any reservations? Reservations.
• Reservations for reservations?

Committee: House Finance

Transcript Highlights:

• budgets.
• We have our budget team who puts the budgets together.
• Those reserves are preserved in this budget. The governor is a...
• Those reserves are preserved in this budget.
• It does not rely on budget stabilization to balance ongoing spending, and reserves are preserved for

Summary: The Joint Finance-Appropriations Committee opened the session with roll call, confirmed a quorum, and introduced new members, staff, and pages. Co-chairs and staff then reviewed JFAC’s role as the legislature’s main budget committee, the committee’s daily schedule, and the resources available through legislative staff, the impact team, and the newly released 2026 Legislative Budget Book and related budget tools. The committee received a detailed briefing from the Division of Financial Management on the JFAC calendar and then from Governor’s Budget Director Lori Wolf on the governor’s FY 2026 and FY 2027 budget recommendations. Wolf said the budget is balanced but tight, relying on a mix of ongoing reductions and one-time actions rather than reserve fund transfers. Major budget actions included a 3% ongoing reduction across most state agencies, reversions of certain one-time balances to the general fund, no recommended pay increase for state employees or teachers, and higher employee health insurance costs. The budget also proposed reductions or policy changes in Medicaid, virtual school funding, Idaho Digital Learning Academy, and some transportation and water-related funds, while preserving funding for public safety, education, water, and transportation priorities. Members questioned the assumptions behind the budget, especially the projected ending balances, the use of one-time transfers, the impact of rising health insurance costs on employees, the effect of Medicaid cuts on services and cost shifts, and the rationale for reductions to online education and IDLA. Several members also asked about the proposed federal tax conformity changes, including the timing of implementation and the treatment of Idaho’s existing R&E tax credit. Wolf said the conformity estimate was based on Tax Commission analysis and that the administration was not recommending use of the budget stabilization fund. No votes or formal actions were taken; the committee concluded by noting that the Economic Outlook Committee would meet later in the week and that JFAC would continue budget hearings the next day.

Transcript Highlights:

• Any members voting with<01:27:18.639><c> reservation?</c> with reservation? with reservation?
• &gt;&gt; Reservation. &gt;&gt; Reservation. &gt;&gt; Reservation.
• Any members voting with reservation? Reservation for Representative Alato. Any other reservations?
• Any reservations? Reservations for Representative Moroka. Any other reservations? Any nos?
• Any reservations? and vice chair vote I. Any reservations?

Summary: The committee on Education met on March 19 and moved through several bills under time pressure, hearing mostly brief testimony. SB 2024 SD2 and SB 896 SD2, both concerning public-private partnerships for charter school facilities, drew support from the Department of Education, the Charter School Commission, White Kids Can, and Hawaii Technology Academy. DOE said any P3 model should apply only to charter schools on private land and not affect public schools on DOE land. Supporters argued the approach could speed construction, reduce costs, and keep public money in public assets, while UPW and HGA raised concerns about privatization. In response, SFA said the intent was to mirror the existing conversion charter school model, with public ownership of assets and unionized staff, and noted some regions have waited years for schools. SB 2613 SD1 on TMK transfers was heard next. DOE said the bill had originally been supported as part of the governor’s package but was amended to require DOE to convey lands for 13 libraries on DOE property, which DOE said would create “donut holes” in campuses and was unnecessary because existing agreements already govern library use. The State Public Library System supported the bill, saying it has long coexisted with DOE but needs clearer separation and more reliable control over its sites. The Attorney General’s office said the library system currently lacks express statutory authority to own real property and flagged implementation issues because some of the affected parcels are not currently owned by DOE. Committee members questioned both sides about current agreements, communication, and how the bill would change operations. SB 494 SD2, concerning charter school audits, received comments from the Charter School Commission, which said the bill was redundant because charter schools already undergo annual audits during the term of their contracts. The Office of the Auditor was also present. SB 2391 SD2, relating to automatic pay increases for teachers, drew strong opposition from the Office of Collective Bargaining, which said step movement and longevity increases are negotiated in each contract and do not automatically carry over when a contract expires; it warned the bill could affect upcoming negotiations with HSTA. HSTA and several other supporters argued the bill would standardize annual step movement, improve retention, and reflect existing contract language. No votes or final actions were taken in the portion of the meeting provided.

Transcript Highlights:

• </c> our budget system.
• And our budget system our budget system.
• In that summary of profiled accounts, it talks about what's the general fund, what's the budget reserve
• </c> the general fund, what's the budget the general fund, what's the budget reserve<01:11:04.440><c>
• Seeing none, back to Representative Bear, second time. budget." budget."

Transcript Highlights:

• relative to the Governor's budget.
• All three years in the budget window remain in test one.
• I also think the Proposition 98 reserve deposit is prudent.
• than most other parts of the state budget.
• I also want to add that it's not included in the education budget, but on the other side of the budget

Summary: The committee heard presentations on the Governor’s May Revision TK-12 education proposals, beginning with Proposition 98. The Department of Finance explained that the minimum guarantee rises by about $6.4 billion relative to the January budget across the three-year window, with a total of $124.9 billion in 2024-25, $125.1 billion in 2025-26, and $127.1 billion in 2026-27. Finance also described revised settle-up and reserve actions, including maintaining a $3.9 billion settle-up balance, increasing discretionary deposits into the Prop. 98 reserve, and ending with a projected reserve balance of about $10.3 billion. The Legislative Analyst’s Office said the overall estimates were reasonable but urged the state to fully fund the guarantee and use other budget actions or reserves to manage volatility rather than delay settle-up payments. Members questioned the rationale for leaving the $3.9 billion unsettled, and Finance said the amount reflects revenue uncertainty and the risk of overappropriating Prop. 98 if revenues later fall. The committee then reviewed the Department of Education portion of the May Revision. Finance said the budget adds positions and state operations funding for CDE and includes trailer bill changes affecting community schools, preschool, literacy, special education, charter accountability, and other programs. The LAO highlighted concerns and recommendations on several proposals, including the size and structure of the LCFF increase, the special education base-rate increase, additional one-time community schools funding, literacy coach and math professional development augmentations, the multilingual screener, inclusive college grants, homelessness grants, and the proposed paid pregnancy disability leave mandate. CDE supported the special education increase, paid pregnancy leave, community schools, homelessness funding, literacy and math investments, and preschool parity, while urging more support for county offices of education and clearer definitions and implementation details for some programs. Finance said the paid pregnancy leave proposal would cost an estimated $218 million annually and is intended as a recruitment and retention measure. In the Commission on Teacher Credentialing item, Finance proposed funding for legal staffing tied to SB 848 and educator misconduct cases, plus funding and fee changes to support a statewide transcript review platform for subject matter competency and additional support for the residency technical assistance center. The LAO said it had no concerns with the staffing for misconduct and SB 848, recommended the transcript review platform and related fee increase if the platform moves forward, and recommended rejecting the residency technical assistance center expansion because current funding lasts through 2029. CTC said the misconduct workload has grown over the last five to six years and that AI would be used only as a backstop to human review in the transcript system. Public commenters were split, with unions and education groups supporting special education, paid pregnancy leave, community schools, homelessness funding, and literacy investments, while opposing the $3.9 billion settle-up delay and the reduction to preschool COLA.

Transcript Highlights:

• However, this budget does the opposite.
• I think this is one of the areas of the budget where tough decisions, one of many areas of the budget
• The first is our default reserve fund.
• more oversight of the reserves.
• state budget?

Summary: The Assembly Subcommittee on State Administration held a budget hearing focused heavily on housing, homelessness, and related administrative proposals. HCD reported that California housing production has increased, with 2023 completions up 13% from 2022 and entitlement and construction timelines improving, while members and advocates criticized the Governor’s January budget for zeroing out or sharply reducing several housing programs. Public testimony urged funding for affordable housing production, preservation, youth housing, CalHome, LIHTC, HAP, and related programs, and several speakers argued the state should not pull back after recent progress. A major policy item was trailer bill language to allow HCD to access “excess equity” in existing affordable housing projects and recycle those funds into new or preserved housing. HCD and the LAO said the proposal could unlock tens or hundreds of millions of dollars, but members wanted guardrails and clearer statutory direction to ensure the funds stay within the intended housing purposes. The committee also discussed encampment resolution funding; HCD said the proposal would shift expenditure deadlines to the date of award rather than appropriation, while the LAO raised concerns about limited outcome data and urged the Legislature to use upcoming reporting before deciding on future funding. The hearing also covered HCD trailer bills to consolidate default reserve funds into a centralized continuously appropriated account and to clarify reporting requirements for early rounds of the Homeless Housing, Assistance and Prevention program. HCD requested funding to implement chaptered legislation, including a new tribal housing program and reporting-related bills, and also sought extensions for certain reappropriations, including Homekey and REAP 2 deadlines. Public commenters and regional agencies supported flexibility for REAP 2 timing and other housing-related adjustments. Finally, the Business, Consumer Services and Housing Agency presented the Governor’s reorganization proposal to split the current agency into a Housing and Homelessness Agency and a Consumer Protection Agency. The administration said the change would improve focus, efficiency, and coordination, but the LAO and several members questioned whether it would truly save money or improve accountability, especially given the need for new leadership, possible staffing changes, and the fact that the plan had not yet been formally submitted for review. No votes were taken during the hearing.

Transcript Highlights:

• reserve trust fund as in 2024 the budget reserve trust fund as in 2024 we'll<00:12:47.040><c> use</c
• </c><00:38:49.920><c> than</c> budget reserve trust fund rather than budget reserve trust fund rather
• c> for</c> use the budget reserve trust fund for use the budget reserve trust fund for ongoing<00:39:
• </c><00:56:16.720><c> reserve</c> have gone through this budget reserve have gone through this budget
• </c> budget reserve trust fund. budget reserve trust fund.

Summary: The meeting opened with prayer and the Pledge of Allegiance, then moved into committee and floor reports. Several measures received favorable committee reports and were ordered to first reading and placed on the calendar, including Current Resolution 9, Senate Joint Resolution 23, House Bill 145, House Bill 567, and House Bill 506 with House Committee Substitute 1. The chamber also noted that House Bills 500 and 504 had already received two readings and were sent to the Rules Committee before House Bill 500 was brought up for final consideration. Most of the discussion focused on House Bill 500, the executive branch budget bill. Members described it as a “good first draft” and emphasized a budget process they said was more transparent than in prior years. The bill was presented as a restrained two-year operating budget with spending growth kept at a little under 2% annually, while setting aside about 2% of projected revenues, or roughly $614 million, in the Budget Reserve Trust Fund for future needs. The budget also used base reductions in some areas while exempting others such as Medicaid benefits, SEEK, corrections, behavioral health, and veterans programs. Subcommittee chairs then outlined major spending areas. Education provisions included a 2% annual increase in base SEEK funding, transportation funding held flat, equalization for recallable nickel funding, continued retirement contributions, and major support for postsecondary access, dual credit, asset preservation, and workforce training. Health and family services provisions held Medicaid steady while adding waiver slots, behavioral health and substance use support, public health investments, and funding for rural health and laboratory capacity. Other sections covered personnel and pensions, veterans services, infrastructure, public safety, economic development, tourism, and environmental projects. The only recorded action on the floor was adoption of House Committee Substitute 1 to House Bill 500, followed by a motion for final passage of the bill as amended. The transcript ends as discussion on final passage begins, before any final vote is shown.

Transcript Highlights:

• As far as the budget, that wasn't based on our budget because we do it much cheaper here.
• Any reservations? Any notes?
• Any reservations? Any notes?
• Any reservations? Any notes?
• Any reservations? Any noes?

Committee: House Finance

Transcript Highlights:

• I reserve. With that, Mr. Speaker, I yield back. I reserve.
• I reserve. The Speaker pro tempore: The gentleman reserves. I RESERVE.
• EZELL: I RESERVE. The Speaker pro tempore: The gentleman reserves.
• I'll reserve. The Speaker pro tempore: The gentleman reserves.
• I'll reserve. The Speaker pro tempore: The gentleman reserves.

Transcript Highlights:

• </c> necessary transparency bill I reserve necessary transparency bill I reserve the<03:47:32.159><c>
• the balance of Our Time them I reserve the balance of Our Time gentleman<03:50:36.560><c> reserves</
• the balance of my Gentleman I reserve the balance of my Gentleman reserved<03:57:49.319><c> the</c><
• I reserve the balance of my time.
• I reserve the balance of my time. The gentlewoman reserves. The gentleman is recognized. Mr.

Transcript Highlights:

• </c> thank you we have Department of budget thank you we have Department of budget and<01:35:01.840><
• </c><03:47:02.239><c> any</c><03:47:02.600><c> knows</c> any reservations any knows any reservations
• Any other reservations? Rep Miake. Reservations. Rep Tempo. Rep Flasa. Any other reservations?
• c> rep</c> reservations rep miake reservations rep reservations rep miake reservations rep Tempo<04:04
• Any reservations? Any noes?

Committee: House Finance

Transcript Highlights:

• Just like our reserves are POST-certified.
• It has to be in their budget to give you that person.
• It has to be in their budget to give you that person.
• You have 47 deputy marshals, reserve officers? Reserve officers.
• And so your budget, you have a budget that the city council has approved, and that's what you go by,

Committee: House Administration of Criminal Justice

Summary: The Committee on Criminal Justice met on April 14, 2026, and first handled several voluntary deferrals, including HB 343, HB 491, HB 523, HB 426, HB 439, HB 378, and later HB 1025. HB 676 by Rep. Spell, which creates the crime of fraudulent patient referrals or “body brokering,” was amended and reported favorably. Testimony from Louisiana Blue, Odyssey House, and others described the practice as exploiting vulnerable addiction and mental health patients for profit, while supporters said the bill targets organized fraud and protects patients, families, and insurers. The committee also reported HB 394 by Rep. Chenevert, which extends the conditional parole period from nine months to 24 months for offenders who must complete programming before release. Supporters, including the Louisiana Parole Project, said the change gives the parole board more flexibility and does not create new parole eligibility, while the bill was amended to remove some language tied to rehabilitation programming review. HB 622 by Rep. Coates, dealing with confidentiality and handling of criminal history records, was reported favorably after testimony that it is needed to align state law with federal FBI/CJIS requirements and tighten safeguards on background-check information. HB 396 by Rep. McMakin, concerning admissibility of autopsy photographs, was amended to apply to criminal proceedings generally and then reported favorably. HB 772 by Rep. Martinez, which modernizes notice requirements for arrest warrants by allowing electronic notice and clarifying mailing procedures, was also reported favorably despite concerns from Orleans Parish prosecutors about costs and surety liability. HB 1038 by Rep. Boyer, addressing marshal authority to issue deputy commissions and related liability/insurance issues, drew substantial testimony from marshals, city officials, and local government groups; after amendments requiring insurance coverage and clarifying funding and applicability, it was reported favorably on an 8-2 vote. HB 1025, which would have created an exception allowing reconciliation after a protective-order violation, drew strong opposition from domestic violence advocates and prosecutors and was voluntarily deferred by the author.

Transcript Highlights:

• </c> talk about depreciation reserve talk about depreciation reserve &gt;&gt; Mr.<00:00:56.960><c> Chairman
• Um, we think depreciation reserve.
• </c> it into this depreciation reserve fund. it into this depreciation reserve fund.
• Thank you. we our budget is spending authority we our budget is spending authority only.<00:04:19.120
• </c> in 2021 the TRP budget was 10.4 million. in 2021 the TRP budget was 10.4 million.

Committee: Joint Appropriations

Transcript Highlights:

• My family—I grew up on a small reservation in Loleta, the Table Bluff Reservation.
• in Lolita, the Tablebuff Reservation.
• funding is not just a line item in a budget.
• So we have extra budgets just in case. Thank you.
• So we have extra budgets just in case. Thank you.

Summary: The Senate and Assembly Human Services Committees held a special oversight hearing on California’s 2026-27 Community Services Block Grant (CSBG) state plan, a federal anti-poverty funding stream. Committee members opened by citing statewide poverty and homelessness data and said the hearing was meant to review how CSBG dollars are used, how local agencies respond to community needs, and how the state is preparing for possible federal funding cuts. Jason Wimbley of the Department of Community Services and Development (CSD) explained that California’s CSBG network works through 60 organizations in 58 counties, serving about 1.5 million low-income Californians in 2023, and that the state received $68.4 million in federal CSBG funds in fiscal year 2025. He described the program as flexible funding used for housing, employment, education, food, health, transportation, and emergency response, and noted that the federal administration had proposed eliminating CSBG, though the Senate Appropriations Committee had voted to fully fund it for the coming year. Representatives from the California Community Action Partnership Association and several CSBG-funded agencies described how the program supports local anti-poverty work and leverages other funding. CalCAPA emphasized local flexibility, workforce development, partnerships, and data systems such as ROMA, while also warning that agencies are preparing for possible reductions by tightening budgets, planning staffing contingencies, and seeking private foundation support. Agency witnesses from Contra Costa County, Northern California Indian Development Council, Proteus, and Sacred Heart Community Service described services including housing assistance, food distribution, utility help, employment training, youth programs, and culturally specific services for Native communities and migrant farmworkers. They repeatedly said CSBG is essential because it funds staffing and infrastructure that allow them to braid other grants and serve people who do not qualify for standard safety-net programs. Members also asked about the impact of federal staffing changes and the Los Angeles fires. Wimbley said federal layoffs had affected some CSD programs but not CSBG administration, and that the department coordinated disaster response with state agencies and used CSBG-funded supply distribution, food, water, clothing, and documentation support during the fires. Witnesses said they were preparing for possible future cuts by diversifying funding, reducing expenses, and considering service changes, while county officials warned that state and federal reductions could not be backfilled locally. During public comment, one speaker urged stronger oversight of community action agencies and raised concerns about transparency and compliance with state law. The chair then thanked the witnesses, emphasized the importance of CSBG for low-income seniors, youth, and people with disabilities, and adjourned the hearing without any votes or formal action taken.