Video & Transcript Research : 'proxy proposal'
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CA
California 2025-2026 Regular Session
Assembly Budget Subcommittee No. 3 on Education Finance Mar 19th, 2025
Transcript Highlights:
- But as we discuss the Governor's proposals and other issues, I'm going to be asking about how each proposal
- Now, on to the Governor's budget proposals.
- With that final point on trying to keep track of the cost for the proposal, the proposal to lift the
- I'm certainly much more interested in this proposal than the passport proposal, just to be very honest
- Proposes $168 million in one-time Proposition 98 General Fund for this proposal.
MN
Minnesota 2025-2026 Regular Session
Working Group on Omnibus Taxes Bill - 05/27/25
Minnesota Senate Floor Meeting
Transcript Highlights:
- the the proposal from Friday. the the proposal from Friday.
- uh a cost impact on this uh proposal. uh a cost impact on this uh proposal.
- Representative Lee's proposal? Representative Lee's proposal?
- uh, egg um, uh, proposals. uh, egg um, uh, proposals.
- <00:55:22.240>
like proposal other proposals, I would like proposal other proposals, I would
VT
Vermont 2025-2026 Regular Session
Senate Session - 2026-05-13 - 10:00AM
Vermont Senate Floor Meeting
Transcript Highlights:
- May I interrogate the proposer of the amendment? >> The proposer is interrogated. >> Um, Mr.
- >> The proposer is interrogated. >> The proposer is interrogated.
- concurrence with proposal of amendment? concurrence with proposal of amendment?
- proposal. Thank you, Mr. President. proposal. Thank you, Mr. President.
- proposal of amendment.
ND
North Dakota 2026 1st Special Session
Administrative Rules Committee Jun 11th, 2026
Administrative Rules Committee
Transcript Highlights:
- Skip to Proposal 11.
- Proposal 11. This was because, um... Proposal 11.
- So Proposal 14.
- Proposals 16.
- Proposal 19... ...to a different section, so that was an easy one. Proposal 19.
Summary:
The committee approved the March 12, 2026 minutes and granted the Board of Medicine an extension of time to implement rule changes tied to House Bill 1620/1622, which concern North Dakota’s entry into the physician assistant licensure compact. The Board said it is waiting on compact rules, especially fee structures, before finalizing its own rules. The committee then took up extensive Office of Management and Budget personnel rule revisions, covering salary administration, recruitment, leave policies, funeral leave, service awards, appeals, and shared leave. OMB said the changes modernize HR practices and implement recent legislation, including new hire leave and enhanced annual leave for hard-to-fill positions; the committee raised concerns about the subjectivity and fairness of the hard-to-fill leave provisions, but no action was taken against the rules.
The North Dakota Lottery presented emergency and regular rule changes, including updates tied to the Millionaire for Life game and miscellaneous clarifications. The Board of Examiners for Audiology and Speech-Language Pathology described rule updates that add speech-language pathology assistants to the rules, ease continuing education requirements for out-of-state applicants, expand temporary licensure, and clarify supervision standards. The State Electrical Board reviewed numerous code updates, including changes to electrical and fire alarm standards, receptacle labeling, countertop receptacles, and a major new conveyance/elevator inspection program added by the Legislature; the board said it is preparing to begin inspections by August 1.
The Industrial Commission’s Geological Survey Division presented new rules implementing House Bill 1459 on critical minerals in coal-bearing formations, including permit, reporting, confidentiality, and royalty-related provisions. The committee asked about confidentiality of exploration data and drilling depth. The Public Employees Retirement System outlined rule changes implementing several bills affecting defined benefit, public safety, defined contribution, insurance, deferred compensation, and retiree health credit programs, and noted possible future proposals to add state EMS or create a LOSAP-style plan. The Department of Health and Human Services presented substance use disorder voucher rules implementing House Bill 1012, including allowing individuals to apply directly and setting reimbursement procedures; the rules were expected to have a $250,000 general fund impact already included in the budget.
The longest discussion involved the Gaming Commission rules. Members questioned whether the commission had authority to raise poker tournament buy-ins from $300 to $1,500, viewing it as an expansion of gaming rather than a mere clarification. After debate, the committee voted to void that specific rule section for lack of statutory authority. The rest of the gaming rules covered higher raffle limits from House Bill 1192, the change from “bar” to “alcoholic beverage establishment,” veterans’ organization proceeds, credit ticket voucher kiosks, online raffles, and advertising restrictions; the presenter said several public comments led to revisions or withdrawals of proposed language. The meeting ended with discussion of upcoming Ethics Commission travel-reporting rules and scheduling the next committee meeting in September.
CA
California 2025-2026 Regular Session
Assembly Budget Subcommittee No. 3 on Education Finance Mar 5th, 2025
Transcript Highlights:
- Proposed expenditures that are in the proposed budget, of which $4.4 billion are ongoing, but $3.4 billion
- Two additional notes here: one is that the Governor's proposal The proposal would eliminate the deferral
- We think overall this is a reasonable proposal.
- I think as proposed in current form, that proposal is unfair.
- Proposed $1.8 billion for the Student Support Block Grant.
CA
California 2025-2026 Regular Session
Senate Budget and Fiscal Review Subcommittee No. 3 on Health and Human Services May 28th, 2026
Transcript Highlights:
- We're in strong support of the Senate proposal on Bring Californians Home.
- I just want to give a big thank you to the subcommittee for the proposal to delay the proposed Proposition
- Also to delay the proposed Proposition 56 cuts.
- We also appreciate the committee's rejection of the proposed rate cuts.
- We hope to see it in the final Senate proposal.
Summary:
The Senate Budget Subcommittee No. 3 on Human Services held its final hearing on the budget, with the chair framing the Senate’s plan as a counterproposal that rejected major cuts and preserved revenues. Public comment was overwhelmingly supportive of the subcommittee’s actions, with advocates, counties, providers, and community groups thanking members for rejecting or delaying proposed cuts to Medi-Cal asset limits, immigrant coverage and premiums, IHSS, PACE, APS, behavioral health advocacy and innovation grants, mobile crisis services, and certain dental and provider payment reductions. Speakers also urged additional funding or trailer bill changes for county eligibility work, public hospitals, indigent care, CalFresh outreach and food benefits, child care slots and COLAs, legal services for immigrants, and long-term services and supports.
A major theme was the Senate’s “Be Home Soon” proposal, which many disability, aging, home care, and health care organizations praised as a way to shift care from institutions to home- and community-based settings. Testimony also supported restoring or maintaining funding for behavioral health programs, including 988/mobile crisis infrastructure, community advocacy contracts, and Title IV-E workforce funding. Several county and provider groups asked the committee to consider alternative proposals related to H.R. 1 impacts, Medi-Cal coverage losses, and county indigent care costs, while others requested continued work on public hospital support, CFAP expansion, and implementation details for child care and IHSS.
The subcommittee then took three votes on grouped budget items. The first consent block, covering a large set of items, passed 3-0. The second block passed 2-1, with Senator Grove voting no. The final block passed 3-0. The hearing concluded with the chair stating the subcommittee had done its part and adjourning the meeting.
MN
ND
North Dakota 2026 1st Special Session
Administrative Rules Committee Jun 11th, 2026 at 10:00 am
Administrative Rules Committee
MN
Minnesota 2025-2026 Regular Session
House Environment and Natural Resources Finance and Policy Committee 2/25/25
Environment and Natural Resources Finance and Policy
Transcript Highlights:
- The proposals are reviewed and evaluated by our members.
- The proposals are reviewed and evaluated by our members.
- The proposals are reviewed and evaluated by our members.
- hours beyond that working with proposers.
- <00:35:08.359>
I beyond that working with proposers and I beyond that working with proposers
VT
Transcript Highlights:
- First, in connection with the Senate proposals of amendment, the Senate's first proposal of amendment
- >
amendment Senate's third proposal of amendment Senate's third proposal of amendment would<00 - further proposals of amendment. further proposals of amendment.
- a further proposal today are proposing a further proposal of<00:57:55.040>
amendment <00:57:55.520 - House concur in the Senate proposal of amendment with further proposal of amendment thereto.
Summary:
The House opened with a devotional reading by Theo Novak, a student and Vermont Poetry Out Loud finalist, followed by several announcements, including a welcome for the guest speaker and a reminder about a freshman legislator gathering and the day’s corporate cup road closures. The House then postponed action for one legislative day on Senate Bill 208, relating to law enforcement identification; Senate Bill 212, relating to portable water supply and wastewater system connections; and House Bill 639, relating to genetic data privacy.
The main floor action centered on House Bill 648, banking, insurance, and securities. The Commerce and Economic Development Committee presented Senate amendments and its own further amendments, including clarifications to consumer reinvestment reporting and a proposal to extend and then effectively end the moratorium on new cryptocurrency kiosks in Vermont. The committee described extensive testimony and data on crypto kiosk fraud, money laundering, and consumer losses, and also added a new licensing framework for merchant cash advance providers. Ways and Means reported the fiscal impact would be very small. After a brief question about the $1 million exemption threshold for commercial financing, the House concurred in the Senate proposal of amendment with further amendment thereto.
The House also passed Senate Bill 243, distributing funds to the Vermont Language Justice Project, in concurrence with proposal of amendment. It then took up Senate Bill 198, regulating tobacco products and tobacco substitutes. The Commerce and Economic Development Committee described updates to the definition of tobacco substitutes, creation of a wholesale licensing system under the Department of Liquor and Lottery, tighter controls on online sales, and bans on deceptive products that resemble school supplies, food, smartphones, inhalers, or video games. The committee heard testimony from health, enforcement, industry, and advocacy witnesses and voted 11-0 in favor. Human Services then proposed a strike-all amendment to the committee report, with further consideration to continue.
CA
California 2025-2026 Regular Session
Senate Budget and Fiscal Review Committee Jun 15th, 2026
Budget and Fiscal Review
Transcript Highlights:
- Specifically, we do support rejecting the proposed draconian $2,000 asset limit proposal.
- We thank you for advancing the Be Home Soon, California proposal and the several revenue proposals.
- We thank you for advancing the Big Homesome California proposal and the several revenue proposals.
- Additionally, access supports the paid pregnancy disability leave proposal, but as currently proposed
- Additionally, access supports the paid pregnancy disability leave proposal, but as currently proposed
Summary:
The Senate Budget and Fiscal Review Committee heard AB 109, the Budget Act of 2026, and related discussion of the legislative budget agreement. Committee staff and the Department of Finance described a two-year balanced plan with about $253 billion in General Fund spending, roughly $5.5 billion in higher assumed revenues than the May Revision, and about $36.5 billion in combined reserves. They said the package preserves or expands funding for schools and community colleges, child care, IHSS, Medi-Cal-related county administration, housing and homelessness programs, public hospitals, courthouse construction, and some criminal justice and prison-closure savings, while delaying or modifying several prior health care reductions and some Medi-Cal changes.
Much of the member discussion focused on Medi-Cal, H.R. 1, and the impact on low-income and immigrant Californians. Several Democrats argued the budget protects vulnerable residents by delaying some cuts, funding county eligibility work, indigent care, public hospitals, and food banks, and rejecting the Governor’s IHSS cuts and asset-limit proposal. Republicans criticized the budget for assuming future revenues, relying on new taxes, and not doing enough to address the structural deficit or improve accountability. Members also raised concerns and support around homelessness funding, Prop. 36, judgeships and courthouse funding, transit and GGRF allocations, local journalism, Caltrans fleet spending, and a proposed “fair share” revenue measure that was not yet before the committee.
Public testimony was largely supportive of the budget’s health and human services provisions, especially the rejection of IHSS cuts and the asset-limit proposal, and the inclusion of funding for child care, sickle cell centers, domestic violence services, trauma recovery centers, distressed hospitals, county eligibility work, and transit programs. Some witnesses representing hospitals and health plans cautioned about the effects of moving certain Medi-Cal populations to fee-for-service and about proposed tax changes affecting health care providers. The chair said revenue trailer bills were still being finalized and would likely come back later in the week; the committee then moved to public comment, with the chair limiting speakers to about one minute each.
CA
California 2025-2026 Regular Session
Assembly Budget Committee Jun 15th, 2026
Transcript Highlights:
- The Governor proposed a 50% limit at the May Revision.
- Additionally, we thank you for rejecting the governor's proposals related to IHSS, including the proposed
- Proposals related to IHSS, including the proposed cost shift to counties. Thank you. Mr.
- We also thank you for the prison closure proposal.
- Also, thank you for advancing the Big Home Soon California proposal and the several revenue proposals
Summary:
The Assembly Budget Committee met to consider the 2026 Budget Act, which leaders said was the negotiated compromise with the Senate and was expected to move to the floor that evening. Opening remarks emphasized that the plan balances the budget over two years, reduces the structural deficit, and builds reserves, while also protecting core services in the face of federal cuts. Jason Sisney outlined the legislative budget framework and the likely floor bills, including AB 109, SB 110, SB 122, and SB 125. Department of Finance representative Eric Khali said the administration appreciated the two-year balanced approach and supported the modification in SB 122, while noting the package uses additional revenues and new spending to soften or reject some proposed cuts.
Most of the discussion focused on major spending areas. Members and subcommittee chairs highlighted protections and additions for health care and human services, including rejecting the proposed Medi-Cal asset limit change, delaying premium increases, restoring clinic and dental funding, supporting distressed hospitals and county indigent care, and expanding county eligibility staffing to handle H.R. 1-related workload. Education members described record or expanded support for TK-12 schools, child care, special education, community colleges, teacher recruitment, and higher education, including a change to extend Cal Grant eligibility to age 30 for some community college students. Housing and homelessness funding was increased for HAP, multifamily housing, and the low-income housing tax credit, while public safety members pointed to investments in victims’ services, restorative justice, and prison closure savings.
Several members also raised concerns or priorities tied to the budget deal. Some praised the package as a moral document that protects vulnerable Californians, immigrant communities, LGBTQ residents, seniors, and people with disabilities. Others noted unresolved issues, including the MCO tax’s impact on districts, the need for more support for local journalism, arts, biotech R&D incentives, transit and GGRF-related concerns, and the need for continued work on Prop. 98 and long-term fiscal resilience. The vice chair cautioned that despite the current progress, the state remains vulnerable to revenue volatility and warned that the budget should build more resilience against a possible downturn. No formal vote was taken in the portion provided, but the committee was preparing the budget package for floor action and final negotiations.
CA
California 2025-2026 Regular Session
Assembly Budget Subcommittee No. 4 on Climate Crisis, Resources, Energy, and Transportation Mar 12th, 2025
Transcript Highlights:
- So we are recommending rejecting this proposal.
- For example, why a narrower proposal wouldn't be adequate.
- So again, we're recommending rejecting the proposal.
- So typically what would happen is the Governor would propose proposals.
- This year's proposal demonstrates...
Summary:
The committee hearing focused heavily on CARB’s broad trailer bill request for regulatory fee authority. Finance and CARB argued the proposal would let CARB develop fees to recover reasonable costs for implementing and enforcing regulations, while the LAO recommended rejection because the authority was too broad, could apply to an entire division of code, and would delegate core legislative taxing/fee-setting power without enough guardrails. Members from both parties raised concerns about the breadth of the authority, accountability, affordability impacts, and whether the Legislature would be put in an up-or-down position after CARB had already developed regulations. CARB responded that fees would still go through a budget change proposal and legislative approval before collection, and cited existing examples such as transport refrigeration units and commercial harborcraft fees.
The committee then reviewed CARB’s request for permanent resources to implement SB 905 on carbon capture, utilization, storage, and carbon dioxide removal. CARB said the Legislature had previously authorized limited-term positions and funding, but it had struggled to recruit and retain staff with specialized regulatory and technical expertise, and that the work had included pre-rulemaking contracts, technology review, and permit-related preparation. Members questioned the pace of work, the use of limited-term positions, and whether additional permitting authority would be needed. CARB said it hoped to begin rulemaking later in the year if permanent resources were approved.
Members also discussed the cap-and-trade spending plan, noting lower-than-expected auction revenues but higher interest earnings, and the need to monitor the Greenhouse Gas Reduction Fund and possible May Revision changes. The committee then heard overviews of the zero-emission vehicle package, the Community Air Protection Program, demand-side grid support, and e-bike incentives. CARB described ongoing investments in community-based transportation equity, drayage trucks, harbor craft, and other clean technology demonstrations, while members pressed on affordability, program duplication, and whether enough funding was being directed to incentive programs. No formal votes were taken during the portion provided, and the chair repeatedly indicated that the hearing was intended to surface concerns for later budget negotiations.
MN
Transcript Highlights:
- And this just proposal on the budget.
- On line 53 is a proposal bianium.
- result of other changes in the proposal. result of other changes in the proposal.
- This would chair's proposal.
- <01:58:31.679>
in <01:58:31.840>the proposed to the proposed cuts in the proposed to
WA
Washington 2025-2026 Regular Session
Conference Committee SB 5167 2025-27 Operating Appropriations Apr 26th, 2025
Transcript Highlights:
- There are quite a few in the conference proposal.
- These were the same as was in the Senate proposal.
- These were the same as was in the Senate proposal.
- it's in the conference proposal.
- it's in the conference proposal.
Summary:
The conference committee met on Engrossed Substitute Senate Bill 5167, the state operating budget, and received a detailed staff briefing on the proposed conference report. Staff explained how to read the comparison documents, the four-year balanced-budget outlook, and the main resource assumptions, including use of the March 2025 revenue forecast, exclusion of the statutory 4.5% growth assumption, revenue legislation totaling about $8.7 billion, numerous fund transfers, and reversion assumptions. They also noted the proposal does not include a temporary salary reduction or furloughs.
The briefing highlighted major policy areas and their net five-year impacts, including increases for state and higher education employee compensation, K-12 education, long-term care and developmental disabilities, corrections, information technology, and other policy items. It also described net reductions in behavioral health, children/youth/families, higher education, natural resources, other human services, and health care/public health, with many of the changes tied to delayed programs, rate adjustments, fund shifts, and savings options from Governor Ferguson. The committee then heard member comments, with supporters emphasizing K-12 funding and fiscal responsibility, and Senator Gildon opposing the process and the closed-door nature of the budget development.
A motion was made and seconded to recommend adoption of the conference report and pass the bill. The roll call showed one member voting do not recommend, one member excused, and the remaining members recommending adoption. By vote of the committee, the conference report was adopted, and the committee adjourned.
MN
Transcript Highlights:
- proposals out just a couple weeks ago. proposals out just a couple weeks ago.
- Um, the DE funds this proposal at a slightly modified version of this proposal.
- in uh the proposal. in uh the proposal. Senator<01:12:42.480>
Rasmmanson. - was delayed one year for this proposal. was delayed one year for this proposal.
- fund that's proposed in the spreadsheet? fund that's proposed in the spreadsheet?
MN
Transcript Highlights:
- I'm here today to urge you to reconsider the proposed $1.2 billion in cuts to disability services proposed
- I'm here today to urge you to reconsider the proposed $1.2 billion in cuts to disability services proposed
- to Disability Services proposed by cuts to Disability Services proposed by the<00:09:25.120>
governor - <01:26:02.440>
any Workforce rather than proposing any Workforce rather than proposing any - direction this budget proposal direction this budget proposal contradicts<01:47:06.880>
the
VT
Transcript Highlights:
- <00:04:09.120>
of concur with the Senate's proposal of concur with the Senate's proposal of - The Senate's uh proposal of vote.
- This was approved by the proposals This was approved by the proposals amendment<00:21:14.799>
- proposal of amendment thereto.
- further proposal of amendment there too. further proposal of amendment there too.
Summary:
The House took up several Senate amendments and concurred in them after brief explanations from committee members. On House Bill 841, relating to miscellaneous animal welfare procedures, the House suspended rules, heard that the Senate had removed or revised several provisions — including a certified rabies vaccinator program, a fixed limit on breeding dogs, rescue-organization data reporting, and some advertising language — and then concurred 9-0-2 in committee and by voice vote. On House Bill 938, establishing the Vermont homelessness response continuum, members reviewed Senate changes clarifying funding eligibility, municipal grant applications, emergency assistance timing, fair-hearing procedures, rulemaking timelines, a unified housing voucher framework, and a shift of $500,000 from emergency hotel/motel spending to a Burlington day shelter; the House concurred after a question about the fiscal note was answered by noting the amount matched the governor’s budget and existing appropriations. The House also concurred in the Senate amendment to House Bill 941, which would have created a study committee on municipal regulation of agriculture, but the Senate struck that study-group language; the House committee supported concurrence 7-0-1, saying the underlying bill should move forward even without the study group.
The House then considered House Bill 957, approving amendments to the Williston charter. The committee explained that the town had voted to eliminate the office of listers and replace it with contracted professionally qualified assessors, with transitional language ending lister terms after passage or upon hiring an assessor; the committee recommended passage 9-0-2, the House ordered third reading, suspended rules to place the bill in all remaining stages, passed it, and voted to message it to the Senate forthwith. At the end of the session, the House noted two additional committee reports: Senate Bill 64 on optometrists was referred to Ways and Means, and Senate Bill 313 on career technical education was referred to Appropriations. The House then adjourned until May 22, 2026, at 10 a.m.
MA
Massachusetts 2025-2026 Regular Session
Joint Committee on Ways and Means Jun 21st, 2026 at 12:00 pm
Joint Committee on Ways and Means
Transcript Highlights:
- In addition to the $32.5 million, this proposal includes a $75 million proposal to add more than 3,000
- In addition to the $32.5 million, this proposal includes a $75 million proposal to add more than 3,000
- I'm sorry, and the proposal that was made in House 1?
- That has been, in fiscal year 26, proposed, rolled into the Chapter 90 proposal, where we're adding an
- House 1 proposal.
Summary:
The hearing focused on House Bill 55, the governor’s FY25 supplemental budget proposal to spend about $1.3 billion in surplus Fair Share revenue. House and Senate chairs framed the bill as a one-time opportunity to invest fairly in education and transportation, while also noting the need to protect the state’s long-term fiscal balance. Administration officials said the proposal should be considered alongside the FY26 budget and related bills, since the governor’s broader Fair Share plan aims for roughly an even split between education and transportation over time.
Secretary of Administration and Finance Matthew Gorzkowicz, Transportation Secretary Monica Tibbits-Nutt, and Education Secretary Patrick Tutwiler outlined the administration’s priorities. Transportation funding would go mainly to the MBTA and related reserves, including money for the Federal Transit Administration reserve, MBTA stabilization reserve, low-income fares, winter resilience, RTA workforce support, MassDOT workforce and project delivery, and micro-transit grants. Education funding would support universal preschool expansion, early education and care capacity, early literacy tutoring, adult basic education and ESOL, early college and career technical education, MyCAP expansion, and special education circuit breaker funding. The administration emphasized that many of these investments are one-time or multi-year measures designed to address current needs without creating unsustainable recurring costs.
Committee members raised concerns about regional equity, especially the large share of transportation money going to the MBTA versus regional transit authorities and rural areas. Several members asked for more detail on how the proposal would benefit Western Massachusetts and other non-MBTA regions, and whether micro-transit and Chapter 90-related investments would be sufficient. Education questions focused on special education reimbursement shortfalls, federal funding cuts to school districts, and how CTE and vocational investments would align students with workforce needs. The administration said it would provide additional data on MBTA versus RTA investment and explained that the special education circuit breaker and transportation reimbursement changes were intended to improve predictability and relief for districts.
After the administration panel, Jessica Tang of AFT Massachusetts testified in support of using Fair Share funds to protect public education amid federal uncertainty and cuts. She argued that schools are facing a fiscal cliff, that vulnerable students would be hit hardest by funding losses, and that the Fair Share revenue should be used to preserve services and support students’ needs.
CA
California 2025-2026 Regular Session
Assembly Budget Subcommittee No. 3 on Education Finance Feb 10th, 2026
Transcript Highlights:
- I think, obviously, given the uncertainty that's inherent in the proposal and the reason we're proposing
- The Governor's budget proposal does not propose, I think, specific withdrawal parameters.
- Around the proposal to withhold $5.6 billion.
- We have deep concerns with the precedent around the proposal to withhold $5.6 billion. around the proposal
- I wanted to touch base on this whole proposal.
Summary:
The Assembly Budget Subcommittee on Education Finance held its first hearing of the year on Proposition 98, focusing on the Governor’s budget estimates for the three-year budget window, the Public School System Stabilization Account (PSSA), and repayment of education deferrals. The Department of Finance said the minimum guarantee would rise by about $21.7 billion over the 2025 Budget Act, with increases in each year, full repayment of the existing settle-up obligation in 2024-25, a new $5.6 billion settle-up obligation proposed for 2025-26, and a higher guarantee in 2026-27. Finance also noted revised downward estimates for transitional kindergarten attendance and Los Angeles County property tax reimbursements, and said community colleges would be funded above the split because of enrollment growth.
The Legislative Analyst’s Office emphasized fiscal risk and volatility, warning that recent revenue gains are tied heavily to the stock market and tech sector and could reverse quickly. The LAO argued the Governor’s proposed $5.6 billion delay shifts risk into future years and recommended instead fully funding the current estimate, making a larger reserve deposit, considering advance payments or pension-related uses, and finding additional non-Prop 98 solutions to reduce the state’s structural deficit. On the reserve and deferral items, Finance described revised PSSA deposits and withdrawals that would leave about $4.1 billion in the reserve by 2026-27, and both Finance and the LAO supported paying off the remaining LCFF and SCFF deferrals as good fiscal practice.
Committee members questioned the size of the settle-up amount, the degree of revenue volatility, the use of the reserve, and the ongoing K-12/community college split. Finance said the proposal is meant to avoid overappropriation if revenues fall, while the LAO said a buffer of roughly $3.5 billion would address typical forecasting risk. Public commenters, including school boards, county offices of education, teachers, and advocacy groups, largely opposed the $5.6 billion withholding or settle-up delay, calling it a manipulation of Prop. 98 and urging full funding and more stable revenue solutions. Several speakers also urged dedicated funding for students experiencing homelessness. The hearing ended with no vote, and the chair announced that broader program discussions would occur in later hearings.