Transcript Highlights:

• We have been dealing with a lot of trauma that can be alleviated by allocating funds in the budget.
• The budget allocations the state provides to CDSS, such as One California, the Enhanced Services for
• So under the governor's budget, the total single allocation funding for 2024-25 is held to the Budget
• As a result, the governor's budget includes 1.6 billion for the single allocation in 2025-26 due to that
• This is why we need your continued support in funding the single allocation budget to ensure that we

Keywords: 988, house, all

Transcript Highlights:

• The proposed budget allocates $15 million for special pay adjustments for state attorneys, public defenders
• Finally, the proposed budget prioritizes court operations with $6.7 million allocated for court reporting
• The budget allocates $20 million for the Florida Keys and $195 million for the petroleum tank cleanup
• The budget allocates $250 million for the Rural and Family Lands Protection Program, $75 million for
• The budget allocates funds for the statewide law enforcement radio system and also transfers 22 positions

Keywords: 999, senate, all

Transcript Highlights:

• We have a budget that has no money allocated to affordable housing.
• We have a budget that has no money allocated to affordable housing and no money allocated to homelessness
• I'm speaking in support of the Bureau of Descendants of American Slavery, that budget allocation under
• And so I cannot underscore enough how important this budget allocation is for this historic Bureau.
• state budget.

Keywords: 987, senate, all

Summary: The subcommittee heard an overview of the Governor’s housing reorganization proposal and trailer bill language that would consolidate several affordable housing finance programs under the new Housing Development and Finance Committee (HDFC). Administration officials said the plan is intended to create a one-stop application and award process, reduce duplication, and pair state subsidy with private activity bonds and federal tax credits so projects can move from award to construction more quickly. The proposal would also shift some positions and reallocate portions of the Affordable Housing and Sustainable Communities program and other housing funds. The Legislative Analyst’s Office said the concept has merit but raised concerns about the proposed bond set-aside floor and recommended more flexibility and earlier reallocation of unused bonds. Several senators questioned the structure and, especially, the proposed changes to the climate-related ASIC program, arguing that it could weaken the program’s original transportation-and-housing integration and that the budget lacks enough direct funding for core housing production programs. The item was held open. The committee then received an update from the California Debt Limit Allocation Committee and the California Tax Credit Allocation Committee on federal tax credit changes and state housing finance tools. Staff explained that federal H.R. 1 increased the 9% low-income housing tax credit allocation and reduced the bond-financing threshold for the 4% credit from 50% to 25%, allowing California to finance many more projects. They reported that emergency regulations were adopted quickly to implement the new federal rules, resulting in awards for 195 projects and more than 25,000 units in the 4% program, while the 9% program funded 58 projects and nearly 3,000 units. Members discussed the importance of state enhanced low-income housing tax credits, with committee questions focused on how much additional leverage state credits provide and how they help fill remaining financing gaps. The final portion of the hearing focused on the Civil Rights Department’s response to federal civil rights policy changes and on three programs facing the end of limited-term funding: California vs. Hate, the Community Conflict Resolution Unit, and Investigations and Conciliation Enhancement. Director Kevin Kish said federal civil rights enforcement has been weakened by closed offices, shuttered programs, and reduced support for fair housing organizations, while CRD’s open caseload has grown from about 8,700 to more than 12,000 matters. He said the department is using overtime, triage, and process reengineering to manage the surge and to direct people to the right services. Senators expressed strong support for continuing the programs and concern that California is being asked to do more with less as federal protections erode. No votes were taken on the informational items, and the committee discussed the vote-only budget requests for CRD separately.

Transcript Highlights:

• Welcome to Assembly Budget Subcommittee No. 4.
• There is a handful of allocations that we have in a pending allocations plot.
• Budget allocations from you have really provided us to be able to really increase the pace and the scale
• budget proposes a balanced budget.
• Why would you not have the cap be higher, even if we allocate a budget at a lower amount?

Keywords: 988, house, all

Transcript Highlights:

• ’s Budget.
• In last year's budget?
• cycle versus the current budget cycle, which... ...budget cycle versus the current budget cycle, which
• been built into their budget.
• that's being allocated.

Keywords: 988, house, all

Summary: The committee first took up the May Revision update on Proposition 98 and the school rainy-day fund. The Department of Finance said the minimum guarantee rises by $6.4 billion over the Governor’s Budget across the three-year window, with lower average daily attendance projections offsetting some of the revenue gains. Finance also described a reduced $3.9 billion settle-up proposal, increased deposits into the Public School System Stabilization Account, and an ending reserve balance of about $10.3 billion. The LAO said the revenue and LCFF adjustments were reasonable, but urged the Legislature to be cautious about delaying settle-up payments and to consider more budget resiliency, including larger cushions or other tools to protect ongoing programs. Members then questioned the administration and LAO about the size of the settle-up, the rationale for the reserve deposit, declining enrollment, and how lower attendance is creating savings that can be redirected to other school priorities. The LAO said the May Revision’s mix of one-time and ongoing spending was generally reasonable but recommended keeping a strong cushion and considering alternatives such as advance payments or pension-related savings. Questions also focused on how the May Revision’s funding mix affects districts if revenues weaken, and on the treatment of special education, discretionary block grants, and paid family leave costs for LEAs and community colleges. The committee next heard the community colleges portion of the budget. Finance described a higher SCFF COLA, increased apportionment costs, a student support block grant, deferred maintenance, Common Cloud, Calbright, credit for prior learning, and a one-time adult learner demonstration project. The Chancellor’s Office supported the core investments but asked for more funding for enrollment growth, changes to the SCFF growth formula, and a COLA for Student Equity and Achievement. The LAO recommended funding the statutory COLA increase, noted a $52 million current-year apportionment shortfall not yet included in the May Revision, and suggested the Legislature could instead direct some funds to enrollment growth, categorical COLAs, or one-time uses. Members also clarified how COLA and hold-harmless rules apply to different community college districts. Finally, the committee reviewed the proposed state implementation of the federal Workforce Pell program. Finance proposed one-time funding for the Student Aid Commission and Cradle to Career data work, plus trailer bill changes to set up state approval of eligible programs. CSAC said the program is promising but highly complex, with new federal rules just released and significant data, regulatory, and systems work still needed; it said the state will not be ready by July 1 and that ongoing funding will likely be necessary. The LAO agreed that implementation will require careful trailer bill language and noted that ongoing administrative costs remain unresolved. Members asked about other states’ approaches and the practical effect on short-term workforce programs in California.

Transcript Highlights:

• Budget.
• cycle versus the current budget cycle, which... ...budget cycle versus the current budget cycle, which
• It's within, so you can stay within your budget, approved budget. Yes, correct.
• My question is, what is the budgeted amount total? ...budgeted amount total?
• that's being allocated.

Summary: The committee heard an overview of the May Revision’s Proposition 98 changes for K-12 and community colleges. The Department of Finance said the minimum guarantee rises by $6.4 billion over the Governor’s Budget across the three-year window, with higher guarantees in each year, full payment of the prior settle-up, and larger deposits into the school rainy-day fund. The LAO said the revenue and LCFF updates were reasonable, but urged caution about the settle-up approach and recommended using more of the available funding to protect ongoing programs and build budget resilience. Members focused heavily on the size of the proposed $3.9 billion settle-up, the $10.3 billion reserve deposit, declining K-12 enrollment, and how much of the new funding should be ongoing versus one-time. The committee then reviewed the community colleges portion of the budget. Finance described the May Revision’s higher SCFF COLA, additional funding for enrollment growth, a student support block grant, apprenticeship adjustments, and continued funding for deferred maintenance, Calbright, Common Cloud, and credit for prior learning. The Chancellor’s Office supported the core investments but asked for more funding for enrollment growth, changes to the growth formula, and a COLA for Student Equity and Achievement. The LAO recommended prioritizing the statutory COLA increase, noted that more than half of districts are already above current-year growth targets, and said the new adult learner demonstration project should be rejected because districts already have tools to support similar services. Members also discussed a $52 million current-year apportionment shortfall, which Finance said was discovered too late for the May Revision and would need to be addressed later. Finally, the committee took up the proposed implementation of the federal Workforce Pell program. Finance proposed one-time funding for the California Student Aid Commission and Cradle to Career to build eligibility and data systems, along with trailer bill changes to set up state approval processes. CSAC said the program is promising but highly complex, that California lacks the needed infrastructure, and that the state will need emergency regulations, data linkages, and ongoing funding beyond the one-time proposal. The LAO agreed that some initial funding is needed but warned that the amounts and ongoing costs remain uncertain and that the Legislature should carefully draft the trailer bill language. Members asked about timing, other states’ actions, and how the state would ensure the program is ready for students and institutions.

Transcript Highlights:

• I want to welcome everyone to the Budget Committee.
• So, our budget is PCB BUC 2601.
• Our total budget is a 2% increase over the current year budget.
• In addition to the base student allocation increase, there are other increases in the FEFP in the budget
• What has been allocated this year versus what was allocated last year for that program?

Transcript Highlights:

• The proposed budget prioritizes court operations with $6.7 million allocated for court reporting. case
• Scholarship funding allocation, is this a new budget? Thank you for the question before...
• Although it is not in this year's budget, the $30 million we had initially allocated will be available
• We are increasing our Bay student allocation by 1.5 percent overall in this current budget.
• Through his budget.

Bills: SJR4, SJR40, SJR81, SCR37, SCR39, SB22, SB32, SB33, SB36, SB38, SB95, SB209, SB249, SB311, SB326, SB365, SB458, SB609, SB660, SB664, SB693, SB732, SB745, SB760, SB762, SB779, SB783, SB785, SB868, SB871, SB883, SB921, SB955, SB993, SB996, SB1008, SB1057, SB1067, SB1151, SB1171, SB1210, SB1255, SB1265, SB1267, SB1271, SB1307, SB1313, SB1316, SB1318, SB1321, SB1332, SB1365, SB1426, SB1470, SB1484, SB1494, SB1559, SB1592, SB1596, SB1598, SB1637, SB1677, SB1706, SB1758, SB1762, SB1786, SB1809, SB1818, SB1822, SB1841, SB1871, SB1967, SB2064, SB2077, SB2112, SB2148, SB2320, SB2406, SB2407, SJR36, SJR81, SJR50, SJR4, SJR40, SJR27, SCR22, SCR12, SCR39, SCR38, SCR37, SB921, SB609, SB660, SB765, SB62, SB666, SB888, SB687, SB847, SB1248, SB504, SB305, SB296, SB284, SB304, SB1023, SB204, SB670, SB850, SB854, SB413, SB1346, SB1033, SB1220, SB1073, SB810, SB1539, SB447, SB1119, SB1505, SB1215, SB1302, SB583, SB673, SB681, SB1172, SB955, SB957, SB541, SB266, SB1415, SB53, SB1352, SB785, SB1450, SB1502, SB1566, SB1062, SB711, SB746, SB1404, SB1448, SB507, SB1026, SB1349, SB1355, SB1433, SB1434, SB1596, SB1403, SB667, SB1059, SB1567, SB310, SB311, SB505, SB1210, SB1470, SB264, SB1358, SB1364, SB1569, SB1376, SB1228, SB519, SB1350, SB462, SB827, SB1585, SB1484, SB1273, SB927, SB1227, SB1229, SB1353, SB1464, SB1709, SB1729, SB1733, SB1744, SB1772, SB1841, SB1008, SB2016, SB1173, SB1163, SB996, SB1370, SB1321, SB1101, SB860, SB993, SB693, SB1537, SB1332, SB1307, SB963, SB493, SB984, SB619, SB1122, SB455, SB522, SB1057, SB1239, SB1254, SB1255, SB1259, SB1341, SB1877, SB1277, SB32, SB732, SB731, SB268, SB1822, SB1589, SB397, SB1058, SB1267, SB2112, SB1930, SB532, SB508, SB292, SB291, SB901, SB1333, SB1436, SB1494, SB964, SB779, SB1378, SB2312, SB1719, SB287, SB2143, SB1245, SB261, SB1247, SB2406, SB2407, SB1882, SB618, SB38, SB393, SB1371, SB1365, SB2243, SB2226, SB2039, SB1919, SB1895, SB1598, SB1493, SB1810, SB1791, SB1706, SB1644, SB1238, SB783, SB458, SB22, SB651, SB897, SB1809, SB1080, SB745, SB826, SB989, SB1320, SB1437, SB2320, SB2289, SB1171, SB664, SB1637, SB2064, SB868, SB1079, SB1243, SB1504, SB1851, SB1879, SB2237, SB1257, SB2034, SB1522, SB883, SB249, SB1318, SB1151, SB596, SB1191, SB226, SB570, SB870, SB991, SB60, SB365, SB1067, SB1786, SB326, SB1401, SB1592, SB1728, SB1265, SB586, SB529, SB217, SB209, SB1923, SB1559, SB1839, SB387, SB1874, SB1872, SB1873, SB1921, SB1883, SB1677, SB95, SB1620, SB1838, SB2024, SB2429, SB1999, SB511, SB2309, SB2166, SB871, SB510, SB33, SB2420, SB1860, SB1541, SB1316, SB1314, SB1313, SB1426, SB1398, SB1869, SB1750, SB1871, SB36, SB855, SB1233, SB760, SB2425, SB2037, SB1758, SB1759, SB2365, SB1924, SB762, SB1271, SB1818, SB605, SB1405, SB1762, SB1968, SB1977, SB2077, SB2148, SB2321, SB1967, SB1662, SB1663, SB2124, SB2204, SB1855, SB863, SB37, SJR39, SCR1, SCR27, SCR32, SCR42, SCR6, SB2232, SB819, SB2078, SB2252, SB1962, SB2253, SB825, SB1577, SB1184, SB2018, SB2206, SB1901, SB1030, SB2368, SB1963, SB1960, SB1643, SB1625, SB1299, SB841, SB668, SB584, SB231, SB2411, SB1085, SB2431, SB2231, SB1490, SB530, SB34, SB1261, SJR81, SB32, SB458, SB664, SB693, SB868, SB1008, SB1267, SB1307, SB1321, SB1484, SB1637, SB1809, SB1822, SB2064, SB2112, SB2320, SB2406, SB2407, SB609, SB660, SB921, SB779, SB1470, SR388, SB3042, SB440, SB2876, SB3042, SB440, SB2876

Keywords: economic stabilization fund, state finance, constitutional amendment, budget management, financial security, emergency powers, legislative authority, governor powers, disaster management, tax exemption, ad valorem, tangible personal property, income production, SCR 37, Senate Concurrent Resolution, Panama Canal, Texas ports, port infrastructure, maritime trade, shipping lanes

Transcript Highlights:

• to pass any ordinance to—there's a long list of new responsibilities in their rates and fees and budgets
• , creation, adoption, implementation of capital budgets and capital improvement plan, board policies
• Are you aware that in the city of New Orleans' most recent operating budget, they've allocated about
• Representative Green: So in that budget, I would agree with you that it's there, but also even on the
• Hey, what were you explaining when you said the budgets were like 20 million and 17 million?

Bills: HR192, HR193, HR194, HCR80, HCR81, HCR82, HCR83, HCR84, HCR85, HR188, HR189, HR190, HR191, SB134, SB140, SB281, SB331, SB384, SB389, SB415, SB451, SB458, SB479, SB504, SB523, HR38, HR96, HR160, HCR31, HCR61, SCR19, HB316, HB549, HB578, HB646, HB748, HB798, HB824, HB988, HB989, HB1001, HB1032, HB1081, HB1108, HB1129, HB1140, HB1157, HB1186, HB1192, HB1195, HB1198, HB1222, HB1244, SB73, SB89, SB128, SB149, SB191, SB196, SB238, SB318, SB340, HB225, HR1, HR17, HCR5, HCR4, HCR47, HCR32, HB362, HB893, HB990, HB1007, HB1153, HB1243, HB12, HB42, HB205, HB222, HB267, HB324, HB325, HB350, HB478, HB610, HB617, HB745, HB749, HB752, HB797, HB807, HB821, HB896, HB979, HB992, HB1000, HB1024, HB1050, HB1166, HB1172, HB1173, HB1207, HB1218, HB1223, SB162, SB349, SB350, SB382, SB383, SB127, SB244, SB256, HB911, HB306, HB366, HB1161, HB1230, HB59, HB481, HB772, HB897, HB1003, HB1008, HB1112, HB1180, HB1189, HB181, HB1118, HB901, HR20, HR74, HB284, HB393, HB458, HB459, HB525, HB577, HB582, HB605, HB614, HB682, HB733, HB773, HB864, HB996, HB1035, HB1058, HB1082, HB1113, HB1234, HB1240

Keywords: ACOG, maternal health, healthcare professionals, patient-physician relationship, obstetrics, gynecology, condolences, military service, veteran, community, memorial, visual acuity, student health, de-identified data, longitudinal analysis, education policy, property rights, carbon dioxide sequestration, expropriation, Landowner Bill of Rights

Bills: HR192, HR193, HR194, HCR80, HCR81, HCR82, HCR83, HCR84, HCR85, HR188, HR189, HR190, HR191, SB134, SB140, SB281, SB331, SB384, SB389, SB415, SB451, SB458, SB479, SB504, SB523, HR38, HR96, HR160, HCR31, HCR61, SCR19, HB316, HB549, HB578, HB646, HB748, HB798, HB824, HB988, HB989, HB1001, HB1032, HB1081, HB1108, HB1129, HB1140, HB1157, HB1186, HB1192, HB1195, HB1198, HB1222, HB1244, SB73, SB89, SB128, SB149, SB191, SB196, SB238, SB318, SB340, HB225, HR1, HR17, HCR5, HCR4, HCR47, HCR32, HB362, HB893, HB990, HB1007, HB1153, HB1243, HB12, HB42, HB205, HB222, HB267, HB324, HB325, HB350, HB478, HB610, HB617, HB745, HB749, HB752, HB797, HB807, HB821, HB896, HB979, HB992, HB1000, HB1024, HB1050, HB1166, HB1172, HB1173, HB1207, HB1218, HB1223, SB162, SB349, SB350, SB382, SB383, SB127, SB244, SB256, HB911, HB306, HB366, HB1161, HB1230, HB59, HB481, HB772, HB897, HB1003, HB1008, HB1112, HB1180, HB1189, HB181, HB1118, HB901, HR20, HR74, HB284, HB393, HB458, HB459, HB525, HB577, HB582, HB605, HB614, HB682, HB733, HB773, HB864, HB996, HB1035, HB1058, HB1082, HB1113, HB1234, HB1240

Keywords: ACOG, maternal health, healthcare professionals, patient-physician relationship, obstetrics, gynecology, condolences, military service, veteran, community, memorial, visual acuity, student health, de-identified data, longitudinal analysis, education policy, property rights, carbon dioxide sequestration, expropriation, Landowner Bill of Rights

Summary: The House convened with a quorum, opened in prayer, and adopted the journal. Members received messages from the Senate on several House bills and Senate bills, and a number of House resolutions were introduced or laid over. The chamber also suspended rules to allow committees to continue meeting while the House was in session. Several local and ceremonial resolutions were taken up, including measures on public health data, carbon sequestration property rights, declining school enrollment, and commendations and condolences. The floor then considered a series of local bills and Senate bills, many of which passed with little or no opposition. Among the House bills approved were measures creating or adjusting local districts and utility-related authorities in Orleans and Jefferson parishes, including bills on the Regency Park Town Home Crime Prevention Security District, Sewage and Water Board procurement and lien authority, the Foulberg-New neighborhood improvement district, and temporary parish burn bans. The House also passed bills on broadband cable price notices, state finance limits, toll exemptions for school board-owned leased vehicles, prestige license plates, and a brain injury designation on driver’s licenses. Senate bills passed included measures on workers’ compensation evidence rules, recreation of the Department of Agriculture and Forestry, a soybean grain research board name change, incumbent worker training, interdict estate planning, and recreational alligator hunting. The most extensive debate centered on Senate Bill 256, which would consolidate Orleans Parish’s separate civil and criminal clerk of court offices into a single Orleans clerk. Supporters argued the change would align Orleans with the rest of the state, improve efficiency, and reduce costs, while preserving employees and services. Opponents raised concerns about the timing, the lack of broader legislative and public involvement, the impact on the recently elected criminal clerk, and possible disruption to court operations and constitutional rights. After lengthy questioning, the bill passed 89-8. The House also heard a personal privilege statement recognizing a school choir visiting the Capitol and later continued with additional Senate bills, including one on workers’ compensation medical review evidence and another on the Department of Agriculture and Forestry.

Transcript Highlights:

• Good afternoon and welcome to your favorite budget committee. Budget Sub 5.
• We have to have a little fun, budget friends. We have to have a little fun, budget friends.
• allocation.
• allocation.
• full allocation, and then the region that has its allocation is also still in play.

Keywords: 988, house, all

Summary: The committee heard a series of May Revision budget items, beginning with the State Controller’s Office. SCO described requests for Fiscal Book of Record stabilization, payroll system implementation, ACFR reporting support, and unclaimed property outreach funding. Members focused on the Fiscal system’s July go-live, the improved timeliness of the ACFR, and the unclaimed property program’s roughly $15 billion balance and outreach efforts. The Department of Finance and LAO raised no major concerns, and the item was closed after discussion of how the new outreach funding would be used. The committee then considered several revenue proposals. Finance presented a proposal to tax pre-written digital software and SaaS, with estimated General Fund gains of $450 million in 2026-27 and $900 million ongoing; LAO suggested broader digital tax changes and a business-use exemption, while industry groups opposed the measure as a tax on essential digital tools. CDTFA also presented an administrative request tied to the software tax, and later a $10 million budget reduction reflecting lower operational needs. The committee then heard a federal conformity proposal for new children’s tax-deferred accounts, which LAO supported, and a proposal to cut the first-year LLC/LP minimum tax from $800 to $400, which Finance said would aid small business formation but LAO argued was poorly targeted and would reduce revenue. Another major item was a permanent business tax credit limitation beginning in 2027, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability. Finance said it would raise about $850 million in 2026-27 and more in later years, while LAO noted it would mainly affect large firms using the R&D credit and could also touch California Competes and other programs. Public testimony split sharply between business groups opposing the cap and advocates supporting it as a progressive revenue measure. The committee also heard FTB’s CalFile realignment proposal, which would retain a smaller staff to continue improving the free filing system and return most of the prior funding to the General Fund. The hearing concluded with the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which brings in about $221,000 to $266,000 annually for arts grants and teacher stipends. Members and advocates supported the item but also urged larger arts funding, including the Performing Arts Equitable Payroll Fund. The Governor’s Office of Business and Economic Development then presented proposals for the California Civic Media Program, CA RISE reappropriation, and a reversion of unused Chips for America facility funds; LAO supported the latter two but was cautious about new civic media spending. Members raised concerns about the civic media program’s scope, including the exclusion of broadcast and the lack of a specific ethnic media set-aside, while GoBiz said funds would begin going out in the fall if approved.

Transcript Highlights:

• Is there a way to increase that allocation, obviously not for this budget, but for the next budget cycle
• Representative Campbell, in our budget, we did allocate... Representative Mondradi.
• Representative Campbell, in our budget, we did allocate, I could not tell you the precise final number
• Representative Campbell, in our budget, we did allocate Thank you. Mr.
• Speaker, Representative Campbell, in our budget, we did allocate, I could not tell you the precise final

Summary: The House met on the final day of session, swore in Representatives Boyles and Hodgers, and observed a moment of silence for the Minnesota House Speaker Melissa Hortman and her husband, as well as for Representative Rosenwald’s father. The chamber then moved into final budget work, with leaders outlining the plan to take up H.J.R. 5019, HB 7031, HB 5017, HB 5015, and then the general appropriations act once the Senate transmitted it. H.J.R. 5019, a proposed constitutional amendment to expand the budget stabilization fund, was explained and amended to raise the rainy day fund cap, require annual deposits, and allow withdrawals for critical state needs by a two-thirds vote; it passed 100-1. The House then adopted the conference report on HB 7031, the tax package. The bill repeals the business rent tax and aviation fuel tax, delays the natural gas fuel tax, creates or expands several sales tax holidays and exemptions, including permanent exemptions for disaster-preparedness items, hunting/fishing/camping items, and ammunition and firearms-related purchases, and makes changes to property, corporate income, local tax, and economic development provisions. Members debated the removal of recurring housing trust fund and transit-related revenue streams, the new ammunition exemption, and the data center tax changes; supporters argued the package reduces taxes and preserves annual budget flexibility, while opponents raised concerns about housing, transportation, and gun violence. The conference report passed 93-7. HB 5017, creating a debt reduction program funded by a recurring transfer to retire state bonds early, passed unanimously. HB 5015, the state group insurance conforming bill, which directs DMS to develop a formulary management plan and codifies the administrative health insurance assessment, also passed. The House then began explanation and questions on the fiscal year 2025-26 general appropriations act, described as a $115.1 billion budget that is down $3.8 billion from the current year and includes more than $12 billion in reserves. Subcommittee chairs summarized major spending areas, including pre-K-12 funding increases, health care funding for Medicaid, KidCare, nursing homes, opioid treatment, and mental health, transportation and economic development funding, environmental and water projects, higher education, state administration, justice, and information technology. Questions focused on school vouchers, inflationary pressures on school districts, and the adequacy of funding for housing, transportation, and other priorities.

Transcript Highlights:

• The budget also prioritizes modernization and operational efficiency, allocating $228 million for 44
• Is the scholarship funding allocation a new budget line? Senator Burgess, you are recognized.
• And so although it's not in this year's budget, that $30 million that we initially allocated is going
• How is the base student allocation determined in this budget?
• We are increasing our base student allocation by 1.5% overall in this current budget.

Summary: The Senate opened with prayer, the Pledge of Allegiance, and several gallery introductions before taking up Committee Substitute for Senate Bill 168, the Tristan Murphy Act, on mental health. Senator Bradley explained that the bill is intended to divert clinically appropriate defendants with mental illness from jail to treatment, create pretrial mental health diversion programs, expand grant uses for mental health and substance abuse reinvestment, require evaluations and treatment follow-up in certain probation and prison settings, add Hillsborough County to a forensic hospital diversion pilot, and establish a Florida Behavioral Health Data Repository. Senators from both parties spoke in support, emphasizing treatment over incarceration, public safety, and the Murphy family’s role in the bill. The Senate passed the bill 37-0 and then recorded 37 co-sponsors. The chamber then moved into presentations on SB 2500, the 2025-26 General Appropriations Act. Chair Hooper said the Senate budget totals $117.4 billion, reduces overall spending from the prior year, maintains reserves, keeps employee health contributions level, and includes major investments in water quality, transportation, education infrastructure, and nearly $1 billion in education capital outlay. Committee chairs outlined their portions of the budget, including increased funding for K-12 schools and scholarships, higher education workforce programs, Medicaid and health services, corrections and courts, transportation and housing, and environmental restoration such as Everglades and water quality projects. Members then asked extensive questions, especially about education funding, school choice, AP/IB and accelerated programs, the Family Empowerment Scholarship, and the FEFP calculations. Senator Burgess repeatedly explained that scholarship funding is being moved “below the line” to improve tracking and that the Senate position is to preserve funding while giving districts more flexibility. Senators also questioned the APD wait list for disability services, opioid settlement spending, arts funding, the My Safe Florida Home condo pilot, and proposed IT and agency restructuring. Several chairs said some issues would be resolved in conference, and no final vote on the budget was taken in the portion provided.

Transcript Highlights:

• recalculation of the cost allocations recalculation of the cost allocations performed<00:58:08.400
• <00:58:53.359> but we want to do proper cost allocation but we want to do proper cost allocation
• Costs that were allocated using one method were found to be allocated correctly, and they were able to
• Costs that were allocated using one method were found to be allocated correctly, and they were able to
• particular the the one cost allocation particular the the one cost allocation one<01:20:41.719><

Keywords: 928, house, all

Summary: The Fiscal Committee met on January 30, 2025, and first organized itself by electing Senator Jim Gray as vice chair, electing Representative F as clerk, appointing Michael Caine as legislative budget assistant, and adopting the committee’s rules and procedures. The committee also adopted an amendment to the rules allowing audits to be automatically released to the public once placed on the Fiscal Committee agenda, with members discussing that the change would improve transparency and reduce paper handling. The minutes from the November 15, 2024 meeting were approved, with members who were absent abstaining. The committee then worked through a consent calendar and several individual items. It removed or noted withdrawals on a few items, including item 25004 for further discussion, item 25016 withdrawn by the Department of Education, item 257 removed by Representative F, and item 25001 removed under Tab 4. Item 25004, concerning the newborn screening program, prompted testimony from the Department of Health and Human Services explaining that the program is mandatory with an opt-out provision; officials said 99.2% of newborns were screened in 2023, meaning the opt-out rate was under 1%. The committee also approved item 25007, related to DHHS community health workers and telework policy, after hearing that the workers are not placed in schools and that DHHS follows statewide telework policy. On the regular calendar, the committee approved a Department of Administrative Services request to extend the release date for fiscal year 2024 numbers to March 31, and approved a Department of Fish and Game item. It also approved winter maintenance funding for the Department of Transportation after hearing that the $5.7 million request might not last through the winter if additional storms occur; DOT said even a small storm can cost more than $1 million and that crews are dispatched based on road conditions and supervisory judgment. The committee then approved items for the Judicial Council and the Office of Legislative Budget Assistant. The final discussion focused on the Health and Human Services dashboard and the Youth Development Center claims. DHHS acknowledged a data error in the APS client line and said Community Mental Health Center caseload data is still not fully accurate because two centers are undergoing EHR conversions. Members also asked about the low census at the Sununu Youth Development Center and about the process for managing future claims related to the YDC settlement fund. Witnesses from the Attorney General’s office said the fund is handled through a unique arrangement involving DOJ appropriations and judicial branch staff, that current judicial budget cuts are not yet affecting the litigation pace, and that the average resolution so far has been about $500,000, though future claims may vary. No votes were taken on the discussion items beyond the approvals noted above.

Transcript Highlights:

• Being a budget sub chair, it's important to be there for the budget updates.
• budget.
• Proposition 4 allocates $15 million.
• Planning will begin in the budget year with project awards and budget year plus one.
• When you think about it from a budget act or a budget galley perspective, what we're proposing is that

Keywords: 988, house, all

Transcript Highlights:

• Again, we don't base our budget off of CPI or cost of living, and the base allocation increased by $85
• Again, we don't base our budget off of CPI or cost of living, and the base allocation increased by $85
• Again, we don't base our budget off of CPI or cost of living, and the base allocation increased by $85
• Again, we don't base our budget off of CPI or cost of living and the base allocation increased by $85
• What is the increase from last year's allocation to this year's allocation?

Summary: The House convened with prayer, a moment of silence for former Senator Donnell C. Childers, the Pledge of Allegiance, and recognition of Officer Antonio Richardson as law enforcement officer of the day. A quorum was announced, the journal was approved, and the Speaker said the chamber would take up 11 budget conference reports, with debate and final votes on each report. The first report considered was HB 7031E, the tax package, followed by HB 501E, the state budget appropriations bill. On HB 7031E, Chair Duggan explained that the conference report included a range of tax reductions and tax-related changes, including sales tax holidays, property tax and homestead-related provisions, reductions in certain taxes and fees, and new exemptions or administrative clarifications. He said the package also added items such as sales tax relief for certain university construction projects, a tennis admissions exemption, and changes to agricultural property tax treatment, and that the amendment reduced state and local tax revenues by $272.2 million. Members questioned the bill about the child care tax credit reduction from three years to one, the homestead exemption provision for certain diplomats and foreign service personnel, the absence of gas tax relief and combined reporting, and the inclusion of firearm accessories and tennis tickets in sales tax holidays. After structured debate, the House adopted the conference report and passed HB 7031E by a vote of 88-11. The House then began the conference report on HB 501E, the $114.5 billion budget for fiscal year 2026-2027, which was described as below the prior year’s spending level and leaving more than $14 billion in reserves. Subcommittee chairs outlined major allocations across education, higher education, IT, health care, transportation and economic development, justice, state administration, and agriculture/natural resources. Highlights included increased FEFP funding and veteran teacher raises, full funding for Bright Futures, major IT modernization projects, Medicaid and behavioral health funding, transportation and local infrastructure spending, correctional and law enforcement investments, fire station and emergency response funding, and large environmental and water-quality appropriations. Members asked detailed questions about school voucher fraud oversight, scholarship funding, teacher raises, preeminence funding, ADAP changes, SNAP data tools and error rates, Medicaid rate changes, prison wastewater monitoring, and other budget items, but the transcript ends during the budget questions before final action on HB 501E is shown.

Transcript Highlights:

• Good afternoon and welcome to your favorite budget committee. Budget Sub 5.
• We have to have a little fun budget friends. We have to have a little fun, budget friends.
• restore structural balance in the budget.
• So for a project to receive a 4% tax credit allocation, they also need to receive a SIDLAC bond allocation
• full allocation, and then the region that has its allocation is also still in the play.

Summary: The committee opened with the State Controller’s Office May Revision requests, including funding for Fiscal book-of-record stabilization, a Broadcom IDMS licensing adjustment, the California State Payroll System, ACFR reporting automation, and $3 million for unclaimed property outreach. Testimony emphasized progress on Fiscal becoming the state’s accounting book of record in July, faster ACFR publication, and the move to electronic unclaimed property claims. Members asked about the size of the unclaimed property fund and how quickly money is transferred to the General Fund; the Controller’s office said about $15 billion is held, with most excess transferred regularly, and the LAO noted the fund is the General Fund’s fourth-largest revenue source. No concerns were raised by Finance or the LAO, and the item was closed after no public comment. The committee then heard the administration’s proposal to tax prewritten digital software and software-as-a-service, with Finance saying it would modernize sales tax treatment and raise an estimated $450 million General Fund and $560 million local revenue in 2026-27. The LAO supported modernizing the tax but suggested broader digital goods coverage and a business-use exemption; industry and taxpayer groups opposed the proposal, warning of higher costs for consumers and businesses. Members also heard CDTFA’s administrative request tied to the proposal, plus a separate CDTFA budget reduction reflecting lower operational needs; that reduction was presented as a savings item and drew positive reactions. Next, the committee considered federal conformity for “Trump accounts,” which would align California tax treatment with federal rules for tax-deferred children’s accounts and avoid tracking burdens for families. The LAO recommended approval, and the item drew no opposition. The committee also heard a proposal to cut the first-year $800 annual business tax to $400 for LLCs, LPs, and LLPs; Finance argued it would lower startup costs and encourage new business formation, while the LAO said the benefit was not well targeted and could subsidize entities that would form anyway. Members discussed the policy tradeoff, and public commenters split between support for small business relief and concern about revenue loss. The final major revenue item was a permanent business tax credit limitation, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability, while excluding the low-income housing tax credit and personal income tax credits. Finance said it would raise significant revenue from large profitable corporations, and the LAO said it was a reasonable option but noted it would mainly affect the R&D credit and could have future implications for programs like California Competes. Public testimony was sharply divided, with business groups opposing the cap and anti-poverty advocates supporting it as a way to recapture revenue. The committee also heard FTB’s CalFile realignment request, which would return most of the direct-file-related resources to the General Fund while retaining a smaller staff to improve CalFile, and the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which members and advocates supported despite relatively modest annual donations. The hearing continued with GoBiz proposals on civic media funding, CA RISE reappropriation, and a semiconductor facility reversion, with the LAO supporting the latter two and members raising questions about the civic media program’s scope, outreach, and inclusion of broadcast and ethnic media.

Transcript Highlights:

• $7.4 million was the budget allocation, and the contract with Baby2Baby was $6.2 million.
• And those $100 million are on top of the $20 million that is being allocated in the budget for the Commission
• budget was a balanced budget.
• budget was a balanced budget.
• We urge you to make a one-time allocation for $8 million in the budget to ensure that we can continue

Keywords: 987, senate, all

Summary: The hearing opened with Department of Finance and Legislative Analyst’s Office remarks on the May Revision, which both described efforts to reduce large out-year operating deficits through a mix of revenue increases, spending reductions, and reserve use. Finance said the May Revision more than halves projected deficits in later years, while LAO stressed that revenues are at unprecedented levels yet the state still faces a significant structural deficit and is drawing down reserves; LAO urged maintaining at least the administration’s level of budget solutions and adding to reserves rather than new ongoing commitments. The chair echoed concern about cuts to vulnerable populations and noted the tension between service reductions and requests for additional administrative positions. The committee then heard a series of California Health and Human Services and HCAI proposals, including additional legal support for CalHHS to respond to federal HR1 changes; a net-zero transfer of positions for a centralized eligibility/data-sharing platform; 988 crisis line implementation funding and continued work with the Trevor Project to train crisis centers to better serve LGBTQ youth; EMS data system maintenance funding; HCAI implementation of AB 1312 hospital charity care screening; SB 660 data exchange framework funding; CalRx biosimilar insulin reappropriation; and a diaper access initiative that would provide free diapers to newborns in participating hospitals and support a future direct-to-consumer purchasing option. Members questioned the diaper program’s universal design, the use of a Public Contract Code exemption, and the selection of Baby2Baby, with the chair expressing concern about optics and the lack of an income threshold. The committee also discussed distressed hospital funding, with HCAI requesting up to $50 million for another round of grants to hospitals in immediate financial distress. HCAI said it receives annual and quarterly financial reports but the data lag limits real-time monitoring, and the LAO recommended stronger program parameters and turnaround plans. Members argued the repeated need for distressed hospital aid reflects a structural problem, not a short-term gap, and raised broader concerns about hospital reimbursement and patient flow. Other items included reverting $19.6 million in unused opioid settlement funds from HCAI to DHCS for General Fund offset, and a Rural Health Transformation Program request to increase HCAI spending authority to cover the full federal award. Later, DMHC presented funding requests to implement PBM licensing and financial review requirements under AB 116, modernize the managed care complaint system, and build an electronic claims settlement data system under AB 3275. The final major discussion focused on the Behavioral Health Services Oversight and Accountability Commission, which opposed the May Revision’s proposed reduction of its Innovation Partnership Fund from $20 million to $10 million and a $6.7 million cut to community advocacy grants. The Commission argued these programs are core to Proposition 1’s goals of statewide innovation and community accountability, while Finance said the proposal is consistent with Proposition 1’s maximum funding levels and reflects a broader effort to prioritize direct services and use unspent prior-year funds; members pressed for more information and questioned whether the cuts would undermine the new behavioral health framework.

Transcript Highlights:

• , and the budget is subject to change every budget cycle and more frequently as needed.
• So once the appropriation has been made in the state budget, then we know the model is used to allocate
• But is it used ahead of the budgeting process? Is it used to allocate that out.
• half the state budget.
• We've got an approved budget.

Summary: The Joint Legislative Audit and Review Committee subcommittee heard a State Auditor’s Office performance audit on the accuracy and reliability of OSPI’s school apportionment system. Auditors said the system, which calculates and distributes K-12 funding using multiple feeder systems and a core apportionment engine, is outdated, unstable, inefficient, and at high risk of failure. They reported weak controls over data input, documentation, oversight, and staffing, and said OSPI relies heavily on manual workarounds, a few knowledgeable staff, and vendor support. In limited testing of three districts, the auditors found the system calculated funding correctly for the 2023-24 school year, but they identified nine small input discrepancies tied to differences between budget materials and state law, which they said could compound into larger dollar amounts. The auditors recommended replacing or modernizing the system and noted that delays in doing so prolong risk. OSPI largely agreed that the current platform needs replacement and said it has been working toward a new system for years. Agency officials clarified that the Legislature requested a feasibility study in 2022, that the study found the system at risk of catastrophic failure, and that funding for a replacement is now in the state IT pool subject to OCIO/OFM gate reviews. OSPI disputed the audit’s characterization of the rounding and budget-law discrepancies, saying the issue was an agency rule and implementation choice, not an error that caused under- or over-allocation. Officials also said the current system is too old to easily absorb future formula changes, but that the planned replacement should be flexible enough to handle a new funding model if the Legislature adopts one. Committee members asked about the amount and timing of the $16 million project funding, whether smaller districts face greater risk, how many times data is entered, and whether the funding formula should be simplified. Auditors and OSPI both emphasized that formula simplification is a policy question for the Legislature, not the audit. Public testimony came from one online witness, who urged full implementation of the audit recommendations and modernization of the system. The subcommittee took no formal vote and adjourned after the presentations and testimony.

Transcript Highlights:

• The governor's budget does balance the budget in the budget year plus in the following year, and that's
• And budget year plus one?
• future budget years.
• I just want to note that counties do receive a $1.2 billion realignment allocation for budget year 2026
• it does not represent an increase in the allocation as a result of the current budget package.

Summary: The Assembly Budget Subcommittee on Health held a May Revision hearing covering several health-related budget proposals and broader concerns about the state’s budget structure. The Chair opened by praising some May Revision changes, such as added health IT funding, county administration support tied to Medi-Cal changes, a delay in Medi-Cal cuts for some lawfully present immigrants, and additional support for Covered California subsidies, while criticizing proposed increases in Medi-Cal premiums, changes to senior eligibility, the lack of a Medi-Cal dental solution, and other reductions affecting counties, mobile crisis units, workforce incentives, and physician shortages. The Legislative Analyst’s Office said the state’s budget condition remains weak despite progress on the structural deficit, and the Department of Finance said the May Revision uses a mix of reductions, reforms, revenue proposals, and fund shifts to cut out-year deficits. The committee first heard Department of State Hospitals proposals, including adjustments to county bed billing authority, contract exemption language for online clinical/pharmacy subscriptions, reversion of unspent funds, a revised Metro Central Utility Plant replacement project, electronic health record implementation, and workforce development funded partly through Behavioral Health Services Act resources. DSH also described savings and realignments in incompetent-to-stand-trial and conditional release programs, including extending the independent placement panel program and shifting funds to support additional bed capacity and a mental health rehab center. Members asked about the use of BHSA funds for workforce programs, and the department said the proposal would replace General Fund support with BHSA reimbursements. The Emergency Medical Services Authority proposed funding for statewide behavioral health crisis response guidance and for enterprise system development, and the Department of Managed Health Care proposed modernization of its complaint system and claims-settlement data system to improve oversight and comply with AB 3275. The largest discussion centered on the administration’s BHSA spending plan under Proposition 1, including state-directed prevention, workforce, and other uses, plus General Fund offsets for existing programs. The LAO questioned whether some proposed offsets fit Proposition 1’s non-supplant and eligible-use requirements, while the administration argued the uses were consistent with the measure and that the state-directed share can be adjusted annually. The Commission for Behavioral Health’s proposals drew the most public and member concern. The administration proposed cutting the commission’s Innovation Partnership Fund from $20 million to $10 million and reducing the Community Advocacy Program by $6.7 million, while redirecting BHSA dollars to other state purposes and direct services. Commissioners, advocates, and several members argued the cuts would weaken community voice, reduce support for underserved populations, and disrupt grants already in process; they also objected to using BHSA funds to backfill General Fund commitments. Public commenters, including youth, disability, behavioral health, LGBTQ, tribal, veteran, immigrant, and community-based organization representatives, overwhelmingly opposed the cuts and urged preservation of prevention, advocacy, mobile crisis, and innovation funding. No votes or final actions were taken during the hearing.