Transcript Highlights:

• </c> million dollars report to the Capital million dollars report to the Capital Projects<00:04:07.920
• <00:07:21.640><c> $318</c> authorize capital projects totaling $318 authorize capital projects totaling
• </c> In the Treasury, we authorize capital In the Treasury, we authorize capital projects<00:08:55.720
• </c> authorize a maintenance pool capital authorize a maintenance pool capital project<00:14:52.400><
• authorize asset We authorize authorize asset preservation<00:24:48.640><c> pools</c><00:24:48.920><c

Summary: The Kentucky Senate Appropriations and Revenue Committee met with a quorum and first took up House Bill 503, the legislative branch budget, adopting a committee substitute and reporting it favorably. The chair said the Senate version fully funds defined calculations, provides 2% raises in each fiscal year for legislative employees, removes a paragraph on operating expense reductions, and includes $1 million in the first year for a judicial branch salary study. House Bill 504, the judicial branch budget, was then amended and reported favorably; changes included 2% annual raises for judicial employees, revised operating expense language, $1 million each year for county current services, retention of Boyle County fit-up language, reporting requirements for smaller capital projects, full funding for nine judges added in 2022, and removal of furlough prohibitions and certain budget implementation language. Both bills passed the committee unanimously with favorable expressions to the floor. The committee then considered House Bill 500, the executive branch budget, adopting a committee substitute before hearing a lengthy summary of major spending and policy changes. The chair described statewide 2% annual employee raises, agency base reductions with many exemptions, increased school safety and 911 funding, veterans and military funding, local government and severance-related changes, attorney general and auditor funding, pension and retirement system support, education funding changes including SEEK, postsecondary and scholarship provisions, public safety and corrections funding, and multiple capital projects. The chair also highlighted Medicaid-related provisions, including added waiver slots, increased state-directed payments, a 2.5% reduction in managed care vendor payments for plan years 2027 and 2028 with savings redirected to fee-for-service rates, and additional funding for behavioral health and public health programs. The bill was reported favorably after members explained their votes, with several noting they had only recently received the full 228-page bill and wanted more time for detailed review. Finally, the committee adopted a committee substitute for House Bill 900, an appropriation measure for government agencies, and reported it favorably. The chair said the bill remains a work in progress and that one-time funding requests from across the Commonwealth and across party lines would continue to be addressed as the process moves forward. All measures considered during the meeting passed the committee with unanimous or near-unanimous favorable votes, and the meeting adjourned after no further business.

Transcript Highlights:

• Backup assets. Why all of it on demand side grid support program?
• The capital cost was approximately $130 million for these resources.
• So these assets that we're talking about today, these three different assets that DWR owns, actually
• Smooth out that bill impact and their long-lived assets. So that's the process.
• Additionally, there are a number of intertwined assets.

Transcript Highlights:

• We have epicenters around innovation and technology, the largest concentration of military assets in
• And then the last thing I want to mention in terms of our regional assets is advanced manufacturing.
• the private workforce. workforce here, private sector workforce in San Diego, and obviously a big asset
• In the past five years, only about 2% of venture capital goes to women-founded companies. consistently
• Chang, you made a very valuable comment with regards to access to affordable capital, and that really

Committee: House Economic Development, Growth, and Household Impact

Transcript Highlights:

• Our asset preservation request is $3,810,000, uh, with our total there in front of you.
• preservation instead of a capital project such as this one.
• </c> governor's Rec really focus on asset governor's Rec really focus on asset preservation<00:20:59.320
• instead of a capital preservation instead of a capital project<00:21:00.600><c> such</c><00:21:00.799
• </c><00:21:22.960><c> preservation</c> speaker um about the asset preservation speaker um about the asset

Transcript Highlights:

• The third finding, while performing an observation of assets from a current capital asset listing dated
• However, the item remained on the fixed asset listing as a current active item.
• items were not capitalized at the correct amount.
• One item that was still on hand was removed from the ACES fixed asset listing in error, and one item
• It just had not been updated in our fixed asset listing.

Committee: All LEGISLATIVE JOINT AUDITING-STATE AGENCIES

Summary: The committee first approved the prior meeting minutes and then heard audit reports from Mr. Bullington. Four reports without findings were filed without objection. The Department of Human Services FY24 report contained three findings: suspected fraud involving disaster food assistance and Medicaid benefits by employees, a delayed notification of a forged and cashed state warrant for nearly $610,000, and several fixed-asset and sales-tax errors. DHS officials said they had referred the benefit fraud cases to prosecutors, recovered some restitution, and would change internal procedures so accounts payable staff report such incidents directly to the chief fiscal officer. Committee members questioned the missing assets, the warrant delay, and the tax issue, and the report was deferred to the next meeting so DHS could return with written policy changes. The Department of Parks, Heritage, and Tourism FY24 report had two findings: the loss of nearly $3,500 in museum receipts, believed to be theft at the Mosaic Templars Cultural Center, and issues with change funds at Daisy State Park and War Memorial Stadium. Agency officials said they had implemented new controls, including a point-of-sale and reservation system for museum rentals and more frequent reconciliation of change funds. Members asked about the criminal case, the statute of limitations, bond board reimbursement, and whether the employee’s final paycheck could be withheld. Mr. Bullington later reported that the prosecutor’s office said the Parks and Tourism investigation remained open and that additional information had been requested from the agency. The committee then deferred that report as well, and adjourned after setting the next meeting for February 12, 2026.

Transcript Highlights:

• Okay, we are going to shift to water, and I’m going to ask Senator Trudeau, our Vice Chair for Capital
• Los Angeles, the gentleman of his Aquami Indian. for capital to chair this portion of the agenda.
• Last year we socialized housing, which was a big area of investment for the capital budget.
• It took the remaining assets beyond the 120% and deposited those in the pension funding stabilization
• Merger is a combining of the assets and liabilities of two or more plans into one big plan.

Committee: Senate Ways & Means

Summary: The Ways and Means Committee met for a work session and first heard an economic and revenue forecast update from the Economic and Revenue Forecast Council. The forecast described moderate U.S. growth, elevated near-term inflation, weak Washington employment growth in 2026, continued personal income growth, and slower housing permit activity. Revenues were revised up about $105 million for the current biennium and down about $185 million for the next biennium, with uncertainty tied largely to tariffs, federal policy, and the recent federal shutdown. Members asked about the outlook for February, income inequality, and housing affordability; the presenter said the forecast does not measure income distribution and that housing permit data does not directly address affordability. The committee then received a caseload forecast update. Most forecasts were unchanged or nearly unchanged, but several programs moved: Washington College Grant caseloads rose, TANF and Working Connections changed due to immigration-related assumptions and updated policy timing, and long-term care caseloads increased. The largest change was in Medicaid low-income adults, where federal H.R. 1 was projected to reduce caseloads significantly through narrower non-citizen eligibility, community engagement requirements, and shorter eligibility periods. Members raised concerns about downstream effects such as uncompensated care and higher premiums, and the presenter noted some effects could be delayed depending on federal implementation guidance. A wildfire funding and 2025 fire season update followed. Staff explained the state’s base wildfire suppression funding and estimated a supplemental need of about $139 million in state funds. DNR reported a busy fire year with lower snowpack, drought, more than 1,100 DNR jurisdictional fires, about 76,000 acres burned, 31 aircraft used, 690 DNR firefighters, and 350 out-of-state resources brought in; the agency said its suppression effectiveness improved to 94.1% of fires kept under 10 acres. Questions focused on National Guard use, aircraft counts, and the higher number of residences lost in complex fires. The committee then heard a budget preview showing the near general fund outlook worsening to about a $4.3 billion ending balance by fiscal year 2029 after maintenance-level costs, while noting that policy items such as wildfire costs and liability account decisions were not yet built in. The final major topic was the state’s tort liability and self-insurance account, where the Risk Manager reported a sharp rise in indemnity costs, from $223 million in fiscal year 2023 to nearly $500 million in fiscal year 2025, driven largely by DCYF claims, especially sex abuse cases. Defense costs also rose as the Attorney General’s Office relied more on special assistant attorneys general to handle volume. Members asked about older claims, comparisons with other states, insurance coverage, and whether costs might decline if the AG’s office hires more attorneys. The committee then shifted to water policy, hearing from tribal leaders, Ecology, and the Washington Water Trust about statewide water shortages, declining snowpack, drought, overappropriated basins, and the need for more storage, recharge, conservation, and enforcement. Tribal witnesses emphasized water sovereignty, salmon habitat, and the need for tribes to be involved early in legislation, while Ecology described major projects in the Odessa and Yakima basins and the challenges of climate change and legal constraints. No votes were taken during the work session.

Transcript Highlights:

• Well, stablecoin, first of all, is a type of digital asset that's designed to maintain a steady value
• But what I do know is the longevity of this asset class has proven itself very worthy to invest in.
• Cryptocurrencies and particularly Bitcoin are no longer fringe assets.
• In fact, they represent a major... ...and particularly Bitcoin are no longer fringe assets.
• , stable digital assets, not volatile startups and meme coins and things like that.

Summary: The Insurance and Banking Subcommittee met to hear and vote on several bills, with all measures reported favorably. The first major item was PCS for HB 175 on payment stablecoins, which would create a Florida regulatory framework aligned with the federal GENIUS Act so issuers can choose state regulation instead of federal licensing. Members asked extensive questions about how stablecoins differ from other digital assets, whether Florida would need federal approval, and what impact the bill would have on the Office of Financial Regulation; the sponsor and OFR said the state framework would mirror federal standards and that any workload increase was currently indeterminate. The PCS passed unanimously after testimony from OFR and the Florida Blockchain Business Association in support. The committee then approved CS for HB 961, which streamlines electronic signature requirements for salvage titles and certificates of destruction, and HB 1415, a DFS stablecoin pilot program allowing certain stablecoins to be used for licensing and regulatory fees. HB 1415 was amended to remove authority for a Florida coin, limit the pilot to established stablecoins with at least $1 billion market cap, and require secure custody through a public depository or custodial bank. Members discussed how any interest or revenue would be used, with sponsors saying the pilot was still exploratory and intended mainly to cover program costs. Both bills passed favorably. HB 1039, establishing a state cryptocurrency reserve, also passed after a strike-all amendment moved administration of the reserve from the CFO’s office to the State Board of Administration and tightened eligibility to cryptocurrencies with a $100 billion market cap over the prior 12 months. Supporters argued the bill would create a framework for future diversification and investment in established digital assets, while several members raised concerns about volatility, reporting frequency, and the meaning of new terms such as qualified liquidity provider and secure custody solution. The committee also passed CS for HB 951 on penny rounding for cash transactions, with an amendment clarifying cash transaction definitions and treating money orders and gift cards like credit-card transactions for rounding purposes.

Transcript Highlights:

• As these aviation assets increase in power and technological advancement, so do the costs to maintain
• As these aviation assets increase in power and technological advancement, so do the cost to maintain
• of the immigration enforcement element. assets has increased because of the immigration enforcement
• He added that it would allow proper maintenance of high-value air, marine, and amphibious rescue assets
• This is essentially our capacity capital program and capital maintenance program.

Bills: S0048

Committee: Senate Appropriations Committee on Transportation, Tourism, and Economic Development

Summary: The Appropriations Committee on Transportation, Tourism, and Economic Development heard presentations on the Governor’s recommended budget for fiscal year 2026-27 and then considered one bill, CS/SB 48 on accessory dwelling units (ADUs). The Governor’s office outlined a $117.4 billion overall budget, with transportation and economic development receiving about $18 billion statewide and $601 million in general revenue. Agency heads then presented priorities for Commerce, Highway Safety and Motor Vehicles, Military Affairs, State, Transportation, Emergency Management, and the Florida State Guard, emphasizing workforce development, housing, tourism marketing, aviation and space infrastructure, law enforcement recruitment, emergency preparedness, and military readiness. In the Commerce presentation, Secretary Kelly highlighted funding for housing programs, the Hometown Heroes program, the Florida Job Growth Grant Fund, rural infrastructure and workforce grants, Reconnect and Florida WINS systems, law enforcement and firefighter recruitment bonuses, defense support, Visit Florida, Space Florida, and SelectFlorida. Senators asked about Visit Florida’s private match requirements and whether the agency fully leveraged prior appropriations; Visit Florida’s CEO said the match was met and exceeded, though it is difficult but important. The Highway Safety and Motor Vehicles presentation focused on trooper pay, pursuit vehicles, aviation assets, and enterprise data systems, with questions about immigration enforcement and body cameras. Military Affairs requested funding for readiness centers, training facilities, education and health benefits for Guardsmen, and maintenance of existing armories; members discussed Guard deployments, staffing levels, and a proposed firing range project. The Department of State requested funds for automated election audits, a conservation lab, and historic preservation, and defended its arts grant process and rule changes. Transportation’s budget emphasized a $14.3 billion work program, road and bridge maintenance, aviation and aerospace, safety initiatives, and seaport investments, while Emergency Management requested funding for preparedness, flood mitigation, WebEOC, grants management, and alert systems; senators also asked about the Alligator Alcatraz detention facility. For CS/SB 48, Senator Gates explained that the bill would require local governments to allow property owners to voluntarily create ADUs, while preserving local authority over setbacks, construction, and permitting. An amendment removed reusable tenant screening reports and clarified that conforming ADUs would be allowed by right without a separate hearing. The Florida Restaurant and Lodging Association supported the bill, saying ADUs could help provide long-term housing for service workers. After questions about local government and HOA authority, the committee adopted the amendment and then reported CS/SB 48 favorably by roll call vote.

Transcript Highlights:

• That was based on asset size, I believe. Asset size. Okay. Oh, yeah. Definitely not performance.
• </c> of your of your asset. of your of your asset.
• &gt;&gt; That was based on asset size, I believe. &gt;&gt; Asset<00:15:06.320><c> size.
• </c><00:15:07.760><c> Um</c> &gt;&gt; Asset size. Okay. Um &gt;&gt; Asset size. Okay.
• :54.400><c> are</c> capital market projections that are capital market projections that are provided<

Committee: Joint Finance

Transcript Highlights:

• In counties like Placer, agricultural land is not just an economic asset.
• for ensuring beneficiaries are notified or connected to the asset.
• The Capital Annex project...
• The Capital Annex project...
• But it failed to identify those assets.

Committee: Senate Judiciary

Transcript Highlights:

• </c> capital. Thank you. capital. Thank you. Thank<00:09:56.960><c> you.</c> Thank you. Thank you.
• </c><00:21:47.920><c> by</c> international asset also bordered by international asset also bordered by
• </c><00:42:31.280><c> asset</c><00:42:31.680><c> is</c> make this a regional asset asset is make this
• a regional asset asset is dependent<00:42:32.240><c> on</c><00:42:32.320><c> the</c><00:42:32.400><c
• You may proceed. capital today. Thank you. You're capital today. Thank you.

Bills: HF4156 , HF3835 , HF3995 , HF4383 , HF4091 , HF4084 , HF4311 , HF198 , HF4486 , HF4302 , HF4309 , HF4032 , HF3855 , HF3673 , HF4265 , HF4012 , HF4339 , HF4298 , HF3852

Committee: House Capital Investment

Transcript Highlights:

• So it really allows us to pull those properties in and get them back into the community as assets.
• So there's this intersection of reduction of blight and crime and also putting, like, community assets
• But if we can get it into the land bank, and they get their capital stack ready, then we can get that
• You're an incredible asset to the Legislature, as well as to all of the communities that you have been
• Time is an asset all on its own. Of course.

Committee: House Housing

Summary: The committee held a work session on land banking and shared homeownership models, with members and staff discussing ways to use public land and nonprofit partnerships to expand permanently affordable housing. Commerce’s Dave Anderson outlined recent policy changes that may support these models, including ADUs, middle housing, lot splitting, condominium reforms, church land housing, and public land transfer policies. He described community land trusts and limited equity housing cooperatives as ways for households to build some equity without owning land outright. Representatives asked about statewide numbers and implementation, and Commerce said it is preparing a guidebook for local planners. Pierce County staff described the Pierce County Community Development Corporation’s rapid acquisition fund, public-to-public land transfers, and land banking loans. They said the county used general fund and 1406 sales tax dollars to acquire properties, preserve a manufactured home park through resident ownership, and assemble public surplus and underutilized sites for future affordable housing. Committee members asked about the entity’s advantages over private developers, funding sources, coordination with housing authorities, and whether similar models exist elsewhere. The presenter said the main advantage is the ability to receive public property transfers at no cost and hold land while development plans are assembled. Amy Manning of the Spokane Regional Land Bank said land banks help move vacant, blighted, or underutilized properties into affordable housing and community use, but holding costs and taxes can make projects harder to finance. She described EPA brownfield assessments, Commerce planning grants, donated properties, and work with the City of Spokane on surplus and underutilized land. Victoria O’Beynion of the Northwest Cooperative Development Center then testified on limited equity cooperatives, especially in manufactured housing communities, saying they preserve affordability, support resident governance, and can build modest equity over time. She cited growth in cooperative acquisitions since 2020 and said recent legislation allowing manufactured homes in cooperatives to be titled as real property has improved access to traditional financing. The committee then shifted to maximizing existing housing stock. Dave Anderson reviewed the state’s recent housing laws and said implementation is still unfolding, with local code updates and planning cycles taking years. He noted growth in ADUs, room rentals, and multifamily production, but also concerns about short-term rentals and corporate ownership of single-family homes. Members asked for follow-up data on implementation timelines, vacancy, corporate ownership, and eviction patterns. Sightline’s Katie Gould presented on mobile dwelling units, arguing that RVs and tiny houses on wheels are a low-cost, fast-to-install housing option that is often blocked by zoning, and described cases where people were forced into precarious or illegal arrangements. AARP’s Kathy McCall closed by emphasizing aging in place, housing cost burdens on older adults, and the need for more accessible, lower-cost options such as ADUs, missing middle housing, and manufactured home community preservation.

Transcript Highlights:

• asset limit had complex asset test rules that prior to its elimination may have discouraged potential
• in how it tests assets. ...how it tests assets and so any level of asset test would still have some
• The last one is a capital outlay.
• The last one is a capital outlay. Number 58 is a capital outlay proposal.
• The last one is a capital outlay. Number 58 is a capital outlay proposal.

Summary: The hearing began with opening remarks on the Governor’s May Revision for child care and human services, with committee members and advocates stressing that the budget should not be balanced on the backs of low-income families, children, and providers. Legislative members and public witnesses strongly opposed the proposed suspension of the child care COLA, reductions to the Emergency Child Care Bridge Program, and the lack of codified rate reform tied to the alternative methodology. Several speakers also urged more support for providers affected by the Eaton fire and other disasters, and called for child care to be funded at the true cost of care and for additional slots to be restored. Administration, LAO, and Department of Education staff described the child care proposal as maintaining existing funding levels while adding administrative resources to prepare for federally required prospective payment changes and single-rate reform. The administration said the May Revision would suspend the 2025–26 COLA and reduce Bridge Program funding to align with utilization, while the LAO raised questions about the size and purpose of the proposed rate-reform and prospective-payment funding and recommended rejecting a Department of Technology exemption. CDE supported continued early education investments but said it would need additional resources if prospective pay were extended to state preschool, and it objected to a proposed reallocation of preschool funds for inclusive education grants. The committee then moved to the IHSS portion of the May Revision. DSS outlined five major proposals: capping provider work hours at 50 per week, eliminating IHSS for undocumented adults age 19 and older, shifting certain Community First Choice reassessment penalties to counties, reinstating the Medi-Cal asset test as a conforming IHSS reduction, and automating the termination of IHSS when Medi-Cal eligibility ends. DSS also discussed funding to implement a federal HCBS access rule and a separate reassessment of IHSS administrative methodology that found counties would need additional administrative funding. Finance said the proposals were intended to slow program growth and improve sustainability, while the LAO said it was still analyzing the package and raised concerns about implementation, county workload, and the potential loss of services. Committee members and public commenters criticized the IHSS cuts, especially the overtime cap and the elimination of services for undocumented adults and people affected by the asset test. Advocates argued that IHSS workers and recipients depend on these services, that county administration is already underfunded, and that the proposals could destabilize vulnerable consumers. The chair closed by saying the committee would continue to fight for child care and would not pause on child care, and the meeting recessed before moving on to the remaining May Revision items.

Transcript Highlights:

• asset program, which includes the approval of major capital projects; setting expectations for the maintenance
• asset program, which includes the approval of major capital projects; setting expectations for the maintenance
• asset program, which includes the approval of major capital projects; setting expectations for the maintenance
• asset program, which includes the approval of major capital projects; setting expectations for the maintenance
• asset program, which includes the approval of major capital projects; setting expectations for the maintenance

Committee: Senate Higher Education

Transcript Highlights:

• Um, and then last time we have two capital projects that did not get funded in the capital budget and
• Um, and then last time we have two capital projects that did not get funded in the capital budget and
• </c> um capital budgets.
• There was a capital um capital budgets.
• </c> and the assets in the retirement system. and the assets in the retirement system.

Committee: Senate Finance

Transcript Highlights:

• Uh, the first set of provisions here affect capital gains, and these would be capital gains treatment
• > capital</c><00:21:16.320><c> gains</c> would be capital gains would be capital gains uh<00:21:18.240
• </c> subsidiary asset test for REITs. subsidiary asset test for REITs.
• It truly does make Minnesota a asset.
• Um, and it be a strong uh state asset.

Bills: HR1 , HF387

Committee: House Taxes

Transcript Highlights:

• The assets are paid for with bond revenue generated locally, and it just gives clarification of those
• assets of the sewage and water board—the sewer and water board's assets, and not the state's assets.
• What would it take for it not to be quasi-state, for it to be a city, a total city asset?
• Mayor Darnel Waits from the City of Baker and Jesse McCormick with Capital Partners.
• LMA was my first job in this capital.

Bills: SB348 , SB444 , SB485 , SB517 , HB87 , HB115 , HB162 , HB362 , HB368 , HB377 , HB431 , HB441 , HB466 , HB664 , HB741 , HB822 , HB990 , HB1243

Committee: Senate Municipal

Summary: The committee on Local and Municipal Affairs met on May 7, 2026 and approved the prior meeting minutes before taking up a series of local bills. Early action included HB 362, creating the Regency Park Towns Townhomes Crime Prevention and Security District in Orleans Parish, which was reported favorably. HB 822, dealing with nonprofit entities that hold appointments on boards and commissions while not in good standing with the Secretary of State, drew discussion about how long an entity must be out of compliance and whether notice should be required; the committee adopted an amendment changing the threshold to three consecutive years and then reported the bill as amended. A major portion of the meeting focused on HB 1243, which would shift more authority over the New Orleans Sewerage and Water Board to the Orleans Parish City Council. Supporters, including Representative Hilfriddy and Council President J.P. Morrell, argued the current structure is dysfunctional and unresponsive, and that local elected officials need authority to act more quickly. The Bureau of Governmental Research testified without taking a position on the bill itself but urged a formal transition plan or study committee so the city would have a clear governance path. Despite that concern, the committee adopted an amendment clarifying asset ownership and then reported HB 1243 as amended. The committee also handled several St. George bills. SB 348, allowing local law enforcement to contract for administrative support related to motor vehicle enforcement, was reported favorably. SB 444, granting St. George expropriation authority for certain public infrastructure projects, was also reported favorably. SB 485, concerning the city’s authority over insurance premium taxes, initially had amendments adopted but was then reconsidered; the amendments were stripped and the bill was reported favorably in its original form. HB 431, requiring mayors to complete annual continuing education, was amended to clarify approved training and then reported favorably. Other measures reported favorably included HB 990 on Jefferson Parish master water meters, HB 466 on West Feliciana Parish tax rebates tied to a data center project, HB 664 raising the maximum fine for parish ordinance violations, HB 87 increasing per diem for a Livingston Parish gas utility district board, HB 115 abolishing the police chief position in Edgefield, HB 741 creating emergency housing vouchers for human trafficking survivors, HB 377 removing civil service pay-plan restrictions for state examiners, HB 162 allowing a fee increase for the Jefferson Place/Bocage Crime Prevention District, HB 368 increasing fines for improper demolition of historic properties in New Orleans, and HB 441 returning New Orleans Sewerage and Water Board employees to city civil service. The committee adjourned after reporting the bills.

Transcript Highlights:

• During my time as mayor of Tenino, we leaned into our cultural and historic assets and turned...
• During my time as mayor of Tenino, we leaned into our cultural and historic assets and turned them into
• community bank is closer to the federal statute, which is a bank that has $10 billion or fewer in assets
• soon, that language will be clear. ...which indicates that a bank that has more than $10 billion in assets
• lumped together, looking at the income approach as well as the market value of those different assets

Bills: HB1960 , HB2194 , HB2089

Committee: House Finance

Keywords: HB1960, renewable energy, clean energy, solar, wind, battery storage, energy storage, excise tax, property tax exemption, local investment, county revenue sharing, local taxing districts, school districts, Department of Revenue, Department of Commerce, model ordinance, siting, permitting, tribal consultation, tribal capacity grants

Transcript Highlights:

• to that original asset limit.
• to that original asset limit.
• The asset test limit—I mean, I just don't even know— The asset test limit—I mean, I just don't even know
• The asset test at seniors and people with disabilities—I think about the asset test.
• We urge rejection of the asset test.

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.

Transcript Highlights:

• And it's entirely asset-based. It's not programmatic.
• If you are trying to build your capital stock, if you're trying to invest in a substantial asset, you
• Bonds are typical ways for government agencies to be able to finance capital projects.
• And assets and liabilities are on the other side of the ledger.
• It also provides an asset and a resource.

Committee: Senate Housing

Summary: The committee opened its first Senate Housing hearing of 2026 by taking up several two-year bills and bond measures. SB 222 by Senator Wiener, the Heat Pump Access Act, would streamline permitting for heat pump water heaters and HVAC systems, allow video/phone participation by contractors during inspections, and limit HOA barriers. Supporters said the bill would cut costs, speed replacements, reduce pollution, and help Californians lower energy bills; the League of California Cities opposed unless amended, citing concerns about a permit fee cap and virtual inspections. After questions about fees, inspection liability, HOA authority, and electrical panel upgrades, the bill passed 10-0 to Senate Local Government. The committee then considered SB 677, a follow-up to SB 79. The author announced the bill would be narrowed to two definition changes and that broader SB 79 cleanup would come in a new bill later in 2026. Testimony reflected both support and concern: some local governments and counties said more clarity was needed on implementation, transit-related definitions, and timing, while housing and transit advocates supported the cleanup and the removal of the ferry-stop provision. The committee approved the amended bill 10-1 to Local Government. SB 417, the Affordable Housing Bond Act of 2026, proposed a $10 billion general obligation bond for affordable rental housing, supportive housing, homeownership, and preservation. Supporters argued that state housing funds had been exhausted, that thousands of shovel-ready units were waiting for financing, and that the bond would leverage federal tax credits and create jobs. Opponents, including Habitat for Humanity, asked for a dedicated CalHome set-aside for homeownership. Members debated state debt levels, bond repayment, and whether the state should rely more on direct appropriations, but the bill passed 8-1 to Appropriations. The committee also began hearing SB 492, the Youth Housing and Youth Center bond, which the author said was intended to be folded into a larger housing bond package. The bill would authorize bonds for youth housing and youth centers for transition-age youth up to age 25, with the author arguing that early intervention could prevent future homelessness. The transcript cuts off before the committee completed action on SB 492.