Transcript Highlights:

• Now, we have agreed language within each of the allocations of those types of programs.
• Also, one-time allocation for Prop. 98. When I was a committee college trustee at the L.A.
• We are very appreciative of the allocation.
• We are very appreciative of the allocations to the state LIHTC program and the MHP program.
• Without this new allocation, California will lose Without this new allocation, California will lose one

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.

Transcript Highlights:

• March of 2024, and this will include three main things: how Prop 1 changed county funding allocations
• Prior to the bond, this program was originally allocated $2.2 billion.
• It's essentially allocating funding, largely, to seven different regions of the state.
• That allocation was based on historical funding for reallocation. alignment from many years ago.
• Source: the multi-payer fee schedule.

Keywords: 988, house, all

Transcript Highlights:

• , fee structure, and implement fee increases needed to support ongoing operations.
• This backfill would allow fee discussions to focus solely on what fee levels are required to support
• But it also, we support ourselves off state appropriation and student fees.
• But it also, we support ourselves off state appropriation and student fees.
• But it also, we support ourselves off state appropriation and student fees.

Keywords: 987, senate, all

Summary: The Senate Budget Subcommittee on Education heard May Revision proposals covering higher education, including the Bureau for Private Postsecondary Education, the University of California, California Community Colleges, the California Student Aid Commission, UC College of the Law, San Francisco, and trailer bill reporting changes. For the Bureau for Private Postsecondary Education, the administration proposed a one-time $10 million General Fund backfill to repay a special fund loan taken to cover litigation costs, plus provisional language to adjust for a pending legal expense and to repay the loan without interest. The LAO opposed shifting costs to the General Fund and raised legal concerns about an interest-free loan under Proposition 26. Senators asked about whether the $10 million would cover the litigation and about the estimated $245,000 in interest savings. For UC, the May Revision maintained the Governor’s ongoing support and included budget language requiring campuses to grow by 2,968 California undergraduates in 2026-27. UC also sought $1.5 million in one-time General Fund support for the First Star foster youth program. UC described strong outcomes for the UCLA program, while the LAO recommended rejecting the new spending because UC already has overlapping outreach programs, including the Early Academic Outreach Program, and because the need for new state funding was not clear. Senators debated whether the proposal duplicated existing services and discussed the program’s reported college-going and completion rates. The committee also heard a request for $1 million ongoing General Fund for UC College of the Law, San Francisco, to maintain campus safety services; the college described its shared-campus model and public-interest mission, while the LAO noted the college was also raising tuition and that the proposal would maintain, rather than expand, current security spending. The committee then reviewed community college proposals. Finance outlined a larger May Revision package centered on a 4.31% SCFF COLA, enrollment growth funding, categorical COLAs, a one-time Adult Learner Demonstration Project allocation, deferred maintenance, and other ongoing and one-time items. The Chancellor’s Office supported the package but asked for more enrollment growth funding, a higher growth rate, and additional policy changes. The LAO recommended at least funding the statutory 2.87% COLA, then considering whether to redirect remaining funds to enrollment growth, categorical COLAs, or one-time priorities; it recommended rejecting the Adult Learner Demonstration Project. Senators questioned the use of the discretionary COLA to cover paid pregnancy disability leave, the impact on hold harmless and basic aid districts, and whether the state should instead create a separate categorical. The Chancellor’s Office and Finance said the COLA approach was intended to provide flexibility, though Finance said it was open to further discussion about districts that would not receive direct funding. For student aid, Finance described May Revision changes to Cal Grant and the Middle Class Scholarship, including a one-time reduction tied to lower estimated costs and a later true-up, as well as proposals for the Golden State Teacher Grant Program and implementation of the federal Workforce Pell program. CSAC supported the financial aid investments but urged more time and clearer implementation planning for Workforce Pell, noting the need for state approval processes, data linkages, and likely ongoing administrative workload. The LAO recommended rejecting additional Golden State Teacher Grant funding and cautioned that the Workforce Pell trailer bill and one-time funding were premature given the new federal rules and unclear workload. Senators also raised concerns about the Middle Class Scholarship reduction, the need to support students facing higher living costs, and the decline in CADA/DREAM Act applications, with CSAC saying the drop did not reflect reduced need and that outreach should be strengthened. The final item was a set of technical trailer bill changes to shift some UC, CSU, and community college reporting from annual to biennial and consolidate reports; Finance said there were no programmatic changes.

Transcript Highlights:

• It's just new allocations in terms of In terms of how funds are going.
• It's just new allocations in terms of where that's going to be happening.
• The issue as to whether we allocate all this bond funding, same issue about out-year allocations, et
• That at this point has stopped our work there and we're unable to collect fees.
• And we are concerned that those are coming from fee-based positions.

Summary: The Assembly Budget Subcommittee on water and coastal resilience heard an overview of the governor’s Proposition 4 spending plan, with presentations from the Department of Finance, the State Water Resources Control Board, the Department of Water Resources, the Legislative Analyst’s Office, and later coastal agencies. Members discussed the water chapter’s major allocations for drinking water and wastewater, recycled water, tribal water infrastructure, groundwater recharge and SGMA implementation, dam safety, flood protection, integrated regional water management, Salton Sea projects, and water data/stream gauges. The LAO noted that many programs are established and have clear funding processes, but some newer or less-defined programs may warrant more detailed future budget requests and reporting. No votes were taken on the agenda items. Members raised concerns about groundwater subsidence, water deliveries from the Delta, the pace of water storage investments, instream flows, and whether bond dollars were being used to backfill General Fund reductions. Administration witnesses said groundwater recharge spending is being paced because prior years already funded substantial SGMA work, that Delta operations are governed by water quality, salinity, and species requirements, and that Proposition 1 storage projects have moved slowly because they are locally led and require permitting and financing. The Water Board and DWR said they use public needs assessments, annual plans, and existing grant processes to prioritize projects, and Finance said some General Fund programs were shifted to Proposition 4 to help balance the budget. Members also asked for clearer public tracking of bond spending and more concise future reporting. In the coastal resilience portion, the Ocean Protection Council and Coastal Conservancy described Proposition 4 funding for sea level rise adaptation, coastal flood management, habitat restoration, public access, and San Francisco Bay projects, with a multi-year rollout based on project readiness and recent large state investments. The Conservancy said it would use its existing rolling grant process, while OPC said its sea level rise grants would build on existing programs and new technical assistance. The Department of Fish and Wildlife explained its proposed use of bond funds for climate-ready fisheries, hatchery modernization, salmon monitoring, whale- and turtle-safe fishing gear, and a specific hatchery operations request tied to the Friant settlement. The LAO said the coastal chapter’s proposed first-year spending is relatively modest but generally reasonable given staffing and project readiness, while members emphasized oversight, transparency, and coordination across agencies and jurisdictions.

Transcript Highlights:

• My name is Jason Mallet, the CFO of the Department of Tax and Fees.
• So under this proposal, the delivery fees will still be exempt, right?
• retailers of tangible goods charge tax on service fees.
• We do understand that this does bring in those service fees.
• We do understand that this does bring in those service fees.

Summary: The Assembly Budget Subcommittee on State Administration heard several budget proposals from CDTFA, the Board of Equalization, and the Franchise Tax Board. The first panel focused on cannabis, hemp, flavored tobacco, and related enforcement. CDTFA requested ongoing funding to implement cannabis tax changes, enforce the new intoxicating hemp restrictions and flavored tobacco seizure authority, and continue compliance work. The department said it is targeting illicit product, protecting licensed businesses, and using referrals from the public and lawmakers to focus inspections. The LAO supported some of the proposals but urged the Legislature to treat them as part of a longer-term enforcement strategy and raised concerns about the use of General Fund support for cannabis enforcement. Public testimony on the cannabis item largely supported stronger enforcement and funding for the legal market. The committee also heard CDTFA’s request to reappropriate funds for an upgrade to the CROS tax collection system, which would improve taxpayer services, security, and software maintenance without adding new money. A separate CDTFA proposal would make all delivery network companies, such as DoorDash and Uber Eats, marketplace facilitators for sales tax purposes. CDTFA said the change would reduce confusion for restaurants and improve compliance, while the LAO questioned whether the proposal functioned more like a tax increase because it would also capture service fees. Members raised affordability concerns, but the proposal was framed by the administration as a parity and compliance measure. The subcommittee then considered a governor’s proposal for a sustainable aviation fuel tax credit. Finance argued the credit would help decarbonize aviation and support in-state production, while the LAO recommended rejection, citing cost, uncertainty about environmental benefits, possible diversion of diesel excise tax revenues from transportation programs, and concerns about consistency with voter-approved transportation funding rules. Testimony from airlines, labor unions, airports, and refinery workers strongly supported the credit, emphasizing union jobs, refinery conversions, and emissions reductions, while fuel retailers and some others warned about fiscal risk and higher fuel prices. The chair and some members expressed support for the proposal despite the funding concerns. Finally, the BOE presented an IT modernization project for state-assessed property administration, saying the current system is outdated and manual and that a new system is needed to improve accuracy, cybersecurity, and workflow efficiency, especially with a likely increase in workload from new VoIP assessments. The LAO asked for more justification for the timing, but BOE said the urgency stems from aging systems and growing workload. BOE also requested modest funding to implement SB 293 changes to intergenerational property transfers and wildfire relief guidance, which the LAO did not oppose. The Franchise Tax Board began its presentation on the final phase of its Enterprise Data to Revenue modernization effort, describing the project’s rollout across audit, collections, legal, and filing enforcement workloads and noting it is now in a warranty period.

Transcript Highlights:

• don't know what other fees there are. don't know what other fees there are.
• So, what what are<00:48:29.680> the<00:48:29.839> fees? are the fees? are the fees?
• Miss Barton: The fees do include things like the filing fees, the classroom fees, the fees for the exam
• certificate if you don't have it. fees, the fees for the exam, um things fees, the fees for the exam
• > of allocations temporary allocations of allocations temporary allocations of money<01:21:05.440

Keywords: 1187, senate, all

Transcript Highlights:

• And then, of course, there are locally collected tuition and fees that help support these programs.
• That is not a function of how the appropriation is allocated to the school districts.
• Our tuition and fees estimated for 2425, based on our Institutions' tuition and fees estimated for 2425
• , based on our first FTE calculation, you see there about $704.5 million in tuition and fees.
• state funds and 30% tuition and fees for the Florida College System.

Summary: The Appropriations Committee for Higher Education met to review Florida’s workforce and Florida College System funding models as part of budget planning. Chair Harrell opened by emphasizing the state’s growing focus on technical education and workforce pathways, and the committee first heard from Tara Goodman of the Department of Education on district workforce education. Goodman explained the programs funded through district workforce dollars, including career certificates, applied technology diplomas, registered apprenticeship, and adult general education, and described the model’s reliance on lagged enrollment, program cost weights, local tuition offsets, and supplemental factors such as disability services, GED testing, and minimum funding for small rural districts. She also noted federal support through Perkins and WIOA and said the model is used to determine unmet need and guide appropriations. In response to questions, she said health care programs are generally among the higher-cost offerings and may be supplemented by pipeline funds. The committee then heard from Kathy Hebda, Chancellor of the Florida College System, on the college system’s funding model. Hebda described the main funding sources, including the program fund, student success incentive funds, pipeline funds, tuition and fees, and performance-based incentives, and explained that the current model was developed by the 28 college presidents under legislative direction. She said the model uses a three-year average FTE, weights workforce enrollment more heavily than non-workforce enrollment, gives significant weight to completions, includes a small-college factor and regional cost differentials, and also provides targeted funding to bring colleges up to a floor based on per-FTE funding. Senators asked about colleges below the target, cost differences among programs, faculty salaries, and health insurance costs; Hebda said the model is meant to provide flexible operating dollars that colleges can use for those expenses, but specific salary and benefit decisions are left to the institutions. Seminole State College President Georgia Lorenz also testified in support of the college funding model, saying it holds institutions accountable for enrollment and completions, can be adjusted to reflect state priorities like workforce, and addresses differences in size and regional costs. No bills were voted on, and the committee adjourned after brief closing remarks thanking Seminole State College and the presenters.

Transcript Highlights:

• I was wondering why we made that allocation change. Thank you.
• Allocation is the assignment of at least one safe school officer per school facility.
• Safe schools allocation. Thank you, Madam Chair.
• What has been allocated this year versus what was allocated last year for that program?
• For local water projects this year, we allocated $175.4 million.

Transcript Highlights:

• And these are anticipated revenues that will be set aside for allocation in next year's budget.
• This bill increases fees for the California State Athletic Commission.
• This bill increases fees for the California State Athletic Commission.
• We need to make sure when these funds are allocated, there's accountability and transparency.
• We need to make sure when these funds are allocated, there's accountability and transparency.

Summary: The Assembly Budget Committee met to consider the final three-party agreement for the 2026-27 state budget and 19 implementing bills, including two budget bill juniors and 17 trailer bills. Committee leadership and administration officials described the budget as a balanced plan that reduces out-year structural deficits, maintains large reserves, and makes major investments in health care, education, housing, child care, public safety, and other core services while also responding to expected federal cuts and fiscal uncertainty. The Department of Finance outlined the package’s major components, including Medi-Cal adjustments, education funding increases, higher education changes, child care and human services updates, housing and homelessness funding, energy and transportation provisions, and tax and general government changes. Members asked questions about several provisions, including CSU enrollment targets and turnaround plans, the Prop. 98 settle-up mechanism, the plastics market development payment program, housing accountability measures, NextGen 9-1-1 implementation, and veteran services. Staff and administration witnesses explained that the higher education language is intended to improve campus-by-campus reporting and oversight, that Prop. 98 settle-up would be finalized later through the statutory certification process, and that NextGen 9-1-1 now includes one-time funding, quarterly reporting, an independent technical review, and a state audit. Members also discussed the HAP homelessness funding increase to $900 million and the balance between accountability and timely distribution of funds. The most extended exchange centered on comparisons between funding for veterans and Medi-Cal/immigrant health coverage. Republican members argued the budget spends far more on undocumented immigrant services than on veterans, while Democratic members and Finance staff responded that the comparison was misleading because many veterans’ services are federally funded and the state budget also includes dedicated veteran support. The chair and other members emphasized that the budget reflects difficult tradeoffs and that the package protects vulnerable populations, preserves health care access, and advances affordability. No final vote was described in the excerpt, but members indicated support for the overall package and said they would support it on the floor.

Transcript Highlights:

• The next month she went to pay the 150, and there was a $87 late fee, and I provided proof of... ...I
• The next month she went to pay the 150, and there was a $87 late fee, and I provided proof of... have
• from us I would note the allocations from us I would note the additional<01:21:25.880> layer<
• uh throughout the state that allocators uh throughout the state that also<01:21:30.880> manage
• We're not going to charge $87 late fees.

Keywords: 1187, senate, all

Transcript Highlights:

• There are a number of exemptions and exclusions on certain wastes and fees.
• Examples include fees from federal agencies, some of the fees provided by or provided to local governments
• There are a number of exemptions and exclusions on certain wastes and fees.
• Examples include fees from federal agencies, some of the fees provided by or provided to local governments
• fees service charges assessment landfill fees service charges revenue<00:33:12.039> from<00:33

Keywords: 1187, senate, all

Transcript Highlights:

• The state ultimately decided to allocate funding to schools that was $6.2 billion above that minimum.
• These fees are paid once every five years.
• And then third is raising teacher credential renewal fees from $100 to $125.
• And we've allocated the funding for that, yes. All right.
• We strongly support the allocations to community schools.

Keywords: 987, senate, all

Summary: The committee heard the Governor’s May Revision proposals for TK-12 education, beginning with a Proposition 98 overview from the Department of Finance and the Legislative Analyst’s Office. Finance said the May Revision increases the Proposition 98 minimum guarantee by about $6.4 billion relative to the Governor’s January budget across the three-year window, with higher guarantees in each year, continued full payment of the outstanding settle-up obligation in 2024-25, and a reduced $3.9 billion settle-up amount in 2025-26. Finance also described larger mandatory and discretionary deposits into the Proposition 98 reserve, ending with an estimated $10.3 billion reserve balance. The LAO said the overall estimates were reasonable, but urged the state to fully fund the guarantee and use other budget tools, including reserves, to manage volatility rather than delay settle-up payments. Members questioned the remaining settle-up amount, the risk of revenue volatility, and possible alternatives such as advance payments or other reserve strategies. The second panel covered Department of Education proposals and trailer bill language. Finance outlined additional state operations funding and positions for CDE, along with trailer bill changes affecting community schools, preschool, literacy, special education, charter accountability, teacher-related programs, and other technical cleanups. The LAO supported the overall structure of the package but recommended changes to several items, including rejecting some additional one-time community schools, literacy, math, multilingual screener, and inclusive college proposals, while supporting the ongoing LCFF and special education increases and raising concerns about the paid pregnancy disability leave proposal’s cost and implementation complexity. CDE supported the special education increase, community schools, literacy and math investments, homelessness funding, and the paid pregnancy leave proposal, while asking for more funding for county office support, clearer homelessness definitions, and continued preschool parity. Members also asked about immigrant student supports, community schools reporting, and the rationale and cost estimate for the paid pregnancy leave proposal, which Finance estimated at $218 million annually. The final panel addressed the Commission on Teacher Credentialing. Finance proposed additional legal staffing for SB 848 implementation and educator misconduct caseloads, a fee increase for clear credential renewals from $100 to $125, a $5 million one-time Proposition 98 investment to build a transcript review platform, $2 million ongoing for transcript review staffing, and $30 million one-time for the statewide residency technical assistance center. The LAO had no concerns about the legal staffing, supported the transcript review platform if the fee increase and ongoing staffing were adopted, and recommended rejecting the residency technical assistance center expansion because existing funding runs through 2029. The Commission explained that the misconduct workload has grown over several years, that AI would assist but not replace human review in transcript matching, and that the residency technical assistance center helps recruit and retain teachers and support rural districts. Public commenters largely supported special education, discretionary block grants, community schools, literacy investments, homelessness funding, and teacher credentialing alternatives, while some urged rejection of the settle-up proposal and preschool COLA reduction.

Transcript Highlights:

• Interest rates were at 1%, with no application fee, no closing fee, and no prepayment penalties.
• So those are the two largest allocations.
• The second allocation is $5 million.
• Allocations to Tiverton represent the second allocation to agricultural production within the portfolio
• Typically, they get the 2% management. fee and then they get a carry fee of 20% over that percentage

Transcript Highlights:

• We received that allocation in June of 2023.
• franchise fee.
• Similarly, telecom customers pay a fee per access line, and the fee per line is set by the municipality
• Despite the fees already paid by residents to be in the right-of-way, they have to pay again.
• Going forward, we do not set the fees that we... elect; the Public Utilities Commission sets those fees

Bills: HB3713, HB3953, HB4055, HB4272

Keywords: telecommunications, local exchange companies, universal service fund, rate maintenance, business expansion, broadband access, internet service, multiunit residential properties, urban areas, affordability programs, fiber-optic cables, public land, construction permits, environmental impact, notification requirements, municipal projects, infrastructure, facility relocation, public right-of-way, 1184

Transcript Highlights:

• It's a fee. >> I'm sorry. A user fee. Okay. I'm sorry.
• . fees. fees.
• >> What kind of fee would you advise? >> What kind of fee would you advise?
• 2024, you may remember the hybrid fee 2024, you may remember the hybrid fee was<01:25:02.800>
• and you do not have to pay an EV fee. and you do not have to pay an EV fee.

Keywords: 958, all

Summary: The subcommittee approved the October 15 minutes and observed a moment of silence for the victims of the UPS Worldport plane crash. The main presentation was from Transportation Cabinet Commissioner Bobby Joe Lewis on the Local Assistance Road Program/County Priority Projects Program (LAARP/CPP), which was implemented under House Bill 546 and now requires rehabilitation projects to restore roads to original condition, cap funding at $500,000 per project, use a new scoring matrix, include a local match, and submit one photograph per 300 feet of project length. He reported that the 2026-2027 cycle ran from June 1 to October 1 and drew 1,215 project applications from 107 counties and 106 cities, with total submitted project costs of about $121.1 million and about $102.3 million requested after local match. He also said 30% of submissions scored 10s and 22% scored 9s, and that the list of requests and required photos had been submitted to the General Assembly and LRC. Members asked about how scores change over time, whether roads can move from lower scores to 10s, and whether the new process gives a better picture of local needs. Lewis said scores can change based on weather and road conditions, but the new system provides more information and a more standardized evaluation than before. Several members raised concerns about the volume and size of required photographs, suggesting drone footage or video as an alternative; Lewis said the photo requirement has caused confusion and large file uploads, and he was open to considering easier ways to document conditions. Members also discussed continuity in scoring across districts, and Lewis explained that district staff appointed by chief district engineers use a handbook and scoring matrix, with the scores entered into a computer system so evaluators do not see the final score while scoring. The committee also discussed funding levels and carry-forward balances for the program. Lewis said the program began with $20 million authorized in HR92, noted underruns from completed projects, and reported a carry-forward amount that had grown to $355,432.42 available for reauthorization as of October 13. In response to questions, he said the current process concentrates applications into a short window, with 63% of applications arriving in the last few days and 417 on October 1, which created a heavy workload but was completed on time. The meeting then moved to multimodal funding priorities, with Jennifer Kersner of Kentuckians for Better Transportation introducing herself and offering condolences for the UPS aviation incident before beginning her remarks.

Transcript Highlights:

• Each of those local governments can continue to implement a local impact fee, mobility fee, concurrency
• We're also allocating $61.2 million to Florida PALM readiness, which will be allocated to our state agencies
• There's like $100 million in the base student allocation.
• Right now, there's, I think, 3.5 allocated.
• Representative Campbell, in our budget, we did allocate.

Summary: The House convened on the final day of session, observed a moment of silence for the Minnesota House Speaker Melissa Hortman and her husband, and for Representative Rosenwald’s father, then swore in and seated new members Boyles and Hodgers. The Speaker also outlined the chamber’s end-of-session priorities, including action on the budget and related conforming bills. The House then took up H.J.R. 5019, a constitutional amendment to expand Florida’s budget stabilization fund by raising the cap, requiring annual transfers, and allowing withdrawals for critical state needs. After sponsor explanations and questions about what would qualify as a critical need and how the fund might respond to possible federal funding cuts, the House adopted an amendment that added more flexibility for suspending transfers and withdrawals. The joint resolution then passed on final passage. Members next considered HB 7031, the tax package conference report. The bill repeals the business rent tax and aviation fuel tax, delays the natural gas fuel tax, creates or extends several sales tax exemptions and holidays, and makes changes affecting property taxes, local taxes, pari-mutuel taxes, and revenue distributions. Debate focused heavily on the new permanent exemption for ammunition and hunting-related items, the elimination of recurring housing trust fund and transit-related distributions, and the shift of some funding from recurring to nonrecurring status. Supporters argued the package provides tax relief and preserves annual budget flexibility, while opponents criticized the ammunition exemption and the reductions in recurring housing and transit support. The conference report was adopted and the bill passed. The House then passed HB 5017, which creates a debt reduction program funded by a recurring transfer from general revenue to retire state bonds early, and HB 5015, the state group insurance conforming bill, which directs DMS to develop a formulary management plan and codifies the administrative health insurance assessment. Finally, the chamber began explanation and questions on the General Appropriations Act conference report for fiscal year 2025-26, described as a $115.1 billion budget that is down from the current year and includes more than $12 billion in reserves. Subcommittee chairs summarized major budget areas, including K-12 education, health care, transportation and economic development, agriculture and natural resources, higher education, state administration, justice, and information technology, highlighting funding for school choice, Medicaid, housing, transportation infrastructure, Everglades restoration, workforce programs, cybersecurity, and technology modernization.

Transcript Highlights:

• The hybrid EV fee is $126 per vehicle.
• <00:44:33.200> toward 32.2 that we've allocated toward 32.2 that we've allocated toward developers
• <00:48:10.880> it where to draw the line and allocate it where to draw the line and allocate
• > was the ownership ownership fee was the ownership ownership fee was established<00:49:53.440
• the way they were they were allocated. the way they were they were allocated.

Keywords: 00:01 Call to Order and Roll Call 00:47 Approval of Minutes 01:07 Airport Projects 12:17 Riverport Projects 38:27 Electric Vehicle Charging Program 54:10 Adjournment, 958, all

Summary: The Budget Review Subcommittee on Transportation met on July 15, 2025, approved the June 4 minutes, and heard updates on aviation and riverport funding programs. Commissioner Mark Carter of the Kentucky Department of Aviation reported on the $200,000 grants for general aviation airports included in House Bill 1, saying the money is being used mainly for hangar projects, fuel trucks, parking lot resurfacing, airport equipment, crew cars, and public education efforts. He said about 25 hangar-related projects were reported, with an estimated 60 T-hangars and four or five box hangars supported, and noted that the grants are often used to match federal funds. He also said the state’s jet fuel tax revenue generates about $23 million annually, up from about $19 million in 2021, and that most airports are now compliant with the ADS-B/VOR-related reporting system required in budget language, which has improved reported operations and may help airports qualify for FAA grants. Members asked about the pace of airport projects, the limited number of contractors for hangar construction, and whether airports could finance hangars themselves. Carter said timing has generally been good, though federal projects have slowed somewhat and contractor capacity remains a challenge, and he said there is no statute preventing airports from financing part or all of a hangar project. Questions also focused on the long-term need for hangars and the effect of the jet fuel cap, with Carter saying general aviation airports still have significant hangar demand and rely on state assistance because hangars are a key revenue source. Jeremy Edgeworth of the Transportation Cabinet and Brian Wright of the Kentucky Association of Riverports then reviewed riverport projects funded through House Bill 265 and House Bill 1. Edgeworth said the cabinet’s riverport grant program awarded $500,000 in each of fiscal years 2025 and 2026 for 13 projects under an 80/20 match, and that House Bill 1 provided $7.5 million per year for public riverports with no local match. He described completed or underway projects at multiple ports, including equipment replacements, dock and road repairs, material handling upgrades, mooring cell rehabilitation, and a waterline loop at Owensboro. He said $12.6 million of the KPRCM funds had been awarded across 20 projects, with about $2.4 million still to be awarded later in the fall. Wright said the riverport investments are helping ports replace aging assets, expand capacity, and match federal dollars, but he also said the statewide capital need remains large, with the current list of top projects already in the $90 million range and longer-term needs still estimated at $60 million to $90 million. Members asked about timelines and future needs, and Edgeworth said many of the larger projects will take two to five years because of permitting and coordination with the Army Corps of Engineers. No additional votes or formal actions were taken beyond approving the minutes.

Transcript Highlights:

• Allocation presented in Section 1. We have a second.
• That allocation is for $10,000.
• change in the amount allocated.
• This allocation continues on through page 11, at the bottom of page 11, line 59, for a proposed allocation
• This allocation continues on through page 11, at the bottom of page 11, line 59, for a proposed allocation

Summary: The Joint Finance Committee met to review and vote on the fiscal year 2027 Grants and Aid Act, which was expected to be pre-filed as Senate Bill 337. Members first reviewed Section 1, covering county seat payments, paramedic operations, senior center allocations, senior center transportation, and Homeland Security grants. They approved Section 1 after discussion of how senior center transportation is being moved from DART to grant-in-aid and how some organizations can appear in both the senior center formula and the general aging category. The committee then worked through Section 2, which included one-time appropriations and the various grant categories for aging, arts/historical/recreation, economic housing or labor services, family and youth services, health or disability services, and neighborhood and community services. Members discussed several specific items, including New Castle County reassessment-related funding, Friends of Cooch’s Bridge, Slaughter Neck Community Action Organization, Plastic-Free Delaware, Love, Inc. of the Delmarva, and the Southern Delaware Horse Retirement Association. One aging line for Slaughter Neck was reduced back to flat funding after members questioned a large increase, and the revised category total was adjusted accordingly. Each of the Section 2 subcategories was then adopted. Section 3, covering fire companies and public service ambulance companies, was approved with increases across apparatus, ambulance, rescue truck, aerial truck, rescue boat, substation, and insurance rebate equalization funding. Section 4, for veterans organizations and youth programs such as Boys State, Girls State, and Trooper Youth Week, was also adopted. The committee then approved the epilogue sections, which included eligibility, audit, payment, and reporting rules; special provisions for the Wilmington Senior Center contingency; conditions tied to several one-time appropriations; withholding funding from Merri-Dell Volunteer Fire Company pending a corrective report; and reprogramming $1,485,000 from a prior SMART food program appropriation toward SNAP/WIC-related food access initiatives. The meeting ended with remarks thanking staff and noting that it was likely the last JFC meeting for two members, followed by adjournment.

Transcript Highlights:

• It's just fees. So, don't get capital. It's just fees.
• We do have some fees.
• We do have some fees. or Glen Cliff. We do have some fees.
• certain water fees and testing. certain water fees and testing.
• fees.

Keywords: 1191, senate, all

Transcript Highlights:

• Yes, for the budget, excluding the pass-throughs and fee-for-service funding.
• The current university policy does not permit differential fees on our campuses.
• So we are until 2032 going to raise those fees up to 5% annually.
• as well as future allocations to various programs.
• How are those funds allocated? Is it at the campus level, at the system-wide level?

Summary: The Assembly Budget Subcommittee on Education Finance, chaired by Assemblymember Alvarez, held a hearing focused on University of California budget issues. The committee reviewed UC core operations funding, enrollment trends, federal funding threats, Title IX implementation, and basic needs support. Major themes included the end of the Governor’s multi-year UC compact, the state’s fiscal outlook, UC’s enrollment growth, and the potential impacts of federal policy changes on research, health care, and student aid. On core funding, the Department of Finance described the Governor’s proposal to continue compact-related support, defer some payments, and authorize a cash-flow loan. The LAO recommended a smaller or no base increase, earmarking some funds for capital renewal, retiring deferrals when possible, avoiding new compact commitments, and funding UC annually rather than through compacts. UC argued that the compact has supported enrollment growth, student services, and operating costs, but said campuses face rising expenses, structural deficits, and limited reserves. Members questioned the effects of deferrals on students and discussed the need to prioritize less harmful reductions if cuts become necessary. The enrollment panel focused on UC’s growth in California resident enrollment and the nonresident replacement plan at Berkeley, UCLA, and UC San Diego. The LAO recommended maintaining the current enrollment target, funding enrollment separately from base increases, pausing the nonresident replacement plan, and holding enrollment flat in 2027-28. UC said it has already met compact enrollment goals, grown California undergraduate enrollment by about 18,800 students, and that further growth depends on ongoing state support. The committee also discussed the cost of enrollment growth, possible differential nonresident tuition, and a reporting request for UC to analyze the nonresident replacement approach; the motion to adopt supplemental reporting language passed. The hearing also covered federal funding risks, with the LAO and UC warning that federal changes could affect research grants, medical center reimbursement, and student financial aid. UC said research cancellations and suspensions are disrupting labs and graduate student support, while federal health policy changes could increase uncompensated care at UC hospitals. In the Title IX update, UC described its systemwide civil rights structure, annual student training, and campus support offices, and members praised the work while asking about ongoing concerns and intersegmental collaboration. The final basic-needs item began with Finance stating the Governor’s budget does not change ongoing support, but the transcript cuts off before further discussion or action.