Transcript Highlights:

• The imposition of fines or assessment of costs has not served as a deterrent or motivation for members
• In fact, sometimes it cost me money to be safe here. Sometimes I pay on the money that I get here.

Bills: HB18, SB 54, SB 10, HR 76, HR 77, HR 78, HR 82, HR 83, HR 88, HR 89, HR 93, HR 94, HR 95, HR 98, HR 101, HR 102, HR 104, HR 105, HR 107, HR 108, HR 109, HR 110, HR 111, HR 112, HR 113, HR 123, HR 125, HR 79, HR 80, HR 81, HR 84, HR 85, HR 86, HR 87, HR 90, HR 91, HR 92, HR 96, HR 97, HR 100, HR 103, HR 106, HR 114, HR 115, HR 116, HR 117, HR 118, HR 119, HR 120, HR 121, HR 122, HR 124, HB 18, SB 54, SB 10, HB 8

Keywords: HB 18, Texas Legislature, quorum break, quorum-busting, legislative walkout, absent legislators, political contributions, campaign finance, political expenditures, legislative caucus, specific-purpose committee, Texas Ethics Commission, civil penalty, show cause order, district court, Fifteenth Court of Appeals, session fundraising, travel lodging food expenses, legislative session, compelled attendance

Bills: SCR 22, SB 53, SB 204, SB 266, SB 268, SB 291, SB 292, SB 296, SB 304, SB 305, SB 413, SB 447, SB 455, SB 462, SB 493, SB 504, SB 519, SB 522, SB 532, SB 541, SB 667, SB 670, SB 673, SB 681, SB 687, SB 711, SB 746, SB 765, SB 783, SB 827, SB 850, SB 860, SB 888, SB 897, SB 901, SB 927, SB 955, SB 963, SB 984, SB 989, SB 993, SB 996, SB 1023, SB 1033, SB 1058, SB 1062, SB 1101, SB 1119, SB 1172, SB 1173, SB 1215, SB 1220, SB 1227, SB 1228, SB 1229, SB 1238, SB 1239, SB 1245, SB 1248, SB 1254, SB 1259, SB 1273, SB 1277, SB 1302, SB 1332, SB 1341, SB 1346, SB 1350, SB 1352, SB 1353, SB 1355, SB 1358, SB 1370, SB 1371, SB 1378, SB 1403, SB 1404, SB 1415, SB 1437, SB 1448, SB 1450, SB 1464, SB 1493, SB 1494, SB 1537, SB 1566, SB 1569, SB 1589, SB 1598, SB 1644, SB 1709, SB 1719, SB 1729, SB 1733, SB 1744, SB 1772, SB 1810, SB 1841, SB 1895, SB 1930, SB 2039, SB 2289, SB 2312, SCR 1, SCR 6, SCR 27, SCR 32, SB 2232

Keywords: mental health, court proceedings, notice requirements, legal filings, electronic documents, parental rights, education, school trustees, training, handbook, tax collection, managed audits, taxpayer rights, dispute resolution, penalty, health care, licensing, complaint procedure, disciplinary action, law enforcement

Transcript Highlights:

• . allocation. allocation.
• our asset allocation study. our asset allocation study.
• Representative Leduc. asset allocation. And the asset asset allocation.
• normal cost. normal cost. Thank<01:31:50.360> you,<01:31:50.440> Ms.
• And so, just um cost.

Keywords: 1187, senate, all

Transcript Highlights:

• And that runs your design cost up.
• And we want to keep our design cost at about 15% of what our total construction cost is.
• actual construction cost is. actual construction cost is.
• estimates may not end up being what the actual cost might be because of rise in cost and so on and so
• <00:28:56.159> to funding received that is allocated to funding received that is allocated

Keywords: 00:02 EEC – State-Owned Dams 21:07 EEC – Grid Resilience Grant Funds 37:24 Adjournment, 958, all

Summary: The committee heard presentations from the Department for Environmental Protection and the Office of Energy Policy on Kentucky’s state-owned dam repair program and the electric grid resilience program. Commissioner Tony Hatton explained how state dams are defined and classified under Kentucky law, the criteria used to prioritize repairs or decommissioning, and the status of several projects funded in the last biennium. He said the department is using a design-bid-build process, with major work planned or underway at Willisburg Lake, Big Bone Lick State Park Dam, Clemens Lake Dam, Marion County Sportsman’s Dam, Chinoa Lake Creek/Canning Creek Dam, and Lake Malone, and that $0.5 million is reserved for routine repairs. He also described the timeline and cost pressures, noting that construction seasons and bid uncertainty can affect schedules and estimates. Members asked several questions about whether the estimates were current, how accurate the bids tend to be, why the process takes so long, and whether it would be better to fund design separately before construction. Hatton said the estimates are the best current engineering estimates, that costs often stay within about 10% but can vary, and that the overall process is usually closer to two years than four, though delays can occur. He also said all of the allocated dam funds must be available before bids can be let. The committee discussed whether design work can become stale if construction is delayed. Kenya Stump then updated the committee on Kentucky’s electric grid resilience program under federal Infrastructure Investment and Jobs Act funding. She said Kentucky has received years one through three of the five-year program and has allocated funds to state park electric systems and municipal utilities, with years four and five not yet received. She identified Ken Lake State Park and Kentucky Dam Village as the two state park projects in progress, and Owensboro, Princeton, Williamstown, and Hopkinsville as the municipal projects selected through a competitive process. She said the projects are under contract or in final negotiations, with municipal construction expected to begin in the first quarter of 2026 and finish by the end of 2026, and explained that the work includes line, pole, transformer, meter, and outage-management upgrades. Members asked about the relationship between this program and prior park appropriations, the timing of agreements with Parks, and whether the park systems could eventually be transferred to the local electric cooperative; Stump said the park agreements are imminent and that the upgrades are intended to bring the systems up to code so the cooperative can maintain them. No votes were taken, and the chair adjourned the committee until the following Wednesday, with a possible time change to avoid a scheduling conflict.

Transcript Highlights:

• <00:40:14.480> doing allocate s asset allocation in doing allocate s asset allocation in doing
• up the cost of this unfunded liability. up the cost of this unfunded liability.
• $200 of their cost of health insurance. $200 of their cost of health insurance.
• that actual cost that actual cost >> the<01:40:41.199> state.
• . cost. cost.

Keywords: 958, all

Summary: The meeting opened with a quorum call, the Pledge of Allegiance, a prayer, and approval of the prior meeting minutes. The first presentation was from Bo Craycraft of the Judicial Form Retirement System, who gave an update on investment performance, asset allocation, cash flow, and projected employer costs. He reported strong fiscal year 2025 investment results, with both the legislative and judicial retirement plans outperforming their actuarial assumed rates of return and benchmarks, driven largely by U.S. equity performance. He also noted the plans remained near their target asset allocation and continued to experience negative cash flow, though he said that was manageable in context of strong asset growth. Craycraft then discussed a recent experience study and actuarial assumption changes, especially a revised salary growth assumption and a higher cash balance interest credit rate. He said these changes increased projected employer costs, with contributions rising from about $700,000 to a projected $2 million in later years, though he expected the eventual 2025 valuation and investment gains to reduce that estimate. Members asked about mortality assumptions, the impact of the experience study on liabilities, and the sharp increase in the judicial plan’s projected employer cost. Craycraft explained that the increase was driven mainly by the updated assumptions and that no other major plan changes were involved. At the chair’s request, Craycraft also addressed the recent rise in Medicare Advantage premiums for the plan’s health coverage, saying the 2025 increase was largely tied to Part D changes and the Inflation Reduction Act and had been about 45%, but that future growth was expected to be under 5%. After his presentation, the committee moved to the Kentucky Public Pensions Authority update, where the next speaker began by saying the funds had exceeded actuarial assumed returns for the fiscal year.

Transcript Highlights:

• , and the cost for staff that have been mobilized down there.
• Material cleanup that's going on, so that'll be some of the initial costs.
• The cost of making CAL FIRE year-round is minimal compared to the cost of continuing. response to these
• allocated.
• So could somebody from staff elaborate on the cost of going to the 66-hour workweek?

Transcript Highlights:

• Okay, HB 1 is the general appropriation bill that outlines how the state will allocate funds for the
• DOC, $3.5 million for various disaster close-out costs, and $1.5 million for the state's cost share for
• It expands the eligibility use of the local revenue fund to help alleviate local costs incurred from
• It makes adjustments to the self-insured fund allocation caps and the fiscal responsibility measures.
• The annual allocation to the local entities can be found on pages 40 through 43 of this bill.

Bills: HB1, HB2, HB3, HB312, HB313, HB314, HB383, HB983, HB1126, HCR3

Keywords: state budget, appropriations, education funding, public health, social services, government operations, state institutions, capital outlay, budget, infrastructure, appropriation, general obligation bonds, bond authorization, capital improvement, financial management, state treasury, funding, state general fund, local government, fiscal year

Transcript Highlights:

• Allocating that funding without any more specificity is a concern.
• And costs to be repaid by producers.
• And then the ongoing cost of the positions.
• While the funding set aside for State Parks is allocated for other purposes, there are other bond allocations
• We do have full funding allocated for the project.

Keywords: 988, house, all

Transcript Highlights:

• costs, it says here the deficiency bill will provide more funding than needed.
• We have the cost of the cost of the cost... June 12 pay date. Could you repeat that?
• We have the cost of the cost of the cost...
• prescription drug costs. ...management company now that is helping to reduce overall costs in prescription
• drug costs.

Keywords: 962, all

Summary: The Finance Advisory Committee approved the minutes from its May 14, 2026 meeting and then considered four fiscal transfers. FAC 2026-9 for the Office of the State Controller transferred $4.345 million among fringe benefit accounts in the General Fund and Special Transportation Fund. Members questioned several employee benefit accounts, including active and retiree health care, Social Security, higher education alternative retirement, and OPEB; agency staff explained the transfers were based on updated year-end projections, with some accounts showing surpluses and others needing additional funds. The item was approved, with two no votes noted. FAC 2026-10 for the Military Department transferred $150,000 from the Honor Guards account to personal services and Governor’s Guard accounts to cover operational needs, and it was approved without opposition. FAC 2026-11 for the Department of Social Services transferred $3.3 million among accounts. Most of the discussion focused on a surplus in the substance use disorder waiver/reinvestment account, lower-than-expected TANF/TFA caseloads, federal family planning backfill requirements, and staffing challenges in eligibility operations. DSS said some funds remained unused because a residential care vendor did not enter into a contract, some reserves were intended for future multi-year investments, and eligibility staff require 12 to 18 months of training; the item was approved. FAC 2026-12 for the Department of Children and Families transferred $3.05 million among accounts for year-end operational needs. Members asked about closures of day treatment and community-based prevention programs, and DCF said children were transitioned to other providers without service interruption, with closures driven by provider decisions and financial viability. DCF also explained that some prior funding had been used as gap funding and that ongoing support had been built into the budget. The committee approved the transfer and then adjourned.

Transcript Highlights:

• OF THAT FLORIDA WAS ALLOCATED $111.9 MILLION FOR ADULT YOUTH AND DISLOCATED WORKERS.
• BUT BEFORE I GET TO THE LOCAL BOARD ALLOCATION THERE ARE TWO THINGS THAT ARE PULLED OFF THE TOP.
• IT ALSO IS WHERE YOU WOULD SEE THE ADMINISTRATIVE COSTS YOU CAN SEE $2.4 MILLION HERE ALLOCATED FOR ADMINISTRATIVE
• COSTS FOR THEIR ADULT AND DISLOCATED WORKERS AND IN THIS CASE THAT 30% OF THEIR WORKER BUDGET.
• TO THEIR COSTS IS ABOUT 14%.

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
• and lower the cost of water dramatically if you can find ways to do that.
• So that adds to the cost ultimately of the recovery of these minerals as well.

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:

• Is there a cost reimbursement?
• Is it a cost reimbursement process that the Madam Chair, is there a cost reimbursement, is it a cost
• But a concern is the cost.
• Labor costs go up with that demand.
• And the school safety allocation that every school district gets is an important allocation, and every

Summary: The subcommittee first heard an overview from Department of Education Chancellor Paul Burns on Florida’s K-12 governance structure and major divisions, including early learning, public schools, safe schools, school choice, and accountability. He highlighted school readiness and VPK, teacher preparation and licensure, school safety functions, scholarship and virtual/home education programs, and FAST progress monitoring. Burns also cited statewide gains such as higher mid-year reading performance, a record graduation rate of 89.7%, and record CTE enrollment, while members questioned the meaning of Florida’s “number one” education rankings, teacher pay, post-COVID learning loss, vacancies, and chronic absenteeism. St. Lucie County Superintendent John Prince then described the scale and responsibilities of a mid-sized district, emphasizing student safety, transportation, meals, hurricane shelter operations, career and technical education, teacher recruitment and retention, progress monitoring, remediation, and mental health supports. Members asked about school shelter construction standards, remediation funding, late school start times, attendance, and concordance scores; Prince argued for more flexibility for CTE pathways and noted that local districts use a mix of state and federal funds to support remediation and staffing. The committee then moved to an early warning systems panel. Burns explained that Florida law requires districts to use attendance, behavior/suspensions, course performance, FAST results, and other academic indicators to identify students needing support, with districts and families developing intervention plans. Superintendents from Putnam, St. Johns, and St. Lucie counties said chronic absenteeism is tied to achievement and NAEP decline, but causes vary by district, including poverty, transportation, daycare, family instability, travel, and student athletics. They described MTSS, PBIS, home visits, attendance letters, and community partnerships as responses. Members also discussed VPK access, full-day VPK funding, excused versus unexcused absences, and the need for earlier intervention in pre-K and K-2. Finally, Vice Chancellor Darren Norris outlined Florida’s post-Parkland school safety measures, including armed school officers, anonymous reporting, behavioral threat assessment teams, mental health training, panic alert systems, emergency drills, active assailant response policies, and firearm detection canines. Superintendents said compliance is costly and often requires shifting local funds, but they praised state grants for mental health, hardening, and mapping. They noted ongoing challenges with new mandates, capital costs, manual reporting burdens, and the need to balance safety requirements with classroom resources.

Transcript Highlights:

• of care, versus a cost analysis, which does give you an actual cost of care?
• The cost analysis study, though, will actually look at the cost, the true costs that it would take to
• The cost analysis study, though, will actually look at the cost, the true costs that it would take to
• The cost analysis study, though, will actually look at the cost, the true costs that it would take to
• It's our allocation. That's the allocation. Yes, sir. That's the allocation. Thank you for that.

Summary: The Early Childhood Committee met to receive an update from the Office of Early Childhood on Arkansas child care and early learning programs. Committee members discussed the state’s child care crisis, including reported economic losses from lack of access, the need to track access, affordability, workforce shortages, rural and infant/toddler care gaps, and the role of local leads in identifying needs across the state. The committee also approved the February 17 minutes. Office of Early Childhood staff explained their responsibilities under the LEARNS Act, including kindergarten readiness, provider quality, and access to affordable seats. They reviewed licensing, quality efforts, and the two main funding streams: School Readiness Assistance (SRA), a federally funded voucher program serving about 14,600 children with a wait list of more than 3,000, and Arkansas Better Chance (ABC), a state-funded program serving about 23,000 children, with approval to increase to 24,000 slots. Members asked about the difference between market rate surveys and cost analyses, and staff said the office is procuring both, with results expected by the end of the year. Several members raised concerns about funding levels, especially that ABC reimbursement has not kept pace with K-12 funding increases and that child care reimbursement remains below the true cost of care. Staff said ABC requires certified teachers and lower ratios than SRA, but pays less, and that some federal pre-K slots were moved into ABC to preserve continuity of care. They also explained that SRA eligibility changes, including a higher work requirement and ending a child care worker eligibility category, were made to reduce spending and serve families on the wait list. The committee discussed communication with providers and parents, technical assistance for centers, and possible future legislative action to stabilize providers and expand access, but no votes or formal actions were taken beyond approving the minutes and adjournment.

Transcript Highlights:

• 1,275 th000 slots that will be allocated 1,275 th000 slots that will be allocated uh<00:10:05.640
• consider reasonable and necessary cost consider reasonable and necessary cost of<00:11:55.000>
• the rate study as I mentioned the cost the rate study as I mentioned the cost and<00:12:20.519><
• <00:14:08.720> of<00:14:08.839> the um uh cost of the program or cost of the um uh
• cost of the program or cost of the waiver<00:14:09.560> programs<00:14:10.560> those<00

Keywords: 958, all

Summary: The Budget Review Subcommittee on Health and Family Services met with a quorum still coming together and first handled roll call and minutes. The main presentation came from the Department for Medicaid Services, with Commissioner Lisa Lee and CFO Steve Beckle giving an overview of Kentucky Medicaid, its federal-state financing structure, and the department’s 1915(c) home- and community-based waiver programs. They explained FMAP funding levels for traditional Medicaid, administration, IT, expansion adults, and CHIP, and noted the size of the program, including more than 600,000 Kentucky children eligible for Medicaid or CHIP, about 485,000 expansion adults, over 69,000 enrolled providers, and $18.5 billion in 2024 expenditures. A major focus was the waiver system, including the acquired brain injury waivers, model waiver, independence waiver, Michelle P. waiver, and Supports for Community Living waiver. The department said these waivers are intended to keep people with physical or developmental disabilities in home and community settings rather than facilities, and that many services are not covered by Medicare or commercial insurance. Officials described participant-directed services, interagency administration, and eligibility rules, including that some waiver programs use the child’s income only rather than family income. They also reported an unduplicated waiver wait list of 13,930 people and said the General Assembly had added waiver slots in the last budget, including 650 ABI slots and 1,275 more to be allocated July 1, 2025. The department also discussed a waiver rate study conducted by Guidehouse, explaining that CMS requires a defensible rate methodology because there is no Medicare or commercial benchmark for many waiver services. They said the study used cost and wage surveys, provider and stakeholder input, and aimed to improve transparency, provider stability, and rate parity. Officials reviewed prior COVID-era Appendix K rate increases and budget-driven increases, and said the budget ultimately funded rates at about 70% of the benchmark study, while preserving higher existing rates where needed so no provider would be cut. They highlighted larger differences in behavioral support and case management rates, and said a public report is available. Members asked several questions about the potential impact of federal FMAP changes, especially possible reductions in the enhanced match for expansion adults and Medicaid IT/admin activities. DMS said any FMAP reduction would require more state general fund dollars, estimating about $75 million for each 1% drop in the expansion match, while impacts on administrative IT funding would depend on the systems being built or implemented in a given year. Members also pressed for clarification on waiver wait-list procedures, funded versus filled slots, and what happens when someone on the wait list is later found ineligible. DMS said people on the wait list may not yet have been assessed, can be reevaluated if conditions change, and are still eligible for regular Medicaid state-plan services if they qualify, even if they are waiting for waiver services.

Transcript Highlights:

• We think doing so would cost around $20 million a year.
• That would be the annual ongoing cost for this year.
• How did you calculate the $7 million per year cost? The $7 million per year cost is really broken.
• is likely to have large out-year costs.
• How are we going to track those cost overruns?

Keywords: 988, house, all

Transcript Highlights:

• costs to new data center loads, it is possible that these costs will be allocated to other consumers
• And if you don't have your state system in process, where you know how to allocate those costs, then
• costs—I'll just read it—'If states have not established frameworks to appropriately allocate costs to
• You'll have to deal with cost allocation.
• Delmarva needs this to fairly allocate project costs.

Summary: The committee heard several bills focused on energy, public safety, and environmental cleanup. House Bill 455 would create a historic preservation license plate to raise funds and awareness for Delaware preservation efforts, and House Bill 471 would tighten rules and penalties for off-highway vehicles on shared private roads, with golf carts excluded. House Substitute No. 1 for House Bill 439, the Truth in E-Bike Marketing Act, would require clearer disclosures when selling electric mopeds and electric motorcycles so consumers understand classification, power, and licensing/insurance requirements. House Substitute No. 1 for House Bill 407, related to the Hazardous Substance Cleanup Act and brownfields, would shift funding for brownfield cleanup from the original realty transfer tax approach to a dedicated share of the hazardous substance cleanup fund and raise civil penalties for fraudulent acts. The committee also approved the June 18, 2026 minutes once quorum was reached. Most of the meeting centered on House Substitute No. 1 for House Bill 233, as amended, a large-load/data center bill intended to protect ratepayers from costs tied to massive new electricity users. The sponsor and Public Advocate said PJM’s warnings about a coming reliability backstop auction made it urgent to establish a Delaware framework now, requiring large energy users to sign utility agreements, cover their share of transmission, distribution, and capacity costs, and comply with curtailment and other protections. Supporters from environmental groups and some labor and business voices said the bill was needed to prevent cost shifts to households and small businesses, while opponents argued it was being rushed, could deter investment, and might unintentionally affect other industries; several asked for more time and clearer definitions. No vote was taken in the portion provided. The committee also took up House Bill 470, which would authorize Delmarva Power, with PSC approval, to build and operate utility-owned battery storage and spread costs across the customer base. The sponsor and Delmarva said the bill would improve reliability quickly and help avoid outages, while the chair expressed concern that the state had not yet fully studied whether utility-owned or competitively procured storage is the best model, noting a recent SEU storage study and broader policy questions. Supporters said utility storage could be deployed faster and help with peak shaving, while others urged a competitive process; the transcript cuts off before any final action on HB 470.

Transcript Highlights:

• million to support automation costs.
• We believe this is a low-cost, no-cost proposal.
• The total increase in the IHSS administration cost if we made adjustments to the social worker cost per
• So we increased the allocation, but still never actually finished spending the allocation.
• And so I'm going back to the single allocation so I understand that the state has updated your cost assumptions

Keywords: 988, house, all

Transcript Highlights:

• The $25 million allocated has been approved by the board.
• This allocation is going to cover more implementation.
• And training employees, so it's covering more costs of implementation.
• , and that's what the previous money was allocated for.
• If they all pick the ones that are not free, it's going to cost us more.

Keywords: 988, house, all

Transcript Highlights:

• Then for the... ...cost increases.
• The cost will vary dramatically.
• So for twice the amount of funding, it's going to cost to build 500 at Merced that it costs.
• It's going to cost to build 500 at Merced, that it costs at Berkeley to create a bed.
• The cost will vary dramatically. politically. The cost will vary dramatically.

Summary: The Assembly Budget Subcommittee on Education Finance held an extended hearing focused primarily on University of California budget issues, enrollment, housing, and Title IX. Chair David Alvarez opened by noting the governor’s proposed 8% ongoing General Fund reduction to UC, the deferral of compact funding, and the College of the Law budget item, while emphasizing that no votes would be taken that day. Public commenters, including UC Davis employees and lecturers, urged restoration of UC funding and opposed the hiring freeze, saying cuts would worsen staffing shortages, reduce research capacity, and harm students and patients. On UC core operations, the Department of Finance said the governor’s budget maintains the compact but defers $240.8 million in ongoing support and continues a planned 7.95% reduction, while the LAO recommended rejecting the deferrals and instead making any changes in the budget year. UC San Diego’s chancellor and UC Office of the President argued the cuts and deferrals would create major campus shortfalls, force hiring freezes, larger class sizes, fewer course offerings, delayed projects, and possible layoffs. Committee members questioned whether cuts could be shifted away from students and toward administration, discussed UCOP reserves and bond debt, and noted that UC’s budget structure makes the campus-level impact larger than the headline reduction. The committee also reviewed enrollment trends and nonresident replacement. The LAO said UC resident enrollment has grown and recommended revisiting 2026-27 targets and pausing the nonresident replacement plan if state funding does not improve. UC said it has exceeded California undergraduate enrollment and nonresident replacement goals, but warned that continued growth without funding would force enrollment reductions and harm quality. Members discussed the role of nonresident and international students, tuition rates, and the value of UC as a pathway for California students and a source of talent for the state. A separate housing item covered the state’s Higher Education Student Housing Grant Program. UC reported that recent bond savings could support additional affordable beds at UC Davis and UC Santa Barbara, but the LAO and Finance noted the Legislature would need to decide how to use the $6.2 million in savings from the original projects. The committee also heard a Title IX update from UC’s systemwide civil rights office, which described campus Title IX structures, training, and policy enforcement, and said the system has been working to improve confidentiality guidance and streamline complaint processes after survey feedback showed confusion and lengthy procedures.

Transcript Highlights:

• of care, versus a cost analysis, which does give you an actual cost of care?
• And we spend a great amount of time looking at the cost of K-12 education, months and... ...the cost
• The cost analysis study, though, will actually look at the cost, the true costs that it would take to
• It's our allocation. That's the allocation. Yes, sir. That's the allocation. Thank you for that.
• It's our allocation. That's the allocation. Yes, sir. That's the allocation. Thank you for that.

Summary: The Early Childhood Committee met for an update from the Office of Early Childhood within the Department of Education. Members heard that the office’s goals under the LEARNS Act are to improve kindergarten readiness, support families, ensure quality providers, and expand affordable, accessible child care. Staff reviewed the local lead system, licensing, quality efforts such as CLASS and QRIS, and the two main funding streams: School Readiness Assistance (SRA), a federal CCDF-funded voucher program serving about 14,600 children with a wait list of a little over 3,000, and Arkansas Better Chance (ABC), a state-funded program serving about 21,000 children with authority recently increased to 24,000 slots. A major topic was the difference between market rate surveys and cost analysis studies. Officials said the department is procuring both through an RFP, hoping to begin by August and have results by late in the year. Members pressed for current reimbursement levels, the gap between ABC and SRA funding, and whether ABC funding should be increased to better match costs. Staff explained that SRA rates are set at 75% of the market rate, while ABC per-child funding is much lower, and that ABC slots are limited by the overall allocation. They also explained that some ABC slots were increased by moving children from a discontinued federal pre-K arrangement into ABC to preserve continuity of care. Committee members raised concerns about rural access, infant and toddler shortages, provider stability, workforce pay, and communication with families and providers. Officials said local leads are now helping identify underserved areas, that no county with absolutely no care is known, and that the department is trying to get a truer statewide count of children and providers. They also described efforts to improve communication through monthly provider calls, website postings, and direct case contacts with families. Members discussed possible funding increases, including ideas to reduce the SRA wait list and raise ABC funding, but no formal vote or action was taken beyond approving prior meeting minutes and receiving the update.