Transcript Highlights:

• </c> have control over their local budget. have control over their local budget.
• </c> accountable somewhere along the way. accountable somewhere along the way.
• > may</c> recovery plan.
• The recovery plan may recovery plan.
• such plan recovery plan and to oversee such plan to<02:02:03.119><c> leverage</c><02:02:03.599><c> resources

Committee: House Education Funding

Transcript Highlights:

• Back at the time that your administration's plans were put together, planning was done by the coalition
• Is it local property taxes, county property taxes, county local option sales tax, or city local option
• These requirements will very likely kill many long-planned projects and community transportation plans
• What the bill is asking us to do is to rethink how we do planning.
• What the bill is asking us to do is to rethink how we do planning.

Bills: HF4807

Committee: House Transportation Finance and Policy

Transcript Highlights:

• We give local communities that local control to build their own programs.
• It may not in that local institution.
• Just want to lean into appreciating the need for accountability and also recognizing that accountability
• But I think from a planning perspective, if you're a college, you have to plan as if they won't, because
• through local general obligation bonds.

Summary: The committee heard an overview of the California Community Colleges budget proposal, including Proposition 98 funding, a 2.41% COLA for apportionments, enrollment growth funding, repayment of an apportionment deferral, and one-time investments for a student support block grant and deferred maintenance. The Department of Finance described the Governor’s package as providing significant new resources, while the LAO recommended prioritizing COLA and enrollment growth within available funds but raised concerns about some smaller proposals, including making the Healthy School Food Pathways Program ongoing and adding more funding for credit for prior learning before outcomes are known. The Chancellor’s Office supported the COLA, enrollment growth, and one-time investments, and said current projections suggest enrollment growth closer to 3%, with about $85 million to $90 million in ongoing costs if fully funded. Members focused heavily on enrollment growth, the 10% district cap, and whether the state should continue funding growth in the current year and budget year. The Chancellor’s Office said some districts, especially in the Inland Empire and Central Valley, are growing rapidly and that about seven districts are above the cap, with roughly 1,563 FTES and about $30 million in ongoing costs tied to that issue. Members also discussed hold-harmless districts and whether declining campuses should be required to produce turnaround or right-sizing plans. The Chancellor’s Office said districts are already having local conversations and that state funding provides time to adjust, but no formal plan requirement was proposed. The committee then took up common course numbering, where the Chancellor’s Office said all 115 community colleges have implemented the first phase and more than 550,000 students enrolled in the first six commonly numbered courses. The office argued that CCN improves clarity but does not yet guarantee that credits will transfer with full value across UC and CSU, because articulation is still handled campus by campus and can require more than 3,500 separate reviews. Members expressed concern that students can still be forced to retake courses such as calculus or ethnic studies even when they have the same common number, and urged the systems to develop a stronger statewide articulation mechanism tied to outcomes and transparency. The item was left open. Finally, the committee heard the Governor’s proposal to make Calbright College’s funding ongoing at $53.1 million. The LAO recommended instead transitioning Calbright to the student-centered funding formula, with one-time bridge funding in the meantime, arguing the Governor’s proposal lacks a clear enrollment-based rationale and performance expectations. Calbright’s leadership defended the college’s competency-based, flexible model for adult learners, citing more than 6,800 students served, over 2,200 certificates awarded, and wage gains for graduates; they said enrollment is expected to grow from about 7,000 students now to roughly 8,000 to 9,000 next year and around 10,000 over the next couple of years. Members pressed for clearer enrollment and funding data before deciding how Calbright should be funded going forward.

Transcript Highlights:

• I know several of you have worked in local governments and MPO boards.
• The Active Transportation Plan is not at the The Active Transportation Plan is not itself a budget, and
• It's about facts, transparency, and accountability.
• Our dental program offers out-of-state coverage, just like our health plans.
• plan.

Summary: The Joint Legislative Audit Committee met to consider new audit requests. The State Auditor reported 10 JALAC audits in progress, with several expected to be published over the coming months, and noted that litigation is delaying the Huntington Beach air show audit. The committee approved a consent calendar of four audit requests covering UC library resources, law enforcement information sharing, EDD unemployment insurance claims, and Housing and Community Development housing development monitoring. The committee then heard Assembly Member DeMaio’s request for an audit of SANDAG’s road project management and use of transportation funds. DeMaio argued the audit was needed to restore public trust and examine whether restricted funds, voter-approved revenues, and project commitments were properly handled. SANDAG’s CEO and CFO said the agency manages many funding sources, undergoes frequent audits, and has strengthened internal controls; they said the requested review would be duplicative of existing oversight. After debate, the committee voted the request down. Next, Senator Valadares presented an audit of the Board of State and Community Corrections’ Proposition 47 grant administration, focusing on whether grantees and BSCC are accurately reporting outcomes and recidivism data and whether oversight is sufficient. BSCC said the program already has multiple oversight layers, including Controller audits, and cited reported improvements in homelessness, employment, and recidivism outcomes. The committee approved the audit. Finally, Senator Cortese’s audit of CalHR’s dental benefits procurement and contract oversight was heard, with supporters citing long-standing benefit caps, provider network problems, and retirees’ out-of-pocket costs. CalHR said its network remains strong, that it recently ran an RFP adding MetLife as a second carrier starting in 2027, and that it uses performance guarantees. The committee approved that audit as well, then completed add-on votes approving the earlier consent calendar items before adjourning.

Transcript Highlights:

• That account is established to account for a number of mostly health-related special revenue accounts
• The revenues in these accounts are normally not specifically dedicated, and spending from these accounts
• Medical alone accounts for $4 billion of general funds spent within this committee's account list.
• </c> talking about subsidized healthcare plan talking about subsidized healthcare plan programs<00:10
• for each enrollee in their plan.

Transcript Highlights:

• There's a The defined contribution portion of the plan includes an employee-funded savings account that
• In Plan 2, member accounts receive fixed interest as determined by DRS, and that is currently at 2.75%
• In Plan 3, members may invest their accounts in a variety...
• In contrast, for Plan 3, members may access the funds in their accounts upon separation.
• Members might like to be in Plan 3 and watch their account balances go up.

Committee: Joint Select Committee on Pension Policy

Transcript Highlights:

• in close partnership with our local targeted and accountable investments at the state level, working
• We have strengthened our accountability measures so that that doesn't reoccur, that local jurisdictions
• are held accountable.
• The accountability starts with us, but also it's a shared responsibility with the local jurisdictions
• I would add that this is going to be really important for locals to plan their pipeline, having that

Transcript Highlights:

• personal bank account.
• We had to send our plan in.
• So we had to send our plan in. So currently they are approving our plan, which they already have.
• So we have that back. ...plan in.
• Are these interest-bearing accounts, or will this be an interest-bearing account? No. Follow-up.

Summary: The committee took up a long agenda of appropriations and budget bills, with most of the early action focused on retirement cost-of-living adjustments. Senate Bills 1144, 1145, 1146, 1148, and 1149 all advanced, covering COLAs for retired teachers, public employees, police, judges, and a special “tweener” group of police and fire retirees. Members questioned the actuarial impacts, funded ratios, and timing of the apportionment changes, and the author explained that the retirement bills were based on TRS or system actuarial estimates and that the 2036 apportionment cutoff could be revisited by future legislatures. SB 1149 was described as a one-time $25,000 payment for a limited group of older retirees, with estimated costs of $3.5 million for police and $5.8 million for fire. Most of these retirement measures passed on votes of 23-24 ayes with one nay. The committee also considered House Bill 4071, creating the Oklahoma Dream Accounts Investment Program to match the federal “Trump accounts” with up to $250 per eligible child, capped at $12.5 million. Democrats criticized it as a poor use of funds and objected to the federal program’s uncertainty and the emergency clause; the bill passed 17-8. House Bill 4072 created a taxpayer endowment trust fund by moving $200 million from the Revenue Stabilization Fund and redirecting a portion of future gross production tax overages into the new fund until it reaches $1 billion, after which it would generate future revenue streams. Members raised concerns about investment risk, oversight, and whether the fund was a “shell game,” but it passed 18-6. Several agency budget and limit bills were also approved, including HB 4057 for $25 million to expand the Bureau of Narcotics headquarters, SB 1158 for $252,000 to fund medication for minors in custody, SB 1164 for the Department of Mental Health and Substance Abuse with $1.2 million in new appropriations plus $5.97 million for the 988 revolving fund, and HB 4040 for the Department of Health rural health transformation cash-flow needs tied to federal reimbursement. The committee also passed HB 4051 on FMAP preservation, SB 1161 for the Oklahoma Health Care Authority, SB 1162 for the State Department of Health, and SB 1163 for DHS, where the largest discussion centered on avoiding an Advantage waiver waitlist, SNAP administrative costs, and child abuse multidisciplinary care centers. Most of these bills passed with little or no debate, though some drew questions about federal matching dollars and reporting requirements. Education-related items were also approved, including HB 4030, the State Department of Education budget limits bill, which maintained prior-year funding for textbooks, early intervention, literacy coaching, school security, and other line items; HB 4044 for OEQA’s growth-based teacher compensation and NBCT stipends; HB 4065 for school security funding at the School of Science and Math; HB 4067 for the School for the Blind and School for the Deaf; and HB 4038 directing $5 million of ODOT FY27 appropriations to the eight-year work plan. The committee also advanced HB 4046, which directs funding to the Military Readiness, Innovation, Education, Aviation Revolving Fund for projects including McAlester, Fort Sill, Altus, and Enid, with members questioning why additional money was needed so soon after prior appropriations. Throughout the meeting, most measures were reported as passed by wide margins, with a few dissenting votes on bills viewed as controversial or as reallocating funds away from other priorities.

Transcript Highlights:

• Another two big problems with it: one, it oversteps local plans completely.
• This only gives local governments the short end of the stick. This is a 50-year vested plan.
• One, it oversteps local plans. to be housing at all. Another two big problems with it.
• One, it oversteps local planning completely.
• Local communities want to be able to plan their way of life.

Summary: The Committee on Rules heard a long agenda of growth-management, elections, education, housing, and professional-licensing bills. The first major item was SB 354 on “Blue Ribbon Projects,” a framework for very large planned developments on at least 15,000 contiguous acres with 60% reserved area. After adopting a strike-all amendment, senators debated whether the bill adequately protected conservation land, local government authority, neighboring property, concurrency, and multi-county projects. Supporters argued it would create more orderly, master-planned growth and preserve large areas of land; opponents said the reserve areas were too weakly protected and the bill preempted local control. The committee adopted the amendment and then reported the bill favorably on a party-line style roll call, with Chair Pasadomo and Vice Chair Jones voting no. The committee then approved SB 620 on candidate qualifying, which requires candidates to disclose any foreign citizenship and, through amendments, adds a 2026 congressional qualifying framework tied to apportionment and redistricting, including revised petition rules and deadlines. Members discussed disclosure, redistricting, and candidate vetting, and the bill was reported favorably. CS/CS/CS/SB 1452, a Department of Financial Services bill, was also amended and approved; the amendments addressed My Safe Florida Home, unclaimed property, firefighter hiring, workforce housing code accommodations, and related financial-services issues. CS/CS/SB 1620, the school board members’ bill of rights, was narrowed by substitute amendment to focus on access to records, fiscal transparency, NDAs, and related rights, and it passed after supportive testimony from school board and superintendent representatives. The committee also passed CS/HB 245, which replaces the term “child pornography” with “child sexual abuse material,” after debate over whether the terminology change could affect the seriousness of the crime or existing case law. SB 1548, a Live Local/affordable housing update, was reported favorably with little debate. Finally, the committee approved the veterinary medicine bill creating veterinary professional associates, after amending it to require immediate supervision by a licensed veterinarian. Throughout the meeting, many public commenters and senators weighed in on the balance between development and conservation, local control, and the scope of state regulation, with several bills drawing both strong support and strong opposition before final votes.

Transcript Highlights:

• planning reflects community needs.
• Round two was a planning grant, and we really looked through that planning grant process.
• I mean, those are two of the four plans that we said that we I mean, those are two of the four plans
• They could use their savings account and the prudent reserve in order to meet the needs locally.
• planning cycles.

Summary: The subcommittee heard presentations from the Department of State Hospitals (DSH), the Commission for Behavioral Health, and the Department of Health Care Services (DHCS) on budget proposals and implementation updates. DSH outlined its proposed 2026-27 budget, including funding for patient operating expenses, IST solutions savings, conditional release program costs, LPS bed allocation changes, electrical infrastructure projects at Napa and Patton, SB 380 transitional housing feasibility work, and expanded dental services at Metropolitan and Patton. DSH also reported that it has met court-ordered IST treatment benchmarks in the Stiavedi v. Clinton case, with average time to initiate treatment down to about five days and pending placements reduced to roughly 250, while noting that Proposition 36 could increase referrals and SB 1323 may divert some individuals earlier into community-based treatment. Members asked about rising outside hospitalization costs, Medicare enrollment, the timing and structure of capital projects, and whether IST solution funds are being fully used; DSH said the savings reflect slower-than-expected ramp-up of community programs and that the Central California FACT replacement program is still on track for January 2027 activation. The Commission for Behavioral Health described its role under the Behavioral Health Services Act (BHSA), including data, evaluation, grantmaking, technical assistance, and transparency work. It highlighted the new statewide Innovation Partnership Fund, a five-year, $20 million-per-year program with small and large grant categories; the first RFA drew strong interest, with more than 400 questions and over 1,000 bidders’ conference participants. The Commission also discussed a proposed extension to spend down about $4.1 million remaining for the Alcove Youth Drop-in Center grants so sites can finish implementation and Stanford can complete the final evaluation. Members asked about grant duration, whether projects can be renewed, what qualifies as innovation, and whether the fund could support service delivery rather than awareness campaigns or training; the Commission said awards are expected to be three-year contracts and that proposals must be new or meaningfully expanded approaches that support BHSA priority populations. DHCS reviewed major behavioral health changes under CalAIM and BH Connect, including peer support, mobile crisis, contingency management, traditional health care practices for tribal members, updated specialty mental health access criteria, and new substance use treatment standards based on ASAM’s fourth edition. DHCS reported strong contingency management results, with more than 13,000 members served and 95% testing negative for stimulant use during treatment, and said 21 Indian health care providers have been approved to offer traditional health care practices. It also described BH Connect initiatives such as the $1.9 billion access reform and outcomes incentive program, workforce investments, evidence-based practice expansion, IMD participation by four counties, and transitional rent services. On BHSA implementation, DHCS said it is not tracking individual county contract cuts but is monitoring county plans and statewide outcomes, while stakeholders raised concerns about local prevention and service gaps. DHCS also outlined its H.R. 1 implementation strategy, including outreach, streamlined renewals, exemptions for disabled, substance use, and medically frail individuals, and proposed clinic navigator and outreach funding; it said it has not yet produced a focused estimate of H.R. 1 impacts on behavioral health populations. The discussion ended with DHCS noting that B-CHIP bond funding has supported 437 infrastructure projects, creating 546 new or expanded facilities and more than 9,500 residential beds across the state.

Transcript Highlights:

• It requires reasonable planning, monitoring, and accountability, the same expectations already placed
• And many of our laws are based on that plan.
• And many of our laws are based on that plan.
• And these tax dollars go back to the local counties.
• And these tax dollars go back to the local counties.

Bills: HB2515 , HB2343 , HB2301 , HB2272 , HB2367

Committee: House Environment & Energy

Keywords: energy facilities, large energy use, regulation, state oversight, infrastructure, water quality, game farms, public health, environmental protection, regulatory oversight, extended producer responsibility, paint waste management, environmental regulations, sustainability, recycling, ski areas, winter sports, terminology update, recreation, regulatory changes

Transcript Highlights:

• accounts.
• The repealed accounts are the climate investment account, the climate commitment account, and the natural
• climate solutions account.
• of the new accounts.
• into the capital account.

Summary: The committee first heard a briefing on the proposed Senate capital budget, Substitute Senate Bill 6003, which would spend about $723 million total using debt-limit bonds, Climate Commitment Act funds, and other cash resources. Staff described major investments in housing and homelessness, human services, local infrastructure, flood response, water conservation and clean energy, K-12 school modernization and seismic work, and higher education projects. Members then took public testimony from a wide range of advocates and project sponsors, most of whom urged the Senate to preserve or increase funding for specific projects in the final budget, including affordable housing, permanent supportive housing, child care facilities, food banks, behavioral health and substance use treatment centers, tribal courthouse relocation, school modernization, community colleges, university projects, floodplain restoration, community forests, and local civic or cultural facilities. Several witnesses also asked the Senate to match or approach House funding levels on items such as the Housing Trust Fund, permanent supportive housing, the Community Forest Program, Floodplains by Design, and CCA-supported clean energy and water projects. The chair noted that amendments to the capital budget were due the next day at noon. The committee then received a briefing on Engrossed Second Substitute House Bill 2251, which would restructure Climate Commitment Act accounts by repealing three existing accounts and replacing them with two new accounts: a CCA operating account and a CCA capital account. Staff explained that the bill would preserve most existing uses while changing revenue distribution formulas, capping Ecology administrative costs, expanding allowable uses for EV-related costs, housing, and carbon capture/sequestration, and changing reporting and tribal consultation provisions. The bill also shifts some reporting from annual to biannual and modifies the thresholds for tribal-supported and overburdened-community investments. The fiscal note was described as relatively small, with the main impact being the revised revenue allocation structure. Public testimony on the CCA bill was mixed. Supporters, including the League of Women Voters, said the restructuring better aligns spending with the intent of the CCA and could improve investments for tribes and overburdened communities. Critics, including the Washington Policy Center, argued the bill still lacks strong requirements to ensure CCA spending is effective and objected to reducing the frequency of the state’s climate-spending report. No votes were taken during the portion of the meeting provided.

Transcript Highlights:

• These are fundamental legislative decisions taken by local government agencies who need to be held accountable
• these things, especially since general plans have, you know, you're planning well into the future and
• And that's local safety goals, local congestion goals, noise goals, even small business district goals
• This bill is about accountability.
• AB 2263, do pass to Local Government, Avila Farias. AB 2263, due pass to Local Government.

Committee: House Transportation

Transcript Highlights:

• argue we don't sell health plans.
• But we don't even sell a health plan.
• It doesn't have to be a plan.
• It doesn't have to be a plan.
• This bill allows them to have a plan.

Committee: Senate Judiciary

Transcript Highlights:

• sub-accounts of the school district building account, to the General Fund.
• district building account to the General Fund for fiscal year 2026.
• This one would be to use interest earnings for the American Rescue Plan Act State and Local Fiscal Recovery
• Local Fiscal Recovery Fund to the Fire Suppression Deficiency Account in fiscal year 2026. ...fiscal
• So plan on meeting at 7:30 tomorrow morning. So plan on meeting at 7:30 tomorrow morning upstairs.

Summary: The committee received a General Fund Daily Update and Budget Monitor presentation from Legislative Services Office staff, who explained that the budget picture was nearly complete, with most general fund agency actions and germane bill impacts already reflected. Members also discussed revenue performance, including that the state was about $89.5 million behind the legislative revenue target and that April revenue reports would be especially important. Staff noted that the estimated ending balance was close to negative $44.1 million, with some uncertainty remaining because of revenue volatility and pending monthly reports. The committee then considered a series of budget-balancing cash transfers and related actions. It approved transfers from the Permanent Building Fund to the Legislature, a 5% reduction in the legislative transfer, a $13 million transfer from the Idaho Broadband Fund to the General Fund, transfers from inactive school district building account subaccounts, and a conditional transfer from the 27th payroll fund if needed. It also approved moving interest earnings from the Budget Stabilization Fund, Water Pollution Control Fund, Permanent Building Fund, and several American Rescue Plan Act-related funds to the General Fund or Strategic Initiatives Fund, along with transfers involving the Fire Suppression Deficiency Account and Strategic Initiatives Fund balances. Several members commented on the policy choices, including support for legislative belt-tightening and concern about using interest earnings transfers, especially from the Budget Stabilization Fund. One member questioned whether those transfers were appropriate if the budget remained balanced, while another asked for clarification on how Strategic Initiatives Fund allocations would be used. Most motions passed with due pass recommendations in both chambers’ committee votes, and the committee adjourned after scheduling another meeting for the following morning to continue work on remaining cash transfers and possible Fish and Game items.

Transcript Highlights:

• So you plan on doing both then? Yeah. Okay.
• But there has to be transparency accountability.
• When you start tying the local hands, you start tying up local communities and court battles with federal
• local communities should be able to do.
• When you start tying the local hands, you start tying up local communities and court battles with federal

Committee: All HOUSE RULES

Summary: The committee first considered House Resolution 1016, presented by Rep. Marcus Richmond, which sought permission to file a bill aimed at consumer protection in certain housing arrangements where buyers purchase an interest in an entity rather than the property itself. Richmond said the measure was intended to improve transparency, prevent deceptive real estate practices, and ensure disputes would be handled in Arkansas or federal courts rather than private tribunals. Members raised concerns about overlap with existing law, possible effects on homeowners associations, arbitration clauses, hunting clubs, religious organizations, and the bill’s 25-acre exemption. After discussion, the committee voted down the resolution. House Resolution 1006, by Rep. Bart Schultz, proposed increasing the homestead tax credit by $75, from $600 to $675, using a fund created for property tax relief. Schultz argued the increase was supported by the annual report on the fund and was timely because of higher costs for gas and groceries. Members asked about using special language instead, whether the increase could be made retroactive later, and whether the governor had included it on the call. The committee approved the resolution. The committee then heard House Resolution 1007, presented by Sen. Brian King and Rep. James Eaton, which would have changed how turnback sales tax revenue is distributed to counties, with the first $150 million of sales tax revenue going into a fund for county infrastructure and each county receiving an equal share. Supporters said it would help counties with roads, jails, water, sewer, and other critical needs, while opponents questioned whether taking revenue off the top would harm other state services and whether the issue was urgent enough for a fiscal session. The resolution failed. House Resolution 1008, by Rep. Jim Wooten and Sen. King, sought changes to the LEARNS Act and school choice funding, including performance-based eligibility and reporting requirements. Wooten argued the program was financially unsustainable and that accountability was needed; members questioned whether the proposal would create a larger emergency and whether it should instead be handled through budget language. The resolution failed after a point of order interrupted the closing remarks. Finally, House Resolution 1009, presented by Rep. Ron McNair and Sen. King, aimed to restore local control over crypto mines and data centers, citing concerns about water use, electricity demand, Chinese ownership, and litigation tied to prior legislation. Members questioned whether the issue was truly emergent and whether the resolution was the right vehicle. The resolution failed. House Resolution 1015, by Rep. Howard Beatty, proposed amending the prior IDA bill to address concerns raised by constituents, including board accountability and removing eminent domain authority. Supporters said it would improve the bill before next session, but the resolution also failed. The committee then adjourned.

Transcript Highlights:

• THERE HAS BEEN A LACK OF PLANNING.
• THERE ARE A LOT OF BUILDERS SUCH AS MYSELF WHERE WE ONLY HAVE 8 DIFFERENT PLAN SO WE SUBMIT ALL THE PLANS
• IF MIAMI GARDENS HAS FUTURE PLANS AND THE USE FUNDS FOR THOSE PLANS AND THEY HAVE NOT STARTED TO WORK
• IF IT IS FINANCIAL ACCOUNTABILITY WE WANT TO MAKE SURE CITIES ARE ACCOUNTABLE TO THE TAXPAYERS THEN LET'S
• WE SET ACCOUNTABILITY LOOK LIKE.

Transcript Highlights:

• , the Washington Opportunity Pathways Account, the Workforce Education Investment Account, and the Fair
• Start for Kids Account.
• Together, these accounts are commonly referred to as the NGFO accounts.
• So we would like to be in a position where we can plan the next biennium and plan to not be in a budget
• account.

Summary: The Appropriations Committee held public hearings on several bills and took executive action on House Bill 2747. HB 2747 would change how Washington estimates future revenue in its four-year balanced budget outlooks by using the official revenue forecast instead of the current 4.5% growth assumption for the next two biennia. Staff described the bill as a technical change with indeterminate fiscal effects, and supporters said it would make budgeting more realistic and sustainable. The committee adopted a technical amendment and then reported the bill out of committee with a do pass recommendation by a vote of 26 ayes, 3 nays, and 2 excused. The committee also heard Second Substitute Senate Bill 6182, which would create an abortion savings program funded by a new annual assessment on health carriers offering exchange plans. Staff said the bill would generate about $10 million in fiscal year 2027 and about $2.1 million annually thereafter, with most funds going to grants for abortion care providers and some administrative costs for the Office of the Insurance Commissioner and the Department of Health. Supporters said it would stabilize access to abortion care and help low-income patients, while opponents argued it would force taxpayers and insurers to subsidize abortion and raised concerns about oversight, morality, and premium impacts. Substitute Senate Bill 6355, which would create a Washington Electric Transmission Authority to support new transmission projects and related tribal clean energy work, drew testimony from utilities, labor, clean energy advocates, counties, and landowners. Supporters said the state needs faster transmission buildout to improve reliability, support clean energy, and reduce congestion costs; opponents and county representatives raised concerns about eminent domain, loss of local tax revenue, board accountability, and the need for stronger landowner and county involvement. Staff estimated the bill would have a several-million-dollar general fund impact and noted possible indeterminate local revenue effects. The committee also received a briefing on engrossed Substitute Senate Bill 6260, which would reduce funding or eligibility for several K-12 programs, including bus depreciation, Running Start, and transition to kindergarten; public testimony was overwhelmingly opposed, with school officials, educators, community college representatives, students, and rural districts warning of reduced opportunities and harm to small and low-income districts.

Transcript Highlights:

• This is nothing more than a Jeffersonian-Madison principle about allowing local governments and local
• Allow them to do future planning.
• Do you think local communities have the money to fight something in local court? They don't.
• If we want accountability, I want accountability, but I'm not going to start, now that we're where we
• The press wasn't even for accountability for public schools. But I'm for accountability.

Transcript Highlights:

• And I think the accountability measures are really vitally important. What locals are doing.
• And I think the accountability measures are really vitally important.
• combating the problem at the local level.
• Regarding the accountability measures and the priorities for those accountability measures, I would just
• These range from housing element compliance to local encampment policies.

Summary: The Assembly Budget Committee opened its hearing on the Governor’s 2026-27 budget with remarks emphasizing the start of a months-long process, the need for fiscal responsibility, and concerns about structural deficits, federal funding losses, housing and homelessness, and oversight. The vice chair echoed those concerns, warning against budgets built on short-term fixes and urging accountability. The Department of Finance presented a balanced budget year proposal of about $349 billion in total expenditures, including $248 billion General Fund, while acknowledging a structural imbalance in the out years and proposing a workload budget with limited new spending or cuts. Finance said the budget relies on stronger-than-expected revenues, but also on constitutional obligations such as Proposition 98 and Proposition 2, and on suspending a rainy-day fund true-up deposit to cover a projected $2.9 billion budget-year deficit. The administration highlighted higher education funding, climate and wildfire resilience investments, a new ZEV incentive, added Health and Human Services costs tied to H.R. 1, child care funding, and three tax proposals: third-party delivery tax compliance, a sustainable aviation fuel tax credit, and an extension of the California Competes tax credit. The LAO, by contrast, warned that the budget is “precariously balanced,” cited downside risk from stock market-driven revenues, and urged the Legislature to use reserves, avoid suspending rainy-day deposits, and begin shrinking multi-year deficits sooner rather than later. Member questions focused on wildfire mitigation and insurance, transit and GGRF funding, federal cuts affecting CalFresh and Medi-Cal, the proposed tax credits, homelessness accountability language, and education funding. Several members pressed for earlier partnership on deficit solutions and for more scrutiny of budget choices. The committee also discussed declining enrollment in K-12, community colleges, and CSU, with concerns about whether funding formulas are aligned with actual student demand. No formal votes or final actions were taken in the hearing.