Transcript Highlights:

• Finally, we propose the reappropriation of $3.6 million General Fund originally appropriated in the 2021
• The syndromic surveillance program reappropriation regarding the opioid settlement fund tracks overdoses
• According to the information I have here, it reappropriates $2.5 million, but is that basically because
• it's not spent yet and we'll just reappropriate it to this year?
• The Department of State Hospitals (DSH) proposes to reappropriate $7.5 million General Fund for the cost

Keywords: 988, house, all

Transcript Highlights:

• um money for child um and reappropriate um money for child welfare<01:53:27.080> it.
• in in a agency and is reappropriated in in a different<01:53:32.400> agency.
• The governor reappropriates a portion of that, and the Senate does not.
• <02:06:52.719> welfare<02:06:53.199> IT reappropriation of the child welfare IT reappropriation
• 02:07:30.880> of governor reappropriates a portion of governor reappropriates a portion of that

Keywords: 1187, senate, all

Transcript Highlights:

• of some of the state funds, not new money, but a reappropriation of what could be left.
• of some of the state reappropriation of some of the state funds,<01:43:09.760> not<01:43:09.920
• reappropriation of what could be left. reappropriation of what could be left. um<01:43:13.760>
• So you're asking for that to be reappropriated to deal with any Tier 5 continuing cost as far as contractual
• , which we think probably reappropriation, which we think probably would<01:46:33.679> be<01:46

Keywords: Appropriations - Room 210; 22 January, 2026: 1:30 PM, 925, all

Summary: The meeting began with a budget presentation from the insurance commissioner’s office. The commissioner said most of the request was for personnel costs, including an increase above LBO and two additional IT positions tied to a possible conversion to a state-based system and cybersecurity needs. The office also discussed travel costs, contractual expenses, vehicle replacement, and hurricane mitigation funds, noting that some funds are in trust accounts and require legislative authority to spend. The commissioner also briefed members on possible policy changes affecting the ACA exchange and a proposed low-cost plan for the high-risk pool, warning that if coverage options are not developed, more people could shift into uncompensated care. Members asked about the budget request, the IT positions, and a constituent question about propane meter regulation, which the commissioner said falls under the Department of Agriculture and Commerce, though his office sometimes checks related issues informally. The committee then moved to the State Fire Academy hearing. The academy director described a workforce stabilization proposal focused on retaining and recruiting fire instructors, citing competition from local fire departments that pay more, a shrinking applicant pool, and a growing number of retirement-eligible staff. He said the academy’s instructors are being recruited away by municipalities, that recent applicant pools have produced very few qualified candidates, and that the academy may soon have to cut advanced courses if staffing does not improve. He referenced a State Personnel Board review that supported the need for compensation changes and said the academy is trying to remain competitive while continuing to train firefighters, hazmat responders, EMS personnel, and fire officers statewide. No formal votes or legislative actions were taken in the portion provided. Members mainly asked questions, requested written follow-up on some budget items, and indicated they would work with the agencies later in the session if pending bills or funding needs changed.

Transcript Highlights:

• There was a reappropriation item that was put forward as a part of the governor's budget.
• There was a reappropriation item that was put forward... as a part of the governor's budget.
• We will continue to encourage the legislature for the reappropriation of existing funds in the student
• a reappropriation of three hundred and eleven million one-time propositions. position 98 that will be
• The reappropriation of approximately 4.3 million of 11 million one-time general fund that was included

Keywords: 988, house, all

Transcript Highlights:

• I've tried to remove amounts that were then reappropriated out of these figures so that we were not having
• Four million of that $38.3 million was reappropriated.
• So we'll have potentially the reappropriations request there that I want to flag.
• So we'll have potentially the reappropriations request there that I want to flag.
• So this project started last biennium, had to get the funds reappropriated, but they think they'll have

Keywords: 904, all

Summary: The House Transportation Committee held a work session focused heavily on Climate Commitment Act transportation spending and electrification programs. Staff first reviewed roughly $2.2 billion in CCA transportation allocations over three biennia, noting that the largest shares went to public transportation, active transportation, ferry electrification, ZEV programs, rail freight/ports, and planning, with about half of the electrification and fuel-conversion spending tied to state ferries. Members asked for more detail comparing CCA dollars with the broader transportation budget and for total project costs, not just CCA contributions. The Department of Ecology presented on the zero-emission school bus program. Ecology said the legislature codified the program in 2024 and requires electric buses once diesel and electric costs are equivalent, with exemptions available when electric buses cannot meet district needs. Ecology reported $38.3 million in CCA funding for 2025-27, with $21.4 million already obligated or spent to replace 91 diesel buses in 28 districts, plus additional federal EPA funding leveraged for 13 more buses. Members asked about health impacts, parity timing, rural route exemptions, charging and training costs, and whether the program includes infrastructure; Ecology said the grants cover buses, charging, and sometimes training, and that the Office of Superintendent of Public Instruction is developing the cost-equivalency formula. The Department of Commerce described its clean transportation role, including EV rebates, charging infrastructure, tribal electric boats, and the EV Coordinating Council. Commerce said its rebate program was designed to lower monthly payments for low-income households, that 89% of recipients said the rebate was essential to their purchase, and that lease incentives helped draw additional federal dollars. Members asked about tribal boat details, utility interconnection and curtailment, range anxiety, and vandalism at charging stations; Commerce said battery storage and managed charging are being used in some projects, some utilities are more responsive than others, and vandalism remains a challenge. The Department of Enterprise Services reported 567 Level 2 and 46 Level 3 charging ports installed at 82 state sites, with 19 more sites in progress and over $100 million in additional candidate projects. DES said most funding is for new infrastructure, though some VW settlement money is used for replacements, and members asked about charger replacement needs, mobile charging, and EV fleet purchasing data. WSDOT then outlined its EV infrastructure and transit programs. It said the Zero Emission Vehicle Infrastructure Partnership program has funded 23 new charging sites this biennium, including overburdened communities and tribal locations, and has supported 264 DC fast-charging ports statewide. WSDOT also described the new Washington Zero Emission Incentive Program, a point-of-sale voucher program for zero-emission commercial vehicles and equipment with $112 million available this biennium; it reported strong early demand, especially for off-road equipment and heavy trucks, and said technical assistance is being provided to help businesses participate. In public transportation, WSDOT said CCA funds support bus and bus facility grants, commute trip reduction, green transportation capital projects, paratransit, tribal transit, zero-emissions access car share, and other mobility projects, with most awards benefiting overburdened communities. Finally, WSDOT’s rail freight and ports division said port electrification projects are underway but spending is still low because of long design, permitting, utility, and supply-chain timelines; it estimated the $89.8 million program could reduce more than 140,000 metric tons of emissions over 10 years. Members questioned the pace of spending, the Northwest Seaport drayage project, and how state funds can leverage additional federal or port resources.

Transcript Highlights:

• last year, and they closed that gap through adding some more money, cutting some programs, and reappropriating
• <00:10:10.360> and money, cutting some programs, and money, cutting some programs, and reappropriating
• 11.280> that<00:10:11.440> money,<00:10:12.120> and<00:10:12.280> then reappropriating
• that money, and then reappropriating that money, and then also<00:10:12.720> making<00:10:13.040

Keywords: 919, house, all

Summary: The House first took up a resolution commemorating Peace Officer Memorial Day and Police Week in Minnesota. Members read a series of “whereas” clauses honoring fallen peace officers, including the addition of three names to the Minnesota Law Enforcement Memorial Honor Roll, and recognizing the service of the state’s more than 10,000 peace officers. The resolution was adopted without objection. The chamber then moved to conference committee reports and calendar actions, including a Rules and Legislative Administration report placing several bills on the calendar for the next day. The main substantive item was the conference committee report on House File 4252, the higher education finance and policy bill. Supporters said the bill included $3 million for identity verification systems to combat enrollment fraud or “ghost students,” $2.7 million to cover a shortfall in the Fostering Independence grant program for foster youth, and $5,000 for tree replacement at Bemidji State University. They also noted the bill did not address the larger state grant shortfall, which several members described as a structural problem. During debate, supporters emphasized the need to stop enrollment fraud and protect foster students’ access to higher education, while also praising the conference committee process and public deliberations. Opponents criticized the bill for failing to fix the state grant deficit and argued that Minnesota students were not being prioritized. After discussion, the House adopted the conference committee report, gave the bill its third reading, and then repassed House File 4252 as amended by conference by a vote of 101 yeas to 33 nays.

Transcript Highlights:

• You should have a handout there in front of you that says 26 supplemental, 27 reappropriations.
• You should have a handout there in front of you that says 26 supplemental, 27 reappropriations.
• Members now, if you look at the reappropriations, we'll take these individually and batch these.

Keywords: 1204, all

Transcript Highlights:

• You should have a handout there in front of you that says 26 supplementals, 27 reappropriations.
• Members, now if you look at the reappropriations, we'll take these individually and batch these.
• Members now, if you look at the reappropriations, we'll take these individually and batch these.

Summary: The committee first took up the Special Language Committee report, which adopted nine amendments tied to Governor’s Letter 7 and HB 1005, and then approved several items for due pass as amended, including HB 101 (Department of Corrections), HB 1017 (Department of Agriculture promotion boards), HB 1009 (Department of Public Safety), and SB 10 (Department of Commerce, Division of Workforce Services). A question was raised about the $10 million unemployment insurance modernization item in SB 10, and Commerce staff said it was a continuation of a previously approved appropriation rather than a new increase. The main discussion centered on the Treasurer’s budget request, especially salary increases. Committee members questioned why the office had already received substantial raises in 2025 and whether additional funds would go to lower-paid staff or mainly to top leadership. Treasury staff said the request was intended to retain talent, that the office’s investment team manages an $11.5 billion portfolio, and that the state benefits from those returns; they also said the treasurer would be open to discussing a cap on raises. Members expressed concern that prior funds had not gone where expected and that the treasurer was not present to answer directly. Representative Lundstrum moved to hold the Treasurer’s budget until the treasurer could return and provide more information, and the motion passed. Representative Kavanaugh also asked about a $150,000 preparedness and safety appropriation, and staff said it would support IT and security upgrades related to a move from AIS to S4 HANA and a cloud-based system. The committee then batched and passed a series of supplemental and reappropriation bills, followed by individual due-pass votes on multiple House and Senate bills, all of which were approved without objection. The meeting ended with procedural guidance about filing special-language items and a request to release a hold on HB 1064, after which the committee adjourned.

Transcript Highlights:

• This request is to reappropriate funding from previous years.
• Yes, so specifically on the proposal to reappropriate the funding for the Governor's Advisory Council
• Understanding you to say is that you're essentially reallocating or reappropriating the $2.5 billion
• Did you indicate where it's being reappropriated to?
• Do you know where you're reappropriating it to?

Keywords: 988, house, all

Transcript Highlights:

• DSH also proposes to reappropriate up to $6.3 million from 2025-26 and proposes provisional language
• DSH also proposes to reappropriate up to $6.3 million from 2025-26 and proposes provisional language
• Another example would be number four, the CalRx reappropriation.
• Another example would be number four, the CalRx reappropriation.
• Another example would be number four, the CalRx reappropriation.

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

Transcript Highlights:

• THERE'S ONLY BEEN ONE APPROPRIATION DONE IN 2425 AND THEN REVERTED AND REAPPROPRIATED FOR THE UNEXPENDED
• BALANCE WAS REAPPROPRIATED FOR 2025, 2026.
• APPROPRIATION WOULD EXPIRE JUNE 30 UNLESS REAPPROPRIATED AGAIN WHICH OBVIOUSLY IS UNDER YOUR CONTROL.

Transcript Highlights:

• Issue Four: Reappropriation of law enforcement mutual aid.
• Issue Four is reappropriation of law enforcement mutual aid.
• In this proposal, Cal OES requests the reappropriation of approximately $22 million General Fund with
• The state sheriffs support the reappropriation of the law enforcement mutual aid funds... ...as proposed
• All right, just some time. support the reappropriation of the law enforcement mutual aid funds as proposed

Summary: The committee heard a broad public safety budget hearing focused on youth justice funding, probation incentive grants, and disaster response and recovery. On the youth justice item, the Office of Youth and Community Restoration described a proposed change to the JJRBG funding formula that would shift resources away from a DJJ-based measure and toward county youth population, serious offenses, and step-down placements in less restrictive programs. Members asked about data on Native American youth; OYCR said statewide data are limited, but its SYTF data show about 1% of youth in secure youth treatment facilities were Native in 2024. The Department of Finance had no objections, and the item was discussed as a way to support alternatives to long-term incarceration. The committee then reviewed the community corrections performance incentive program for county probation departments. The Department of Finance proposed stabilizing the program with a maintenance payment, updating the performance baseline, and adding a growth factor; the LAO agreed the formula needed changes but recommended using 2022-23 data instead of 2021-23, using marginal rather than average cost assumptions, rejecting the growth payment and minimum guarantee, and adding stronger oversight through the BSCC. Finance said it was open to some technical changes but opposed a new BSCC audit framework, noting Judicial Council already surveys probation departments and that evidence-based practice use has increased over time. Members and staff indicated the proposal still needed further work. A major portion of the hearing focused on the January 2025 Southern California wildfires and state disaster response. A resident of Altadena gave emotional testimony about evacuation failures, loss of home, and the need for accountability. LAO and Cal OES outlined the disaster response and recovery system, including mutual aid, alert and warning, debris removal, FEMA and state funding streams, and the long timeline for reimbursement. Cal OES said it had pre-positioned resources, temporarily took over the county’s wireless emergency alert function for about three weeks, coordinated debris removal and recovery operations, and had already allocated more than $286 million in state funds. Officials also discussed the 100% federal cost share for emergency work for 180 days and the uncertainty created by changing federal processes and the cancellation of the BRIC resilience program. The committee also heard two smaller Cal OES items: a request to reappropriate about $22 million for the law enforcement mutual aid reimbursement program, which the LAO said should be placed in statute with clearer goals and reporting, and an update on Victims of Crime Act funding, where Cal OES said federal VOCA allocations have fallen sharply and that roughly $224 million would be needed to maintain current service levels if federal funding does not improve. Public comment included a request for funding to expand datacasting and emergency alert receivers for wildfire and earthquake warning.

Transcript Highlights:

• $10 million to the City reappropriates $10 million to the City of<00:21:43.600> Minneapolis<00
• The language and the bill would cancel the appropriation from the 2023 tax bill and then reappropriate
• thing I think I'll turn reappropriation thing I think I'll turn over<00:23:19.240> to<00:23:19.440
• <00:23:34.360> that<00:23:34.520> money<00:23:35.039> again and then reappropriate
• that money again and then reappropriate that money again in<00:23:35.480> fiscal<00:23:35.799

Bills: HF2274, HF1932

Keywords: taxation, income tax, property tax, corporate tax, homestead credit, local government aid, tax credits, economic development, taxpayer assistance, tax credit outreach, tax preparation, free tax help, IRS, Department of Revenue, general fund appropriation, earned income tax credit, child tax credit, volunteer income tax assistance, VITA, low-income taxpayers

Transcript Highlights:

• My concern is that we are protecting the current NID development by lapsing the funds and reappropriating
• I still currently would reappropriate it back to the stadium. Okay, that's right. Good catch.
• it it should be okay and reappropriate it it should be okay they<01:58:12.920> actually<01:58
• to okay no we're going to reappropriate to okay no we're going to reappropriate<01:58:34.000> it<
• it back to the stadium reappropriate it back to the stadium okay<01:58:37.000> okay<01:58:38.000

Keywords: 910, house, all

Summary: The committee heard testimony on several agriculture, water, invasive species, and land-use bills. HB 299 and HB 1220, both relating to invasive species, drew broad support from the Hawaii Invasive Species Council, DLNR, the Department of Agriculture, C-GAPS, Sierra Club, Hawaii Farm Bureau, Hawaii Farmers Union, and others. Testifiers said HISC funding fills gaps between agency mandates, supports research and technology, and helps respond to both terrestrial and marine invasive threats. On HB 1220, C-GAPS described a marine anemone infestation in Kāneʻohe linked to aquarium release and said control and restoration would be difficult without the bill’s funding. A committee member asked for tracking information on the species, and the Division of Aquatic Resources said it maintains monitoring data and annual reports. No opposition was noted on either measure. HB 506, relating to conservation enforcement, also received support from DLNR and Malama Pu‘u Ma. Committee discussion focused on the bill’s scope and how the funding would be used. Members asked about a prior boat purchase mentioned in opposition testimony and about whether mainland vendors were being used; the department said it did not buy that boat and that procurement follows the normal state process, with total bid price including delivery, taxes, and other fees. The department explained that the bill’s funding is primarily for marine enforcement work in nearshore fisheries, including herbivore protection around O‘ahu. HB 915, relating to water use, had mixed testimony. DLNR supported alternative water sources and amendments to the water code, while the Department of Agriculture opposed the bill as drafted, saying its irrigation program is designed for non-potable agricultural use and is not structured for residential or mixed-use development. The Department of Health said it needed more information on its reuse guidelines and noted concern about removing the recycled water manager requirement, which it said helps ensure safe operation and maintenance of reuse systems. Members questioned the bill’s preemption language and whether county or state rules would be displaced, and Agriculture suggested county water agencies might be better suited for some of the proposed uses. HB 502, concerning land use, drew support from the Attorney General’s office, the Land Use Commission, Hawaii Realtors, Hawaii Farm Bureau, and Hawaii Farmers Union, with the Department of Agriculture standing on its written testimony. The Attorney General warned that allowing important agricultural lands to be redistricted through a declaratory ruling process could conflict with the state constitution and recommended excluding IAL from the bill. The Land Use Commission said it has an inventory of IAL lands and did not believe the bill would affect them, and it agreed to the suggested protection. Supporters said the bill could help move lands with limited agricultural value into the rural district, reduce pressure on productive farmland, and better align land use with actual farming potential. HB 929, relating to the agricultural land conveyance tax, received comments from the Department of Taxation and opposition from Hawaii Farm Bureau and Hawaii Realtors; Farm Bureau said it supports preserving agricultural land but was concerned about unintended consequences and questioned whether speculative flipping of ag land is a current problem.

Transcript Highlights:

• All this is a reappropriation of prior year's projects. Those prior projects total $577,282.26.
• All this is a reappropriation of prior year's projects. Those prior projects total $577,282.26.
• And like I said, this is just reappropriation for RNR projects and other projects that have been passed
• for RNR projects and reappropriation for RNR projects and other<00:02:18.640> projects<00:02:
• This bill does have a reverse repealer, and we reappropriated $55 million for the computer system and

Keywords: Appropriations - Room 216, 12 March, 2026; 10:30 AM, 925, all

Summary: The committee began by noting the plan to suspend the rules later that afternoon so several measures could be taken up on the floor, including bills that may be on final passage or contain reverse repealers. Members were reminded to clearly identify which bills were final passage measures so the chamber would know it might be the last opportunity to vote on them. The committee then moved through a series of appropriations bills. In the education and judicial budgets, Senator DeBar explained House Bills 1928, 1933, 1935, 1936, and 1937, covering the legislative operations budget, DFA buildings reappropriations, K-12 education, MPB, and the library commission. He described increases for teacher pay, special education supplements, testing contracts, ELC coaches, financial literacy, ESA funding, and other adjustments, along with reductions in some areas and a decline in student enrollment affecting the funding formula. The bills were adopted by title sufficient, do pass, with strike-all motions where applicable. Senator Wiggins presented House Bills 1924, 1926, 1927, 1930, and 1931, covering the Attorney General, Capital Postconviction Council, district attorneys and staff, the Office of State Public Defender, and the Supreme Court/AOC budget. He highlighted salary increases for agency attorneys, human trafficking funding, new district attorney positions from judicial redistricting, public defender support for family defenders and the rural legal services pilot, and major court-system items such as judicial salary increases, youth court intake, CCID courts, and the MyCIDS replacement system. Questions focused on the meaning of personal services, vacancy funding, and possible use of opioid settlement funds for AOC; the committee was told those issues could be handled through the reverse repealer or other vehicles. The bills were advanced, with the committee noting which ones contained reverse repealers and which were final action. Subcommittee 5 and 6 then handled human services, health, licensing, and transportation-related measures. House Bills 1906, 1909, 1912, and 1921 covered Child Protective Services, Human Services, Medicaid, and Rehabilitation Services, with explanations for new attorney positions, salary and vacancy funding, SNAP administration, Medicaid agency funding, and restoring positions in rehab services. House Bill 1908 for the Department of Health added money for Jackson water litigation and public health priorities such as obesity management, remote monitoring, cancer screenings, and maternal-infant health. House Bills 1913, 1914, 1915, 1917, and 1918 were taken up together for licensing boards, with most changes described as cloud services, PIN restoration, or vacancy funding; only the Board of Medical Licensure bill had a reverse repealer. Finally, Senator Thompson handled special fund and transportation bills, including the Port Authority, waterway and river districts, Yellow Creek, and MDOT. He noted overtime concerns at the Port Authority, special-fund increases for contractual services and capital improvements at the water districts, and MDOT increases for salaries, commodities, equipment, and the three-year highway plan. Senator Wiggins raised a question about utility relocation costs in transportation projects, saying some municipalities were being told to pay those costs themselves; Senator Thompson said he would follow up with MDOT.

Transcript Highlights:

• All right, your second question under this topic is reappropriate general revenue funds.
• This is a... ...under this topic is reappropriate general revenue funds. This is a spreadsheet.
• We have two really major requests, both of which are special revenue requests for reappropriation.
• Requests, both of which are special revenue requests for reappropriation.

Keywords: 994, senate, all

Summary: The Senate Finance Committee met with a quorum, approved the minutes from the prior meeting, and heard budget presentations from the Secretary of State, the Attorney General, and the State Auditor. The Secretary of State’s office described its FY27 budget, emphasizing efficiency gains from technology, election security work, and business services. It said it is operating with fewer staff than a decade ago, but rising costs and outdated statutory fees are creating deficits in service of process and other operations. The office asked the committee to consider either increasing fees or allowing it to retain a larger share of business-service revenue, and it also proposed creating an Office of Entrepreneurship to help small businesses navigate state government, grants, permits, and related services. Committee members questioned the Secretary of State’s office about fee increases, the current 50-50 split of certain revenues with general revenue, and whether the proposed entrepreneurship office would duplicate existing services. The office said it would complement, not replace, Commerce, SBDC, or grant programs, and would report metrics and policy recommendations to the legislature. The Attorney General then requested a one-time $2 million special revenue appropriation to hire additional lawyers and support staff, citing increased litigation, federal and state legal work, and the need to defend new laws. He also discussed embedded DMV lawyers handling DUI revocation hearings and said the arrangement costs the office just over $200,000. The State Auditor reported that his office is largely self-funded through special revenue and said he wants to reduce reliance on general revenue over time. He highlighted savings from renegotiated leases and an open government contract, discussed the need for more auditors in the Chief Inspector’s Division, and described fraud recovery and P-card operations. A major topic was delinquent land sales: the auditor said the office sold about 17,000 parcels last year and believes online bidding and better marketing could generate substantially more revenue, with the surplus potentially shared among counties, the state, and other programs. Members also asked about securities fee changes, fairness hearings, fire department audits, IT/cybersecurity, and how surplus proceeds from delinquent land sales should be handled. The committee adjourned after the presentations and questions.

Transcript Highlights:

• Our next request is for a reappropriation of $1 million originally appropriated in the 2022 Budget Act
• If approved, the reappropriation of the $1 million remaining from the 2022 appropriation will be added
• Our next request is for a reappropriation of $1 million originally appropriated in the 2022 Budget Act
• On the reappropriation of CA RISE funding, we don't have any concerns with that proposal.
• The Legislature could reappropriate that money. You're going to have some money.

Keywords: 988, house, all

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

Transcript Highlights:

• Our next request is for a reappropriation of $1 million originally appropriated in the 2022 Budget Act
• If approved, the reappropriation of the $1 million remaining from the 2022 appropriation will be added
• On the reappropriation of CA RISE funding, we don't have any concerns with that proposal.
• The Legislature could reappropriate that money. You're going to have some money.
• Legislature could reappropriate that money. You're going to have some money.

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

Transcript Highlights:

• Additionally, the Governor's budget proposal is seeking to extend the reappropriation for two years,
• It's a smaller request than it would have been for the reappropriation.
• Instead, we can just reappropriate past General Fund.
• So we haven't, because it's being reappropriated, we haven't assigned a subcontractor just yet.
• I know we have reappropriated some of it because it was unspent.

Summary: The committee heard an extensive Department of Social Services presentation on child care budget issues, including the Governor’s proposed 2026-27 budget, federal CCDF changes, Prop. 64 revenue adjustments, and a one-time $11.5 million disaster-related infrastructure grant for licensed child care facilities affected by 2025 declared disasters. DSS said federal formula updates and lower Prop. 64 revenues would reduce funding and could result in about 4,176 CCTR slots being reduced, but the department said it was working to avoid impacts to currently enrolled children. The LAO supported aligning general child care funding with lower revenues and asked for more detail on the disaster grant. Members pressed DSS and Finance on why reductions were not being backfilled and why so many awarded slots remain uncontracted or unused; DSS said delays are largely due to providers building new infrastructure, licensing, staffing, and enrollment challenges, and that some unspent funds revert to the General Fund. The committee also discussed whether some contract dollars should be shifted to vouchers and whether more flexibility should be allowed for infrastructure and expansion costs. A second panel focused on the state’s commitment to expand child care and on rate reform. DSS reported that nearly 125,000 new slots have been awarded since 2021-22, but speakers from Stanislaus County Office of Education, Parent Voices California, and the California Budget and Policy Center argued that unmet need remains large and that the system still leaves many families without access. Stanislaus County described a large local shortage of infant and toddler care and said reimbursement disparities between child care programs and state preschool create disincentives for providers. Parent Voices gave testimony about the burdens and instability families face when trying to access care, especially for survivors and low-income parents, and called for a universal, publicly funded system. The Budget Center said only about 16% of eligible children were enrolled in 2024, urged expansion across the mixed delivery system rather than concentrating investment in TK, and called for faster rate reform and new revenue. LAO estimated that bringing certain CCTR adjustment factors up to CSPP levels would cost $88 million to $131 million ongoing. Members and witnesses discussed the single rate structure, automation needs, and the need for deadlines and a ramp-up plan; DSS said the goal is to eliminate disparities, but that policy decisions are still needed before automation can proceed. The committee then reviewed several trailer bill proposals. DSS outlined a 2026-27 COLA proposal that would apply a 2.41% increase through cost-of-care-plus payments, though the department said it had inadvertently excluded CalWORKs Child Care and the Emergency Child Care Bridge Program and would revise the proposal; LAO recommended making the COLA methodology uniform across programs. DSS also proposed replacing the market rate survey with the federally approved alternative methodology on a triennial schedule, limiting temporary absences in family child care homes to 20% of monthly hours, defining excessive unexplained absences as more than 30 days in a year, and aligning family fee deductions with new federal requirements so providers receive the full voucher value. Members generally supported the temporary absence change and asked about implementation timing for the family fee deduction, with DSS saying it was in contact with Riverside County. The committee also heard a brief update on the Early Childhood Policy Council reappropriation, which would extend unused funds through June 30, 2028 because prior costs came in higher than expected.

Transcript Highlights:

• This is just where we reappropriate some of the APA funds, some of these, some of These hospital rural
• hospital rebuild programs are not going to be meeting the deadline to reappropriate those funds because

Bills: HCR1026, SB1130, SB1134, SB1131, SB1132, SB1133, SB1142, HR1049

Keywords: light pollution, bird mortality, migration, energy conservation, wildlife protection, University Hospitals Authority, funding, behavioral health, appropriation, adolescent health, emergency legislation, Oklahoma State University, Medical Authority, human performance, pharmaceutical expansion, emergency funding, juvenile justice, youth services, pandemic relief, healthcare