Transcript Highlights:

• Yeah, and I think that's why you're seeing these sort of large-scale efforts at efficiencies.
• And I think the answer, I mean, I don't know that we can out-efficiency major state funding declines,
• We are as efficient with every state dollar as we can be, and that's through shared services and the
• I mean, I think we are trying to be efficient and get ahead of costs.
• Yeah, I think we are making lots of efficiencies and trying to...

Summary: The Assembly Budget Subcommittee on Education Finance held an oversight hearing on the California State University system covering enrollment, core operations, Title IX/civil rights, and basic needs. The Department of Finance said the Governor’s 2026-27 budget does not change CSU enrollment targets from the prior year and proposes a 5% ongoing General Fund increase for core operations as the final year of the compact. The Legislative Analyst’s Office recommended a lower resident undergraduate enrollment target than the Governor’s proposal, separate funding for enrollment growth rather than folding it into base, a smaller or no base increase tied more closely to inflation, earmarking some base funds for capital renewal, retiring deferred payments, and avoiding new multi-year compact commitments. CSU said enrollment has rebounded for three straight years, but growth is uneven across campuses, with several Northern California campuses still facing structural declines tied to demographics and community college pipelines. CSU described a multi-year reallocation plan shifting about 10,000 FTE and $89 million in ongoing funding toward higher-demand campuses, plus $40 million in one-time support, and said seven campuses submitted turnaround plans aimed at recovering enrollment over the next several years. The system highlighted strategies such as dual enrollment, guaranteed admission pathways with community colleges, outreach to high school students, retention and advising efforts, and new degree models for working adults and military-connected students. Members raised questions about how campus targets are set, whether the May Board of Trustees discussion will address a systemwide enrollment framework, and how CSU will manage future deficits if projected out-year funding does not materialize. On core operations and facilities, CSU said it faces about $320 million in mandatory cost increases in 2026-27 and is pursuing shared services, procurement consolidation, campus administrative sharing, and program redesigns to reduce costs. CSU and the LAO emphasized the system’s large deferred maintenance backlog, estimated at $8.6 billion, and discussed whether CSU’s bond/debt capacity is sufficient to address it; CSU requested up to $1.1 billion for deferred maintenance, while the administration did not propose new funding. The committee also heard CSU’s annual Title IX and civil rights update: CSU said it has implemented 15 of 16 State Auditor recommendations, has dedicated Title IX coordinators at every campus, is using a systemwide case management dashboard, and is piloting centralized investigations at five campuses. Finally, on basic needs, the Governor maintained current funding levels for food assistance/basic needs, rapid rehousing, and mental health. CSU reported heavy use of food pantries, CalFresh support, emergency housing, and counseling services, while warning that federal changes to CalFresh and related funding could make it harder to serve students in need.

Transcript Highlights:

• It's still an incredibly efficient bang for the buck, ma'am. Thank you. Thank you, Madam Chair.
• We have an energy efficiency revolving loan fund. This just launched last week.
• This is state grants for residential energy efficiency...
• They want to project a more cost-efficient way of living so that they can handle their mortgages for
• And get things done quickly, and move through the website as efficiently as possible.

Transcript Highlights:

• Those will improve operational efficiencies within CDCR.
• Some of the areas that we would like them to help us look at are headquarters efficiencies, contract
• The goal is really to rely on these experts who can help us determine operational efficiencies based
• It is the responsibility of the administration to provide an efficient budget year after year, not just
• We are very efficient and cheap, but we've been neglected for too long. Thank you.

Summary: The subcommittee heard May Revision presentations for the Office of Emergency Services, Judicial Branch, CDCR, and the Department of Justice, with the LAO offering comments and recommendations throughout. For Cal OES, the administration outlined funding for relocating the Red Mountain communications site, increased FEMA reimbursement authority, cybersecurity grants, next-generation 911 support, and a reduction to the Flexible Cash Assistance for Survivors of Crime program. Members raised concerns about VOCA backfill and disaster reimbursement, while the LAO recommended approving the 911 request with reporting, adding contingency planning for cybersecurity grants, clarifying the FEMA reimbursement language, and increasing reporting on emergency spending. For the Judicial Branch, the May Revision included funding for implementation of the Trial Nations Access to Justice Act, reductions tied to court facilities and employee benefits, and General Fund solutions such as a reduction to the pretrial release program, a reversion from the Trial Court Trust Fund, and elimination of the jury duty pilot program. The LAO cautioned that the pretrial reduction could affect detention and release decisions and recommended tighter legislative oversight over the trust fund transfer and reallocation language. Members questioned the impact of the pretrial cut, the lack of Prop. 36 court funding, and the rationale for the jury pilot elimination; the Judicial Branch said it was generally supportive of the budget as proposed. CDCR presented requests for roof repairs, fire alarm replacements, CalAIM-related costs, and trailer bill changes on incarcerated college students, mental health hiring, and tuberculosis testing, along with a planned prison closure by October 2026. The department also proposed reducing or delaying several items, including radio replacement, ADA improvements, COVID mitigation, and some facility upgrades, while adding a $125 million placeholder for consultant-driven operational savings. The LAO recommended rejecting or reducing several San Quentin-related proposals, questioned the staffing and contract medical requests, and urged more transparency on the consultant savings plan; members expressed concern about the realism of the savings targets and the potential legal or operational risks from delaying ADA and radio projects. For DOJ, the May Revision proposed ongoing funding and 44 positions to defend against federal actions, IT and accounting system upgrades, implementation funding for AB 1877, and a special fund loan. The LAO supported the KLETS connection but asked for a contingency plan if the new DMV link is delayed, noted that AB 1877 would not be fully implemented without additional funding, and recommended limiting and reporting on the federal accountability workload. Members questioned the size and permanence of the DOJ request, the use of the earlier $25 million special session appropriation, and the pace of federal litigation; DOJ said the new request would support ongoing litigation, expert assistance, and coordination across multiple cases and states.

Transcript Highlights:

• The technical requirement allows more efficient refinery operations, slightly higher gasoline volume,
• without sacrificing efficiency without sacrificing efficiency in<00:20:59.480> 2024<00:21
• But this time we genuinely were remarkably efficient today.
• That was not our plan to be quite so efficient. I guess that's rarely the plan of government.
• with that bill on can be very efficient with that bill on Wednesday<00:36:59.079> uh<00:36:59.240

Keywords: 1187, senate, all

Transcript Highlights:

• Simply put, zero-emission vehicles are more energy efficient than combustion vehicles.
• And you talked about the fact that we would overall see people become more efficient; you'd have less
• crops, use more efficient fertilizers, get more yield per acre so you don't have to clear more land.
• We've heard That had done so primarily in an efficient and cost-effective way.
• It’s a very efficient way and a very helpful way for the cows to manage manure.

Summary: The hearing was a select committee discussion on the transportation costs and impacts of California’s Low Carbon Fuel Standard (LCFS), with opening remarks from the co-chairs and members emphasizing affordability, climate goals, and the need to explain the program’s benefits to the public. The first panel from CARB and the California Energy Commission described how LCFS works as a market-based, declining carbon-intensity program that rewards lower-carbon fuels, supports zero-emission vehicle infrastructure, and is intended to reduce greenhouse gases and local air pollution. They argued the program has driven billions in private investment, increased alternative fuel use, and that LCFS credit prices are not the main driver of retail gasoline prices, which they said are dominated by crude oil, refining, and distribution costs. Members questioned the panel on the gap between the regulatory target and actual carbon-intensity performance, the role of credit banking, which fuels are generating the most credits, how the 2025 amendments affected the program, and whether LCFS credits are truly additional. CARB explained that banking helps cost-effectiveness and investment certainty, that ethanol, renewable diesel, and biodiesel currently provide the largest volumes while electricity is expected to grow, and that the updated targets were informed by the state’s 2045 carbon-neutrality goals and the 2030 scoping plan. The Energy Commission said its data show environmental programs add some cost to gasoline but do not drive price volatility, which is mainly tied to crude oil and refinery margins. The second panel, featuring academic and research experts, focused on program design, out-of-state credit generation, and broader economic effects. Speakers said LCFS is successful because it ties incentives to emissions benefit, uses life-cycle analysis, and allows flexible compliance that lowers costs compared with more direct regulation. They also said the program’s benefits generally outweigh costs, that it can reduce air pollution disparities and support equity, but that some issues—especially indirect land use change, additionality, and older program assumptions—need more research and may warrant future rulemaking. One researcher noted that while LCFS likely raises gasoline prices somewhat, the effect is uncertain by design and usually smaller than normal market fluctuations, and another warned that limiting credit generation too narrowly could create legal and efficiency problems.

Transcript Highlights:

• It's going to make those systems a lot more efficient.
• c><00:20:34.720> an services programs to do that in an services programs to do that in an efficient
• Um<00:20:36.400> House<00:20:36.720> Republicans<00:20:37.280> have efficient
• Um House Republicans have efficient way.
• It's going to uh allow more efficient.

Keywords: 919, house, all

Summary: House Speaker Lisa Damoth and Leader Harry Niska held a press availability focused on “affordability” in Minnesota, arguing that families are being squeezed by rising costs for groceries, child care, housing, insurance, energy, and property taxes. They blamed recent DFL control for spending down an $18 billion surplus, raising taxes, and adding mandates and fees, and said House Republicans are prioritizing lower taxes and reduced mandates to help families keep more of what they earn. They outlined a package of Republican proposals, including making the state’s reinsurance program permanent, expanding direct primary care, requiring the state to pay for new health care mandates, allowing schools and local governments to opt out of some unfunded mandates, creating a property tax commission, eliminating taxes on tips and overtime, repealing the retail delivery fee, ending the Social Security tax, lowering car tab and boat fees, and returning future surpluses to taxpayers. They also criticized DFL proposals such as additional health care mandates, a climate super fund, and higher car tab fees, and said they oppose any new tax increases. In response to questions, the leaders said some affordability measures could be affected by federal policy, but emphasized that many cost drivers are within state control. They said they are open to broader property tax relief, including caps, and to investments in DHS and county systems modernization to reduce fraud and improve efficiency. They also said they do not expect a large omnibus bill at the end of session, arguing that bills should move individually through committee and onto the House floor, and they accused House Democrats of delaying bills for bargaining leverage. No votes were taken.

Transcript Highlights:

• data for decision making and planning. finding two: state office spaces are not being utilized efficiently
• OMES limiting its authority to only its 23 buildings results in missed efficiency gains in other agencies
• But our goal really is to be as effective and efficient as we can possibly be.
• Prioritizing efficiency in state buildings would generate significant savings for the state and avoid
• Texas and Arkansas both create strategic plans to increase efficiency and utilization of state-owned

Keywords: 914, all

Transcript Highlights:

• includes reductions in excess federal budget authority and a reduction of 13 FTEs due to workflow efficiencies
• These reductions are achieved through efficiencies gained and strategic investments.
• The funding here will help increase staff pay, leading to better efficiencies and stabilized and secure
• That makes us one of the most efficient lotteries in the nation.
• We’re proud to serve those who serve Florida, working every day to create efficiencies, value, and cost

Summary: The committee first took up confirmation of five water management district appointees: Ted Everett and Jerome Pate to the Northwest Florida Water Management District, Michael Romano to the Big Cypress Basin Board of the South Florida Water Management District, and Paul Bissfam, John Hall, and Virginia Johns to the Southwest Florida Water Management District. Senator McClain moved confirmation, the roll was called, and the committee recommended all appointees favorably. Members then received the Governor’s Florida First budget presentations for environmental agencies. The environmental package totaled about $5.8 billion and emphasized Everglades restoration, water quality, resilience, land conservation, state parks, hazardous waste cleanup, wildlife management, wildfire response, and citrus support. DEP highlighted more than $1.4 billion for water resources, including $810 million for Everglades restoration, $202 million for Resilient Florida, $150 million for Florida Forever, $70 million for state parks, and $221 million for contamination cleanup. FWC, Agriculture, and Citrus funding priorities were also outlined. Members asked about Florida Forever funding, state park wastewater and septic needs, a reduction at the Florida Wildlife Research Institute, and beach renourishment funding for storm damage. The committee also heard the General Government portion of the budget, which totaled about $2.9 billion and covered DBPR, Lottery, Financial Services, Management Services, Revenue, PERC, and the Gaming Control Commission. DBPR requested funds for license processing, an animal abuse hotline, fleet replacement, and IT retention. FGCC sought new enforcement squads and an IT licensing/enforcement system. The Lottery proposed marketing, retail engagement, IT, and retention funding. DMS emphasized building modernization, fleet telematics, 911 and radio upgrades, cybersecurity, a local government cybersecurity grant program, and data interoperability. PERC described a sharp increase in labor cases and elections after SB 256 and requested staffing, election administration, and hearing officer pay increases. DFS highlighted My Safe Florida Home, fire marshal and first responder support, financial investigations, and gold and silver legal tender implementation. Revenue requested operational and IT funding and support for fiscally constrained counties. Questions focused on DBPR’s condo and HOA initiatives, cybersecurity grant reductions, and the My Safe Florida Home program’s abandoned grants and matching requirements. No additional votes were taken, and the committee adjourned.

Transcript Highlights:

• And I think that BenefitsCal has been great at trying to solve this, but there's only so much efficiency
• As part of the government efficiency drills, the budget of $1 million for establishing the Office of
• This difficult decision to include this office in part of the operations efficiencies was twofold.
• So you're saying it would be more cost-efficient to do it at the county level than the statewide level
• The second is through our weatherization services, where we provide energy efficiency upgrades at no

Keywords: 988, house, all

Transcript Highlights:

• <00:29:08.240> of of when you look at the efficiency of of when you look at the efficiency
• uh the efficiency uh the efficiency budget<01:22:20.159> so<01:22:20.400> the<01:22
• . ...definitely creates efficiency.
• efficiencies sen uh representative Ms efficiencies sen uh representative Ms thank<01:40:32.920> you
• <04:19:40.680> Park become one of the most efficient Park become one of the most efficient

Keywords: 928, house, all

Summary: New Hampshire Housing Finance Authority officials, led by Executive Director Rob Dapice, briefed legislators on the agency’s structure and funding. They explained that the authority is created by state law but is not a state agency, its debt is not state debt, and it is governed by a board appointed by the governor and approved by the Executive Council. The discussion focused on the Affordable Housing Fund and the lead paint hazard remediation fund, including how state appropriations and federal resources are combined to finance affordable rental housing and lead abatement work. Dapice said the Affordable Housing Fund is used as gap financing for multifamily affordable housing projects, typically alongside federal tax credits and tax-exempt bonds, and that state dollars leverage roughly 2:1 to 10:1 in additional federal and private investment, averaging about 4:1. He said the fund has received historic appropriations in recent budgets, including $30 million over the last two biennial budgets and an annual $5 million set-aside from the real estate transfer tax. He also said the fund is usually structured as 0% interest, deferred loans rather than grants, with repayments returning to the fund if projects generate cash flow. Members asked about rents, oversight, staffing, revenues, and whether the programs had added positions. Dapice said affordability restrictions generally last 30 to 99 years, rents are tied to income limits and capped so tenants pay no more than 30% of income, and compliance staff inspect properties regularly to verify income eligibility and rent limits. He said the organization has about 130 to 135 employees, down from about 145, with no new positions added because of the appropriations. He estimated total revenues at roughly $300 million, with administrative budget around $22 million, much of it pass-through grant money. On lead paint remediation, he said the state first appropriated $6 million in 2019, plus $1 million in ARPA funds, and that the program has cleared more than 500 units. He said the federal grant program is not annual or predictable, with a recent award of about $7.75 million, and that the maximum federal grant per unit is $177,000, typically paired with up to $100,000 in state loan support. He also noted that the program can address homes before a child is poisoned if lead hazards are identified, but that cases involving an already exposed child are a higher priority. No votes or formal actions were taken.

Transcript Highlights:

• is designed to maintain the programs that we're currently supporting and look forward to a more efficient
• We'd like to, uh, enhance their knowledge and skills so that they can be more efficient in the agency
• And by all measures, our agency has been, uh, exceeding and, uh, all metrics really for efficiency and
• We continuously work to balance cost efficiency with excellent service.
• Uh, our primary responsibility is to license qualified applicants and to do so efficiently.

Transcript Highlights:

• That is the efficient and reasonable way to do this.
• <01:07:05.720> that else we will lose that efficiency that else we will lose that efficiency
• Governor Ayotte has convened a commission on governmental efficiency.
• <01:26:12.600> and it as quickly efficiently and it as quickly efficiently and expeditiously
• 1980 many lack modern Energy Efficiency 1980 many lack modern Energy Efficiency upgrades<01:40:36.360

Keywords: 1189, house, all

Transcript Highlights:

• It is not operating efficiently now. best uh recourse is to not disturb them. best uh recourse is to
• uh is it not operating efficiently uh is it not operating efficiently<00:56:46.240> now efficiently
• now efficiently now commissioner<00:56:48.319> polish<00:56:49.200> chair<00:56:49.520
• Um, definitely the efficiencies at our facilities in the production.
• carbon efficiency. carbon efficiency.

Keywords: 1187, senate, all

Transcript Highlights:

• process of modernizing that, which helps not only with our organization, but also allows us to efficiently
• process of modernizing that, which helps not only with our organization, but also allows us to efficiently
• But also allows us to efficiently communicate with our victims and our law enforcement.
• c><00:25:59.919> a<00:26:00.080> little<00:26:00.240> more<00:26:00.400> efficient
• that would be a little more efficient that would be a little more efficient and<00:26:01.360>

Keywords: Meeting Start 00:00:00 Commonwealth’s Attorneys, County Attorneys, Prosecutor’s Advisory Council 00:00:18 Approval of Minutes 00:20:09 State Treasurer 00:20:33, 958, all

Summary: The meeting began with testimony from representatives of the Prosecutor’s Advisory Council, including county and commonwealth attorneys, on their proposed budget. They described the scope of their work in district and circuit court, juvenile and dependency cases, specialty courts, guardianship, involuntary hospitalization, and the Rocket Docket program. The witnesses emphasized that their budgets are overwhelmingly personnel costs and warned that proposed cuts could lead to layoffs, reduced retention, and loss of recently added positions. They also said the General Assembly’s recent salary classification plan had improved recruitment and retention, and that underfunding could reverse those gains. A major topic was the Rocket Docket program, which they said speeds lower-level cases through the system, reduces jail costs, and saves money for both counties and the state. They reported that in one circuit, average jail time for certain cases dropped from about 50 days to about 6 days. They also raised concerns that the Rocket Docket line item may not be clearly included in the committee substitute and asked for clarification on how the budget would treat it. In response, the chair said the intent was to move some of those items into the base budget, though the exact structure was still uncertain. The presenters also discussed a 2022 subsidy for county attorney employees tied to retirement contributions, saying it totals about $1.3 million and should not be reduced because the obligation remains. They said the budget would need to support the salary classification plan extensions, House Bill 8 subsidies, and a new case management system that they described as essential to modernizing operations and improving communication with victims and law enforcement. The chair thanked them for the testimony and indicated the committee would continue reviewing the budget. The committee then heard from Deputy State Treasurer Russell Weber, who reported that the treasury has now returned more than $90 million in unclaimed property to Kentuckians. He said the office faces ongoing fraud issues and requested funding for a dedicated legal counsel and a fraud investigator, along with outreach money to educate the public about unclaimed property. He also outlined several capital requests, including the final year of a printer-system lease and replacement of HVAC equipment in the treasury building. Members briefly joked with him about a mineral-rights bill and coal, but no votes or formal actions were taken beyond approving the minutes and adjourning the meeting.

Transcript Highlights:

• We did make changes previously in the efficiency of service by adding class size and adding waivers to
• It's an efficient model that We could start serving.
• I may not fill them, and would that be an efficient use of taxpayer dollars if they're not full if they're
• Number one, but number two, more importantly, we're missing a chance to be efficient if we've got a good
• Or is there some way that we can more efficiently provide oversight that won't be duplicate efforts that

Keywords: 914, all

Transcript Highlights:

• make sure everyone understands that the Assembly has rules to ensure we maintain order and run an efficient
• This bill increases transparency and improves the efficiency of housing project approvals.
• This is a small but meaningful change; it improves efficiency, boosts accountability, and gives both
• I am pleased to present AB 660, which aims to strengthen the integrity and efficiency of California's
• I am pleased to present AB 660, which aims to strengthen the integrity and efficiency of California's

Summary: The Assembly Local Government Committee heard a full agenda of bills focused largely on housing, permitting reform, transportation governance, and local government finance. Early in the hearing, AB 24 by Assemblymember DeMaio proposed changing SANDAG board selection to give rural unincorporated areas a stronger voice; members raised concerns about the approach and local input, and the bill ultimately did not receive a second at the time it was heard. The chair later clarified that because no second was made, the bill was held rather than voted out, though the transcript also reflects confusion and later attempts to revisit the item. Several housing and permitting bills advanced with committee amendments and broad support. AB 671 by Assemblymember Wicks would streamline restaurant permitting through self-certification and faster plan review; AB 920 by Assemblymember Caloza would require a centralized online portal for housing permit tracking in larger jurisdictions; AB 1061 by Assemblymember Kirk Silva would allow SB 9 housing in historic districts with limits to protect historic character; AB 818 by Assemblymember Anamarie Farías would streamline temporary manufactured housing after disasters; AB 660 by Assemblymember Wilson would tighten timelines and remedies for post-entitlement housing permits; AB 1308 by Assemblymember Hoover would allow third-party inspections for small residential projects if local inspections are delayed; and AB 1445 by Assemblymember Haney would expand downtown revitalization financing tools for mixed-use housing. Each of these measures drew support from housing, business, and industry groups, with some local-government and special-district stakeholders seeking continued amendments on certain bills. The committee also approved AB 1156, which updates the solar use easement program to better accommodate renewable energy development on water-constrained agricultural lands, and AB 964, which would let local governments offset certain state mandate reimbursement debts against amounts the state owes them. AB 1223, by Assemblymember Wynn, would let Sacramento-area transportation authorities propose sales tax measures for portions of the county and keep revenues local; it advanced despite some transportation and taxpayer concerns. Consent items AB 36 and AB 1131 were also approved. Most bills were reported out on bipartisan votes, often with committee amendments and some members noting they would continue working on the measures in later committees.

Transcript Highlights:

• They've done amazing work, and they talked to us about their farming operations and how efficient it
• is. and how efficient their water usage is, you know, but, you know, we've been doing it our way for
• It's going to be very, very difficult for us to become as efficient. as they are, for example.
• Making our delivery systems more efficient so that we will not lose that much water and therefore that
• Our members are committed to conservation and efficiency, yet, you know, they do with sometimes local

Keywords: 1184, house, all

Transcript Highlights:

• 45.040> and highlighting the need for reliable and highlighting the need for reliable and efficient
• efficient airport infrastructure. efficient airport infrastructure.
• ,<00:31:11.200> and<00:31:11.440> compliance correctly, efficiently, and compliance
• correctly, efficiently, and compliance with<00:31:12.000> the<00:31:12.240> MPCA<00:31
• to efficiently provide fire protection,<01:26:09.840> emergency<01:26:10.400> medical<

Bills: HF604, HF1972, HF578, HF1951, HF629, HF864, HF874, HF1155, HF884, HF2365, HF643, HF234, HF2655, HF2637, HF2535, HF2530, HF2344, HF584, HF524

Keywords: airport funding, bonds, transportation, capital investment, Karlstad, community center, Breckenridge, state bonds, economic development, HF578, Faribault, River Bend Nature Center, bonding bill, bond proceeds fund, Minnesota Department of Natural Resources, DNR grant, nature center, visitor center, environmental education, multicultural center

Transcript Highlights:

• This systematic approach focuses on prioritizing the greatest needs and efficiently completing capital
• This systematic approach focuses on prioritizing the greatest needs and efficiently completing capital
• This systematic approach focuses on prioritizing the greatest needs and efficiently completing capital
• This systematic approach focuses on prioritizing the greatest needs and efficiently completing capital
• <00:10:10.079> and use we utilize an efficient and use we utilize an efficient and effective

Keywords: 1183, house

Transcript Highlights:

• economic uh security through efficient economic uh security through efficient unline<00:20:15.000
• I'm just wondering how is it will it make the application process more efficient?
• and easier for the captives to efficient and easier for the captives to reapply<01:18:36.480> and
• Okay, so, um, by creating a more efficient system, um, it, when you say move the needle, I'm not sure
• attractive the more modern and efficient attractive the more modern and efficient we<01:19:37.800

Keywords: 910, house, all

Summary: The Committee on Finance held an informational briefing with the Department of Labor and Industrial Relations on its budget, staffing, and operations. The director reviewed department leadership and reported on recruitment and retention efforts, including a 14% vacancy rate, a 10.5% workforce increase from filling 189 positions, and the Hela Imua internship program, which has placed 516 interns since inception and led to 62 permanent hires. The department also described modernization efforts, including the UI Huakai project and the Disability Compensation Division’s electronic case management system, and said the unemployment compensation trust fund exceeded $71.5 million, triggering Schedule C for calendar year 2025. The department’s main budget requests included $2.9 million for fiscal year 2026 to support maintenance and operations of the electronic case management system, plus restoration of two enforcement specialist positions. Officials said those positions are needed to address a decline in investigators from 11 to six since 2009, improve compliance, and handle Hawaii Compliance Express certificate work. Additional requests included two human resources specialists to address recruitment backlogs, two labor enforcement specialists to reduce a backlog of Chapter 104 prevailing wage and wage cases, and two positions for the Office of Community Services to expand immigrant services and access centers. The department also discussed federal funding for unemployment insurance and workforce programs, including National Dislocated Worker Grants and Workforce Innovation and Opportunity Act funds, and said some funding is received in increments and may require extensions. Members asked about Kauai inspection coverage, federal funding uncertainty, the size of the special unemployment insurance fund, and whether the department could ramp up staffing during a future crisis. Officials said Kauai is currently served by inspectors from Honolulu and there are no plans to open a permanent island position because of staffing constraints. They said the department is meeting federal guidelines and is not in jeopardy, and that the special unemployment insurance fund has about $10 million, with current UI operations funded at a little over $15 million, meaning the fund may need to cover roughly $5 million if federal support declines. The director said the department would use the special fund to supplement shortfalls, but noted that federal funding cuts and the loss of ARPA support have already affected operations.