Transcript Highlights:

• . income. income.
• . incomes. incomes.
• </c> income they would need, taxable income income they would need, taxable income they<00:07:41.240>
• </c> reductions by income tax year 2025. reductions by income tax year 2025.
• You know, your constituents and the kind of average income level of your constituents, and I think that

Keywords: 1183, house

Transcript Highlights:

• That includes pension and annuity income, wages income.
• - and middle-income earners are going to mainly earn income on the left end of the spectrum.
• Low- and middle-income earners are going to mainly earn income on the left end of the spectrum.
• Income tax, sales tax.
• They have a higher income, and so with a higher income comes more taxes.

Summary: The Senate Budget and Fiscal Review Committee held an informational hearing on California’s Budget Stabilization Account, or Rainy Day Fund, with opening remarks focused on the state’s long history of revenue volatility and the role reserves play in smoothing downturns. The Legislative Analyst’s Office explained that California’s personal income tax base is highly volatile because high-income earners’ income is tied to capital gains and other fluctuating sources, and that Proposition 2’s current reserve rules set aside 1.5% of General Fund revenues plus a share of excess capital gains, but cap constitutional deposits at 10% of General Fund taxes. The LAO said its analysis evaluates reserve policy over decades and found the current system would cover about 30% of funding shortfalls in a 90th-percentile downturn scenario over 50 years, which is an improvement over no reserve but still inadequate. The LAO recommended raising the reserve cap substantially, ultimately to 50% by 2055, with an immediate increase to 20% and gradual increases thereafter. It also suggested either replacing Proposition 2’s deposit formulas with broader rules that capture volatility across all tax revenues or, alternatively, depositing all excess capital gains rather than only a share. The Department of Finance said the Governor’s prior proposal similarly sought to raise the cap from 10% to 20% and exclude reserve deposits and withdrawals from the state appropriations limit, arguing those two constraints limited the state’s ability to save during recent revenue surges. Other panelists and members discussed whether reserves should be paired with broader structural changes, including unemployment insurance reform, safety-net funding, infrastructure reserves, and the projected surplus temporary holding account. The California Budget and Policy Center supported reserve reform but emphasized balancing savings with current needs and noted other tools such as revenue increases, borrowing from special funds, and the new surplus-holding account. Members debated the causes and effects of Proposition 13, the appropriations limit, business departures, and whether reserve policy should be more directly tied to protecting Californians’ access to health care, food assistance, child care, and other core services. No votes or formal actions were taken, as the hearing was informational only.

Transcript Highlights:

• That includes pension and annuity income, wages income.
• - and middle-income earners are going to mainly earn income on the left end of the spectrum.
• Income tax, sales tax.
• We've moved stuff from the state level to the county's levels, putting counties in jeopardy.
• They have a higher income, and so with a higher income comes more taxes.

Committee: Senate Budget and Fiscal Review

Keywords: 987, senate, all

Transcript Highlights:

• Many of our constituents are doing very well, and we have among the highest levels of incomes in the
• Massachusetts ranks as one of the worst in the state for income inequality, yet it leads in median income
• Wages for low-income and middle-income workers have not risen in a real sense since 1980, while wages
• But I have teenagers, and they're expensive too, and it doesn't matter your income level.
• But I have teenagers, and they're expensive too, and it doesn't matter your income level.

Bills: H5085 , H5286

Committee: Joint Joint Committee on Children, Families and Persons with Disabilities

Keywords: poverty alleviation, family support, economic mobility, youth transition, financial education, matched savings, community programs, Department of Children and Families, DCF, child abuse investigation, child neglect, pediatrician, advanced practice registered nurse, medical misdiagnosis, rickets, Ehlers-Danlos syndrome, osteogenesis imperfecta, vitamin D deficiency, bone fragility, child welfare

Summary: The Joint Committee on Children, Families, and Persons with Disabilities held a hybrid hearing on miscellaneous bills, including H. 5286, which would require DCF to consult a medical professional when a parent presents evidence of a pre-existing diagnosis that could explain symptoms mistaken for abuse or neglect. Representative Brian Mario said the bill would give DCF another tool in difficult cases. Jennifer Fernandes testified about her family’s experience with her grandson being removed after doctors initially suspected a skull fracture that later proved unfounded, saying the bill could help prevent similar outcomes. Committee members expressed sympathy and indicated interest in further discussion. The committee then heard extensive testimony on H. 5085/S. 3095, the omnibus “An Act Significantly Alleviating Poverty.” Supporters described the bill as a comprehensive anti-poverty package built from the Poverty Commission’s work, combining higher cash assistance grants, matched savings, baby bonds, a guaranteed stipend for youth aging out of foster care, expanded tax credits, language access, clean slate record sealing, and worker protections. Senator Eldridge, Senator Miranda, Representative Decker, and many advocates argued that poverty is tied to housing instability, child welfare involvement, health harms, and racial and gender inequities, and that the bill would help families meet basic needs, build wealth, and reduce the benefits cliff. Witnesses from social service, legal aid, labor, immigrant advocacy, and public health groups strongly supported the bill’s provisions. Several focused on specific sections: child support pass-through and a broader good-cause exception for TAFDC recipients; extending the state EITC to ITIN filers; creating baby bonds and matched savings programs; automating criminal record sealing; improving language access at state agencies; and ending the subminimum wage for farm workers. Former foster youth and service providers said the guaranteed stipend would help young adults avoid homelessness and transition more safely into adulthood. No votes were taken during the hearing, and the chairs repeatedly noted the limited time and encouraged written testimony and follow-up conversations.

Transcript Highlights:

• That includes pension and annuity income, wages income.
• - and middle-income earners are going to mainly earn income...
• Income tax, sales tax.
• We've moved stuff from the state level to the county's levels, putting counties in jeopardy.
• They have a higher income, and so with a higher income comes more taxes.

Committee: Senate Budget and Fiscal Review

Summary: The Senate Budget and Fiscal Review Committee held an informational hearing on California’s Budget Stabilization Account, or Rainy Day Fund, with presentations from the Legislative Analyst’s Office, the Department of Finance, Practical Idealism Economics, and the California Budget and Policy Center. The LAO explained that California’s revenue volatility is driven largely by the personal income tax and high-income capital gains, and described how Proposition 2 deposits work, the 10% cap on the BSA, and the LAO’s evaluation that the current policy would cover only about 30% of funding shortfalls over 50 years in an unfavorable benchmark scenario. The LAO recommended raising the cap to 50% over time and either adopting broader deposit rules or depositing all excess capital gains. Finance said the administration had proposed raising the cap to 20% and excluding reserve deposits and withdrawals from the state appropriations limit. The Budget Center supported reserve reform but stressed balancing savings with current service needs and noted other tools such as revenue changes, borrowing from special funds, and the new Projected Surplus Temporary Holding Account. Committee members debated the purpose and adequacy of reserves, the role of the state appropriations limit, and whether reserves should be paired with broader fiscal reforms. Several senators argued that reserves are needed to preserve core services during downturns and that the current system is too complicated and too small, while others emphasized the need to protect spending on health care, child care, and other services for working Californians. There was also discussion of infrastructure spending as a possible countercyclical tool and whether deposits for infrastructure should be treated differently under reserve and SAL rules. The LAO said the Legislature has flexibility in defining infrastructure spending and suggested an infrastructure fund could function as a separate reserve-like mechanism. A significant portion of the hearing turned to broader tax and budget policy, including repeated references to Proposition 13, the state’s revenue structure, business departures, unemployment insurance financing, and the impact of inequality on California’s fiscal resilience. Some members argued Prop. 13 was driven by affordability concerns for homeowners, while others said it created loopholes that benefit corporations and constrain local revenue. The hearing did not take any vote or formal action; it remained informational, with the chair indicating the committee would continue questions and public comment after the panel discussion.

Transcript Highlights:

• But do we also look at, based on different income levels, how we're doing?
• I'm wondering if those graphs really show at different income thresholds and same level of growth.
• income.
• Mid-level income.
• So that information could be determined, and you could split out folks by their income levels.

Summary: House Finance met in work session on January 13, 2026, beginning with the introduction of new member Rep. Janice Zahn and a reminder about short-session amendment deadlines. The committee then heard JLARC’s 2025 tax preference performance reviews, covering nine preferences. JLARC recommended continuing several preferences, including natural gas transportation fuel exemptions, reduced B&O rates for travel agents and tour operators, a property tax exemption for nonprofit low-income housing developers, a property tax exemption for multipurpose senior centers, a sales and use tax remittance for disabled veteran adapted housing, a trade convention attendance nexus exemption, a B&O exemption for agricultural fertilizer and seed sales, and a hazardous substance tax exemption for certain pesticides. JLARC also recommended allowing unused silicon smelter-related preferences to expire. Members asked about legislative intent, data limitations, and how performance metrics should be tied more clearly to policy objectives; committee leaders and JLARC staff discussed a new standardized rubric for future tax preference performance statements and fiscal note review. The committee also noted that bills related to some of the reviewed preferences were already introduced. For the low-income housing exemption, JLARC said nonprofit developers were building homes as intended but that the current spending-based metric did not fully reflect the policy goal, and it recommended the legislature decide whether to continue or modify the preference. For multipurpose senior centers, JLARC said the exemption met its inferred objective and recommended continuation, with possible consideration of making it permanent. For the disabled veteran adapted housing remittance, JLARC said few eligible veterans were claiming the benefit and recommended continuation with changes to improve access and consultation with the Department of Veterans Affairs. On the trade convention attendance exemption, JLARC said use was unknown but the preference likely helped keep Washington competitive with other states and recommended continuation, though members questioned the lack of direct evidence and the administrative-burden rationale. The committee then received an update from the Economic and Revenue Forecast Council. The forecast showed the U.S. economy slowing but still growing, with Washington expected to have modest growth, weak employment gains, continued personal income growth, and slow construction. ERFC said tariffs and trade policy remained the biggest risks, inflation was expected to stay elevated in the near term, and the Federal Reserve had cut rates three times in 2025 with two more cuts projected in 2026. State revenues were up $105 million in the current biennium compared with the November forecast, but down $185 million in the next biennium, with growth driven in part by recent legislative changes and improved estate tax collections. Members asked about sector-specific employment trends, the impact of high-income households on retail sales, and how state revenues compare with personal income over time. The meeting adjourned after the forecast presentation.

Transcript Highlights:

• </c> paid at the entity level. paid at the entity level.
• income tax return.
• income tax return.
• </c><00:29:39.200><c> Our</c> from this state in its income. Our from this state in its income.
• flows directly to the owner, who reports and pays state income tax at the individual level.

Committee: Senate Taxes

Keywords: 1187, senate, all

Transcript Highlights:

• on</c> individual income tax income taxes on individual income tax income taxes on business<00:06:43.639
• The base for the individual income tax is called Minnesota taxable income.
• the state income tax.
• at the entity level um the income<00:32:19.159><c> of</c><00:32:19.320><c> the</c><00:32:19.480><c>
• share of their income and their total income and tax, and the state and individual income tax are the

Committee: House Taxes

Keywords: 1183, house

Transcript Highlights:

• , at our area level, and then even down to the county level.
• they have income or no income, broken down by age.
• they have income or no income, broken down by age.
• Enrollees with dependents under 14 by age and with income, with or without income. by age and with income
• , with or without income.

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Summary: The meeting focused on Arkansas’s workforce development reorganization and a set of federal waiver requests intended to consolidate and streamline the state’s WIOA system. Commerce officials said the department has already centralized shared services, split the old workforce agency into reemployment and Arkansas Workforce Connections, and submitted a combined WIOA/Perkins state plan. They described nine waiver requests, including replacing local workforce boards with a single statewide board, creating one planning and accountability structure, allowing more flexible movement of funds across regions, easing the “last-dollar” requirement for training and supportive services, reducing required youth program elements, and allowing affiliate sites instead of mandatory comprehensive centers. Officials said the goal is to reduce administrative costs and redirect more money to training, supportive services, and employer-driven programs. Legislators raised concerns about rural representation, local employer relationships, and whether local offices would close. Commerce officials said local offices would remain open, some current staff could be rehired, and regional business councils would preserve local employer input. They said the current system is fragmented and expensive, with roughly $14 million in federal workforce funds flowing through local boards but only about $1.9 million spent on training and supportive services last year; they argued the reorganization could raise training spending to about $6 million to $7 million annually. Questions also addressed board composition, performance accountability, and how funds could be shifted between regions when needs change. The State Board of Workforce Development had approved the waiver package 11-3 before it was submitted to the U.S. Department of Labor. Members also discussed workforce access for people with disabilities, child care and transportation supports, and the role of Arkansas Launch, apprenticeships, and career and technical education. Officials said vocational rehabilitation now has better access to the state job board and that referrals and data-sharing with DHS and other partners still need improvement. Several legislators emphasized the need for training to align more closely with employer demand, especially in manufacturing, technology, health care, and rural areas. The committee also heard a brief overview of Workforce Pell, with staff explaining that the new federal short-term Pell option has narrow eligibility rules and may not fit many existing programs, including some CDL and CNA programs.

Transcript Highlights:

• how to calculate income.
• And we do track that at the state level, at our area level, and then even down to the county level.”
• Of the 227,825 enrollees, 107,329 have some type of income. 120,496 had no income.
• income or no income, broken down by age.
• Enrollees with dependents under 14 by age and with income, with or without income.

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Summary: The meeting focused on Arkansas’s proposed workforce system overhaul, including a combined WIOA/Perkins state plan and a package of federal waiver requests intended to consolidate workforce governance, reduce administrative costs, and redirect more funding to training and supportive services. Commerce officials said the plan would replace the current structure of 10 local workforce boards and more than 200 board members with a single statewide board and one administrative entity, while keeping local offices open and using regional business councils to preserve employer and local input. They said the state has already reduced Commerce headcount and operating costs, and that the changes would improve coordination with higher education, adult education, vocational rehabilitation, DHS, and Arkansas Industry Connect. Much of the discussion centered on the waiver package, especially the proposal to make the state board function as the local board, allow more flexible movement of funds across regions, eliminate the WIOA “last dollar” requirement for training and supportive services, create affiliate sites instead of requiring every area to maintain a comprehensive center, and relax the 14 youth program element requirement. Officials said the State Board of Workforce Development approved the waiver package 11-3 before it was submitted to the U.S. Department of Labor, and that implementation would begin only after federal approval and a closeout process, likely taking up to a year. They also described plans to streamline referrals and data sharing, expand mobile and virtual services, and use a more centralized model to improve customer service and employer engagement. Members raised repeated concerns about rural representation, local control, board composition, and whether jobs and relationships would be lost if local boards were eliminated. Commerce officials responded that local offices would remain open, some current staff could be rehired by the state, and regional business councils would help ensure local employer voice. Several members also questioned how the funding was being used, citing audit findings that only about $1.8 million to $1.9 million of roughly $14 million to $15 million in federal workforce funds had gone to training and supportive services. Officials said the reorganization could increase annual training spending to roughly $6 million to $7 million by reducing overhead, one-stop operator contracts, and board administration. The committee also discussed how the changes might support workforce training facilities, apprenticeships, child care and transportation assistance, and employer-driven training in fields such as manufacturing, health care, technology, and welding. The Division of Higher Education also briefed members on Workforce Pell. Officials explained that the new federal program would extend Pell eligibility to short-term programs, but only within narrow limits, such as 150 to 599 clock hours and 8 to 15 weeks of instruction, with additional completion and employment benchmarks. They said Arkansas is working with colleges and universities to identify programs that fit the criteria and that the governor has designated the Division of Higher Education to lead implementation. No votes were taken by the committee during this portion of the meeting.

Transcript Highlights:

• <c> for</c><00:08:09.599><c> income</c><00:08:10.000><c> aligned</c> for income options for income aligned
• </c> into low-income neighborhoods. into low-income neighborhoods.
• Middle-income households now can move out of low-income neighborhoods into middle-income neighborhoods
• Middle-income households now can move out of low-income neighborhoods into middle-income neighborhoods
• Middle-income households now can move out of low-income neighborhoods into middle-income neighborhoods

Keywords: Meeting Start 00:00:15 Roll Call 00:00:45 Discussion of Pro-Growth Housing Policies 00:02:33 Adjournment 01:17:15, 958, all

Summary: The Housing Task Force 2.0 reconvened with several new members and heard a presentation from Kentucky Housing Corporation Executive Director Winston Miller and Deputy Executive Director Wendy Smith. They framed the task force’s work as a practical effort to address Kentucky’s housing shortage, update members on the current housing landscape, summarize existing state and federal resources, and suggest areas for the task force to focus on over the coming year. KHC said its 2024 housing supply gap analysis found Kentucky is short about 206,000 housing units, split roughly evenly between rental and homeownership, and projected the gap could grow to 287,000 units by 2029 if current trends continue. They emphasized that every county in Kentucky needs more housing, that the 2008 housing crisis and loss of construction capacity remain major causes of the shortage, and that current pressures include high interest rates, rising insurance and tax costs, construction cost inflation, and housing prices and rents growing faster than incomes. KHC also said homelessness has risen in Kentucky, with point-in-time counts showing double-digit increases in recent years. The presenters reviewed existing resources, including federal programs, the Kentucky Affordable Housing Trust Fund, the rural housing trust fund, KHC mortgage and down payment assistance programs, and the state mortgage interest deduction. They said these resources are important but insufficient to close the gap, and noted that a proposed federal FY2026 budget would cut HUD programs by 44%, potentially removing about $286 million from Kentucky housing resources, though no action has been taken yet. They urged the task force to consider stronger, more flexible tools such as a revolving loan fund, a state affordable housing tax credit, and economic development and employer-assisted housing incentives, and pointed to Indiana’s housing infrastructure and regional development funds as examples. No votes or formal actions were taken in the portion provided.

Transcript Highlights:

• The corporate income tax outlook for FY 25 shows that we decreased the corporate income tax forecast
• level.
• FIT operates at no cost to families in New Mexico, regardless of income level.
• Reading for low-income kids is better.
• That completion rate process at a national level, local level, or state level to say what works best?

Transcript Highlights:

• There's also some data about who in certain income levels are receiving this funding.
• There's also some data about who in certain income levels are receiving this funding.
• And that's regardless of income level.
• And that's regardless of income level.
• , not state median income, do not get that level of financial support.

Summary: The Assembly Budget Subcommittee on Climate Crisis, Resources, Energy, and Transportation held an oversight hearing on home hardening and defensible space as wildfire mitigation strategies. The chair opened by stressing that California has reached a tipping point, with repeated community-scale wildfire losses, rising insurance costs, and growing utility wildfire mitigation expenses. The hearing was organized around four panels: what home hardening and defensible space are, community risk reduction and coordination, evaluation of current defensible space programs and proposed investments, and the future of home hardening and the California Wildfire Mitigation Program. The first panel featured IBHS, the Legislative Analyst’s Office, and local wildfire mitigation advocates. IBHS described wildfire spread through embers, flames, and radiant heat, emphasizing that structure separation, removing combustible materials within the first five feet of a home, and combining multiple mitigation measures significantly reduce loss. It highlighted its Wildfire Prepared Home and Wildfire Prepared Neighborhood standards, including an “essential” and “enhanced” level, and said California is ahead of other states but still needs scalable, standardized, and sustainably funded mitigation. The LAO outlined key policy questions for the Legislature, including the state’s role, intergovernmental coordination, cost-effectiveness, program design, measurement of success, long-term sustainability, and barriers to implementation. The chair and panelists discussed estimated costs, including roughly $15,000 for a basic retrofit and about $50,000 for more extensive ignition-resistant construction, and whether state funding should focus on the most cost-effective initial measures. The second panel focused on scaling adoption through local coordination, education, financing, and community-based programs. Megafire Action argued that home hardening is a market adoption problem and said the state should not try to pay for every home, but instead target high-leverage interventions across the “customer journey,” including education, financing, trusted certification, and neighborhood network effects. Ventura Regional Fire Safe Council described free home assessments, small retrofit grants, Firewise community support, and the importance of neighborhood-level action, local capacity, and cultural change. Marin Wildfire Prevention Authority described its locally funded model, grant program, public education efforts, and an Ember Ready program that helps residents navigate home hardening and Zone Zero compliance. The chair repeatedly emphasized the need for a coordinated statewide marketing campaign, stronger incentives, better insurance discounts, and more use of local, utility, federal, and private funding sources. The third and fourth panels addressed Cal Fire’s defensible space inspection program, the proposed defensible space financial assistance program, and broader state investments. Cal Fire said homes lacking compliant defensible space are far more likely to be damaged or destroyed and requested ongoing funding and staffing to stabilize inspections statewide; the LAO suggested the Legislature consider alternative funding sources such as GGRF or a reinstated SRA fee. Cal Fire and the State Fire Marshal explained that Zone Zero sets a minimum standard, local governments cannot go below it, and grant prioritization will favor jurisdictions that submit inspections. Cal Fire also said the new defensible space financial assistance program would focus on ember-resistant zone-zero work and, in the Southern California counties covered by the legislation, would assist about 3,125 homes at an estimated $8,000 per home. In the final panel, the State Fire Marshal described California’s layered strategy of parcel-level home hardening, defensible space, and neighborhood-scale mitigation, along with technical support, financial assistance, and incentives such as insurance discounts and builder marketing. The overall theme was that California must move from isolated efforts to a coordinated, science-based, and scalable statewide approach to reduce wildfire losses.

Transcript Highlights:

• In the personal income tax outlook for FY 24, we saw a 12% contraction in personal income tax revenue
• tax instead of personal income tax.
• You'll see under the investment income line for FY 24 that investment income grew by 41%.
• This reflects the personal income tax and corporate income tax collections in orange—what would have
• So that's not a sustainable level.

Committee: House House Appropriations & Finance

Transcript Highlights:

• are sufficient to ensure all low income.
• Families at all income levels are facing student loans.
• It is critical to the economy and the health and well-being of families at every income level, and that
• And so can you just talk about reaching that From lower middle income to higher income, the impact it
• What level of quality?

Bills: SB2

Committee: House House Appropriations & Finance

Keywords: SB 2, State Highway Project Bonds, highway funding, transportation bonds, state road fund, motor vehicle fees, vehicle registration fees, electric vehicle fee, EV surcharge, plug-in hybrid fee, weight distance tax, road construction, infrastructure financing, Department of Transportation, State Transportation Commission, bonding authority, county road funds, municipal road funds, transportation improvement program, state highways

Transcript Highlights:

• Um as you income on home energy costs.
• It would provide a rearage forgiveness for customers who have income up to 80% of area median income,
• It would provide a rearage forgiveness for customers who have income up to 80% of area median income,
• It would provide a rearage forgiveness for customers who have income up to 80% of area median income,
• up to 80% of area median have income up to 80% of area median income<00:10:38.320><c> who</c><00:10:

Keywords: 1183, house

Transcript Highlights:

• There's also some data about who in the certain income levels are receiving this funding.
• And that's regardless of income level.
• level.
• So I think for certain income levels, there may need to be some help, whether that's in the form of rebates
• , not state median income, do not get that level of financial support.

Keywords: 988, house, all

Transcript Highlights:

• The income levels are slightly different with Medi-Cal.
• So, again, happy to talk about it more, but want to give that high-level note.
• And guaranteed income.
• So you're saying it would be more cost-efficient to do it at the county level than the statewide level
• CSBG is approximately 90% of the grant levels.

Keywords: 988, house, all

Transcript Highlights:

• Once the individual income tax is reduced to 1.4%, total income tax would be eliminated altogether.
• So the elimination of the income tax, nine other states have done it, and if we can do it, we're leveling
• So the elimination of the income tax, nine other states have done it, and if we can do it, we're leveling
• Constituents at a more intricate level, at a closer level, and figure out what rules they should have
• , the national level, right?

Committee: House Commerce

Keywords: 959, house, all

Transcript Highlights:

• So it would be January 1, 2026, for the personal income tax, and then the corporate income tax won't
• This priority list is the same across political affiliation and income levels.
• At the state level, income tax provides for schools.
• I think to Senator Dismang's point, with the focus on the lower income brackets, the lower income tax
• I think to Senator Dismayne's point, with the focus on the lower income brackets, the lower income tax

Committee: All REVENUE & TAX - SENATE

Keywords: 1204, all