Transcript Highlights:

• Our computers are very outdated.
• If your computers—were they the same computers back in 2023? Yes.
• Because it's not their computers, Sheriff.
• If they're not cloud-based, they're not competing.
• Cloud-based system. Pardon, say it again. Cloud-based system. Yes.

Committee: Joint Joint Legislative Audit Committee

Transcript Highlights:

• They're cloud-based. They're not AI.
• And I think the cloud almost becomes a misnomer because it turns out that it's not actually in the cloud
• And you had a question about cloud versus AI. I mean, we have a lot of experience on the cloud.
• And their cloud or AI? We see cloud and AI, and inference, excuse me.
• As we've already heard, data centers are poised to power the future of AI and cloud computing, and the

Transcript Highlights:

• And they're cloud-based.
• We are the leader in KDE and K-12 is the leader in national cloud-based computing for education technology
• </c><00:32:02.920><c> computing</c><00:32:03.400><c> for</c> national cloud-based computing for national
• cloud-based computing for education<00:32:04.080><c> technology.
• </c> uh would immediately impacted as a cloud uh would immediately impacted as a cloud cloud-based<00

Summary: The meeting began with approval of the prior minutes and then focused first on the Commonwealth Office of Technology’s legacy systems and two specific projects. COT officials said many agencies have made progress moving off legacy applications, with remaining mainframe systems slated to be retired through RFPs or other work orders. They also described a legacy funding pool of $10 million per biennium used to help agencies transition. The two projects discussed were the Kentucky aerial photography and elevation data program, which provides statewide aerial imagery and lidar data for GIS, E911, environmental, transportation, and other uses, and a citizen identity and access management system intended to give residents a single login for state services. Officials said the GIS program costs about $1.2 million annually to host and maintain, with data acquisition costing several million more per year, and that the citizen identity system would cost about $2.5 million per year after an initial three-year COT investment. Members asked about duplication of funding, licensing, local government use, and whether multi-factor authentication would be required; COT said the GIS data is being acquired as statewide unlicensed data and that MFA would be available but not yet mandated statewide. Committee members pressed COT on costs, overlap with cabinet-level IT spending, and the practical benefits of the GIS and identity projects. COT explained that GIS hosting is generally covered through enterprise assessments billed quarterly to agencies, while the new aerial data is intended to benefit the whole state and local partners. On the identity project, officials said it would centralize authentication for citizens who use state systems, improve compliance with zero-trust and NIST-related security expectations, and reduce help desk and maintenance burdens through self-service account tools. Members also discussed whether the system would extend to local governments; COT said it would be a Kentucky.gov-style state login for users inside the state identity infrastructure, not a local-government system. The Department of Education then testified that it does not operate mainframes or major legacy systems, having moved long ago to cloud-based, off-the-shelf products and vendor-supported services. KDE officials described a strong emphasis on staff cybersecurity awareness, standardized statewide systems, vendor risk-sharing, and reducing sensitive data exposure, including efforts to move away from student Social Security numbers. They also highlighted a transition from Microsoft Active Directory to Identity Automation, which they said will improve identity management and make multi-factor authentication universal across K-12. In response to questions about Kentucky Wired and internet service, KDE said all 171 school districts and KDE agencies have been moved to a new next-generation internet service through ENA by Zayo, with strong satisfaction, e-rate savings, and better reliability. Officials warned that any internet disruption would immediately affect attendance, grades, student records, payroll, security systems, and communications across the K-12 system.

Transcript Highlights:

• </c> involves mobile devices, cloud-based involves mobile devices, cloud-based evidence,<00:12:45.839
• ,</c><00:13:51.360><c> and</c> mobile devices, computers, and mobile devices, computers, and cloud-based
• </c><00:13:52.880><c> Digital</c><00:13:53.279><c> forensic</c> cloud-based data.
• Digital forensic cloud-based data.
• <00:14:14.160><c> regional</c> away to Louisville to a regional away to Louisville to a regional computer

Summary: The House Budget Review Subcommittee on General Government heard presentations on several Attorney General and Homeland Security budget items. Amy Burke of the Department of Child Support Services said the program inherited a structural shortfall of more than $13 million after the transition from CHFS, including about $14 million in federal child support incentive funds that had been used to cover core operating costs and county attorney contracts. She explained that federal law requires incentive funds to supplement, not supplant, baseline services, and said the Attorney General’s budget request seeks general fund support to replace that gap and help balance the program going forward. Members asked for clarification on the misuse of the funds, the size of the shortfall, and whether the requested money would be unrestricted; staff said the intent is to use it as a contract offset for core services. Commissioner Rich Ferretti then presented the Department of Criminal Investigations’ request for additional staffing and a Western Kentucky Digital Forensics Lab. He said DCI wants one additional special victims unit investigator and one digital forensic examiner to handle increasingly digital cases involving child exploitation, sexual assault, human trafficking, and technology-facilitated abuse. He also described plans for a lab in Mayfield, co-located with the new Mayfield Police Department facility, to reduce travel time, speed forensic processing, and improve access for rural communities. Committee members responded positively and asked no substantive questions. Finally, the Office of Homeland Security outlined Kentucky’s Next Generation 911 project. Officials said the current 911 system was built for landlines, while most calls now come from mobile devices, and the upgrade will add precise location routing plus text, photo, and video capability. Shelley Clark described the funding model, including wireless subscriber fees and a dedicated tech fund, and reviewed progress on mapping, vendor selection, and migration to the new platform, with completion expected by July 2027. Members asked about local maintenance costs and the impact on rural areas; officials said maintenance is local but supported in part by collected funds, and implementation will not be delayed for rural localities. The meeting concluded with no votes or formal actions taken.

Transcript Highlights:

• Cloud, St. Cloud Tech, Staples, and then the U...
• for those up by St Catherine St Cloud for those up by St Cloud<00:33:19.720><c> St</c><00:33:20.039>
• ><c> and</c><00:33:22.760><c> then</c> Cloud St Cloud Tech uh Staples and then Cloud St Cloud Tech uh
• So, up here, and not to pick on any one track, um, you have communications versus computer science.
• Because some of the majors they had back, you know, computers really weren't much of a thing.

Committee: Senate Higher Education

Transcript Highlights:

• We're continuing our move to the cloud, including our internal private cloud as well as working with
• our partners on the cloud services that they have.
• They're available in the cloud. They're proud.
• They're available in the cloud. They're easily accessible.
• It's Oracle Fusion Cloud.

Committee: House Subcommittee on Appropriations - General Administration

Transcript Highlights:

• Kentucky is really a national leader in cloud-based computing for K-12 and government, and I would even
• Kentucky is really a national leader in cloud-based computing for K-12 and government, and I would even
• Kentucky is really a national leader in cloud-based computing for K-12 and government, and I would even
• </c><00:09:00.000><c> computing</c><00:09:00.800><c> uh</c><00:09:00.880><c> for</c> leader in cloud-based
• computing uh for leader in cloud-based computing uh for K12<00:09:01.760><c> and</c><00:09:01.839><c

Summary: The committee heard an Office of Education Technology presentation on the Kentucky Education Technology System (KTS) and a request to increase its annual budget from $15.4 million to $30 million, including an additional $14.6 million. The witness described KTS as a statewide service model that provides districts with student information and financial systems, internet bandwidth, regional support, cybersecurity, online registration, learning management and email services, and collaborative instructional technology support. He argued the state’s centralized purchasing saves districts 40% to 60% compared with buying services individually, and said federal internet discounts and district matching funds create a strong return on investment. He also said KTS has faced long-term funding cuts, has not received a cost-of-living increase since 1992, and is now at a “breaking point” where some services may have to be shifted to districts at higher cost. The request was broken into six main items: restoring funding for the computer science and information technology academy; strengthening cybersecurity defenses in response to sharply rising attacks on K-12 systems; funding online registration through Infinite Campus; stabilizing ongoing support costs for Infinite Campus; providing cost-of-living increases for KTS services; and increasing the KTS financial assistance sent to districts, which requires local matching funds. Members asked about the current appropriation, and the witness said it is $15.4 million. One member praised the office’s work and support for districts, while another noted the district had been an early adopter of one-to-one technology. The committee then received an overview of the KRS 156 salary schedule and step-and-rank system for state-operated career and technical education staff at area technology centers. Officials explained that salaries are set under statute and regulation based on years of service and educational rank, with annual calculations tied to statewide teacher salary averages and retroactive adjustments to July 1. They said the current ABR request is $325,000 over the biennium to cover step and rank increases. The presentation noted that KRS 156 salaries are generally comparable to local districts but are less competitive with business and industry, making recruitment and retention difficult, especially for instructors coming from the trades. Members agreed that trade instructors are underpaid relative to the market and said the issue deserves further review, with department officials indicating they are considering possible statutory revisions and a delayed implementation in a future biennium.

Transcript Highlights:

• If we could allocate some of that money to update our computers—our computers are very outdated; they
• If your computers—were they the same computers back in 2023? Yes.
• Because it's not their computers, Sheriff.
• If they're not cloud-based, they're not competing.
• If they're not cloud-based, they're not competing.

Committee: Joint Joint Legislative Audit Committee

Summary: The committee began with opening remarks about moving to a monthly, two-hour schedule for more timely and focused oversight of Auditor General findings. Members also recognized Melanie Chesney for 32 years of service to the Office of the Auditor General, with several speakers praising her work and her role in strengthening the relationship between the Auditor General’s office and J-LAC. The main agenda item was the Auditor General’s December 2025 special audit on the school safety interoperability fund and interoperable communication systems. Staff reported that about $26 million had been allocated to 14 law enforcement agencies for systems intended to improve real-time communication between schools and first responders. The audit found that all 14 agencies used the money for interoperable systems, but four agencies allowed private or tribal schools to participate contrary to statute, and several agencies failed to submit required annual expenditure reports. It also found that none of the three systems reviewed met every statutory requirement as written, in part because some requirements were vague or interpreted differently by vendors and agencies. The audit recommended that agencies recover and report any improper benefit to non-public schools, avoid using fund money for ongoing costs tied to non-public school participation, submit missing reports, and improve cost planning and contract monitoring; it also recommended that the legislature clarify eligibility for private and tribal schools and revisit unclear system requirements. The audit further found procurement and contracting problems at nine of 14 agencies, including weak or missing sole-source justifications, contracts that lacked accountability and termination provisions, and poor documentation of pricing and deliverables. Several agencies had not planned for ongoing annual costs, which the audit estimated could range from about $16,000 to $382,000 per rural county depending on the system. In the discussion, members expressed frustration with sole-source contracting and lack of documentation, and some said they would oppose future vendor bills without competitive bidding and stronger payment controls. The auditor also described mixed system performance: some agencies reported useful features such as panic alerts, camera access, and map sharing, but other systems were not fully functional or had never been implemented. The committee then heard from the Arizona Sheriffs’ Association, whose president said sheriffs support the goal of improving school safety, described county implementation challenges, and defended the use of local staff to manage the projects, while acknowledging that smaller counties face staffing and connectivity limits.

Bills: HB2894 , HB3418 , HB3415 , HB3413 , HB3414 , HB3416 , HB3417 , HB3419 , HB3420 , HB1739 , HB1752 , HB1979 , HB2941 , HB2992 , HB3075 , HB3086 , HB3177 , HB3269 , HB3278 , HB3279 , HB3497 , HB3644 , HB4432 , HB3720 , HB3849 , HB3882 , HB3919 , HB3941 , HB4118 , HB4141 , HB4268 , HB4342 , HB4428 , HB4429 , HB4434

Keywords: HB2894, Oklahoma Rural Jobs Act, rural jobs, rural investment, tax credit, capital investment tax credit, state tax credits, economic development, rural fund, rural investor, qualified investment, eligible business, Department of Commerce, rural business, investment certification, tax liability, credit cap, workforce development, small business finance, rural development

Bills: HB2894 , HB3418 , HB3415 , HB3413 , HB3414 , HB3416 , HB3417 , HB3419 , HB3420 , HB1739 , HB1752 , HB1979 , HB2941 , HB2992 , HB3075 , HB3086 , HB3177 , HB3269 , HB3278 , HB3279 , HB3497 , HB3644 , HB4432 , HB3720 , HB3849 , HB3882 , HB3919 , HB3941 , HB4118 , HB4141 , HB4268 , HB4342 , HB4428 , HB4429 , HB4434

Keywords: HB2894, Oklahoma Rural Jobs Act, rural jobs, rural investment, tax credit, capital investment tax credit, state tax credits, economic development, rural fund, rural investor, qualified investment, eligible business, Department of Commerce, rural business, investment certification, tax liability, credit cap, workforce development, small business finance, rural development

Transcript Highlights:

• I also want to note that we continue to have Cal Compute in this bill, which is an exciting new public
• cloud that will help democratize and expand access To compute for folks who maybe can't afford compute
• cloud, which is critical to building AI infrastructure in the state.
• And we are creating Cal Compute, which I think will enhance innovation because compute has become so
• And we are creating Cal Compute, which I think will enhance innovation because compute has become so

Summary: The Assembly Privacy and Consumer Protection Committee heard SB 53 by Senator Wiener after the bill was substantially amended on the floor and referred back under Assembly Rule 77.2. The author explained that the bill, focused on AI safety and frontier models, now applies its main requirements to models trained above 10^26 FLOPs, includes broader whistleblower protections, sets different disclosure obligations based on company revenue, removes Attorney General rulemaking authority in favor of an annual Department of Technology report, and keeps a $1 million-per-violation penalty. He also highlighted CalCompute, a proposed public cloud intended to expand access to compute and support innovation. Supporters, including Encode AI and Economic Security California Action, argued the bill would hold AI developers accountable to their public safety commitments, improve transparency, protect whistleblowers, and help democratize access to AI infrastructure. They said the measure reflects extensive negotiation with the administration and stakeholders and aligns with recommendations from the governor’s frontier-model working group. Opponents, including CalChamber, TechNet, CCIA, and Chamber of Progress, remained opposed unless amended, saying they appreciated the author’s work but still had concerns outlined in their letters. Committee members questioned whether the bill could stifle innovation, how it would address worst-case AI harms, and whether it could reach actors outside California. The author responded that the bill is intended as a light-touch transparency measure, that it applies to entities doing business in California, and that California can still lead in the absence of federal action. Members also emphasized the importance of whistleblower protections and CalCompute. The committee voted 12-1 to pass the bill, with DeMaio voting no and Patterson not voting, and the bill was sent back to the floor.

Transcript Highlights:

• House Bill 720 is an act relating to the cloud computing public utility act, introduced by Representatives
• Please listen to the first reading of the bill. >> H720, an act relating to the cloud computing public
• &gt;&gt; H720 an act relating to the cloud &gt;&gt; H720 an act relating to the cloud computing<00:06
• </c> computing public utility act. computing public utility act.

Transcript Highlights:

• compute.
• Essentially a framework for developing a public cloud compute system that would be available for people
• To answer your question, the compute is in the state-built cloud environment.
• So if demand goes up, the compute power goes up instantly. So it covers that.
• We don't, I think we heard earlier, we're not moving very fast on Cal-Compute.

Summary: The subcommittee heard May Revision proposals from the Department of Food and Agriculture, the Government Operations Agency, the Department of Technology, and the Franchise Tax Board, with public comment to come later and all items held open. CDFA presented funding for the animal care program implementing Proposition 12, including a one-time $5.2 million General Fund transfer to the Ag Fund and $2.8 million ongoing, and the LAO recommended approval while noting the Legislature should revisit the funding once litigation and federal preemption questions are resolved. CDFA also proposed ending state oversight of industrial hemp and moving to the federal USDA program by January 1, 2028, with an $8.3 million General Fund transfer to cover startup and transition costs; the LAO supported the transition. Additional CDFA items included $204,000 ongoing and one position to preserve agricultural statistics reporting after USDA reorganization, and trailer bill changes to clarify the department’s 5% indirect cost cap; both drew no objections from Finance or LAO. The Government Operations Agency and Cradle to Career items focused on implementing the new federal Workforce Pell program. Finance described trailer bill language establishing state eligibility processes, with the California Student Aid Commission as the authorizing entity in consultation with the Workforce Development Board, and proposed $1.3 million one-time General Fund for Cradle to Career to build data linkages. The LAO urged caution because federal rules were just finalized and said more information was needed on workload, costs, and whether existing data systems could support the work. Senators raised policy concerns about limiting the program to public institutions and about aligning the proposal with broader workforce and labor goals. The committee also briefly discussed SB 53/Cal Compute, with GovOps saying no appropriation had been provided for its consortium work, and Finance saying the administration was not proposing funding at this time. The Department of Technology presented a $30 million operational backstop for the Middle Mile Broadband Initiative, intended to cover any shortfall if expected revenues from the Golden State Net third-party administrator do not materialize in time. The LAO initially recommended rejection over broad spending authority, then suggested amendments with stronger reporting and legislative review; committee members questioned the revenue assumptions, oversight, and whether the request could recur. CDT also sought $1 million for Poppy, the state’s GenAI digital assistant, to expand secure statewide use; the LAO had no concerns, and members asked about data security, model bias, training restrictions, and possible local-government use. Finally, FTB proposed realigning CalFile resources after the federal Direct File program was discontinued, retaining three ongoing positions and returning the rest of the funding and positions to the General Fund; the LAO said the reduced scope was reasonable, and members discussed keeping the free filing system user-friendly and ready for future federal changes. The committee also heard the administration’s digital pre-written software tax proposal, which would extend sales tax to electronically delivered software and SaaS beginning January 1, 2027, generating an estimated $450 million General Fund in 2026-27 and $900 million ongoing, plus local revenue. The LAO supported modernizing the tax base but recommended broadening the proposal to include more digital products while considering a business-use exemption or reduced rate, and flagged a newly added video game exemption as a revenue downside. Senators generally supported the goal of raising revenue and aligning California with other states, but questioned the local revenue distribution and equity effects, and one senator said they would not support expanding the tax to books, music streaming, and similar consumer products. All items were left open without votes.

Transcript Highlights:

• I also want to note that we continue to have Cal Compute in this bill, which is an exciting new public
• cloud that will help democratize and expand access to compute for folks who maybe can't afford compute
• It would establish a publicly owned and operated compute cloud, which is critical to building AI infrastructure
• Compute is the most important factor enabling AI innovation, yet it’s controlled by a tiny number of
• Cal-Compute received nearly universal support during the legislative process...”

Committee: House Privacy and Consumer Protection

Summary: The Assembly Privacy and Consumer Protection Committee heard SB 53 by Senator Wiener, which had been substantially amended on the floor and was referred back to committee. Wiener explained that the bill builds on prior AI safety work, including the vetoed SB 1047 and recommendations from the governor’s frontier-model working group. He said the revised bill narrows the strongest requirements to very large models and larger companies, adds broader whistleblower protections, requires annual safety framework reviews, shifts some internal risk reporting to the Office of Emergency Services, removes Attorney General rulemaking authority, and includes CalCompute, a public compute cloud intended to expand access and support innovation. Supporters, including Encode AI and Economic Security California Action, argued the bill is a balanced, light-touch approach that increases transparency and accountability without stifling innovation. They emphasized the need for safety testing, protections for workers who report dangerous practices, and CalCompute as a way to democratize access to AI infrastructure. Additional supporters, including Anthropic, the Secure AI Project, and Omidyar Network, also voiced support. Opponents from CalChamber, TechNet, and the Chamber of Progress remained opposed unless amended, citing concerns outlined in their letters, though they thanked the author for revisions. Committee members questioned whether the bill could hinder innovation, how it would address catastrophic AI risks, and whether it could apply to out-of-state actors. Wiener responded that the bill is aimed at transparency and safety for companies doing business in California, especially the largest labs, and that California can influence national standards. Members also highlighted the whistleblower provisions and CalCompute as important parts of the measure. The committee then voted 12-1 to pass SB 53, with one no vote and two members not voting, and the bill was sent back to the floor.

Transcript Highlights:

• And Cal Ecba and the ...and also in cloud storage systems.
• And if that information was on cloud storage, in Google or in other places, then on those cloud storage
• storage, you're getting a second-stage warrant to then go to the cloud storage.
• it, write a warrant to go directly to any potential cloud storage.
• Or it was, in fact, recording you, and it's connected to cloud storage.

Committee: House Privacy and Consumer Protection

Summary: The committee first took up AB 56, a bill by Assembly Member Bauer-Kahan to require social media platforms to display a warning about potential mental health harms from sustained use, especially for minors. The author and supporters, including a bereaved parent and a therapist, argued that social media contributes to teen anxiety, self-harm, and isolation, and that a warning label would help families make informed choices. Opponents from TechNet, CCIA, and privacy groups said the bill would be ineffective, could be ignored, and raised First Amendment and implementation concerns. Members discussed emergency access during disasters, multilingual warnings, and whether the warning should be more action-oriented. The committee accepted amendments, then voted 9-0 to pass AB 56 to the Judiciary Committee, with several members noting support and some requesting to be added as coauthors. The committee then heard AB 358, which would let law enforcement inspect certain tracking or surveillance devices found in a victim’s home or vehicle without first obtaining a warrant, if the victim consents. The author and a San Diego prosecutor said the bill is meant to help stalking and domestic violence survivors quickly examine devices like AirTags or hidden cameras before evidence is lost, and they emphasized the bill was narrowed to devices used solely for surveillance. Opponents from the EFF and ACLU argued the bill would weaken CalECPA and create a warrantless-search loophole, while some members raised Fourth Amendment, transparency, and ICE-sharing concerns. Others supported the bill as a narrow, common-sense tool for victim safety. The committee passed AB 358 on a 9-0 vote to Appropriations. Finally, the committee heard AB 1137, which would strengthen California’s reporting system for child sexual abuse material on social media platforms. The author said the bill expands who can report CSAM, requires clearer reporting mechanisms, adds human review in some cases, and creates public audit and enforcement provisions to improve compliance with the existing framework enacted last year. Supporters, including survivors and advocacy organizations, said the bill would reduce the burden on victims and help remove abusive images more effectively. TechNet, CalChamber, and CCIA opposed unless amended, saying the human-review, audit, and public-reporting requirements could be costly, burdensome, and potentially harmful to safety and security. Members generally supported the goal but raised concerns about the frequency and public release of audits and the role of human review; the bill was left open for further action after discussion.

Transcript Highlights:

• So the Common Cloud Data Platform... We have the disparate systems.
• So the Common Cloud Data Platform, thank you so much for funding it last year, $12 million one-time.
• …” “…within the Google certificate, let’s say data analytics, onto courses in a computer studies or computer
• . ...approach on those three that K-12 education has within average daily attendance computations.
• The next proposal I'll discuss is the Common Cloud Data Platform.

Transcript Highlights:

• compute system that would be available for people to use.
• Is all the data and the compute power for this LLM inside state government directly, or is it through
• To answer your question, the compute is in the state-built cloud environment.
• So if demand goes up, the compute power goes up instantly. So it covers that.
• We don't, I think we heard earlier, we're not moving very fast on Cal Compute.

Transcript Highlights:

• computing and artificial intelligence.
• computing and artificial intelligence.
• That support our modern economy, including cloud computing and artificial intelligence.
• Because data centers are largely cloud providers, or among the uses are cloud providers, and because
• Because data centers are largely cloud providers, or among the uses are cloud providers, and because

Committee: Senate Energy, Utilities, Environment, and Climate

Transcript Highlights:

• Azure Commercial Cloud or Azure Government Cloud.
• Well, if you can't put it on paper, you can't have a computer do it, right?
• Well, if you can't put it on paper, you can't have a computer do it, right?
• You know, we cannot compute. We can't. We cannot compute. We cannot. We can't.
• Long mentioned, the ability for AI to actually compute? Sure.

Summary: The subcommittee met to hear a panel discussion on artificial intelligence and automation in Florida government. Panelists from Worldwide Technology, OpenAI, the James Madison Institute, and the Florida Digital Service described AI as a tool to improve efficiency, constituent services, fraud detection, translation, HR workflows, public safety, and regulatory review, while emphasizing that AI should supplement rather than replace workers. They also stressed the importance of data readiness, workforce training, governance, and having existing technology systems and policies in place before broader deployment. Members asked about public records concerns, vendor vetting, model integrity, and how to balance innovation with privacy and security. Chief Schoonover said agencies are already using or exploring AI in areas such as Medicaid analysis, environmental data, emergency management, tax forms, and child support, and noted that the Digital Service publishes prohibited vendor and application lists. OpenAI discussed its red teaming, safety evaluations, privacy controls, and government products such as ChatGPT Gov, and said it does not train on personal data or target users with ads. The committee also discussed concrete examples of efficiency gains, including reduced call times, faster translation turnaround, and streamlined HR classification work, as well as concerns about job disruption and constituent access. In closing, members raised data center infrastructure and energy needs, with panelists noting that AI depends on substantial compute, power, cooling, and utility capacity. The chair concluded by encouraging continued dialogue and noting that future AI legislation should be targeted to specific problems rather than overly broad.

Transcript Highlights:

• We think doing so The three-year average when computing apportionments for districts.
• The first investment is for a system-wide common cloud data platform.
• Sure, I'll start with the Common Cloud and then shift to collaborative ERP.
• that we use today, showing all the data together within the cloud-based approach.
• That's a concern of mine on the Common Cloud Data Platform.

Summary: The Assembly Budget Subcommittee on Education Finance held a hearing focused on California Community College budget proposals. Chair Alvarez opened by emphasizing the system’s role in access, transfer, workforce training, and serving more than 2 million students, while also noting persistent challenges in enrollment, persistence, transfer, and graduation. Public commenters and system representatives broadly supported COLA, enrollment growth funding, deferred maintenance, student support block grants, and additional flexibility for districts facing uncertainty. The first major panel covered the student-centered funding formula, COLA, and enrollment growth. The Department of Finance said the Governor proposes a 2.43% COLA ($230.4 million) and 0.5% enrollment growth funding ($30.4 million). The LAO said the COLA was reasonable and recommended funding at least the proposed growth amount, citing uneven enrollment recovery and regional differences. The Chancellor’s Office supported both proposals and asked for additional changes, including using the greater of current-year or three-year average for apportionments and lifting the 10% local enrollment cap, arguing these would better fund growing districts. Members questioned how the formula works, whether SCFF is improving outcomes, and how much additional funding would be needed under different growth scenarios. The committee then reviewed categorical program COLAs, Rising Scholars, career education proposals, IT proposals, and student housing. The Governor proposed a 2.43% COLA for selected categorical programs ($31.9 million). For Rising Scholars, the Governor proposed $30 million ongoing and removal of the cap on participating colleges; the LAO urged waiting for outcome data before doubling funding, while the Chancellor’s Office said the program is serving more students and supports equity for justice-impacted students. On career education, the Governor proposed $50 million for credit for prior learning and $50 million for a career passport; the LAO supported more reporting on credit for prior learning but recommended rejecting the career passport as too undefined, while the Chancellor’s Office supported both. On technology, the Governor proposed $162.5 million for a common cloud data platform and $168 million for a common ERP system; the LAO said both were premature or lacked sufficient planning and recommended rejection, while the Chancellor’s Office argued they would improve real-time data, security, and systemwide efficiency. The committee also heard an update on student housing: the administration said the 2024 shift to a lease-revenue bond model remains in progress for 13 approved projects, with 11 still active, and members asked about withdrawn projects and possible use of any returned funds. No votes were taken, and several items were held open for further discussion and May Revision updates.