Transcript Highlights:

• We have another bill, 414, the Senate bill that deals with bond proposition language and it's really
• And a third instance involves Frisco ISD who after voters rejected three bond propositions and a Ver
• When a voter enters the voting booth to say yay or nay to a bond proposition, they are only provided
• Gardner's comment suggests is that the propositions put before at least some voters are not entirely
• In May 2025, Salina ISD also sought voter approval for a $2.3 billion proposition.

Transcript Highlights:

• And this program received an initial allocation of $8.25 million under Proposition 68 as well.
• Overall, we find that the spending plan is reasonable for this chapter of Proposition 4.
• Overall, we find that the spending plan is reasonable for this chapter of Proposition 4.
• We recommend that the Legislature reject this portion of the funding.
• 4 from the APA. ...bill to exempt the funding programs under Proposition 4 from the APA process.

Summary: The Assembly Budget Subcommittee heard the administration’s spending plan for Proposition 4’s climate smart agriculture and biodiversity chapters, along with related trailer bill language. CDFA outlined proposed funding for existing programs such as SWEEP, Healthy Soils, Urban Agriculture, and invasive species work, plus new or phased-in programs including year-round and mobile farmers’ markets, tribal food sovereignty, and regional farm equipment sharing. The Department of Conservation described funding for the California Farmland Conservancy Program and Working Lands and Riparian Corridors Program, while the Department of Finance and LAO discussed pending allocations and generally found the overall approach reasonable, though LAO suggested the Legislature may want more statutory guidance and reporting, especially for new programs. Members focused on implementation details, equity, and accountability. Questions covered how programs would serve vulnerable and disadvantaged communities, whether new solicitations would be reopened for previously oversubscribed grants, how outcomes are tracked, and how to structure guidance for new programs such as farm equipment sharing. The chair emphasized that the Legislature wants clearer direction on program design and noted that AB 2313 should guide implementation of the regional farm equipment sharing allocation. The committee also discussed the administration’s request to directly appropriate bond funds to departments and to exempt bond program guidelines from the Administrative Procedures Act; LAO supported the APA exemption with possible legislative guardrails for public notice and comment. The committee then heard on the farm-to-school proposal, with CDFA requesting $24.9 million General Fund for incubator grants, technical assistance, and network support. CDFA said the program has reached nearly half of California schoolchildren and has shown strong demand and positive evaluation results. LAO supported the core program but recommended rejecting the $3 million technical assistance component as too broad and suggested the Legislature consider using Proposition 98 for some of the funding. Members debated that point, with some expressing concern about using General Fund dollars for a new discretionary request during a tight budget year. The biodiversity and nature-based solutions chapter included funding for the Wildlife Conservation Board, state conservancies, and tribal nature-based solutions. WCB described major recent investments and proposed projects tied to 30 by 30, habitat restoration, tribal partnerships, and public access. Members raised concerns about long-term stewardship, the size of the WCB allocation, and whether the Legislature should receive more detail on how funds will be distributed. The committee also heard requests for Bolsa Chica wetlands maintenance and Rincon Island decommissioning funding from the State Lands Commission, with members questioning long-term liability, remediation costs, and the role of private oil operators. No votes were taken, and the hearing ended with public comment from stakeholders largely supporting the APA exemption, farm-to-school funding, biodiversity investments, and related conservation programs.

Transcript Highlights:

• We're here to discuss the Water Chapter and the Proposition 4 bond.
• We, too, have a pretty significant piece of the Proposition 4 funding.
• So the Proposition 4 Water Chapter, The Proposition 4 Water Chapter includes two buckets of funding for
• You spent a lot of time last year producing Proposition 4.
• The only reason that we wanted to bring this up is that you crafted Proposition 4, and in Proposition

Summary: The Assembly Budget Subcommittee on water and coastal resilience heard an overview of the governor’s Proposition 4 spending plan, with presentations from the Department of Finance, the State Water Resources Control Board, the Department of Water Resources, the Legislative Analyst’s Office, and later coastal agencies. Members discussed the water chapter’s major allocations for drinking water and wastewater, recycled water, tribal water infrastructure, groundwater recharge and SGMA implementation, dam safety, flood protection, integrated regional water management, Salton Sea projects, and water data/stream gauges. The LAO noted that many programs are established and have clear funding processes, but some newer or less-defined programs may warrant more detailed future budget requests and reporting. No votes were taken on the agenda items. Members raised concerns about groundwater subsidence, water deliveries from the Delta, the pace of water storage investments, instream flows, and whether bond dollars were being used to backfill General Fund reductions. Administration witnesses said groundwater recharge spending is being paced because prior years already funded substantial SGMA work, that Delta operations are governed by water quality, salinity, and species requirements, and that Proposition 1 storage projects have moved slowly because they are locally led and require permitting and financing. The Water Board and DWR said they use public needs assessments, annual plans, and existing grant processes to prioritize projects, and Finance said some General Fund programs were shifted to Proposition 4 to help balance the budget. Members also asked for clearer public tracking of bond spending and more concise future reporting. In the coastal resilience portion, the Ocean Protection Council and Coastal Conservancy described Proposition 4 funding for sea level rise adaptation, coastal flood management, habitat restoration, public access, and San Francisco Bay projects, with a multi-year rollout based on project readiness and recent large state investments. The Conservancy said it would use its existing rolling grant process, while OPC said its sea level rise grants would build on existing programs and new technical assistance. The Department of Fish and Wildlife explained its proposed use of bond funds for climate-ready fisheries, hatchery modernization, salmon monitoring, whale- and turtle-safe fishing gear, and a specific hatchery operations request tied to the Friant settlement. The LAO said the coastal chapter’s proposed first-year spending is relatively modest but generally reasonable given staffing and project readiness, while members emphasized oversight, transparency, and coordination across agencies and jurisdictions.

Bills: HB6, HB27, HB123, HB210, HB213, HB222

Keywords: hemp, consumable hemp products, hemp-derived cannabinoids, CBD, cannabidiol, CBG, cannabigerol, Texas hemp law, hemp regulation, cannabinoid products, delta-9 THC, intoxicating hemp, hemp gummies, hemp vape, retail registration, product registration, QR code labeling, child-resistant packaging, youth access, minor sales

Bills: HB195, HB247, HB255, HJR2, HJR4, HJR6, HJR31, HJR34, HB195, HB247, HB255, HJR6, HJR31, HJR34

Keywords: school district, ad valorem tax, local revenue, tax collection, education funding, border security, tax exemption, ad valorem, real property, infrastructure, Texas-Mexico border, ad valorem taxation, farm products, livestock, timber, death tax, inheritance tax, estate tax, property transfer, constitutional amendment

Transcript Highlights:

• . $757.3 million one-time Proposition 98 General Fund to support the Learning Recovery Emergency Block
• It also includes $3 billion in Proposition 2 funding for the CalPERS Supplemental Pension Payment in
• As for Proposition 36, we appreciate the Legislature for the implementation funding.
• We also are very appreciative of the rejection of the IHSS and APS cuts.
• We are so appreciative of the rejection of the cut to adult protective services and CalPACE.

Keywords: 988, house, all

Transcript Highlights:

• 12 due to challenges with collecting fees from various covered entities under Proposition 12.
• So as you recall, we recommended rejecting new discretionary... ...revision proposals.
• Because the LAO doesn't very often actually recommend that we reject a proposal.
• So rejecting this proposal doesn't mean that you're rejecting this program. Thank you. Thank you.
• I think we should reject those and keep those positions.

Keywords: 988, house, all

Summary: The Assembly Budget Subcommittee heard the Department of Finance’s May Revision overview and the LAO’s budget assessment, then questioned administration officials on several natural resources and transportation proposals. Finance described the state’s improved near-term fiscal picture, but also highlighted continued budget balancing measures, including use of the temporary surplus holding account, climate bond spending, transportation and DMV/CHP augmentations, and changes affecting CEQA filing systems, water programs, CalRecycle, and food and agriculture. The LAO argued the budget still relies heavily on reserves and borrowing, recommended rejecting or delaying many new discretionary proposals, and urged caution about ongoing costs and future-year impacts, especially for the General Fund, Motor Vehicle Account, and Greenhouse Gas Reduction Fund. A major portion of the hearing focused on the Healthy Rivers and Landscapes proposal for Bay-Delta water quality implementation. Secretary Wade Crowfoot and Finance officials said the $25 million request would support early implementation of an enforceable program combining environmental flows, habitat restoration, and scientific monitoring, with the State Water Board retaining regulatory authority. The LAO said the proposal was premature because the updated Bay-Delta plan had not yet been adopted and asked for more clarity on the state’s existing commitments and future funding expectations. Several members expressed support for the program as a way to reduce long-running conflict over water policy, while others echoed concerns about timing and fiscal exposure. The committee also examined the proposed $125 million Proposition 4 contribution toward acquisition of the Golden Gate Fields property for a shoreline park and habitat restoration. State agencies said the project had a completed appraisal, was moving through a rolling grant process, and would leverage philanthropic and local funding, while members questioned why it was being elevated ahead of other park and conservation requests and whether it was the best use of limited bond dollars. The hearing then turned to transportation items, including $40 million for Clean California litter abatement, $6.2 million for Caltrans homeless coordinators, $73.4 million in DMV/Motor Vehicle Account requests, and funding for the 2028 Games route network. The LAO generally recommended rejecting or delaying the Clean California and homeless coordinator proposals pending more information, while members debated the need to preserve essential CHP and DMV operations despite the Motor Vehicle Account’s structural imbalance.

Transcript Highlights:

• In the May revision specifically, we had some updates to the climate bond proposition proposals.
• Because the LAO doesn't very often actually recommend that we reject a proposal.
• So rejecting this proposal doesn’t mean that you’re rejecting this program. Thank you.
• I think we should reject those and keep those positions.
• I think we should reject those and keep those positions.

Summary: The hearing focused on the governor’s May Revision proposals for transportation, natural resources, climate, and related programs, with the Department of Finance and the LAO presenting competing views on the state’s fiscal condition. Finance said the budget remains balanced over two years, with major climate-bond, water, parks, transportation, DMV, and agriculture proposals, while the LAO argued the state still has a structural deficit and should reject or defer many new discretionary spending items, preserve reserves, and be cautious about ongoing commitments. The LAO specifically questioned the timing and scale of new spending for programs such as Clean California, Healthy Rivers and Landscapes, and the Golden Gate Fields acquisition, and urged more clarity on future obligations and revenue scenarios, including for the Greenhouse Gas Reduction Fund. A major portion of the hearing was devoted to the Healthy Rivers and Landscapes proposal for Bay-Delta water quality implementation. Secretary Wade Crowfoot and Finance described it as an enforceable, science-based alternative to a more traditional regulatory approach, with the state’s $25 million request intended to support early implementation, monitoring, habitat restoration, and environmental flows. The LAO countered that the Water Board has not yet adopted the updated Bay-Delta plan, that the proposal may be premature, and that the Legislature should wait for more information on the state’s total funding commitment and the program’s long-term costs. Several members expressed support for the program as a way to reduce conflict and protect water reliability, while others echoed concerns about timing and fiscal exposure. The committee also examined the proposed $125 million Proposition 4 contribution toward acquiring the Golden Gate Fields property for a shoreline park and habitat project. State officials said the acquisition is a time-sensitive, once-in-a-generation opportunity, with an appraised value of $175 million and additional philanthropic and local funding expected to close the gap. Members questioned whether the project had gone through the usual competitive process, whether the site is the best use of scarce park bond dollars, and how public access, habitat, and disadvantaged-community priorities would be protected. The discussion ended without a vote, and the committee moved on to transportation items including Clean California litter abatement, the Games Route Network, homeless encampment coordinators, and DMV modernization and field office proposals, with LAO recommending rejection or delay on several of those requests as well.

Transcript Highlights:

• So this is our annual hearing on the Proposition 98 guarantee.
• You know, we can probably only reference recent history since Proposition 98.
• Under this, under the most recent estimates of Proposition 98...
• We need Proposition 98 to help us continue these efforts.
• Once again, Proposition 98 is not optional.

Summary: The Assembly Budget Subcommittee on Education Finance held its first hearing of the year on Proposition 98, focusing on the Governor’s budget estimates for the three-year budget window, the Public School System Stabilization Account (PSSA), and repayment of education deferrals. The Department of Finance said the minimum guarantee would rise by about $21.7 billion over the 2025 Budget Act, with increases in each year, full repayment of the existing settle-up obligation in 2024-25, a new $5.6 billion settle-up obligation proposed for 2025-26, and a higher guarantee in 2026-27. Finance also noted revised downward estimates for transitional kindergarten attendance and Los Angeles County property tax reimbursements, and said community colleges would be funded above the split because of enrollment growth. The Legislative Analyst’s Office emphasized fiscal risk and volatility, warning that recent revenue gains are tied heavily to the stock market and tech sector and could reverse quickly. The LAO argued the Governor’s proposed $5.6 billion delay shifts risk into future years and recommended instead fully funding the current estimate, making a larger reserve deposit, considering advance payments or pension-related uses, and finding additional non-Prop 98 solutions to reduce the state’s structural deficit. On the reserve and deferral items, Finance described revised PSSA deposits and withdrawals that would leave about $4.1 billion in the reserve by 2026-27, and both Finance and the LAO supported paying off the remaining LCFF and SCFF deferrals as good fiscal practice. Committee members questioned the size of the settle-up amount, the degree of revenue volatility, the use of the reserve, and the ongoing K-12/community college split. Finance said the proposal is meant to avoid overappropriation if revenues fall, while the LAO said a buffer of roughly $3.5 billion would address typical forecasting risk. Public commenters, including school boards, county offices of education, teachers, and advocacy groups, largely opposed the $5.6 billion withholding or settle-up delay, calling it a manipulation of Prop. 98 and urging full funding and more stable revenue solutions. Several speakers also urged dedicated funding for students experiencing homelessness. The hearing ended with no vote, and the chair announced that broader program discussions would occur in later hearings.

Transcript Highlights:

• The good news is that Proposition 98, which funds our community colleges, is in a much healthier position
• Fund enrollment growth at a level of 0.5% and a corresponding amount of $30.4 million in Proposition
• Given these concerns, we recommend rejection.” “Low or no cost as envisioned.
• These two Proposition 98-funded investments are as follows.
• For all these reasons, we recommend rejecting the proposed funding for the Common ERP project.

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.

Transcript Highlights:

• Projects will then continue to be rejected at the ballot box, I would presume.
• Board and State and Community Corrections, Proposition 47 grant administration.
• In 2024, the voters approved Proposition 36, which modified Proposition 47...
• In 2024, the voters approved Proposition 36, which modified Proposition 47 by allowing for felony convictions
• 47 or Proposition 36.

Keywords: 987, senate, all

Summary: The Joint Legislative Audit Committee met to consider new audit requests and received a status update from the State Auditor, who reported 10 JALAC audits in progress, several statutory audits underway, and that all audits approved in 2025 are moving forward. The committee first approved a consent calendar covering audits on University of California library resources, law enforcement information sharing, EDD unemployment insurance claims, and Housing and Community Development housing development monitoring. One requested audit on local law enforcement and human trafficking had been withdrawn before the hearing. The committee then debated and approved an audit request from Assembly Member DeMaio on the San Diego Association of Governments (SANDAG) and its road project management and use of transportation funds. DeMaio argued the audit was needed to examine whether restricted funds, voter-approved revenues, and project commitments were properly used, while SANDAG officials said the agency already undergoes extensive oversight and that its funding sources and project uses are governed by multiple existing audits and reporting requirements. Several members questioned whether the audit would duplicate existing reviews, but the motion passed after roll call. Next, the committee approved Senator Valadares’s audit request on Board of State and Community Corrections Proposition 47 grant administration. Supporters said the audit would assess whether grant recipients and BSCC oversight are producing reliable outcome and recidivism data and whether the funds are achieving public safety goals; BSCC responded that it already has internal controls, that the State Controller conducts biennial audits, and that its reported outcomes show reductions in homelessness, unemployment, and recidivism among participants. The committee also approved Senator Cortese’s audit of CalHR’s dental benefits procurement and contract oversight, prompted by concerns about stagnant annual maximums, provider network losses, and out-of-pocket costs for employees and retirees. CalHR said its current dental network remains strong, that it recently completed an RFP adding MetLife as a second carrier beginning in 2027, and that it maintains performance guarantees in its contracts. All three regular-calendar audit requests were approved, and the committee then completed add-on votes approving the earlier consent calendar items before adjournment.

Transcript Highlights:

• Patel, staff was recommending that this is rejected and referred to your policy committee.
• We have a motion to reject. Let's call the roll. Algris. Aye. Fong. Padwick. Patel. Hi. Wals.
• Fong moved on issue number three to reject and refer to the Policy Committee.
• Just to clarify, the motion was to reject the proposal and direct it to the policy committee.
• We've rejected that proposal. Okay, then we're adjourned. Thank you. Thank you. Thank you.

Keywords: 988, house, all

Summary: The committee began with public comment and then heard an informational update on the administration’s Career Education Master Plan and the California Education Interagency Council. State agencies described efforts to better align workforce, higher education, and TK-12 systems through data sharing, dual enrollment, e-transcripts, career passports, and regional partnerships. Members asked about the council’s timeline, strategic plan, reporting requirements, and whether it would have authority to act; administration staff said the council is being stood up, its first meeting is due by the end of June, and a strategic plan is due by the end of November. Members also raised broader questions about the relationship of this work to the Master Plan for Higher Education and common course numbering. The committee then took up the Governor’s proposed $100 million one-time expansion of dual enrollment grants. Finance said the proposal would extend grants for middle college, early college, and CCAP programs, add eligibility for regional occupational centers, provide extra support for justice-involved youth, prioritize high-need LEAs, and allow funds for teacher professional development. The proposal would also reduce the minimum instructional day for certain dual enrollment students from 240 to 180 minutes to better align schedules and remove barriers. The LAO recommended rejecting the funding, arguing that dual enrollment is already growing and that the proposal does not address major fiscal barriers. The Chancellor’s Office and CDE supported the investment, emphasizing access, equity, and technical assistance, especially for rural and small districts. Members questioned instructional-minute changes, reporting on outcomes, adult learner access, and whether the funds would support ongoing or one-time costs. Next, the committee considered trailer bill language to align the definition of long-term English learners across data systems. Finance and CDE said the change would simplify identification by using a seven-year definition for LTELs and a six-year definition for students at risk of becoming LTELs, matching the dashboard and research on the typical time needed to reach English proficiency. Some members expressed concern that the proposal could delay intervention for students who have been English learners for four or five years and questioned why the issue was being handled through budget trailer bill language rather than policy legislation. After discussion, the committee voted on a motion to reject the proposal and refer it to the policy committee; the motion received two aye votes and the item was held open. Finally, the committee heard a proposal to extend the Supporting Inclusive Practices Project by one year, from June 30, 2026 to June 30, 2027. Finance said the extension would continue the existing project, while CDE raised concerns about the project’s contract structure, fiscal management, and scalability. A Marysville Joint Unified School District representative testified that SIP had helped the district bring preschool services back into district schools, expand inclusive practices, and reduce reliance on more restrictive placements. Members questioned why funds had not been fully encumbered and whether the project was best positioned to support statewide preschool inclusion goals, with CDE suggesting that existing infrastructure may already be better suited for that work.

Transcript Highlights:

• Proposition 4 also...
• They intend to spend the Proposition 4 funding.
• We received over $75 million from Proposition 4.
• You spent a lot of time last year producing Proposition 4.
• But when we surveyed across Proposition 4...

Keywords: 988, house, all

Transcript Highlights:

• Uh, current law requires a simple majority of the governing body of a taxing unit to approve a proposition
• the originally proposed items rejection by voters.
• There are currently no limitations on the number of times a taxing unit may repropose a previously rejected
• unit's governing body to propose a GEO bond election or M&O tax reelection for a purpose that was rejected
• Uh, you will see first in Fort Bend dynasty in 2022, they came with a Vder for 7.5 cents and were rejected

Transcript Highlights:

• law requires a A simple majority of the governing body of a taxing unit is required to approve a proposition
• Taxpayers have raised concerns that taxing units re-propose bond propositions and tax rate increases
• following the original rejection of these items by voters.
• There are currently no limitations on the number of times a taxing unit may re-propose a previously rejected
• , in Fort Bend ISD in 2022, they proposed a tax rate increase of seven and a half cents that was rejected

Bills: SB1277, SB1531, SB2452, SB2520, SB2521, SB2529, SB2538, SB2539, SB2541, SB2873

Keywords: municipal sales tax, street maintenance, local option tax, Tax Code Chapter 327, sales and use tax, street repair, sidewalk maintenance, water infrastructure, wastewater system, stormwater system, local election, ballot language, reauthorization, municipal finance, infrastructure funding, Texas municipalities, street and sidewalk tax, special district tax, public works, property tax

Transcript Highlights:

• Projects will then continue to be rejected at the ballot box, I would presume.
• Audit 2026-120, Board of State and Community Corrections, Proposition 47 grant administration.
• In 2014, California voters approved Proposition 47, In 2014, California voters approved Proposition 47
• In 2024, the voters approved Proposition 36, which modified Proposition 47.
• In 2024, the voters approved Proposition 36, which modified Proposition 47 by allowing for felony convictions

Keywords: 988, house, all

Summary: The Joint Legislative Audit Committee met to hear status updates from the state auditor and consider several new audit requests. The auditor reported 10 JALAC audits in progress, including a new 2026 audit on DMV license revocation, and noted other statutory audits on the State Bar exam rollout, CSU/UC Title IX implementation, tobacco tax, state financial statements, federal compliance, and high-risk issues such as late financial reporting, Medi-Cal eligibility, and water infrastructure safety. The committee approved a consent calendar covering audits on UC library resources, law enforcement information sharing, EDD unemployment insurance claims, and Housing and Community Development housing development monitoring. The committee then considered Assembly Member DeMaio’s request to audit SANDAG’s road project management and use of transportation funds. DeMaio argued the audit was needed to examine whether restricted funds, voter-approved revenues, and project commitments were properly used and documented, citing prior problems with tolling and financial oversight. SANDAG’s CEO and CFO said the agency already undergoes extensive oversight and audits, has improved internal controls, and believed its funding uses were appropriate. Several members questioned whether the audit duplicated existing reviews and whether the issues were already public, and the request ultimately failed on a roll call vote. Next, Senator Valadares presented an audit of the Board of State and Community Corrections’ administration of Proposition 47 grants. Supporters said the audit would assess whether grant recipients comply with requirements and whether outcome and recidivism data are reliable, while BSCC said the program already has oversight, including biennial State Controller audits, and pointed to reported reductions in homelessness, unemployment, and recidivism. The committee approved the audit. Senator Cortese’s request to audit CalHR’s dental benefits procurement and Delta Dental contract also passed, with supporters citing rising out-of-pocket costs, provider network problems, and the long-running contract’s lack of competition; CalHR responded that most members have nearby access, it recently ran an RFP, and it will add MetLife as a second carrier in 2027. The committee then approved the remaining consent items and adjourned.

Transcript Highlights:

• Projects will then continue to be rejected at the ballot box, I would presume.
• Proposition 47 grant administration. You can start whenever you're ready, Senator.
• In 2024, the voters approved Proposition 36, which modified Proposition 47 by allowing for felony convictions
• 47 or Proposition 36.
• Board of State and Community Corrections, Proposition 47 grant administration.

Summary: The Joint Legislative Audit Committee met to hear new audit requests and receive a status update from the State Auditor. The auditor reported 10 JALAC audits in progress, noted that all 2025-approved audits are underway, said the first 2026 audit is focused on DMV license revocations, and described several statutory and high-risk audits already in progress. The committee also approved a consent calendar of four audit requests: UC library resources, law enforcement information sharing, EDD unemployment insurance claims, and Housing and Community Development housing development monitoring. The committee then considered Assembly Member DeMaio’s audit request on SANDAG road project management. DeMaio argued the audit was needed to examine whether transportation funds, including voter-approved and restricted revenues, were used for allowable purposes and whether past management failures warranted outside review. SANDAG’s CEO and CFO said the agency already undergoes extensive oversight and audits, that funds are tracked by multiple “colors of money,” and that internal controls have improved. Several members questioned whether the issues were already addressed in public records or existing audits, and the request failed on a roll call vote. Next, Senator Valadares presented an audit of the Board of State and Community Corrections’ Proposition 47 grant administration, arguing that more transparency is needed on outcomes, recidivism data, and oversight of grantees. The BSCC said it already has oversight mechanisms, that the State Controller conducts biennial audits, and that program data shows positive outcomes. The committee approved the audit unanimously. Senator Cortese then presented an audit of CalHR’s dental benefits procurement and Delta Dental contract, citing long-standing benefit caps, provider network concerns, and retiree out-of-pocket costs. CalHR said its network remains strong, that it recently completed an RFP adding MetLife as a second carrier starting in 2027, and that contracts include performance guarantees. Members from both parties expressed concern about access and competition, and the audit was approved unanimously. The committee then completed add-on votes on the consent calendar and adjourned.

Transcript Highlights:

• And third, we want to provide support for the redistribution of the Proposition 1 funding, as you stated
• And third, we want to provide support for the redistribution of the Proposition 1 funding.
• We ask that there be reconsideration of the rejection of the light-duty incentives.
• , echoing many of the comments of the previous speaker and appreciating staff's recommendation to reject
• Conservation Program, yes, on issue 82, I just wanted to appreciate the staff recommendation and reject

Keywords: 987, senate, all

Summary: The Senate Budget Subcommittee No. 2 on Resources, Environmental Protection, and Energy met for a vote-only hearing on budget items that had been discussed in prior hearings. Public comment focused on support for funding the Healthy Rivers and Landscapes Program, rejecting special fund position cuts at CDFW and the State Water Board, preserving Proposition 1 and Prop. 68 funding for conservation and local corps, supporting offshore wind and the Safer Consumer Products Program, and rejecting the Governor’s proposed Sustainable Aviation Fuel tax credit and light-duty incentive changes. Several speakers argued the SAF credit would be costly, unnecessary, and could raise fuel prices or divert funds from transportation and environmental programs. The chair also addressed concerns about the California Air Resources Board’s cap-and-invest amendments and said the Senate budget plan would withhold Greenhouse Gas Reduction Fund appropriations, including continuous appropriations, until specified conditions are met. She said the Legislature should preserve prior agreements and protect transit, affordable housing, air quality, and safe drinking water programs from being reduced or zeroed out. The committee then took a series of roll-call votes on grouped budget items. Most staff recommendations were approved, with some items passing unanimously and others on 3-1 votes, with Senator Choi occasionally not voting or voting no. The hearing concluded after the committee approved the remaining vote-only items and adjourned.

Transcript Highlights:

• as Proposition 1.
• Under Proposition 63, there were 16 voting members.
• That said, the Commission both prior to Proposition 1 and after Proposition 1 had a role in providing
• The second is the bond portion of the proposition.
• The second is the bond portion of the proposition.

Summary: The hearing opened with remarks from the chair and members about recent federal cuts to public health, mental health, family planning, and Title X funding, with strong concern about the impact on California programs and providers. The committee then turned to the Department of State Hospitals, which presented its 2025-26 budget proposal of $3.4 billion, including new positions, capital improvements, and funding tied to increased patient costs and incompetent-to-stand-trial services. DSH reported major progress in reducing the IST waitlist and wait times, said it had met the court’s 28-day treatment benchmark for those without extenuating circumstances, and described workforce recruitment and retention efforts such as residency programs, fellowships, outreach, and hiring streamlining. Members asked about future IST referral trends, SB 1323’s effect on diversion and community treatment, and workforce lessons in high-cost regions; public comment urged reconsideration of county IST growth cap methodology in light of new criminal justice initiatives. The committee next received an informational overview of Proposition 1 and its changes to behavioral health funding and governance. The Legislative Analyst’s Office explained that Prop. 1 restructured county MHSA funding buckets, expanded the Commission for Behavioral Health, shifted prevention and early intervention responsibilities, and authorized a $6.4 billion bond, including $4.4 billion for behavioral health facilities through BHCIP. DHCS said it had released guidance for county integrated plans and was receiving extensive public comment. Members focused on BHCIP application requirements, especially letters of support and tribal projects, and raised concerns about whether DHCS’s implementation matched statutory intent. DHCS said it had authority to set application requirements and that tribal entities were treated differently because of sovereignty and funding structure. DHCS then updated the committee on BHCIP, the Behavioral Health Bridge Housing Program, and related bond implementation. The department said BHCIP had awarded about $1.7 billion across five rounds, with more than 130 projects and 223 distinct facilities funded, and that it was preparing to award the new bond funds after receiving nearly $8 billion in applications. The LAO’s assessment found that more than half of awards served at least 80% Medi-Cal enrollees, but also raised concerns that the regional allocation model could reinforce inequities, that the program had not sufficiently addressed the highest-need regions such as the southern San Joaquin Valley, and that smaller counties and less launch-ready applicants faced barriers. For bridge housing, DHCS said more than $1.1 billion had been awarded, serving over 5,000 people and supporting more than 2,000 operational beds, but the Governor’s budget proposes to eliminate Round 4 funding as the administration weighs other statewide investments and Proposition 1 implementation workload. Public commenters and members urged more accountability, better regional equity, stronger labor and community involvement, and caution about funding for for-profit psychiatric facilities. Finally, the committee heard on the Children and Youth Behavioral Health Initiative. CalHHS and DHCS described CYBHI as a broad prevention- and equity-focused effort with more than 1,300 organizations funded, over $2.1 billion awarded, and multiple work streams spanning schools, community programs, workforce, and digital supports. DHCS highlighted school-based services, the fee schedule rollout, and digital platforms BrightLife Kids and Soluna, which it said are reaching users statewide and providing low-barrier access to coaching and support. Members and public commenters raised concerns about delays in school fee schedule implementation, the large share of funding going to digital tools, the need for more in-person services, and whether the initiative is sufficiently tracking outcomes and equity impacts. No formal votes were taken during the hearing.

Transcript Highlights:

• We will be recommending rejecting the three proposals we're hearing today.
• We recommend rejecting the Golden State Teacher Grant Program proposal.
• Financial aid for students has not been funded with Proposition 98.
• We recommend rejecting the loan repayment program proposal.
• Because the funds are Proposition 98, we wouldn't be able to have.

Keywords: 988, house, all