Transcript Highlights:

• Those emissions reductions primarily come from zero-emission cars, trucks, and clean fuels.
• Tanker emission reduction requirements will extend statewide January 1, 2027.
• So that is the demand reduction that basically is reflected...
• So I guess that's... skepticism about the projections on the reduction on demand.
• from tankers at berth to assess the timelines for deployment of those emissions reductions.

Summary: The joint informational hearing of the Assembly Committees on Utilities and Energy, Transportation, and Natural Resources focused on California’s transportation fuels sector, especially the state’s response to refinery closures and the broader transition away from fossil fuels. Opening remarks emphasized the tension between climate and air-quality goals, fuel affordability, refinery jobs and local tax bases, and the need to avoid crisis-driven responses as Phillips 66 and Valero consider shutting refineries in Wilmington and Benicia. Professor Emily Grubert framed the issue as a long-term managed transition in which the public already bears much of the risk and should also capture benefits from a well-planned shift. CARB Chair Leanne Randolph reviewed the state’s emissions and fuel policies, including AB 32, the low-carbon fuel standard, clean vehicle programs, and the at-berth regulation for ocean-going vessels. She said California’s transportation sector remains the largest source of greenhouse gases and a major source of smog-forming pollution, but that the state has made substantial progress and still needs to reduce demand for fossil fuels while maintaining compliance with federal air-quality standards. Randolph also said CARB’s recent LCFS amendments had not caused the predicted spike in gas prices and explained that compliance pathways for the at-berth rule include emissions-reduction technologies or payments into a remediation fund. CEC Vice Chair Gunda described declining gasoline demand, shrinking in-state refining capacity, and growing dependence on imports, arguing that the state is in a “mid-transition” period that requires both support for legacy infrastructure and continued investment in cleaner alternatives. He outlined the administration’s petroleum market stabilization proposal, which aims to return California crude production to 125 million barrels a year through four components: codifying the ban on fracking, validating the Kern County oil-and-gas permitting ordinance, creating a temporary CEQA exemption paired with a two-for-one plug-and-drill framework, and strengthening pipeline and spill-safety requirements. Department of Conservation Director Jennifer Lucasey said the proposal is intended to stabilize crude supply and pipeline throughput while preserving health and environmental protections, and noted that CalGEM would still review permits and enforce other requirements. Mayor Steve Young of Benicia testified that a Valero closure would significantly reduce city revenue and leave the community facing years of cleanup and redevelopment challenges. He said the city supports environmental protection but is worried about the economic hit, the possibility that Benicia becomes a fuel-import terminal, and the lack of local influence over refinery decisions. Members pressed the panel on the CEQA exemption, tribal and habitat review, disclosure of closure liabilities, fuel-demand projections, and whether the proposal should include more demand-side measures. No formal votes were taken; the hearing was informational, and officials said some proposals, including a margin-cap pause and further transition planning, would be taken up later in the process.

Transcript Highlights:

• So there's years where there's been reductions that are double-digit reductions, and years where there's
• If we just look at the average annual rate of increase, recognizing COVID, there was a reduction; other
• , and in some years that reduction has not occurred, and some years a reduction has been less.
• After three years of compact funding, last year we received this reduction to our ongoing base budget
• The campuses took a 1.8% reduction. The state loan we did take out, we're very thankful for that.

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

Transcript Highlights:

• That has to do with the school recalibration bill, the reduction in property taxes, the extension of
• A second area you will see reductions.
• reduction of the weight list. reduction of the weight list.
• And the footnote one specifies that any reductions to strategic partners shall be proportionate.
• <00:28:32.480> to specifies that any reductions to specifies that any reductions to strategic

Bills: SF0032, SF0010, SF0001, HB0001

Keywords: 911 services, emergency response, grant funding, next generation technology, government accountability, public safety, mental health, detention, competency evaluation, treatment, contractual agreements, Wyoming, budget, funding, education, wildfire prevention, healthcare, community colleges, grants, economic development

Transcript Highlights:

• It maintains funding for in-home support services, rejecting all of the Governor's proposed reductions
• And this budget does not include spending reductions to come... ...budget does not include spending reductions
• We need to support transit and not allow these reductions to go.
• I'm watching like a hawk on how our greenhouse gas reduction fund is being spent.
• I'll be very supportive today and just hope we can keep the integrity of our greenhouse gas reduction

Keywords: 987, senate, all

Summary: The Senate opened with roll call, prayer, and the Pledge of Allegiance, then approved the Senate journals and adopted floor amendments. Members voted on motions to advance Budget and Fiscal Review Committee measures and to suspend Joint Rule 62A so the budget committee could hear budget-related bills with shortened notice; both motions passed by roll call. The chamber then moved through the Daily File, including several second-reading bills and gubernatorial appointments. Three appointments were confirmed: Julie Lee and Ann Patterson to the Delta Stewardship Council, and Santa Cruz County Sheriff Christopher Clark to the Board of State and Community Corrections. Senators also took up Senate Joint Resolution 17, which urges Congress and the President to clarify that states may extend burial and memorial benefits in state veterans’ cemeteries to Republic of Korea veterans who served alongside U.S. troops in Vietnam; the resolution passed unanimously. The Senate then considered AB 109, the Budget Act of 2026, with extensive debate on the state’s fiscal condition and major budget priorities. Supporters said the budget is balanced, maintains reserves, reduces the structural deficit, and protects funding for child care, Medi-Cal, distressed hospitals, in-home supportive services, housing, higher education, and transit. Opponents argued it relies on future tax increases, leaves a structural deficit, and does not adequately address affordability, public safety, or repayment of unemployment insurance debt. After debate, AB 109 passed 28-9, and the chamber later approved the consent calendar items 81 through 86. The session ended with adjournments in memory of Honorable Hajan Lee, Doris Fisher, and James Leslie Barbie. The Senate announced its next floor session would be Thursday, June 18, 2026, at 9 a.m.

Transcript Highlights:

• The second component is the Industrial Carbon Reduction Act, and this provides incentives for producers
• It does give us an advantage in terms of exact carbon reductions.
• So that is an actual reduction. The jobs that would be created are 70 to 90.
• Those are the sorts of low carbon materials And those emission reductions can be done with energy efficiency
• the contractor side And then the supply side production incentive and grant is that 40 emissions reduction

Keywords: 996, all

Transcript Highlights:

• CARB's regulatory program is the foundation for long-term, sector-wide emission reductions.
• Much of the funding for these programs has historically come from the Greenhouse Gas Reduction Fund,
• One is with the Greenhouse Gas Reduction Fund.
• You know, we mentioned the weight reduction, too, because these trucks are very heavy.
• These... ...through the Greenhouse Gas Reduction Fund is essential.

Summary: The joint informational hearing of the Select Committee on Electric Vehicles and Charging Infrastructure focused on California’s EV market, charging infrastructure, and the effects of recent federal actions. The chair opened by emphasizing California’s progress on EV adoption and charging reliability, but also noted ongoing challenges with affordability, access, interoperability, heavy-duty electrification, and federal headwinds. She highlighted interest in technologies such as inductive charging and thanked host organizations and staff before moving to the first panel. State agency witnesses from Go-Biz, CARB, and the California Energy Commission described current programs and priorities. Go-Biz outlined its role in coordinating agencies, supporting permitting, and advancing the state’s ZEV market development strategy and equity action plan. CARB discussed federal attacks on its clean vehicle regulations, litigation to defend waiver authority, and the importance of incentives and regulatory programs such as Advanced Clean Trucks, Advanced Clean Fleets, Clean Truck Check, HVIP, and Clean Cars for All. The CEC detailed its funding and regulatory work on charging and fueling infrastructure, charger reliability, payment methods, roaming, and statewide planning, while stressing the need for more charging in multifamily housing and more public DC fast charging. All three agencies said federal rollbacks and permitting delays are major obstacles, but that California remains committed to expanding ZEV adoption. The second panel featured advocates, local government, utility, and research perspectives. CalETC urged continuous state funding through the Greenhouse Gas Reduction Fund and emphasized the low-carbon fuel standard, multifamily charging, and managed charging. An EV advocacy group proposed a conquest-style state incentive for new and used EV buyers and argued that multifamily housing is a major untapped market, while also favoring Level 2 charging over Level 1 for most home and apartment settings. Los Angeles County and LADWP described large-scale local deployment of chargers, fleet electrification, workforce training, and the need for sustained funding, agency coordination, and streamlined permitting and grid interconnection. UCS recommended prioritizing replacement of older high-emitting vehicles, using fuel policy revenues to support cleaner cars, and expanding bidirectional charging. The chair closed by asking for more discussion on Level 1 versus Level 2 charging and noted the importance of education, affordability, and practical deployment strategies.

Transcript Highlights:

• So we've had a reduction of 16 fire departments since we were here last year.
• of volunteers in the state reduction of volunteers in the state right<00:08:57.680> now.
• And so there is reduction in volunteers.
• > are closures or reductions are closures or reductions are they<00:13:59.199> contained<00
• You may not have a reduction based on alcohol taxes. You may not have a minimum or maximum.

Keywords: Meeting Start: 00:00:13 Roll Call 00:00:24 Approval of Minutes from September Meeting 00:02:10 Presentation of Special Purpose Governmental Entities Report 00:03:19 Presentation of Kentucky League of Cities Legislative Platform for the Upcoming 2026 Session of the General Assembly 00:15:37 Discussion of Centralized Collection of Net Profits and Occupational License Taxes 00:37:05 Adjournment 00:55:53, 958, all

Summary: The committee received reports on special purpose governmental entities from the Department for Local Government and the Fire Commission. DLG staff described SPGEs as limited-jurisdiction political subdivisions and reviewed the department’s registry, reporting portal, compliance monitoring, and planned system upgrades such as a two-way message center, automated noncompliance notices, and tracking for new entities and board expirations. They reported that, as of October 10, 2025, 69% of SPGEs were active and discussed compliance data by cycle, fiscal year, and district type. The Fire Commission reported that fire department mergers have reduced the number of departments by 16 since last year, largely because of volunteer staffing shortages, while financial disclosure compliance had risen to 94%. The commission also noted 509 compliance reviews, 19 in-house inquiries, seven referrals to outside agencies, and one recent federal prison sentence in a theft case. Members asked whether DLG advises SPGEs on tax rates; staff said it only performs calculations and the entities set their own rates. Questions to the Fire Commission focused on whether department reductions meant station closures; officials explained that most changes were mergers that keep physical buildings in place while combining personnel and finances to meet minimum staffing requirements. They said the trend is spread across the state but is especially pronounced in rural areas. The Kentucky League of Cities then presented its 2026 legislative agenda. Its priorities included modernizing city revenue options, increasing equity in road funding, fixing tax increment financing issues, addressing transient room tax collection from web-based platforms, strengthening emergency response coordination, clarifying massage parlor regulation preemption, correcting unintended consequences of House Bill 606, improving newspaper publication rules, and modernizing procurement statutes. KLC also said it supports allowing all cities to collect restaurant tax revenue, wants cities to receive a larger share of road funds and EV-related revenues, and seeks state collection and remittance of any future local sales tax to comply with the Streamlined Sales and Use Tax Agreement. Members asked about best-value bidding, road-fund equity, Airbnb tax litigation, EV prevalence, and disaster funding applications; KLC said cities currently must accept the lowest bid, the road split should better reflect city street costs, the Airbnb tax case remains pending, EV data by locality has not been studied, and allowing cities to apply directly for disaster funds would reduce reliance on county officials. No votes or formal actions were taken beyond approving the September meeting minutes.

Transcript Highlights:

• I mean, you keep talking about reductions in population, reductions of kids in placement, reduction of
• kids on probation, reductions of contact with system.
• I mean, are we talking about just the reductions for the sake of the reductions?
• I mean, what are we getting for those reductions? Mr. Wu: Why are we seeking those reductions? Mr.
• Bishop: We seek those reductions because that actually leads to long-term safety.

Transcript Highlights:

• The window that we've been in for the fund balance reduction has been that 1% reduction on employer tax
• We're not maximum 1.5% reduction.
• And do employers see a reduction in their fund balance reduction as a result?
• of that 1 point 1.0 reduction right now. of that 1 point 1.0 reduction right now.
• getting the benefit of a 1% reduction. getting the benefit of a 1% reduction.

Keywords: 1189, house, all

Transcript Highlights:

• Even with that 30% reduction, we still have more litigation and the property space taking place that
• So that portions or any reductions from down maybe 2% to up 12% rate.
• Why aren't Floridian seeing a reduction in premiums? You're recognized? >> Sure. Yeah.
• I would say, you know what, there will be reduction in there will be reduction in reinsurance rates in
• should see a reduction.

Transcript Highlights:

• <01:18:15.240> uh or other incentives or tax reductions uh or other incentives or tax reductions
• Of reduction in their aid award.
• The reductions do vary. The dollar reductions do vary by student.
• would<01:49:40.280> differ reductions would differ reductions would differ um<01:49:42.240
• <01:54:00.880> in on top of the significant reductions in on top of the significant reductions

Keywords: 1187, senate, all

Transcript Highlights:

• Committee, we're at that time in the session where we have to look at some reductions in our numbers
• Committee, we're at that time in the session where we have to look at some reductions in our numbers
• Section 1 is an income tax reduction.
• According to fiscal note, this would be a revenue reduction.
• It's not an appropriation; it's a revenue reduction of about $20 million.

Keywords: 908, all

Summary: The committee met to consider four policy bills and discussed a possible later return to handle DOCR amendments and budget work. They first took up HB 1327, funding for the Agricultural Diversification and Development Fund, and adopted an amendment striking language that would have capped up to $10 million for agricultural infrastructure grants to political subdivisions. The bill was then passed as amended on a 22-0 vote, with Rep. Belts assigned as carrier. Next, the committee considered SB 2256, the Research Technology Park grant. Rep. Stemen offered an amendment reducing the appropriation amounts from the original figures to $10 million and $5 million levels, citing available funding; the amendment passed 19-3. The bill then passed as amended 22-0, and Rep. Stemen agreed to carry it. The committee then debated SB 2093, which combined a retired peace officers/surviving spouses benefit with an added income tax reduction. Rep. Munson moved to remove the income tax portion, and the committee agreed 17-4. The remaining peace officer benefit portion was then passed as amended 21-0, with Rep. Kempenich carrying it. Finally, the committee considered HB 2160, changing the state health plan from grandfathered to non-grandfathered status. Members discussed cost shifting, employee retention, out-of-pocket exposure, and the updated fiscal note; the committee adopted an amendment updating the appropriation figures to match the current PERS/Deloitte analysis, then passed the bill as amended 15-7-1, with Rep. Worry originally the carrier.

Transcript Highlights:

• modernization of state agency systems, including the improvement of online access to services and reduction
• modernization of state agency systems, including the improvement of online access to services and reduction
• modernization of state agency systems, including the improvement of online access to services and reduction
• modernization of state agency systems, including the improvement of online access to services and reduction
• HB5340 relates to the sustainability of pesticide harm reduction in institutions of higher education

Keywords: 1184, house, all

Transcript Highlights:

• There's no reduction or increase in space.
• It's presented as a BEA increase in the space, but there's no reduction or increase in the total overall
• There's<00:09:55.600> no<00:09:55.760> reduction<00:09:56.080> or<00:09:56.480><
• c> increase<00:09:56.720> in There's no reduction or increase in There's no reduction or increase
• or increase in the total reduction or increase in the total overall<00:10:04.880> space<00:10

Keywords: 1189, house, all

Summary: The Long Range Capital Planning and Utilization Committee approved the April 14, 2025 minutes and then considered several capital items, mostly Department of Transportation property dispositions and one Department of Business and Economic Affairs lease amendment. BEA requested approval to amend its Granite Center LLC lease to absorb space used by Gopher, explaining that the arrangement would keep both agencies in the same building, allow flexible space allocation, and produce a modest net savings while using federal funds reimbursed through an interagency arrangement. The committee asked about Gopher’s role, the floor layout, and whether federal money was indirectly subsidizing the lease; the item was approved. DOT items approved included sale of a former maintenance parcel in Raymond, vacant land in Dover, a permanent utility easement in Conway for the Conway Water Precinct, and a direct sale of limited access right-of-way in Seabrook to C&J Seabrook LLC for parking expansion. Members asked about environmental liability on the Raymond parcel, the size and location of the Conway easement, and whether C&J would charge for parking; C&J said the expansion would support a successful facility and that parking revenues help fund improvements such as paving, lighting, and security cameras. The committee also approved a small Salem parcel sale to Brooks Property LLC. The Department of Environmental Services received approval to transfer 37 acres near a New Ipswich flood control site to the town as part of a long-running settlement involving cemetery encroachment onto state land. DES said the agreement, reached with the town in 2023, reflects prior legislation and includes payment to the state; members asked whether there was any current dam damage, and DES said there was none. In miscellaneous business, the New Hampshire Liquor Commission said the governor had directed cancellation of the planned RFP sale and that the matter would instead proceed as a ground lease through a new RFP process. The committee also noted informational items on Council on Resources and Development minutes and surplus land reviews, set the next meeting for September 29 at 9:30, and adjourned by motion.

Transcript Highlights:

• By doing it this way, we have now taken a proactive approach to risk reduction in the state of Florida
• By doing it this way, we have now taken a proactive approach to risk reduction in the state of Florida
• It does risk reduction for the state of Florida, provides a lot of compliance and transparency through
• Moving on with additional flood risk reduction, so instead of the temporary flood risk reduction you
• risk reduction, community involvement flood risk reduction.

Summary: The Committee on Community Affairs met with a quorum present and heard two hurricane-recovery presentations focused on Florida’s response and long-term recovery efforts. Kevin Guthrie, Executive Director of the Florida Division of Emergency Management, reviewed response and recovery operations for Hurricanes Debby, Helene, and Milton, including meals, water, sheltering, search and rescue deployments, power restoration, debris removal, flood-control efforts, and generator distribution. He also described ongoing public assistance and mitigation funding, the state’s FROC system for standardizing and speeding reimbursement documentation, and the Elevate Florida residential mitigation program, which will use about $400 million to elevate or reconstruct eligible flood-insurance properties and may expand to county-run programs. Senators asked about manufactured homes, school shelter hardening, mobile home tie-downs, reimbursement for USAR teams, debris hauling, regional sheltering, and FEMA review delays; Guthrie said the state is trying to move recovery faster and more proactively, while acknowledging some limits and federal bottlenecks. The committee then heard from Justin Domer, Deputy Secretary of Community Development at Florida Commerce, on HUD Community Development Block Grant Disaster Recovery programs. He explained that Commerce administers long-term recovery funds through its Office of Long-Term Resiliency for housing, infrastructure, and economic development, with funds used as a last resort after FEMA and insurance. Domer outlined the process for the most recent $925 million allocation covering multiple disasters, including Idalia, Debby, Helene, Milton, Broward flooding, and North Florida tornadoes, and said the state currently manages about $3.4 billion in DR funds, rising to over $4 billion with the new allocation. He highlighted completed and ongoing housing programs for Hurricane Irma, Michael, and Ian, plus workforce recovery programs and subrecipient infrastructure grants. Senators asked about Broward and Fort Lauderdale funding, homeowner turnaround times, and mobile home eligibility; Domer said Broward and Fort Lauderdale will have separate HUD-directed programs, and the committee adjourned after the presentations and questions.

Transcript Highlights:

• Is your question, Senator Davis, about the 3% reduction?
• How did we get to those amounts and reductions? You're troubled. Thank you very much, Mr.
• All those numbers represent about 3% across the board to hospital reductions.
• Senator Burgess, there are some reductions in the FEFP where it's.
• Categorical, and so in doing so, it looks like a reduction, but it's actually not a reduction.

Keywords: 998, house, all

Transcript Highlights:

• Until then, the reductions from SB 131 will persist until 2028.
• You'll see that we have a serious reduction in the poor performance categories over time.
• Improved facility conditions will lead to a reduction in unnecessary costs.
• Not to mention the 5% reduction in local match. So, would there be, Mr.
• It can result in a 5 to 15 percent reduction in energy and water use over time.

Transcript Highlights:

• For our silo, I believe the reductions are our highlights. So let's start with the reductions.
• We spend a lot of time in our meetings asking agencies, So let's start with the reductions.
• We instructed agencies to provide us reductions totaling 3% of their recurring funds.
• For some, we had to get creative to find reductions for them.
• Many of the reductions offered by the agencies have been included in this recommendation.

Summary: The State Administration Budget Subcommittee met for budget day, heard agency follow-up questions, and then presented its recommended budget for fiscal year 2025-2026. Chair Lopez opened with remarks about reducing spending, emphasizing vacancy reductions and recurring savings across agencies. The recommendation eliminated 452.5 vacant positions and produced recurring savings of $57.2 million overall, while still funding selected priorities. Notable funded items included $500,000 for a new DBPR website for condominium complaints and document filing, $481.3 million for the MICEF Florida Home Program in DFS, funding for Florida PALM implementation, $330,000 for a Tampa office in the Office of Insurance Regulation, $835,000 for warehouse space for confiscated gambling machines, $821,000 for the Lottery gaming system contract, and major DMS capital and facilities funding. Lopez also criticized DMS leadership and said the secretary’s salary would be held in reserve pending answers on fleet management, remote workers, SUNCOM billing, and other issues. The committee then questioned DBPR Secretary Griffin about condominium records, structural integrity reserve studies, and milestone-inspection compliance. Members focused on how the division tracks condominiums, whether it can identify buildings with three habitable stories, and whether the current filing system can be improved to better capture building height and story count. Griffin said the division relies heavily on self-reporting and complaint-driven checks, but has updated forms to capture whether a condominium has buildings three stories or higher and has received additional submissions. Members also asked about staffing and the Miami-area office; Griffin said DBPR now has two Fort Lauderdale offices and a Doral office, with about 82% of new positions filled. Secretary Davis of the Florida Lottery also testified, defending travel to Paris and other conferences as part of industry engagement, technology research, and best-practice sharing. He said the travel was reimbursed through lottery-related organizations, described the Lottery as an enterprise fund that receives no general tax revenue, and said the agency has remained a top revenue generator nationally. Members questioned Orlando travel reimbursements and dues to the Multi-State Lottery Association, and asked for more information on how increased revenue translates into more Bright Futures scholarships. Davis said he would provide additional details. The subcommittee then unanimously passed two conforming bills. PCB SAB 25-01 removed statutory references to the legacy FLAIR accounting system in preparation for Florida PALM and was reported favorably. PCB SAB 25-02 addressed Capitol Center space after the planned House lease cancellation, declaring the governor, cabinet, and legislature permanent tenants, protecting existing space and parking allocations, giving the legislature first right of refusal on vacant space, and giving legislative leaders control over utilities in their space; it also passed unanimously. The meeting adjourned after the bills were reported favorably.

Transcript Highlights:

• The governor requested a 3% reduction from this number.
• He requested a 3% reduction from that $716.6 million.
• And then the next one over is the governor's 3% reduction.
• the 3% governor reduction.
• And I know you've got a 3% reduction.

Summary: The Higher Education Funding Review Committee met to continue work on a draft higher education funding formula and related capital building fund changes. Lisa Johnson of the North Dakota University System updated the committee on the board’s developing policy for low-producing academic programs. She said the board is using a five-year rolling window, with thresholds of fewer than 10 undergraduate graduates or fewer than 5 graduate graduates, and that programs flagged in three consecutive review cycles would go to the board for review. Possible outcomes include continuation, continuation with modifications, inactivation, or termination. Members asked about how the policy would account for enrollment, program costs, workforce need, and programs that serve students outside their major. Johnson said the board would likely use an accompanying procedure to consider those factors. She also reported that about 200 programs could potentially be reviewed under current guidance, with 135 inactivated and 112 terminated, and said the process is intended to support quality and stewardship rather than simply cut programs. Jamie Wilkie then reported on the Capital Building Fund. He reviewed the fund’s history, matching requirements, and use for extraordinary repairs, deferred maintenance, and some legislatively authorized projects. He said about $334 million in state and matching dollars has been invested overall, with roughly 78.7% going to deferred maintenance and extraordinary repairs. Committee members pressed for updated information on how much deferred maintenance has actually been reduced, and several members said they wanted clearer reporting on the return on investment from new buildings versus repairs. NDSU representatives said the tier funding has helped significantly reduce deferred maintenance and allowed demolition and renovation work on campus. The committee also discussed the need for updated five-year facility plans and space-utilization information from the institutions. The committee then began a section-by-section review of a draft bill that would replace the current higher education funding formula with an FTE-based model and restructure the capital building fund. The draft would fund UND and NDSU differently from the other nine institutions, use fall enrollment rather than completed credits, add performance funding for completions in in-demand fields, create research incentives for UND and NDSU, and combine capital building fund tiers while changing matching requirements and eligible uses. Members raised concerns about the treatment of professional students, the use of CIP codes, incentives for waivers, and whether the formula should rely on more current data. The committee did not take final action on the draft during this meeting, but it continued detailed discussion and indicated more review would follow.

Transcript Highlights:

• priority or an urgent need, we recommend that if it approves it, that it finds dollar-for-dollar reductions
• We do offer a backfill to a reduction to a backfill to the state court facilities construction fund based
• The savings amount reflects a reduction in total contract costs.
• The total cost for this proposal is offset by reduction of deactivations at other institutions, making
• This will significantly alleviate the service-level reductions caused by lower-level federal funding

Summary: Assembly Budget Subcommittee No. 6 heard the Governor’s May Revision proposals for the judicial branch, the Board of State and Community Corrections, the Department of Justice, and the California Department of Corrections and Rehabilitation. The Legislative Analyst’s Office opened with a warning that the state budget remains structurally imbalanced and urged the Legislature to avoid new ongoing spending unless offset by reductions elsewhere. In the judicial branch discussion, the Judicial Council highlighted language access funding, appellate court security, a backfill for the state court facilities construction fund, and an extension of the lactation room mandate; Finance supported most items but suggested reporting language on interpreter costs and reducing the General Fund backfill. Members raised concerns about judicial vacancies, long-term salary freezes, remote hearings, and the lack of progress on court staffing in some counties. For the Board of State and Community Corrections, the administration proposed $10 million one-time each for the Missing and Murdered Indigenous People grant program and a human trafficking vertical prosecution grant program. The LAO said both should be weighed against other priorities and suggested the Legislature consider whether the Tribal Nations Grant Fund could support MMIP work, while Finance said it preferred General Fund support and wanted more review before any fund swap. Members strongly supported MMIP funding and asked whether ongoing support would be considered. On the human trafficking grant, Finance said BSC was a good fit because of its grant administration experience and prior vertical prosecution work, while legislators asked why the program was not placed with the Office of Emergency Services as originally contemplated in prior legislation. The Department of Justice presented antitrust litigation funding, Medi-Cal Fraud and Elder Abuse staffing, completion of organized retail criminal enterprise cases, and trailer bill language for a continuous appropriation from the Victims of Consumer Fraud Restitution Fund. The LAO supported the antitrust account use but questioned the Unfair Competition Law Fund’s ability to cover the full request without General Fund repayment, and recommended against a continuous appropriation for the restitution fund in favor of a more limited mechanism with legislative oversight. Finance said the fund would remain solvent and defended the continuous appropriation as necessary to pay victims promptly. In the CDCR portion, the largest discussion centered on the Boston Consulting Group efficiency review and sharply reduced savings estimates; LAO said the department had not fully explained the proposed position eliminations or future $100 million savings target, while Finance said the work reflected deeper analysis and ongoing efforts to find savings. Members repeatedly pressed CDCR and Finance on the gap between earlier promised savings and the revised figures. CDCR also outlined population projections showing continued declines in prison and parole populations, while LAO again urged the state to close an additional prison to save ongoing costs. The department then walked through several May Revision items, including workers’ compensation funding, a Corcoran honor housing dorm, incarcerated firefighter pay implementation, an incarcerated menopause program, mental health receiver staffing, mental health resource teams and crisis intervention teams, medical classification staffing changes, and AI note-taking for the electronic health record. LAO generally recommended limiting-term funding and more reporting for many of these proposals, while Finance defended them as necessary ongoing investments or court-ordered obligations. Members questioned the cost of workers’ compensation, the need for more prison closures, the lack of funding for women’s facility violence prevention, and the timing and transparency of the BCG savings process. No votes were taken.