Transcript Highlights:

• are paid at a higher rate, so moving into a lower-costing setting saves funds.
• And the savings are there on the back end.
• Ultimately save lives. I do understand.
• While we acknowledge the savings, it would be, as we talked about... ...the savings, it would be, as
• And I’m not talking about the savings.

Committee: Senate Finance

Summary: The Finance Committee met on May 27, 2026, with six members present and took up a series of House bills, most of them dealing with education funding, criminal justice staffing, transportation, health care access, and economic development. HB 325 was reported favorably after testimony that it would expand TOPS eligibility by allowing dual-enrollment credits to satisfy eligibility criteria and by making part-time students eligible for TOPS Tech, with supporters saying the program has been underused and the change would help working students. HB 719 was amended and reported favorably to increase assistant district attorney positions in various judicial districts; the Louisiana District Attorneys Association said the changes were based on workload data and local input, and members discussed the need to coordinate any expansion with public defender funding. The committee also reported HB 749 favorably, which would move Louisiana’s 529 savings accounts to a more secure online platform after a cyber incident, and HB 1028 favorably, which concerns transportation reimbursement for providers and was described as already subject to appropriation. Several bills focused on food access and local economic development. HB 1222, the Grocery Initiative Act, was reported favorably to let LED use existing grant resources to map food deserts and develop a program, with members noting it could return for funding later if needed. HB 1194 was amended and reported favorably to define food deserts and direct the LSU AgCenter and the Department of Agriculture and Forestry to identify and map them, with authors emphasizing it was a study and not a government-run grocery program. HB 755, which would create IDIQ contracting for architects and engineers on smaller state projects, was reported favorably with no fiscal impact. HB 823, a local diversion pilot for Orleans Parish, was also reported favorably after the fiscal note was revised to remove state impact and reflect only local costs. The committee spent substantial time on HB 488, a proposal from Plaquemines Parish to use severance-tax revenue to help buy out a private toll concession on the parish’s bridge. The author and local officials described severe toll burdens, economic harm to local businesses, and what they called an unfair contract, but members noted the bill was not funded and ultimately deferred it without a motion. HB 797, the Bayou Gold/Louisiana Sound Money Act, was amended to make implementation subject to appropriation and then reported favorably. The committee also took up HB 198, which would raise Medicaid reimbursement for ambulatory surgery centers for certain outpatient procedures; after extensive discussion about fiscal notes, access to care, and potential long-term savings, the bill was amended to narrow its scope and make implementation subject to appropriation, then reported favorably as amended. The meeting ended with the chair noting it would be the committee’s last meeting and asking members to spread the word.

Transcript Highlights:

• </c> toward measurable cost savings. toward measurable cost savings.
• </c> patients save lives, that program save patients save lives, that program save lives<01:02:15.920
• or are we talking about general funds or are we talking about general funds?
• funds? funds?
• </c> general fund request. general fund request.

Summary: The meeting opened with roll call, approval of the September 17 minutes, and an introduction of Sarah Rome to the committee. The chair also noted that the committee would stay on schedule and then moved to presentations. Representative Amy Neighbors and Taylor Williams of the Kentucky Pharmacists Association presented a refiled “pharmacy parity” proposal, formerly House Bill 3, to require Medicaid reimbursement for pharmacist clinical services already authorized under current scope of practice. They said the bill would not expand Medicaid or pharmacist scope, but would align Medicaid with commercial insurance, improve access and outcomes, and likely save money; they cited a Cabinet report under Senate Joint Resolution 26, which found similar laws in other states were producing savings or trending toward savings and would require only modest administrative updates. No member questions were raised after that presentation. The committee then heard an update on the Kentucky Colon Cancer Screening Program from Senator Stephen Meredith, Dr. Whitney Jones, Melissa Carrier, and Representative Neighbors. They described the program’s goals of increasing screening, reducing deaths through earlier detection, and preventing cancers by finding polyps, saying it has produced substantial savings and improved outcomes. Speakers emphasized Kentucky’s high colorectal cancer burden, especially in younger adults, and said the program helps uninsured and underinsured Kentuckians access stool-based screening and follow-up colonoscopies through a network of partners including the Department for Public Health, Kentucky Cancer Link, and university cancer programs. They requested an increase in funding from $500,000 to $1.25 million annually, or $2.5 million over the biennium, to expand services, fill geographic gaps, and support education and navigation. Members asked whether the colon cancer screening was already covered by Medicaid, and the presenters replied that Medicaid does cover it, but the program serves people who are not on Medicaid or who fall into a separate eligibility category based on income and insurance status. A member also clarified the requested funding increase. The committee then moved on to the next agenda item, an update from the Children’s Home of Northern Kentucky, where board member Sal Santoro and CHNK Behavioral Health leaders began a presentation describing the organization’s broader behavioral health work and its request, but the transcript cuts off before that presentation concludes or any action is taken.

Transcript Highlights:

• Cynthia Mendoza: Historically, these payments were funded through salary savings from vacant positions
• So using salary savings, given that they're fluctuating, they are a less stable fund source for these
• Just real quickly, this vacancy savings seems almost like it might be utilized as a slush fund for things
• I would just mention that I understand historically we have used vacancy savings to help fund these costs
• an elimination of roughly 522 positions in 2026-27, and ongoing General Fund savings of over $150 million

Summary: The Assembly Budget Subcommittee No. 6 on Public Safety heard updates on CDCR’s population projections and the preliminary fiscal impacts of Proposition 36. CDCR said its fall 2025 projections show continued declines in the institution and parole populations through June 2030, while noting Prop. 36 admissions are increasing but remain uncertain. The LAO said the administration’s Prop. 36 estimates may be somewhat low because they were based on only six months of implementation data, and the Department of Finance agreed the methodology is still developing. Committee members asked about the offenses driving admissions and the sentence-length impacts, and CDCR identified the main qualifying offenses and enhancements it is tracking. No votes were taken. The committee then discussed CDCR’s request for $91 million ongoing for lump-sum leave cashouts for correctional officers and nurses. CDCR said vacancy reductions and prison closures have reduced the salary savings historically used to cover these costs. The LAO supported the funding only on a limited-term basis and urged more oversight and reporting on CDCR’s structural shortfall, while the Department of Finance argued ongoing funding is needed because leave liabilities are mandatory and salary savings are less stable. Members raised concerns about transparency, asked about leave buyback practices and accrued leave balances, and requested more information before the May Revision. Members also heard CDCR’s proposals for $10 million for the final two statewide video surveillance projects and $15.2 million for Fire Watch coverage and related fire alarm work. The LAO supported the Fire Watch request as a one-time health and safety cost, while CDCR explained the aging prison infrastructure and the need for interim safety measures while longer-term replacement planning is developed. The committee then reviewed CDCR’s proposal to close the California Rehabilitation Center, which would produce a net General Fund reduction of $99.6 million in 2026-27 and ongoing savings of more than $150 million starting in 2027-28. CDCR said the closure is driven by sustained population declines and will include retention and realignment funding; the LAO recommended approval. Public comment focused on county funding for Prop. 36 implementation, opposition to using Prop. 36 as a reason to keep prisons open, and support for community-based rehabilitation programs. The hearing adjourned without any votes.

Transcript Highlights:

• Historically, these payments were funded through salary savings from vacant positions, but reductions
• Without dedicated funding, the department would have to divert funds from other areas should salary savings
• So using salary savings, given that they're fluctuating, they are a less stable fund source for these
• Just real quickly, this vacancy savings seems almost like it might be utilized as a slush fund for things
• I would just mention that I understand historically we have used vacancy savings to help fund these costs

Transcript Highlights:

• The power of innovative research in saving young lives and the crucial role of federal funding for these
• The National Science Foundation is an extraordinary funding agency in that it funds basic research.
• There's no funding.
• We don't fund enough. The payline is not enough. Funds are already at 20 and 10 percent.
• It means less research into life-saving treatments, life-saving cures and treatments.

Committee: Senate Senate Appropriations

Transcript Highlights:

• So there will be savings.
• , the T fund, and the education fund.
• fund.
• ... funding in the transportation fund.
• You didn't cause the problem in the education fund; it was in the transportation fund.

Transcript Highlights:

• We estimate the associated General Fund savings by projecting the costs that would have been incurred
• We estimate the associated General Fund savings from this proposal by projecting the number of individuals
• So no longer having staff there results in a General Fund savings of $8.1 million.
• And so no longer having staff there results in a general fund savings of $8.1 million.
• Fund ongoing, but that savings amount was based on an assumption.

Summary: The subcommittee heard an overview of the governor’s IHSS budget proposals and extensive testimony from the Department of Social Services, Department of Finance, the Legislative Analyst’s Office, county representatives, labor, consumer advocates, and advocates for older adults and people with disabilities. The administration described IHSS as a large and growing program serving more than 900,000 recipients, and outlined three proposals: shifting the cost of growth in authorized hours per case to counties, eliminating the backup provider system, and aligning IHSS terminations with Medi-Cal terminations. The LAO said the overall budget estimates appeared reasonable but raised concerns about the hours-per-case proposal, including the lack of a comprehensive root-cause analysis, the limited control counties have over statewide cost growth, and uncertainty about how the baseline and savings would work. CWDA, SEIU, and consumer advocates strongly opposed the hours cost shift, arguing that counties use state-designed tools, that demographic changes and rising need explain much of the growth, and that the proposal would pressure counties to cut services and destabilize care. The chair and members repeatedly questioned the administration about the proposed baseline, the claimed savings, and whether the measure effectively circumvents the county maintenance-of-effort agreement. On the backup provider system, the administration said the statewide program is underutilized and administratively expensive, and proposed eliminating it to save about $3.5 million. The LAO suggested the Legislature consider whether administrative costs could be reduced while preserving some version of the program. County and consumer advocates opposed the cut, saying the system is a critical safety net when regular providers are unavailable, especially in rural areas and for people with complex needs. They argued that low utilization reflects the difficulty of finding emergency backup care, not lack of need, and that many counties already rely on local backup systems or other models. Committee members also pressed for better data on requests, fulfillment, and administrative costs, and discussed whether the state could support local alternatives instead of eliminating the program. The final topic was the proposal to align IHSS terminations with Medi-Cal terminations by automating the process when recipients fail to complete Medi-Cal redeterminations. The administration said this would reduce General Fund costs by about $86 million by preventing payment of IHSS in the residual program when recipients are no longer eligible for Medi-Cal, while also automating reinstatement when Medi-Cal is restored. The LAO noted the proposal has been rejected in prior years and suggested improved notice and communication to recipients as an alternative. CWDA and advocates warned that the change could create gaps in care, especially for people who lose Medi-Cal for procedural reasons, and urged additional safeguards such as better notices, faster reprocessing, and automatic reinstatement. Members questioned how many people would be affected, how the residual program currently works, and whether providers could go unpaid during the gap; the department said the automation is already built and would be activated if the proposal is approved. No votes were taken during the discussion, and the committee moved through public comment and questioning without final action on the proposals in the excerpt provided.

Transcript Highlights:

• to fund the next.
• You can get more funded or less funded, but it's very hard to just stay there.
• Fund.
• fund.
• Fund of $207,683.

Summary: The Public Retirement System Actuarial Committee met on February 23, 2026, approved the December 18, 2025 minutes, and heard no public comment. The committee then reviewed actuarial valuation reports and, for most systems, accompanying experience studies. The actuaries reported generally favorable investment and demographic experience across the systems, with funded ratios improving and employer contribution rates declining in several plans. They also explained the role of funding deposit accounts, frozen unfunded liabilities in some plans, and how recent legislative changes, especially the move to five-year DROP periods in some systems, affected assumptions and costs. For the Louisiana Clerk of Court Retirement Relief Fund, the committee adopted the valuation and experience study, recognizing a fiscal 2027 minimum recommended employer rate of 14.75%. For the District Attorney’s Retirement System, it adopted the valuation and experience study and recognized a fiscal 2027 minimum rate of 3.00%. For the Firefighters’ Retirement System, the committee adopted the valuation and experience study, recognized a fiscal 2027 minimum rate of 25.5%, and noted that DROP balances left on deposit will earn the market rate of return of 11.7%. The committee also adopted the Municipal Employees’ Retirement System valuation for both Plan A and Plan B, recognizing fiscal 2027 minimum rates of 20.75% and 8.75%, respectively. It adopted the Municipal Police Employees’ Retirement System valuation and experience study, recognizing a fiscal 2027 minimum rate of 26.5%, a DROP crediting rate of 7.4%, and a policy range up to 29.35% for future contributions. For the Registrars of Voters Employees’ Retirement System, the committee adopted the valuation and experience study, recognized a fiscal 2027 minimum rate of 0%, and noted a $207,683 allocation to the Member Supplemental Savings Fund for fiscal 2026. Finally, it adopted the Sheriff’s Pension and Relief Fund valuation and experience study, recognizing a fiscal 2027 minimum rate of 7.75%. All motions passed without objection, and the meeting adjourned.

Transcript Highlights:

• Uh, we’re very confident in the accuracy of SAVE and in the instances that there are issues with SAVE
• Uh, we’re very confident in the accuracy of SAVE and in the instances that there are issues with SAVE
• </c> so, he is very familiar with how SAVE so, he is very familiar with how SAVE works<00:14:10.240><
• Uh, we’re very confident in the accuracy of SAVE and in the instances that there are issues with SAVE
• </c> security fund. security fund.

Committee: Joint Elections

Transcript Highlights:

• fund.
• fund.
• fund.
• The fiscal impact of this allowance is a general fund cost of um to save time.
• The fiscal impact of this allowance is a general fund cost of And that is a savings to the general fund

Bills: HF2730 , HF2257 , HF2768 , HF1932 , HF2437

Committee: House Taxes

Transcript Highlights:

• The system is adequately funded by federal funds.
• the General Fund.
• So the SAVE Act is saving who? Who is the SAVE Act saving?
• He's praised our telework savings, efficiency, and carbon savings.
• He's praised our telework savings, efficiency, and carbon savings.

Summary: The Assembly Budget Subcommittee No. 5 heard updates from the Secretary of State, EDD, the State Controller’s Office, CalHR, and DGS on a range of budget proposals and federal policy impacts. Secretary of State Shirley Weber opened with remarks about California’s election system, emphasizing its safety, transparency, high voter registration and vote-by-mail participation, and the office’s response to bomb threats and other election threats. Her staff then presented funding requests for the Cal-Access Replacement System (CARS) and Help America Vote Act/VoteCal activities, describing them as needed to modernize campaign finance and lobbying disclosure systems and maintain election security and voter services. A major portion of the hearing focused on federal election policy, especially the potential effects of a presidential executive order and the SAVE Act. Secretary of State staff said California would face significant, potentially unquantifiable costs if forced to comply, including new burdens on county recorders, county election offices, and the Secretary of State’s office, and warned of voter disenfranchisement, especially for students, seniors, disabled voters, military and overseas voters, rural residents, and people with limited transportation. Members and public commenters strongly opposed the federal proposals and argued California’s current system is functioning well. The committee also heard that federal HAVA funds were not expected to be at risk because the state draws them down into an interest-bearing account. EDD reported on paid family leave, explaining that recent delays were tied to a system transition and increased claim volume, and said it was simplifying applications and adding staff and automation. Public testimony supported expanding paid family leave to chosen family. EDD also said it is prepared for possible unemployment spikes, citing a recession plan, a command center, and recent hiring. The State Controller’s Office requested funding to continue the Fiscal migration project, which would move the state’s accounting book of record to the new system by July 1, 2026; Finance and LAO had no objections, and the committee expressed support for the project’s progress. CalHR presented a proposal for a statewide recruitment, outreach, and education paid media campaign under AB 1511, saying its current advertising budget is too small to reach diverse communities effectively. The final item addressed Governor Newsom’s executive order requiring a return to office on a four-day schedule. CalHR and DGS said they were working department-by-department to assess space, parking, transit, and other logistics, but had not completed a statewide cost analysis. Members and many public commenters criticized the order, arguing it was rushed, costly, harmful to telework benefits, and potentially disruptive to workers, especially those with disabilities, caregiving responsibilities, or long commutes. No votes were taken during the hearing.

Transcript Highlights:

• The request before you is requesting a one-time funding of 15 million a general fund to support the continuation
• The system is adequately funded by federal funds.
• general fund.
• So the SAVE Act is saving who? Who is the SAVE Act saving?
• He's praised our telework, savings, efficiency, and carbon savings.

Transcript Highlights:

• So who's going to come up with the funding? I'm sorry, who funds this?
• the fund.
• Reserve Fund, which is just a fund to reserve, you know, to save in for whatever reason.
• The amendments also create a sub-fund called the Law Enforcement Retention Incentive Fund, a sub-fund
• So if we took this $200,000 that we're saving and put it into that fund, then we could allow them to

Committee: House Appropriations

Summary: The House Appropriations Committee met on April 27 and first took up House Bill 175 and its companion House Bill 165, both dealing with lottery proceeds for veterans. HB 175 was amended to create a Veterans Service Grant Board within the Department of Veterans Affairs and direct $500,000 annually from Louisiana Lottery net proceeds into a Veterans Service Grant Fund, with unused money returned to the lottery proceeds fund that supports the MFP. Supporters, including the bill sponsor, The Boot Louisiana, LDVA Secretary Charlton McGinley, and Bastion Veterans Organization, argued the grants would help veteran services, workforce placement, mental health, housing, entrepreneurship, and retention of veterans in Louisiana. Members raised concerns about drawing from lottery proceeds that traditionally support education, but the committee adopted amendments and reported HB 175 favorably as amended. HB 165, the constitutional amendment companion, was also amended for technical and ballot-language changes and then reported favorably as amended for voter consideration. The committee then considered House Bill 457, which would authorize the Louisiana Department of Health and the State Fire Marshal to set minimum housing standards for homeless shelters, group homes, and halfway homes. The sponsor said the bill responded to a state auditor recommendation and to unsafe conditions in some facilities; he also explained an amendment changing the Fire Marshal’s duties from mandatory to permissive to reduce fiscal impact and allow agencies flexibility. Some members questioned whether local standards already existed and how enforcement and funding would work, while others supported the need for statewide minimum standards for human housing. The committee adopted the amendment and reported HB 457 favorably as amended. House Bill 488, by Representative Brough, sought to create a Belle Chasse Bridge Merit-Based Special Fund using recurring severance tax revenues from Plaquemines Parish to help buy out the Belle Chasse toll bridge and end what the sponsor described as excessive tolls and fees. He and several local witnesses, including business owners, a YMCA representative, and a parish council member, testified that the tolling arrangement had harmed access, businesses, and quality of life. The committee adopted a technical amendment clarifying the revenue source and then reported HB 488 favorably as amended. House Bill 566, which would prohibit state funds from supporting net-zero greenhouse gas initiatives tied to the 2022 Louisiana Climate Action Plan, drew significant debate over whether it would interfere with agency funding and economic development efforts; the sponsor argued the plan lacked legislative approval and should be repudiated, while members urged caution and suggested hearing from affected agencies. The sponsor agreed to consider deferring the bill, and the committee did not advance it at that time. House Bill 603, a constitutional amendment authorizing investment of state funds in digital assets and precious metals, was discussed as a way to hedge inflation and preserve value; members asked about limits and safeguards, and the bill was reported favorably. The committee then began hearing House Bill 763, a transparency measure creating a public database for settlement agreements involving state agencies.

Transcript Highlights:

• in the first biennium, but then its funding in the second biennium is removed for a savings of $200,000
• This results in a savings to the general fund of $43,199,000 in the 2026-27 biennium and $48,242,000
• This would eliminate funding for the program beginning in fiscal year 2028 for a general fund savings
• This results in a general fund savings of $19,627,000 in the 2026-27 biennium and $22,590,000 in the
• This results in a general fund savings<00:36:21.040><c> of</c> savings of savings of $19,627,000<00:36

Transcript Highlights:

• The funds that are covered by the four-year balanced budget requirement include the general fund, the
• and the other related outlook funds, and not just for the general fund.
• Both the House and Senate budgets assume $21 million in savings per year in general fund state in their
• respective budgets for moving to a savings per year in general fund state in their respective budgets
• The House-passed budget reflects this policy at an estimated $4.65 million per year in general fund savings

Summary: The Appropriations Committee held public hearings on several bills and took executive action on House Bill 2747. HB 2747 would change how Washington estimates future revenue in its four-year balanced budget outlooks by using the official revenue forecast instead of the current 4.5% growth assumption for the next two biennia. Staff described the bill as a technical change with indeterminate fiscal effects, and supporters said it would make budgeting more realistic and sustainable. The committee adopted a technical amendment and then reported the bill out of committee with a do pass recommendation by a vote of 26 ayes, 3 nays, and 2 excused. The committee also heard Second Substitute Senate Bill 6182, which would create an abortion savings program funded by a new annual assessment on health carriers offering exchange plans. Staff said the bill would generate about $10 million in fiscal year 2027 and about $2.1 million annually thereafter, with most funds going to grants for abortion care providers and some administrative costs for the Office of the Insurance Commissioner and the Department of Health. Supporters said it would stabilize access to abortion care and help low-income patients, while opponents argued it would force taxpayers and insurers to subsidize abortion and raised concerns about oversight, morality, and premium impacts. Substitute Senate Bill 6355, which would create a Washington Electric Transmission Authority to support new transmission projects and related tribal clean energy work, drew testimony from utilities, labor, clean energy advocates, counties, and landowners. Supporters said the state needs faster transmission buildout to improve reliability, support clean energy, and reduce congestion costs; opponents and county representatives raised concerns about eminent domain, loss of local tax revenue, board accountability, and the need for stronger landowner and county involvement. Staff estimated the bill would have a several-million-dollar general fund impact and noted possible indeterminate local revenue effects. The committee also received a briefing on engrossed Substitute Senate Bill 6260, which would reduce funding or eligibility for several K-12 programs, including bus depreciation, Running Start, and transition to kindergarten; public testimony was overwhelmingly opposed, with school officials, educators, community college representatives, students, and rural districts warning of reduced opportunities and harm to small and low-income districts.

Transcript Highlights:

• The decrease in funding is primarily attributed to IST solutions savings, and the new positions are to
• And because the savings came from that, is there any need for any outside additional funding to get that
• So isn't there an incentive for counties to fund these mobile crisis units then, so you can save money
• So if there's an economic downturn, there is still funding that they have in their, what we call a savings
• I urge you to please fund the helpline. It saves lives and strengthens our communities.

Transcript Highlights:

• Fund deficit.
• savings.
• savings.
• This is a modest investment with life-saving impact. Please sustain this funding. Thank you.
• And so those could also be funded by General Fund.

Summary: The Senate Budget Subcommittee No. 5 held an informational hearing on the Governor’s May Revision proposals for labor, public safety/judiciary, and transportation, and no votes were taken. In Part A on labor, the Employment Development Department described funding for EDD Next document management work, updated UI loan interest costs, disability insurance and paid family leave benefit increases, WIOA adjustments, UI and school employee benefit changes, an EMT training reappropriation, and a technical correction tied to an EDD Next reversion. PERB discussed reduced funding requests for AB 288 due to litigation and a proposal to implement AB 1 covering legislative employees. DIR presented proposals for legal unit reclassifications, two major IT modernization projects, a new Cal/OSHA emerging technologies unit, a COIA reappropriation, and trailer bill language requiring electronic payment of employer assessments and removing a salary cap for the DWC administrative director. CalHR proposed consolidating employee assistance services into a statewide contract with enhanced support for first responders, and CalPERS and CalSTRS presented budget adjustments tied to investment costs, state contributions, and benefit overpayments. Members focused heavily on the unemployment insurance debt and interest payments, asking why the administration had no concrete plan to pay down principal. Finance and LAO explained that the state’s UI tax structure has long been insufficient and that any long-term solution would need to address both the outstanding federal loan and the structural imbalance in employer taxes. Questions also centered on EDD Next costs and timelines, with the chair asking for clearer long-term project cost estimates and Finance noting that future maintenance and operations costs will continue after implementation. On DIR’s emerging technologies unit, members asked whether it would address AI-driven workplace harms; DIR said the unit would focus on physical workplace safety issues involving AI, robotics, autonomous equipment, and related guardrails, while LAO noted broader labor-practice questions would likely fall outside Cal/OSHA’s scope. In the CalPERS discussion, members raised concerns about transparency in private equity and external management fees, while CalPERS said higher fees reflect a strategy of greater private-market and active-management exposure and are offset by higher net returns. Members urged more information on specific investments and future reporting. For CalSTRS, Finance presented routine contribution and overpayment adjustments, but members also raised broader transparency concerns that CalSTRS staff said they would follow up on separately. Public comment in Part A was dominated by strong support for an immigrant worker emergency relief fund, along with support for apprenticeship and workforce proposals and PERB staffing. The chair and members said they would follow up on where the immigrant relief proposal should be considered, noting it may belong in another policy area. The hearing then moved into Part B with an overview of Judicial Branch-related May Revision items, including court interpreter funding, appellate court security, workload cap changes, lactation room implementation delays, and a reduction to the state court facility construction backfill.

Transcript Highlights:

• The decrease in funding is primarily attributed to IST solutions savings, and the new positions are to
• And because the savings came from that, is there any need for any outside additional funding to get that
• So isn't there an incentive for counties to fund these mobile crisis units then, so you can save money
• So if there's an economic downturn, there is still funding that they have in their, what we call a savings
• I urge you to please fund the helpline. It saves lives and strengthens our communities.

Summary: The subcommittee heard budget and policy updates from the Department of State Hospitals, the Commission for Behavioral Health, and the Department of Health Care Services. DSH described its proposed 2026-27 budget of $3.2 billion, including savings tied to IST solutions, higher patient-driven operating costs, and a small increase in caseload projections. Officials said the department has met court-ordered IST treatment benchmarks, with wait times reduced from a pandemic peak of 1,953 pending placements to about 250, and average treatment initiation now around five days. Members asked about the effects of Proposition 36 and SB 1323, rising outside hospitalization costs, Medicare enrollment, and whether IST solution funding was being overbudgeted; DSH said referrals are slightly down overall, aging and medically complex patients are driving outside care costs, and the IST solution savings reflect slower-than-expected program activation rather than a service gap. The department also outlined proposed funding for CONREP cost increases, a new county-by-county LPS bed allocation model, electrical infrastructure upgrades at Napa and Patton, SB 380 transitional housing feasibility work, and additional dental staffing and space at Metropolitan and Patton. The Commission for Behavioral Health reviewed its role in the Behavioral Health Services Act transition and its new Innovation Partnership Fund. Staff said the commission is shifting from county-level innovation oversight to a statewide grant strategy, with the first $20 million RFA drawing strong interest and awards expected in mid-June. Members asked how “innovation” would be defined, whether grants could be renewed after the initial three-year contracts, and how the state would ensure the money supports real service delivery rather than general outreach or training. The commission also sought a liquidation deadline extension for the Alcove youth drop-in center grants so remaining funds can be spent before they revert, allowing sites to finish implementation and support the final evaluation. DHCS provided an overview of CalAIM and BH Connect implementation, including updated specialty mental health access criteria, new ASAM-based substance use treatment standards, contingency management, traditional health care practices for tribal members, workforce investments, evidence-based practice expansion, IMD participation, and transitional rent services. The department also addressed BHSA implementation, saying it does not track specific local program cuts but will monitor county three-year plans, performance measures, and outcomes as counties shift to the new funding structure. On H.R. 1, DHCS said it is preparing outreach, eligibility simplification, and exemption strategies to reduce Medi-Cal coverage losses, including clinic navigators, a statewide outreach campaign, and possible employment supports through a future waiver. The department also reported that BH-CHIP bond funds have supported 437 infrastructure projects, creating 546 facilities and more than 9,500 residential beds, with additional outpatient capacity and tribal investments. Finally, DHCS outlined a proposed 988 trailer bill to create a statewide designation process for 988 centers and mobile crisis teams, with implementation no earlier than October 1, 2027.

Transcript Highlights:

• The balance in that fund acted at the time and continues to act... ...in that fund acted at the time
• And overall, the state saved about 300,000. The state saved about $351,000 in FY 2024.
• It funded 113 positions and 128 schools.
• for funding was 2020.
• It funded 386 positions in 424 schools.

Committee: Senate Senate Education Committee of Reference

Transcript Highlights:

• The bill before you would also create publicly funded savings accounts, or baby bonds, for children and
• Match savings provides a tangible increase in assets by matching dollars up to a four-to-one ratio saved
• New parents will build wealth through baby bonds and matched savings funds.
• We have funding to expand it.
• Match savings accounts connect families to financial institutions and encourage savings.

Bills: H5085 , H5286

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

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