Transcript Highlights:

• Or should we have a budget hearing and we'll have the availability then?
• Or should we have a budget hearing and we'll have the availability then?
• That doesn't do anything to Gallup's budget.
• It's historically been built into the base budget and underutilized.
• This is the reform or the disaster funding, Mr. Chairman. Okay.

Bills: SB152 , SB145 , HB2 , SB190 , HB247

Committee: Senate House Appropriations & Finance

Summary: The committee first set aside Senate Bill 247 because the Attorney General and bill sponsor were not present. It then heard Senate Bill 190, which would authorize bonding to help Healer Regional Medical Center in rural southwest New Mexico replace an aging linear accelerator used for cancer radiation treatment. The sponsor and hospital representatives said the equipment is at end of life and that replacing it would keep patients from having to travel long distances for care. The committee adopted a friendly amendment adding an emergency clause, but members then questioned the financing, noting the $5.7 million cost, the lack of local matching funds, and the fact that the equipment’s useful life is only about 10 years while the proposed bonds would run for 30 years. After extended discussion about interest costs and timing, committee members explored alternatives to reduce the state’s borrowing burden, including using existing rural health care funds, federal grant money, or structuring a county lease arrangement rather than issuing bonds. The bill was left pending while staff and the sponsor were asked to look into those options and report back. The committee also briefly heard from the Department of Justice about concerns raised by the Public Education Department regarding Gallup-McKinley and online learning companies; DOJ said investigations were ongoing but it could not say whether a lawsuit would be filed. Members expressed concern about possible large liabilities and discussed bringing the Attorney General and PED Secretary back in executive session. The meeting then shifted to House Bill 2 and related budget matters. Staff walked members through numerous line items, flagging some as potentially duplicative, unspent, or in need of further review, including attorney general litigation funds, rural health, education, transportation, tourism, energy, and economic development items. The committee adopted the “grow” spreadsheet after members said they had reviewed it, and then discussed reserve targets. Staff presented several scenarios to raise reserves from about 26.7% toward the 27.5% target, including cuts to natural resource, environmental, higher education, and transportation appropriations. Members generally favored a flexible “scenario five” approach and were reluctant to sweep older capital outlay projects immediately, preferring to wait until the capital outlay changes bill is resolved. The committee planned to continue the budget discussion the next morning.

Transcript Highlights:

• I know it would be hard for you, but imagine a world where we're facing some budget difficulties.
• For reference, the 2527 biennial budget provides, include in the upcoming entitlement.
• I know it would be hard for you, but imagine a world where we're facing some budget difficulties.
• As you know, the Recycling Reform Act passed last year.
• Question for you: How do you think this is going to affect your family budget? It's going to.

Summary: The committee held a public hearing and briefing on several bills, with House Bill 2441, House Bill 2159, House Bill 2521, House Bill 2531, House Bill 2543, and House Bill 1607 discussed in that order after agenda changes. HB 2441 would expand reimbursement from the LEO retirement fund for survivors of law enforcement officers killed in the line of duty, covering Medicare Parts A and B premiums and retroactive health insurance premiums during the period before a death is officially determined to be work-related. Staff described a relatively small number of affected survivors and modest actuarial impacts, and the prime sponsor spoke emotionally in support. A representative from the L&I Board also testified that the board had studied the issue and endorsed the bill. HB 2159 would create the Pre-K Promise Account to receive philanthropic funds for ECEAP expansion. Staff explained ECEAP eligibility and the proposed non-appropriated account structure, noting Governor Ferguson’s budget included $34.5 million in non-appropriated authority for about 2,000 new school-day slots. Testimony was strongly supportive from Ballmer Group, DCYF, Head Start/ECEAP advocates, a Yakima provider, and the governor’s office, all emphasizing the public-private partnership, expanded access, and support for children furthest from opportunity. HB 2521 would remove the $18 cap on the State Patrol’s firearm background check fee and allow the fee to be set to cover total program costs. Staff said the fee could rise to about $33 per check based on current costs, and the State Patrol testified that the cap no longer matches actual expenses and threatens staffing and service levels. One member of the public opposed the bill, arguing the state system should be scrapped or capped and that consumers would face higher costs. HB 2531 would freeze the ambulance quality assurance fee at its July 4, 2025 level to comply with federal law and adjust Medicaid add-on payments accordingly; the Washington Ambulance Association strongly supported it as essential to preserving federal matching funds and improving wages and benefits. HB 2543 would update county clerk fees and modernize outdated references, with county officials supporting the changes as necessary to reflect current electronic-record practices. HB 1607, the Recycling Refund Act, drew the most extensive testimony. Staff described a 10-cent refund system for covered beverage containers, a producer responsibility organization, Ecology oversight, and fiscal impacts tied to program administration and lost tax revenue. Supporters, including environmental groups, youth advocates, Seattle Public Utilities, and some industry voices, argued the bill would reduce litter, increase recycling rates, support reuse systems, and complement the existing recycling reform law. Opponents from recycling haulers, grocers, beverage interests, counties, and solid waste providers argued it would function like a tax, raise consumer and retailer costs, duplicate or undermine curbside recycling and EPR, and create siting and implementation problems. No votes were taken on the bills in this transcript; the hearing concluded with public testimony and adjournment.

Transcript Highlights:

• We are also proposing basic service reforms.
• We also, several other reforms among the bill.
• This budget is massive.
• Budget billing estimates the total of 12 consecutive months...
• Budget billing estimates the total of 12 consecutive months Budget billing estimates the total of 12

Summary: The House opened with routine formalities and then adopted a resolution recognizing the work of Ukraine Forward after suspending the rules. Members also suspended Joint Rule 12 to allow several petitions to proceed, including proposals related to a poverty-reduction grant program, an unemployment insurance study commission, and a local police-exam age waiver. The House then took up a major energy bill, House No. 4744/5151, reported by Ways and Means and scheduled by Steering, Policy and Scheduling, and advanced it through second reading and to third reading after adopting the committee amendment. The main floor debate centered on the energy affordability, clean power, and economic competitiveness bill. Supporters argued it would lower rates through reforms to Mass Save, changes to procurement and interconnection, returning a share of alternative compliance payments to ratepayers, and other consumer protections, while preserving long-term clean energy goals. Opponents said the bill’s relief was too delayed and that it added costs and bureaucracy without immediate help for households facing high bills. Several amendments were offered and rejected, including proposals to suspend public benefit charges for a year, change utility rate-filing disclosure rules, and alter propane delivery protections; one amendment on solar siting in forested areas was also defeated. The House adopted a consolidated amendment to the energy bill by a roll call vote of 127-27, and earlier adopted the Ways and Means substitute version of the bill. The chamber also passed several other bills to be engrossed or enacted, including measures on unemployment insurance for fluctuating schedules, the Medical Society mission statement, a youth training wage, bridge and intersection designations, handicapped parking fines, public way safety, excavation restoration, and a Newton police age requirement. The House observed multiple moments of silence honoring deceased veterans, public servants, and community figures, including Navy Petty Officer Joden Booker, coach Thomas Skip Karam, former Police Chief Carlton Abbott, and former legislator William Q. Biff McLean, Jr.

Transcript Highlights:

• We'll move on to a panel, Jessica Trow and Adam Jones of the Mass Budget Policy Center.
• My name is Jessica Trow, and I'm the Deputy Director of Research and Policy Analysis at Mass Budget,
• We're going to welcome up Kiera Pontes-Battista from the Massachusetts Law Reform Institute.
• And I believe Clean Slate reform is a great tool that can help fight poverty.
• As a mother in shelter said, the first things that I cut for my budget are necessities for myself.

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

Transcript Highlights:

• budget is approximately $15.5 million.
• The budget shows four positions.
• The budget shows four positions.
• budget.
• We reduced our budget a bit.

Summary: The committee heard testimony from Insurance Commissioner DJ Bettencourt on the New Hampshire Insurance Department budget. He said the department is self-funded through assessments on insurers based on New Hampshire premium volume, with about $8 billion in premiums written in the state and a department budget of roughly $15.5 million. He explained that the department has 88 authorized positions, eight vacancies, and that three full-time positions were unfunded after the governor’s requested 4% reduction exercise. He also said the department is trying to balance staffing needs with not overburdening carriers during a hard insurance market. A major topic was the department’s $2.6 million rebate to industry from the prior fiscal year, which Bettencourt described as a credit against the next assessment rather than a direct cash payment. Members questioned why that credit was not reflected as a reduction in the upcoming budget, and Bettencourt and staff explained that the budget assumes full staffing and full spending, with any year-end surplus returned to insurers. The commissioner said the department had added staff in recent years for succession planning and to preserve institutional expertise, and that the rebate reflects careful budgeting rather than excess spending. Members also asked about staffing changes by division, including positions unfunded in fraud, property and casualty examinations, life and health examinations, and tax. Bettencourt said fraud investigations remain strong and that the department can use outside contractors for examinations, with those costs billed to the company being examined. He also described the department’s examination process, including periodic financial exams and targeted market conduct reviews triggered by consumer complaints or trends. Additional questions covered OIT transfers, the department’s oversight of fully insured health coverage, the insurance premium tax and fines going to the general fund, and the department’s limited role in auto repair reimbursement disputes, where he said complaints have recently declined.

Transcript Highlights:

• The governance discussion must happen together with these reforms.
• And that there be one building or campus within one school budget.
• of statewide education will the reform of statewide education will be. be. be.
• </c> together with these reforms. together with these reforms.
• </c> within one school budget. within one school budget.

Transcript Highlights:

• She said that if they are talking about judicial reform and the whole process of judicial selection,
• She said that if they are talking about judicial reform and the whole process of judicial selection,
• Would this be funded out of the elections budget?
• the Tals budget and the budget after that, it would make it for a very complex, what, a six to eight
• we're working on, the Tals budget and the budget after that, it would make it for a very complex, what

Transcript Highlights:

• I'm chair of our Special Committee on Regulatory Reform and have sort of been engaged in this area for
• Louisiana has a great opportunity to unleash economic growth through regulatory reform.
• Number four, institutionalize review via a one-in, one-out budget, or a one-in, two-out budget, or a
• That's where some of the reform is, how that's addressed.
• —also tend to be the goods that take up the lion's share of a low-income household budget.

Summary: The Special Committee on Regulatory Reform met as a study hearing with a quorum present but no plans to take votes. Chair Mark Wright opened by noting a draft resolution on regulatory reform and introducing Patrick McLaughlin of the Hoover Institution and Pacific Legal Foundation, who was invited to discuss his research on state regulatory accumulation and reform. McLaughlin described his method of measuring regulation through counts of binding terms like “shall” and “must,” and said Louisiana ranks among the most regulated states, with about 183,000 restrictions and faster-than-average growth in its regulatory stock. He argued that regulatory accumulation slows GDP growth, raises consumer prices, and disproportionately burdens small businesses and low-income households. McLaughlin pointed to reform models in British Columbia, Idaho, and Virginia, saying those states reduced regulations through centralized oversight, periodic review, simplified benefit-cost analysis, transparency tools, and AI-assisted comparison of rules across states. He said Virginia’s regulatory management office helped cut requirements and guidance, reduce licensing delays, and lower homebuilding costs, while similar reforms in Louisiana could produce significant economic gains. Committee members asked about the reliability of the research, the distinction between necessary and duplicative rules, the role of federal mandates, and how AI could help identify outdated or “gold-plated” regulations. McLaughlin said AI should assist human reviewers, not replace them, and emphasized that agencies need a process for reviewing old rules, not just issuing new ones. Members also discussed Louisiana’s own reform efforts, including LaDOGE, permit streamlining, and prior legislation creating public hearings and committee review of regulations. Chair Wright said he had filed a broader bill this session and was working with the administration on next steps. Representative Walters requested supporting data and examples from other states, and other members asked for practical comparisons, including how regulations affect housing, occupational licensing, and small businesses. The hearing ended without any votes or formal action.

Transcript Highlights:

• Bond is critical for providing the level of funding that just isn't possible through the budget.
• We could increase SB 2, recording fees, transfer tax, have a dedicated source from the budget.
• part, was HCD came to us this budget year and told us they're good on funding.
• What we've seen is a lot of reforms that allow more houses to seemingly be built, thank you.
• Like, for example, I mean, this committee will probably talk about, dare I say, Prop 13 reform.

Summary: The Assembly Select Committee on Housing Finance and Affordability held its first hearing of 2025 to examine California’s housing finance system, with opening remarks emphasizing the state’s severe housing shortage, high costs, and the need for practical recommendations to the Legislature and Governor. Co-chairs described the committee as an educational and problem-solving forum focused on financing housing production, first-time homeownership, mixed-income developments, and affordability across the income spectrum. Witnesses from state agencies and the development sector were invited to explain how housing is financed and where the system is breaking down. Panelists from the California Housing Partnership, the Business, Consumer Services and Housing Agency, the Tax Credit Allocation Committee/State Treasurer’s Office, CalHFA, and Related outlined the “capital stack” used to finance affordable housing, stressing that projects typically rely on multiple public and private sources, including federal and state low-income housing tax credits, tax-exempt bonds, state subsidies, local funds, and rental income. Speakers noted that affordable housing rents generally cannot support full project costs without public subsidy, and that recent federal changes—especially the expansion of the 4% and 9% tax credit programs and the reduction of the bond financing threshold for 4% credits—should allow California to finance substantially more units. CalHFA also described its homeownership programs, including My Home, Dream For All, and disaster-related mortgage assistance, as well as its multifamily lending and bond issuance programs. Several witnesses and committee members emphasized that the system remains too complex, too slow, and underfunded. They pointed to the need for more state funding, a housing bond, a permanent funding source, and better coordination among agencies, while also citing recent streamlining efforts such as AB 434’s SuperNOFA, AB 519’s one-stop-shop working group, and the planned California Housing and Homeless Agency reorganization. Members raised concerns about equity, access, missing-middle housing, gender and racial disparities, and whether current programs adequately serve extremely low-income households and those at risk of homelessness. No formal votes or actions were taken during the hearing; the discussion ended with committee members and witnesses agreeing that both funding and administrative reform are needed to increase production and improve affordability.

Transcript Highlights:

• They are eating away at our members' budgets and their profitability.
• That's what the budget is based on right now.
• I think the first one is that swipe fee reform will not jeopardize credit card rewards.
• Reform simply reins in these excessive fees.
• There are costs we have no control over, and it's very hard to budget.

Summary: The commission met for its second hearing to study the future of credit card payments and sales transactions and their impacts on small businesses. Members heard extensive testimony from credit unions, retailers, restaurants, and payment-industry representatives on interchange fees, processing fees, fraud, chargebacks, rewards programs, and the ability of businesses to pass fees on to customers. Several witnesses argued that swipe fees have risen sharply, are especially burdensome for restaurants and other small businesses, and are charged on taxes and tips that are merely pass-through amounts. They urged state action to prohibit fees on tax and tip portions, improve transparency, and allow surcharging or convenience fees, while opponents warned that state regulation could reduce fraud protections, increase compliance costs, and threaten consumer rewards programs. Business owners and trade groups described thin margins, rising costs, and the difficulty of understanding merchant statements or negotiating with processors. Restaurant witnesses said card-not-present and online transactions create the greatest fraud and chargeback risk, with money often removed immediately from merchants’ accounts and disputes rarely resolved in their favor. Retail witnesses gave examples of rising effective rates, higher fees on rewards cards, and the burden of processing fees on low-value transactions. A representative from the Massachusetts Restaurant Association and others said restaurants are effectively paying fees on meals tax and gratuities, which they argued should not be subject to interchange charges. On the other side, the Cooperative Credit Union Association said interchange revenue helps credit unions fund fraud prevention, rapid card replacement, and member protections, and warned that state limits on interchange could weaken those safeguards and lead to higher consumer costs or reduced services. Airlines for America testified that airline credit card rewards are popular, support travel and jobs in Massachusetts, and could be harmed by interchange reform. The National Restaurant Association and a payments-policy attorney countered that interchange fees are set by card networks rather than competitive markets, that banks remain highly profitable even with rewards, and that states can act after recent court decisions. No votes were taken; the hearing consisted of testimony and questions from commissioners.

Transcript Highlights:

• </c> If we were to create a state budget If we were to create a state budget based<00:04:40.960><c> on
• :07.039><c> the</c><00:08:07.199><c> horizon,</c> our budgeting going over the horizon, our budgeting
• There was a budget coming out of House Republicans and a budget coming out of me.
• </c> getting us a budget. Invest in research. getting us a budget. Invest in research.
• </c> uh putting out a budget here shortly. uh putting out a budget here shortly.

Transcript Highlights:

• And in the face of a structural budget deficit, as we've been talking about this week, of course, cuts
• deficit and the legislative budget plan proposes to underfund schools by $3.9 billion.
• The Legislature needs to look at all options to stabilize the budget and prevent cuts in the future.
• Association is a nonprofit association of labor, public health,... ...and the California Tax Reform
• , they may do things. ...disturbing, considering we know that when people are on a tight budget they

Committee: House Revenue and Taxation

Transcript Highlights:

• Senate Bill 1758 will enact five reforms.
• The fourth reform modernizes the Medicaid-prescribed drug services program.
• Maybe it needs vast reform. So let's do that properly. I beg of you on this committee.
• And I'm not saying that it can't be reformed.
• by Transportation and Economic Development Budget Subcommittee.

Bills: S0006 , S0026 , S0206 , S0532 , S0576 , S1012 , S1110 , S1178 , S1192 , S1758 , S1760 , S7046 , S7048

Committee: Senate Appropriations

Summary: The Appropriations Committee met and considered a large agenda of bills, reporting several measures favorably. Early action included SB 6, a settled claim bill involving the Department of Children and Families and the estate of Leila Estrada and Sapphire Williams, which was approved for $3.8 million. The committee also passed a cybersecurity internships bill creating a Department of Commerce program with Cyber Florida, and SB 532, which lets clerks of court retain the full amount of certain excess revenue and clarifies foreclosure-sale procedures. Veterans housing measures, CS for CS for SB 1602 and SB 1604, were approved to create a pilot program and a related trust fund for vacancy relief and risk mitigation for veteran housing. The committee also favorably reported SB 1110 on Medicaid and insurance coverage for orthotics and prosthetics, with emotional testimony from a student and family describing the high cost and importance of activity-specific prosthetics. Members also approved CS for CS for SB 1012 after adopting an amendment that removed inmate emergency and specialty medical service compensation provisions while retaining changes to the contractor-operated institutions inmate welfare trust fund. Another bill, CS for CS for SB 1614, was narrowed by a delete-all amendment to focus on limiting the use of excess fees for new building construction by local governments. All of these measures were reported favorably after brief debate, with some support testimony submitted in writing or waived. The most extensive discussion centered on CS for CS for SB 17, a major Medicaid and public assistance overhaul. The bill would create a Joint Legislative Committee on Medicaid Oversight, allow the Legislature to retain its own actuary, tighten Medicaid program oversight, update encounter-data reporting, set performance standards for managed care plans, revise pharmacy benefit manager rules, and require DCF to implement SNAP fraud-reduction and payment-accuracy reforms, including photo IDs on EBT cards and updated work requirements. It also would direct agencies to seek federal waivers for Medicaid work requirements for able-bodied adults and expanded behavioral health services. After lengthy questioning and testimony, the committee adopted amendments adding a transitional medical benefits glide path for people who gain employment and later lose Medicaid eligibility, and exempting hospice patients with six months or less to live. Supporters argued the bill would improve accountability, reduce fraud, and save money, while opponents warned it would create administrative burdens, increase paperwork, and cause eligible people to lose coverage or food assistance. The committee ultimately reported the bill favorably as amended.

Transcript Highlights:

• We have a presentation by ASCA discussing 2023's HB 837 relating to litigation reforms.
• I am also currently serving as chair of the Trial Court Budget Commission.
• House Bill 837 also made significant reforms to bad faith actions against insurers.
• I'm more of a numbers guy from the Trial Court Budget Commission and how we deal with that.
• They can emanate from budget issues that are part of our legislative budget request.

Committee: Senate Judiciary

Summary: The Judiciary Committee met with a quorum present and heard several Office of the State Courts Administrator presentations. Judge Mark Mahan discussed the impact of 2023’s HB 837 litigation reforms on court operations, explaining that the law’s changes to comparative negligence, filing deadlines, collateral source evidence, premises liability, bad faith claims, attorney’s fees, and offer-of-judgment rules triggered a major March 2023 civil filing surge. He described how filings tripled statewide, with especially large increases in auto negligence and premises liability cases, and outlined how circuits responded through active case management, added resources, and workflow changes. Members asked whether the bill’s immediate effective date contributed to the surge and whether clearance rates would normalize over time; Judge Mahan said the court system viewed its response as a success and expected rates to settle as the backlog is worked through. The committee then received a presentation on problem-solving courts from Jennifer Grandal and Judge Nina Richardson. Grandal reviewed Florida’s drug courts, mental health courts, veterans courts, dependency and early childhood courts, noting statewide best-practice standards, annual reporting requirements, funding sources, and data collection systems. Judge Richardson gave a local perspective on treatment courts, emphasizing that they address underlying mental health and substance use issues, rely on judicial supervision and sanctions as well as incentives, and help participants achieve recovery and avoid reoffending. She said the programs are accountable, transparent, and effective, and thanked the Legislature for continued support. Finally, Judge Rachel Nordby and Eric McClure outlined the judicial branch’s legislative agenda. Nordby summarized the Supreme Court workgroup’s recommendations to expand Florida’s vexatious litigant law, including broader coverage, fewer qualifying adverse cases, a longer lookback period, and a public records exemption for stricken defamatory or sham material. McClure then highlighted additional agenda items: modernizing the duty-judge statute, expanding senior management retirement eligibility, authorizing additional judgeships based on workload studies, removing the statutory cap on court-ordered nonbinding arbitration compensation, protecting appellate clerks’ personal information, allowing alternative authentication for certain judicial notarizations, and creating a hearsay exception for guardian ad litem reports and testimony. No votes were taken, and the committee adjourned after member introductions and staff introductions.

Transcript Highlights:

• And I obviously chair the Health Budget Subcommittee, And I obviously chair the Health Budget Subcommittee
• And I obviously chair the Health Budget Subcommittee, And I obviously chair the health budget subcommittee
• The second piece is to put the system on a budget. Every Californian is on a budget.
• Neither Californians' budget nor household budgets can afford to let health care costs continue to grow
• Neither Californians' budget nor household budgets can afford to let health care costs continue to grow

Summary: The joint informational hearing focused on the cost of uncertainty in California health care, especially the effects of federal policy changes on coverage, access, and affordability. Opening remarks from committee leaders and members emphasized that California’s uninsured rate had fallen to historic lows under the Affordable Care Act and state policies, but that the expiration of enhanced federal subsidies, H.R. 1, and other federal regulatory changes could reverse those gains. Members repeatedly cited rising premiums, skipped care, medical debt, and the strain on low-wage workers, families, clinics, hospitals, and public programs. The first panel reviewed the federal landscape and state response. A federal policy analyst described the ACA’s coverage gains and consumer protections, then outlined current threats: H.R. 1’s Medicaid and marketplace cuts, the end of enhanced premium tax credits, shorter open enrollment, more verification requirements, and changes affecting preventive services and vaccines. Covered California reported that the loss of subsidies is expected to nearly double average monthly premiums, reduce enrollment, and push more consumers into bronze plans with higher deductibles; it also noted that California’s $190 million affordability fund is helping the lowest-income enrollees. HCAI’s Office of Health Care Affordability explained its work on spending targets, market consolidation review, and primary care investment, saying the goal is to slow spending growth rather than impose price caps. Committee members pressed witnesses on the practical effects of bronze plans, administrative burdens, immigration-related disenrollment, provider taxes, uncompensated care, and whether California can sustain current coverage levels without new revenue. Witnesses said bronze plans preserve essential benefits but shift more costs to consumers, and that H.R. 1’s verification and auto-renewal changes will likely reduce enrollment. They also said provider tax reductions could significantly weaken state financing over time, and that higher uninsured rates may increase uncompensated care and pressure premiums elsewhere in the system. The second panel, featuring UC Berkeley Labor Center and California Health Care Foundation experts, highlighted broader affordability problems across job-based coverage and Medi-Cal, citing medical debt, skipped care, and the role of underlying system costs, administrative waste, and lack of competition. They pointed to medical debt relief efforts such as Los Angeles County’s program as a short-term mitigation strategy while the Legislature considers longer-term policy and budget responses.

Transcript Highlights:

• When we came into this, the chairman and I came in, we had a state budget of $28 billion, and we've just
• , this cap now is, we're at $50 billion plus in our last three budgets.
• I'm changed because I'm in budget right now. Yes. And so I'm looking through a different lens.
• For those, they're on the budget, we kind of say they're with us, but they're just part of the budget
• For those they're on the budget, we kind of say they're with us, but they're just part of the budget.

Committee: House Ways and Means

Summary: The committee first took up House Joint Resolution 169, which would cap spending growth and was described by supporters as a taxpayer protection measure. Representative Taylor opposed it, arguing the legislature was already considering too many tax-related measures at once and lacked a broader strategy. The sponsor said the resolution was about limiting spending, not taxes, and offered a committee substitute that added fees and surcharges into the baseline and addressed tax credits. After discussion, the substitute was adopted and the committee voted the House Committee Substitute for HJR 169 do pass, with Taylor and Strickler voting no. The committee then heard House Bill 2819, which would allow rounding of cash transactions now that pennies are no longer being produced. The sponsor explained a committee substitute added safe-harbor language to protect merchants from lawsuits over rounding errors. Members asked about the rounding rules and confirmed the bill remained permissive rather than mandatory. The committee adopted the substitute and then voted the House Committee Substitute for HB 2819 do pass unanimously. House Bill 2746, sponsored by Representative Williams, would create a property tax map feature on the Department of Revenue website showing current levies and assessed values to improve transparency. Supporters said it would help homeowners compare assessments and understand property tax differences, while opponents and agency witnesses raised concerns about the large startup cost, estimated at about $7 million, the need to gather data from many counties, and the fact that some counties already provide similar information. The Department of Revenue and State Tax Commission witnesses said the data would be difficult to compile statewide and that local participation and data standards vary widely. The bill was heard, but no vote was taken in the transcript. Finally, the committee heard House Bill 2329, which would gradually reduce the assessment ratio for personal property from about 33 1/3% to 18% over three years. The sponsor argued the tax is burdensome, especially for working families and businesses, and said it would encourage a broader shift away from personal property taxation. Supporters echoed that it is a highly visible and unpopular tax. Opponents, including a county assessor, warned the bill would sharply reduce local tax bases, especially in rural counties, and likely force levy increases on real property or cuts to schools and other districts. The hearing ended without a committee vote on HB 2329.

Transcript Highlights:

• staff layoffs, furloughs, downscaling or elimination of programs and services, and an inability to budget
• In the near term, this could include common-sense reforms to state grant making and contracting with
• In the near turn, this could include common sense reforms to state grant making and contracting with
• thin. and of goods, services, and program delivery, stretching our budgets thin.
• We have a tough state budget this year, there's going to be a tough state budget next year, and 2027

Summary: The joint Senate and Assembly select committee hearing focused on the challenges facing California nonprofits in 2025 and possible state responses. Opening remarks emphasized the sector’s size and importance, the impact of federal funding disruptions and tax policy changes, and the need for stronger public-private partnerships, especially in disaster response and recovery. Witnesses from community foundations, food banks, Cal OES, long-term recovery groups, CalNonprofits, and nonprofit finance organizations described funding uncertainty, delayed reimbursements, reduced indirect cost coverage, staffing strain, and the effects of climate disasters and immigration-related fear on service delivery. Testimony highlighted several policy ideas, including advance payments for state grants and contracts, prompt payment standards, sustainable indirect cost rates, contract flexibility in emergencies, streamlined registration and reporting, and a possible new Office of Nonprofit Empowerment to serve as a central point of contact and coordination within state government. Speakers also described how nonprofits and VOAD networks support wildfire response and long-term recovery, but noted that recovery groups often lack stable operating funding even when they are recognized as best practice. A food bank leader described federal food aid cuts and disruptions to deliveries, while other witnesses stressed that nonprofits are increasingly forced to use reserves, loans, or service reductions to manage cash flow gaps. Committee members generally expressed support for the sector and asked how the state could better partner with nonprofits during both disasters and budget crises. Several members raised the possibility of incremental steps if full legislative changes are not immediately feasible, and witnesses suggested pilots, better sharing of best practices, and stronger state leadership on payment timelines. Public commenters echoed the need for better contracting practices, support for community-based organizations, and attention to nonprofit worker compensation and protections. No formal votes or committee actions were taken in the hearing, which concluded with adjournment.

Transcript Highlights:

• staff layoffs, furloughs, downscaling or elimination of programs and services, and an inability to budget
• In the near turn, this could include common sense reforms to state grant making and contracting with
• thin. and of goods, services, and program delivery, stretching our budgets thin.
• We have a tough state budget this year.
• There's going to be a tough state budget next year, probably 2027 may not be even better.

Summary: The joint Senate and Assembly Select Committee hearing focused on the nonprofit sector’s mounting challenges in 2025 and possible state responses. Opening remarks emphasized the sector’s size and importance in California, the impact of federal funding disruptions and new federal tax policy, and the need for stronger public-private coordination, especially during disasters. Witnesses and members repeatedly pointed to nonprofits as essential providers of food, housing, health, education, environmental, and emergency services, while warning that sudden funding losses are forcing layoffs, service cuts, and operational instability. Testimony from community foundations and food bank leaders described how federal cuts, delayed reimbursements, and disaster-related demand are straining nonprofits. Monica White of Food Share Ventura County said H.R. 1 and USDA food cancellations are worsening hunger needs, while immigration enforcement fears are keeping some families from seeking help. Abby Browning of Cal OES outlined how the state coordinates with nonprofits, philanthropy, and businesses through VOADs and long-term recovery groups in wildfire response. Bruce Yerman of the Camp Fire Collaborative said recovery groups are effective but lack dedicated funding, and urged flexible spending, sustainable support, and streamlined partnerships. The second half of the hearing focused on institutional reforms, including a proposed Office of Nonprofit Empowerment, advance payments, prompt payment, and higher indirect cost coverage. Jeff Green of CalNonprofits argued for a central state office to coordinate policy, technical assistance, and interagency alignment. Annie Chang of Nonprofit Finance Fund cited survey data showing widespread late payments, low cash reserves, and indirect cost rates below federal guidance. Alfredo Cruz Jr. of Community Resource Project described how reimbursement-only contracts, delayed payments, and underfunded overhead create cash-flow crises and staffing problems. Members discussed possible interim steps, including expanding advance pay, improving payment timeliness, modeling best practices, and using state leadership to spotlight nonprofit needs. The hearing ended with public comment from nonprofit, labor, and advocacy representatives, and no votes or formal actions were taken.

Transcript Highlights:

• And I obviously chair the Health Budget Subcommittee, And I obviously chair the health budget subcommittee
• The Congressional Budget Office estimates 10 million.
• The second piece is to put the system on a budget. Every Californian is on a budget.
• That is a budget for the entirety of the system.
• Neither Californians' budgets nor household budgets can afford to let health care costs continue to grow

Summary: The joint informational hearing of the Senate and Assembly Health Committees focused on the cost of federal instability for California health coverage, access, and affordability. Opening remarks from members of both houses emphasized that California’s coverage gains under the Affordable Care Act are now threatened by federal policy changes, including the expiration of enhanced premium tax credits, H.R. 1, and new federal regulatory actions. Members repeatedly cited rising premiums, skipped care, medical debt, and the risk that low-income, immigrant, and working Californians could lose coverage or be pushed into less comprehensive plans. The first panel reviewed the federal landscape and state response. Don Joyce described the ACA’s coverage expansions and warned that H.R. 1, regulatory changes, and broader federal retrenchment could reduce coverage and weaken meaningful benefits. Covered California Executive Director Jessica Altman said the loss of enhanced premium tax credits is driving major affordability problems, with average monthly premiums projected to rise sharply and enrollment already down, especially among middle-income consumers. HCAI’s Elizabeth Lansberg explained the Office of Health Care Affordability’s role in slowing spending growth, monitoring consolidation, and setting spending targets, including lower targets for high-cost hospitals and new primary care investment goals. Members asked about bronze plans, high-cost hospitals, administrative burdens, provider taxes, and whether federal advisory changes could affect required benefits such as immunizations. The second panel examined population impacts and cost drivers. UC Berkeley Labor Center’s Miranda Dietz said most Californians get coverage through employers, Medi-Cal, or Covered California, and that affordability problems are widespread across all groups. She projected that California could have up to 2 million more uninsured residents by 2030, largely from Medi-Cal losses, and said higher premiums reduce wages and increase medical debt. Christoph Stremakis of the California Health Care Foundation highlighted survey data showing widespread concern about medical bills, skipped care, and medical debt, and argued that a large share of spending is wasted through administrative complexity, inflated prices, and underinvestment in prevention. Committee members pressed the panel on whether California can sustain coverage without new revenue, how cost-growth targets affect workers and families, how medical debt relief programs like Los Angeles County’s could be expanded, and how OCA can address uncompensated care, consolidation, and prior authorization burdens.

Transcript Highlights:

• will it the inspection stickers how will that affect your budget will it affect your budget well it
• Since the majority of the budget units have similar functions, the right portion divides the budget by
• Since the majority of the budget units have similar functions, the right portion divides the budget by
• Please, let's focus on budget questions that are specific to the budget of the entity as best we can.
• Is that anywhere in your budget?

Committee: House Appropriations

Summary: The committee heard FY27 budget presentations for the Department of Public Safety and Corrections, beginning with Public Safety Services. House Fiscal Division staff reviewed the department’s recommended budget of $645.9 million, including supplemental pay, State Police, Motor Vehicles, and the State Fire Marshal. Officials explained that the overall budget reflects a net decrease from FY26, driven largely by shifts in funding sources, removal of one-time statutory dedications, and adjustments tied to undercollections in fees and self-generated revenues. State Police was recommended at $459.7 million, OMV at $86.7 million, and the Fire Marshal at $41.1 million. Department leaders also described ongoing modernization efforts, staffing vacancies, and the use of efficiencies identified internally. Lieutenant Colonel Robert Burns and agency heads testified about State Police operations, including increased cadet graduations, improved Mardi Gras security, progress on APHIS and OMV modernization, and the new crime lab under construction. Members asked about undercollections, vacancies, the role of public tag agents, and whether the agency could expand counter-drone capabilities. Burns said the department has identified about $11 million in efficiencies, but warned that counter-drone work would require additional funding, citing a $4.5 million fiscal note for HB 940 and roughly $9 million more for a robust unit. OMV officials said staffing and retention remain difficult, but modernization should improve service and reduce lines; they also said the agency continues to rely on public tag agents and is working through reinstatement fee collection issues. The committee then reviewed the Department of Corrections FY27 budget, recommended at $902.3 million, with most funding from State General Fund and a large increase tied to higher incarceration costs, medical needs, overtime, and added capacity at Louisiana State Penitentiary. DOC officials said the department remains under pressure from vacancies, turnover, contraband, and medical costs, and that the budget includes funding to add 150 correctional officers at Angola and to house ICE detainees at Camp J. They also discussed criminal justice reinvestment savings, prison enterprises, and reentry programs funded through the Second Chance Act. Members asked about staffing, inmate deaths at Elaine Hunt, work-release pay, and whether the department is tracking the true long-term cost of incarceration. Officials said they are pursuing pay increases, recruitment, expanded training and reentry programs, and more data-driven workforce alignment, while acknowledging that many budget pressures remain unresolved.