Transcript Highlights:

• There is something about government efficiencies here.
• I forget what it all stands for, but she's going to look into efficiencies.
• And both members talked about efficiencies.
• But it forces them to use the properties efficiently. ...more money in.
• Efficiency is not... ...in competition with Texas and Florida. Efficiency is not immoral.

Keywords: 1182, all

Transcript Highlights:

• We're sort of seeking additional contract supports to help us think through operational efficiencies.
• Of course, it's good for us to be looking for efficiencies; that's something government should do.
• This is an automation effort within CalSAWS and seeks to improve efficiency at the eligibility worker
• Related to CalWORKs, we definitely appreciate the efficiency.
• We appreciate the efficiencies, the low-cost and no-cost proposals that are put forth.

Summary: The hearing began with opening remarks on the Governor’s May Revision for child care and human services, with committee members and advocates stressing that the budget should not be balanced on the backs of low-income families, children, and providers. Legislative members and public witnesses strongly opposed the proposed suspension of the child care COLA, reductions to the Emergency Child Care Bridge Program, and the lack of codified rate reform tied to the alternative methodology. Several speakers also urged more support for providers affected by the Eaton fire and other disasters, and called for child care to be funded at the true cost of care and for additional slots to be restored. Administration, LAO, and Department of Education staff described the child care proposal as maintaining existing funding levels while adding administrative resources to prepare for federally required prospective payment changes and single-rate reform. The administration said the May Revision would suspend the 2025–26 COLA and reduce Bridge Program funding to align with utilization, while the LAO raised questions about the size and purpose of the proposed rate-reform and prospective-payment funding and recommended rejecting a Department of Technology exemption. CDE supported continued early education investments but said it would need additional resources if prospective pay were extended to state preschool, and it objected to a proposed reallocation of preschool funds for inclusive education grants. The committee then moved to the IHSS portion of the May Revision. DSS outlined five major proposals: capping provider work hours at 50 per week, eliminating IHSS for undocumented adults age 19 and older, shifting certain Community First Choice reassessment penalties to counties, reinstating the Medi-Cal asset test as a conforming IHSS reduction, and automating the termination of IHSS when Medi-Cal eligibility ends. DSS also discussed funding to implement a federal HCBS access rule and a separate reassessment of IHSS administrative methodology that found counties would need additional administrative funding. Finance said the proposals were intended to slow program growth and improve sustainability, while the LAO said it was still analyzing the package and raised concerns about implementation, county workload, and the potential loss of services. Committee members and public commenters criticized the IHSS cuts, especially the overtime cap and the elimination of services for undocumented adults and people affected by the asset test. Advocates argued that IHSS workers and recipients depend on these services, that county administration is already underfunded, and that the proposals could destabilize vulnerable consumers. The chair closed by saying the committee would continue to fight for child care and would not pause on child care, and the meeting recessed before moving on to the remaining May Revision items.

Transcript Highlights:

• bringing into the process relevant stakeholders to look at savings that might be realized and efficiencies
• <00:53:17.599> Thank and efficiencies realized. Okay. Thank and efficiencies realized.
• c><01:11:01.600> improving or a possibility for improving or a possibility for improving efficiency
• 04.080> respect<01:11:04.560> to<01:11:05.360> um<01:11:05.840> the efficiency
• with respect to um the efficiency with respect to um the matters<01:11:06.400> that<01:11:06.640

Keywords: 1191, senate, all

Transcript Highlights:

• by electricity was balanced out by increases<00:09:25.920> in<00:09:26.320> efficiency.
• We may be increases in efficiency.
• <00:10:26.320> and That's mostly because of efficiency and That's mostly because of efficiency
• needs and deploying energy efficiency needs and deploying energy efficiency demand<00:49:03.599>
• and other means. energy efficiency and other means.

Keywords: 1183, house

Transcript Highlights:

• um I think and how it works efficiently um I think the<00:27:39.320> unique<00:27:40.080>
• This is good. the coordination the efficiencies the the coordination the efficiencies the innovations
• We can also accommodate the efficiencies there as well.
• This is a matter of efficiency.
• Prioritize efficiency and ease and how we get our services to our neighbors.

Bills: HF1837, HF361, HF2725, HF2566, HF2744, HF1685, HF501, HF1889, HF1389

Keywords: state policy, employment, health insurance, fossil designation, public funds, community resources, Capitol Mall, grantmaking, community vitality, livability, funding, healthy aging, aging policy, older adults, seniors, elderly, gerontology, long-term care, assisted living, nursing homes

Transcript Highlights:

• HMOs will streamline, clarify, and enhance private insurance coverage oversight to create a more efficient
• There are efficiencies to be gained by the consolidation.
• when motor ... administrative and compliance, complexity within shirt for insurers, the on the efficiencies
• This process is designed to provide a fair and efficient path to dispute resolution without immediately
• If we have more time to resolve the losses, we're able to use this much cheaper, quick, and efficient

Bills: HF4881, HF4867, HF4422, HF4223

Keywords: healthcare, insurance, regulation, financial institutions, prescription drug affordability, consumer protection, restitution account, financial compensation, attorney general, distributions, property insurance, homeowners insurance, fire and allied lines, hail insurance, appraisal clause, loss adjustment, alternative dispute resolution, insurance claims, claim valuation, actual cash value

Transcript Highlights:

• Does the committee substitute provide the agency with a more efficient way to operate the TERP program
• legislature, in its wisdom some time ago, combined those, and it did consolidate and make it more efficient
• legislature and its wisdom some time ago combined those, and it did consolidate and make it more efficient
• As we've heard, the bill is just making efficiency upgrades by consolidating some of the programs.
• franchise fees and opening up options for waste management providers, this bill will create a more efficient

Summary: The committee first heard House Bill 1904, which would classify intentionally released helium balloons as litter and create criminal penalties for balloon releases. The author and supportive witnesses argued that balloon releases harm wildlife, livestock, waterways, and infrastructure, and that the bill would close a loophole in current litter law. Several members questioned whether criminal penalties were appropriate, and the author said he was willing to work toward civil penalties and fines instead. No vote was taken, and HB 1904 was left pending. The committee then took up several pending bills and reported them favorably to the full House, including HB 3249, HB 3866, HB 4112, HB 1768, HB 1499, HB 573, and HB 464. These measures dealt with topics such as TCEQ contested-case procedures, outdoor storage containers, high-level radioactive waste, concrete plant permitting and grants, unannounced concrete batch plant inspections, and a scrap tire grant program. Most were adopted with substitutes and passed on recorded votes, generally with unanimous or near-unanimous support. A major portion of the meeting focused on HB 3997, which would create expedited permitting timelines for LNG facilities and related wastewater permits. Industry witnesses said the bill would provide certainty for multibillion-dollar projects without eliminating public participation, while environmental groups opposed parts of the bill that they said could limit contested-case participation and be unrealistic for SOAH timelines. TCEQ staff described the current wastewater permitting process and said some of the bill’s timing provisions could be workable, especially with an expedited fee. The bill was left pending after the author said he would continue working on committee substitute language. The committee also heard HB 1237 on extending the renewal window for expired TCEQ occupational water licenses, and HB 4519, a TERP consolidation bill that would combine several clean transportation grant programs into fewer programs. HB 1237 was left pending without testimony, while HB 4519 drew broad support from environmental and industry witnesses who favored simplifying the program, though some asked for stronger emphasis on particulate matter and hydrogen funding. The committee withdrew the substitute on HB 4519 and left it pending. Finally, HB 5033, which would eliminate the motor vehicle emissions inspection and maintenance program if federal authority changes, drew opposition from environmental and inspection-industry witnesses who warned it would weaken air-quality protections and could remove an important enforcement tool. The author said the bill was intended as a trigger mechanism and would be refined, and HB 5033 was left pending. The committee also heard HB 1227 on municipal solid-waste franchise fees and private-provider access; the author said he would bring a substitute after hearing concerns from cities, and the bill was left pending.

Transcript Highlights:

• These four programs are first, $37.6 million for the State Water Efficiency and Enhancement Program,
• We've been putting in purple pipe, helping with water efficiency so that those can function better.
• Helping with water efficiency so that those can function better and longer throughout the season.
• Third, we think this exemption could create some efficiencies.
• In other words, let's get the efficiency that you're looking for and still make sure that we get, you

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

Transcript Highlights:

• “This project will provide a new, more user-friendly and efficient online filing system that enables
• data is still being key stroked in 118 this project will provide a new, a more user friendly and efficient
• Adding this additional fleet manager will provide greater efficiency in the management of the fleet and
• when we read the language, we realized that we needed to add some positions to successfully and efficiently
• we read the language, we realized that we 512 needed to add some positions to successfully and efficiently

Summary: The committee met with a quorum present to hear Article VI Natural Resources agency budget recommendations, beginning with the Railroad Commission. LBB staff summarized the commission’s 2026-27 base recommendation at $458.7 million, down from the prior biennium, with an increased FTE cap. The presentation highlighted reduced federal IIJA funding, volatility in oil and gas regulation account 5155, continued support for IT modernization, and rider changes. The commission’s major exceptional items were then presented, including requests for produced water and injection data reporting, an authorized pit registration system, regulatory filing/permitting upgrades, an underground injection well investigation team, site remediation support, and especially $100 million for orphan well plugging. Members asked about biennium-to-biennium comparisons, salary biennialization, the scale of orphan well risks, federal funding delays, bonding, and whether the state should rely more on industry or general revenue for plugging costs. Commission leadership explained that orphan wells can threaten water and public safety, that plugging costs have risen sharply, and that current funding is insufficient to keep up with emergency wells and the backlog; they also said the agency is moving to cloud-based systems with cybersecurity protections and that the proposed performance measure may need adjustment if funding does not increase. The Railroad Commission testimony was followed by LBB and agency testimony for the Texas Animal Health Commission. LBB described a $42 million recommendation for 2026-27, an increase overall, but with a reduced FTE cap due to turnover and salary reallocation. The recommendation maintained funding for cattle fever tick work, chronic wasting disease, lab testing through an MOU with Texas A&M’s veterinary diagnostic lab, and a new $5 million spay-and-neuter pilot program, while deleting a capital budget rider and adjusting riders tied to entry point inspection stations and clinical trials. Agency leadership then outlined the commission’s mission to protect livestock health and the state’s $22 billion animal industry, and described major disease threats including highly pathogenic avian influenza, cattle fever ticks, New World screwworm, and chronic wasting disease. Their exceptional items focused on recruiting and retaining veterinarians, replacing fleet vehicles, creating an ectoparasite identification lab, adding field staff and IT support, improving records and epidemiology reporting, strengthening central administration, supporting secure food supply planning, expanding chronic wasting disease work, and staffing the new spay-and-neuter program. Members asked about field identification of ticks, the use of disinfectants and PPE, fleet management, the scale of cattle fever tick risk, and chronic wasting disease; the agency explained its current inspection and lab-confirmation process, its reliance on field disinfecting and biosecurity, and the need for more staff and better data systems to keep pace with growing workloads and disease threats.

Transcript Highlights:

• As many people have stated, fuel-efficient vehicles are growing more fuel efficient over time, and the
• That's the top end of our fuel efficiency fee; that's our electric vehicles.
• <01:09:56.640> Uh, efficiency is our electric vehicles.
• Uh, efficiency is our electric vehicles.
• Right now they are looking into fuel-efficient vehicles and an electric vehicle.

Keywords: 1183, house

Transcript Highlights:

• I think that the most efficient way that we can create pricing efficiencies for the HHF to best utilize
• I think that the most efficient way that we can create pricing efficiencies for the HHF to best utilize
• I think that the most efficient way that we can create pricing efficiencies for the HHF to best utilize
• I think that the most efficient way that we can create pricing efficiencies for the HHF to best utilize
• I think that the most efficient way that we can create pricing efficiencies for the HHF to best utilize

Keywords: 910, house, all

Transcript Highlights:

• activities to define comprehensive requirements for replacing EPIC with a modernized, secure, and efficient
• Automation system and a unified, scalable data architecture to support regulatory efficiency, data-driven
• That it's going to make our permitting and regulation process more efficient, and it is distinct from
• The objective is to enhance public safety and improve the efficiency of law enforcement operations by
• The objective is to enhance public safety and improve the efficiency of law enforcement operations by

Keywords: 996, all

Summary: The meeting began as an informal education budget work group focused on reviewing a revised House Appropriations and Finance Committee scenario and flagging concerns rather than taking votes. Staff outlined the main changes from the LFC recommendation, including moving the statewide student information system appropriation, adding funding for the Black, Bilingual, Multicultural and Hispanic Education Act, universal school meals overrun costs, an evidence-based CTE pilot with a 50% local match, STEM network funding, wellness room pilots, Martinez-Yazzie action plan items, and changes to innovation zone and out-of-school time appropriations. A separate handout on the seven-year CTE pilot explained spending patterns, reversions, and possible federal maintenance-of-effort concerns if the state continues funding beyond a true pilot. Members then debated CTE extensively, with several arguing it improves attendance, graduation, and career readiness and should be sustained or expanded, especially in rural areas, while staff and others emphasized that much of the current funding has gone to general operational costs rather than intentional program design and that regional or matched funding models may be more effective. Members also discussed STEM and math initiatives, the need for more industry involvement, and whether the proposed match requirements would be too burdensome for smaller districts and BIE schools. The discussion also covered the Black, Hispanic, and Multilingual Education Acts and the Martinez-Yazzie lawsuit. Some members stressed that the acts should be explicitly named in the budget language and not merely implied, while staff said the scenario reaffirms prior commitments by building the costs into agency operating budgets. Members raised concerns about charter school hold-harmless funding, declining enrollment, and the need to align spending with the needs of at-risk students. The work group ended the education portion without any votes, with staff noting they would incorporate the feedback and return with clarifications, including on CTE funding, the educational acts, and the charter hold-harmless item. The meeting then shifted to the child well-being and early childhood work group, where staff presented a revised Early Childhood Education and Care Department scenario. The proposal moved money toward child care assistance and early pre-K, kept the FIT program funding level unchanged, and used a mix of trust fund, TANF, federal, and operating-budget adjustments to close part of the gap between the executive and LFC recommendations. Members questioned the policy direction, especially the shift toward infant and toddler care and pre-K expansion, the impact on school-age child care, and the implications for continuity of care and provider costs. Staff explained that the scenario prioritizes younger children and at-risk families, includes language for a wage and career ladder, and would require legislation to raise the early childhood trust fund distribution cap from 500 to 525. Members also discussed a separate proposed CYFD pilot bill (HB 65), which would be distinct from ECECD funding. No votes were taken, and staff said they would return with more cost information on full pre-K plus wraparound care. A final work group reviewed C2 and Department of Information Technology-related appropriations. Staff compared the LFC and executive recommendations for new funding and reauthorizations, noting that the LFC generally limited new projects while the executive funded more. Members discussed several IT modernization requests, including the Secretary of State’s voter registration and election management systems, the Spaceport Authority, Game and Fish, the State Engineer’s WATERS system, ECECD’s FitKids and EPIC replacement discovery, and Aging and Long-Term Services’ enterprise system modernization. The main themes were whether to fund planning versus full replacement, how to avoid piecemeal spending, and whether new systems should wait for incoming leadership. The Secretary of State’s office said its system is nearing end of life and the planning funds would help prepare a realistic replacement request, while other agencies described aging infrastructure, cybersecurity risks, and the need for modernization. The work group did not vote on any of the items and ended with staff noting additional follow-up on funding needs and reauthorization details.

Transcript Highlights:

• Yeah, it's a lot of it comes down to efficiency, making sure there's a system to bring in plans, get
• them reviewed quickly, get them out the door, and get everything communicated quickly and efficiently
• So those are ways it all comes down to efficiency and bringing it through the system and not getting
• Yeah, it's a lot of it comes down to efficiency, making sure there's a system to bring in plans, get
• them reviewed quickly, get them out the door, and get everything communicated quickly and efficiently

Keywords: 958, all

Summary: The committee first heard a presentation from Northern Kentucky building industry representatives Brian Miller and Matt Mains on housing affordability and construction workforce issues. They argued that regulatory and code requirements add significant cost to new homes, citing an estimate of nearly $94,000 per home nationally and $15,000 to $20,000 per home in Boone County over the past decade. They recommended reforms to building code adoption, architectural design mandates, permit fees and delays, and setback/land dedication rules, saying these changes could reduce costs by $25,000 to $35,000 per home without affecting public safety. They also discussed workforce training efforts through the Enzwe Building Institute, dual-credit programs, apprenticeship incentives, and workforce grants, saying these efforts have helped hold wage growth below regional trends and improve housing affordability. Committee members asked about the breakdown of regulatory costs, the effect of energy codes, and ways to speed up permitting. The presenters said the costs were roughly split among federal, state, and local requirements, with local regulations adding about $25,000 to $35,000 and some energy-code changes adding about $19,000 per home. They said faster plan review, coordination with the Kentucky Division of Water, and addressing municipal staffing shortages could cut 30 to 45 days from approvals. Members also discussed the difficulty of building starter homes under about $350,000 and the need for more missing-middle housing, with the presenters saying such homes are hard to produce without sacrificing quality. The committee then took up Representative Kim Moer and Dr. Dale Bertram’s discussion of marriage and family therapist licensing and healthcare workforce data reporting. They explained that the bill would allow Kentucky to recognize out-of-state marriage and family therapists who meet licensure requirements, have no disciplinary history, and have passed the national exam, in order to reduce barriers and address provider shortages, especially in rural areas. They also described a separate workforce data reporting section that would require licensure boards to collect consistent information on where licensees practice and whether they are actively seeing patients, including through telehealth, so the state can better understand its healthcare workforce. Members supported the portability idea, noted that some qualified applicants are currently working in Indiana instead of Kentucky, and asked whether the data collection could be handled administratively; the sponsors said the bill would create consistency across boards. The committee also briefly discussed occupational board updates and the need for stronger communication between legislators and licensing boards, including architecture licensure issues and efforts to recruit more professionals.

Transcript Highlights:

• The other thing I think we should have bipartisan consensus on that has been building is efficiency.
• Efficiency is one of the best things.
• So, we were able to update that commission and make sure that it can run more efficiently.
• We owe them a government that's efficient, targeted, and results-driven.
• I want government to be efficient.

Transcript Highlights:

• person, so I I'm a bit of an efficiency person, so I said,<00:20:27.760> oh,<00:20:27.880>
• economically efficient. economically efficient.
• <01:06:04.960> low degrade at a very low efficiency low degrade at a very low efficiency low
• efficiency<01:06:05.760> in<01:06:05.880> the<01:06:05.960> sense<01:06:06.240>
• that<01:06:06.480> in<01:06:06.680> 25<01:06:07.240> years efficiency in

Keywords: 1191, senate, all

Transcript Highlights:

• combination together create efficiencies combination together create efficiencies in<00:23:58.080
• redundancies and look for efficiencies redundancies and look for efficiencies there<00:24:10.000
• with this new unit we have efficiencies with this new unit we have 150<00:25:11.240> plus<00:
• So that would be the ask from there, and then we'll always look for efficiencies in the process, and
• resources together you gain efficiencies resources together you gain efficiencies by<01:12:50.639

Keywords: 1187, senate, all

Transcript Highlights:

• , hope to create a more efficient, hope to create a more efficient, predictable<03:58:00.800>
• as we possibly this program as efficient as we possibly can<04:15:22.239> given<04:15:22.640>
• Please, we're trying to do the right thing for all of you to make this as efficient as possible.
• <04:42:28.878> you<04:42:29.120> could efficiencies, which I guess you could efficiencies
• <04:42:53.040> and that is much more efficient and that is much more efficient and cost-effective

Keywords: 981, all

Summary: The House opened with a quorum call, a Pledge of Allegiance, and approval of the prior day’s journal in a lighthearted exchange honoring Representative Bacon’s father. Members then announced upcoming committee meetings, including State, Civic, Military, and Veterans Affairs; Finance; and Appropriations. The chamber moved into third reading and took up a series of bills, with several laid over or moved on the calendar before votes began. The House adopted House Bill 1433 on firefighter behavioral health benefits, House Bill 1416 on transfers from the Universal High School Scholarship Cash Fund, and House Bill 1431 on occupational licensure portability. It also adopted House Bill 1426, a Department of Law report bill, after a technical third-reading amendment correcting numbering errors. House Bill 1063, requiring an accessible list of secure transportation providers on certain department websites, also passed. In addition, the chamber adopted Senate Bill 172 on the Front Range Passenger Rail District, Senate Bill 93 on workers’ compensation coverage compliance, Senate Bill 175 on experience modification factors in workers’ compensation, Senate Bill 131 on abusive practices in sports betting, Senate Bill 165 on species conservation funding, Senate Bill 157 on a town with critical water infrastructure, Senate Bill 154 on Colorado Channel Authority Board appointments, and House Bill 1286 requiring a human present when an automated driving system operates a commercial motor vehicle. House Bill 1422, concerning security measures for certain governmental entities, drew the most extended debate. Representative Luck opposed it, citing concerns about creating a legislative police force, language affecting online speech and constituent conduct, and what she described as a workaround for TABOR. Representative Clifford explained the bill’s security provisions and sought a technical amendment to address local records language; the amendment and the bill both passed, though with notable opposition. House Bill 1424, increasing protections for persons engaged with transportation network companies, also prompted extensive testimony from Representative Wilford, who described her own assault by a rideshare driver and argued that Uber and Lyft have minimized and obscured sexual assault data while failing to protect riders; after a technical amendment, the bill passed. The House then continued with additional third-reading votes, including House Bill 1325 on natural medicine, which passed despite some opposition.

Transcript Highlights:

• in developing the associated trailer bill language to ensure that the processes set in place are efficient
• This platform will create an efficient, effective, and secure GenAI environment for state departments
• This platform will create an efficient, effective, and secure GenAI environment for state departments
• This platform will create an efficient, effective, and secure GenAI environment for state departments
• We as a department are always aware of looking for those opportunities and efficiencies, and that is

Keywords: 987, senate, all

Summary: The subcommittee heard several May Revision proposals, primarily from the Department of Food and Agriculture, the Government Operations Agency, the Department of Technology, and the Franchise Tax Board. CDFA presented funding for the animal care program under Proposition 12, a transition away from the state hemp program to USDA oversight by January 1, 2028, ongoing support for agricultural statistics reporting after USDA reorganization, and trailer bill changes to the department’s indirect cost cap. The LAO generally supported the animal care, hemp transition, and statistics proposals, while also urging future review of the Prop 12 funding once litigation is resolved. The indirect-cost-cap language was described as technical and not increasing charges to programs, and it was held open with no objections from the LAO or Finance. The committee also discussed the new federal Workforce Pell program and related Cradle to Career funding and trailer bill language. Finance said the state is still reviewing federal rules and is focusing on basic implementation steps, with the trailer bill assigning eligibility determinations to the California Student Aid Commission, requiring data sharing through Cradle to Career, and prioritizing public institutions first. The LAO urged caution because the federal rules were just finalized and said the Legislature should better define the process and costs before appropriating the $1.3 million requested for Cradle to Career. Members raised policy concerns about limiting the program to certain institutions and about aligning the proposal with pending legislation and broader workforce policy. The Department of Technology presented a $1 million request for Poppy, the state’s digital assistant, to expand a secure GenAI platform for state employees. Members asked detailed questions about data security, model training, bias controls, and whether the system could eventually support local governments; CDT said the system uses state-controlled cloud infrastructure, does not use user data for training, and quarantines new models for review. CDT also sought provisional authority for the Middle Mile Broadband Initiative to cover possible operating shortfalls while the network is still being built; the LAO remained concerned about broad spending authority, and several members questioned the revenue assumptions and oversight. FTB then proposed retaining a smaller set of CalFile resources after the federal Direct File program was discontinued, with the LAO saying the reduced staffing level was broadly reasonable but still worth legislative scrutiny. The committee also began hearing the administration’s revenue proposals, including a permanent limitation on business tax credits and a tax on electronically delivered prewritten software, with the LAO generally supporting the goal of raising ongoing revenue but recommending changes to the software proposal’s exemptions and business-use treatment.

Transcript Highlights:

• Just trying to see if combining resources would add more efficiencies.
• But if trying to look for efficiencies is going to cloud everything, then maybe.
• least focus on efficiencies as part of analyzing the impacts.
• Okay, how does that sound, including efficiencies?
• Okay, so analysis of fiscal impacts and efficiencies. Okay. All right.

Keywords: 908, all

Transcript Highlights:

• It's how do we best serve that student in the most efficient way possible and do so in a way that is
• I think it would help the state to be more efficient and thoughtful in the programs that we administer
• We have created efficiencies, and the cost per student has been reduced since year one, when the program
• We have created efficiencies and the cost per student has been reduced since year one when the program
• As improving efficiency and reducing redundancy in regional coordination.

Summary: The Assembly Budget Subcommittee on Education Finance heard an overview of the governor’s new Career Education Master Plan and related budget items. Labor Secretary Knox described the plan as an effort to reduce fragmentation across K-12, community colleges, workforce boards, and other systems by improving statewide and regional coordination, data sharing, skills-based hiring, career pathways, and wraparound supports such as child care, housing, food, and transportation. Members asked how success would be measured, how the plan would serve disconnected youth and adults, and whether the proposed data integration would rely on Cradle to Career; the secretary said it would. The Department of Finance said it was available to answer questions on the education side. The committee then reviewed existing CTE funding and oversight. The LAO, CDE, and Community Colleges Chancellor’s Office described the major ongoing programs, including CTIG, Perkins, K-12 Strong Workforce, and Community College Strong Workforce, and noted that many programs overlap in purpose and administration. Members repeatedly raised concerns about duplication, annual applications and reporting burdens, lack of clear outcome metrics, and whether funding incentives should be better aligned to regional collaboration. CDE and the Chancellor’s Office said they support alignment and dual enrollment, and Finance and CDE said LCFF/local match dollars are part of the funding structure. The committee also discussed child care as a barrier to participation and the need for better tracking of enrollment, completion, and job outcomes. On the consolidated application proposal, Finance proposed a study directing CDE to examine whether three long-standing CTE grant programs—Specialized Secondary Programs, CTIG, and California Partnership Academies—could be streamlined into a single application and reporting process. The LAO supported reducing administrative burden but noted that the largest programs, CTIG and K-12 Strong Workforce, were excluded from the proposal even though districts most often cite them as burdensome. CDE said it did not oppose the study but warned that statutory differences may limit consolidation. Members said the proposal should better address regional coordination, multi-year funding stability, and outcome measures rather than only simplifying paperwork. Finally, the committee heard a proposal for a $5 million ongoing California Education Interagency Council. GovOps said the council would provide a neutral venue for statewide coordination across education and workforce systems. The LAO opposed the proposal, arguing that existing bodies already provide coordination, the proposal does not change agency incentives, and the council would lack authority to implement decisions. Members expressed mixed views, with some supporting a coordinating body and others questioning whether it would differ from past efforts. No votes were taken during the portions summarized here, and the committee indicated it would hold some items open for further discussion.