Transcript Highlights:

• Good afternoon and welcome to your favorite budget committee. Budget Sub 5.
• We have to have a little fun budget friends. We have to have a little fun, budget friends.
• I do think at a later date, perhaps for the next budget session, is coming back with more analysis of
• That budget change proposal document typically has the proposal and the justification, but also an analysis
• The budget change proposal document the Legislature got on Thursday just has this proposal with no analysis

Summary: The committee opened with the State Controller’s Office May Revision requests, including funding for Fiscal book-of-record stabilization, a Broadcom IDMS licensing adjustment, the California State Payroll System, ACFR reporting automation, and $3 million for unclaimed property outreach. Testimony emphasized progress on Fiscal becoming the state’s accounting book of record in July, faster ACFR publication, and the move to electronic unclaimed property claims. Members asked about the size of the unclaimed property fund and how quickly money is transferred to the General Fund; the Controller’s office said about $15 billion is held, with most excess transferred regularly, and the LAO noted the fund is the General Fund’s fourth-largest revenue source. No concerns were raised by Finance or the LAO, and the item was closed after no public comment. The committee then heard the administration’s proposal to tax prewritten digital software and software-as-a-service, with Finance saying it would modernize sales tax treatment and raise an estimated $450 million General Fund and $560 million local revenue in 2026-27. The LAO supported modernizing the tax but suggested broader digital goods coverage and a business-use exemption; industry and taxpayer groups opposed the proposal, warning of higher costs for consumers and businesses. Members also heard CDTFA’s administrative request tied to the proposal, plus a separate CDTFA budget reduction reflecting lower operational needs; that reduction was presented as a savings item and drew positive reactions. Next, the committee considered federal conformity for “Trump accounts,” which would align California tax treatment with federal rules for tax-deferred children’s accounts and avoid tracking burdens for families. The LAO recommended approval, and the item drew no opposition. The committee also heard a proposal to cut the first-year $800 annual business tax to $400 for LLCs, LPs, and LLPs; Finance argued it would lower startup costs and encourage new business formation, while the LAO said the benefit was not well targeted and could subsidize entities that would form anyway. Members discussed the policy tradeoff, and public commenters split between support for small business relief and concern about revenue loss. The final major revenue item was a permanent business tax credit limitation, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability, while excluding the low-income housing tax credit and personal income tax credits. Finance said it would raise significant revenue from large profitable corporations, and the LAO said it was a reasonable option but noted it would mainly affect the R&D credit and could have future implications for programs like California Competes. Public testimony was sharply divided, with business groups opposing the cap and anti-poverty advocates supporting it as a way to recapture revenue. The committee also heard FTB’s CalFile realignment request, which would return most of the direct-file-related resources to the General Fund while retaining a smaller staff to improve CalFile, and the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which members and advocates supported despite relatively modest annual donations. The hearing continued with GoBiz proposals on civic media funding, CA RISE reappropriation, and a semiconductor facility reversion, with the LAO supporting the latter two and members raising questions about the civic media program’s scope, outreach, and inclusion of broadcast and ethnic media.

Transcript Highlights:

• <00:14:40.480> satisfies being used for analysis satisfies being used for analysis satisfies
• That analysis is immediately available; we'll have to squeeze that through the sort of risk budget analysis
• and uh the we have existing analysis and uh the we have existing analysis from<00:55:13.839>
• <00:56:03.200> how<00:56:03.400> does budget analysis in terms of how does budget analysis
• example is we can show you an analysis example is we can show you an analysis that<01:07:37.640>

Keywords: 910, house, all

Transcript Highlights:

• have to ask for an additional budget request for that 2.5 on the admin budget side because it's not
• For the next budget? Yes.
• :19.120> request to ask for an additional budget request to ask for an additional budget request
• Is that what the budgeted number was, that it cost you previously? That was the budgeted number.
• <00:31:03.120> of relating to their financial analysis of relating to their financial analysis

Keywords: Due to a technical issue in the room, the quality of the stream will be diminished. We apologize for the inconvenience. Meeting start 00:00:00 Roll Call 00:02:00 SB 61 Discussion Only 00:03:25 SB 13 Discussion Only 00:07:19 SJR 25 Discussion 00:25:33 SJR 25 Vote 00:28:40 SB 61 Discussion Only 00:29:44, 958, all

Summary: The committee first took up Senate Bill 61, relating to swimming pools, but initially had no representative from the governor’s office or cabinet available to explain the fiscal estimate. Senators questioned why the executive branch’s estimate was $4.25 million to $8.5 million while the committee’s internal fiscal note showed little or no impact. When Department for Public Health staff later joined, they explained their estimate was based on a roughly $85,000 cost for a large outbreak investigation, using a 2014 outbreak as a benchmark, and said the bill could increase workload and outside laboratory costs if private swimming pools became more common as rental properties. They reported 822 waterborne cases in 2024, with 8 tied to private swimming pools, and later corrected an earlier figure to 14 private-pool-related investigations over five years. Senators pressed on the discrepancy between those numbers and the projected 50 to 100 incidents, and staff said the higher figure was a ballpark estimate. The discussion also clarified that private pools are generally excluded by definition, while pools held out for rent may be treated as public pools under current definitions. No vote on SB 61 was taken in the portion provided. The committee then heard Senate Bill 13, concerning the reprocurement of managed care organizations for Medicaid. Department for Medicaid Services officials said the bill would require work on a new RFP, system changes, and oversight improvements, and estimated the cost at $2.8 million based on prior procurement spending of about $2.5 million in 2018-2019, with a 10% growth adjustment. They explained that the work is administrative and therefore matched at 50/50 federal-state funding, not the 80/20 rate used for benefits, and said the expense would be incurred whether the bill passed or not if the state proceeded with an RFP. Senators discussed possible savings from reducing the number of MCOs from five to three, but agency staff said those savings were hard to quantify and that provider and member disruption could create offsetting costs. The committee later moved on to Senate Joint Resolution 25, which would ask the Revenue Department to report on the cost of issuing farmers a wallet-sized tax-exempt card instead of a paper certificate. The resolution was adopted by roll call, with all members present voting aye, and it was reported favorably to the floor.

Transcript Highlights:

• There's been no financial analysis that I have seen anyway.
• If it sits there in the budget, why not put it to health care?
• And if so, do you expect that in this normal budget year or budget cycle, or is it going to be an emergency
• only two months ago, make a mockery of the budget process and an independent. budget passed only two
• The 2025 budget included large assessment fee increases on licensees, The 2025 budget included large

Summary: The Assembly Appropriations Committee met on August 20, 2025, and considered a large number of bills, with most of the discussion centered on election redistricting and several health, labor, environmental, and government-operations measures. The first major item was ACA 8, a constitutional amendment tied to a proposed November special election and temporary mid-decade congressional redistricting in response to partisan redistricting efforts in other states. Supporters, including Planned Parenthood Affiliates of California, a 2020 redistricting commissioner, labor groups, and allies of the measure, argued it was necessary to defend democracy, protect representation, and respond to federal actions affecting California. Opponents, including Assemblymember Tom Lackey reading a statement for Assemblymember Gallagher and Assemblymember Dixon, argued the measure would undermine the independent redistricting commission, amount to a partisan power grab, and cost taxpayers roughly $230 million. Committee members also focused heavily on fiscal questions, including litigation costs and county election funding, and Department of Finance staff said counties would be made whole and funding would be advanced. The committee ultimately voted the measure out on a B roll call. The committee then heard SB 280, the implementing bill for the special election and related redistricting process. Supporters repeated the argument that California needed to respond to Texas and other states, while opponents again emphasized the cost, the strain on county budgets, and the state’s broader fiscal pressures. Department of Finance witnesses said the election funding would be provided in advance and that the state would work with counties and the Secretary of State. The bill was moved out on a roll call after extended debate. The committee also advanced several other bills, including SB 283 on battery storage safety standards, SB 470 extending remote participation and open-meeting flexibility for state boards and commissions, SB 697 modernizing stream adjudication procedures, SB 513 requiring more accessible employee training records, SB 30 restricting transfer of older diesel locomotives, SB 841 and SB 81 creating protections for vulnerable facilities and health care spaces from immigration enforcement, SB 358 revising traffic impact fee standards, and SB 630 streamlining state parks land acquisitions. Other measures discussed included SB 62 expanding health coverage benefits, SB 68 requiring restaurant allergen disclosures, and the committee heard both support and opposition on SB 68 from the California Restaurant Association and consumer advocates. Supporters of the health and immigrant-protection bills emphasized patient safety, reproductive health, immigrant rights, and access to care, while opponents on the restaurant bill warned of added mandates and litigation risk for small businesses. Across the hearing, committee members frequently returned to fiscal impacts, county implementation burdens, and whether the bills would save money, cost money, or shift costs to local governments. Several bills were reported out of committee, often on A or B roll calls, with some members not voting on particular measures.

Transcript Highlights:

• They were referred to this subcommittee by the Joint Budget Committee in April.
• They were referred to this subcommittee by the Joint Budget Committee in April.
• number 12 Arkansas Center for Health Improvement to continue performing data analysis.
• This is for external quality review and to update the budget scope and performance indicators of this
• This is a sustainability benchmarking analysis project. 74, UAFS with OHO Corporation.

Keywords: 1204, all

Transcript Highlights:

• It's easy to budget and ensures consistency.
• We perform the same analysis. Could you please introduce yourself? All right.
• So, we perform the same analysis. Same studies, virtually identical.
• So, we do have a similar analysis on here.
• That was the analysis as of last year.

Transcript Highlights:

• the... ...Hobby Fellows program, so he's our Hobby Fellow, and has been doing outstanding policy analysis
• And there does not include a written economic analysis of the financial impact on shareholders of the
• From our budgets. And so you don't know how much money this grant program will be? I do not.
• a provision which allows them to implement the program only if we have the necessary funds in the budget
• The Senate amendments were worked on with the legislative budget to ensure that all relevant accounts

Bills: SB15, SB646, SB800, SB790, SB748, SB571, SB1957, SB1923, SB1896, SB1760, SB1335, SB2368, SB2477, SB2587, SB2986, SB2965, SB1563, SB1467, SB1164, SB1137, SB614, SB705, SB918, SB955, SB869, SB850, SB863, SB1055, SB2206, SB457, SB2337, SB1610, SB1362, SB926, SB1494, SB251, SB456, SB500, SB1307, SB2615, SB2995, SB2321, SB2972, SB973, SB865, SB506, SB1522, SB1558, SB510, SB667, SB763, SB2073, SB1858, SB1660, SB2900, SB1433, SB1540, SB1964, SB1300, SB1644, SB2217, SB2373, SB2431, SB1758, SB974, SB2480, SB3039, SB3047, SB2781, SB826, SB766, SB527, SB1946, SB2885, SB1243, SB2610, SB857, SB2501, SB66, SB268, SB331, SB1302, SB519, SB2807, SB13, SB7, SB1718, SB1567, SB1233, SB413, SB2177, SB30, SB2024, SJR1, SCR27, SB2018, SB1580, SB2121, SB1049, SB1266, SB1400, SB1596, SB2753, SB2221, SB1719, SCR9, SB204, SB437, SB568, SB612, SB672, SB710, SB823, SB876, SB904, SB905, SB968, SB1084, SB1207, SB1230, SB1313, SB1504, SB1790, SB2232, SB2366, SB2367, SB2398, SB2515, SB2520, SB2589, SB2786, SB2790, SB3048, SB3050, SB3052, SB3053, SB3056, SB3029, SCR3, SCR18, SCR30, HCR146, HCR148, HCR149, HCR153, HCR155, HCR157, HB5560, HB762, HB1584, HB 107, HB 114, HB138, HB4386, HB2495, HB581, HB3348, HB5323, HB4341, HB6, HB2712, HB171, HB3153, HB143, HB2688, HB3464, HB449, HB3486, HB4263, HB2, HB1522, HB24, HB 1237, HB2637, HB3126, HB3233, HB4310, HB3487, HCR9, HB5331, HB1397, HB163, HB3250, HB3071, HB3463, HB5033, HB35, HB3824, HB216, HB4226, HB3512, HB18, HB5154, HB 103, HB851, HB647, HB4520, HB3016, HB2313, HB2818, HB2851, HB4486, HB4264, HB1500, HB5081, HB2974, HB2080, HB4384, HB5659, HB493, HB4903, HB2516, HB4488, HB4530, HB3689, HB145, HB43, HB5247, HB2221, HB5671, HB700, HB3711, HB 120, SB17, SB1637, SB1833, SB2155, SB21, SB2778, SB379

Keywords: SB 15, Texas Local Government Code, zoning preemption, housing affordability, small lots, lot size, lot density, single-family zoning, residential subdivision, municipal land use, local control, state preemption, parking requirements, setbacks, infill development, missing middle housing, lot width, lot depth, homebuilders, housing supply

Transcript Highlights:

• Fergus Falls we saw in the last budget Fergus Falls we saw in the last budget by<00:05:05.560>
• , or performance-based budgeting.
• <00:07:54.280> or um Zer based budgeting or um Zer based budgeting or performance-based performance-based
• The zero-based budget would do that.
• <00:15:52.319> we're look at our structural budget we're look at our structural budget we're

Keywords: 1187, senate, all

Transcript Highlights:

• This is our financial resource analysis page.
• But the budget delays were the cash payment.
• What does that budget look And so that's going to lead into our budget request for this year.
• Andrea, and it's not supplanting our budget.
• Let's jump over to the incremental budget request.

Keywords: 914, all

Transcript Highlights:

• And they've done that analysis.
• It came in way under budget, and just a little bit behind because a little bit more analysis was required
• A lot of your budgeting, budget forecast... Module. That's where your bank recon happens.
• A lot of your budgeting, budget forecasting, things like that happen within EPM.
• It allows us to budget, especially in a time where budgets are getting tighter.

Summary: The committee received several informational reports from NDIT and DPI. Justin Data reviewed the quarterly major IT project portfolio, noting the portfolio was slightly under budget and behind schedule overall, with three red schedule items: Bed Management System and Vital Records were essentially complete and being closed out, and the Roadway Capital Planning Project was delayed by vendor bug fixes after testing. He also summarized recent project startups and closeouts, including the Victim Notification System, Medicaid data exchange, Highway Patrol’s motor carrier permit system, and several completed HHS and RIMS projects. Members asked for follow-up on ADA compliance work, the public-facing RIO website, and the state’s mainframe retirement timeline, and staff agreed to provide updates later. Craig Falkley reported on coordination of services with political subdivisions and higher education, including StageNet, cybersecurity, radio/911 services, and PeopleSoft coordination. He also explained distributed ledger technology as a tool for transparency and fraud prevention, but said it is not widely used in state government and suggested the report be modernized to focus more broadly on emerging technologies such as AI and cybersecurity. The committee generally agreed that the topic should be updated. Chris Gurgan presented the mandatory cybersecurity incident reporting program created by HB 1314, explaining how agencies and political subdivisions report incidents through NDIT’s website or service desk. He said 77 incidents had been reported since 2021, 47 met the statutory definition, and most were phishing-related; most reported incidents were resolved, with one recent ransomware matter still open. He also reviewed notable incidents since the last report, including the PowerSchool compromise, a SimpleHelp intrusion at a school district, a court intrusion, a WSUS vulnerability, a business email compromise, and a recent ransomware incident involving a non-state critical infrastructure entity. Members asked about recovery of stolen funds, early warning signs, smishing, training, MFA, conditional access, and cybersecurity maturity assessments; Gurgan said the state uses MFA and conditional access, provides awareness training to state employees, and would return with more information on maturity assessments. Tony Ambrose then updated the committee on the K-12 student information system bridge project. He said district implementation of Infinite Campus had begun statewide, but the data migration vendor originally selected was terminated for poor performance and replaced by Aurora Educational Technology, which had experience with similar statewide migrations. He also said DPI is migrating special education data from Tynet into Infinite Campus, and that some SLDS-based tools such as e-transcripts and Choice Ready may not function exactly as they do now at July 1, requiring interim or alternative solutions. Members raised concerns about summer school disruptions, the timing of the cutover, and whether the new system would support existing reporting and transcript functions; DPI said it was working on identity, authentication, data-sharing agreements, and post-go-live integrations, and would continue to refine the plan beyond June 30.

Transcript Highlights:

• for Northern Kentucky University budget for Northern Kentucky University our<00:27:47.200> annual
• He continued that when you look at the total—the university budget, the number of employees, and the
• We don't have an analysis for looking at the cost.
• We have an analysis for looking at what they've presented.
• just get see an example of the analysis just get see an example of the analysis that<00:47:59.200

Keywords: This meeting will take place upon adjournment of both chambers today. There is not an exact time, there for the live stream has been created with a place holder time of 4:00 PM est., 958, all

Summary: Chairman Hart called the meeting to order, confirmed a quorum, welcomed Representative Rachel Roarx, and the committee approved the February 11 minutes. The committee then moved through its agenda of PSC and related contract items, including a motion to consider the reviewed contracts without objection. One Department of Highways item was deferred when the virtual representatives were not yet available. The committee first took up Kentucky Housing Corporation contracts. Members questioned outside legal services for foreclosures and bankruptcies, why the work was not handled entirely in-house, and how much of the workload and cost it represented. Witnesses said the agency’s need was largely geographic rather than a lack of expertise, that less than 1% of the loan portfolio is referred out for foreclosures, and that many fees are reimbursable through FHA. Both Kentucky Housing Corporation items were approved. The committee then considered a Department for Community Based Services contract tied to a protest and a temporary renewal with PCG. Witnesses said the contract increase was needed to bridge the gap while the protest and RFP process were unresolved, and that the initial vendor received no funds. The committee approved the item, with Senator Douglas explaining his vote as a preference for straightforward answers. The committee also heard a Northern Kentucky University contract for a Workday ERP replacement, including implementation consulting and separate license fees. University officials explained the move from SAP to Workday, the complexity of the systems, and the need for a consulting partner; they said the total effort would span 10 years and that the contract was priced below comparable institutions. After extensive questioning about cost, budget, and value, the vote ended 4-4 and the chair noted the contract would move forward through the Finance Committee if no disapproval motion was made. Finally, the Office of Inspector General presented a contract for culture change training in nursing facilities funded by civil monetary penalties; witnesses said the goal was to improve staff satisfaction, communication, and resident outcomes, and that the CMP fund balance was about $38 million. Discussion also covered survey backlogs and CMS restrictions on the funds, with the item still under review as the transcript ended.

Transcript Highlights:

• I know we're going into a very difficult budget cycle, so I'm certainly sensitive to the fact that it's
• crisis and understanding the current situation of the budget, knowing that's maybe not a short-term
• The work group, crucially, was informed by an actuarial analysis that estimated what the cost impact
• They did this cost analysis for us, and they prepared the final report that contains the analysis.
• We based this analysis, at least as a starting point, on a pre-collaborative work group from 2020.

Summary: The committee began with an extended work session on the long-term care workforce. DSHS Assistant Secretary B. Rector described the new Home and Community Living Administration and outlined major workforce pressures: Washington had about 126,000 long-term care workers in 2022, with demand expected to outpace supply as the 85-plus population and dementia prevalence rise sharply. She emphasized that direct care workers are largely women, people of color, and immigrants, and that family caregivers are also a major part of the system. She highlighted recruitment and retention efforts funded through federal Money Follows the Person dollars, including high school training partnerships, a retention toolkit, transportation support, caregiver newsletters, tribal workforce navigators, and a remote caregiving pilot. Committee members asked about career pathways, technology use, and turnover drivers; Rector said wages, benefits, unstable hours, and workplace support are key issues and promised follow-up data. Aidan Swain of the Washington Health Care Association said skilled nursing and assisted living facilities face acute RN vacancies, wage pressures, and Medicaid reimbursement that does not cover costs, and urged modernization of training, better reimbursement, and continued support for facility-based care. Maddie Fouch of SEIU 775, representing about 55,000 caregivers, said low wages, weak benefits, lack of voice, and certification delays are driving turnover and shortages, and argued for higher compensation, better worker protections, and more transparent reimbursement. Catherine Smith of Behavioral Health Solutions described growing behavioral health needs in nursing homes, the role of expanded behavioral supports programs, and credentialing delays that slow hiring. No votes were taken; the panel was informational only. The second agenda item was an overview of the palliative care benefit work group report required by 2024 legislation. Nico Jansen of the Office of the Insurance Commissioner explained that the work group, convened with the Health Care Authority, studied a potential palliative care benefit for fully insured commercial plans and also Medicaid, PEBB, and SEBB. He said palliative care is a philosophy of care focused on symptom management, coordination, and support for serious illness, and is distinct from hospice because it can be provided alongside curative treatment. The actuarial analysis concluded that creating a new benefit would likely increase costs, estimating about a 28-cent per member per month increase overall and roughly $2.6 million to $4.5 million in annual state Medicaid costs if implemented in 2027. Jansen said the consultants did not find sufficient evidence to assume savings from avoided hospitalizations or long-term care, though several work group members disagreed and submitted response letters. Senators asked about other states, Medicare, health homes, and whether more research could clarify cost savings; OIC said some states, including Hawaii, are moving ahead with Medicaid palliative care benefits, Medicare covers some related services but not in the same way, and further evidence may emerge over time. OIC did not take a position on whether the Legislature should create the benefit. The final presentation covered health care price transparency tools in Washington and federally. Evan Klein and HCA Chief Data Officer Vishal Chaudry reviewed federal hospital and health plan transparency rules, the state all-payer claims database, prescription drug price transparency, the Health Care Cost Transparency Board, the Prescription Drug Affordability Board, and other reporting systems. They explained that the APCD contains claims from fully insured commercial plans, Medicaid, and public employee programs, but not self-insured employer data except for limited voluntary submissions. They also described how machine-readable files, consumer price tools, and aggregated dashboards are used, and noted that data limitations, delays, and complexity remain significant. Senators asked about voluntary self-insured participation, the role of AI in making data more usable, and whether transparency can really help consumers given access barriers and medical debt. HCA said AI is increasingly used by private entities to mine large transparency datasets, but state agencies still face limits in data access and analytic capacity. The committee did not take action; the session was informational and ended with a discussion of how transparency data might better inform policy and purchasing decisions in the future.

Transcript Highlights:

• So welcome to Budget Sub 4. We have two panels as a part of today's hearing.
• And just by articulating this, it's going to help us make budget decisions.
• So we did a very detailed analysis.
• With the CAL FIRE damage inspection teams, we conducted a post-fire analysis.
• I thought the staff analysis or the agenda for this hearing was particularly good.

Summary: The hearing focused on California wildfire resilience, with the first panel discussing statewide funding, policy, and strategic priorities, and the second panel shifting to home hardening and defensible space. The LAO outlined the state’s wildfire risk, the large increase in resilience spending in recent years, and the fact that most funding has been one-time rather than ongoing. Testimony emphasized that wildfire risk varies greatly by region, that the state must balance response spending with prevention, and that success should be measured more carefully than by acres treated alone. Witnesses also noted the importance of local, federal, utility, and Proposition 4 funding sources, as well as the need for long-term maintenance and strategic prioritization rather than scattered projects. Cal Fire leadership and other witnesses stressed that California’s wildfire problem is not uniform: forested areas, chaparral, and wildland-urban interface communities require different strategies. In Northern California and forested watersheds, speakers emphasized fuels reduction, prescribed and cultural burning, strategic fuel breaks, watershed protection, and maintaining forest health. In Southern California, testimony focused on wind-driven fires, ember intrusion, ignition prevention along roads and power lines, and the limits of large-scale vegetation clearing. Several witnesses argued that the state should invest where it can leverage local and regional partnerships, support capacity-building programs like Regional Forest and Fire Capacity, and improve data systems to track treatment effectiveness and project outcomes. Members repeatedly pressed witnesses on how to prioritize limited funds, asking what should be done more of, less of, and first. The chair argued that protecting homes and communities through hardening and defensible space should be a major priority, especially near structures, while also acknowledging the need for broader landscape work and watershed protection. There was discussion of incentives such as insurance discounts, property tax treatment, and community certification for hardened homes, along with the need for multiple payers rather than relying on the state alone. Cal Fire reported new and expanding data tools, including treatment trackers, defensible space inspection dashboards, and a fuels treatment effectiveness program that evaluates whether nearby treatments affected wildfire behavior. No votes were taken because the hearing was informational only.

Transcript Highlights:

• Chairman, on tab N Director Sali: are the budget guidelines.
• I think that will allow us to further shrink the growth in the base budgets.
• We either put this back in the budget or we do something.
• We are leaving these guys high and dry on their maintenance budgets right now.
• Great flag, and we'll work on the budget guidelines.

Transcript Highlights:

• If we can move the budget deadline or the timeline that city preliminary budgets are due back, that would
• ... ...budgets, but they had to be included in the 2026 budgets.
• And we budget in dollars.
• We just did, the cities did their 2026 budget. We'll do a 2027 budget.
• We just did, the cities did their 2026 budget. We'll do a 2027 budget.

Keywords: 908, all

Summary: The committee met to continue its tax reform and relief study agenda, approved the December 3, 2025 minutes, and announced a new subcommittee to examine property tax statement issues with counties, auditors, and the tax office. Representative Headland was named chair, Senator Rummel vice chair, and Representatives Dressler and Dr. Dr. and Senator Patton were also assigned. The chair noted the group may need an additional meeting and thanked staff and attendees. A major portion of the meeting focused on economic development incentives. The Department of Commerce presented on the Renaissance Zone program and TIF districts, describing Renaissance Zones as locally tailored tools that combine local property tax relief with state income tax incentives. Commerce said the program has supported thousands of projects since 1999 and cited examples from Beach and Mandan showing increases in property and taxable value, business retention, housing, and downtown revitalization. Committee members raised concerns that smaller rural communities often lack the staff and expertise to apply, and Commerce said it provides outreach through conferences, office hours, and one-on-one assistance. League of Cities and local officials from Bismarck and Ellendale echoed the capacity issue, discussed how the programs have worked in their communities, and suggested possible reforms or more targeted support for small towns. Ellendale’s mayor also described two TIF districts, one for industrial infrastructure in Oaks and one for housing infrastructure tied to a data center project in Ellendale. The committee then turned to stripper oil taxation. The Tax Department gave a comparison of oil and gas tax structures in selected states, noting that most have some form of stripper or marginal well provision, while Alaska does not appear to have a specific stripper-well exemption. Members asked for more detail on definitions and North Dakota’s annual adjusted rate. The Department of Mineral Resources followed with a detailed presentation on North Dakota stripper wells, explaining the statutory thresholds, the 12-consecutive-month production test, and the fact that once a well qualifies it remains on stripper status even if production later rises. DMR said about 11,332 stripper wells are active, representing roughly 54% of wells and about 16% of state production, and emphasized that stripper status can extend well life, preserve tax revenue, and reduce orphaned wells. Committee members and industry witnesses discussed refracs, the economics of keeping marginal wells active, and the competitive disadvantage created by North Dakota’s oil price discount. No votes were taken on these informational items.

Transcript Highlights:

• Assembly Budget Subcommittee 5 on State Administration Hearing today.
• Some of those will be future budget asks, not for this hearing or for this budget cycle.
• That's what our budget should be used for. We support the governor's budget. Thank you. Thank you.
• CA RISE is more than a budget line.
• Genevieve Morales, Assembly Budget.

Keywords: 988, house, all

Transcript Highlights:

• By contrast, the budget we passed last week was $114.5 billion, which is less than the total budget for
• Certainly, as it relates to our budget relative to other states, we are in As it relates to our budget
• So we've cut billions of dollars out of our budget.
• As was admitted, there has been no analysis. How do we do this with no analysis?
• dust, budget dust, to offset the impact.

Summary: The Committee on Appropriations took up SJR 2-F, a proposed constitutional amendment to reduce property taxes by lowering assessment caps on non-homestead property, expanding homestead exemptions over time, and allowing local governments to increase exemptions further. The sponsor argued the measure would provide broad property tax relief while requiring revenues to be directed to core services such as public safety, education, infrastructure, and natural resource projects, with a trust fund intended to help local governments transition. Senators raised concerns about the lack of a fiscal score, the effect on counties, cities, school districts, and special districts, and whether the proposal would shift costs to fees or other taxes. Several amendments were debated. Senator Polsky’s amendment to explicitly authorize user fees and non-ad valorem assessments to offset lost property tax revenue failed. Senator Avila’s amendment broadening permissible uses of ad valorem revenue to include county constitutional officers and other expenditures approved by local governing bodies was adopted after debate over whether the bill would otherwise underfund essential functions. Senator Smith’s sunset amendment, which would have made the constitutional changes expire after five years, failed. Senator Smith’s amendment to allow tourism development tax revenue to support public safety and education also failed. Senator Graal’s amendment removing the constitutional trust fund language was adopted, with supporters arguing the Constitution should not promise an unfunded account. Additional late-file amendments were considered. Senator Berman’s proposal to change the ballot title to more neutrally describe the measure as affecting property taxes and local community service reductions failed. Senator Trumbull’s amendment removing school board ad valorem taxes from the proposal was adopted, preserving school taxes. Senator Smith’s amendment narrowing the non-homestead assessment cap reduction to small businesses only failed. The committee then returned to the bill as amended and continued questioning the sponsor about eligibility, fiscal impacts, and whether the proposal could lead to local governments offsetting lost revenue through special assessments or other charges.

Transcript Highlights:

• The supplemental benefit payments were, and are currently, pay-as-you-go from institution budgets.
• These were informed by 2020 analysis from our office.
• Then, looking to the future, we still have further analysis to produce a funding valuation that would
• Stepping into the next slide in terms of estimated budget impacts, we provide the estimated savings here
• We know the state's budget challenges are large right now, and the local government is experiencing the

Keywords: 904, all

Transcript Highlights:

• This hearing will focus on both the CSU and the library budgets, the State Library budgets.
• As far as what the budget approval and what gets budgeted and what the final language in the budget is
• , could... ...budget approval and what gets budgeted and what the final language in the budget is, could
• The budget was a first salvo.
• The budget maintains the statewide efficiency reductions included in the 2024 Budget Act.

Summary: The Assembly Budget Subcommittee on Education Finance met to review CSU and State Library budget issues, enrollment trends, the Capital Fellows program, and a Title IX update. Chair David Alvarez opened by stressing that CSU faces serious financial pressure, including a systemwide deficit and proposed cuts that he and several members said were too large and likely to harm access, course offerings, and student services. Public comment focused heavily on the Braille Institute Library, with patrons, staff, veterans, and advocates urging restoration of funding and warning that the proposed cut would severely affect blind and visually impaired Californians across Southern California. Several CSU faculty, staff, and union representatives also opposed the proposed reductions and warned of larger class sizes, fewer sections, and layoffs. On the CSU core operations item, the Department of Finance explained the Governor’s proposal to reduce ongoing General Fund support by about $375 million and defer a 5% base increase, while the LAO said CSU core funding would be roughly flat once tuition and targeted augmentations were considered, but warned that rising costs and prior shortfalls would still force campuses to cut spending. CSU’s Chancellor’s Office said the proposed cut would deepen existing problems, citing prior-year budget gaps, job losses, reduced course sections, and student-service reductions. Members pressed Finance and the LAO on whether cuts could be made more surgically, especially at the Chancellor’s Office or in institutional support rather than in instruction, and the LAO said the Legislature has flexibility to target cuts more specifically. CSU also described ongoing consolidation efforts, including shared services among campuses and the planned Cal Maritime/Cal Poly San Luis Obispo integration, while cautioning that savings are not yet fully known. The committee then discussed CSU enrollment. The LAO recommended holding enrollment targets flat because the budget does not add new funding, while CSU reported strong recent growth, including more California residents, record first-year enrollment, and expanded direct admissions and transfer pathways. Members questioned why some campuses with high demand turn away many applicants while others continue to lose enrollment, and CSU said it is shifting resources from campuses with sustained declines to those with demand, using a 10% below-target threshold. The committee also discussed whether enrollment declines mirror local population trends, how to improve marketing and program alignment, and whether lessons from Cal Poly Humboldt’s conversion could inform other campuses such as Sonoma State. The Capital Fellows item drew a Finance proposal for a salary increase and an LAO counterproposal for a smaller raise plus future COLA language; the committee kept the item open. Finally, CSU reported progress on Title IX compliance, saying it has completed most State Auditor recommendations, expanded civil rights staffing, and increased training, prevention, and case-management efforts, though members asked how proposed budget cuts might affect those services.

Transcript Highlights:

• relative to the Governor's budget.
• relative to the Governor's budget.
• relative to the Governor's budget.
• window over the Budget Act.
• I also want to add that it's not included in the education budget, but on the other side of the budget

Keywords: 987, senate, all

Summary: The committee heard the Governor’s May Revision proposals for TK-12 education, beginning with a Proposition 98 overview from the Department of Finance and the Legislative Analyst’s Office. Finance said the May Revision increases the Proposition 98 minimum guarantee by about $6.4 billion relative to the Governor’s January budget across the three-year window, with higher guarantees in each year, continued full payment of the outstanding settle-up obligation in 2024-25, and a reduced $3.9 billion settle-up amount in 2025-26. Finance also described larger mandatory and discretionary deposits into the Proposition 98 reserve, ending with an estimated $10.3 billion reserve balance. The LAO said the overall estimates were reasonable, but urged the state to fully fund the guarantee and use other budget tools, including reserves, to manage volatility rather than delay settle-up payments. Members questioned the remaining settle-up amount, the risk of revenue volatility, and possible alternatives such as advance payments or other reserve strategies. The second panel covered Department of Education proposals and trailer bill language. Finance outlined additional state operations funding and positions for CDE, along with trailer bill changes affecting community schools, preschool, literacy, special education, charter accountability, teacher-related programs, and other technical cleanups. The LAO supported the overall structure of the package but recommended changes to several items, including rejecting some additional one-time community schools, literacy, math, multilingual screener, and inclusive college proposals, while supporting the ongoing LCFF and special education increases and raising concerns about the paid pregnancy disability leave proposal’s cost and implementation complexity. CDE supported the special education increase, community schools, literacy and math investments, homelessness funding, and the paid pregnancy leave proposal, while asking for more funding for county office support, clearer homelessness definitions, and continued preschool parity. Members also asked about immigrant student supports, community schools reporting, and the rationale and cost estimate for the paid pregnancy leave proposal, which Finance estimated at $218 million annually. The final panel addressed the Commission on Teacher Credentialing. Finance proposed additional legal staffing for SB 848 implementation and educator misconduct caseloads, a fee increase for clear credential renewals from $100 to $125, a $5 million one-time Proposition 98 investment to build a transcript review platform, $2 million ongoing for transcript review staffing, and $30 million one-time for the statewide residency technical assistance center. The LAO had no concerns about the legal staffing, supported the transcript review platform if the fee increase and ongoing staffing were adopted, and recommended rejecting the residency technical assistance center expansion because existing funding runs through 2029. The Commission explained that the misconduct workload has grown over several years, that AI would assist but not replace human review in transcript matching, and that the residency technical assistance center helps recruit and retain teachers and support rural districts. Public commenters largely supported special education, discretionary block grants, community schools, literacy investments, homelessness funding, and teacher credentialing alternatives, while some urged rejection of the settle-up proposal and preschool COLA reduction.