Transcript Highlights:

• Our next request is for a reappropriation of $1 million originally appropriated in the 2022 Budget Act
• The Treasury's office request a increase in budget authority from $1.7 million to $8 million to cover
• Does that mean you approve all of our budget requests?
• I also want to request the committee support for a budget request which would establish an ongoing $8
• I want to request the committee support for a budget request which would establish an ongoing $8 million

Keywords: 988, house, all

Transcript Highlights:

• Uh, the first front part of that page is our budget request.
• And I'm going to focus on the front part with our FY27 budget request.
• Our special fund operating budget request is just over $282 million.
• ><c> requests</c><00:20:46.159><c> when</c> these additional budget requests when these additional budget
• And we are asking in our budget request for...

Keywords: Appropriations - Room 216, 28 January, 2026; 8:15 AM, 925, all

Transcript Highlights:

• Their budget silos.
• in the budget this year.
• Seeing their budget request, I heard in your highlights, when you presented your silo, you talked about
• Could you kind of maybe speak generally about how your budget compares to the requests that Secretary
• the bill in the budget.

Keywords: 998, house, all

Transcript Highlights:

• This is for budget requests. There are budget requests, yes.
• c> not</c> um so this budget request is looking not um so this budget request is looking not only<00:
• This was a previous budget request.
• This was a previous budget request.
• <c> happy</c><01:17:10.760><c> New</c> budget requests good afternoon happy New budget requests good

Keywords: 912, senate, all

Transcript Highlights:

• The Treasury's office request a increase in budget authority from $1.7 million to $8 million to cover
• Does that mean you approve all of our budget requests?
• I also want to request committee support for a budget request which would establish an ongoing $8 million
• I also want to request committee support for a budget request which would establish an ongoing $8 million
• Want to to request the community support for a budget request which would establish an ongoing 8 million

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:

• request, and so that's what we did.
• For fiscal year 2027, the division originally requested $533,700 in one-time enhancements to its budget
• For fiscal year 2027, the division originally requested 533,700 and one-time enhancements to its budget
• This is not in the budget book.
• I did not have this budget at that time, but I know that it came across in the budget request, and J-FAC

Keywords: 989, all

Summary: The committee first heard a report from the Joint Millennium Fund co-chairs on recommended uses of Millennium Fund dollars. The recommendations included one-time funding for juvenile safety assessment centers and child advocacy centers, ongoing funding for the Upper River Youth Leadership Council Recovery Center, $5 million for a statewide drug awareness media campaign, and $25 million one-time for Medicaid claim payments to reduce the general fund impact in fiscal year 2027. Members asked about the Medicaid recommendation because the fund had previously been directed away from Medicaid; the co-chairs said the request was made in light of a revenue downturn and was intended as one-time funding, with any unused balance returned. The report was accepted by unanimous consent. The committee then reviewed the Division of Occupational and Professional Licenses. Legislative staff summarized the division’s consolidation of licensing boards, staffing, fee-balance management requirements, and the governor’s and committee’s budget recommendations, including vehicle replacement and IT hardware requests. Administrator Russ Barron said the division has reduced overall expenditures since consolidation, improved licensing and inspection timeliness, and used fee changes, fee holidays, and board mergers to keep board balances within the target range. Members questioned rising personnel costs, the use of opioid settlement funds for prescriber DEA fees, the continued need for a 10% transfer exemption, vehicle replacement timing, and how complaints and discipline are handled; Barron said complaints drive investigations, boards set fees subject to legislative approval, and a universal discipline bill could improve consistency. Finally, the committee heard the state lottery budget. Staff described lottery revenues, prize payouts, dividend distributions to schools and state buildings, and a small one-time request for replacement computers. Director Andrew Arulenandum said the lottery has reduced management layers, renegotiated major contracts for significant future savings, and is trying to improve performance without relying heavily on paid advertising. Members asked about the role of lottery detectives, the return on advertising spending, and the need for MacBooks and iMacs; he said detectives investigate theft and other lottery-related crimes, advertising results are hard to isolate from jackpot size, and the Apple equipment is needed for in-house design work. The committee concluded its business and adjourned, with a reminder about upcoming budget-setting work sessions.

Transcript Highlights:

• OPD's supplemental budget request is narrow and largely reflects court orders and right-to-counsel obligations
• Our budget request ensures that OPD and our contracted providers can operate within the new court-ordered
• that we requested, and we do hope that you agree on the value of that and include it in your House budget
• Missing in the budget is a $30 million emergency funding request we made to scale food purchases and
• Missing in the budget is a $30 million emergency funding request we made to scale food purchases and

Summary: The House Appropriations Committee opened with committee guidelines for the 2026 session, including limits on testimony, amendment deadlines, confidentiality expectations, and professionalism rules. Chair Ormsby also reviewed housekeeping for the public hearing, noting the meeting was recorded and live streamed, and that testimony would be limited to one minute because of the large number of sign-ups. The committee then began its work session on Governor Ferguson’s proposed 2026 supplemental operating budget, presented by OFM Director Katie Chapman, who outlined the state’s fiscal pressures: higher caseloads in major programs, a revenue forecast decline of about $390 million, federal policy changes tied to H.R. 1, inflation, and a relatively small ending fund balance. She said the governor’s budget solves about a $2.3 billion shortfall through nearly $800 million in spending reductions, revenue shifts, fund transfers, use of about $1 billion from the Budget Stabilization Account, and some tax preference changes, while also making targeted investments in areas such as child welfare, behavioral health, wildfire response, housing, and IT modernization. Chapman also explained that the proposal does not fully balance over the four-year outlook under the state’s statutory assumptions, but said the governor relied on the budget-balance law’s exception tied to BSA use and low employment growth. A question from Rep. Connors about credit ratings was answered with the view that the impact is difficult to predict and that Washington’s strong pension funding and balanced-budget framework remain positives. The public hearing drew testimony from state officials and many advocates, most of whom opposed specific cuts or fund shifts in the governor’s proposal. Secretary of State Steve Hobbs objected to proposed sweeps from the corporations and charities fund and the library archives account, citing prior cuts, layoffs, cyberattack-related costs, and the need to upgrade aging systems. Commissioner of Public Lands Dave Upthegrove urged restoration of wildfire prevention funding, saying the proposed amount was still $30 million short of the commitment in House Bill 1168 and that underfunding would increase suppression costs and risk to communities. Many education witnesses opposed reductions to Working Connections Child Care, transition to kindergarten, local effort assistance, Running Start, and higher education across-the-board cuts, arguing they would harm access, equity, and workforce development. Higher education leaders from community colleges, the University of Washington, Western Washington University, and Evergreen State College described staffing cuts, program reductions, and pressure on student services, while K-12 groups and OSPI said the budget would deepen existing funding gaps. A large portion of testimony focused on human services, health, housing, and civil legal aid. Child welfare and youth-serving organizations supported some targeted investments but opposed cuts to child care, child welfare network administration, and youth programs; advocates for foster youth, homeless youth, and mentoring programs asked for continued or increased funding. Health care and long-term care providers warned that proposed Medicaid and rate changes would reduce access for seniors, people with disabilities, and safety-net patients, while Planned Parenthood and abortion access advocates urged full restoration of the Abortion Access Project and related reimbursements. Housing and legal aid witnesses backed the governor’s proposed right-to-counsel funding but asked for more support, and homelessness advocates sought contingency funding for federal housing programs. Crime victim and domestic violence service providers repeatedly said the proposed $12 million was far short of the roughly $21.38 million needed to avoid service cuts and closures. Other testimony addressed the Climate Commitment Account shift for the Working Families Tax Credit, with environmental advocates opposing the diversion of CCA dollars and workforce advocates supporting the governor’s economic security and employment programs. No votes or formal committee action were taken during the hearing portion described in the transcript.

Transcript Highlights:

• So we budget that we assume that salary increase here rather than after you all passed the budget.
• I might actually lean on the state budget director's expertise on budget-making and how the Department
• The budget starts here.
• Are we expecting the Senate to pick up some of this additional requests in the budget?
• Are we expecting the Senate to pick up some of this additional requests in the budget?

Keywords: 996, all

Transcript Highlights:

• It could be a typo, but it could also be that when we put together our budget request, we have to do
• It could be a typo, but it could also be that when we put together our budget request, we have to do
• </c> So our ask today is not about the budget request or the LBR.
• :23:22.800><c> before</c><01:23:23.120><c> you,</c><01:23:24.239><c> um,</c> with this budget request
• </c><01:25:01.920><c> request</c> out of the legislative budget request out of the legislative budget

Keywords: Appropriations - Room 409, 22 January, 2026; 1:30 P.M., 925, all

Transcript Highlights:

• The budget outlined on page two focuses on the state funds, and if you'll turn to page three, the budget
• come up with a request to include in their budget request for JFAC for 2028 for what that ongoing situation
• come up with a request to include in their budget request for JFAC for 2028 for what that ongoing situation
• So it's not just the use of the funds for the court requests, but also for the request that Ms.
• Keith Bybee, Division Manager, Budget Policy Analysis.

Summary: The committee first considered trailer appropriations for House Bill 684 and Senate Bill 1226. HB 684 would allow sheriffs to seek reimbursement for costs of collecting absconded prisoners, probationers, or parolees from out of state, with a fiscal impact estimated at up to $200,000; the committee approved a FY 2027 addition of $200,000 ongoing to the Department of Correction and recommended a due-pass. SB 1226 would add sexual battery and domestic violence misdemeanors to crimes requiring DNA samples and thumbprints, with an estimated annual cost of $63,000; the committee approved a FY 2027 addition of $63,000 ongoing to the Idaho State Police and also recommended due-pass. The committee then revisited the Secretary of State budget after House Bill 909 failed on the floor. The analyst reviewed the requested voter pamphlet funding, overtime transfer, and ITS replacement items. The committee adopted a revised FY 2027 motion adding $235,800 from the General Fund, including a one-time $350,000 voter pamphlet appropriation, a $20,000 transfer to personnel, and a 2% base reduction, and sent the budget forward with a due-pass recommendation. A major portion of the meeting focused on restoring behavioral health programs using a mix of Millennium Income Fund, opioid settlement funds, and federal matching dollars. Members debated options to restore ACT, peer support, skills training, transportation, partial hospitalization, and early serious mental illness programs. A broader restoration motion failed in the House committee, but a narrower FY 2027 motion for ACT and peer support services passed, as did a separate $250,000 opioid-settlement appropriation for peer support services in mental health courts. The committee also adopted language directing the Department of Health and Welfare to identify savings for future continuation of the restored programs and approved a FY 2026 supplemental of $200,000 for a legislative consultant to support oversight of the Medicaid managed care transition under HCR 30, despite objections that it duplicated department efforts. The committee adjourned after noting it would likely meet again Wednesday to handle remaining trailers, transfers, and supplemental items.

Transcript Highlights:

• When I sent budget instructions to agencies for their agency decision package budget request back in
• Missing from the governor's budget, however, is $30 million in emergency funding we requested to scale
• We know this at the Arc because budget writers often struggle to fund our request and stabilize care
• WDFW's request to close the hatchery is not in the governor's budget.
• Of our two requests to the governor's budget, an operating request for our collections database was funded

Summary: The Senate Ways and Means Committee heard an overview from OFM Director Katie Chapman See on Governor Ferguson’s 2026 supplemental budget proposal. She said the budget was built in response to higher caseloads and inflation, a roughly $390 million revenue forecast drop, new federal costs tied to H.R. 1, and a relatively small ending fund balance. The proposal would increase near general fund spending by about $1.1 billion and solve an estimated $2.3 billion two-year gap through about $800 million in reductions, revenue shifts and tax preference changes, use of other funds, and about $1 billion from the budget stabilization account. She also noted the budget is balanced over two years but not fully over four years under the state’s outlook rules. Chapman See highlighted reductions in Working Connections Child Care, including a soft cap on enrollment and holding subsidy rates at the 75th percentile, delays to long-term care and developmental disability-related changes, and across-the-board reductions to higher education and administrative spending. She also described investments in wildfire suppression and preparedness, affordability programs like utility rebates and home energy assistance, housing-related planning and permitting support, One Washington IT replacement, behavioral health workforce programs, and continued support for some K-12 initiatives such as ninth grade success and homeless student stability. In response to questions, she said some proposed cuts were based on the governor’s subjective judgment about what was critically necessary, that current child care enrollees would not be cut off immediately, and that the budget would maintain services for about 500 highest-acuity Medicaid clients who lost eligibility under federal changes. Public testimony was largely critical of the proposed cuts in K-12, early learning, and higher education. School officials, educators, nurses, and advocacy groups opposed reductions to Transition to Kindergarten, Local Effort Assistance, Running Start, MSOC, school leadership and support grants, and higher education funding, arguing the cuts would worsen existing funding gaps and harm student outcomes. Several witnesses supported restoring or maintaining funding for ninth grade success, Treehouse’s foster youth graduation program, homeless student stability, and Science on Wheels. In early learning, child care providers and advocates opposed the Working Connections cap and subsidy-rate reduction, warning it would reduce access and destabilize providers. In higher education, campus leaders and labor representatives opposed across-the-board cuts and fund shifts, while some institutions and advocates supported targeted investments such as behavioral health workforce programs and DigiPen aid restoration. In human services, Planned Parenthood advocates praised restored abortion access funding and Medicaid reimbursements. The committee took no votes or final action in the transcript provided.

Transcript Highlights:

• So this is a broad request.
• budget hearing prior to...
• In the Budget Act of 2023, rather than giving us the complement of positions that we had requested as
• That's why we urge support for this budget request, ensuring that **CARB** has the resources that they
• for the **ZEV** budget package.

Keywords: 988, house, all

Transcript Highlights:

• That request also includes a request to make three broadband project positions permanent.
• Operations and activities, our budget requests, and then answer your questions.
• Our L.A. request The board of directors respectfully requests that you consider that item and that the
• And I'll make this request on behalf of our entire board. legislative appropriation request, the PRB
• And you will see that in the budget structure and in the request. Again, this is.

Keywords: 1184, house, all

Transcript Highlights:

• And without those line items in the budget, the gentleman on the second floor's budget would not have
• That request has been made. Is there objection?
• request and make use of that.
• Career Tech restored 1% and 2% in their budgets.
• This is a pro-education budget, or not budget, sorry. Bill. This bill, I Bill.

Summary: The House convened with a quorum, approved the journal, welcomed a substitute member, and received multiple Senate messages and committee reports. Several bills were introduced and referred, including measures on medical advanced healing, insurance/state property claims, stablecoins, solid waste, public assistance definitions, and foreign ownership of single-family homes. The chamber also advanced a number of bills to second or third reading, and adopted House Concurrent Resolution 32 on energy policy, which urged a focus on baseload energy sources, transmission, ratepayer protection, property rights, and aquifer protection; it passed by voice vote. The House passed a series of bills on the floor, including House Bills 838, 721, 817, 752, 680, 860, 875, 876, 877, 795, 826, 832, 843, and 872, along with Senate Bill 1373. The measures covered topics such as requiring draft policy bills with budget recommendations, plan review timelines for public projects, a mobile cigar business permit, restroom and changing-room restrictions, recorded investigative interviews of child abuse allegations, revisions to medical parental rights and emergency care language, vacancy-based budgeting calculations, the State Board of Education budget, vocational rehabilitation rent, a response to litigation over prior law, honey commission governance, CTE teacher recruitment, homeowners exemption proration, and ballot formatting. Most passed with comfortable margins, though House Bill 875 passed narrowly 35-34 and House Bill 752 drew substantial debate before passing 54-50-1. Debate was especially intense on House Bill 752, with supporters framing it as a protection for women’s privacy and safety and opponents arguing it would criminalize bathroom use and target transgender people. House Bill 875 also drew concern that codifying budget-calculation methods could constrain future budgeting flexibility, while supporters said it would improve transparency and prevent funding vacant positions. House Bill 876, the State Board of Education maintenance budget, prompted criticism over a 6.8% base reduction and warnings about layoffs and program cuts at colleges and universities. House Bill 826, 832, 843, and 872 were all considered under suspended rules and passed, and the House also adopted HJM 18 urging action against geoengineering, with members citing concerns about sky streaks and climate intervention. The House recessed and later returned to continue business, with additional Senate bills and House bills referred for committee action.

Transcript Highlights:

• We do keep budget increases to a minimum, and our budget request for fiscal year 2027 is only slightly
• :38.720><c> um</c><01:02:38.960><c> as</c> our current budget request um as our current budget request
• will discuss more details of our budget request.
• We're not requesting new positions in the fiscal year 2027 budget request.
• </c> approximately 70% of our budget request. approximately 70% of our budget request.

Keywords: Appropriations - Room 216, 22 January, 2026; 8:00 AM, 925, all

Transcript Highlights:

• The budget outlined on page two focuses on the state funds, and if you'll turn to page three, the budget
• come up with a request to include in their budget request for JFAC for 2028 for what that ongoing situation
• come up with a request to include in their budget request for JFAC for 2028 for what that ongoing situation
• So it’s not just the use of the funds for the court requests, but also for the request that Ms.
• Keith Bybee, Division Manager, Budget Policy Analysis.

Keywords: 989, all

Summary: The joint Senate Finance and House Appropriations committee considered several trailer appropriations and related language items. It approved $200,000 ongoing for the Idaho Department of Correction tied to House Bill 684, which allows sheriffs to seek reimbursement for costs of collecting absconders from out of state, and approved $63,000 ongoing for the Idaho State Police under Senate Bill 1226 to cover DNA sample and thumbprint collection for certain misdemeanor offenses. The committee also reconsidered the Secretary of State budget after House Bill 909 failed on the floor, and passed an amended FY 2027 budget with a $235,800 general fund increase, including a one-time $350,000 voter pamphlet appropriation, a $20,000 transfer from operating to personnel, and a 2% base reduction. A major portion of the meeting focused on restoring behavioral health programs in the Department of Health and Welfare using one-time Millennium Income Fund and opioid settlement dollars. Analysts outlined options to restore ACT, peer support, skills training, transportation, partial hospital, and early serious mental illness programs. The committee first rejected a broader restoration package, then approved a narrower FY 2027 package restoring only assertive community treatment and peer support services with $4.619 million from the Millennium Fund, $5.555 million from the opioid settlement fund, and $20.525 million in federal funds. It also approved $250,000 from the opioid settlement fund for peer support services in mental health courts and adopted language directing the department to identify savings for future funding needs, though a broader language motion failed. The committee then approved a FY 2026 supplemental of $200,000 for the Legislature to hire a consultant for the Medicaid Legislative Review Panel under HCR 30, despite objections that it duplicated work already being done by the Department of Health and Welfare’s consultant. Members also discussed that the one-time behavioral health funding would only carry programs through FY 2027 and may require general fund support later. The committee adjourned after announcing it would likely meet again Wednesday to handle year-end transfers, remaining trailer bills, and other pending budget items.

Transcript Highlights:

• For fiscal year agency budget request.
• Is there money in the budget, and is this an enhancement request, or is this money not in the budget
• Is there money in the budget, and is this an enhancement request, or is this money not in the budget
• </c><03:48:20.560><c> of</c> budget request simply an adjustment of budget request simply an adjustment
• </c><03:48:30.160><c> Unfund</c> recommended budget request. Unfund recommended budget request.

Keywords: 1191, senate, all

Transcript Highlights:

• This will require specific Legislative Council approval, but there is no requested budget for an expert
• We also have, for that purpose, requested a budget for outside experts, but nothing horribly exorbitant
• They are requesting a small budget for... ...budget for two, possibly three different experts.
• Budget.
• for in the latest budget request, and I can't...

Transcript Highlights:

• We appreciate the inclusion of our budget request in the proposals for investment in the packet.
• The budget request would actually be $50 million, which would be for the first half of '27, where there
• First, we want to share our strong support for the public hospital budget request of $500 million.
• I'm here to support CalPACE's budget request for additional nursing support.
• We'd like to echo the comments made by previous speakers in support of the budget request for $700,000

Keywords: 987, senate, all

Transcript Highlights:

• The governor’s budget request is a 2.8% operating adjustment.
• The governor’s budget request is a 2.8% operating adjustment.
• The governor’s budget request is a 2.8% operating adjustment.
• The governor’s budget request is a 2.8% operating adjustment.
• The governor’s budget request is a 2.8% operating adjustment.

Bills: HF2432

Keywords: HF2432, judiciary finance bill, public safety finance bill, corrections policy, crime victims, victim services, Minnesota victims of crime account, court fees, marriage license fee, financial crimes, fraud investigations, insurance fraud, Bureau of Criminal Apprehension, BCA, Commerce Fraud Bureau, wage theft, automobile theft prevention, nonprofit security grants, 911 funding, POST Board