Transcript Highlights:

• </c> when local citizens formed a budget when local citizens formed a budget brigade<00:21:27.120><c>
• </c> of the budget committee last week. of the budget committee last week.
• :19.119><c> to</c> budget reflects a commitment to budget reflects a commitment to responsible<00:40:
• </c> establishing the congressional budget establishing the congressional budget for<02:27:35.680><c>
• </c> establishing the congressional budget establishing the congressional budget for<04:10:08.640><c>

Transcript Highlights:

• Streamlining procedure is another important area that is right for state reform.
• Streamlining procedure is another important area that is right for state reform.
• Streamlining procedure is another important area that is right for state reform.
• Streamlining procedure is another important area that is right for state reform.
• However, as you all know, we face a budget deficit in only a few years.

Committee: House Housing Finance and Policy

Transcript Highlights:

• </c> The house budget goes up. The house budget goes up.
• The CIP budget makes strong budget.
• ><c> following</c> Senate budget funds the following Senate budget funds the following priorities:<00
• And you know, working with budget.
• Um, I just don't understand why would we consider having a bail reform that's not really a reform.

Transcript Highlights:

• In the 2024 supplemental budget, additional ongoing funding for staffing In the 2024 supplemental budget
• The LRC is a civil justice reform group.
• The LRC is a civil justice reform group.
• future receivables for balancing its current budget.
• HB 1591 is a fiscally responsible reform.

Summary: The committee first heard Substitute House Bill 1128, which would create a Child Care Workforce Standards Board within the Department of Labor and Industries to study child care workforce conditions and make recommendations on employment standards. Staff explained that the proposed second substitute narrows the board’s role from setting enforceable standards to making recommendations, with estimated ongoing costs for L&I staffing and smaller costs for board member stipends and possible DCYF support. Supporters, including child care providers, SEIU 925, and labor representatives, said the bill would help address understaffing, low wages, and retention problems; opponents, including child care industry groups and private schools, argued it duplicates existing work, adds bureaucracy, and creates unfunded costs. No vote was taken in the hearing. The committee then heard Second Substitute House Bill 1634, which would direct OSPI and ESDs to develop a technical assistance and training framework to help schools coordinate student behavioral health supports. Staff said the bill aligns with the Washington Thriving Strategic Plan and could largely be implemented with existing work and limited additional costs, though DOH would need some support. Testifiers from behavioral health and school counseling fields described severe youth mental health needs and urged passage, and OSPI said the work is doable with current resources. The committee also heard Substitute House Bill 2636, which would create a public education review advisory council to recommend K-12 policies and funding provisions for JLARC review; staff described JLARC, OSPI, and State Board costs, and no public testimony was offered. The committee next heard House Bill 1316, which would expand the Supporting Students Experiencing Homelessness program so additional university campuses can access funding. The sponsor said the program has strong retention outcomes, and student advocates testified that campuses such as UW Bothell need access to already appropriated funds for emergency aid, food pantries, and case management. Staff then briefed Substitute House Bill 2474, which would allow the Student Achievement Council Tuition Recovery Trust Fund to be used for refunds tied to broader consumer protection violations, with no expected fiscal impact; there was no testimony. The committee also heard Substitute House Bill 2365 on digital equity, which would expand the Broadband Office’s role, revise the digital equity forum, and rename the grant program; supporters emphasized rural access, affordability, and the loss of federal digital equity funding, while staff estimated significant Commerce staffing costs and some additional agency impacts. Finally, the committee heard House Bill 2401, creating a Washington State Boys and Men Commission contingent on non-state funding, with staff outlining OFM startup and fundraising costs and an estimated operating budget if fully funded. Supporters said boys and men face mental health, education, and mentorship gaps and that the commission would improve coordination; the bill drew testimony from rural school leaders, nonprofit advocates, and community members. The committee then heard Substitute House Bill 2475 on language access, which would require the Office of Equity to develop uniform language-access guidelines and a report on interpreter and translator shortages; staff said the office could absorb the work but other agency and local government impacts were uncertain. Substitute House Bill 2517, on permitting for high-capacity transit, would let regional transit authorities apply for permits earlier and streamline land-use processes; Sound Transit and the sponsor said it would speed delivery of major projects, while staff estimated Commerce technical-assistance costs and possible local government impacts. The last bill heard was Substitute House Bill 2145 on the 340B drug pricing program, which would bar manufacturers from restricting contract-pharmacy access and require reporting to DOH; supporters said it protects safety-net providers and patient services, while opponents warned of higher costs for employers, state health plans, and litigation burdens. No final committee action or votes were recorded in the transcript.

Transcript Highlights:

• Budget overview and budget change proposals for the Emergency Medical Services Authority.
• Budget overview and budget change proposals for the Emergency Medical Services Authority.
• As noted in the agenda, the Governor's Budget includes three budget change proposals for EMSA.
• I will now touch on the budget.
• projected budget presented in the Governor's January budget.

Summary: The Assembly Budget Subcommittee on Health heard updates on five health-related budget items. First, members reviewed state support for distressed hospitals and health facilities. The California Health Facilities Financing Authority and HCAI described the Distressed Hospital Loan Program as a lifeline for 16 hospitals, many of which remain financially strained and are expected to seek loan forgiveness rather than repayment. Speakers cited reduced contract labor, new service lines, strategic partnerships, and the reopening of Madera Hospital as signs of progress, but also warned that federal policy changes under H.R. 1 will likely increase uncompensated care and pressure emergency departments. Public commenters from hospital, dental, and consumer groups supported additional funding, including a request to refresh the program with another $300 million. The committee then heard HCAI’s update on the California Rural Health Transformation Program, a five-year federal initiative funded at $233.6 million for California. HCAI said the program will focus on rural care models, workforce development, and health technology, with grants to be rolled out on a fast timeline and all funds obligated by October 30, 2026. Members raised concerns about rural provider capacity to apply for grants, and HCAI said it will use a third-party administrator, a technical assistance center, webinars, and other supports to help applicants. HCAI also presented its budget request for the health care payments database, seeking ongoing non-General Fund support to continue operations and expand data, including pharmacy benefit manager data. The Emergency Medical Services Authority presented three budget change proposals: funding to replace disaster medical services fleet vehicles, funding for IT security work, and additional positions for HR, enforcement, and legal workload. A member also raised concern that EMSA has not yet completed the annual ambulance rate reporting required by AB 716, and EMSA said it remains committed to the requirement but lost prior funding through later budget reductions. Covered California reported that it is still finalizing its own budget, but expects a lower operating budget due to efforts to reduce baseline costs and align spending with actual expenditures; it also projected enrollment declines tied to the expiration of enhanced premium tax credits, H.R. 1, and federal rule changes, while noting that revenues may still rise because premiums are expected to increase. Finally, the Department of Managed Health Care outlined budget proposals tied to menopause coverage and education, PBM licensure and enforcement under AB 116 and SB 41, credentialing reforms under AB 1041, and prior authorization reporting under SB 306. Public testimony generally supported the menopause and PBM proposals, while also urging clearer language and attention to Medi-Cal parity. The hearing concluded after public comment, including additional advocacy for sickle cell services and rural health workforce funding.

Transcript Highlights:

• It puts in statute... ...be on property tax reform. It does two things.
• A significant amount of our taxing entities' budgets go toward paying people.
• I know at least in school districts, it's like 80% of the budget.
• And gas prices really affect our school's transportation budgets. Sure.
• And gas prices really affect our school's transportation budgets. Sure.

Summary: The House met after a quorum was established and began with several introductions of special guests, including job shadows, 4-H participants, and interns. The chamber then moved to House Bills for Perfection, taking up HB 1707, which would stop sales tax from being imposed on credit card processing fees charged to vendors. Members asked for clarification about the bill’s scope and the title amendment, and the bill sponsor explained that the measure simply prevents tax from being charged on those fees. HB 1707 was then ordered perfected and printed. The House next considered HB 2819, a bill responding to the end of penny minting by authorizing rounding of cash sales to the nearest five cents. Supporters said the bill would give businesses a clear legal framework and reduce compliance risk. The chamber adopted the committee substitute and ordered the bill perfected and printed. Members then took up HB 2103, a property-fraud and notary-fraud bill aimed at strengthening penalties, requiring warning signs in recorder of deeds offices, and speeding court review for alleged victims. Supporters said it was needed to deter fraudulent deed filings and protect homeowners, while opponents argued it focused too much on notaries and recorders rather than the people committing the fraud. The committee substitute was adopted and the bill was ordered perfected and printed. The House also debated HB 1800, which would lower the inflationary cap on certain property-tax revenue growth from 5% to 3%. The discussion centered on whether the change would protect taxpayers or reduce funding for schools, fire districts, libraries, and other local services. An amendment was adopted that broadened the title and added property-assessment language, and the bill was then ordered perfected and printed. Finally, the House considered HB 2600, dealing with ambulance district consolidation and governance. The bill was described as a response to struggling rural EMS systems, with provisions for consolidation plans, public hearings, and voter involvement. An amendment modified the process for subdistricts, at-large districts, timing, and merger procedures, and the committee substitute as amended was adopted and ordered perfected and printed. The House then moved to announcements and adjourned until the next scheduled meeting.

Transcript Highlights:

• In the FY 2025 budget, the Army increased funding for barracks maintenance problems, but the effects
• He will be handed a budget that has not kept pace with inflation.
• The Army continues to face a multi-year trend of flat budgets, which has forced Army leaders to fund
• Department of Homeland Security (DHS), and I am a consistent supporter of a big. increase in DHS' budget
• We put in place bipartisan reforms that had the support of 65 senators.

Committee: Senate Senate Armed Services Subcommittee on Personnel

Transcript Highlights:

• 2025 Budget Act.
• This is my third year on budget and my last budget hearing.
• budget cycles.
• budget cycles.
• and budget staff for guiding us through this difficult budget process.

Summary: The Assembly Budget Committee met to consider the 2026 Budget Act, which leaders said was the negotiated compromise with the Senate and was expected to move to the floor that evening. Opening remarks emphasized that the plan balances the budget over two years, reduces the structural deficit, and builds reserves, while also protecting core services in the face of federal cuts. Jason Sisney outlined the legislative budget framework and the likely floor bills, including AB 109, SB 110, SB 122, and SB 125. Department of Finance representative Eric Khali said the administration appreciated the two-year balanced approach and supported the modification in SB 122, while noting the package uses additional revenues and new spending to soften or reject some proposed cuts. Most of the discussion focused on major spending areas. Members and subcommittee chairs highlighted protections and additions for health care and human services, including rejecting the proposed Medi-Cal asset limit change, delaying premium increases, restoring clinic and dental funding, supporting distressed hospitals and county indigent care, and expanding county eligibility staffing to handle H.R. 1-related workload. Education members described record or expanded support for TK-12 schools, child care, special education, community colleges, teacher recruitment, and higher education, including a change to extend Cal Grant eligibility to age 30 for some community college students. Housing and homelessness funding was increased for HAP, multifamily housing, and the low-income housing tax credit, while public safety members pointed to investments in victims’ services, restorative justice, and prison closure savings. Several members also raised concerns or priorities tied to the budget deal. Some praised the package as a moral document that protects vulnerable Californians, immigrant communities, LGBTQ residents, seniors, and people with disabilities. Others noted unresolved issues, including the MCO tax’s impact on districts, the need for more support for local journalism, arts, biotech R&D incentives, transit and GGRF-related concerns, and the need for continued work on Prop. 98 and long-term fiscal resilience. The vice chair cautioned that despite the current progress, the state remains vulnerable to revenue volatility and warned that the budget should build more resilience against a possible downturn. No formal vote was taken in the portion provided, but the committee was preparing the budget package for floor action and final negotiations.

Transcript Highlights:

• So is the budget still balanced without the bill?
• If the bill does not pass, the budget would have a gap.
• The budget would have a gap as well as the current fiscal year budget would have a sizable gap if the
• Those are three excellent elements of reform.
• They undermine our state budget already under stress.

Committee: Joint Joint Committee on Revenue

Summary: The Joint Committee on Revenue held a public hearing on H. 4975, Governor Healey’s bill to manage the impact of the federal “One Big Beautiful Bill” (OB3) on Massachusetts tax law and state revenues. Administration officials, led by Secretary of Administration and Finance Matt Gorowitz, said OB3 would otherwise reduce FY26 revenue by about $442 million and argued for a phased-in conformity approach that would preserve the current-year budget while still adopting selected federal business tax provisions over time. The proposal would phase in the research and experimental expenditure deduction first, delay other major corporate provisions for two years, extend the pass-through entity excise to income subject to the 4% surtax, add a one-year delay mechanism for future federal tax changes over $20 million, limit opportunity zone benefits to Massachusetts investments, and make smaller technical changes to DFML contributions and casino reporting thresholds. Committee members questioned the rationale for phasing in rather than fully decoupling, the effect on the budget if the bill did not pass, and the treatment of opportunity zones, the surtax, and future federal tax changes. Public testimony was split. MassBudget, Progressive Massachusetts, and several labor and public-sector groups urged the committee to permanently decouple from the federal corporate tax changes rather than delay them, arguing that the bill would still send state revenue to corporate tax breaks, often for investments outside Massachusetts, and that the state should protect funding for schools, health care, human services, and other public services. The Massachusetts Society of CPAs supported the administration’s timing and the research-and-development provisions, citing filing deadlines and the importance of certainty for businesses and startups. Business and tax experts also testified that rushed conformity can create revenue losses and that the governor’s review-and-delay framework was a prudent improvement, though some said decoupling should be the default if the Legislature does not act. Unite Here Local 26 testified against sections 3 and 4, which would raise the slot-machine jackpot reporting threshold from $1,200 to $2,000, arguing the current threshold helps with problem-gambling intervention, preserves slot attendant jobs, and generates revenue. Several union leaders, including the Massachusetts Teachers Association, AFT Massachusetts, SEIU 509, the Massachusetts Building Trades, the AFL-CIO, and 1199 SEIU, urged permanent decoupling, warning that OB3’s federal tax cuts and related spending reductions would worsen budget pressures, harm public services, and shift costs onto workers, patients, and schools. No votes were taken at the hearing.

Transcript Highlights:

• Manny Trujillo, our Budget Director, and Anna Marino Guerrero.
• Staff managing our budget bureau, they're the ones that put all of this together.
• Our budget request asked for a $1.9 million increase.
• I'll just think back to August when you all... ...adopted budget guidelines for LFC.
• Yes, because it's a recurring cost, because you're changing the budget. Thank you.

Transcript Highlights:

• However, this budget does the opposite.
• plan for 2020. 25-26, the budget year.
• budget change proposals.
• But it's not going to be in time for this budget.
• It's never going to match up to our budget. Oh sure.

Transcript Highlights:

• So you're against the budget? Against the budget, okay. Yes, okay.
• While this budget isn't perfect, and no budget ever is, this budget delivers for hardworking Arizonans
• While this budget isn't perfect, and no budget ever is, this budget delivers for hardworking Arizonans
• budget.
• The reforms that we secured in this budget are going to drive down those error rates, and not only will

Summary: The joint House and Senate Appropriations committees met to hear the FY 2027 budget package, beginning with the General Appropriations Act (HB 4154/SB 1847). Staff outlined the overall budget, including one-time fund transfers, lump-sum reductions, funding for state employee health insurance, school facilities, corrections, flood and wildfire relief, education and child care, and other ongoing and supplemental items. Members briefly discussed the absence of a requested $1.5 million for the oversight office, but the chair said no amendments would be taken in committee and that only limited technical changes were likely later in the process. Public testimony on the feed bill was largely supportive but focused on specific funding concerns. Testimony highlighted school safety funding, Alzheimer’s services, small business tax expensing provisions, disability oversight for group homes, county use of opioid settlement dollars, adult education/community college funding, victim notification funding, and ESA oversight. Several speakers praised the budget for funding DDD and other services, while others opposed or sought changes to items such as the COMIT group home monitoring program, Maricopa Community Colleges’ lack of operating aid, and a possible cut to the victim notification program. The chair repeatedly emphasized that changes to the negotiated budget would be difficult and should be routed through leadership. The committee then moved quickly through the remaining budget reconciliation bills. Staff summarized bills covering amusement and wagering, capital outlay, commerce, criminal justice, environment, health care, higher education, human services, and K-12 education. Notable provisions included continued wagering assessments, highway and building renewal funding, defense innovation and economic development changes, corrections and wrongful conviction provisions, groundwater and water banking measures, health insurance oversight and opioid settlement provisions, higher education funding and ABOR operating caps, SNAP and housing trust fund changes, and a 2% inflation increase for K-12 formula components. The K-12 bill also included a biometric school safety pilot and a child sexual abuse prevention pilot. No votes were taken in the portion provided, and the chair indicated the committee would continue through the remaining bills.

Transcript Highlights:

• The total recurring revenue that we have available in the budget this year?
• And I had to reform it twice. increase as much as we'd like to do it.
• And I had to reform it twice.
• And I had to reform it twice.
• And this year's budget, it's all gone to other places.

Committee: Senate House Appropriations & Finance

Summary: The committee first discussed the state budget and employee compensation, focusing on the 1% pay increase proposal and the broader cost of state employee raises and benefits. Members noted that over the past several years the state has invested heavily in payroll, pension contributions, pay studies, and band realignments, and several senators argued that the 80/20 health insurance change and other benefit improvements amount to significant compensation increases even without an additional raise. Others cautioned that recurring revenue is limited, that recent revenue collections were weaker than expected, and that the state should be careful about committing to ongoing costs given possible economic slowdown, federal uncertainty, drought, wildfire risk, and the possibility of future budget pressure. The committee then heard extensive testimony on SB 177, a major economic development proposal centered on quantum computing, advanced energy, robotics, synthetic biology, and related technologies. Supporters described the bill as a large strategic investment intended to leverage New Mexico’s national laboratories, universities, and existing quantum workforce to attract companies, create high-wage jobs, and diversify the economy. Testimony emphasized that much of the quantum workforce would be skilled trades and technicians rather than Ph.D.-level researchers, and members asked detailed questions about whether the state would receive long-term returns, how intellectual property and clawbacks would be handled, and whether the package included recurring costs. Witnesses also explained the bill’s trade association and workforce-development components, and several senators raised concerns about energy use, water use, guardrails, and ensuring the state does not subsidize outside interests without benefits returning to New Mexico. After debate, the committee moved to table SB 177 indefinitely, with members noting that the funding and structure were already incorporated into House Bill 2. The motion passed on an 8-0 vote, with several members excused. The meeting then adjourned.

Transcript Highlights:

• that we're, Our workforce and social program reform that we really haven't spent much time on is benefit
• And Medicaid, on the federal law, that includes welfare reform, you could use that waiver...
• And so that fear, the siloing can produce a fear, the lack of knowledge, the lack of ability to budget
• The first is Path A, immediate reforms within the federal structure, within state authority that you
• reform of trying to model what should our safety net look like?

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Summary: The committee first heard from Arkansas Workforce Connections and the Department of Commerce about a package of nine federal waivers submitted to the U.S. Department of Labor under WIOA and Perkins. The officials said the waivers would give Arkansas more flexibility over governance, funding, affiliate centers, and program rules, and that the state expects a response by August 29. They said the package is modeled more closely on Louisiana’s approved waivers than on states with more denials, and outlined a possible transition plan if approved, including a transition committee, policy changes, board training, staffing, and follow-up legislation. Members asked about whether the waivers would affect services for people with disabilities; the officials said not directly, because the waivers focus on WIOA Titles I and III rather than vocational rehabilitation under Title IV. The committee then focused on “benefit cliffs” and work disincentives in safety-net programs. Researchers from the Georgia Center for Opportunity and the Alliance for Opportunity explained how earnings loss rates from taxes and benefit phaseouts can exceed 50%, 75%, or even 100%, making additional work or promotions financially unattractive. They presented Arkansas-specific modeling showing multiple cliffs and stacking effects across SNAP, Medicaid/CHIP, LIHEAP, WIC, reduced-price lunches, child care, and housing assistance, and argued that child care and health coverage create some of the largest disincentives. They suggested policy options including SNAP demonstration waivers, child care subsidy redesign, TANF outcome-based funding, Medicaid premium assistance and health savings accounts, and a possible small-scale pilot to test a more integrated safety net. Heather Webb of Arkansas Family Alliance and Molly Palmer of the Heart of Arkansas United Way added testimony from families, employers, and nonprofits. Webb described a working mother who lost Medicaid and a housing subsidy as her income rose, saying the cliff left her stressed despite earning more. Palmer said Arkansas’s ALICE population often works multiple jobs and still cannot meet basic living costs, and that employers report recruitment and retention problems when workers face benefit cliffs. Members asked for more data on savings and program impacts, and the witnesses said they could provide Arkansas-specific modeling and scenario analysis. The meeting ended with discussion of public-private partnerships, employer-sponsored insurance premium assistance, marriage penalties, and the need to coordinate or consolidate fragmented programs before adjourning.

Transcript Highlights:

• As I mentioned, our budget increase largely reflects non-discretionary spending As I mentioned, our budget
• The governor's budget reflects that promise.
• budgets and other parts of our big picture.
• Our final slide is our budget request.
• So with respect to our FY27 budget request, I'll start by saying that our budget appropriation is set

Committee: Joint Joint Committee on Ways and Means

Summary: The Joint Committee on Ways and Means held a Health and Human Services budget hearing in Clinton, with opening remarks from Chairs Meg Kilcoyne and Robin Kennedy, local officials, and many House and Senate members introducing themselves. The hearing focused on Governor Healey’s FY27 EOHHS and MassHealth budgets, with repeated themes of rising health care costs, federal funding uncertainty, workforce shortages, and access to care in underserved regions. Members also raised concerns about primary care shortages, rural and regional disparities, behavioral health access, maternal health, food insecurity, and the impact of federal policy changes on Massachusetts programs. EOHHS Secretary Kiame Mahaniah said the FY27 EOHHS budget totals $33.7 billion, reflecting mostly non-discretionary growth from health care costs, labor costs, caseload increases, and provider rate pressures. He highlighted targeted investments in foster care, family resource centers, maternal health, youth services, nutrition programs, immigrant legal services, and human service workforce rates, while warning that federal actions could strip roughly $3.5 billion annually from the state’s health care funding. In response to questions, he defended the administration’s cooperation with federal audits and program integrity efforts, discussed the primary care crisis, and said the state is trying to preserve core services while preparing for a more difficult FY28 budget cycle. MassHealth Undersecretary Mike Levine then described two major FY27 challenges: double-digit cost growth and the expected effects of the federal One Big Beautiful Bill Act. He said MassHealth’s proposed $22.7 billion gross budget includes a 7.5% increase and relies on a moratorium on new expansions plus targeted reductions, including a $1,000 annual adult dental cap, ending GLP-1 coverage for weight loss only, reducing care management to peer-state levels, and work groups to slow growth in PCA, adult foster care, and adult day health spending. Members questioned the impact on Boston Health Care for the Homeless, preventive care, and regional access; Levine said the changes are meant to preserve sustainability, that children and certain disabled populations remain protected, and that the administration will continue working with providers, advocates, and the Legislature on implementation and longer-term reforms.

Transcript Highlights:

• And in the face of a structural budget deficit, as we've been talking about this week, and the cuts and
• deficit and the legislative budget plan proposes to underfund schools by $3.9 billion.
• The Legislature needs to look at all options to stabilize the budget and prevent cuts in the future.
• If California examines every line item in the budget every year, the least we can do is examine the huge
• It's disturbing, considering we know that when people are on a tight budget, they may do things like

Summary: The Assembly Revenue and Taxation Committee met as a subcommittee, then later established a quorum and heard several tax-related bills. Chair Gibson reviewed committee procedures, including the suspense file for bills with revenue impacts over $150,000. SB 881 by Sen. McNerney would extend the farmer-to-food-bank tax credit through 2032 and the emergency food for families voluntary tax contribution through 2033; supporters from food banks, agricultural groups, local governments, and climate organizations said it would reduce food waste and help address food insecurity, with no opposition on the record. The bill was moved to suspense. SB 1406 by Sen. McNerney would target the so-called Montana tax loophole used to avoid California vehicle taxes and fees; supporters said it would recover up to $20 million annually and improve enforcement, while an opposition group warned the shell-company language could affect legitimate small businesses and passive owners. That bill was also sent to suspense. SB 1349 by Sen. Gonzalez would direct the Legislative Analyst’s Office to review major state tax expenditures and evaluate whether they are meeting their intended goals. Supporters, including the California Teachers Association, tax reform advocates, school employees, and local governments, argued that California’s roughly $94 billion in annual tax expenditures need more accountability, especially given the state’s budget pressures. The committee approved SB 1349 on a due-pass-as-amended motion to the Assembly Appropriations Committee. The committee also approved two consent items, SB 1436 and SB 1437, on a due-pass motion. Later, SB 1249 by Sen. Richardson proposed a $3,000 tax deduction for seniors ages 86 to 90 through 2032, with supporters from LeadingAge California saying it would help older adults cope with rising costs; the bill was referred to suspense. SB 1151 by Sen. Cervantes would codify infant formula as a food product for sales tax exemption purposes; the author and supporters said it would protect families from uncertainty and preserve tax relief for an essential product. Members discussed the high cost of formula, and the bill passed on a due-pass-as-amended motion to Appropriations. The committee then completed its business and adjourned.

Transcript Highlights:

• That is the high-level highlight of this budget.
• Chair, and thank you for this good budget to the staff for putting this good budget together.
• I know that the Senate budget, there's $6 million of Schools of Hope in the Senate budget, but there's
• not $6 million in the House budget.
• I don't believe that's reflected in this budget before us.

Committee: Senate Appropriations Committee on Pre-K - 12 Education

Transcript Highlights:

• </c><01:06:01.039><c> where</c><01:06:01.280><c> they</c> reform issued a statement where they reform
• And in again according to this budget.
• It's a budget session.
• It's a budget session. We really reason. It's a budget session.
• The first one is mandatory re-entry supervision reform.

Summary: The House convened with an invocation and pledge, established a quorum, approved the prior journal, and received committee reports on several bills. Reported measures included House Bills 1 and 2 from Appropriations and Revenue, along with bills on animal control officers, emergency services revenue, postsecondary education, proactive postsecondary admission, vehicle lights, motor vehicle operation, motor vehicle dealers, and machine gun conversion devices. The chamber also took up Senate Bills 52 and 124 for concurrence, and House Bill 1 was moved from rules to the orders of the day for immediate action. The House then considered House Bill 568, which would regulate public adjusters by prohibiting new licenses, allowing renewals for current licensees, imposing conflict-of-interest and contract requirements, capping fees at 5%, and barring adjusters from negotiating claims. Supporters described it as a consumer-protection measure responding to complaints and investigations, especially after recent storm-related exploitation. The bill passed overwhelmingly, 95-1. The House next debated House Bill 1, which would opt Kentucky into the federal education freedom tax credit program and authorize the Secretary of State to administer the state’s participation without using state general funds. Supporters argued it would bring federal scholarship dollars into Kentucky for K-12 students, including public school students, and could generate significant private donations for scholarship-granting organizations. Opponents raised concerns about shifting resources away from public education, the speed of the process, and a proposed waiver of Eleventh Amendment immunity. A motion to table the bill failed by a wide margin, and members continued debating the bill and its implications for public schools and state sovereignty.

Transcript Highlights:

• Current budget year or the budget we're considering this year, but it's important to remember a couple
• For CalFresh, the Governor's budget reflects a net increase of $300 million General Fund in the budget
• in the 2025 Budget Act.
• The budget reflects them?
• As mentioned before, the governor's budget maintains mostly a workload budget.

Summary: The Senate Budget and Fiscal Review Subcommittee held an oversight hearing on the impacts of H.R. 1 on California’s safety net, focusing on Medi-Cal and CalFresh. The chair and vice chair framed the issue as a major federal disruption that would reduce benefits and shift costs to the state, counties, hospitals, and other local systems. The first panel included the Legislative Analyst’s Office, the Department of Finance, the UC Berkeley Labor Center, and the Food Research and Action Center, each describing projected enrollment losses, higher state and county costs, and implementation challenges. The LAO outlined H.R. 1’s main changes: new and expanded work requirements, more frequent eligibility redeterminations, restrictions on certain non-citizen eligibility, and financing changes affecting provider taxes and federal matching rates. The LAO estimated that 1 to 2 million people could be disenrolled from Medi-Cal and more than 600,000 could lose CalFresh, with additional costs from reduced federal support and possible state and county administrative burdens. The Department of Finance said the Governor’s budget includes about $1.4 billion General Fund in 2026-27 to respond to H.R. 1, with larger out-year reductions in federal funds and projected Medi-Cal caseload losses of up to 2 million by 2029-30. The UC Berkeley Labor Center projected up to 3 million Californians could lose full-scope Medi-Cal by 2028 when H.R. 1 is combined with state budget changes, while noting the state could choose policies that would reduce some of those losses. The Food Research and Action Center warned that CalFresh cuts and time limits would increase hunger, worsen health outcomes, and strain local economies and emergency systems. Members questioned the witnesses about procedural disenrollments, regional variation, the overall growth in Medi-Cal spending, the future of the MCO tax, the CalFresh error rate, and the downstream effects on hospitals and county indigent care. Several senators argued that the federal law was driven by tax cuts for high-income earners and would disproportionately harm low-income Californians, immigrants, and communities of color. Administration witnesses said some impacts are still being analyzed, that counties and departments are working on implementation, and that the Legislature may need to use statute, reporting, and oversight tools as federal guidance develops. No votes or formal actions were taken during this portion of the hearing.

Transcript Highlights:

• House Bill 415 and HCR 2051, which you'll be hearing after, is a common-sense reform that brings parity
• These reforms have been tested. I want you to know that... ...just like other states do.
• These reforms have been tested.
• And finally, what I'll say is that it's smart reform...
• And finally, what I'll say is that it's smart reform.

Committee: House House Federalism, Military Affairs & Elections Committee of Reference

Summary: The committee met with all members present, temporarily replacing Vice Chair Keshel with Representative Taylor, and held HB 4014 at the sponsor’s request. It then heard HB 415, which would extend existing state rules on paid petition circulators and initiative/referendum disclosures to municipal and county measures, require paid circulators to display identifying information, and require local measures to disclose expenditures and revenue sources. The sponsor and supporters, including the Arizona Chamber of Commerce, argued the bill would improve transparency and keep initiatives driven by Arizona residents; the bill passed 5-2. The committee also heard the mirror resolution, HCR 2051, which passed 4-3. The committee next considered HCM 2010, urging Congress to propose a constitutional amendment repealing the Seventeenth Amendment and returning selection of U.S. senators to state legislatures. The sponsor argued it would restore state sovereignty and accountability, while opponents raised concerns about direct democracy and the practical problems that led to the Seventeenth Amendment. The motion initially appeared to pass 4-3, but after a vote correction and a present vote, the measure ultimately failed. The committee then took up HB 2940, a complex AHCCCS/DES bill aimed at tightening eligibility verification, expanding competition in managed care contracting, and creating a unified eligibility rules engine. The sponsor said it would improve fiscal discipline and competition; AHCCCS and health plan representatives said many verification steps already exist, some provisions would add cost or duplicate federal/state processes, and the bill would significantly alter the managed care model. Despite those concerns, HB 2940 passed 4-3. Later, HB 2874 passed unanimously 7-0. That bill would ease termination requirements and penalties for candidate committees, PACs, or parties that never received contributions and later file termination statements. The committee then heard HB 467, which would require county recorders to display certain voter status information in precinct registers, signature rosters, or electronic poll books; after testimony from county officials and the Association of Counties, the committee adopted a verbal amendment changing “shall” to “may” and passed the bill 5-2. Finally, HB 2775, as amended, passed 4-3. The bill would bar state and local governments from using state resources to implement or enforce rules or policies of international organizations, and the amendment added restrictions on Arizona public universities’ dealings with certain foreign entities, with ABOR given review authority. Supporters framed it as a sovereignty and anti-foreign-influence measure, while the amendment’s removal of rulemaking authority was cited as important to the vote in favor.