Transcript Highlights:

• So let me clarify what I need and what I am requesting.
• I consider the governor's budget dead on arrival.
• So, for example... ...to what is in the '26 budget.
• I'm not saying that Ducey had a bad budget team by any means.
• budget committee we are adjourned No other items.

Keywords: 1182, all

Transcript Highlights:

• I'm also here to respectfully request $75 million for YE and HY in the OES budget.
• I'm also here to respectfully request $75 million for YE and HY in the OES budget.
• I respectfully request the inclusion of $100 million in the May Revision budget to address the gap in
• I respectfully request the inclusion of $100 million in the May Revision budget to address the gap in
• I would like to respectfully request $100 million in this year's final budget negotiations to support

Keywords: 987, senate, all

Transcript Highlights:

• We're just requesting your approval of this request to be included in the budget bill drafts.
• We're just requesting your approval of this request to be included in the budget bill drafts.
• I'm looking at the medical monetary sanctions receipts and budget request, so is that part of this contract
• And if they don't meet that performance, then they... ...budget request.
• That's an increase of 46 million from the budget, so is that the request for new money? Yes, sir.

Summary: The committee first considered revisions to the JBC rules, which staff said were all prompted by acts passed in the 2025 legislative session. The rules were adopted without objection. Members then received a balanced budget presentation from DFA Secretary Jim Hudson on the governor’s FY27 proposal, which he said was built around three priorities: limiting state government growth, continuing investments in education, and advancing income tax cuts. He highlighted major additions for education funding, EFA growth, pay plan costs, higher education productivity funding, drug task forces, corrections medical costs, the governor’s 1033 initiative, SNAP error-rate reduction, and Medicaid sustainability, while also explaining a new A/B funding category structure intended to prioritize recurring costs and preserve room for tax cuts. Members questioned Hudson about the cost of income tax reductions, the constitutional balanced-budget requirement, education funding, the Educational Adequacy Fund, Medicaid trust fund balances, and the impact of federal changes on Medicaid and SNAP. Hudson said each tenth of a percent income tax cut would cost about $58 million, the budget remained balanced, public education would still receive historic increases, and the Medicaid trust fund would be monitored closely with additional set-asides proposed. He also said the FY27 SNAP administrative cost increase would be about $18 million. The committee then heard from the Division of Higher Education, which reported institutions were 2.61% more productive overall and that the budget recommendation followed the statutory productivity formula. Questions focused on why some institutions were receiving decreases or large increases, how the formula works, and how the new return-on-investment metric and committee composition would affect future funding. The committee approved several higher education-related actions, including personnel changes for nine institutions and special language for North Arkansas College’s move into the University of Arkansas system. Staff then walked members through the higher education appropriation summary, explaining large percentage increases at several institutions were tied to federal funds or corrected carry-forward issues, including the U of A School of Mathematical, Sciences and the Arts, South Arkansas College, SAU Tech, ASU Mountain Home, and ASU Newport. Members also discussed UAPB’s 1890 extension program and the University of Arkansas Division of Agriculture’s land-grant matching funds; officials said UAPB’s recommendation was being aligned with actual spending and that the Division of Agriculture’s Smith-Lever and Hatch matches were included within its overall appropriation. The committee ultimately adopted the Higher Education Coordinating Board’s recommendations for all institutions and then moved on to the Department of Corrections section, with the chair outlining how the committee would proceed through those appropriations by section.

Transcript Highlights:

• Even though the Governor's budget proposal is balanced for the 2026–27 budget year based on the borrowing
• the limited budget condition.
• We do have a structural problem with our budget. We do have a structural problem with our budget.
• The budget proposal before you today requests $400,000 for program delivery.
• The governor's budget requests $3.8 million for five new and continuing low-cost accommodation projects

Summary: The Senate Budget Subcommittee on Resources, Environmental Protection, and Energy convened for its first hearing and heard an overview from the Legislative Analyst’s Office and the Natural Resources Agency. The LAO emphasized California’s strong current revenues but warned of a structural budget problem, projected out-year deficits, and the need for a high bar on new spending. It generally supported the administration’s Proposition 4 spending plan as reasonable and consistent with bond requirements, while urging legislative oversight and caution about using special funds and adding ongoing commitments. Secretary Wade Crowfoot responded with an overview of climate, wildfire, water, coastal, and conservation challenges and highlighted progress under the Newsom administration, including clean energy growth, wildfire resilience investments, land conservation, tribal co-management, and outdoor access initiatives. He also discussed federal staffing cuts affecting California’s response capacity and said the state has had to fill gaps in flood forecasting, land management, and park access. Members then questioned the secretary about the Delta conveyance tunnel and broader water reliability issues. Crowfoot said the project remains important, is being pursued as a beneficiary-pays project, and is moving through the State Water Resources Control Board’s permitting process, while also stressing that it is only one part of a broader water strategy that includes levee strengthening, subsidence, groundwater storage, recycling, and conservation. Senators also raised concerns about permitting delays, invasive species, and the impact of position cuts on agency capacity; Crowfoot said streamlining is needed but that staffing remains essential. The committee then moved to the Department of Parks and Recreation, where Director Armando Quintero described the state park system, tribal agreements, wildfire and deferred maintenance work, and outdoor access programs such as the State Library Park Pass and Adventure Pass. The LAO recommended rejecting the proposed ongoing $6.75 million General Fund transfer for the library park pass, arguing it did not meet the high bar for new ongoing spending, but several senators strongly supported the program as a low-cost way to expand access. Members also pressed Parks on reservation system problems and campsite no-shows. Department staff said they are updating website guidance, working with the reservation vendor, and implementing new no-show and reservation-modification rules effective July 1, including penalties for repeated no-shows and immediate reopening of vacant sites. The committee then heard a low-cost accommodations proposal, which Parks said would fund planning and construction at several sites using Proposition 68, reimbursements, and donations; the LAO said it had no concerns. Finally, the new director of the Department of Fish and Wildlife, Megan Hurdle, introduced herself and outlined the department’s mission, staffing, service-based budgeting, and Proposition 4 requests, including funding for salmon genetic tagging, hatchery repairs, and public access improvements. She said the department is focused on biodiversity, permitting streamlining, law enforcement, and human-wildlife conflict prevention, and noted that the agency is still updating its service-based budgeting analysis to identify gaps and priorities.

Transcript Highlights:

• For inviting me here to present the FY27 budget requests on behalf of the state system of higher education
• This budget request that I'm presenting today was created in close consultation with the state regents
• The state regents have a constitutional duty to submit a budget request to the legislature each year
• I will now go into additional detail regarding specific components of our budget request.
• The state regen The budget request includes $13.5 million in investments for strategic initiatives to

Keywords: 914, all

Transcript Highlights:

• budget.
• budget.
• At this point, there are no Senate district requests in the budget, but there's a chance that we will
• At this point, there are no Senate district requests in the budget, but there's a chance that we will
• Requests are in the budget from individual caucuses, but not from individual members.

Keywords: 987, senate, all

Transcript Highlights:

• Yes, I see that the budget request is a significant increase in that area.
• request is.
• Institutions, I do want to highlight that you'll see what they requested in their budget.
• Because you don't put capital in a budget request, I think they were doing it more to make sure that
• A couple of slides, and then I'm going to go into what the budget request is for that.

Keywords: 924, joint, all

Transcript Highlights:

• We urge the legislature to support the $500 million budget request from the California Public Hospitals
• We're continuing to review the specific budget requests to assess whether they're appropriately aligned
• For contract resources, the remaining resources that we're requesting are really for budget year, given
• Budget Act of 2025.
• We're co-sponsors of the Food for All campaign and are in support of the Food for All budget request

Summary: The subcommittee heard an extended briefing on the impacts of H.R. 1 on Medi-Cal and CalFresh, followed by testimony from the Legislative Analyst’s Office and county officials. DHCS described major Medi-Cal changes in H.R. 1, including work/community engagement requirements, six-month redeterminations, reduced federal matching for some emergency services, narrower immigrant eligibility, reduced retroactive coverage, and limits on provider taxes and directed payments. CDSS outlined CalFresh changes, especially the expanded able-bodied adults without dependents time limit, reduced exemptions and waivers, and the new federal-state-county administrative cost split. Both departments emphasized implementation plans, automation, outreach, and county coordination, while acknowledging significant expected coverage losses and administrative burden. The LAO and an independent policy expert discussed how H.R. 1 could increase demand on county indigent care systems and public hospitals as people lose Medi-Cal. They reviewed the history of county indigent care, 1991 realignment, and AB 85, explaining that counties already rely on a patchwork of funding and that current realignment revenues are often used for public health rather than indigent care. They warned that counties may face large increases in uninsured residents, with wide variation in how counties respond, and raised concerns about equity, financing, and whether a more standardized state-county program should be created. Committee members pressed witnesses on county funding, exemptions, homelessness, older adults, undocumented residents, and the effect of administrative burden versus true ineligibility. County representatives from Los Angeles, Santa Clara, Tulare, and San Bernardino described the expected local impacts and asked for additional state support. They said H.R. 1 would drive major losses in Medi-Cal and CalFresh enrollment, increase uncompensated care, strain eligibility staff, and worsen homelessness and food insecurity. Several counties urged the Legislature to fund eligibility workers, preserve enrollment, and consider a CalFresh match waiver; Santa Clara and San Bernardino also cited local tax measures and staffing reductions already underway. No formal vote or committee action was taken in the portion provided.

Transcript Highlights:

• We urge the legislature to support the $500 million budget request from the California Public Hospitals
• We're continuing to review the specific budget requests to assess whether they're appropriately aligned
• For contract resources, the remaining resources that we're requesting are really for budget year, given
• For contract resources, the remaining resources that we're requesting are really for budget year, given
• We're co-sponsors of the Food for All campaign and are in support of the Food for All budget request

Keywords: 987, senate, all

Transcript Highlights:

• budget.
• budget.
• At this point, at this point, there are no Senate district requests in the budget, but there's a chance
• District requests in the budget, but there's a chance that we will come back in August and deal with
• Requests are in the budget from individual caucuses, but not from individual members.

Summary: The Senate Committee on Budget and Fiscal Review heard the 2026-27 budget package, including AB 111 and AB 112 plus 16 trailer bills and two policy bills. Chair Laird described the budget as balanced over two fiscal years, with about $351.7 billion in total spending, $251.5 billion General Fund, and record reserves, while emphasizing investments in child care, homelessness, housing, Medi-Cal, education, courts, and other core programs. The Department of Finance presented each bill, outlining major items such as Medi-Cal adjustments tied to federal H.R. 1, child care and early learning funding, education and higher education investments, human services, developmental services, health, skilled nursing, resources, energy, transportation, housing, labor, state government, courts, taxation, and two policy bills on education governance and ballot measure placement. The LAO said it had no additional comments but was available for questions. The committee later achieved quorum and moved to member questions and comments, with no votes taken in the portion provided. Members largely focused on the budget’s fiscal structure and policy implications. Several senators praised staff and noted the compressed timeline, while Vice Chair Niello criticized the process as overly complex and burdensome. Senator Smallwood-Cuevas supported the budget but raised concerns about Medi-Cal changes for people with unsatisfactory immigration status, asking about access to care, the number affected, and county eligibility support; Finance said about two million people would transition to fee-for-service and that $39 million was included for care coordination, along with additional county eligibility funding. Senator Durazo said the agreement delayed, but did not resolve, cuts to immigrant health coverage, dental, and clinic payments, and argued that the budget did not create a true restoration mechanism. Senator Richardson highlighted hospital funding, public hospital definitions, DMV data protections, and court construction and maintenance needs, while Senator Grove questioned the sustainability of spending, the Medi-Cal savings assumptions, distressed hospital funding, Planned Parenthood transparency, developmental services changes, high-speed rail costs, and the property tax postponement program. Other members emphasized different priorities. Senator Blake Spear praised climate and parks investments, support for HAP homelessness funding with accountability, transit stabilization, and Care Court referral funding, while expressing concern about the lack of wildlife coexistence funding and long-term transit operating support. Senator Weber Pearson raised a technical concern in the health trailer bill regarding menopause language, arguing that the bill should refer to perimenopausal symptoms and should not narrow provider participation through contracting language. Throughout the hearing, Finance repeatedly explained that many of the budget’s savings came from reduced caseloads or delayed implementation of prior proposals, while some new spending was added to mitigate impacts and support administration of the changes. No final committee action or vote was shown in the excerpt.

Transcript Highlights:

• Our deep gratitude for our legislative champions and the members who supported our budget request, as
• Our deep gratitude for our legislative champions and the members who supported our budget request as
• I want to thank you, Chair Alvarez, for hearing the budget request on the Local News Fellowship budget
• I would also respectfully request that the Legislature provide direction to the CSU through this budget
• I'm here to ask you to fund the budget requests... ...and Executive Director of the CalBridge Program

Summary: The committee heard the May Revision presentation for the Assembly Budget Subcommittee on Education Finance, with public comment focused heavily on K-12 priorities such as universal school meals, kitchen infrastructure, food service and custodial support, youth leadership grants, Special Olympics funding, English learner support, universal pre-K, literacy investments, and concerns about community college funding shifts. Speakers also urged support for expanded learning, teacher recruitment and training, and maintaining or increasing funding for community colleges and student support programs. Finance and the LAO then reviewed the Proposition 98 outlook. Finance said the May Revision lowers the 2025-26 Prop. 98 guarantee to $114.6 billion, about $4.3 billion below January, due mainly to lower revenue estimates, with smaller effects from attendance and property tax changes. The administration also described rebenching for universal transitional kindergarten and a one-time rebench tied to Los Angeles fire-related property tax losses, along with changes to the Public School System Stabilization Account, deferrals, and updated COLA assumptions. The LAO said the budget relies too much on deferrals and one-time funds, creates a structural shortfall, and should instead align ongoing spending with the guarantee and preserve a reserve buffer. Members questioned the TK rebench and the shift of funding from community colleges to K-12, asking why it was being applied retroactively and how colleges would be held harmless. Finance said the changes align funding with where TK costs are being incurred and that reappropriation funding and other adjustments would offset impacts on community colleges. The LAO argued the historical split formula is outdated and should be abandoned in favor of budgeting around current priorities rather than fixed percentages. Members also raised concerns about draining the rainy day reserve and using deferrals, while the LAO said preserving reserves would better protect against future volatility. The committee then moved to specific K-12 and education proposals. Finance outlined May Revision changes including state operations adjustments for the Department of Education, technical trailer bill changes, a $100 million student teacher stipend program administered by Kern County, and updates to the charter school facility grant program. The LAO recommended rejecting the proposed increases for expanded learning, literacy coaches, and the student teacher stipend as currently structured, while supporting the minimum grant increase for expanded learning. Members expressed support for teacher recruitment efforts but questioned whether one-time funding can sustain ongoing programs and whether the student teacher stipend should be targeted to shortage areas or low-income communities.

Transcript Highlights:

• So how you move authorized funds, right—the budget, budget categories, either between budget categories
• There are two positions on the vacancy report that are being reclassified in the legislative budget request
• requests.
• I am challenging our budget subcommittees to dive into the budget and find real savings even in recurring
• operating budgets.

Summary: The subcommittee first heard a lengthy Auditor General presentation on the Department of Management Services’ fleet management operations. The audit found major problems with oversight, recordkeeping, policies, fee-setting, purchase and disposal approvals, public auction controls, and FleetWave system access and processing. Key findings included that 2,279 vehicles valued at more than $57 million could not be matched between FleetWave and FLAIR, disposal records were missing or incomplete, user access remained active long after employees separated, and the department had not documented a reasonable basis for its $1.75 per-vehicle monthly fee. Members expressed strong concern about the accuracy of the state’s fleet inventory and the risk of waste or misuse. DMS Secretary Allende said the department concurred with the findings, was working with the Auditor General, and planned corrective actions, including better training, clearer guidance, improved reconciliation, and possible centralization or pilot programs for fleet purchasing and management. The committee then returned to vacancy discussions with several agencies. The Division of Administrative Hearings said its two long-vacant judges of compensation claims positions had been hard to fill because of low pay and short reappointment terms, but the chief judge said the division could operate without them and offered those positions up as part of a reduction exercise. The Public Service Commission reported 42 vacancies but said statutory deadlines were still being met, though staff workloads and depth of analysis were affected. The commission also said vacancies help it manage salaries within its trust-fund budget. Members questioned whether some of those positions were truly needed given the lack of delays. The Florida Gaming Control Commission reported 29 vacancies, including a vacant chair that prevented appointment of an inspector general, and said the chair vacancy was a gubernatorial appointment issue. The acting executive director also said the commission’s compulsive gambling prevention program had lapsed after no responsive bids were received for a new contract, but an invitation to negotiate was nearly complete and a new provider was expected soon. The Public Employee Relations Commission reported that its caseload had more than doubled after Senate Bill 256, which increased union recertification work; it said it was meeting deadlines only with overtime and that the workload had not fallen despite decertifications. Members asked for follow-up data on union cases, vacancy needs, and whether some positions across agencies could be reallocated to better match workload.

Transcript Highlights:

• Colleen Gill with the Office of Planning and Budget.
• the non-discretionary adjusted standstill budget.
• It's a total increase of 2.8% to LDH's budget.
• But the budget number is significant, correct?
• And so we're here today to make that request.

Summary: The committee met to review budget and fiscal items, beginning with a roll call and a reminder about severe weather and the need to keep the meeting brief. Members first received the January fiscal status statement and certified the prior-year surplus at $577,073,871, with no changes from the prior month. The fiscal status statement was approved without objection. Staff then reviewed the five-year baseline budget and continuation/standstill budgets, noting projected imbalances in later years driven by revenue declines, including the redirection of motor vehicle sales tax, and by rising costs such as inflation and Medicaid adjustments. Representative Amadee asked about Medicaid growth and SNAP administrative costs, and staff explained that the SNAP federal match change is separate from Medicaid. The governor’s executive budget presentation focused on a third year of standstill budgeting, efficiency savings, and the impact of one-time reductions and agency reorganizations. Officials said the budget avoids recurring spending from nonrecurring revenue and incorporates savings from prior efficiency efforts. Major items discussed included funding for LA Gator vouchers, the high-impact jobs program at Louisiana Economic Development, DCFS modernization, corrections overtime and offender costs, Angola population growth, nursing home and MCO adjustments at LDH, and additional support for the MJ Foster Scholarship and Board of Regents systems. Members also discussed the distinction between state general fund and federal funds, the effect of inflation on specific purchases, and the use of surplus dollars, including deposits to the Budget Stabilization Fund and UAL paydown. No formal action was taken on the budget presentation. Later items included the FY27 expenditure limit calculation of $20.1 billion, up $953 million from FY26, and the annual comprehensive financial report, which received an unmodified audit opinion. The committee approved a BA-7 increasing federal funds for the governor’s office by $2 million for U.S. DOT-related infrastructure and rural transit work. It also approved Facility Planning and Control requests to add five higher education deferred maintenance projects and to combine two Baton Rouge Community College projects. CPRA received approval to extend contracts with Coastal Estuary Services and Access Sciences for monitoring and records-management services. The committee also approved a legislative intent clarification for a $500,000 appropriation to the New Orleans Recreational Development Foundation. The final major discussion was a presentation on a weighted caseload study for appellate and district courts. Judicial officials explained that the study updates an outdated formula used to assess judgeship needs, incorporates specialty courts and commissioners, and is intended as one tool in a broader collaborative process with the legislature. Members raised concerns about the number of judges, court funding, and how Louisiana compares with other states. No vote was taken on the study, but the discussion emphasized future collaboration on judicial resource allocation and possible structural changes.

Transcript Highlights:

• We expect President Trump's forthcoming budget request to Congress will propose significant cuts to funding
• We request that you reject the governor's proposed budget reduction to the University of California.
• Since this is a discussion on the proposed budget, I'd like to quickly review three specific requests
• Third, the University requests changes to the budget bill language that penalize the University with
• I'm here to ask you to fund the budget request submitted by Assemblymember Bonta (member_1507) and 12

Keywords: 988, house, all

Transcript Highlights:

• However, more substantive requests can be found for the institution�s request.
• The agency requests to increase their capital budget authority.
• This is an important request.
• Finally, two other opportunities in our budget... request I would like to draw your attention to are
• for this budget cycle.

Keywords: 1184, house, all

Transcript Highlights:

• that you would wish to debate and vote on separately, simply request that by request number.
• Now, this is a request not for federal authority, but a request for a transfer.
• So, Joe, on Request 2160, can you give us a little more detail about what the request is about, or why
• Chairman, I would move that we approve all four budget items as stated in the agenda, the funding requests
• I have had a request to separate the projects. I'll turn to... Request to separate the projects.

Keywords: 908, all

Summary: The Budget Section met with a quorum, approved the December 10, 2025 minutes, and received a general fund and revenue update from the Office of Management and Budget. OMB reported the state was about $2 million ahead of forecast biennium-to-date, with an estimated ending general fund balance of about $397.5 million. Joe Morset also reviewed balances in major funds, oil tax revenues, interest income, federal grant reporting, fiscal irregularities, the voluntary separation incentive program, vacancy savings, and the FTE pool. Members asked about the higher-than-forecast interest income, the effective oil tax rate and stripper-well production, the impact of temporary pay adjustments and vacancy savings, and whether the voluntary separation program could reduce institutional knowledge or shift duties to remaining staff. The committee then approved four Emergency Commission requests: $5.26 million for DPI to support an AI-enabled tutoring platform, $105,000 from the general fund contingency for Corrections GPS monitoring, about $1.963 million for HHS SPACES eligibility system upgrades tied to Medicaid work requirements, and about $1.2 million for SNAP eligibility IT improvements. Legislative Council reported remaining interim spending authority after those approvals, and NDIT gave an update on digital accessibility compliance efforts, saying the state has made substantial progress on websites and PDFs but that applications will take longer to remediate. NDIT also reported on the Infinite Campus student information system rollout, noting data migration remains the biggest challenge and that a supplemental vendor is being brought in to help get districts ready for summer go-live. Greg Hoffman then gave a brief update on NDIT’s operational fund, saying cash remains negative in PeopleSoft but accounts receivable keeps the fund functioning within federal limits. The Supreme Court reported on its new and vacant FTE funding pool, saying it has filled 7 of 10 new positions and has realized some vacancy savings, and Legislative Council provided a similar report for the legislative branch along with a reminder that budget action reports are available online. The Department of Transportation presented its Flexible Transportation Fund, explaining the fund’s allocation formulas and ranking process, and sought Budget Section approval for two projects over the $10 million threshold: a Medora city streets and sidewalk project and a Cass County bridge replacement. Members questioned whether funding Medora streets could set a precedent for city street reconstruction and whether the bridge application process fully reflects statewide needs. DOT said the projects were scored competitively and that the bridge list does not capture all deficiencies statewide.

Transcript Highlights:

• That was the request. If it's 15, then it's 15.
• She played the instrumental part in developing the appropriation request that we did, our budget projections
• So in addition to requesting the supplement, we really scrubbed our budget.
• Other revenue in our budget line 130.
• For FY27, these both budget requests kind of keep us on the track.

Keywords: 996, all

Transcript Highlights:

• </c><00:01:16.799><c> office</c><00:01:17.159><c> was</c> legislative budget office was legislative budget
• Traditionally, that means the enacted budget, most recent enacted budget, or the budget as provided in
• </c><00:12:01.680><c> at</c> from what was the understood budget at from what was the understood budget
• Can they request a classified note on their changes? You could request a classified...
• That was the request.

Bills: HF3

Keywords: legislative auditor, reporting, accountability, state finance, executive agency oversight, 1183, house

Transcript Highlights:

• Um, so diving into our budget request, uh, we made the governor's budget targets and the House didn't
• ><c> request,</c><00:05:42.080><c> uh,</c><00:05:42.160><c> we</c> diving into our budget request, uh
• , we diving into our budget request, uh, we made<00:05:42.560><c> the</c><00:05:42.720><c> governor's
• We provided that as requested, and that was put in the operating budget as the House passed.
• branch, and our efficiency budget did reflect what the governor requested at the time.

Keywords: 1191, senate, all

Transcript Highlights:

• Um, so I do have some remarks that are all geared in support of the Attorney General's budget request
• </c><00:26:09.200><c> request</c><00:26:09.840><c> and</c> attorney general's budget request and attorney
• So, we have a in our budget, we have a $2.5 million request, but the $1.5 million deficit request is
• That having been said, now, your budget request for this year?
• </c> your budget request for this year. your budget request for this year.

Keywords: Appropriations - Room 216, 13 January, 2026; 1:45 PM, 925, all