Transcript Highlights:

• projects.
• That means that's a match that does not include cash, so we have to fully pay for the federal project
• going on on the project as well.
• This number is determined by HHS for projected or to provide sufficient non-federal funding, with the
• to provide HHS for projected or to provide sufficient<03:40:56.000><c> non-federal</c><03:40:57.000>

Summary: The Department of Safety presented an overview of highway fund and unrestricted revenue collections, focusing on the Division of Administration, the Road Toll Bureau, and the Division of Motor Vehicles. Amy Newbery explained that the main unrestricted funding sources are highway funds and general funds, with highway fund revenue of about $263 million in FY 2024 and a FY 2025 projection of $261.2 million. She said revenue growth has been modest and has not kept pace with costs, creating structural deficits that required general fund transfers of $50 million in FY 2022-23 and another $10 million in FY 2024-25 to balance the fund. Jennifer Hall described Road Toll operations, including motor fuel tax collection at the distributor level, compliance enforcement, and licensing for fuel distributors, transporters, IFTA carriers, and oil discharge/pollution control. Members asked about IFTA, dyed-fuel enforcement, the possibility of using the state forensic lab for dyed-fuel testing, and whether audit positions had been filled; the department said it recently hired a part-time fuel enforcement officer, still uses IRS testing, could explore lab testing, and had no audit vacancies. Hall also discussed factors affecting fuel-tax revenue, including gas prices, crude oil forecasts, weather, tourism, GDP, and inflation, and said FY 2024 road toll revenue was $127.5 million, above plan, with FY 2025 projected at $127.71 million. The committee then turned to DMV-related revenues. Newbery said motor vehicle registration revenue was $93.1 million in FY 2024 and is projected at $90.4 million in FY 2025, with the state share going directly to the highway fund. Members asked about the state/town fee split, the five-year registration cycle dip, the distribution of registration revenue by vehicle weight category, and the impact of electric-vehicle surcharges; the department said the five-year dip is still occurring and will fade over time, and it would follow up on the weight-category breakdown. The presentation also noted that driver-license revenues have stabilized, inspection revenues remain steady, plea-by-mail revenue was added to the highway fund in FY 2024, and general fund revenues tied to the department are relatively small and have declined as some functions moved to OPLC. No votes or formal actions were taken.

Transcript Highlights:

• This project needs to go in, and this bill, SB 194, interrupts the ability to get this project in the
• This is an LADOT project intended to reduce the death and carnage on Forest Lawn Avenue project intended
• This project needs to go in, and this bill, SB 194, interrupts the ability to get this project in the
• Historical federal funding ends tomorrow.
• We're obviously in a moment of federal volatility, with retreat from the federal level, with budget cuts

Summary: The Assembly Budget Committee held a weekend informational hearing on the final 2026-27 budget package, with no votes taken. The Department of Finance presented 16 bills, including two budget bill juniors and 14 trailer bills, covering climate bond and greenhouse gas reduction fund appropriations, health care, education, housing, labor, transportation, wildfire mitigation, and technical cleanup items. Major items included funding for Proposition 4 climate programs, a state-only dialysis program for restricted-scope Medi-Cal enrollees, 988 crisis center governance and interoperability with 911, CalFood, child nutrition, workforce and housing programs, and a package of film tax credit changes. Trailer bills also addressed TK-12 and higher education technical changes, developmental services, early education, the 2028 Olympics, transmission projects, wildfire mitigation tax exclusions, and other implementation fixes. Members highlighted several provisions, including the extension of CalSHAPE deadlines for school HVAC projects, funding for geothermal and wildfire prevention, restoration of goat herder wage parity to support prescribed grazing, and support for state scientists’ labor contracts. There was also discussion of trauma recovery and training funding for women’s prisons, 988 and LGBTQ+ youth crisis services, and the need to address county indigent care and AB 85 technical issues in the future. Public commenters largely praised funding for transit, housing, food assistance, air quality programs, and film tax credit fixes, while some expressed disappointment over the lack of funding for part-time faculty office hours, county indigent care technical corrections, expanded immigrant food assistance, and additional support for certain health and energy programs. A major point of contention in public testimony was SB/AB 194, with one group opposing it as a threat to a Los Angeles street safety project near Forest Lawn Avenue, while supporters argued it was needed to ensure a transparent public process for roadway changes affecting cemetery access and traffic. Other commenters supported or criticized specific budget items such as GGRF allocations, CalSHAPE, the Demand Side Grid Support Program, the FARMER program, and funding for regional housing and transit agencies. The chair closed by thanking members, staff, and the public, noting the committee’s work over two years and indicating the package would move to floor action the following week.

Transcript Highlights:

• It's not contributing to the... all these projects will have, the individual projects, the general plans
• The Deerodon Station Modernization Project in San Jose is a leading example of the type of public project
• The Deerodon Station Modernization Project in San Jose is a leading example of the type of public project
• It's a project with great long-term environmental benefits.
• at least will start to trust these projects. ...transportation projects in those zones so that the communities

Committee: Senate Transportation

Summary: The Senate Transportation Committee heard a series of bills focused on transportation planning, emissions, freight, and vehicle regulation. SB 1087 by Senator Cabaldon would modernize SB 375 regional climate and transportation planning by moving regional plan updates from every four years to every eight years, clarifying roles for CARB and the California Transportation Commission, and better aligning funding and guidelines. Supporters, including SCAG, MTC/ABAG, MPOs, local governments, and some environmental groups, said the bill would reduce duplicative planning costs and improve implementation. Opponents, including Coalition for Clean Air and the California Building Industry Association, warned it could weaken climate accountability, expand VMT-related burdens, and create housing and CEQA concerns. The bill passed 9-1 and was sent to Appropriations. The committee also heard SB 1315, which would require manufacturers to report software updates for semi-autonomous vehicle features to the Insurance Commissioner so the state can build data for future policy. There was no opposition testimony, and the bill passed 12-0. SB 1275 by Senator McNerney would replace the general fund portion of the state sales tax on motor vehicles with a one-time vehicle license fee so buyers could potentially claim a federal tax deduction; the LAO testified as a technical witness, and the bill passed 9-1. SB 1287 by Senator Hurtado would create a tax credit to spur private investment in short-line railroad infrastructure; supporters said it would improve safety, freight efficiency, and emissions, and it passed 12-0. The committee also approved SB 1423 by Senator Stern, which would streamline review for certain transit and rail projects that have already undergone extensive environmental review; it passed 8-1. SB 1064 by Senator Daly would reduce the frequency of clean truck checks for very low-mileage heavy-duty and off-road vehicles, and passed 12-0 after supporters said it would reduce unnecessary trips and costs while opponents awaited CARB analysis. SB 1375 by Senator Cortese would similarly reduce duplicative environmental review for qualifying major transit and rail projects, and passed 12-0. SB 1392, also by Senator Cortese, would expand the smog-check exemption for certain historic collector vehicles used mainly for shows, parades, and charitable events; classic car and lowrider advocates supported it, while air quality groups opposed it as increasing emissions. It passed 10-2. The committee also adopted the consent calendar, including SB 1213, by a 12-0 vote.

Transcript Highlights:

• We also have some good parameters in here to include a max of $100,000 for a project or 15% of the project
• Chair Acomb, Chair Swedzinski, it’s really on a project-by-project basis.
• I think there are certainly projects where this cost incentive would help make the project financials
• And I'm sure there's other projects that are retrofit-type projects also.
• c><00:16:16.399><c> payback</c> projects our the uh project payback projects our the uh project payback

Committee: House Energy Finance and Policy

Transcript Highlights:

• Contractors either price that risk, or they choose not to pursue projects, both of which drive project
• These projects, allowing funding for brackish groundwater projects in these protective zones, strikes
• The project is, from a project standpoint, the most time-efficient project that we can deliver.
• The Corpus project specifically was put on hold for a federal challenge to look at discharge into that
• It's the fact that there are multiple projects and, cumulatively, one project may be fine, but if you

Committee: Senate Water, Agriculture and Rural Affairs

Transcript Highlights:

• So our project team has been in place now, and that project team is listed on the slide deck here.
• Project is looking good."
• Some are federal, some are other.
• So, Pat, you know, federally were the entire state's rural from a federal perspective.
• the projects that you’re considering to be first-year funding appear to me to be multi-year projects.

Summary: The committee was called to order, the roll was taken, and the March 18 minutes were approved. Members then received several project and program updates, beginning with CHI St. Alexius’s behavioral health buildouts in Bismarck, Williston, and Grand Forks. St. Alexius reported that the Bismarck project remains on track for June 2027 completion, with demolition underway and final design work nearing completion. Williston reported construction is progressing, staffing recruitment is underway for psychiatrists and other staff, and an air handler replacement is creating a roughly $750,000 unbudgeted barrier that will slightly delay the timeline. Grand Forks reported its expansion is about 30% complete, with no major barriers beyond weather, and leaders said the project should be substantially complete in the first quarter of 2027. The Department of Health and Human Services then presented a series of budget and program updates. Donna Ockland explained several recent line-item transfers as technical corrections that net to zero and do not require new spending, then reviewed salaries, wages, and FTE counts, noting the department remains within its authorized staffing levels. Pat Rainer followed with an update on the Rural Health Transformation Program, saying 12 opportunities have been posted, 422 applications received, and $8.4 million obligated so far, with a goal of obligating the full $199 million by September. He described grants for workforce retention, rural rotations and housing, community gardens, school wellness, behavioral health promotion, safety net services, equipment, technology, EMS, and other initiatives, emphasizing that the program is intended to be transformational and tied to metrics. Members asked extensive questions about how rural eligibility is defined, how grants will support both rural facilities and hub hospitals, and how future years of funding will build on current awards. The committee also heard an update on certified community behavioral health clinics from Elena Zeller, who said North Dakota has been accepted as a demonstration state, implementation is underway in Williston, North Central/Minot, Fargo, and Dickinson, and care coordination and service counts are increasing. Rebecca Askins then reviewed SNAP payment error rates, saying the 2025 rate was finalized at 9.89%, with the state aiming to get below 6% through policy updates, training, data tools, and a quality assurance team. Members pressed her on the causes of the error rate, the role of the SPACES software system, and the need for accountability and improvements. Finally, Dirk Wilkie reported the state laboratory project reached substantial completion on June 12 and is on budget at about $69.95 million, though a service elevator had to be redesigned because it was too small for equipment.

Transcript Highlights:

• And that's just, that would be easy project.
• A recent example of a blended project is our Los Arroyos Rental Housing Project in Farmersville, where
• The first was a federally funded, documentation-required USDA farmworker project.
• projects.
• projects.

Committee: House Housing and Community Development

Transcript Highlights:

• However, the project also recently lost $4 billion in federal one-time funds.
• And the fact that you could have a project, a project that is approved, is being built...
• I hope it can happen because it's important for this project and other projects.
• The biggest propaganda against the project is the project itself.
• that we could put people to work doing lots of projects, infrastructure projects galore.

Summary: The Senate Transportation Committee held an informational hearing on the California High-Speed Rail Authority’s 2026 draft business plan, with testimony from the authority, the Legislative Analyst’s Office, and the High-Speed Rail Inspector General. Chair Cortese framed the hearing around the project’s recent changes: a new CEO, revised delivery strategy, proposed station and scope changes in the Merced-to-Bakersfield segment, the loss of major federal funds, and the authority’s push for private investment and ancillary revenue. He also raised concerns about financing risks, the proposed changes to the initial operating segment, and the Inspector General’s finding that the draft plan may be missing required statutory elements. Authority CEO Ian Chaudhry said the project is now in a more disciplined phase, citing major construction progress in the Central Valley, near-completion of right-of-way and utility work, and plans to begin track and systems procurement. He said the authority expects the Merced-to-Bakersfield segment to be completed around 2032-33, with broader Phase 1 service later, and argued that design optimization, direct procurement, and public-private partnerships could reduce costs and attract private capital. He also described plans for ancillary revenue from real estate, broadband, energy, and logistics, and said the authority is discussing station locations and value-capture tools with local governments rather than locking them in yet. Several senators questioned the legality and practicality of tax increment financing, utility relocation authority, transparency, and whether the project’s revised scope still meets high-speed rail standards and public expectations. The Legislative Analyst’s Office said the draft plan assumes major statutory changes, including changes to station locations and scope, and warned that the plan’s cost and schedule estimates depend on assumptions that may not materialize. LAO said the plan lacks transparency because it does not clearly disclose the assumed station changes, and it questioned whether even the shorter segment can be delivered within existing funding once borrowing costs and other risks are included. The office also noted uncertainty around future greenhouse gas reduction fund revenues and said ancillary revenues are not yet credit-worthy for financing. The Inspector General’s office said the draft business plan does not appear to meet several statutory requirements, including requirements added in AB 377, and reiterated that the final plan must address those omissions. Chaudhry said the authority would respond to the OIG’s findings in the final business plan and committed to resolving the compliance issues before final adoption.

Transcript Highlights:

• Because federal statutes, not only the lease form, which is a contract, but overall federal statutes
• So, in practice, the federal government is ultimately responsible for plugging federal wells.
• In fact, EPA projections were 40%. Mr.
• government, although the federal government has a blanket approval of this kind of project.
• Chairman McQueen, Representative García, the federal government has a rule for these kinds of projects

Committee: House House Energy, Environment & Natural Resources

Transcript Highlights:

• I don't care how small the project is or how large the project is. That's our prerogative.
• The smaller the project is or how large the project is, that's our prerogative.
• The innovation and project development fund provides support for statewide project governance, shared
• We don't have an actual number projected.
• No, because these are for specific projects.

Committee: All ALC-PEER

Summary: The committee met with a quorum, opened with a prayer recognizing the death of Reverend Jesse Jackson, and then worked through a series of appropriation and transfer requests. In Section B, it approved a $273,000 temporary appropriation for the Department of Labor and Licensing. In Section C, it approved two Infrastructure Investment and Jobs Act requests: $280 million for the Department of Transportation and $195 million for the State Broadband Office to support Arkansas BEAD broadband grants, including an extra help position. Members questioned the broadband awards, provider amendments, buildout timelines, accountability, and the status of unawarded locations; the broadband director said no provider had requested speed changes, awards would be monitored with milestone-based payments, and remaining locations would be addressed later as federal guidance is received. The committee also approved transfers in Section D, including $458,000 for the Department of Correction, $25 million for Department of Education programs such as declining enrollment and teacher incentive funding, and $229,000 for Shared Administrative Services project management support. In Section E, the committee considered a $4.7 million budget stabilization trust fund loan for the Office of State Technology to implement ServiceNow and related IT modernization, cybersecurity, and governance tools. Members pressed agency officials on repayment, cost savings, and whether the loan would simply roll over existing costs; officials said repayment would come through agency rates over a five-year period and that the new payment would be lower than the current loan being retired. The committee voted to give favorable advice to the Governor on the loan request. In Section F, the committee reviewed cash fund requests for wage and hour claims, unclaimed property, and a heritage grant; in Section G, it reviewed a $1.1 million federal grant to expand college and career coaching in rural districts; in Section H, it reviewed pay plan and performance fund requests totaling millions across multiple agencies; and in Section I, it reviewed budget manual formatting changes. The latter part of the meeting focused on reports, especially the Medicaid trust fund. DHS and DFA officials reported the fund balance had declined from prior years and was down to about $394 million after seven months, with further decline expected by year-end. Senators and representatives asked about the appropriate reserve level, the impact of pending Medicaid rules and legislation, FMAP changes, and whether additional funding would be needed in the upcoming budget. Officials said projections are updated regularly, more than 10 rule packages remain pending with CMS, and the governor and legislative leaders will discuss additional capital needs during budget development. Members also discussed the importance of balancing Medicaid spending with new federal funding and maintaining flexibility for critical areas such as labor and delivery. The committee then adjourned without further action on the reports.

Transcript Highlights:

• There's still priority projects, but we just can't get to them when we project our resource Availability
• That's one of our retro-funded projects.
• It does a lot of workforce, and we are utilizing federal existing federal funds to Upgrade that system
• It's a three-year project.
• There are two federal revolving funds. Those are Restricted.

Transcript Highlights:

• help start mining projects.
• To the trucks that will be coming through when our project, and our project is going to bring incredible
• There's a municipal arterial program for little to medium projects, and there's a transportation project
• This project that I have here, there's a presentation that I gave to you, is a beautification project
• And the next we have phased projects, meaning that we've already funded part of the project, and they

Transcript Highlights:

• Project certification at the local level provides this.
• After 18 months, these projects have now been suspended.
• forward with the federal standards.
• State data shows that only three projects, only three projects, have been permitted since 2011.
• and occasionally in front of federal agencies.

Committee: House Utilities and Energy

Summary: The committee heard several energy and utility bills. AB 1016, by Assembly Member Gonzales, would let certain counties with geothermal elements locally permit geothermal plants up to 150 megawatts through a five-year pilot program. Imperial County and other supporters said the bill would speed clean energy development, create jobs, and bring major tax revenue, while labor groups opposed it unless amended to preserve skilled-and-trained workforce standards. The author committed to continue working with labor, and the bill passed 10-0 to Natural Resources with the commitment to take amendments there. AB 1020, by Assembly Member Schiavo, would require investor-owned utilities to disclose taxpayer-funded loans and grants to the Public Utilities Commission and ensure the benefits are passed through to ratepayers. TURN supported the bill as a way to prevent utilities from “double dipping,” while PG&E said it already provides transparency and the bill was unnecessary. Wildfire survivors opposed it unless amended to direct any non-ratepayer funds first to victims. The bill passed 8-1 to Appropriations, with some members raising questions about the treatment of grants, loans, and ratepayer benefits. AB 881, by Assembly Member Wicks, would establish state safety standards for carbon dioxide pipelines to allow carbon capture and sequestration projects to move forward despite delays in federal rulemaking. Supporters, including SMUD and the Carbon Solutions Coalition, said the bill is needed to meet climate goals and access federal funding; environmental justice groups and local residents urged stronger protections and amendments. The bill passed 11-0 to Natural Resources with the commitment to take amendments there. AB 1156, by Assembly Member Wicks, would update the solar use easement program to allow solar development on water-constrained agricultural land; rural counties and farm groups remained opposed but said amendments moved the bill in the right direction. It passed 17-0 to Agriculture. AB 1222, by Assembly Member Bauer-Kahan, would bar utilities from recovering the costs of challenging CPUC decisions from ratepayers and give greater weight to ALJ proposed decisions; utilities opposed it, citing delay and fairness concerns, while supporters said it would protect ratepayers. It passed 10-3 to Judiciary. The committee also began hearing AB 1260, by Assembly Member Ward, on community renewable energy, with supporters arguing it would improve access for renters and low-income households and correct the CPUC’s implementation of prior law.

Transcript Highlights:

• project based off what’s been voted on today.
• Reserves, with projected ending cash balance after accounting for the beginning balance, projected revenue
• and resource changes, and projected expenditures.
• So that projection results in about a $2 billion maintenance-level projection of this year's maintenance
• I've been part of that project ever since then.

Committee: Joint Joint Legislative-Executive Committee on Budget Transparency and Fiscal Sustainability

Transcript Highlights:

• Under this bill, a new type of capital project is added to the list of project types for which a school
• Under this bill, a new type of capital project is added to the list of project types for which a school
• A project is either qualified or not.
• So that budget is already impacted by our projects.
• , that gets a federal grant, which was just taken away, thanks to what's happening at the federal level

Summary: The committee heard testimony on several House education bills. HB 1796 would allow school districts, under existing debt limits and with voter-approved capital levies, to issue non-voted bonds for certain new construction projects. The sponsor and school district witnesses said it would let districts front-fund projects, speed construction, and reduce inflation-related costs; a member of the public opposed it as bypassing voters. HB 2317 would exempt school-day ECEAP and Head Start programs located in public school or community/technical college buildings from child care licensing. The sponsor and providers said the current licensing process is duplicative, delays services, and creates barriers to expanding early learning; no opposition was heard. The committee also heard HB 2594, which would codify McKinney-Vento homeless student protections in state law, require OSPI planning and reporting, and reinforce district responsibilities for students experiencing homelessness. The sponsor gave personal testimony about experiencing homelessness as a student, and advocates said the bill would improve coordination and accountability at no added cost. For HB 2557, which requires school districts to give parents a copy of special education evaluation reports by the 35th school day and hold the eligibility meeting at least five school days later, the sponsor said it would give families time to review reports; school psychologists and OSPI supported the substitute version, while some advocates asked for shorter timelines and clearer waiver language. After the hearings, the committee moved to executive session and advanced two bills: Substitute HB 2360, allowing schools to maintain and use stock albuterol under specified conditions, and Engrossed Substitute HB 2534, updating requirements for military families’ enrollment, records transfer, and related services. Both bills received due pass recommendations and were sent to Rules, with no recorded opposition in the executive session.

Transcript Highlights:

• project.
• This project has two phases.
• We have solar projects, LED lighting, and EV charging station projects across all of our hospitals.
• project in the middle of it.
• , the Commission's Alcove projects.

Transcript Highlights:

• It also allows the state to unlock a lot of federal tax credits, a lot of federal funds.
• they needed state tax credits to make that project work, or they needed to turn their project into a
• We are also Project, and this added delays of up to 19 months for a given project.
• funded projects.
• That just adds more time and cost for our projects when we need those projects the most.

Transcript Highlights:

• These contracts are based on seven-year projections, and when you look at the total projected amounts
• That's not what this project is.
• Is it federal funding being cut? Yes.
• The federal Administration for Federal Rehabilitation Services letter that we received from them February
• That's the federal government's words.

Committee: All ARKANSAS LEGISLATIVE COUNCIL (ALC)

Summary: The council opened with a prayer, approved the prior meeting minutes, and received the February 2026 Monthly Revenue Report from Carlos Silva of the Bureau of Legislative Research. He reported gross revenues of $5.36 billion and net collections of $4.5 billion, both above the prior year to date, and said the updated forecast now shows a larger expected surplus. Members asked about declines in some tax categories, natural gas severance fee fluctuations, inflation, and economic development incentives; Silva attributed several changes to timing, refunds, tax cuts, weather, and price volatility, and generally described the state’s revenue trend as positive. The Executive Committee, Administrative Rules, Claims Review, Game and Fish, Higher Education, Infrastructure Investment and Jobs Act, Medicaid studies, Occupational Licensing Review, State Insurance Programs Oversight, and other subcommittee reports were adopted. The Medicaid studies report drew extended discussion about DHS staffing and contract nursing costs at state hospitals and human development centers; DHS officials said they were working on a recruitment and retention plan, reported significant vacancies and turnover, and said the state was not at risk of overspending the contracts. Several members urged reducing reliance on contract labor and moving staff onto state payrolls. The Review Subcommittee report prompted questions about a Department of Public Safety aircraft maintenance item and a Department of Shared Administrative Services contract for Deloitte to implement performance and goals management software tied to the state’s new personnel system. After discussion, the aircraft maintenance item was held briefly and then withdrawn from the hold, while the shared services contract was explained as a one-time integration/configuration project for a system that will support employee evaluations and performance-based pay; the report and the separate contract vote were approved. The Personnel Subcommittee also heard testimony from Commerce Secretary Hugh McDonald about reductions in force at the Division of Services for the Blind, which he attributed to funding shortfalls and fiscal mismanagement; members questioned the impact on blind and visually impaired clients, the status of board appointments, and whether federal funds could be at risk. The report was adopted with immediate consideration, and the meeting ended after filing the remaining APER report and adjourning.

Transcript Highlights:

• It moves this review back down to the individual project level.
• And there are federal laws that protect these resources.
• These are low-impact projects.
• for these small, low-impact projects.
• The cost of the project goes up each and every day.

Bills: SB5609 , SB6284

Committee: Senate Environment, Energy & Technology

Keywords: cultural resources, land use, environmental policy, exemptions, state laws, artificial intelligence, consumer protection, regulation, data privacy, technological impacts

Transcript Highlights:

• Eligibility is 138% of the federal poverty level.
• The asset test elimination, federal success, and federal flexibilities have contributed to this.
• On March 3, 2025, the federal government published a note in the Federal Register that it would no longer
• The federal government and the new federal administration, and even the prior administration, had sent
• It sounded like you were projecting Increased revenue or the projections are that there is increased