Transcript Highlights:

• You know, I spoke earlier about our structural shortfalls.
• level is— ...name of how the courts determine what the appropriate capacity level is.
• Well, I don’t disagree that it would not violate what we call the three-judge panel capacity.
• Moving to our comments on the underlying issue that there is a structural shortfall in CDCR's budget,
• , as well as the size of the shortfall and what it's made up of.

Summary: The subcommittee heard an overview from the Board of State and Community Corrections on its budget change proposal for 11 additional permanent positions, which BSCC said are needed to manage a rapidly expanded grant workload, increase technical assistance, and strengthen oversight and audits. BSCC also updated members on its new In Custody Death Review Division, created under SB 519, reporting that it has begun collecting and reviewing local jail death investigations, has hired about one-third of its staff, and has received access to medical records and related documents. Members raised concerns about family notification practices, local jail deaths, and whether BSCC’s increased administrative use would reduce grant dollars; BSCC said the change is intended to be permanent but should not substantially affect local assistance. The LAO supported the position authority request but flagged a methodological issue in the administration’s Proposition 47 savings estimate, and Finance said it would update the estimate by May Revision. The committee then reviewed CDCR’s overall budget, population, and facility issues. The Secretary said the incarcerated population is holding around 90,000, parole around 33,000, and described major cost pressures from retirements, workers’ compensation, medical transport, violence, and aging infrastructure lacking air conditioning and ADA features. He defended prison closures as creating overcrowding and reducing programming capacity, while also highlighting successes such as declining recidivism, expanded college and reentry programming, and the completion of the San Quentin Rehabilitation Center. Members pressed CDCR on fiscal discipline, the effect of closures on savings, community impacts from prison shutdowns, vacancy and staffing issues, and climate-related facility needs. CDCR said it clusters medically vulnerable and ADA-needing populations at more suitable facilities, uses heat plans and temperature monitoring, and is developing a 20-year infrastructure plan. A separate item addressed CDCR’s request for $91 million ongoing for lump-sum leave payouts for correctional officers and nurses. CDCR said these costs have historically been covered by vacancy savings, but declining vacancies and facility closures have reduced that source. The LAO said the funding is reasonable in the near term but recommended limited-term approval with reporting, and urged the Legislature to scrutinize unallocated savings assumptions and the ongoing Boston Consulting Group efficiency contract. Finance argued the lump-sum request should be ongoing because the costs are recurring and vacancy savings are less reliable. Members questioned whether CDCR is doing enough to reduce leave liability and whether the department will actually achieve the budgeted savings from the consultant work. Finally, CDCR presented updated population projections through June 2030, estimating a 6.5 percent decline in the institution population and a 10.4 percent decline in parole, while revising its Proposition 36 methodology based on actual admissions data. CDCR said Prop. 36 admissions are increasing but at a lower level than previously projected, and that the law’s long-term effects remain uncertain. On the California Rehabilitation Center closure, CDCR projected about $99.6 million in net General Fund savings next year and roughly $150 million ongoing, with 522 positions eliminated. The LAO said the state could close another prison within a few years and identified the Correctional Training Facility in Soledad as a strong candidate, recommending against approving new capital projects there unless another closure is identified. Finance said the administration has not proposed any additional closure at this time.

Transcript Highlights:

• But, you know, that kind of a shortfall, this is something that's solvable, right?
• But, you know, this shortfall, like I said, is solvable.
• The General Fund, do we think it will have more capacity to cover costs in 2027?
• The general fund, do we think it will have more capacity to cover costs in 2027?
• Enrollment capacity for calendar year 2025 is 12,574.

Summary: The committee heard a budget oversight hearing on the Department of Health Care Services, focusing first on the overall Medi-Cal budget and a March General Fund loan to cover a current-year shortfall. DHCS said the 2025-26 budget proposal totals $193.4 billion, with Medi-Cal projected at $188.1 billion total funds and $42.1 billion General Fund, driven by higher enrollment, pharmacy costs, managed care growth, and costs tied to eligibility expansions and the COVID-era redetermination unwinding. The department said the $3.44 billion loan was needed to manage cash flow and ensure timely payments to providers and plans, while the LAO noted Medi-Cal’s cash-basis budgeting creates volatility and that more detailed estimates would come with the May Revision. Members discussed federal Medicaid threats, the need for transparency on cost drivers, and the impact of pharmacy spending, long-term care, and immigration-related coverage expansions. The second major topic was family health programs, including California Children’s Services, the continuous coverage unwinding, and opioid settlement fund spending. DHCS described CCS funding methodology changes, ongoing county stakeholder work, and a delayed rollout of CCS monitoring and oversight until July 1, 2025, while county representatives and advocates argued the program is underfunded and asked for more technical assistance and a delay in implementation. On the unwinding, the department explained that federal redetermination flexibilities helped maintain coverage after the pandemic, but the Governor’s budget proposes ending them at the end of June 2025; advocates urged making the flexibilities permanent to avoid coverage losses. For opioid settlement funds, DHCS and Finance said the budget increases funding for naloxone distribution while reducing other harm-reduction spending based on updated settlement revenues, prompting criticism from members and public commenters who argued the change would weaken effective harm-reduction programs. The hearing also included an update on Proposition 35 implementation. DHCS said the voter-approved measure continuously appropriates MCO tax revenues beginning in 2025, with up to $4.6 billion annually available for specified Medi-Cal and provider investments in 2025 and 2026, but implementation depends on consultation with the required stakeholder advisory committee. The department and LAO noted uncertainty about future federal rules affecting the MCO tax after 2026. Public testimony largely supported maintaining Medi-Cal expansions, protecting immigrant coverage, preserving harm-reduction funding, and increasing support for community health workers, pediatric dental care, and CCS county administration. No votes were taken during the portion of the hearing provided.

Transcript Highlights:

• costs to operate the DNR programs have increased to the point where DNR is predicting a revenue shortfall
• And at the same time that we're having these funding shortfalls for our air pollution control program
• , we're on the back end sweeping that money Shortfalls for our air pollution control program.
• You're saying this is good for business, doesn't hurt the environment, helps shore up any shortfalls
• So this is just the amount that they predicted they would have as a shortfall.

Summary: The committee first heard Senate Bill 953, which would address a projected funding shortfall in the Department of Natural Resources’ air pollution control program. Senator Jason Bean and business and industry witnesses said the bill would stop sweeps of unused program funds into general revenue and dedicate a portion of existing sales and use tax revenue paid by utility companies to keep the program solvent without raising permit fees on businesses that have reduced emissions. Supporters said the measure would prevent fee increases on compliant businesses and avoid federal EPA takeover. An informational witness from Armour Vine warned that diverting funds from general revenue could shift more burden to taxpayers, and DNR said the fee fund could become insolvent in fiscal year 2028 without action. No vote was taken during the hearing. The committee then heard House Bills 3362 and 3364, companion measures sponsored by Representatives Wellenkamp and Koslow to regulate large AI/data center infrastructure and protect electric and water resources. The bills would require separate rate treatment for large electric loads so costs are not shifted to residential or smaller commercial customers, extend similar protections to co-ops and municipal utilities at a lower threshold, and create a permitting framework for large water users, including review by DNR and emergency shutdown provisions. Sponsors and many witnesses said the bills are intended as consumer-protection and resource-stewardship measures, not anti-development bills. Testimony on the AI/data center bills was broadly supportive but also included requests for stronger protections. Environmental, conservation, utility, business, and rural groups supported the bills as a first step, citing concerns about grid strain, water withdrawals, aquifer depletion, transparency, and local impacts from data center buildout. Some witnesses urged tighter water thresholds, more frequent reporting, and broader protections for non-AI data center consumers. Informational witnesses from municipal utilities, Ameren, and Missouri American Water raised implementation concerns, including ambiguous language, the limited scope of PSC oversight for water utilities, and the need to ensure large users bear the cost of new infrastructure. The chair ended the hearing without a vote and asked attendees to submit witness forms for the record.

Transcript Highlights:

• In addition, we need to continue building capacity.
• So that's where the $6. $4 million shortfall comes from.
• Chair, page 4... ...there's a $300,000 shortfall.
• We also talk about the barrier of capacity building.
• It really hurts with the predictability and getting that building capacity and maintaining that capacity

Bills: SB48, SB64, SB100

Keywords: State Fairgrounds District, fairgrounds bonds, public financing, bond authorization, gross receipts tax, gaming tax, tax-backed bonds, infrastructure funding, Albuquerque fairgrounds, State Fair Tid, economic development, municipal bonds, revenue pledge, capital projects, New Mexico finance, special education, office of special education, deputy secretary, public education department, IEP

Transcript Highlights:

• What is the rationale for funding just two-thirds of the shortfall?
• What is the rationale for funding just two-thirds of the shortfall?
• It was done back then, I think, because we were in a budget shortfall.
• Because I'm still hearing $120 million is what's needed to close that shortfall.
• The shortfall, but we're not. That's the entire shortfall.

Keywords: 988, house, all

Transcript Highlights:

• Council member Jeff Holtz is also a member of the 3M Settlement work group, and in that capacity his
• and in that capacity his reaction to<00:04:25.840><c> um</c><00:04:26.479><c> my</c><00:04:26.680><c
• Actually, let me correct myself: the $14 million is what would be offset, leaving that shortfall, not
• Your bonding proposal, like, there would still be a shortfall there?
• there this just would make it shortfall there this just would make it a<00:07:52.560><c> little</c><

Keywords: 1187, senate, all

Transcript Highlights:

• whether that capacity exists when it's needed most.
• whether that capacity exists when it's needed most.
• whether that capacity exists when it's needed most.
• whether that capacity exists when it's needed most.
• These individuals are shortfall.

Keywords: 1183, house

Summary: House File 4738 was laid over for possible inclusion in the 2026 tax bill. Representative Keeler presented the bill as a funding source for Minnesota’s Safe Harbor program, arguing that trafficking and sexual exploitation are statewide problems and that current shelter and housing resources are insufficient. She and several supporters emphasized that the program serves youth across greater Minnesota, not just the metro, and that state and federal funding pressures make additional support necessary. Testifiers from Place Called Home/Life House, The Link, the City of Minneapolis, and a survivor all described the impact of Safe Harbor and related shelter programs. They cited data on youth served, bed nights, mental health services, and high unmet need, including waitlists and youth turned away because programs are full. Testimony stressed that stable housing and trauma-informed services help survivors recover and move toward education, employment, and family stability. One committee member, Representative Davis, objected to the proposed funding source, saying he would not support taking money from women’s sports scholarships and urging a different source. The bill’s tax mechanism was described as ending the sales tax exemption for preferred seating, suite licenses, and related amenities at athletic and entertainment events. Alec Williams of We Make Minnesota supported the proposal as a fair way to raise revenue from high-end discretionary purchases for a public purpose. Committee discussion also focused on the size of the revenue estimate and the breakdown of the impact, with nonpartisan staff saying roughly 85% would come from suite licenses, 10% from collegiate seating, and 5% from amenities. Representative Smith and others framed the issue as both a tax and moral question, and the chair moved the bill to be laid over.

Transcript Highlights:

• costs to operate the DNR programs have increased to the point where DNR is predicting a revenue shortfall
• And at the same time that we're having these funding shortfalls for our air pollution control program
• And at the same time that we're having these funding shortfalls for our air pollution control program
• You're saying this is good for business, doesn't hurt the environment, helps shore up any shortfalls
• So this is just the amount that they predicted they would have as a shortfall, and this would address

Keywords: 959, house, all

Transcript Highlights:

• But that kind of a shortfall—this is something that's solvable. This is something that's solvable.
• Is truly to build capacity and to support the counties.
• At the moment, there doesn't seem to be much capacity for new ongoing initiatives in the budget.
• Enrollment capacity for calendar year 2025 is 12,574.
• And finally, we're in support of expanding the capacity of the HCBA waiver. Thank you.

Keywords: 988, house, all

Transcript Highlights:

• <00:47:49.400><c> disparity</c><00:47:50.280><c> Aid</c> capacity disparity Aid capacity disparity Aid
• for fiscal capacity disparity?
• </c> each iteration of the fiscal capacity each iteration of the fiscal capacity disparity<02:24:28.240
• </c> for pration in the event of a shortfall for pration in the event of a shortfall so<02:35:27.680>
• trust fund; by definition, there's no shortfall.

Keywords: 928, house, all

Summary: The executive session focused primarily on HB 563, which revises the school funding formula, especially the adequate education grant amounts for special education students and the treatment of fiscal capacity disparity aid. Representative Ladd moved OTPA on Amendment 06508, explaining that FY 26 would largely hold the current formula steady, while FY 27 would increase several per-pupil amounts, including base cost, free and reduced-price meals, English language learner aid, and special education differentiated aid. He said the special education change was based on estimated case loads across disability categories and that the amendment also reinstates fiscal capacity disparity aid, using a formula intended to better assist property-poor communities. Several members supported the amendment as a step in the right direction, saying it better recognizes special education costs and separates property wealth from low-income student counts. Others raised concerns about the lack of time and the absence of a printed spreadsheet showing how the fiscal capacity disparity aid would affect each town. In response, sponsors said the spreadsheet existed, that the LBA had copies, and that the amendment would help about 40 target towns, while Manchester would be the main community receiving less under the new formula because of prior shifts in the extraordinary needs grant. Discussion also covered the broader impact of the bill, with members noting that about 200 of the state’s 245 cities and towns would see an increase and 45 a decrease under the proposed FY 27 changes. Supporters argued the bill was a compromise given limited revenues and that it should move forward so it can be considered by the full House and then Finance. No final vote on the amendment or bill was taken in the portion provided, and the chair indicated the committee was still deciding whether it had enough information to proceed.

Transcript Highlights:

• It will expand our capacity to 18 million gallons per day.
• We are looking into what we can do to increase capacity.
• That did include some future capacity.
• If you do this, here's the shortfall you make up for.
• That makes up for $736 million of the shortfall.

Summary: The Water Topics Overview Committee met to review several interim studies and receive updates from the Department of Water Resources. The committee approved the March 26, 2026 minutes, observed a moment of silence for the late Representative Conmy, and welcomed Representative Hansen to the committee. Staff then reported that the watershed management study and the stormwater/wastewater study had both satisfied the presentation requirements in their study directives, with no further required testimony unless members wanted additional information. The department’s main presentation focused on major water projects and agency operations. Reese Haas and staff updated members on the NAWS project, the Southwest Pipeline Project, Devils Lake outlet operations, low-head dam safety work, floodplain management repository implementation, data center water use, and the 2027 Water Development Plan. Members asked detailed questions about NAWS funding sources, remaining project costs, capacity concerns for All Seasons and other users, and whether current construction is being designed for future demand. The department said NAWS remains on track for substantial completion by October, that remaining NAWS funding will come from a mix of federal, state, and local sources, and that current construction is designed for ultimate capacity while some future components will be adjusted for increased demand. A large portion of the meeting was devoted to the department’s cash management, Resources Trust Fund revenues, carryover balances, and the State Water Commission’s cost-share program. The department reported $340.6 million in carryover remaining, explained that much of it is already obligated to long-term projects, and noted that oil price forecasts and stripper-well exemptions will affect future revenues. Members raised concerns about large carryovers, affordability for local sponsors, and whether the state should continue obligating money multiple bienniums ahead. The department said it is working with the commission on a revised prioritization framework, including high/moderate/low project categories and a two-tier pre-construction/construction approach, to better manage obligations and affordability. The committee also reviewed Deloitte’s finalized studies on regional governance/finance and cost-share policy. Deloitte presented options for Southwest, NAWS, and Red River governance, with stakeholders generally favoring keeping NAWS largely as is, using the current Southwest model with improvements, and pursuing a more structured governance option for Red River. On cost share, the department said Deloitte’s recommended package would cover projected needs through the 2030s, but would require policy changes such as lower percentages for some project types, a 25% replacement-project rate with a cap, and possible bonding or delayed reimbursement strategies. No votes were taken on these policy questions, and the chair indicated the committee would continue the discussion at future basin meetings and the September Water Topics meeting.

Transcript Highlights:

• Next, SCR 32, requesting the establishment of a marine life conservation district carrying capacity study

Bills: SCR173, SCR78, SCR114, SCR162, SCR48, SCR160, SCR87, SCR28, SCR74, SCR20, SCR32, SCR55, SCR69

Keywords: ticket scalping, task force, consumer protection, event accessibility, local economy, menstrual health, menstrual cycle, period education, period poverty, menstrual products, menstrual dignity, health education, sexual health curriculum, DOE, Department of Education, public schools, school health, reproductive health, puberty education, hygiene education

Bills: HB3976, HB3000, HB3001, HB3003, HB3004, HB3066, HB3904, HB3644, HB1687, HB3920

Keywords: rural hospitals, small hospitals, grant program, healthcare funding, Oklahoma health department, cosmetology, barbering, massage therapy, State Board of Cosmetology and Barbering, Service Oklahoma, license renewal, license reinstatement, licensing fees, sunset extension, board membership, human trafficking, victim services, beauty school, barber school, esthetics

Bills: HB3976, HB3000, HB3001, HB3003, HB3004, HB3066, HB3904, HB3644, HB1687, HB3920

Keywords: rural hospitals, small hospitals, grant program, healthcare funding, Oklahoma health department, cosmetology, barbering, massage therapy, State Board of Cosmetology and Barbering, Service Oklahoma, license renewal, license reinstatement, licensing fees, sunset extension, board membership, human trafficking, victim services, beauty school, barber school, esthetics

Summary: The Senate Health and Human Services Committee met to consider several House bills, beginning with a series of sunset extensions for professional licensing and review boards. House Bill 3000 extended the State Board of Cosmetology and Barbering to 2031 after brief questions about prior executive-branch efforts to improve board transparency; House Bill 3001 extended the Child Death Review Board to 2031; House Bill 3003 extended the Board of Chiropractic Examiners to 2031; and House Bill 3004 extended the Board of Examiners in Optometry to 2031. Each of these bills advanced on unanimous 9-0 votes. The committee also advanced House Bill 366, which creates a revolving fund at the Health Care Workforce Training Commission to receive rural health transformation funds. Members asked about the timing and distribution of the funds, but no timeline was available. House Bill 3904 changed prenatal delivery and postpartum services from a global payment model to individualized payments, with supporters saying it would improve access to local and rural prenatal care and could help hospitals qualify for birth-friendly designations and related funding. That bill also passed 9-0. Two health-related policy bills were amended in committee and advanced. House Bill 3644, the Blake Burgess Act, requires certain hospitals to adopt policies to prevent venous thromboembolism; members asked whether the required report would be public, and the author said that was the intent. House Bill 1687, the Uniform Health Care Decisions Act, replaces older advance directive and health care agent laws with a single framework for end-of-life decision-making, with committee substitute changes adding safeguards and clarifying surrogate authority. House Bill 3920 created a sales tax exemption for LifeShare Network, matching an exemption already given to the Oklahoma Blood Institute, and it also passed after supportive testimony. All measures considered were reported out favorably, and the committee adjourned after announcing it would meet again the following week.

Bills: SB 1036, SB 1566, SB 1664, SB 2268, SCR 5, SCR 8, SCR 9, SCR 32, SCR 46

Keywords: residential solar, solar retailer, solar salesperson, solar panel sales, solar lease, solar installation, renewable energy, clean energy, consumer protection, deceptive sales, door-to-door solicitation, occupational registration, TDLR, Texas Department of Licensing and Regulation, Texas Commission of Licensing and Regulation, Public Utility Commission, electrical contractor, interconnection, net metering, Truth in Lending Act

Bills: SB1036, SB1566, SB1664, SB2268, SCR5, SCR8, SCR9, SCR32, SCR46

Keywords: residential solar, solar retailer, solar salesperson, solar panel sales, solar lease, solar installation, renewable energy, clean energy, consumer protection, deceptive sales, door-to-door solicitation, occupational registration, TDLR, Texas Department of Licensing and Regulation, Texas Commission of Licensing and Regulation, Public Utility Commission, electrical contractor, interconnection, net metering, Truth in Lending Act

Transcript Highlights:

• high-quality childcare, the bill does not fully address the need for additional funding to expand the capacity
• While we would love to serve every child in every capacity that we possibly could, we just feel like
• Grants will be awarded to high-quality childcare providers to expand access and increase capacity. retained
• With the average national profit margin for restaurants at only 7%, we do not have the capacity to fully

Bills: HB74, HB175, HB460, HB576, HB2271, HB2294, HB2874, HB3016, HB3133, HB3191, HB3458, HB3929, HB4063, HB4115, HB4394, HB74, HB175

Keywords: Puerto Verde, Port Authority, eminent domain, bonds, tax assessments, economic development, infrastructure, transportation, public welfare, child care, certifications, Texas Rising Star Program, grant program, disability inclusion, family income, affordability, economic impact, state study, cost analysis, government support

Transcript Highlights:

• However, this does not allow for a comprehensive picture of a total capacity and enrollment for child

Bills: HB74, HB175, HB460, HB576, HB2271, HB2294, HB2874, HB3016, HB3133, HB3191, HB3458, HB3929, HB4063, HB4115, HB4394, HB74, HB175

Keywords: Puerto Verde, Port Authority, eminent domain, bonds, tax assessments, economic development, infrastructure, transportation, public welfare, child care, certifications, Texas Rising Star Program, grant program, disability inclusion, family income, affordability, economic impact, state study, cost analysis, government support

Transcript Highlights:

• assessment also reviews our governance, our policies and procedures, and reflects our organization's capacity
• </c><00:12:26.519><c> to</c> time that are have the capacity to time that are have the capacity to provide
• </c><01:15:47.639><c> in</c> fiscal year 25 to cover the shortfall in fiscal year 25 to cover the shortfall
• over the next 10 years billion shortfall over the next 10 years this<01:42:38.040><c> shortfall</c><
• </c> hopefully address uh one the shortfall hopefully address uh one the shortfall but<01:43:43.440><

Keywords: 1183, house

Transcript Highlights:

• Capacity is no longer sufficient to meet that need.
• However, they still have an overall project shortfall.
• Valdez maybe can confirm this: our elementary schools are reaching capacity again.
• We were seeing 135 to 140% capacity at two middle schools. So we're hitting that capacity again.
• So I'm looking at those last few district shortfall allowable, district shortfall above allowable, and