Transcript Highlights:

• This is a really important bill to help vacant schools. Novocaine.
• This is a really important bill to help vacant schools, vacant theaters, nonprofits, and large developments
• A decade ago, my husband and I bought a vacant school building in my hometown.
• And I do want to be clear that it hasn't sat vacant this long because...
• Those are primarily vacant schools. Active schools or retired schools?

Committee: House Commerce, Consumer Protection, Energy and the Environment

Summary: The Commerce Committee first took up House Bill 1845 in executive session and voted it do pass unanimously. The committee then moved into a public hearing on House Bill 3080, sponsored by Representative Riggs, which was presented as a technical/emergency fix to restore Missouri’s historic preservation tax credit provisions after a court ruling invalidated prior legislation because of unrelated “chicken coop” language. Riggs said the bill was needed to protect more than $300 million in projects already underway and noted companion legislation was moving in the Senate. Committee members expressed support and emphasized the importance of historic redevelopment, especially in St. Louis and other communities. Supporters testified that the bill would stabilize financing for projects already in progress and preserve a key tool for redeveloping vacant historic buildings, schools, theaters, and other properties statewide. Witnesses described specific projects including Delmar Devine in St. Louis, a vacant school in Hermann, the Englewood Theater in Independence, Cooper House, and Elliott School, explaining that tax credits were essential to making the projects financially feasible and to leveraging private investment, grants, and other financing. Several speakers said the credits help address housing shortages, neighborhood blight, and community revitalization, and that uncertainty after the court ruling was threatening construction and financing commitments. One witness, Arnie C., testified in opposition, calling the measure a corporate giveaway and arguing the state could not afford the program. Committee members responded that the bill was a corrective measure, not an expansion of credits, and that it was necessary because projects had already been approved and were in various stages of completion. After hearing testimony from supporters, one opponent, and no additional witnesses, the chair closed the hearing on House Bill 3080 and adjourned the committee.

Transcript Highlights:

• Cynthia Mendoza: Historically, these payments were funded through salary savings from vacant positions
• But, of course, in reality, because of employee turnover and whatnot, some positions are inevitably vacant
• , which means departments have some extra money in their budget associated with these vacant positions
• And that's because when prisons are closed, not only are the vacant positions and associated dollars
• positions at other prisons, which puts overall downward pressure on vacant positions and associated

Summary: The Assembly Budget Subcommittee No. 6 on Public Safety heard updates on CDCR’s population projections and the preliminary fiscal impacts of Proposition 36. CDCR said its fall 2025 projections show continued declines in the institution and parole populations through June 2030, while noting Prop. 36 admissions are increasing but remain uncertain. The LAO said the administration’s Prop. 36 estimates may be somewhat low because they were based on only six months of implementation data, and the Department of Finance agreed the methodology is still developing. Committee members asked about the offenses driving admissions and the sentence-length impacts, and CDCR identified the main qualifying offenses and enhancements it is tracking. No votes were taken. The committee then discussed CDCR’s request for $91 million ongoing for lump-sum leave cashouts for correctional officers and nurses. CDCR said vacancy reductions and prison closures have reduced the salary savings historically used to cover these costs. The LAO supported the funding only on a limited-term basis and urged more oversight and reporting on CDCR’s structural shortfall, while the Department of Finance argued ongoing funding is needed because leave liabilities are mandatory and salary savings are less stable. Members raised concerns about transparency, asked about leave buyback practices and accrued leave balances, and requested more information before the May Revision. Members also heard CDCR’s proposals for $10 million for the final two statewide video surveillance projects and $15.2 million for Fire Watch coverage and related fire alarm work. The LAO supported the Fire Watch request as a one-time health and safety cost, while CDCR explained the aging prison infrastructure and the need for interim safety measures while longer-term replacement planning is developed. The committee then reviewed CDCR’s proposal to close the California Rehabilitation Center, which would produce a net General Fund reduction of $99.6 million in 2026-27 and ongoing savings of more than $150 million starting in 2027-28. CDCR said the closure is driven by sustained population declines and will include retention and realignment funding; the LAO recommended approval. Public comment focused on county funding for Prop. 36 implementation, opposition to using Prop. 36 as a reason to keep prisons open, and support for community-based rehabilitation programs. The hearing adjourned without any votes.

Transcript Highlights:

• The morning roll call is 32 present, zero absent, two excused, and one vacant. We have a quorum.
• two excused, and one vacant. We have a two excused, and one vacant.
• , Senate bill 11 excused, and one vacant, Senate bill 11 is<00:34:15.679><c> passed.
• , Senate bill 76 excused, and one vacant, Senate bill 76 is<00:35:33.920><c> passed.
• </c> shortage to fill a position. shortage to fill a position.

Keywords: 981, all

Transcript Highlights:

• It's vacant.
• It seems to me there would be a tax shift if it were vacant still.
• I mean, vacant property still paid tax. Mr.
• And that's what they're doing—GPLET deals on vacant land.
• land, and that the vacant land, that eight years, is because if it was sitting there vacant, that's

Committee: House House Ways & Means Committee of Reference

Summary: The House Ways and Means Committee first took up Senate Bill 1293, which would limit Government Property Lease Excise Tax (GPLET) abatements so they cannot reduce the portion of property taxes that would otherwise go to school districts. The sponsor and supporters, including the Arizona Tax Research Association and the National Federation of Independent Business, argued that GPLET shifts costs to the state general fund and other taxpayers through school finance backfilling, while city representatives from Phoenix and Mesa and the Greater Phoenix Economic Council said GPLET is an important redevelopment tool that helps projects move forward in difficult urban areas and eventually returns properties to the tax rolls at much higher values. After extended questioning about tax shifts, school district impacts, and whether cities could act without affecting other jurisdictions, the committee voted 5-3 to return SB 1293 with a do pass recommendation. The committee then heard Senate Bill 1294, a clarifying measure concerning property classification after destruction by fire, flood, or other verifiable accident. The sponsor said the bill was intended to refine language adopted the previous year and to reflect discussions with assessors and ATRA. With little opposition, the committee approved SB 1294 on a 6-1 vote, with one member present and one absent. Finally, the committee considered Senate Bill 1430, the annual technical corrections bill for tax statutes administered by the Department of Revenue. The sponsor offered an amendment to remove a disputed unclaimed-property provision after concerns were raised, and the department supported the bill as amended. The committee adopted the amendment and then passed SB 1430 as amended on a 7-0 vote, with one member present and one absent, before adjourning.

Transcript Highlights:

• We should only have one technology band B position, I believe that's vacant.
• We should only have one technology band B position, I believe that's vacant.
• have any vacant positions like those have any vacant positions like those right<00:29:40.480><c> so</
• Then we have one security analyst position that's vacant.
• Thirteen of those are filled, so we have just three vacant positions.

Keywords: 912, senate, all

Transcript Highlights:

• It's vacant.
• It seems to me there would be a tax shift if it were vacant still.
• I mean, vacant property still paid tax. Mr.
• And that's what they're not doing—GPLET deals on vacant land.
• land, and that the vacant land, that eight years, is because if it was sitting there vacant, that's

Bills: SB1221 , SB1293 , SB1294 , SB1430

Committee: House Ways & Means

Keywords: taxpayer protection, law interpretation, transparency, public hearings, tax policies, GPLET, abatement, tax incentives, local government, property improvement, central business district, property tax, assessment, destruction, proration, Arizona Revised Statutes, Arizona tax corrections act, transaction privilege tax, sales tax, use tax

Transcript Highlights:

• — we have current FTE positions, but they are vacant.
• We have current FTE positions, but they are vacant.
• FTE positions.
• These are requests to hire for vacant positions. That concludes my presentation.
• Our fourth request is for an additional staff attorney position, well, funding for the position.

Bills: SB1

Committee: Senate Finance

Keywords: appropriations, budget, state funding, education, healthcare, infrastructure

Summary: The Senate Finance Committee met to review Article 8, regulatory agencies, and began Article 9, general provisions, before recessing for floor action. The committee first heard budget presentations from the Public Utility Commission (PUC) and the Office of Public Utility Counsel (OPUC). The PUC budget recommendation was about $5.07 billion in all funds, including an additional $5 billion for the Texas Energy Fund, plus funding for staffing and technology needs tied to contested cases, infrastructure resiliency, and outage mapping. PUC witnesses emphasized the agency’s growing workload, the need for more staff and modern systems, and oversight of the Texas Energy Fund. OPUC’s recommendation was about $6.9 million, with a reduction in authorized FTEs to better match actual staffing; the agency requested additional funding for salaries, expert witnesses, and budget flexibility, and members highlighted OPUC’s role representing residential and small commercial consumers in utility proceedings. The committee then heard from the Behavioral Health Executive Council (BHEC), whose recommendation was just over $11.2 million. BHEC’s main requests included funding to fill vacant positions, money for continuous National Practitioner Data Bank queries, and a proposed Texas-owned psychology licensing exam in response to concerns about changes to the national exam. Agency leaders also discussed a rider request that would shift responsibility for certain judgments or settlements to the comptroller. Members asked about prior complaint backlogs, and BHEC said those backlogs had been cleared. The Board of Chiropractic Examiners followed, with a recommendation of just under $2.4 million; the board sought support for staffing, training, broadband, and salary retention, and described its work regulating chiropractors and workers’ compensation-related doctors. The Board of Dental Examiners was the last agency heard before the committee recessed. Its recommendation was just under $10 million, and it requested a 10% salary increase for eligible staff, three additional licensing staff, one staff member to handle required background checks, an additional attorney, and an executive director salary adjustment. Dental board witnesses said licensure growth, increased complaints, and low salaries were straining licensing and enforcement operations, even though the agency reported strong performance and high case completion rates. The chair ended the hearing early because the Senate had to return to the floor, and the committee remained in recess.

Transcript Highlights:

• Six acres in our case of Lake City—six-acre store property being entirely vacant for perhaps years—is
• I think it moved the bill into a better position.
• They'd have to pay a penalty or a tax on that for being vacant.
• It's a place that supports healthy, safe, and positive activity for young people in our city.
• Third, it creates a positive social environment when teens have a place where we belong.

Bills: HB2517 , HB2480 , HB2588 , HB1529 , HB2223 , HB2006 , HB2573 , HB2141

Committee: House Local Government

Keywords: municipal permitting, transit projects, high capacity transit, infrastructure, urban development, residential development, commercial zones, mixed-use zoning, urban planning, state regulations, county ferry district, ferry district, passenger-only ferry, passenger ferry, Puget Sound, Vashon, Seattle, Southworth, county transportation, local taxing authority

Transcript Highlights:

• They do not demonstrate that their recommendations are positively associated with share value.
• Our board has not been able to take a position on it, but we do have several concerns with the bill.
• Some of literally the most valuable vacant property in the city — far from being blighted.
• I'm going to just take your position for this, against this bill, as a statement to that.
• , so you need to really value it as a vacant building.

Committee: Senate Senate Finance Committee of Reference

Summary: The committee approved the February 2, 2026 minutes and held Senate Bill 1090. It then took up SB 1503, which would require pension fiduciaries and proxy advisory firms to base voting and advice solely on economic interests, prohibit ESG or ideological considerations except in limited circumstances, and authorize attorney general enforcement. The sponsor said the bill was meant to protect investors and align with federal action; supporters argued proxy advisors lack transparency and can influence votes against shareholders’ financial interests. Arizona retirement system representatives said they were neutral but warned the bill would add major operational costs, create reporting burdens, increase litigation risk, and could narrow the market for proxy advisory services. The committee passed SB 1503 on a 4-3 vote. The committee then considered SB 1293, which would bar GPLET abatements from applying to school-district revenue during the eight-year abatement period. Supporters said the bill would protect school funding and reduce the state aid backfill tied to GPLET projects, while opponents from Phoenix, Mesa, and economic development groups said GPLET is a key redevelopment tool that helps finance downtown and blighted-area projects and that the bill would weaken future investment. The committee adopted the amendment and passed SB 1293 on a 4-3 vote. It also heard and passed SB 1414, which gives insurers 30 days to review and respond to third-party settlement demands; insurers supported the bill as a reasonable commercial timeframe, while trial lawyers opposed it as too slow and urged a 15-day standard, with members indicating they expected a possible friendly amendment. Next, the committee heard SB 1633, which would create an Arizona income tax subtraction for capital gains from the sale of a primary residence, after five years of occupancy. Opponents argued it would mainly benefit wealthy homeowners and could cost the state tens of millions annually, while the sponsor said it could help homeowners move without facing large tax bills and improve housing turnover. The committee passed the bill 4-2. It also adopted an amendment to SB 1429, which would have expanded Arizona Commerce Authority board ex officio membership, then held the bill for further consideration. Finally, the committee passed SB 1536, allowing temporary consolidation of street light improvement districts, and heard SB 1724, which clarifies when property splits or consolidations trigger limited property value recalculation, with county assessors supporting the measure as an anti-gaming reform.

Transcript Highlights:

• These are already vacant positions, or what are these positions?
• Units are remaining vacant, so we're proposing to reduce the vacant staffing level positions as a general
• up the vacant position.
• Lows, and the positions were vacant. So they were vacant positions.
• How many of these are not vacant positions?

Keywords: 988, house, all

Transcript Highlights:

• floor space to uh incom producing vacant floor space to uh incom producing uses<00:01:37.040><c> so<
• A key part of this strategy centers on redeveloping vacant downtown office space into housing.
• </c> strategy centers on redeveloping vacant strategy centers on redeveloping vacant downtown<00:08:14.159
• </c><00:15:19.399><c> commercial</c> when they were vacant commercial when they were vacant commercial
• </c><00:31:52.519><c> would</c> the buildings that are vacant would the buildings that are vacant would

Committee: House Housing Finance and Policy

Keywords: 1183, house

Transcript Highlights:

• City District 21 vacant. Mr. President, let's do this.
• President, &gt;&gt; City District 21, vacant. Mr.
• </c><00:32:06.000><c> Senator</c> one vacant. We have a quorum. Senator one vacant.
• </c> absent, one excused, and one vacant. absent, one excused, and one vacant.
• one vacant.

Keywords: 981, all

Transcript Highlights:

• And I do agree some positive.
• There have been not. vacant buildings in the city of St.
• And it stayed vacant for a while.
• And it stayed vacant for a while.
• They're just vacant buildings.

Summary: The House first approved the previous day’s journal by roll call vote, 116-0, and then spent a long portion of the morning recognizing visiting students, homeschool groups, professional associations, veterans, and other guests in the gallery. A moment of silence was held in honor of Conrad Ashcraft after a member introduced his grandmother, who was present to testify on a bill related to his death. The chamber also recognized a birthday page, a 90th birthday for a House staff member, and Chiropractic Physicians Day. The main floor debate centered on House Committee Substitute for House Bill 2710, which would create an A-through-F school grading system for public schools and charter schools. Supporters said the bill would give parents a simple, transparent way to understand school performance, while also preserving more detailed underlying data and adding a climate scorecard amendment covering suspension, restraint, and satisfaction measures. The bill sponsor and supporters emphasized that the measure was revised from earlier versions, that the A grade would be based on the top decile rather than a moving target, that literacy and growth measures were important, and that any teacher incentive funding would be handled through appropriations and the teacher retention and recruitment fund rather than direct bonuses. Opponents argued that letter grades would stigmatize schools, destabilize staffing, and oversimplify complex school conditions, especially in districts with high poverty, mobility, or special education populations. Several members questioned the fairness of comparing schools with different funding levels, demographics, and student turnover, and others argued that the bill would not solve concerns about the MAP test or broader school funding. One member objected that the bill applied only to public and charter schools while state dollars are also now going to private-school tuition support. Despite those concerns, the House adopted the amendment offered by the St. Louis member, then adopted the committee substitute and ordered House Bill 2710 perfected and printed. Afterward, the House took up House Committee Substitute for House Bills 2404 and 2172, a measure to remove deed restrictions on unused public school property and create a right of first refusal for public entities, including charter schools. Supporters said the bill would allow vacant school buildings to be reused for education rather than sit unused or be demolished, and could generate revenue for school districts. The bill was advanced after discussion, with members citing examples from St. Louis and other areas where unused buildings could have been repurposed for charter or other educational use.

Transcript Highlights:

• And then you got the new and vacant FTE position, or, and then you got the operating.
• But you can see the salary and wages, the new and vacant FTE positions line item, the operating costs
• Then there's a reclassification of a vacant position.
• Then there's a reclassification of a vacant position.
• They do have some vacant positions; I think they've got seven open positions there, but it's up to them

Committee: House Appropriations

Keywords: 908, all

Summary: The committee heard House Bill 2014, the budget for the Industrial Commission, with Representative Kempenich walking through the agency’s major components: the administrative office, Bank of North Dakota, housing finance, Department of Mineral Resources, and the State Mill and Elevator. He described mostly special-fund operations, including bond payments, economic development programs, the rail loan program, the Rebuilder’s Loan Program, housing incentive funding, abandoned well reclamation work, lignite research, litigation reserves, and a capacity purchase arrangement for a future natural gas pipeline. He also explained several one-time funding items, such as grid resiliency grants, housing-related transfers from the Strategic Investment Fund, and enhanced oil recovery funding repurposed from a prior salt cavern study. Members asked about the reduction in housing incentive funding from the Senate version, the use of one-time Strategic Investment Fund dollars for ongoing housing programs, and whether a trigger should be added to increase housing funding later. Kempenich said no trigger was discussed and emphasized that housing needs vary widely across the state. Another exchange focused on the enhanced oil recovery grant program, which he said would be driven largely by the Energy and Environmental Research Center and would use repurposed funds. A longer discussion covered the natural gas pipeline capacity purchase, including its purpose, possible routes, and the idea that the state would be buying capacity rather than immediately building a pipeline. The committee adopted Amendment 25.0181.0207 on a 21-1 vote, with one member absent and not voting. The committee then passed HB 2014 as amended on a 21-1 vote, with one member absent and not voting. Representative Kempenich was designated to carry the bill. The chair then noted this was the final budget hearing for the committee, with one bill remaining to be heard later.

Transcript Highlights:

• </c><00:08:47.680><c> position,</c> elimination of the vacant position, elimination of the vacant position
• </c><00:08:50.240><c> position</c> discussion of why the vacant position discussion of why the vacant
• Went brand new position has been vacant.
• secretary position that is vacant deputy secretary position that is vacant now<01:19:58.800><c> because
• > can</c> when positions become vacant, we can when positions become vacant, we can evaluate<01:44:47.679

Committee: Senate Finance

Keywords: 1191, senate, all

Transcript Highlights:

• positions in all of our agencies.
• But again, these are vacant positions.
• Sometimes they're chronically vacant, where a department is using these salary dollars to pay existing
• positions in excess of 90 days.
• To say that one more time, really clear, these are vacant jobs that have been vacant for over three months

Summary: The Transportation and Economic Development Budget Subcommittee met to consider its recommended fiscal year 2025-2026 budget and a conforming committee bill. Chair Shove presented an $18.5 billion TED budget, describing it as about 8.5% below the prior year’s TED budget and emphasizing recurring savings, reductions to vacant positions over 90 days old, and a focus on core agency needs. He highlighted funding for economic development, Visit Florida, Space Florida, affordable housing programs, military affairs, libraries, cultural and historic preservation grants, emergency management, and a $14.1 billion transportation work program. The committee then took up PCB TED 2501, which changes documentary stamp tax distributions by redirecting certain revenues to general revenue. The bill would reinstate the general revenue service charge on the supplemental housing-related dock stamp revenue, eliminating a recurring $150 million source for the State Housing Trust Fund, and would also redirect about $466 million from the State Transportation Trust Fund to general revenue. Chair Shove said the measure has no net zero fiscal impact on state revenues and does not alter the longstanding standard dock stamp funding for affordable housing or eliminate FDOT programs, arguing the bill preserves flexibility for future legislatures. Public testimony was split. Representatives from the Florida Transportation Builders Association and the Florida Public Transportation Association warned that the transportation trust fund reduction would significantly affect FDOT’s five-year work program, especially the Strategic Intermodal System, and could reduce planned capacity improvements and transit funding. Several members also raised concerns about the housing-related changes, arguing the bill undercuts commitments made through the Live Local framework and could weaken affordable housing efforts. In closing, Chair Shove defended the bill as a necessary tightening of recurring spending and said existing affordable housing and transportation programs would still be funded through other appropriations. The committee approved PCB TED 2501 on a 10-2 vote and reported it favorably before adjourning.

Transcript Highlights:

• Um, and how many of these positions or similar positions do you have throughout KDE?"
• do you such positions or these positions do you such positions or similar<00:08:05.280><c> positions
• Has that position existed very &gt;&gt; Yeah. Has that position existed very long? long? long?
• </c> six months vacant. six months vacant. &gt;&gt; Correct.<00:09:07.440><c> Correct.
• And the position that position had &gt;&gt; Okay.

Keywords: This live stream stopped early and will be uploaded as a complete video later today or tomorrow morning., 958, all

Summary: The committee first considered a pulled contract involving the Department of Education and heard from KDE staff Karen Worth, Matthew Courtney, and later Mickey Ray Marinelli. Members asked about contract 42, which related to the 21st Century Community Learning Centers program and broader federal budget uncertainty. KDE explained that the program is forward-funded, so current-year and next-school-year funding were secure, but future funding remained unclear because federal decisions were still in flux. Members asked to be kept informed of any changes and expressed support for the program. The committee then discussed contract 43, a $105,000 general fund agreement for a communications/digital media consultant. KDE said the position was created to help increase awareness of resources for district staff, administrators, and teachers, including Read to Succeed, numeracy, MTSS, website usability, standards resources, and the Kentucky Learning Hub. Members questioned why the work was being routed through the Green River Co-op, whether the role was new, how long it had been vacant, how many similar positions existed, and whether the work amounted to internal marketing. KDE said the selected employee was coming from Thomas More University, the position had existed for about one year, the vacancy had been less than six months, and the role was intended to improve communication and online resources. Some members voiced concern about growing administrative spending and whether more positions were needed. Both contracts were ultimately approved as reviewed without objection after motions, seconds, and roll-call votes. The committee then announced that the September 25 meeting would instead be held on Tuesday, September 9 at 9:00 a.m., and adjourned after a motion.

Transcript Highlights:

• TODAY WE HAVE A BRIEF MEETING TO GO OVER THE SIDE-BY-SIDE DOCUMENT SHOWING THE HOUSE AND SENATE POSITIONS
• IN THE DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES ON LINE SEVEN TO HOUSE REDUCES 60 POSITIONS VACANT
• VACANT OVER 90 DAYS AND THE SENATE DOES NOT.
• POSITIONS OVER 90 DAYS AND SENATE DOES NOT.
• IN THE FISH AND WILDLIFE CONSERVATION COMMISSION ONLINE 217 THE HOUSE REDUCES POSITIONS VACANT OVER 90

Transcript Highlights:

• We're now going to move to issue number five, which is the elimination of vacant positions at DIR.
• At DIR, thank you for the opportunity to provide an overview of DIR's approach to the vacant position
• Even after the reductions, DIR retains several hundred vacant positions, providing continued flexibility
• We are here in respectful opposition to item five, the elimination of the vacant positions at DIR.
• We are here in respectful opposition to item five, the elimination of the vacant positions at DIR.

Summary: The subcommittee heard a series of budget and trailer bill presentations focused on labor and public employment programs. The first item covered EDD Next modernization, where EDD described progress on customer service improvements, fraud prevention, language access, and the Integrated Claims Management System. The LAO urged stronger legislative oversight as the project enters its most difficult phase, and members questioned the revised schedule, total cost, change orders, stress testing, SB 1090 implementation, and how race and ethnicity data will be protected. EDD said the overall project cost remains about $1.2 billion, that the work is being phased with disability insurance and paid family leave first, and that fraud has been greatly reduced since pandemic-era programs ended. Members also asked for follow-up information on SB 590 outreach and equity impacts. The committee then reviewed the California Workforce Development Board’s request to reduce staffing as one-time grant workloads wind down, along with trailer bill language to streamline reporting requirements. The board and Department of Finance said the staffing reductions reflect the end of surge funding and that the proposal would consolidate roughly 10 to 12 reports into one annual report, with additional reporting only if new funds are appropriated for certain programs. Senator Durazo questioned the policy direction of reducing workforce staffing, while the administration said the positions were tied to temporary grant programs and that current staffing is sufficient for ongoing duties. Members also asked about the board’s role in AI-related workforce planning and the rationale for using state funds for the High Road Construction Careers Program. A major portion of the hearing focused on the Subsequent Injury Benefits Trust Fund reforms and related staffing request at DIR. The administration and LAO described rapid growth in applications, backlog, and liabilities, saying the program’s eligibility has expanded beyond its original intent and that liabilities could reach about $30 billion by 2030 without reform. The trailer bill would tighten eligibility, apply the changes to open cases, and use the QME process and contemporaneous evidence to document preexisting disabilities. Members raised concerns about fairness to pending claimants, evaluator capacity, and the relationship to other SIBTF legislation, while the LAO said the proposal largely aligns with its prior recommendations. DIR also presented a request to eliminate vacant positions under a statewide vacancy sweep, which drew criticism from members who argued the cuts could weaken enforcement and backlog reduction efforts; the committee asked DIR to return with more detail on impacts and on its use of temporary-help authority. The final items addressed a request for additional Cal/OSHA investigative staff and a trailer bill to make permanent the revised Workers’ Compensation Appeals Board petition timeline. DIR said the BOI staffing would help investigate fatalities and serious injuries more quickly, while members emphasized the importance of family contact and timely investigations. For the WCAB item, the chair explained that the 2024 change to Labor Code section 5909, which starts the 60-day decision clock when a case is transmitted rather than when a petition is filed, has reduced pending cases and should be made permanent; the remaining backlog was reported at 460 cases, down from 637 before the change.

Transcript Highlights:

• We're now going to move to issue number five, which is the elimination of vacant positions at DIR.
• At DIR, thank you for the opportunity to provide an overview of DIR's approach to the vacant position
• Even after the reductions, DIR retains several hundred vacant positions, providing continued flexibility
• However, the positions identified for elimination were vacant, and the removal reflects a balancing of
• We are here in respectful opposition to item five, the elimination of the vacant positions at DIR.

Summary: The Senate Budget Subcommittee on Corrections, Public Safety, Judiciary, Labor, and Transportation heard presentations on labor and public employment issues from the Employment Development Department (EDD), the California Workforce Development Board (CWDB), and the Department of Industrial Relations (DIR). The committee first focused on EDD Next modernization, where EDD described progress on online claims, call center upgrades, language access, fraud prevention, and the Integrated Claims Management System (ICMS). The Legislative Analyst’s Office urged closer legislative oversight, especially as the project moves into the most difficult phase. Senators asked about the revised timeline, total cost, fraud reduction, stress testing, transparency around change orders, and the decision to phase in disability insurance and paid family leave before unemployment insurance. EDD said the overall project cost remained about $1.2 billion, that it had no major cost overruns, and that it had saved more than $20 million by shifting some shared customer portal work into ICMS. The subcommittee then considered CWDB’s request for additional operational resources and trailer bill language to streamline reporting. CWDB and the Department of Finance said staffing had been expanded during the pandemic-era surge in grant funding and should now be reduced as one-time grant programs wind down. Senators questioned the proposed staffing reduction, arguing that workforce development needs remain strong and that the board’s policy role still requires adequate capacity. The committee also discussed a proposal to consolidate multiple annual and interim reports into a single biennial report, with LAO supporting the streamlining. Members asked about reporting for specific programs and the cost savings from reducing duplicative evaluations. A major portion of the hearing addressed DIR’s proposed reforms to the Subsequent Injury Benefits Trust Fund (SIBTF) and related workload funding. DIR and LAO described rapid growth in applications, a large and growing backlog, and sharply rising liabilities and employer assessments. The administration’s trailer bill would tighten eligibility, apply reforms to open cases, and use contemporaneous evidence and QME reports to document preexisting disabilities. LAO said the proposal largely matched its prior recommendations and would help return the program to its original intent. Senators raised concerns about fairness to pending claimants, the effect on workers with undocumented preexisting conditions, and whether the QME system could absorb the added workload. The committee also heard DIR’s request to eliminate vacant positions under a statewide vacancy sweep, with members objecting that some vacancies reflect unmet enforcement and safety needs rather than excess capacity. The hearing continued with DIR proposals for additional Cal/OSHA investigative staff, permanent changes to Workers’ Compensation Appeals Board petition deadlines, and apprenticeship-related funding increases. DIR sought 14 permanent positions for its Bureau of Investigation to handle serious workplace fatalities and injuries, and members emphasized the importance of timely investigations and family communication. The WCAB requested making permanent a 2024 change that starts the 60-day reconsideration clock when a case is transmitted rather than when the petition is filed; the board said this had reduced the number of cases awaiting decisions from 637 to 460. Finally, DIR proposed increasing apprenticeship training grants from $3 million to $20 million annually using the Apprenticeship Training Contribution Fund, citing an $80 million fund balance and workforce demand tied to rebuilding and infrastructure needs, and then began discussion of a separate request to expand pre-apprenticeship programs.