Transcript Highlights:

• However, this budget does the opposite.
• plan for 2020. 25-26, the budget year.
• That's because unlike appropriations or re-appropriations through the budget process, continuously appropriated
• budget change proposals.
• that if to the extent that there are any budget impacts they will follow the regular budget process.

Keywords: 988, house, all

Transcript Highlights:

• We still have a lot of fragmentation in local budgeting processes, where investments at the local level
• Because of that, you all adopted strategic resource management in your annual budgeting process... you
• all adopted strategic resource management in your annual budgeting processes, where you all established
• their enrollment projections in their FMPs to inform their annual budgeting processes.
• They're also using their forecast to inform the state's budgeting process, and those plans are often

Summary: The committee first heard a presentation on strategic resource management in public education. LESC staff and PED officials argued that New Mexico has increased school funding, but local budgeting and planning remain fragmented and overly compliance-driven. They described long-term pressures including declining enrollment, rising special education costs, falling cash balances, changes in federal funding, and leadership turnover, and said schools need more intentional multi-year planning tied to student outcomes. They also outlined the many disconnected planning requirements schools must complete, compared New Mexico’s current approach with Ohio’s three-year budget forecasting model, and recommended continuing multi-year appropriations, adding $2.5 million for state grants in the unified application, and directing LESC, LFC, and PED to develop a long-term financial planning proposal. PED said it is working to reduce administrative burden through school accreditation, a unified application for federal and state funds, and internal alignment of guidance and coaching, with pilot schools reporting time savings and better alignment. Members raised concerns about four-day school weeks, the burden on small districts, the need for outcomes and return on investment, and whether the state should move toward a two-year or three-year planning cycle; staff clarified that the proposal was to streamline or eliminate redundant requirements, not add another layer. The committee then received an update on the Educator Fellows program. PED described it as a Grow Your Own pipeline that employs candidates as supplemental educational assistants while they work toward licensure, providing salary, benefits, paid leave, mentoring, and coursework support. Officials said the program helps address teacher shortages, improves student-to-teacher ratios, increases workforce diversity, and supports the Martinez-Yazzie action plan. They reported 370 current fellows across 86 LEAs and about 180 schools, with many fellows being people of color, first-generation college students, or second-career educators; roughly 85 are expected to become certified this year. A local HR director from Belen testified that the program has been especially valuable in small communities, where fellows are already rooted in the community and several have moved into teaching roles. Members asked about high school recruitment, tuition, retirement and benefits, the relationship to the Higher Education Department’s Grow Your Own scholarship, and the role of university partners. PED said fellows choose among accredited higher education partners, the program is separate from the scholarship but complementary, and the state is also building an apprenticeship model and seeking to expand the program to more LEAs, though some districts are on a waiting list because of funding and local match requirements.

Transcript Highlights:

• So the budget itself is a budget proposal that we do have for this.
• So as part of the Governor's budget and May Revision process, past-year savings are estimated and accounted
• Because we are required to assess this funding annually via the typical budget process, that's done on
• , and for budget year 2026–27... ...1% from the Governor's Budget, and for budget year 2026–27, down
• process.

Keywords: 987, senate, all

Transcript Highlights:

• So you will be watching that regulatory process? The regulatory process to make...
• The budget of which we will have to get started and get caught up based on just the normal process of
• Senator, we haven't begun the budget process.
• I'm not willing to comment on any programs that have not been articulated as part of a budget process
• With zero-based budgeting have for getting towards a balanced budget?

Transcript Highlights:

• Again, I think there was bipartisan concern that the LBO budget process has to be respected, and we want
• Office and the legislative budget process is respected.
• Office and the legislative budget process is respected.
• office and the legislative budget process is respected.
• legislative budget office and the legislative budget process<00:53:48.680> is<00:53:48.960>

Keywords: 1187, senate, all

Summary: The Senate Finance Committee held a hearing on the fiscal note process, prompted by concerns raised in a prior hearing about the fiscal note for the Paid Family and Medical Leave law. Chair Marty, Senator Pratt, and Senator Wiklund said the goal was not to revisit the bill itself but to strengthen understanding of fiscal note standards, the role of the Legislative Budget Office (LBO), and communication with agencies. They emphasized bipartisan concern that fiscal notes must be respected and that the process should be clearer going forward. Christian Larison of the LBO explained that the 2024 fiscal note issues stemmed from three main problems: choosing the proper baseline for a program that had not yet started, interpreting the seven-day qualifying event/waiting period, and determining whether DEED could adjust the first-year premium rate. He said the LBO, DEED, MMB, and House fiscal staff ultimately used the October 2023 actuarial analysis as the baseline because it was the most recent and likely most accurate estimate, but that choice meant the fiscal note did not show the difference from the 2023 enacted budget. He also described how DEED later interpreted the seven-day provision as a waiting period and how the premium-rate assumptions affected the fiscal impact. Larison outlined possible responses, including more assertive early communication from the LBO, providing more detailed analysis in unusual cases, and possibly creating a working group through the LBO Oversight Commission to consider new standards for substantial assumption changes, complex new programs, and third-party actuarial work. He also noted the LBO has authority to issue unapproved fiscal notes if standards are not met, though it has not used that authority. In questions, Senator Murphy asked about protecting the credibility of fiscal notes, and Larison said maintaining independence, objectivity, and consistent standards is central to the LBO’s role. No votes or formal actions were taken at the hearing.

Transcript Highlights:

• process.
• When we look at the average time that it takes to process and complete the regulatory development process
• process, and it is a two-phase process.
• The budget process includes you guys, and we, of course, want to have that conversation.
• Some of this is on budget, the budget augment.

Keywords: 988, house, all

Transcript Highlights:

• This is a budget process, and I call this a good first draft.
• This is a budget process, and I call this a good first draft.
• budget through the process back into the budget through the process with<01:02:40.079> the<01
• <01:51:35.119> process<01:51:35.679> on rest of the budget process on rest of the budget
• <02:04:46.239> process does your team start the budget process does your team start the budget

Keywords: Several minutes after the convene vote and before the introduction failed to properly steam. This version was pulled from a local back up., 958, all

Summary: The House convened with 97 members present, declared a quorum, approved excusing absent members, and suspended the rules to allow co-sponsorships and vote modifications. The journal for February 25, 2026 was approved. The clerk also reported that the Senate had passed Senate Bills 98 and 122 and requested concurrence. The House then received second-reading reports on a range of bills, including measures on prison educational programs, respiratory care, dietitians, wildlife depredation, temporary structures, military families, civil rights, local boards of education, light pollution, controlled-substance prescribing licenses, youth health services, class sizes for exceptional children, the athletic trainer compact, limited commercial driver’s licenses, and Senate Bill 145 relating to the Department of Agriculture and Alcohol Beverage Control. Committee reports moved several bills forward, including the main budget bills House Bill 500 and House Bill 504, along with measures on workforce investment, data centers, domestic violence, guardians ad litem, domestic relations, health delivery and “food is medicine” initiatives, state personnel, open records, and fish and wildlife resources. House Bill 500 and House Bill 504 were taken from the Rules Committee and placed on the orders of the day. House Bill 500, the executive branch budget bill, was then taken up for third reading and explanation. Members presented extensive floor explanations of House Bill 500 and House Committee Substitute 1, describing it as a “good first draft” of the executive budget. Supporters said the proposal emphasizes restrained spending growth, base reductions with exemptions for key areas, employee salary increments, and deposits to the Budget Reserve Trust Fund for future one-time investments. They highlighted funding for K-12 education, postsecondary aid and workforce training, Medicaid and behavioral health, public health infrastructure, pensions, veterans, public safety, economic development, tourism, and state technology and facility maintenance. The budget substitute was adopted by voice vote, and the discussion continued with detailed descriptions of the bill’s provisions; no final passage vote was shown in the excerpt.

Transcript Highlights:

• The budget that we need it for.
• When the PAL process, project approval lifecycle process, is approved by the California Department of
• Understood and looking forward to the discussions in the next few weeks as we go through the budget process
• You are in the process.
• The average budget right now is $218 million. The average budget right now is $218 million.

Keywords: 987, senate, all

Transcript Highlights:

• process, that the process sucked.
• Tony Bucco for all the support that they give the budget committee throughout this process, the members
• process and worked to improve legislation and the budget that we are about to vote on here today.
• So let me share the quick highlights of this budget. The budget is a $60.75 billion budget that...
• The budget is a $60.75 billion budget that reflects the governor's introduced budget amount.

Keywords: 1146, all

Transcript Highlights:

• in our budget to date.
• in our budget to date.
• > filing<02:19:25.120> process application process, the filing process application process
• budget process this year navigated this budget process this year with<02:19:40.399> the<02:19:
• . budget. budget.

Keywords: 1191, senate, all

Transcript Highlights:

• process for doing that is not the most nimble and quick process on the planet so that sometimes takes
• process. positions and probably also not a secret that the state's process for doing that is not the
• The state processes are not, they, they, it’s our understanding that the state processes were really
• federal processes.
• Senate Budget Subcommittee No. 2 is adjourned.

Keywords: 987, senate, all

Transcript Highlights:

• In terms of processing the complaints, we are doing continuous process reengineering, but our system
• I'm here to support the budget request for CRD, as well as Senator Wiener's budget request of $10 million
• We are here to support CRD's budget and Senator Wiener's budget ask of $10 million.
• While we know there's a long way to go in the budget process, we have heard from homeless service providers
• Year's budget for HAP 7 and a promise of more funding for HAP 8 and next year's budget.

Summary: The subcommittee heard an extensive presentation on the administration’s housing reorganization proposal, which would centralize multifamily affordable housing finance under the new Housing Development and Finance Committee (HDFC) and align it with the Governor’s trailer bill language. Administration officials said the plan is intended to create a one-stop application and award process, reduce duplicative timelines and costs, and pair state subsidy with private activity bonds and federal tax credits more efficiently. They also described proposed changes to the Affordable Housing and Sustainable Communities program, including shifting a larger share of funding toward housing-related awards while preserving a portion for sustainable communities investments. The Legislative Analyst’s Office generally supported the streamlining concept but recommended changes to the proposed bond set-aside timing and urged flexibility for integrated applications and future reporting on demand. Senators, especially Senator Cabaldon, raised concerns that the proposal could weaken the original climate-and-transportation purpose of the sustainable communities program and that the reorganization would be undercut by the lack of new housing production funding in the budget. The item was held open without a vote. The committee then received a report from the California Debt Limit Allocation Committee and the California Tax Credit Allocation Committee on federal and state housing tax credits. Staff explained that the federal H.R. 1 change lowering the bond-financing threshold from 50% to 25% greatly expanded the number of projects able to use the 4% federal tax credit, allowing California to fund many more projects and units. They also described the state low-income housing tax credit as an important gap-filling tool for projects that still need additional subsidy, and noted existing set-asides for rural, homeless, at-risk, and extremely low-income projects. Members discussed rehabilitation as well as new construction, and the item was informational only. Finally, the Civil Rights Department reported on the effects of federal civil rights policy changes and on three programs facing expiration: California vs. Hate, the Community Conflict Resolution Unit, and Investigations and Conciliation Enhancement. Director Kevin Kish said federal cuts and policy shifts have reduced support for fair housing and other civil rights functions, while CRD’s caseload has grown from about 8,700 open matters a year ago to more than 12,000, with a six-month wait for interviews despite overtime triage efforts. Senators expressed strong support for continuing the programs and concern about the broader federal rollback of civil rights enforcement. The department said it is using overtime, intake triage, and outreach partnerships to manage the workload and direct Californians to appropriate state, local, and nonprofit resources.

Transcript Highlights:

• The actual number will be trued up for the tentative budget whenever we go through the TRIM process going
• Question for you—I might have for the other water management districts too—but when the budget process
• Chair, and I have the same question as well, kind of about the budget process and how those projects
• But question about the budget process, same as the others, and planning for your new projects.
• Same question that I asked the other management districts on the budget process and selecting and planning

Summary: The Appropriations Committee on Agriculture, Environment, and General Government heard budget presentations from the Northwest Florida, Suwannee River, St. Johns River, Southwest Florida, and South Florida water management districts for FY 2026-2027. Each district described its preliminary budget, major funding sources, staffing levels, and priorities within the four core missions of water supply, water quality, natural systems, and flood protection. Common themes included reduced budgets from the prior year due to completion of major projects, continued reliance on state appropriations and ad valorem revenue, rising construction and maintenance costs, and the need to maintain aging infrastructure while advancing alternative water supply, springs restoration, flood control, and land management projects. Committee members repeatedly asked how much of each district’s budget and personnel were devoted to the core missions, how maintenance and operating projections were developed, and how projects were selected. The districts generally said most spending was tied to core responsibilities, with administrative overhead relatively small, and explained that budgets are built through a mix of staff analysis, governing board direction, strategic basin planning, and cooperative funding with local, state, and federal partners. Several districts highlighted specific projects, including Water First North Florida, Black Creek, Taylor Creek Reservoir improvements, Crane Creek, Everglades restoration, and various springs and watershed projects. The districts also noted challenges from hurricanes, inflation, cybersecurity, and aging water control structures. South Florida Water Management District’s presentation focused on Everglades restoration and the large-scale infrastructure needed to move, store, and clean water in South Florida. The director said the district’s $1.05 billion preliminary budget is largely for flood control, water supply, ecosystem restoration, and maintenance of extensive canals, levees, pumps, and reservoirs, and emphasized that recent restoration investments are producing measurable water quality and salinity improvements. No votes were taken on the district budgets, and the committee adjourned after the presentations and questions.

Transcript Highlights:

• In terms of processing the complaints, we are doing continuous process reengineering, but our system
• I'm here to support the budget request for CRD, as well as Senator Wiener's budget requests of $10 million
• We are here to support CRD's budget and Senator Wiener's budget ask of $10 million.
• While we know there's a long way to go in the budget process, we have heard from homeless service providers
• This year's budget for HAP 7 and a promise of more funding for HAP 8 and next year's budget.

Keywords: 987, senate, all

Transcript Highlights:

• statewide budget pressures.
• Looking to the budget year 2025-26, the state budget plan for UC maintains the 7.95% base reduction,
• If you look at my budget, the budget I get to allocate is about 1.6 to 1.7 billion dollars.
• So looking at deferrals, how does the budgeting process work with deferrals for the UC system, and how
• Into our budget, and we had the payments for that to pay it off in our budget.

Keywords: 988, house, all

Transcript Highlights:

• While this budget isn't perfect, and no budget ever is, this budget delivers for hardworking Arizonans
• While this budget isn't perfect, and no budget ever is, this budget delivers for hardworking Arizonans
• process.
• process."
• budget.

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

Transcript Highlights:

• person and recognize the budget person and recognize the budget situation<00:24:30.480> that<
• But to end this budget year without having done anything in the budget on the top priority of the governor
• But to end this budget year without having done anything in the budget on the top priority of the governor
• They see budget cuz they see the number.
• <00:32:50.240> And the legislative process. Here it is. And the legislative process.

Keywords: 1191, senate, all

Transcript Highlights:

• The budget includes $2.7 million in the budget year, decreasing to $800,000 in 2027-28, to implement
• The budget also includes a few General Fund solutions to address projected budget shortfalls.
• And we did build into the budget $125 million for the budget year and anticipated savings, growing to
• It would follow the budget timeline, so it would start, I believe, the process in July, but I can confirm
• The 2024-25 budget, we've provided where we met, like how far we got at Governor's Budget, but we're

Summary: The subcommittee heard May Revision presentations for the Office of Emergency Services, Judicial Branch, CDCR, and the Department of Justice, with the LAO offering comments and recommendations throughout. For Cal OES, the administration outlined funding for relocating the Red Mountain communications site, increased FEMA reimbursement authority, cybersecurity grants, next-generation 911 support, and a reduction to the Flexible Cash Assistance for Survivors of Crime program. Members raised concerns about VOCA backfill and disaster reimbursement, while the LAO recommended approving the 911 request with reporting, adding contingency planning for cybersecurity grants, clarifying the FEMA reimbursement language, and increasing reporting on emergency spending. For the Judicial Branch, the May Revision included funding for implementation of the Trial Nations Access to Justice Act, reductions tied to court facilities and employee benefits, and General Fund solutions such as a reduction to the pretrial release program, a reversion from the Trial Court Trust Fund, and elimination of the jury duty pilot program. The LAO cautioned that the pretrial reduction could affect detention and release decisions and recommended tighter legislative oversight over the trust fund transfer and reallocation language. Members questioned the impact of the pretrial cut, the lack of Prop. 36 court funding, and the rationale for the jury pilot elimination; the Judicial Branch said it was generally supportive of the budget as proposed. CDCR presented requests for roof repairs, fire alarm replacements, CalAIM-related costs, and trailer bill changes on incarcerated college students, mental health hiring, and tuberculosis testing, along with a planned prison closure by October 2026. The department also proposed reducing or delaying several items, including radio replacement, ADA improvements, COVID mitigation, and some facility upgrades, while adding a $125 million placeholder for consultant-driven operational savings. The LAO recommended rejecting or reducing several San Quentin-related proposals, questioned the staffing and contract medical requests, and urged more transparency on the consultant savings plan; members expressed concern about the realism of the savings targets and the potential legal or operational risks from delaying ADA and radio projects. For DOJ, the May Revision proposed ongoing funding and 44 positions to defend against federal actions, IT and accounting system upgrades, implementation funding for AB 1877, and a special fund loan. The LAO supported the KLETS connection but asked for a contingency plan if the new DMV link is delayed, noted that AB 1877 would not be fully implemented without additional funding, and recommended limiting and reporting on the federal accountability workload. Members questioned the size and permanence of the DOJ request, the use of the earlier $25 million special session appropriation, and the pace of federal litigation; DOJ said the new request would support ongoing litigation, expert assistance, and coordination across multiple cases and states.

Transcript Highlights:

• So the May revision follows through with the governor's budget commitment to balance the budget over
• That would be budgeted as $25 million within CNRA's budget, $25 million within WCB's budget, and $75
• Budgets are about prioritizing.
• That's what the process is.
• It’s going through the legislative process, and this expedited negotiation process won’t work.

Summary: The hearing focused on the governor’s May Revision proposals for transportation, natural resources, climate, and related programs, with the Department of Finance and the LAO presenting competing views on the state’s fiscal condition. Finance said the budget remains balanced over two years, with major climate-bond, water, parks, transportation, DMV, and agriculture proposals, while the LAO argued the state still has a structural deficit and should reject or defer many new discretionary spending items, preserve reserves, and be cautious about ongoing commitments. The LAO specifically questioned the timing and scale of new spending for programs such as Clean California, Healthy Rivers and Landscapes, and the Golden Gate Fields acquisition, and urged more clarity on future obligations and revenue scenarios, including for the Greenhouse Gas Reduction Fund. A major portion of the hearing was devoted to the Healthy Rivers and Landscapes proposal for Bay-Delta water quality implementation. Secretary Wade Crowfoot and Finance described it as an enforceable, science-based alternative to a more traditional regulatory approach, with the state’s $25 million request intended to support early implementation, monitoring, habitat restoration, and environmental flows. The LAO countered that the Water Board has not yet adopted the updated Bay-Delta plan, that the proposal may be premature, and that the Legislature should wait for more information on the state’s total funding commitment and the program’s long-term costs. Several members expressed support for the program as a way to reduce conflict and protect water reliability, while others echoed concerns about timing and fiscal exposure. The committee also examined the proposed $125 million Proposition 4 contribution toward acquiring the Golden Gate Fields property for a shoreline park and habitat project. State officials said the acquisition is a time-sensitive, once-in-a-generation opportunity, with an appraised value of $175 million and additional philanthropic and local funding expected to close the gap. Members questioned whether the project had gone through the usual competitive process, whether the site is the best use of scarce park bond dollars, and how public access, habitat, and disadvantaged-community priorities would be protected. The discussion ended without a vote, and the committee moved on to transportation items including Clean California litter abatement, the Games Route Network, homeless encampment coordinators, and DMV modernization and field office proposals, with LAO recommending rejection or delay on several of those requests as well.

Transcript Highlights:

• The DHS cost to continue line is our regular budgeting process where we look at The DHS cost to continue
• line is our regular budgeting process where we look at our utilization and project forward what we anticipate
• Armstrong's budget.
• a bidding process.
• Yep, so when we budget, we use the projected FMAPs to budget, so that was originally budgeted at 50%.

Keywords: 908, all

Summary: The Senate Appropriations HR Division met with all members present to review the medical services portion of the HHS budget. Sarah Aker, Executive Director of Medical Services, walked the committee through several budget items, including HCBS cost-to-continue adjustments, the DD bed assessment, expansion of value-based purchasing, targeted rate increases for home health and QSP services, and the cross-disability waiver. Members generally supported the targeted increases for home health and QSP, and Aker explained that the cross-disability waiver funding would support startup work, service design, and infrastructure ahead of a planned July 1, 2028 implementation. The committee spent significant time on rate-setting and provider payment issues. Members discussed ambulance rate rebasing, with several senators expressing concern that the proposed increase was too high relative to peer states; the committee ultimately moved toward reducing that item to $1 million rather than zero so it could be revisited in conference committee. They also discussed a House-added critical access hospital networking grant and similarly leaned toward reducing it to $1 million. Aker explained the department’s value-based purchasing plans, including use of a vendor selected through RFP, and clarified how the department’s existing Medicaid managed care and hospital value-based programs work. A major portion of the meeting focused on long-term care and basic care payments, including a House-added extension of the $5 per day basic care add-on and a proposed shift in nursing facility incentive grants toward a withhold-based model. Senator Mathern indicated he would bring an amendment to delay or modify the withhold change, and Aker said the department would prefer language that directly addresses whether a withhold may be implemented. Members also discussed 1915(i) services, FMAP changes, the Medicaid legacy system modernization carryover, and a House-added legislative intent section on medical assistance. The committee adjourned for the morning with plans to return later to continue Human Services budget work and revisit unresolved items in conference committee.