Transcript Highlights:

• We release from finance on this measure.
• Um, and we have approval from the Finance Committee.
• Thank you. uh uh Finance Committee. Please be uh uh Finance Committee.
• We release from the finance committee.
• <02:07:26.320> on and then we can request from finance on and then we can request from finance

Keywords: 910, house, all

Transcript Highlights:

• Do you ever provide nominal financing for projects? What would you consider nominal financing?
• <00:08:34.800> for you ever provide nominal financing for you ever provide nominal financing
• :48.560> financing<00:08:49.560> well<00:08:50.360> typically amount of financing
• value generated by taxpayer financed value generated by taxpayer financed Housing<00:33:43.399><
• <00:37:04.440> both h-22 so that the fund May Finance both h-22 so that the fund May Finance

Keywords: 912, senate, all

Summary: The committee heard testimony on a series of housing measures focused on streamlining approvals, reshaping financing programs, and expanding affordability requirements. SB 27 would exempt state-financed housing developments from County Council approval; SB 38 would bar county legislative bodies from changing housing proposals in ways that increase project costs; SB 25 would let counties reduce housing capacity in one area only if they offset it elsewhere with no net loss; and SB 379 would require perpetual affordability covenants for HHFDC projects and prohibit affordable housing in special flood hazard areas. SB 378 would create an HHFDC working group to identify mixed-use Maui properties for possible acquisition, SB 414 would authorize condemnation proceedings for a new Lānaʻi access road tied to disaster recovery, and SB 13 would eliminate the state income tax mortgage interest deduction for second homes. Testimony was mixed across the bills, with state agencies and housing advocates generally supporting faster permitting and more production, while county planners, NAIOP, Catholic Charities, and others raised concerns about local control, marketability, financing feasibility, and long-term affordability enforcement. A major portion of the hearing centered on the rental housing revolving fund. SB 70 would limit eligible applicants to government agencies or organizations that reinvest all surplus into additional housing; HHFDC said most developers would not object in principle but questioned how the surplus requirement would be enforced, while NAIOP and Catholic Charities opposed it as too restrictive and difficult to monitor. SB 71 would amend the fund’s preference criteria and eligibility rules, and SB 163 would require HHFDC to prioritize projects with the shortest repayment terms and highest unit production per dollar per year. HHFDC and some advocates supported the goal of faster recycling of funds, but NAIOP and Catholic Charities warned that shorter loan terms and narrowed preferences could burden developers and disincentivize projects, especially for lower-income tenants. The chair indicated SB 163 would be deferred and its concerns folded into amendments to SB 71. In decision-making, the committee voted to pass SB 27, SB 38, SB 70, and SB 71 with amendments, and SB 25 unamended. The chair said SB 27 would be amended to include projects with a state financing commitment and a report note that such projects still undergo 21-38 review; SB 38 would receive technical changes and language preventing county bodies from imposing cost-increasing conditions; SB 70 would add language addressing enforcement of the surplus requirement and a preamble citing the need to recycle taxpayer-financed housing value; and SB 71 would be amended to incorporate concerns raised in SB 163, including a broader preamble and revised priority criteria. SB 163 was deferred, while the other measures on the agenda were heard but no final action was described in the transcript excerpt.

Transcript Highlights:

• Some of them are coming down from finance, but until they get here, I'd like to excuse the members of
• finance.
• But one small correction: Senate Finance will meet in Room 322, and... look those over.
• But one small correction, Senate Finance will meet in 322, and... Mr.
• President, one small correction: Senate Finance will meet in Room 322.

Keywords: 996, all

Transcript Highlights:

• Everybody, we're here for day two of the New Mexico Finance Oversight Committee.
• Several of us are on Senate Finance or House Appropriations.
• , not on the financing options that are available to them.
• I mean, you're listening to finance right there. Just talk about finance.
• Well, three finances, seven million dollars.

Transcript Highlights:

• and Policy and be re-referred to the Committee on Health Finance and Policy.
• I recognize the finance and policy.
• to the Committee on Transportation Finance and Policy.
• <00:09:48.160> and committee from agriculture finance and committee from agriculture finance
• I have on transfer finance and policy.

Keywords: 1183, house

Transcript Highlights:

• Finance and Policy and be re-referred to the Committee on Agriculture Finance and Policy.
• Committee on Education Finance and be re-referred to the Committee on Children and Families Finance
• the Committee on Children and Families Finance and Policy.
• Committee on Health, Finance and Policy.
• and Policy and be re-referred to the Committee on Health Finance and Policy.

Transcript Highlights:

• I'm going to call this meeting of the Elections Finance and Government Operations Committee to order.
• at rates established by the Finance Committee during the budgeting process.
• We delayed certain filings with the Campaign Finance Board.
• This would be a motion to amend the motion to send it to State Government Finance.
• Who does agree that this bill does not need to go to State Government Finance.

Transcript Highlights:

• Department of Finance. Raise your hands. From the Department of Finance? Where are you?
• Department of Finance? Raise your hand. Really, really big, really big. The Pirate of Finance.
• Colby White, Department of Finance.
• The financing tools that would be used.
• to access financing. who perhaps may not be able to qualify for traditional financing to access financing

Keywords: 988, house, all

Summary: The committee heard a series of May Revision budget items, beginning with the State Controller’s Office. SCO described requests for Fiscal Book of Record stabilization, payroll system implementation, ACFR reporting support, and unclaimed property outreach funding. Members focused on the Fiscal system’s July go-live, the improved timeliness of the ACFR, and the unclaimed property program’s roughly $15 billion balance and outreach efforts. The Department of Finance and LAO raised no major concerns, and the item was closed after discussion of how the new outreach funding would be used. The committee then considered several revenue proposals. Finance presented a proposal to tax pre-written digital software and SaaS, with estimated General Fund gains of $450 million in 2026-27 and $900 million ongoing; LAO suggested broader digital tax changes and a business-use exemption, while industry groups opposed the measure as a tax on essential digital tools. CDTFA also presented an administrative request tied to the software tax, and later a $10 million budget reduction reflecting lower operational needs. The committee then heard a federal conformity proposal for new children’s tax-deferred accounts, which LAO supported, and a proposal to cut the first-year LLC/LP minimum tax from $800 to $400, which Finance said would aid small business formation but LAO argued was poorly targeted and would reduce revenue. Another major item was a permanent business tax credit limitation beginning in 2027, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability. Finance said it would raise about $850 million in 2026-27 and more in later years, while LAO noted it would mainly affect large firms using the R&D credit and could also touch California Competes and other programs. Public testimony split sharply between business groups opposing the cap and advocates supporting it as a progressive revenue measure. The committee also heard FTB’s CalFile realignment proposal, which would retain a smaller staff to continue improving the free filing system and return most of the prior funding to the General Fund. The hearing concluded with the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which brings in about $221,000 to $266,000 annually for arts grants and teacher stipends. Members and advocates supported the item but also urged larger arts funding, including the Performing Arts Equitable Payroll Fund. The Governor’s Office of Business and Economic Development then presented proposals for the California Civic Media Program, CA RISE reappropriation, and a reversion of unused Chips for America facility funds; LAO supported the latter two but was cautious about new civic media spending. Members raised concerns about the civic media program’s scope, including the exclusion of broadcast and the lack of a specific ethnic media set-aside, while GoBiz said funds would begin going out in the fall if approved.

Transcript Highlights:

• from house finance from house finance was<01:06:12.319> use<01:06:12.760> what<01:
• his his uh hearing meeting with finance his his uh hearing meeting with finance and<01:28:13.040
• Okay. commercial litigation financer doesn't commercial litigation financer doesn't want<02:31:45.520
• so if we had any commercial financing so if we had any commercial financing agreement<02:33:59.840
• prevent one of these litigation finances prevent one of these litigation finances from<02:39:38.000

Keywords: 928, house, all

Summary: The subcommittee first reviewed its schedule, noting that 13 bills were being executed the next day and that additional subcommittee work would be scheduled around Town Meeting Day and the following session days. The chair explained that the committee would not meet on Town Meeting Day, would handle the remaining bills on the next available subcommittee day, and would continue any unfinished items later in the month. The committee then took up House Bill 774, which concerned Medicare-related coverage issues. Members discussed the bill’s purpose and the differences between Medicare standard and Medicare Advantage, with one member saying the proposal was informative but did not offer a workable solution. The committee also moved to inexpedient to legislate on House Bill 185, and the motion passed on a 6-0 vote. House Bill 241, relating to alternatives to opioids, was retained for further work. Members said the bill raised concerns about insurers effectively practicing medicine and about the lack of evidence on the efficacy of some alternative treatments, while also noting that chiropractic coverage mandates already exist in statute. The committee voted to retain the bill, with the motion passing 6-0. The most extended discussion was on House Bill 648, which would expand insurance coverage for glucose monitoring. Testimony and committee comments focused on whether coverage should be tied to insulin use or instead to a physician’s medical judgment, the role of continuous glucose monitoring for people with type 2 diabetes who are not on insulin, and the potential cost impact. An insurance department fiscal analyst said the original $22-per-member estimate was based on the unamended bill and that the amended version would require updated analysis; members agreed to retain the bill to narrow the eligible population and revisit the language later.

Transcript Highlights:

• Retained policy committee or finance? Finance. Thank you.
• Finance, and that's an exercise Finance has done in the past. They'll do both.
• House Finance will do, it's similar to Senate Finance with your tabling motions, is House Finance will
• <00:54:17.280> They Finance. So, here's another bill. They Finance.
• finance on what to do. finance on what to do.

Keywords: 1191, senate, all

Transcript Highlights:

• I just heard the chair of finance I just heard the chair of finance talking<00:32:47.000> about
• recommended by the committee on finance. recommended by the committee on finance.
• the report of the committee on finance. the report of the committee on finance.
• instances of amendment from your finance instances of amendment from your finance committee.<01:
• recommended by the Committee on Finance. recommended by the Committee on Finance.

Keywords: 927, senate, all

Transcript Highlights:

• Allison Hewitt, Department of Finance. I'm not in a position... Department of Finance.
• Nicole Griffith, Department of Finance. Joshua Winters, Department of Finance. Nothing to add. LAO.
• Kayla Landman, Department of Finance.
• Amanda Garcia, Department of Finance.
• Okay, Department of Finance. Matthew Perkey with the Department of Finance. Nothing further.

Keywords: 987, senate, all

Summary: The committee held an informational hearing on the Governor’s May Revision proposals for labor, public safety/judiciary, and transportation, and no votes were taken. In Part A on labor, the Employment Development Department reviewed proposals for EDD Next document management system funding, updated UI loan interest costs, disability insurance and paid family leave benefit and administration adjustments, WIOA funding changes, UI administrative and benefit changes, school employee benefit adjustments, an EMT training reappropriation, and a technical correction tied to EDD Next. PERB discussed funding tied to AB 28 and AB 1, including litigation-related workload and new jurisdiction over legislative employees. DIR presented proposals for legal unit reclassifications, two major IT modernization projects, a new Cal/OSHA emerging technologies unit, a COIA reappropriation, and trailer bill language on electronic assessment payments and the DWC director salary cap. CalHR proposed additional funding for a consolidated employee assistance program contract, and CalPERS and CalSTRS presented budget adjustments tied to investment costs and state contribution changes. Members focused heavily on UI debt and interest payments, asking the administration for a plan to reduce the outstanding loan and relieve employers. Finance said no specific repayment plan was included in the May Revision, while LAO said the state’s UI tax structure is structurally insufficient and that any debt payoff should be paired with tax-system reform. Senators also questioned EDD Next costs and timelines, PERB’s caseload and staffing needs, and DIR’s emerging technologies unit, with LAO noting that the unit would appear focused on physical workplace safety rather than broader AI labor issues. CalHR said the new EAP contract would consolidate services, improve access to clinicians, and lower costs relative to the current model. CalPERS defended higher external management fees as part of a strategy to pursue higher net returns, while some members pressed for more transparency about private investments; CalSTRS said it was not prepared to address investment-strategy questions at this hearing. Public comment in Part A was dominated by advocates urging support for an immigration enforcement emergency relief fund, along with comments supporting the Jails to Jobs proposal, the Apprenticeship Innovation Fund, and additional PERB funding. The chair noted that many of the immigration-related requests might fall under other committees and said staff would follow up. In Part B, Finance and LAO outlined judicial branch and DOJ May Revision items, including funding for court interpreter services, appellate court security, lactation room implementation delays, courthouse construction reappropriations, and DOJ budget increases. LAO recommended approving the language-access proposal with a report on reducing interpreter cost growth and reducing the General Fund backfill for state court facilities by $10 million on an ongoing basis.

Transcript Highlights:

• In finance through education has been so simple.
• Senate Bill 350, do pass, and thus referred to the Finance Committee.
• Senate Bill 370, do pass, and that's referred to the Finance Committee.
• Senate Bill 445, do pass and thence referred to the Finance Committee.
• House Bill 89, do pass, and that's referred to the Finance Committee.

Transcript Highlights:

• It's a taxing entity's financing tool.
• It's a taxing entity's financing tool.
• The real difference is in the timing of the financing of those facilities.
• This financing tool keeps the cost of housing more affordable and attainable.
• This financing tool keeps the cost of housing more affordable and attainable.

Summary: The committee heard testimony first from the Texas General Land Office and School Land Board. GLO officials described the agency’s role in managing more than 13 million acres of state lands and mineral interests for the Permanent School Fund, overseeing the Alamo, coastal programs, veterans’ services, and federal disaster recovery. They said the agency has generated about $6 billion for the Permanent School Fund since Commissioner Buckingham took office, and that its disaster recovery portfolio is about $14 billion across multiple events, with more than 22,000 housing units rebuilt or reconstructed since Hurricane Harvey. Members asked about land purchases such as Brewster Ranch, rare earth mineral leasing, SpaceX-related beach access, and whether the lands are public access lands; GLO staff said the holdings are managed to maximize revenue for education, that most land is leased rather than open to public access, and that they are coordinating on coastal access and compliance. On the School Land Board, members sought clarification on the difference between GLO-managed lands and the Permanent School Fund Corporation’s investment role, and staff explained that GLO generates the revenue while the separate corporation invests it. No votes or formal actions were taken. The Board for Lease of University Lands then testified. University Lands officials explained that they steward 2.1 million acres of surface and mineral interests in West Texas for the Permanent University Fund, which supports UT and Texas A&M institutions. They said a 2025 lease sale produced about $50 million in bonus revenue from 28,000 acres, and described the Board for Lease’s role in approving lease forms, lease sales, and development agreements. Members asked about the size and use of the PUF, how distributions work through UTIMCO, whether PUF money can be used for athletics, and how the land is managed; the witness said the fund is a constitutional endowment, the land is largely leased rather than sold, and distributions are generally used for buildings, labs, and other permanent structures, with some institutions also using a portion for operations. No votes or formal actions were taken. The committee then took up municipal utility districts. Testimony from a law firm, the Texas Municipal League, Fort Bend County Commissioner Vincent Morales, and Johnson Development largely supported MUDs as a financing tool for infrastructure tied to growth. Witnesses said MUDs help fund water, sewer, drainage, roads, parks, and related infrastructure, allowing development to proceed without shifting costs to existing taxpayers and helping keep housing affordable. They emphasized that MUDs are created with disclosure to homebuyers, are subject to the Open Meetings Act and Public Information Act, and are overseen by TCEQ for bond issuance and related financial stress tests. Members questioned whether MUDs are taxing entities, whether they can be created inside city limits or ETJs, how much control cities and counties retain, and whether MUDs are becoming permanent local governments; witnesses acknowledged they levy taxes and debt, can exist within city limits with city consent, and often function as long-term local entities. The committee did not take any formal action during the hearing.

Transcript Highlights:

• There's no way to director of budget and Finance on the director of budget and Finance on the OHA<00:
• <01:04:38.160> with finance with finance with comments<01:04:40.599> next<01:04:40.880>
• <01:08:40.319> is<01:08:40.440> not finance is not finance is not here<01:08:42.400>
• able to Avail yourself of this financing able to Avail yourself of this financing because<01:21:
• that's at the request of finance that's at the request of finance committee<01:48:13.599> uh<

Keywords: 910, house, all

Summary: The committee heard testimony on House Bill 410, the Office of Hawaiian Affairs’ biennium operating budget. OHA asked for a modest increase over its base budget, including $1.2 million to fund 13 new full-time positions for a strategy and implementation team tied to its long-term plan, with emphasis on housing, education, health, and economic resilience. OHA also described a broader effort to work directly with executive branch departments to improve outcomes for Native Hawaiians. Testimony was largely supportive, with several individuals speaking in favor and one testifier expressing strong frustration about Native Hawaiian rights and access to resources. The chair noted there were 38 additional written/supporting testimonies and three in opposition. Members asked about OHA’s funding sources and public land trust revenues; OHA said it is not receiving the full 20 percent share, described a public land trust working group and system issues, and said a related bill would seek funding to begin an inventory. No vote was taken in the portion provided. The committee then considered House Bill 304, which would make the Hawaiian version of a law binding when the law was originally drafted in Hawaiian and later translated into English. The Judiciary supported the bill, saying it reinforces Hawaiian as an official language and looks to the original language for legislative intent. The Attorney General supported the intent but recommended narrowing the bill with a proviso to avoid ambiguities, limiting it to laws originally drafted in Hawaiian that were not later amended, codified, recodified, or reenacted in English. Public testimony was generally supportive, though one speaker raised broader sovereignty concerns. Members questioned how many laws would be affected and whether the proposed amendment would undercut the bill; the Attorney General said the amendment was meant to address uncertainty in interpretation. No final action was reported. Finally, the committee heard House Bill 603, which would direct OHA to administer a Native Hawaiian business marketing program to promote Native Hawaiian-owned businesses through marketing and technical assistance. OHA supported the concept, saying a label or branding program could help consumers identify and support Native Hawaiian-owned businesses, but requested that funding be redirected to a working group to study program design, implementation, enforcement, and long-term viability. The chair noted four supportive testimonies had been received, and a member asked OHA to confirm that its programs serve all Hawaiians, not only those eligible for homelands; OHA said it serves all Hawaiians in the state. The transcript ends before any vote or further action on HB 603.

Transcript Highlights:

• Department of Finance, raise your hands. The Pirate of Finance. They're very shy. Don't act so shy.
• We will go to the Department of Finance. Thank you.
• Colby White, Department of Finance again.
• Colby White, Department of Finance.
• to access financing.

Summary: The committee opened with the State Controller’s Office May Revision requests, including funding for Fiscal book-of-record stabilization, a Broadcom IDMS licensing adjustment, the California State Payroll System, ACFR reporting automation, and $3 million for unclaimed property outreach. Testimony emphasized progress on Fiscal becoming the state’s accounting book of record in July, faster ACFR publication, and the move to electronic unclaimed property claims. Members asked about the size of the unclaimed property fund and how quickly money is transferred to the General Fund; the Controller’s office said about $15 billion is held, with most excess transferred regularly, and the LAO noted the fund is the General Fund’s fourth-largest revenue source. No concerns were raised by Finance or the LAO, and the item was closed after no public comment. The committee then heard the administration’s proposal to tax prewritten digital software and software-as-a-service, with Finance saying it would modernize sales tax treatment and raise an estimated $450 million General Fund and $560 million local revenue in 2026-27. The LAO supported modernizing the tax but suggested broader digital goods coverage and a business-use exemption; industry and taxpayer groups opposed the proposal, warning of higher costs for consumers and businesses. Members also heard CDTFA’s administrative request tied to the proposal, plus a separate CDTFA budget reduction reflecting lower operational needs; that reduction was presented as a savings item and drew positive reactions. Next, the committee considered federal conformity for “Trump accounts,” which would align California tax treatment with federal rules for tax-deferred children’s accounts and avoid tracking burdens for families. The LAO recommended approval, and the item drew no opposition. The committee also heard a proposal to cut the first-year $800 annual business tax to $400 for LLCs, LPs, and LLPs; Finance argued it would lower startup costs and encourage new business formation, while the LAO said the benefit was not well targeted and could subsidize entities that would form anyway. Members discussed the policy tradeoff, and public commenters split between support for small business relief and concern about revenue loss. The final major revenue item was a permanent business tax credit limitation, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability, while excluding the low-income housing tax credit and personal income tax credits. Finance said it would raise significant revenue from large profitable corporations, and the LAO said it was a reasonable option but noted it would mainly affect the R&D credit and could have future implications for programs like California Competes. Public testimony was sharply divided, with business groups opposing the cap and anti-poverty advocates supporting it as a way to recapture revenue. The committee also heard FTB’s CalFile realignment request, which would return most of the direct-file-related resources to the General Fund while retaining a smaller staff to improve CalFile, and the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which members and advocates supported despite relatively modest annual donations. The hearing continued with GoBiz proposals on civic media funding, CA RISE reappropriation, and a semiconductor facility reversion, with the LAO supporting the latter two and members raising questions about the civic media program’s scope, outreach, and inclusion of broadcast and ethnic media.

Transcript Highlights:

• We appreciate the consideration for an operational financial audit of the county finances.
• Well, as the failure to report finances and account balances to the board.
• and efforts are being made to replace that, and fortunately, there is a new finance director.
• Fortunately, there is a new finance director.
• It's a finance system that we got back in with ARPA funds back in, like, I think we started on the finance

Summary: The Legislative Auditing Committee heard several local-government audit requests and unanimously approved each one. The first item was Baker County, where county commissioners asked for an operational and financial audit because of repeated late audits, concerns about the finance office, and lack of confidence in county financial reporting. The county clerk supported an audit but argued it should be countywide and include all constitutional officers; she also described a dispute over access to the county finance system and pending litigation. After brief questions, the committee adopted a 9-0 motion directing the Auditor General to perform an operational audit of Baker County’s financial operations and records, with scope to be finalized during the audit. The committee then approved an audit request for the Concord Estates Community Development District in Osceola County. Senator Arrington said residents alleged excessive board compensation, large unexplained spending, missing financial reports, and refusal to provide records or hold open meetings. Residents and a board member testified about rising assessments, deteriorating amenities, and lack of transparency. The committee voted 10-0 to direct an operational audit of the CDD. It also approved, by 10-0 votes, operational audits of the town of Melbourne Beach, based on allegations of fiscal and operational improprieties and lawsuits that had cost the town more than $150,000, and the city of Apalachicola, where Senator Simon said longstanding water utility failures, grant issues, and consent-order problems warranted review. The final request was for a financial and operational audit of Cape Coral’s Building Department. Representative G. Lombardo said building-fee revenues appeared to be transferred for non-building purposes, permit processing was inconsistent, and the department relied heavily on a private firm while the building official had prior ties to that firm. Industry representatives testified that building funds were being diverted, service levels were suffering, and private-provider inspections were not always reflected in fee reductions. The committee adopted the motion 10-0. After completing all agenda items, the committee adjourned.

Transcript Highlights:

• I have underlined for you the members that are also on the Finance Authority.
• the Department of Finance and Administration.
• So those dollars come to the Finance Authority annually.
• Finance Authority for September funding.
• I'm Colonel (retired) Donny Quintana with the New Mexico Finance Authority.

Transcript Highlights:

• The Department of Finance. Chrisan Mahhotra, Department of Finance.
• The Department of Finance. Chrisan Mahhotra, Department of Finance.
• Department of Finance. Tamara Weber, Department of Finance.
• Department of Finance. Tamara Weber, Department of Finance.
• Department of Finance: Noelle Falkati, Department of Finance.

Summary: The Assembly Budget Subcommittee on Human Services held a hearing on the Governor’s May Revision, with no votes taken. The first major topic was child care and early education, where the Department of Social Services and Department of Finance outlined proposed changes to absorb federal Child Care and Development Fund and Proposition 64 revenue reductions, shift some funding between child care programs, end funding for prospective pay implementation now that the federal requirement has been rescinded, adjust the alternative payment administration structure, and fund child care infrastructure grants and a Low-Income Investment Fund contract closeout. The Legislative Analyst’s Office said the budget makes progress on the structural deficit but recommended maintaining the administration’s solution level, making reserve deposits, and avoiding new ongoing commitments; it also raised concerns about shifting reductions to the California Alternative Payment Program and about the proposed administrative-rate change. Committee members strongly criticized the proposed loss of child care slots and said they would oppose eliminating those slots, while also expressing support for child care as essential infrastructure. The committee then reviewed California State Preschool Program proposals. Finance and CDE described reductions to the preschool COLA from 2.41% to 2.01%, removal of prospective pay funding, and increases for the QRIS block grant, audit support, and rate reform implementation. Trailer bill language would codify age-based rate categories, inclusion-rate documentation, family fee collection rules, portability, and excused absences. CDE supported the QRIS increase and some attendance and family-fee changes, but warned that aligning three- and four-year-old rates could reduce support for three-year-olds and that the budget does not fully cover enrollment growth. Members also questioned whether the preschool and child care slot reductions should be reallocated rather than terminated, and the administration said the reductions were intended to reflect current utilization and avoid harm to currently enrolled families. The hearing then moved to CalFresh and nutrition programs. CDSS said the May Revision includes a one-time CalFood augmentation, funding to cover federal SNAP administrative cost-share pressures, and additional staffing and technical assistance to implement HR 1 changes, including the able-bodied adults without dependents time limit and new non-citizen eligibility rules. The department estimated HR 1 could cut CalFresh funding by $2.3 billion to $3.7 billion annually and affect about 500,000 people, with roughly 806,000 adults potentially subject to the time limit and about 34,000 non-citizens expected to lose eligibility once fully implemented. Members pressed for stronger harm mitigation, including a $98 million backfill to protect families from losing food benefits, and raised concerns about county workload and the “chilling effect” on immigrant participation. The final portion of the transcript began the IHSS presentation, noting a revised budget of $33.7 billion total funds and $12.8 billion General Fund, with proposed reductions tied to Medi-Cal asset-limit changes and other federal conformity items.

Transcript Highlights:

• Department of Finance. As Cynthia Elmore, Department of Finance, nothing to add. Okay, thank you.
• Department of Finance. As Cynthia Elmore, Department of Finance, nothing to add. Okay, thank you.
• And Department of Finance? Is Cynthia Elmore with the Department of Finance? Nothing. Thank you.
• of Finance.
• Department of Finance. Alison Hewitt, Department of Finance.

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.