Transcript Highlights:

• It's Phase Two state funds.
• It's phase two state funds.
• They don't need any additional funds. It's just considered a change in scope.
• funds that we set aside.
• Funding.

Summary: The Water Sector Commission met with a quorum and opened with a reminder that no funding had yet been appropriated for future project awards, so any discussion of upcoming grants was speculative until the legislature acts. The committee then approved the December 10 minutes and moved through a series of deadline extensions for Phase Two state-funded projects, including Delcambre, Faraday, Meyer Branch, and Waterworks District No. 1 of Pointe Coupee Parish. Members also approved a scope change for St. Tammany Parish Project 845 to relocate an unmarked fiber optic line discovered during construction. The committee spent substantial time on Tallulah’s water rehabilitation project, where Mayor Yubon Lewis explained that the city is trying to isolate and fund the purchase of four permanent media filters, plus related electrical work, from the original approved project scope. Members questioned whether the request was a true scope change or a way to use existing funds while the city continues to rely on temporary filtration and state-led triage. After discussion, the committee approved the request and asked to be kept informed as the state continues seeking additional support for the system. The committee also approved additional funding requests for Kaplan, Ponchatoula, St. Martin Parish, and West Allen Water Works. Ponchatoula’s request included multiple change orders tied to sewer and force main work, including emergency levee repair, equipment changes, and rerouting around unmarked fiber. St. Martin Parish’s increase was tied to land acquisition and added costs for a new well site in a multi-phase consolidation project. West Allen’s increase stemmed from a failed well drilling effort and was supported by cost reductions from the contractor and engineers, which members treated as in-kind match. In contrast, Tensaw Water Association’s very large request to consolidate Newellton drew significant concern over cost growth, scope, and timing; after extensive questioning, the committee deferred that item to the next meeting for further review. The meeting ended with an update that about 42.11% of ARPA funds remain, 16 projects are now considered high risk, and staff will continue ground-truthing project status and pushing ARPA dollars out first before adjournment.

Transcript Highlights:

• I think HAP needs to be funded more in the future, and I think they are reaching out to tribes now.
• I think HAP needs to be funded more in the future, and I think they are reaching out to tribes now.
• I think HAP needs to be funded more in the future, and I think they are reaching out to tribes now.
• You should need less funding, but that assumes that the HAP funding serves all homeless people in a community
• need that critical funding support.

Summary: The Senate Budget and Fiscal Review Subcommittee 4 met to hear an information-only agenda focused on homelessness. The chair and vice chair opened with remarks about affordability, accountability, and the need for flexible but effective state responses. The committee then heard an update from Dr. Ryan Finnegan of UC Berkeley’s Turner Center on homelessness trends, data limitations, and program impacts. He said homelessness remains high, with 2024 point-in-time counts showing about 187,000 people experiencing homelessness statewide, though unsheltered homelessness has declined somewhat as shelter capacity expanded. He emphasized that California’s high housing costs and shortage of affordable housing are the main drivers, while also noting persistent racial disparities, high chronic homelessness, and the importance of coordinated housing, health, and social services. He also warned that cuts or changes to federal programs and state funding streams like HAP could threaten progress. Members questioned Dr. Finnegan about the 9% decline in unsheltered homelessness, the timing and methodology of point-in-time counts, how to interpret trends over time, and the role of policy changes such as Housing First, Proposition 47, and Martin v. Boise. He explained that the 9% figure came from 30 continuums of care that had completed 2025 counts, and that HUD’s eventual statewide number would likely differ because not all regions counted that year. He also discussed how different funding sources are layered in local programs, including HAP, local funds, philanthropic support, federal funds, and CalAIM reimbursements. Several members stressed the need for clearer, more comparable measures of effectiveness and outcomes, including whether programs reduce long-term homelessness and move people toward self-sufficiency. The committee then heard from the California Interagency Council on Homelessness on statewide data systems, especially the Homeless Data Integration System (HDIS). Staff described HDIS as the first state-level integrated homelessness data system, built from local HMIS data and used to track demographics, services, outcomes, and program performance across all 44 continuums of care. They said HDIS has enabled statewide dashboards, system performance measures, and new accountability tools under AB 977 and AB 799. Cal ICH also said HAP Round 4 was highly cost-effective under the State Auditor’s methodology, estimating a cost of about $9,172 per person permanently housed, and that new AB 799 dashboards are intended to provide clearer public reporting on outcomes, fiscal data, and progress toward statewide goals. Members asked about measuring self-sufficiency, identifying the best local partners, detecting fraud, and whether the new dashboards will allow better comparisons among program types and funding uses. No votes were taken, and the one scheduled vote was postponed.

Transcript Highlights:

• I think HAP needs to be funded more in the future.
• You should need less funding, but that assumes that the HAP funding serves all homeless people in a community
• Cities recognize the important need to be held accountable for the funding that they spend addressing
• At the same time, we really want to ensure that funding gets out the door quickly to those who need it
• need that critical funding support.

Transcript Highlights:

• We have an obligation to meet those obligations that says that Prop. 98, we need to fund.
• The state still needs to provide 40% of state revenues to schools, so the overall pot of funding isn't
• We need to make sure that the funding is consistent for these school districts.
• We are very appreciative of the funding that is proposed for special education, but more needs to be
• They use CLSA funds to address their needs, including shared digital books.

Summary: The subcommittee opened with remarks on the state budget and K-12 education, noting the large increase in the Proposition 98 minimum guarantee, the use of deferrals and reserves in the prior budget, and the challenge of balancing education funding against other state priorities. Superintendent Tony Thurmond described California education as improving overall, citing gains in test scores, graduation, and college readiness, but said major gaps remain for low-income students, students of color, agricultural communities, English learners, foster youth, and students with disabilities. He praised recent investments in universal meals, transitional kindergarten, community schools, arts, broadband, and special education, while warning that declining enrollment, chronic absenteeism, and the proposed $5.6 billion Prop. 98 settle-up create uncertainty for districts. He also urged a long-term literacy plan, expanded tutoring, universal kindergarten, and continued protections for students and families affected by immigration enforcement, including ICE-related fear and attendance loss. The committee then heard a detailed presentation on Proposition 98 from the Department of Finance and the Legislative Analyst’s Office. Finance explained that the Governor’s budget projects the minimum guarantee will rise by about $21.7 billion over three years, with a $5.6 billion settle-up obligation in 2025-26 intended to avoid overappropriation if revenues weaken. Finance also described revised reserve deposits and withdrawals, ending with about $4.1 billion in the Public School System Stabilization Account by 2026-27. The LAO said recent revenue collections were stronger than expected in the current year but warned that the outlook for 2026-27 is weaker and that stock-market-driven revenues remain volatile. The LAO supported maintaining reserves and one-time spending buffers, but recommended fully funding the guarantee and using other budget solutions rather than shifting the settle-up into future deficits. Members asked about the settle-up process, certification timeline, the effect of attendance declines tied to immigration enforcement, and wildfire-related impacts, including Pasadena Unified’s $4 million special appropriation. On LCFF and necessary small schools, Finance proposed a 2.41% COLA and about $2.2 billion in additional LCFF funding for districts and charters in 2026-27, plus a $30.7 million ongoing increase to raise the necessary small schools allowance by 20%. The LAO supported funding the COLA but said the small-school increase was not tied to a specific cost study and could be redesigned to better target small districts, noting that only a fraction of very small districts would benefit. Questions focused on how small schools access supplemental and concentration grants and how attendance recovery programs are being implemented. The Department of Education said only 130 LEAs had reported attendance recovery so far, likely because it is a new program with compliance requirements, though interest appears to be growing. FICMAT then reviewed the fiscal health of local districts, reporting an uptick in qualified and negative certifications, though still far below Great Recession levels. It said declining enrollment, rising special education costs, and higher labor and insurance costs are the biggest fiscal pressures, and that some districts are using fiscal stabilization plans and staff reductions ahead of second interim reports. FICMAT also discussed wildfire impacts on Pasadena Unified and Los Angeles Unified, explaining that Pasadena’s $4 million state appropriation was based on an early post-fire assessment and that the district is being monitored with the county office of education. Members raised concerns about Pasadena’s leadership, special education staffing shortages, AB 218 sexual abuse litigation costs, insurance premium increases, and the need for stronger prevention and training measures. FICMAT said SB 848 and related policies address some of those concerns by strengthening standards, training, and reporting requirements.

Transcript Highlights:

• for, so that the state can decide how to use our own funds in other areas where it's needed.
• In exact terms, there are various requirements that need to be met to get the funding.
• Who do you fund? Which is more important? It's very challenging because the need is so high.
• Knowing that there's limited funding, we need to get the funding to the right places and the right communities
• Decisions of, okay, where are we still seeing the need, and where can we put that funding?

Transcript Highlights:

• There to address a lot of needs. This is our education trust fund situation.
• fund.
• Additionally, there is funding for a variety of needs in the Department of Human Resources.
• How can we identify and fund those needs?
• I close again by reiterating the need for caution in both budgets, particularly on the general fund side

Transcript Highlights:

• well fund.
• We decided to fund them out of the abandoned well fund.
• We decided to fund them out of the abandoned well fund.
• There's no general fund money, but they need enabling language to do that.
• Because to get a FERC permit, you need 100% capacity. And you need capacity. You need capacity.

Committee: House Appropriations

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:

• and 14 of which are funded by the General Fund.
• Special or other funds, and 14 of which are funded by the General Fund.
• Many of the positions are also funded through special funds, not General Fund.
• We need a $15 million allocation from GGRF or General Fund to keep this program ready for the next disaster
• So we do need more time, and I support the $45 million that we're requesting out of the General Fund.

Summary: The subcommittee heard a series of Department of Food and Agriculture budget proposals, beginning with ongoing funding and trailer bill language for the Farm to School program and related climate-smart agriculture work. CDFA described the program’s goals of linking California producers with schools, expanding access to local and nutritious food, and supporting underserved farmers through technical assistance and outreach. The LAO recommended rejecting the proposal as presented because of the state’s budget condition and suggested that some activities might instead be supported through Proposition 98. Members questioned whether the program is reaching the schools and communities with the greatest need, how grants are scored, and whether the proposal’s goals are measurable enough to justify ongoing funding. The item was held open. The committee also discussed CDFA’s climate bond expenditure plan, which would allocate remaining Proposition 4 funds to existing programs such as SWEEP, Healthy Soils, urban agriculture, fairground emergency response upgrades, and invasive species work, as well as new or developing programs including year-round certified farmers markets, mobile farmers markets, regional farm equipment sharing, and tribal food sovereignty. CDFA said the funds would be released in stages based on program readiness, with audits and performance metrics tied to each program. The LAO found the plan reasonable and consistent with bond requirements. Members asked about audit responsibility, performance tracking, and whether the bond programs should be front-loaded or spread over a longer period. A third CDFA item addressed the elimination of vacant positions under prior budget reductions. CDFA and the Department of Finance explained that the positions were selected because they had been vacant for long periods or were hard to fill, and that departments identified the positions based on their own operational knowledge. The LAO supported retaining the special-fund positions and suggested the General Fund positions be weighed on their merits. Members raised concerns about the impact on core functions such as audits, investigations, milk marketing, and grape pricing reports, and asked for follow-up on how the department determined which positions could be removed. The committee then heard a CDFA IT proposal to add funding and four positions for information technology operations; the LAO had no concerns, and members discussed cybersecurity, legacy systems, and future risks such as AI and quantum threats. The committee took public comment and then voted to approve items 9 through 13, which included CDFA dog importation certificates, livestock carcass disposal, Gambling Control Commission IT support and tribal grant funding, and an ABC district office relocation. The hearing then moved to the Department of Cannabis Control, which presented a request to strengthen enforcement against the illicit cannabis market by adding a North State field office in Redding and three non-sworn support positions. DCC said the illicit market remains far larger than the legal market, with a large backlog of cases and significant public safety and environmental concerns. Finance supported the targeted expansion, the LAO had no comment, and members asked about regional coverage, officer safety, and whether a larger, more transformational enforcement effort might be warranted in the future.

Transcript Highlights:

• The department estimated a 250-person need, so we only have funding for 100, which means we have 150
• If we needed to refund an individual, if we need to refund some funds for a federal grant to the granters
• So in order for the other funds to be used here, we would need a piece of legislation...
• So in order for the other funds to be used here, we would need a piece of legislation pass, and that
• And so there is funding available. There wasn't any need for the GR.

Committee: House Budget

Transcript Highlights:

• So that's the funding mechanism that provides what we need to build out this system and operate it.
• is funded by the General Fund.
• It's funded by the General Fund, so we really do need a framework addressing that issue.
• Okay, but in terms of the costs, I thought you said that you needed $1.2 million from the General Fund
• And there are also, we need to ensure that there's fair play and that the funds are distributed appropriately

Summary: The Senate Budget Subcommittee on Corrections, Public Safety, Judiciary, Labor, and Transportation heard updates from the Office of Emergency Services (Cal OES) and the Department of Justice. Cal OES Acting Director Tina Curry described the department’s proposed budget, disaster response and recovery work, Los Angeles wildfire recovery, FEMA reimbursement delays, hazard mitigation grant applications, planning for major events like the FIFA World Cup and LA28 Olympics, and the state’s next generation 911 priorities. Senators raised concerns about Operation Stonegarden, small-disaster recovery delays, FEMA reimbursement timing, VOCA funding, and the need for more detailed reporting on federal grants and recovery costs. The committee then focused on Next Generation 911. Cal OES staff said the current regional deployment encountered call-routing and transfer failures, leading the department to pause further rollout and propose a new phased plan centered on a statewide provider, followed by an open procurement for a long-term vendor. They said the plan is intended to improve reliability, simplify architecture, and support Los Angeles-area PSAPs ahead of the Olympics, with a target of full statewide transition by summer 2030. The Legislative Analyst’s Office urged the Legislature to pause major changes until it receives more information, including a clearer explanation of the problems, alternatives considered, costs, cybersecurity and privacy issues, and oversight needs. Members expressed mixed views, with some supporting a joint oversight hearing and requesting quarterly fiscal reports and monthly progress updates. The Department of Justice then presented its overall workload, emphasizing public safety enforcement, fentanyl and human trafficking prosecutions, housing enforcement, civil rights work, and extensive federal litigation against the Trump administration. DOJ said the additional federal accountability work has significantly increased staffing and overtime demands, though it has hired 44 additional employees. The committee also heard DOJ’s firearms workload proposal, including funding for SB 704 implementation, continued firearms IT modernization, and a proposed shift of Bureau of Firearms costs to the General Fund. The LAO recommended using special funds and loans instead of ongoing General Fund support where possible, and asked DOJ to develop a framework by January 2027 for determining which firearms and ammunition workload should be supported by fee revenue. The Department of Finance largely agreed with the need for SB 704 funding but disagreed with the LAO’s proposed loan approach for the firearms account.

Transcript Highlights:

• I'M CURIOUS GENERALLY FIRST ABOUT THE NEED TO INCREASE THE STABILIZATION FUND.
• IF WE NEED BUT WE KEEP THAT FUND A. JUST TO ADDRESS THE NEEDS THAT WE HAVE. >> THANK YOU MR. CHAIR.
• HOW DO WE DEFINE CRITICAL STATE NEED IN THE CONTEXT OF THE BUDGET STABILIZATION FUND?
• FUND THOSE ITEMS THAT WE NEED TO FUND.
• FOR US TO TAP THE FUNDS AND RESOURCES WHEN WE ACTUALLY NEED IT.

Transcript Highlights:

• We need the um that the cabinet needs.
• And that's funding needed to cover the increased cost that we're anticipating.
• </c> way that that we need funding to to keep way that that we need funding to to keep up<00:25:02.000
• Uh this fund gets spend these funds.
• fund.

Summary: The House Budget Review Subcommittee on Transportation met without a quorum at first, then later approved the minutes once quorum was established. The committee heard presentations from Transportation Cabinet officials Mike Hancock, Jeremy Slinker, and Sean McCarnieran on maintenance, vehicle regulation, general administration, highways, and related capital projects. Hancock emphasized that maintenance is the cabinet’s most visible public service, especially for snow and ice removal and routine roadway upkeep, and said rising costs have outpaced funding. He cited a 61% increase in highway construction costs since 2020 and said maintenance spending was $488 million in FY 2024 and $511 million in FY 2025, while the FY 2026 baseline request was $483.3 million. The cabinet’s additional maintenance request would add $23.6 million in FY 2027 and $38.6 million in FY 2028, with expected impacts on litter pickup, mowing, vegetation management, and pothole repair if not funded. The cabinet also outlined five maintenance-related capital projects: additional funding for Ballard County maintenance/salt storage, Hopkins County maintenance/salt storage, Whitley County maintenance/salt structure, and the District 2 office and materials lab, plus reauthorization of the Breckinridge County maintenance and salt facility. Hancock also asked for budget language allowing the cabinet to use unexpected restricted and federal funds more quickly, similar to existing authority for federal earmarks. McCarnieran described the governor’s inclusion of funding for the ASHTOWare system, employee health exams, priority IT projects, and a District 7 office renovation request, noting that some items were not funded because they ranked low among competing projects. He also said the governor’s budget included a $7.5 million annual maintenance pool for the cabinet’s 1,200 facilities and requested additional restricted fund authority for Trimark and the Cumberland Gap Tunnel. Slinker focused on the Department of Vehicle Regulation, saying recent investments in staffing and equipment had reduced wait times and improved customer service in driver licensing offices. He requested $535,600 to keep temporary contract workers in place for the rest of the year, warning that without it regional office operations would have to be reduced. He said the surge in demand was driven by new 15-year-old licensing requirements, vision testing, and Real ID implementation, but believed the volume was beginning to level out. He also outlined FY 2027 and FY 2028 plans totaling $20.38 million and $19.85 million, including six new regional offices and a shift away from temporary workers toward state positions. Additional requests included $106,000 for debt service on the new driver’s license modernization system and operating costs of $5 million in FY 2027 and $2.5 million in FY 2028 to support the transition from the old system. Members asked about the cabinet’s funding sources, and officials said the road fund is the primary source, supported by motor fuels tax, usage tax, driver-related receipts, and some restricted funds; they stressed that the requests were not for additional general fund dollars. Questions also covered employee health exam reimbursements, the annual Trimark/Cumberland Gap contract, and the District 7 renovation request. No votes were taken on the budget items during the meeting, beyond approval of the minutes.

Transcript Highlights:

• Expanding that would be needed, particularly if federal funding is reduced.
• how we need to leverage funds better.
• What does that GROW funding actually fund, and can we work to make it actually meet the needs of students
• We need to complete all projects funded by the Capital Projects Fund by the end of 2026.
• together, I think we do need some dedicated funding for digital literacy and digital opportunity.

Committee: House Economic & Rural Development & Policy Committee

Transcript Highlights:

• We need lawmakers and Governor Healey to pass the DRIVE Act to fund SSS and the other TRIO programs that
• We need lawmakers and Governor Healey to pass the DRIVE Act to fund SSS and the other TRIO programs that
• We need to use the fair share funds to support the public colleges in this moment.
• So we need the funding for language access from the moment our students arrive in the admissions office
• We need targeted funding to complete the innovation cycle.

Committee: Joint Joint Committee on Economic Development and Emerging Technologies

Summary: The committee on Economic Development held a hearing on the DRIVE Act, a proposal to invest $400 million in Massachusetts research and innovation without new taxes. Governor Healey and administration officials said the bill would direct $200 million to public higher education research and regional partnerships and $200 million to a research funding pool for hospitals, universities, and other institutions, with the goal of retaining talent, leveraging private and philanthropic dollars, and offsetting major federal R&D cuts. They argued that research is a core economic engine for the state, supporting jobs across labs, construction, services, and surrounding businesses, and said the bill would help protect the Commonwealth’s tax base and competitiveness during a period of federal uncertainty and cuts to SNAP, Medicaid, and other programs. Committee members raised concerns about whether Fair Share surtax dollars should instead be used for K-12 and other community needs, whether the proposal is enough given the scale of lost federal grants, and how the money would be allocated. The governor responded that the funds are one-time surplus dollars, that most surtax revenue already supports education, and that the bill is meant as a bridge to stabilize public higher education and research. She also said the legislation includes a review board and could support a revolving or matched-fund approach in some cases. Several members pressed for more detail on selection criteria, future funding, and whether private companies and large endowments should contribute more. University of Massachusetts leaders and researchers testified that federal grant cancellations and delays are already causing layoffs, furloughs, rescinded admissions, and lost research capacity. UMass officials said the bill would help preserve faculty, postdocs, graduate students, and research programs in medicine, climate science, marine science, Braille instruction, and AI decision-making. They emphasized that the funding should be merit-based and that the state needs to act quickly to prevent talent from leaving Massachusetts. Business, labor, and industry groups, including MassBio, the Massachusetts Taxpayers Foundation, AIM, the AFL-CIO, and Building Trades, supported the bill, saying it would protect jobs, sustain the innovation ecosystem, and reinforce Massachusetts’ national leadership in research and life sciences. No vote was taken in the hearing.

Transcript Highlights:

• And so back in FY23, we knew we didn't need any funds for that particular year.
• for any funding needs in FY26.
• The request in need for general fund is only $6,650,000 compared to what we currently have.
• But in order to actually build capacity efforts, we need supplemental funds.
• Typically, we need it full-funded before we go advertise a project for bidding.

Committee: House Ways & Means

Transcript Highlights:

• One piece of it, the $15 million, is flexible funding for potential changes in capacity that are needed
• I am testifying pro for the capital budget, as this provides the needed funding for the continued preservation
• Fund.
• needs.
• The bad news is we still need $40 million to fund the rest of the projects down that list.

Bills: HB2295

Committee: House Capital Budget

Keywords: Washington capital budget, supplemental capital budget, capital appropriations, state building construction account, taxable building construction account, climate commitment account, natural climate solutions, housing trust fund, affordable housing, supportive housing, homelessness, manufactured home communities, mobile home parks, school construction, school modernization, school seismic safety, healthy schools, school electrification, SCAP, behavioral health facilities

Transcript Highlights:

• We will also discuss Title IX, basic needs funding, as we have seen students have needs that go beyond
• The proposed budget pushes deferrals from 2025-26 to future years, but those funds are needed to support
• Go on to our final issue: basic needs funding. So no action on this item.
• Go on to our final issue: basic needs funding.
• So there's a breakdown on the basic needs, rapid rehousing, and mental health funds.

Summary: The Assembly Budget Subcommittee on Education Finance, chaired by Assemblymember Alvarez, held a hearing focused on University of California budget issues. The committee reviewed UC core operations funding, enrollment trends, federal funding threats, Title IX implementation, and basic needs support. Major themes included the end of the Governor’s multi-year UC compact, the state’s fiscal outlook, UC’s enrollment growth, and the potential impacts of federal policy changes on research, health care, and student aid. On core funding, the Department of Finance described the Governor’s proposal to continue compact-related support, defer some payments, and authorize a cash-flow loan. The LAO recommended a smaller or no base increase, earmarking some funds for capital renewal, retiring deferrals when possible, avoiding new compact commitments, and funding UC annually rather than through compacts. UC argued that the compact has supported enrollment growth, student services, and operating costs, but said campuses face rising expenses, structural deficits, and limited reserves. Members questioned the effects of deferrals on students and discussed the need to prioritize less harmful reductions if cuts become necessary. The enrollment panel focused on UC’s growth in California resident enrollment and the nonresident replacement plan at Berkeley, UCLA, and UC San Diego. The LAO recommended maintaining the current enrollment target, funding enrollment separately from base increases, pausing the nonresident replacement plan, and holding enrollment flat in 2027-28. UC said it has already met compact enrollment goals, grown California undergraduate enrollment by about 18,800 students, and that further growth depends on ongoing state support. The committee also discussed the cost of enrollment growth, possible differential nonresident tuition, and a reporting request for UC to analyze the nonresident replacement approach; the motion to adopt supplemental reporting language passed. The hearing also covered federal funding risks, with the LAO and UC warning that federal changes could affect research grants, medical center reimbursement, and student financial aid. UC said research cancellations and suspensions are disrupting labs and graduate student support, while federal health policy changes could increase uncompensated care at UC hospitals. In the Title IX update, UC described its systemwide civil rights structure, annual student training, and campus support offices, and members praised the work while asking about ongoing concerns and intersegmental collaboration. The final basic-needs item began with Finance stating the Governor’s budget does not change ongoing support, but the transcript cuts off before further discussion or action.

Transcript Highlights:

• The need for additional interpreter service is critical, and this funding on a two-year basis will help
• This is because continuously appropriated funds eliminate the need for the administration to come to
• Law Fund.
• So seeing no new funding for that, in an issue that we see as an area that needs attention, is sending
• We really appreciate the $25 VOCA funding, but we know that we need $100.

Transcript Highlights:

• They need movement, they need heavy joint exercise, they need outdoor activities, they need these things
• I'm curious, for each of the schools, how much additional funding would you need to make up the difference
• needs.
• So when we have things that we need to purchase for students that we can't use our regular funds for,
• Senator, if we're being funded to do projects that we need to move through design before we move through

Transcript Highlights:

• have the funds when the project needs done again.
• But in terms of the overall magnitude of how much funding would be needed for maintenance over the long
• We need a more sustainable approach to funding to make sure that as this problem goes forward Approach
• We need funding both for wildfire fuel reduction in the forest context and also for home hardening for
• We need funding both for wildfire fuel reduction in the forest context and also for home hardening for