Transcript Highlights:

• One that we need more funding for.
• I think we need some funding to help fix that system, to help with the reporting, to help the entities
• These funds and making sure that this is the need. This is exactly what it goes for.
• But Wayne, to go back to the revenue forecast, the general fund, and the audits that we need to get into
• This project is in construction and needs additional funds to complete.

Transcript Highlights:

• And based on the condition of our fund currently, we are projecting that we might need to do this $20
• What kind of programs exist under this funding? And if they wish to continue, they need to reapply.
• needs, while keeping the fund solvent.
• We're here today to discuss the urgent need to fund the California Nurse Midwifery Education Fund as
• It's just that we need more funding. It's not enough funding.

Summary: The hearing began with a stakeholder presentation from Let California Kids Hear urging coverage of pediatric hearing aids for children in the large group market. Advocates described the issue as a long-running developmental emergency, argued that existing state efforts have been inefficient, and said the new proposal would cover about 70% to 80% of affected children without new spending by redirecting existing dollars. Public commenters, including parents, audiologists, and children’s advocates, strongly supported the proposal and emphasized the need for timely access to sound. The chair thanked the group and noted hope for a future fix, including continued work on the exchange market. The Department of Finance then gave a broad budget warning about the state’s more than $20 billion structural deficit and said new investments must be weighed against out-year shortfalls. HCAI followed with an overview of its programs, including CalRx insulin and naloxone, reproductive health grants, the Office of Health Care Affordability, seismic hospital compliance, workforce programs, and the Data Exchange Framework. Members asked about geographic targeting of workforce funds, behavioral health pipeline programs, the status of the 21st Century Nursing Initiative, and future CalRx products such as EpiPens and GLP-1s. HCAI also described its enforcement approach for health care spending targets, saying the board would not change the targets in response to H.R. 1, and outlined the diaper access initiative, which will distribute diapers through hospitals in higher-need areas. Several HCAI budget items were discussed and held open, including additional expenditure authority, the transfer of the Data Exchange Framework and Office of the Patient Advocate, long-term care payment transparency staffing, and reporting on health care worker waiting periods. The department also presented its Behavioral Health Services Act workforce initiative and a proposed $100 million General Fund offset, which both the LAO and the chair questioned as unclear and potentially one-time in nature. HCAI said the final workforce plan would be adjusted after stakeholder consultation if the offset proceeds. The department also described the Rural Health Transformation Program, saying California received $233.6 million in federal funds, had to revise its proposal to satisfy CMS, and must obligate the money by October 30; the program will fund rural care models, workforce development, and technology, with grants rolled out on a phased basis. The Department of Managed Health Care then presented its budget and three legislative implementation requests: SB 41 on PBM reform, SB 306 on prior authorization transparency, and AB 1041 on provider credentialing timelines. Finally, the administration outlined a menopause care proposal requiring coverage and education for menopause-related services, provider training, and an outreach campaign, with DMHC requesting staffing and funding to implement and enforce the new requirements. Throughout the hearing, most items were held open for later action, and no final votes were taken in the portion provided.

Transcript Highlights:

• need, and how much is currently being... ...what this model generates for you, a.k.a. funding need,
• We back out tuition revenue, and we arrive at what we call in the model the state funding needs.
• And then we compare that state funding need to the current appropriation to arrive at an unmet funding
• Historically, that difference, that unmet funding need, has been used to help drive where additional
• resources may need to go to close that gap and ensure equitable funding and ensure that we're funding

Committee: Senate Appropriations Committee on Higher Education

Summary: The Appropriations Committee for Higher Education met to review Florida’s workforce and Florida College System funding models as part of budget planning. Chair Harrell opened by emphasizing the state’s growing focus on technical education and workforce pathways, and the committee first heard from Tara Goodman of the Department of Education on district workforce education. Goodman explained the programs funded through district workforce dollars, including career certificates, applied technology diplomas, registered apprenticeship, and adult general education, and described the model’s reliance on lagged enrollment, program cost weights, local tuition offsets, and supplemental factors such as disability services, GED testing, and minimum funding for small rural districts. She also noted federal support through Perkins and WIOA and said the model is used to determine unmet need and guide appropriations. In response to questions, she said health care programs are generally among the higher-cost offerings and may be supplemented by pipeline funds. The committee then heard from Kathy Hebda, Chancellor of the Florida College System, on the college system’s funding model. Hebda described the main funding sources, including the program fund, student success incentive funds, pipeline funds, tuition and fees, and performance-based incentives, and explained that the current model was developed by the 28 college presidents under legislative direction. She said the model uses a three-year average FTE, weights workforce enrollment more heavily than non-workforce enrollment, gives significant weight to completions, includes a small-college factor and regional cost differentials, and also provides targeted funding to bring colleges up to a floor based on per-FTE funding. Senators asked about colleges below the target, cost differences among programs, faculty salaries, and health insurance costs; Hebda said the model is meant to provide flexible operating dollars that colleges can use for those expenses, but specific salary and benefit decisions are left to the institutions. Seminole State College President Georgia Lorenz also testified in support of the college funding model, saying it holds institutions accountable for enrollment and completions, can be adjusted to reflect state priorities like workforce, and addresses differences in size and regional costs. No bills were voted on, and the committee adjourned after brief closing remarks thanking Seminole State College and the presenters.

Transcript Highlights:

• The program needs to be a well-known and reliable source of funding.
• With lower funding and higher needs in areas like special education or STEM, why wouldn’t we want to
• funds.
• is funded.
• to be funded.

Transcript Highlights:

• But we will, if there's funding needed, come back and bring that. ...if there's funding needed, we will
• But we know we need to seed fund some of this, and excess sites funds is really drained down.
• It took us multiple funding cycles to be able to get the much-needed money that we needed to be able
• And that's why we need funding for youth in HAP programs today to make sure we're addressing the needs
• We need to stay. investments work, but one-time funding is not enough.

Summary: Assembly Budget Subcommittee 5 on State Administration heard two housing-related trailer bill items tied to the Governor’s reorganization plan. The first item would codify the creation of a new Housing and Homelessness Agency and a Business, Consumer Services and Housing Agency structure; the second would further streamline the state housing finance system by creating a Housing Development and Finance Committee and reserving most private activity bond capacity for affordable housing. Administration officials said the changes are intended to reduce duplication, speed awards to construction, and make housing funding more predictable and efficient. Agency leaders described recent housing investments and implementation steps, including work groups, coordination with Finance, the Controller, and the Treasurer’s Office, and development of new guidelines and staffing. Members raised concerns about limited funding, the need for better program-by-program outcome data, youth homelessness, excess sites, and fraud prevention. The Interagency Council on Homelessness presented new three-year action plan metrics, including goals to increase exits from unsheltered homelessness to 70% and move more people into permanent housing, while also noting current performance data and quarterly public reporting. The Legislative Analyst’s Office said it had no concerns with the first trailer bill, but supported the general concept of the second while recommending changes, including removing or revising the proposed 50% bond-cap floor for the new committee and adding attention to 9% and state tax credits. Public commenters, including local governments, nonprofit developers, housing authorities, and advocacy groups, largely supported the reorganization and streamlining goals, but several urged stronger protections for deeply affordable housing, earlier reallocation of unused bond authority, continued access to 9% credits, and more funding for housing programs. No votes were taken in the portion provided; the chair closed item one and moved to item two after member and public testimony.

Transcript Highlights:

• However, ongoing funding is needed to support annual staff training.
• However, ongoing funding is needed to support annual staff training.
• So federal funding is woefully inadequate, but there is a very large need.
• We agree that we need more funding in there.
• We agree that we need more funding in there.

Summary: The Senate Budget Subcommittee on Education heard the Governor’s proposals on dual enrollment, reading difficulty screeners, special education, school facilities, and Commission on Teacher Credentialing programs. For dual enrollment, the Department of Finance described a $100 million one-time Proposition 98 General Fund proposal to expand the Dual Enrollment Opportunities Grant Program, add flexibility for regional occupational centers, support justice-involved youth, prioritize higher-need LEAs, and allow funds for teacher professional development, along with a reduction in required instructional minutes for some dual enrollment students. The LAO recommended rejecting the new funding, saying it did not address a clear implementation barrier, while CDE supported the proposal and suggested reserving $10 million for technical assistance. Members and public commenters largely supported the expansion, with some urging additional technical assistance and broader access, including adult dual enrollment. The committee then discussed the reading difficulty screener proposal, which includes $40 million one-time Proposition 98 General Fund for implementation costs and statutory changes that would delay formal screening until the 91st day for kindergarten and the 46th day for grades 1-2. Finance said the timing was intended to reduce over-identification and align screening with sufficient exposure to instruction; the LAO recommended rejecting the funding and redirecting it to a discretionary block grant. CDE supported the investment but cautioned about the timing restrictions, and several members and public witnesses argued the proposed deadlines were too rigid and could delay early intervention, while others supported the structured timeline as a way to improve accuracy and reduce misidentification. On special education, Finance presented a proposal to increase the statewide base rate to $99 per ADA through a $509 million ongoing Proposition 98 General Fund augmentation, plus COLA and a negative growth adjustment. The LAO said the proposal should be adopted but estimated it could be achieved with less funding; CDE strongly supported the increase, citing rising enrollment and local cost pressures, and district and SELPA representatives described large local funding gaps and growing expenditures. The committee also reviewed school facilities funding under Proposition 2, with Finance and the Office of Public School Construction describing $1.5 billion in proposed bond spending, existing balances for new construction and modernization, and the use of bond authority for natural disaster recovery, including projects related to recent fires. For the Commission on Teacher Credentialing, the committee heard about the Student Teacher Stipend Program, the Golden State Teacher Grant, state operations funding for misconduct investigations and SB 848 implementation, and a $250 million proposal to extend the Teacher Residency Grant Program; CTC supported the proposals and highlighted new data systems and technical assistance, while public testimony broadly backed the investments and urged continued or additional funding for teacher recruitment, literacy screening support, and special education.

Transcript Highlights:

• I think that was a very clear need. It was well documented. And funding that made sense.
• fund split.
• And for that, we need your support and funding. I urge you to support this bill. Thank you.
• The UW fund split provided only 42% of needed state funds last year.
• Fully funding compensation would provide the resources we need to support our growth and fulfill our

Bills: SB6251 , SB6259 , SB6325 , SB5978 , SB6209 , SB6217 , SB6227 , SB6235

Committee: Senate Higher Education & Workforce Development

Keywords: medical school, medical education, letter grades, grading system, pass/fail, tiered grading, student assessment, curriculum, University of Washington, Washington State University, School of Medicine, physician training, academic standards, coursework evaluation, RCW 28B, SB 6259, Washington, state financial aid, higher education, public college

Transcript Highlights:

• What do they need? Is it more funding? Is it federal funding? Is it state funding? Is it IT?
• In the regional plans, funding regions can submit for whatever their need might be.
• It resulted in more funding for services, but it also results in a general fund need that needs to be
• Around the language, and we needed that funding to sustain rate increases that had already existed.
• The state is meeting the milestones that it needs. It will be funded by the VA to establish that.

Committee: House House Appropriations & Finance

Transcript Highlights:

• And we need to ensure that we bridge the funding gap effectively so that innovative ideas do not fall
• Your statute needs to be reviewed because of this dependency on funds.
• This is an important consideration as we plan for future funding needs.
• So we have appropriated funds to help those veterans that need help and ask for help.
• We need to maintain our commitment to environmental protection in our state funding as we move forward

Bills: SB1 , SB 1

Committee: Senate Finance

Transcript Highlights:

• This is one of your primary funding drivers when we talk about critical needs.
• We used to have the local funds were a little bit more than state funds.
• This is one of your primary funding drivers when we talk about critical needs.
• We used to have the local funds or a little bit more than state funds.
• Students who need more intensive services may qualify for funding beyond the ESC guaranteed allocation

Committee: Senate Appropriations Committee on Pre-K - 12 Education

Summary: The committee held its first meeting and received an overview of the Pre-K-12 education appropriations jurisdiction and base budget. Staff explained that education funding is driven largely by enrollment and per-student formulas, with most money coming from state and local sources. The presentation highlighted the major budget areas: early learning, the Florida Education Finance Program (FEFP), non-FEFP K-12 programs, federal programs, and the State Board of Education. Members asked about instructional materials funding and how scholarship students who return to public schools are counted and funded; staff explained that instructional materials remain in the base and that funding depends on survey timing, with districts ultimately funded through the enrollment count process. The committee then reviewed federal IDEA funding for students with disabilities. Department of Education officials explained how IDEA Part B funds are split between state set-asides and local educational agencies, and noted that Florida ranked fourth nationally in total IDEA Part B funding and received a 95% state determination for meeting IDEA requirements. They also described the bureau’s responsibilities, including monitoring, dispute resolution, instructional support, and the Hope Florida unit for ages 3 to 5. Members asked for more information on student performance outcomes and how the state measures success beyond compliance, and the department agreed to provide follow-up data. The final major topic was the Florida Diagnostic and Learning Resources System (FDLRS), including associate centers, multidisciplinary centers, and specialized centers for deaf/hard of hearing and visually impaired students. Presenters described services such as child find, family support, assessments, professional learning, accessible instructional materials, and technical assistance. Committee members focused on whether families and schools have equal access to services across the state, how IEP disputes and reevaluations are handled, and whether more support is needed for parents, teachers, and rural districts. FDLRS representatives said they do not write IEPs but help connect families to districts, provide training and assessments, and support compliance and data collection; they also emphasized staffing and resource needs, especially for low-incidence disabilities and multilingual family outreach.

Transcript Highlights:

• We really focus on critical needs because we don't have the funding to focus on big new projects.
• to fund some... really critical sewer needs at the Natural History Museum.
• We were able to find funds to do some much-needed lobby renovations in the front of the lobby.
• And then the fund, we as a legislature, replenish the fund based on need rather than the other way around
• And we have a plan and we know how much funding it'll cost, we need to know that, or PSFA needs to know

Committee: House New Mexico Finance Authority Oversight Committee

Transcript Highlights:

• funds... ...reflects that, yes, we could pull it if needed from general funds, federal funds, authority
• also the needed federal funds authority.
• on the state general fund while bringing in needed recoveries to support the state general fund.
• An additional $22 million general funds is needed.
• An additional $22 million in general funds is needed.

Committee: House Health and Welfare

Transcript Highlights:

• Funds will additionally help some essential, urgent upgrades needed at our own Ione Training Center,
• That need funding and what available funding sources there are.
• Things that are priorities and needs, a very limited amount of general funds.
• And so they have immediate needs for funding in this upcoming year that we...
• CAL FIRE will continue to have an increased need for capital outlay funding to address the declining

Transcript Highlights:

• With the ongoing funding shortage at health and human services, we need to ensure we do better for our
• We really need at least $17 an hour for direct care staff, and we need case management funding.
• The necessity for modernizing processes and benefits and eligibility, and the need to properly fund 211
• We need.
• The necessity for modernizing processes... ...benefits and eligibility, and the need to properly fund

Bills: SB1 , SB 1

Committee: Senate Finance

Transcript Highlights:

• To those who return year after year advocating for critical funding to support those in need, we see
• I need the funds to open that second location so that I can help other kids and people, regardless of
• legal services programs and increase this funding to meet the growing needs.
• We urge you to increase funding to ensure every family has the support they need. Thank you.
• So we will need to take another look at our federal funding and blended funding in California.

Transcript Highlights:

• Transporting foster youth or youth in state custody needs to be its own funding stream as a separate
• Transporting foster youth or youth in state custody needs to be its own funding stream as a separate
• Transporting foster youth or youth in state custody needs to be its own funding stream as a separate
• for funding through the... ...taken into consideration in terms of identifying the need for funding
• but you are correct: for future years, additional funds would need to be inputted into the fund if this

Bills: SB234 , SB210 , SB243 , SB244 , SM16 , HB8

Committee: Senate House Education

Summary: The Senate Education Committee began by announcing that SB 210 would be rolled over to Friday and would not be heard. The committee then returned to SB 234, which would provide foster child school transportation funding statewide rather than only for Albuquerque Public Schools. Members adopted an amendment striking the APS-only language and making the bill statewide after testimony from the sponsor, PED, and others that foster youth transportation is a growing issue and should have its own funding stream. The committee discussed how the money might be distributed and whether the $1.2 million appropriation would be sufficient, then voted do pass on SB 234 as amended. The committee next heard HB 8, which creates a Higher Education Major Projects Fund for large capital projects that are difficult to fund through existing capital outlay processes. Testimony from the sponsor, LFC, HED, and university representatives explained that the bill would support projects such as the UNM School of Medicine, an NMSU multidisciplinary building, student housing, student life projects, and certain Division I athletic facilities, while requiring design readiness, institutional matches, and legislative oversight. Several senators raised concerns about the clarity of the prioritization process, the Division I-only athletics language, the recurring nature of future funding, and the relationship to other capital funding streams, but the committee ultimately voted do pass on HB 8. The committee then considered SB 243 and SB 244, nearly identical bills for UNM and NMSU that would each appropriate $5 million for student health, student support, nutrition, travel, scholarships, and other athletic department needs. Athletic directors testified that conference realignment, higher travel costs, nutrition demands, and new revenue-sharing/NIL obligations have increased expenses, and sponsors said the bills were intended as one-time appropriations. Some senators questioned whether the requests should be recurring or funded through university revenue rather than the state, but both bills received do pass recommendations. Finally, the committee heard SM 16, as amended, which asks HED to convene a task force to study parenting students in higher education and recommend ways to collect data and improve support. Supporters said better data is needed to understand barriers such as child care and transportation, and the memorial passed with a do pass recommendation. The committee then adjourned until Friday morning.

Transcript Highlights:

• Changing it into a loan fund, a low-interest loan fund.
• projects that need some... ...ability to help fund, you know, additional projects that need some grant
• funding.
• funding, it'd be really hard to fund it at a local level.
• , or maybe it is needed.

Bills: SB2015

Committee: Senate Appropriations - Human Resources Division

Summary: The committee first discussed a wastewater infrastructure bill, centered on whether state support should be provided as a grant or through the existing Clean Water State Revolving Fund as a low-interest loan program. Department of Environmental Quality official David Brushwine explained that the SRF already finances wastewater projects, can leverage federal funds with state bond proceeds, and could accommodate the Washburn, Lincoln, and Peasant projects if they are ready to proceed. Members noted that losing federal grant support would make projects harder for local residents to afford because costs would be recovered through utility rates or special assessments, but the projects would still be eligible for loans. Senator Magrum indicated he would likely concur with the budget after this discussion, and the bill was set aside for later consideration. The committee then turned to a proposed amendment for a four-plex housing project for people with disabilities or other special needs. Senator Mathern described Sections 7 and 8 as creating a design consultation appropriation and a revolving loan fund modeled on existing hospital and nursing home loan programs, while Section 9 would transfer $3.3 million from the state infrastructure fund. Members debated ownership, rent subsidies, repayment terms, and whether the state should finance the project directly or leave it to a private developer with Department of Human Services oversight. Concerns were raised that the state should not own the housing and that the proposal needed more work to be workable, but the committee ultimately reached consensus to adopt Sections 7 and 8 and leave out Section 9 for further conference committee discussion. The committee also reviewed provider inflation and long-term care rate issues, with members discussing whether to support a 2% and 1.5% inflation adjustment and how to handle the $5-per-day basic care rate. Staff explained that the $5 payment was already in the base budget, but members debated whether it should remain ongoing or be treated as one-time funding and paired with a study of rate rebasing. The committee agreed to have draft language prepared to remove the $5 from the base budget and add study language, then moved the bill forward for drafting.

Transcript Highlights:

• fund.
• They put forward the need for funding to meet the monitoring...
• On being able to have the funding and support that they need for prevention services, frontline services
• While the funding may not be substantial, we need to figure out how to include these programs.
• passage, we weren't able to get the funding we need.

Transcript Highlights:

• We need our local assistance funding through our state arts agency increased.
• is a hugely important need for us to be able to fund and clearly has a lot of demand.
• They're awaiting funding. They just need that to begin construction.
• We totally 100% agree with you, Assembly Member, about the need to invest more funding in HAP.
• It has zero money funding left as of today. So we really do need that support.

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:

• sources that may be needed are in place before they come to you all asking for funding.
• that may be needed are in place before they come to you all asking for funding.
• for, or that I guess there might be a broad need for projects that were fully funded and now aren't.
• And we all fund this portion, you fund that, so it's fully funded.
• And we all fund this portion, you fund that, so it's fully funded.

Committee: House House Appropriations & Finance