Transcript Highlights:

• For our silo, I believe the reductions are our highlights. So let's start with the reductions.
• We spend a lot of time in our meetings asking agencies, So let's start with the reductions.
• We instructed agencies to provide us reductions totaling 3% of their recurring funds.
• For some, we had to get creative to find reductions for them.
• Many of the reductions offered by the agencies have been included in this recommendation.

Summary: The State Administration Budget Subcommittee met for budget day, heard agency follow-up questions, and then presented its recommended budget for fiscal year 2025-2026. Chair Lopez opened with remarks about reducing spending, emphasizing vacancy reductions and recurring savings across agencies. The recommendation eliminated 452.5 vacant positions and produced recurring savings of $57.2 million overall, while still funding selected priorities. Notable funded items included $500,000 for a new DBPR website for condominium complaints and document filing, $481.3 million for the MICEF Florida Home Program in DFS, funding for Florida PALM implementation, $330,000 for a Tampa office in the Office of Insurance Regulation, $835,000 for warehouse space for confiscated gambling machines, $821,000 for the Lottery gaming system contract, and major DMS capital and facilities funding. Lopez also criticized DMS leadership and said the secretary’s salary would be held in reserve pending answers on fleet management, remote workers, SUNCOM billing, and other issues. The committee then questioned DBPR Secretary Griffin about condominium records, structural integrity reserve studies, and milestone-inspection compliance. Members focused on how the division tracks condominiums, whether it can identify buildings with three habitable stories, and whether the current filing system can be improved to better capture building height and story count. Griffin said the division relies heavily on self-reporting and complaint-driven checks, but has updated forms to capture whether a condominium has buildings three stories or higher and has received additional submissions. Members also asked about staffing and the Miami-area office; Griffin said DBPR now has two Fort Lauderdale offices and a Doral office, with about 82% of new positions filled. Secretary Davis of the Florida Lottery also testified, defending travel to Paris and other conferences as part of industry engagement, technology research, and best-practice sharing. He said the travel was reimbursed through lottery-related organizations, described the Lottery as an enterprise fund that receives no general tax revenue, and said the agency has remained a top revenue generator nationally. Members questioned Orlando travel reimbursements and dues to the Multi-State Lottery Association, and asked for more information on how increased revenue translates into more Bright Futures scholarships. Davis said he would provide additional details. The subcommittee then unanimously passed two conforming bills. PCB SAB 25-01 removed statutory references to the legacy FLAIR accounting system in preparation for Florida PALM and was reported favorably. PCB SAB 25-02 addressed Capitol Center space after the planned House lease cancellation, declaring the governor, cabinet, and legislature permanent tenants, protecting existing space and parking allocations, giving the legislature first right of refusal on vacant space, and giving legislative leaders control over utilities in their space; it also passed unanimously. The meeting adjourned after the bills were reported favorably.

Transcript Highlights:

• The window that we've been in for the fund balance reduction has been that 1% reduction on employer tax
• We're not maximum 1.5% reduction.
• And do employers see a reduction in their fund balance reduction as a result?
• </c> of that 1 point 1.0 reduction right now. of that 1 point 1.0 reduction right now.
• </c> getting the benefit of a 1% reduction. getting the benefit of a 1% reduction.

Keywords: 1189, house, all

Transcript Highlights:

• </c><01:18:15.240><c> uh</c> or other incentives or tax reductions uh or other incentives or tax reductions
• Of reduction in their aid award.
• The reductions do vary. The dollar reductions do vary by student.
• <c> would</c><01:49:40.280><c> differ</c> reductions would differ reductions would differ um<01:49:42.240
• </c><01:54:00.880><c> in</c> on top of the significant reductions in on top of the significant reductions

Keywords: 1187, senate, all

Transcript Highlights:

• budgets and one account that is used in the transportation budget, which is the carbon emissions reduction
• But also has a carbon emissions reduction account.
• Beginning in fiscal year 2028, the distribution is 50% to the Carbon Emissions Reduction Account and
• You can see on net, it’s a $109 million to $114 million reduction from the current law levels.
• The 35 percent reduction since 2020, with a specific goal from the City of New York to maintain a low

Summary: The committee first held an executive session on several transportation measures heard earlier in the session, including bills on rounding cash transactions to eliminate pennies, vehicle title transfers to insurers, a memorial bridge naming, BAT lane access for private employer transportation services, oil tanker escort requirements, Traffic Safety Commission authority, fifth-wheel trailer length, electric vehicle sales and funding, and vehicle loads on public highways. Most of the measures were advanced with due pass recommendations to the Rules Committee, and the committee adopted amendments on the penny-rounding bill, the EV funding bill, and the vehicle-loads bill. Members noted some opposition or reservations on a few items, including the penny-rounding proposal and the vehicle-loads amendment, but the motions carried. The committee then returned to public hearing on several bills. Substitute House Bill 2323 would create a blue envelope program for neurodiverse drivers to help communicate with law enforcement during traffic stops; the Department of Licensing and State Patrol fiscal notes were described, and the bill drew strong support in signed-in testimony. Engrossed Substitute House Bill 2588 would expand county ferry district authority to include vehicle ferries and require voter approval for new taxes after the effective date; testimony was mixed, with Whatcom County officials and ferry users supporting the bill as a funding tool, while one opponent criticized the tax and timing provisions. The committee also heard public testimony on Engrossed Substitute House Bill 2172, which would change the route jurisdiction transfer and abandonment process for state highways by requiring agreements or legislative review for longer abandonments or bridge transfers; cities, counties, the Transportation Commission, and the TIB supported the bill as a more transparent process. Additional public hearings covered Substitute House Bill 2203, creating reckless interference with emergency operations for drivers who bypass emergency road closures; a defense-lawyer witness opposed the mandatory license suspension, while the sponsor described the bill as a response to flood and fire rescues. Substitute House Bill 2410 would create a Commercial Truck Safety and Education Council and raise the commercial vehicle safety enforcement fee from $16 to $32 per vehicle; the trucking industry and business groups supported it as a safety and training investment. The committee also heard a staff briefing and sponsor testimony on Second Substitute House Bill 1923, the Mosquito Fleet Act, which would expand passenger-only ferry district options and was presented as a local tool to improve ferry access and relieve Washington State Ferries congestion.

Transcript Highlights:

• While we were told that this does not change the total amount, this reduction cooks our schools.
• This body never recommended a rate reduction.
• This body never recommended a rate reduction.
• If we do not decrease our Medicaid error rate, that is a billion-dollar reduction.
• billion-dollar reduction all in when you include both GR and federal funds.

Keywords: 959, house, all

Summary: The House convened with prayer, the Pledge of Allegiance, approval of the prior day’s journal, and numerous introductions of guests and school groups. Members also suspended House Rule 98 to allow baseball apparel in celebration of opening day. The chamber then moved into budget committee reports and third-reading debate on several appropriations bills. The most extensive debate centered on House Committee Substitute for House Bill 2002, the operating budget for elementary and secondary education. Supporters emphasized record-level funding for K-12 education, transportation, the foundation formula, early childhood programs, and child care subsidies, while opponents argued the bill still underfunds the foundation formula and child care and shifts costs to local districts. The bill passed 85-70. House Bill 2003, covering higher education and workforce development, drew similar debate over a new full-time-equivalent funding model; supporters called it more equitable and performance-based, while opponents warned it would sharply cut funding for some universities and community colleges and harm local economies. It passed 83-66. The House also passed House Bill 2004 on revenue, the lottery, and MoDOT, despite objections about constitutional issues and a cut to public transit, by a vote of 91-50. House Bill 2005, covering the Office of Administration and employee benefits, passed 132-17 after discussion of state employee compensation and deferred compensation. House Bill 2006, covering agriculture, natural resources, and conservation, passed 133-17, with members highlighting restored funding for agriculture business development and food insecurity programs and raising concerns about reduced natural resources funding. House Bill 2007, covering economic development, commerce and insurance, and labor and industrial relations, was then taken up with discussion of tourism, housing trust fund dollars, Juneteenth funding, and economic development priorities; the transcript ends during closing remarks on that bill, before a final vote is shown.

Transcript Highlights:

• The plan will achieve a nearly 60% reduction compared to 2020 levels.
• Forecasts are scrutinized, and reductions are made where costs are unsupported.
• Forecasts are scrutinized, and reductions are made where costs are unsupported.
• So there's a real opportunity for a virtuous cycle here with regards to risk reduction.
• So it is also essential that we prioritize meaningful, immediate harm-reduction measures.

Summary: The Senate Committee on Energy, Utilities and Communications held an oversight hearing focused on electric rates, utility regulation, affordability, reliability, and wildfire-related costs. The chair framed the discussion around the challenge of transitioning to a cleaner grid while keeping bills affordable and the system reliable, and noted the hearing also served as the annual update from the CPUC and Public Advocates Office. Professor Severin Borenstein gave a primer on utility regulation, explaining the split between deregulated generation and regulated transmission/distribution, the basics of cost-of-service regulation, and the role of return on equity. He argued that high allowed returns can encourage capital-intensive spending and that many public policy costs now embedded in rates would be better funded through the state budget, while warning that price caps or performance-based regulation are not silver bullets. CPUC President-designate Alice Reynolds described the commission’s role as economic regulator of investor-owned utilities and said affordability is being addressed through rate case scrutiny, reasonableness reviews, and legislative direction. She said wildfire mitigation and insurance costs have been major drivers of rate increases, but some wildfire-related costs are time-limited and will roll off rates over time. She also highlighted progress on clean energy procurement, battery storage growth, and integrated resource planning to meet climate goals while maintaining reliability. Reynolds said the CPUC is reviewing utility spending, disallowing imprudent costs where appropriate, and litigating at FERC to challenge transmission costs. Members pressed both witnesses on several issues, including whether rates are being inflated by legislative mandates and balancing accounts, whether utility returns are too high, and whether the state should shift more public-policy costs off electric bills and into the General Fund. Senators also raised concerns about load growth from data centers and ports, gas-system stranded assets as electrification advances, and whether the CPUC is over-regulating or discouraging innovation. Reynolds said the CPUC is working with the Energy Commission, CAISO, and the Air Resources Board on a holistic planning process, and pointed to tools such as interconnection reforms and demand flexibility. No votes were taken; the hearing was informational, with several follow-up requests for reports and data.

Transcript Highlights:

• modernization of state agency systems, including the improvement of online access to services and reduction
• modernization of state agency systems, including the improvement of online access to services and reduction
• modernization of state agency systems, including the improvement of online access to services and reduction
• modernization of state agency systems, including the improvement of online access to services and reduction
• HB5340 relates to the sustainability of pesticide harm reduction in institutions of higher education

Keywords: 1184, house, all

Transcript Highlights:

• Are there concerns that the reduction in funding of the waste districts might lead to further problems
• So just so you know, I mean, for my district, they're not thrilled with the reduction in the 10%.
• You know, for my district, they're not thrilled with the reduction in the 10%.
• But the $1.3 million reduction would translate into a $300,000 reduction in the Kansas City district's
• We do a lot with that money, and a reduction of $300,000 is a significant amount.

Keywords: 959, house, all

Summary: The committee heard testimony on Senate Bill 1586, which would address abandoned, ownerless landfills in Missouri. Senator Ben Brown said the bill was prompted by a constituent’s discovery of contamination near an old landfill and argued that the state needs clearer authority and dedicated funding to investigate and remediate 29 identified sites. He explained that the bill had been revised several times and now would keep solid waste districts intact while diverting 10% of tipping fees for landfill assessment, testing, remediation, and management, and it would also require written disclosure of abandoned landfills in property sales. He said an interim committee would continue work on the issue next year. Supporters included University of Missouri engineering dean Marisa Crusoe, who said the bill would create a clearer regulatory framework and a steady funding stream, and that environmental studies are necessary to determine the scope and cost of cleanup and could eventually return land to productive use. Opponents from solid waste districts, including Chris Busson and Diana Bryant, argued that the bill would reduce district revenues by about $1.3 million and harm existing recycling and household hazardous waste programs. They said the districts already operate under DNR oversight, that the abandoned landfill issue has long been known, and that cutting district funding would undermine local environmental services. A county commissioner, Lacey Miller, also said the districts support small-town recycling and grants that would be difficult to replace if the system were consolidated. Members questioned the size of the funding reduction, whether the abandoned landfill list had been fully vetted, and whether the bill should split the 10% between DNR and the districts. Brown said he was open to further discussion but emphasized that the bill was intended as a first step to fund environmental studies and begin addressing a long-ignored problem. No vote was taken, and the hearing on Senate Bill 1586 was concluded.

Transcript Highlights:

• and applied uniformly to employment decisions regarding hiring, promotion, and retention during a reduction
• So— A reduction in force.
• Obviously, it's a— And now, in a reduction in force, you're out of the service, you can come back for
• That reduction in force is the key phrase, right, in that statute. So, if that makes sense.
• And again, it was just protection so they had their jobs when they rolled out of service, reduction of

Summary: The committee first heard Senate Bill 1023, which would require optometrists to conduct eye exams according to community standard of care at a recommended one-year interval, while allowing prescriptions to be extended up to two years or shortened based on risk factors. The sponsor described it as a compromise to reduce confusion and align prescription validity with medical judgment. The Arizona Optometric Association supported the bill, saying it codifies best practice and gives clearer standards for patients and practitioners. The committee voted 7-0 to give SB 1023 a do pass recommendation. The committee then heard Senate Bill 1013, a merit-based public hiring bill that would prohibit state and local public employers from using hiring or personnel policies based on race, ethnicity, sex, or national origin, while preserving compliance with anti-discrimination laws. An amendment was offered and adopted to clarify that the bill would not limit voluntary veterans’ preference employment policies. The sponsor and supporters argued the bill ensures public jobs are awarded based on qualifications, experience, and merit, and several witnesses testified in favor, including representatives from Do No Harm. Opponents argued the bill could undermine diversity efforts and existing equity-focused hiring practices, and several members raised concerns about the veterans’ preference language and the definition of merit. After debate, the committee adopted the amendment and then voted 4-3 to give SB 1013, as amended, a do pass recommendation.

Transcript Highlights:

• Well, if you read the statute, the key phrase is a reduction in force.
• So... ...a reduction in force.
• Obviously, it’s a... ...and now, in a reduction in force, you’re out of the service, you can come back
• That reduction in force is the key phrase, right, in that statute. So, if that makes sense.
• And again, it was just protection so they had their jobs when they rolled out of service, reduction of

Bills: SB1013, SB1023

Keywords: merit-based hiring, public employees, non-discrimination, employment practices, Arizona Revised Statutes, optometrists, eye exams, eyeglass prescriptions, healthcare, vision care, 1182, all

Transcript Highlights:

• On the issue of the NDI, the reduction on the NDI, the reduction on the NDI, I don't know...
• Of the NDI, the reduction on the NDI.
• The governor recommended a $7.6 million reduction to this program.
• The governor did recommend a $295,000 reduction to the GR line of that and a reduction of 2.6 FTE.
• The governor did recommend a 295,000 reduction to the GR line of that and a reduction of 2.6 FTE.

Keywords: 959, house, all

Summary: The committee first heard the Office of State Treasurer’s FY27 budget request. Treasurer Vivek Malik highlighted record investment earnings, growth in the MOBUCK$ linked deposit program, record unclaimed property returns, expansion of the MOScholars program, growth in 529 accounts, and expanded eligibility for the MoABLE disability savings program. Members then focused heavily on two MOScholars NDIs: $750,000 for the Show Me My Retirement Savings Board to launch a state-sponsored retirement plan for workers without employer coverage, and additional spending authority for MOScholars, including funding for staffing and a requested increase tied to program growth. The treasurer also described a new communications coordinator and compliance auditor position, and said the office was seeking more than the governor’s recommended $10 million for MOScholars because demand and applications were rising quickly. No votes were taken; the committee simply received testimony and asked questions. Most of the discussion centered on MOScholars’ structure, eligibility, and impacts. Members questioned how the program is marketed, how income eligibility is verified, whether students are re-certified annually, how the scholarship amount compares with the state aid formula, and how the program affects public schools. Several members raised concerns about private schools receiving public dollars while maintaining admissions policies that may exclude students based on religion, disability, or sexual orientation. Others defended the program as parent-directed school choice and noted that the statute governs the treasurer’s role. The treasurer and staff explained that funds flow from the state to nonprofit educational assistance organizations, which then pay schools chosen by parents, and that the office follows statutory priority buckets if demand exceeds available funding. They also said the program’s vendor contract is being rebid and that the office is monitoring data privacy and compliance. Members also discussed the 529 plan and a proposal to end Missouri’s “parity” status so state taxpayers would not subsidize other states’ 529 plans, with some members arguing Missouri should improve its own plan instead. The treasurer said the office was seeking to maintain strong service and competitiveness in the new RFP. The committee then briefly moved to the Department of Higher Education and Workforce Development, where Commissioner Bennett Boggs introduced himself and began his opening remarks before the transcript ended.

Transcript Highlights:

• So, slide 14, you can see that from the August estimate to the December estimate, there's been a reduction
• We are still in a position where we're not needing to look at reductions in current recurring revenue
• As a state, we've made very significant changes and reductions, particularly in personal income tax.
• So we can see baked into this some... ...reductions, particularly around the Medicaid side.
• The reduction to that was about $75 million in one quarter.

Keywords: 996, all

Transcript Highlights:

• With these reductions, just a reminder that New Mexico has the highest rate of child food insecurity
• That reduction starts on January 1, 2027, so also around the same time.
• This is another reduction for providers, ultimately probably coming out of provider payments.
• Additionally, there's a substantial reduction in federal funding to administer the SNAP program.
• This is a reduction of about $60 a month for anyone at that threshold.

Transcript Highlights:

• The reductions in the budget may hinder Minute's ability to continue some of those strong leadership
• The reductions in the budget may hinder Minute's ability to continue some of those strong leadership
• Reductions in audit and collection activities mean less revenue for the state.
• Reductions in audit and collection activities mean less revenue for the state.
• Reductions in state workers and systems that support tax processing also weaken our ability to prevent

Bills: HF2783

Keywords: state government finance, biennial budget, appropriations, Minnesota Management and Budget, Healthy Aging Subcabinet, Office of Healthy Aging, older adults, aging policy, long-term care, caregivers, public health, Medicaid fraud, medical assistance fraud, attorney general subpoena power, fraud enforcement, business filing fraud, Secretary of State, deceptive mailings, consumer protection, certified public accountant

Transcript Highlights:

• and immediately provide $15 million in the budget year to backfill the general fund proposed for reduction
• To establish a baseline for SB 54's source reduction, CalRecycle conducted an analysis of the amount
• It has very novel components that don't exist in any other EPR bill, including source reduction and an
• This reduction was partially offset by funding from the greenhouse gas reduction fund.
• Reduction fund, so now the CVCI funding totals $231.5 million, which will go through fiscal year 2026

Keywords: 988, house, all

Transcript Highlights:

• The reduction in litigation allowed us to draw—that's called rate need.
• The reduction in litigation allowed us to draw—that's called rate need.
• You mentioned also that litigation, reduction in litigation.
• And I know that Citizens also seeking a that litigation, reduction in litigation.
• So if you have a reduction, a major reduction in litigation, why such a big rate increase?

Summary: The Insurance and Banking Subcommittee received a lengthy presentation from Citizens Property Insurance Corporation CEO Tim Serio, with Insurance Commissioner Michael Yaworski also answering questions. Serio reviewed Citizens’ role as Florida’s insurer of last resort, its statutory funding structure, eligibility rules, depopulation program, reinsurance obligations, and the surcharge/emergency assessment mechanisms that can be used if Citizens runs a deficit. He emphasized that recent legislative reforms, combined with lower litigation and improved market conditions, have helped the private market recover and reduced Citizens’ policy count from a peak of about 1.41 million in 2023 to 936,182 at the end of 2024, with a projected drop to about 771,000 by the end of 2025. He also said the reforms reduced Citizens’ rate need and helped avoid an emergency assessment after the 2024 storms. Members asked about Citizens’ rate increases, why Citizens still seeks higher rates despite lower litigation, how the 20% eligibility threshold works, whether Citizens should be wind-only, and whether the state or federal government could help with deficits. Serio explained that Citizens is still charging below actuarially sound rates in most areas, that rate filings reflect reduced litigation and lower reinsurance exposure, and that assessments on all Florida property policyholders are the reason Citizens tries to build surplus and depopulate. He said the depopulation program is working better than in the past, with less than 2% of takeout policies returning to Citizens, and that the Office of Insurance Regulation has been vetting takeout companies more carefully. A substantial portion of the discussion focused on claims handling after Debby, Helene, and Milton, including flood-versus-wind disputes and Citizens’ use of the Division of Administrative Hearings for some claim disputes. Serio said Citizens had received 76,625 claims from the three storms and had paid nearly $823 million in indemnity and expenses as of January 7, 2025. He said many closed-without-payment claims were either below deductible, withdrawn, duplicate, or flood-only, and that Citizens had asked its internal audit function to independently review the claims data and denials. He also described Citizens’ storm outreach, catastrophe response centers, managed-repair program, and claim review process, and said the corporation remains focused on paying valid claims while minimizing the risk of assessments on the broader Florida market.

Transcript Highlights:

• of funding in order for them to reduce their overall fiscal impact by going through a head count reduction
• These funds would be used to pay for software as well as the reduction in the head count.
• used to pay for software as well<00:02:25.240><c> as</c><00:02:25.600><c> the</c><00:02:26.000><c> reduction
• </c> well as the reduction in the head count. well as the reduction in the head count.

Keywords: 1183, house

Transcript Highlights:

• The governor requested a 3% reduction from this number.
• He requested a 3% reduction from that $716.6 million.
• And then the next one over is the governor's 3% reduction.
• the 3% governor reduction.
• And I know you've got a 3% reduction.

Summary: The Higher Education Funding Review Committee met to continue work on a draft higher education funding formula and related capital building fund changes. Lisa Johnson of the North Dakota University System updated the committee on the board’s developing policy for low-producing academic programs. She said the board is using a five-year rolling window, with thresholds of fewer than 10 undergraduate graduates or fewer than 5 graduate graduates, and that programs flagged in three consecutive review cycles would go to the board for review. Possible outcomes include continuation, continuation with modifications, inactivation, or termination. Members asked about how the policy would account for enrollment, program costs, workforce need, and programs that serve students outside their major. Johnson said the board would likely use an accompanying procedure to consider those factors. She also reported that about 200 programs could potentially be reviewed under current guidance, with 135 inactivated and 112 terminated, and said the process is intended to support quality and stewardship rather than simply cut programs. Jamie Wilkie then reported on the Capital Building Fund. He reviewed the fund’s history, matching requirements, and use for extraordinary repairs, deferred maintenance, and some legislatively authorized projects. He said about $334 million in state and matching dollars has been invested overall, with roughly 78.7% going to deferred maintenance and extraordinary repairs. Committee members pressed for updated information on how much deferred maintenance has actually been reduced, and several members said they wanted clearer reporting on the return on investment from new buildings versus repairs. NDSU representatives said the tier funding has helped significantly reduce deferred maintenance and allowed demolition and renovation work on campus. The committee also discussed the need for updated five-year facility plans and space-utilization information from the institutions. The committee then began a section-by-section review of a draft bill that would replace the current higher education funding formula with an FTE-based model and restructure the capital building fund. The draft would fund UND and NDSU differently from the other nine institutions, use fall enrollment rather than completed credits, add performance funding for completions in in-demand fields, create research incentives for UND and NDSU, and combine capital building fund tiers while changing matching requirements and eligible uses. Members raised concerns about the treatment of professional students, the use of CIP codes, incentives for waivers, and whether the formula should rely on more current data. The committee did not take final action on the draft during this meeting, but it continued detailed discussion and indicated more review would follow.

Transcript Highlights:

• priority or an urgent need, we recommend that if it approves it, that it finds dollar-for-dollar reductions
• We do offer a backfill to a reduction to a backfill to the state court facilities construction fund based
• The savings amount reflects a reduction in total contract costs.
• The total cost for this proposal is offset by reduction of deactivations at other institutions, making
• This will significantly alleviate the service-level reductions caused by lower-level federal funding

Summary: Assembly Budget Subcommittee No. 6 heard the Governor’s May Revision proposals for the judicial branch, the Board of State and Community Corrections, the Department of Justice, and the California Department of Corrections and Rehabilitation. The Legislative Analyst’s Office opened with a warning that the state budget remains structurally imbalanced and urged the Legislature to avoid new ongoing spending unless offset by reductions elsewhere. In the judicial branch discussion, the Judicial Council highlighted language access funding, appellate court security, a backfill for the state court facilities construction fund, and an extension of the lactation room mandate; Finance supported most items but suggested reporting language on interpreter costs and reducing the General Fund backfill. Members raised concerns about judicial vacancies, long-term salary freezes, remote hearings, and the lack of progress on court staffing in some counties. For the Board of State and Community Corrections, the administration proposed $10 million one-time each for the Missing and Murdered Indigenous People grant program and a human trafficking vertical prosecution grant program. The LAO said both should be weighed against other priorities and suggested the Legislature consider whether the Tribal Nations Grant Fund could support MMIP work, while Finance said it preferred General Fund support and wanted more review before any fund swap. Members strongly supported MMIP funding and asked whether ongoing support would be considered. On the human trafficking grant, Finance said BSC was a good fit because of its grant administration experience and prior vertical prosecution work, while legislators asked why the program was not placed with the Office of Emergency Services as originally contemplated in prior legislation. The Department of Justice presented antitrust litigation funding, Medi-Cal Fraud and Elder Abuse staffing, completion of organized retail criminal enterprise cases, and trailer bill language for a continuous appropriation from the Victims of Consumer Fraud Restitution Fund. The LAO supported the antitrust account use but questioned the Unfair Competition Law Fund’s ability to cover the full request without General Fund repayment, and recommended against a continuous appropriation for the restitution fund in favor of a more limited mechanism with legislative oversight. Finance said the fund would remain solvent and defended the continuous appropriation as necessary to pay victims promptly. In the CDCR portion, the largest discussion centered on the Boston Consulting Group efficiency review and sharply reduced savings estimates; LAO said the department had not fully explained the proposed position eliminations or future $100 million savings target, while Finance said the work reflected deeper analysis and ongoing efforts to find savings. Members repeatedly pressed CDCR and Finance on the gap between earlier promised savings and the revised figures. CDCR also outlined population projections showing continued declines in prison and parole populations, while LAO again urged the state to close an additional prison to save ongoing costs. The department then walked through several May Revision items, including workers’ compensation funding, a Corcoran honor housing dorm, incarcerated firefighter pay implementation, an incarcerated menopause program, mental health receiver staffing, mental health resource teams and crisis intervention teams, medical classification staffing changes, and AI note-taking for the electronic health record. LAO generally recommended limiting-term funding and more reporting for many of these proposals, while Finance defended them as necessary ongoing investments or court-ordered obligations. Members questioned the cost of workers’ compensation, the need for more prison closures, the lack of funding for women’s facility violence prevention, and the timing and transparency of the BCG savings process. No votes were taken.

Transcript Highlights:

• But now, if I understand correctly, what you're saying is there is a 9% reduction in 30 continuums of
• care. ...is a 9% reduction in 30 continuums of care in the state.
• Prevention and outreach would shrink, and progress toward our 50% reduction goal could reverse.
• Oakland continues— ...percent reduction goal could reverse.
• Also, the upcoming 50% reduction in HAP funding under Round 7 will likely further reduce services.

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.