Transcript Highlights:

• But there will be things that you don't like in this budget because every budget is that way.
• needed to implement the FY 2027 budget.
• The Human Services Budget Bill contains provisions needed to implement the FY 2027 budget.
• Members, yes, but we are telling ourselves that, so we are not using any of the budget surplus, the budget
• It comes out of our budget.

Summary: The meeting covered a series of fiscal year 2027 budget and budget-related bills, beginning with the general appropriations and tax package. Staff and the chair highlighted a budget built around about $1.4 billion in tax cuts, a one-time 2.5% agency reduction, major funding for state employee health insurance, corrections, flood and wildfire relief, and other supplemental appropriations. The chair repeatedly urged support for the package, emphasizing the size of the tax cut and noting that the committee’s joint vote had only three no votes out of 28 members. Members then reviewed several smaller budget implementation bills affecting racing and gambling, capital outlay, commerce and defense innovation, corrections, environment and water policy, higher education, human services, K-12 education, county finance, tax administration, state data governance, and state office rent rates. Key provisions included extending or modifying funds and fee structures, transferring surplus or unneeded monies, creating or revising oversight boards and pilot programs, increasing K-12 funding by 2% for inflation, adjusting university retention limits, expanding SNAP and housing-related requirements, and changing tax conformity and credits. Several members asked clarifying questions about specific items such as electric vehicle charging funds, mobile home relocation payments, university funding, and the new health insurance oversight board. The chair also explained the tax bill’s major changes, including conformity to federal tax law, a larger dependent tax credit, changes to deductions, repeal of certain tax credits, veteran property tax relief, limits on data center tax incentives, and provisions affecting manufacturing infrastructure and unemployment insurance administration. The committee discussed the Budget Stabilization Fund, debt repayment, and education rollover balances, with the chair arguing for using surpluses to pay down debt. The final item discussed was a behavioral health bill creating a home and community-based services program for adults determined to be seriously mentally ill, with a stated FY 2027 total fund appropriation of $7.8 million contingent on federal approval and matching funds. The meeting ended with a reminder that floor action would begin the next day at 10 a.m.

Transcript Highlights:

• &gt;&gt; Again, this is this isn't a budgeting &gt;&gt; Again, this is this isn't a budgeting issue.<
• Again, this is all within budget. issue. Again, this is all within budget.
• </c> um to have a little bit more oversight um to have a little bit more oversight on<00:24:07.280><c
• Um the agent we have no oversight.
• </c> by an executive counsel for a oversight by an executive counsel for a oversight or<00:46:47.040>

Committee: Senate Executive Departments and Administration

Keywords: 1191, senate, all

Transcript Highlights:

• All right, Public school capital outlay oversight. Oops.
• Uh, Investments and pensions Oversight Committee. Otherwise known as iPod.
• Of the Senate Appointments for Investment Pensions Oversight Committee.
• Um, just giving folks a supplies budget up to a certain amount if they so choose to spend that budget
• We did, we did put money in the budget for him to move.

Committee: House Legislative Council

Transcript Highlights:

• So this slide shows a current operating budget for the system.
• So these are very, a lot of oversight on these funds.
• Because when you look at the local budget, right, local operating budget, I think through there you get
• Like everything else, we have to balance budgets.
• They're responsible for that oversight.

Summary: The Higher Education Budget Subcommittee met to hear an overview of State University System finances from the Board of Governors and detailed budget presentations from Florida State University, the University of Central Florida, and the University of North Florida. The witnesses explained how university budgets are organized into fund categories such as education and general, contracts and grants, auxiliaries, local/designated funds, capital projects, and component units such as direct support organizations. They also described carry forward funds, the statutory reserve and spending-plan requirements, the PICO/HECO capital outlay process, and how universities use investment accounts, audits, and board oversight to manage restricted and unspent funds. The universities emphasized that most operating dollars are restricted to specific uses and that state support helps keep tuition low. Members asked about differences in funding levels among institutions, especially why FSU receives more funding than UCF despite lower enrollment. Officials said preeminence funding, performance funding, and special legislative appropriations explain much of the difference, and the Board of Governors noted that Florida now has four preeminent universities, with UCF nearing that status. Questions also focused on what happens to unspent carry forward money, how it is invested, and whether the Board of Governors or Legislature can require funds to be returned; officials said the money is invested conservatively, subject to board and audit oversight, and can roll forward under a detailed spending plan, though the Legislature can change funding levels. The committee also discussed capital projects, with members asking about delays, inflation, and whether more projects should be phased or funded faster; witnesses said PICO funds remain with the state until needed and are reimbursed as construction proceeds. A substantial portion of the discussion covered athletics, research, student fees, and endowments. The universities said athletics is generally expected to be self-supporting, though limited use of auxiliary or carry forward funds may be allowed for projects benefiting the broader student body. They also described the financial pressures from name, image, and likeness changes and new NCAA-related costs, and said institutions are planning for those changes now. On research, the universities explained sponsored research funding, indirect cost recovery, compliance obligations, and tech transfer, but did not provide specific commercialization revenue figures and said they would follow up. Members also asked about student fee increases, student input, counseling and wellness funding, and how housing costs affect affordability; the universities said student committees and boards review fees, and aid packaging is intended to keep student debt low. Endowments were described as being held in separate foundations/DSOs with independent investment committees and used mainly for scholarships, faculty support, and research.

Transcript Highlights:

• </c> this amendment is about making budget. this amendment is about making budget.
• cut that was imposed by the budget.
• We have an oversight committee.
• </c> performance audit and oversight performance audit and oversight committee.<00:22:02.400><c> I</c
• </c> and I sit on that oversight committee. and I sit on that oversight committee.

Committee: Senate Executive Departments and Administration

Keywords: 1191, senate, all

Transcript Highlights:

• . budget. budget.
• Uh when the budget did not anticipate.
• </c><00:41:35.440><c> of</c> We're talking about a budget of We're talking about a budget of approximately
• c> board</c><01:08:43.679><c> in</c> Again, oversight by the board in Again, oversight by the board in
• responsible for oversight and responsible for oversight and appointment<01:09:03.679><c> of</c><01:09

Keywords: 958, all

Transcript Highlights:

• The State Administration Budget Subcommittee will come to order.
• Sean Perez is our budget analyst. Michelle Mullins is our budget specialist.
• I wish they'd have called it truth in budgeting, because it really is truth in budgeting.
• It'll be on time and on budget.
• That budget is submitted through DMS.

Summary: The State Administration Budget Subcommittee met for an introductory overview of the agencies under its jurisdiction and their current-year budgets. Chair Vicki Lopez welcomed members and staff, and each member briefly introduced themselves and identified areas of interest, with recurring themes including fiscal restraint, insurance regulation, revenue administration, condominium issues, and government efficiency. The chair then outlined the subcommittee’s overall budget, about $3.1 billion, and noted major recent policy areas affecting the budget such as condominium legislation and emergency communications funding. Agency heads then presented high-level summaries of their missions and budgets. The Department of Revenue described property tax oversight, tax administration, and child support enforcement; the Department of Management Services reviewed state purchasing, telecommunications, fleet, state insurance, retirement, and digital services; DBPR highlighted licensing, enforcement, condominiums, and building code work; DFS covered insurance consumer services, risk management, unclaimed property, fire marshal functions, and criminal investigations; the Gaming Control Commission discussed pari-mutuel and tribal gaming oversight and enforcement; OIR explained insurer solvency and rate review; the Lottery emphasized education funding and record sales; OFR described regulation of banking, securities, lending, and money services; DOAH outlined administrative and workers’ compensation adjudication; PSC covered utility rate regulation and consumer complaints; PERC described labor relations and career service appeals; and FCHR summarized discrimination complaint investigations and outreach. Several members asked questions about utility returns, insurance regulation staffing, DMS’s state employee health plan deficit and prescription drug formulary management, agency recommendations for reducing regulatory burden, and state facilities usage. Responses generally emphasized that utility rates and insurer filings are determined through evidentiary and actuarial processes, that OIR has reduced vacancies but still seeks specialized staff and a Tampa office expansion, and that DMS acknowledged rising health plan costs and said the issue likely requires broader budget-level discussion. The chair also pressed multiple presenters to stay focused on agency operations and budgets rather than broader policy issues. No votes or formal actions were taken in the meeting.

Transcript Highlights:

• And so I think ensuring that we have members engaging in oversight of our budget is absolutely crucial
• Budget accounts. Thank you.
• But we note that with that uptick, the budget proposes the same group of oversight mechanisms for the
• the budget year, but not in the budget year plus one, as we call it.
• They are oversight on this one.

Keywords: 988, house, all

Transcript Highlights:

• </c> the exception being the oversight the exception being the oversight committee<00:00:49.920><c> which
• We don't have a lot of time for oversight typically, so we're eager to work on that.
• </c><00:12:41.720><c> of</c> sure that we have effective oversight of sure that we have effective oversight
• </c> together on the budget to get the budget together on the budget to get the budget approved<00:15
• That puts the governor's budget arriving on our desk somewhere around March 19.

Keywords: 1183, house

Transcript Highlights:

• Budget is our only tool.
• Budget is our only tool.
• Budget is our only tool.
• Budget is our only tool.
• Budget is our only tool.

Keywords: 1183, house

Transcript Highlights:

• budget year.
• We do consider them budget proposals, although, of course, policy is made in the budget as well.
• We did submit that budget letter, the budget ask.
• We've also submitted a budget change proposal to make permanent the resources granted in the prior budget
• in the budget year.

Summary: The Assembly Budget Subcommittee on Human Services heard testimony on Department of Developmental Services (DDS) and related budget and trailer bill proposals, with a major focus on the impacts of H.R. 1 on people with intellectual and developmental disabilities (IDD). DDS and the Department of Social Services (DSS) said H.R. 1 could affect Medi-Cal and CalFresh access, but that people with disabilities and caregivers are exempt from the work requirements; the administration is working on data matching and automation through the statewide eligibility system to identify exemptions, with June 1, 2026 as the implementation date for CalFresh changes. Witnesses and advocates warned that any loss of Medi-Cal could create fiscal pressure on regional centers and households, while public commenters described the real-life consequences of losing services. Committee members repeatedly expressed concern about cost shifts to counties and asked for harm-mitigation strategies before the May Revision. The committee also reviewed the governor’s IHSS-related proposals. DSS said the budget would set a baseline for authorized hours, align IHSS disenrollment/reinstatement with Medi-Cal eligibility processes, and eliminate the IHSS backup provider system, while emphasizing that individual service hours would still be based on assessed need. DDS said if a person loses IHSS or Medi-Cal, regional centers may have to step in as payer of last resort for some services, potentially at higher state cost. Members and the Legislative Analyst’s Office questioned whether counties could absorb the proposed shifts without reducing services, and asked for more detail on implementation, data quality controls, and how regional centers could help families navigate disruptions. A separate trailer bill on DDS rate reform and the Quality Incentive Program drew mixed reactions. DDS proposed extending a contract exemption and delaying final rate reform regulations to 2030, saying the changes are budget-neutral and needed for implementation. DDS reported that about 81% of providers had completed the current Quality Incentive Program requirements, but providers and advocates argued the 90-10 structure can function like a penalty and may destabilize services if providers lose 10% of funding. Committee members asked for clearer assistance to providers, possible flexibility for good-faith efforts, and a redlined version of the language before the May Revision. The committee also heard DDS’s proposed trailer bill on regional center governance and provider capacity. DDS said the language would consolidate regional center contracts and performance measures, strengthen board training and oversight, require consumer advisory committees, expand independent legal support, raise the threshold for board approval of contracts, and remove barriers such as physical-office requirements and duplicate vendorization. DDS said the goal is to improve accountability and efficiency while preserving person-centered services, and members indicated they wanted further refinement and stakeholder input before moving forward.

Transcript Highlights:

• see budget deficits. in upcoming years.
• Now moving on to our budget request.
• Yes, following up on that. oversight.
• How will oversight work since CDT is the vendor, program manager, and program oversight on this project
• Oversight Process.

Keywords: 988, house, all

Transcript Highlights:

• Without real oversight, we have no way of knowing who has their hands on our data.
• Also, charter oversight concerns concerning charter oversight of those charters that have been approved
• and providing fiscal oversight.
• But here—budget authority...
• But here—budget authority... And I'll let my witnesses also respond.

Summary: The committee met as a subcommittee for much of the hearing because it initially lacked a quorum, then later established one and began taking votes. The state auditor gave a status update on ongoing audits, including several JALAC-requested audits in progress, other statutory audits, staffing growth in his office, and the number of new JALAC audits his office could start in the coming months. The committee also heard that one audit request on Prop. 28 was held, and another PUC-related request was moved off consent and heard on the regular calendar. Members then heard and discussed several audit requests. Senator Cervantes presented a request to audit California fusion centers, with witnesses from the FBI and ACLU supporting the need for transparency and oversight; opponents argued the request was politically motivated and could interfere with counterterrorism work. Senator Allen presented a request on CPUC enforcement of Rule 21 interconnection timelines for solar and storage projects, supported by industry and school representatives who described long delays and financial harm, while CPUC staff said the issue was being addressed through workshops and a formal proceeding. Senator Perez presented a request to audit Caltrans’ administration of the former SR 710 extension properties and affordable sales program, citing tenant complaints about maintenance, pricing, and transparency; Caltrans said it was working to complete sales and improve administration. Senator Umberg presented a request to audit the Orange County Board of Education over transparency, contracting, litigation spending, charter oversight, and whistleblower issues, while board representatives said there was no factual basis for an audit and that existing legal remedies had not been invoked. After quorum was established, the committee approved the consent-calendar DMV license revocation audit and then approved the PUC utility timeliness audit and the Caltrans SR 710 audit. The fusion center audit was left on call after a split vote, and the Orange County Board of Education audit continued with testimony from the board’s representatives after the committee had already moved on to other business.

Transcript Highlights:

• This budget also checkout counter.
• But we've also made responsible budget.
• If you talk about oversight, vote for that oversight in the bills that are working their way through
• 00:33:45.320><c> that</c><00:33:45.520><c> oversight</c> about oversight, vote for that oversight about
• oversight, vote for that oversight in<00:33:46.000><c> the</c><00:33:46.080><c> bills</c><00:33:46.400

Keywords: 1183, house

Transcript Highlights:

• So the major fiscal oversight functions receiving direct appropriations in the budget include the fiscal
• oversight function at the Comptroller of Public Accounts, as well as the Legislative Budget Board.
• Oversight function at the Comptroller of Public Accounts, as well as the Legislative Budget Board.
• is required throughout statute, and much of this oversight is contained within the Legislative Budget
• So on this slide, Budget Board within their contract oversight team.

Summary: The Senate Finance Committee met to hear interim charges on higher education transparency and on preventing fraud, waste, and abuse in state government. The chair emphasized accountability for taxpayer dollars and asked witnesses to address financial reporting, audit practices, and whether more frequent or comprehensive audits would improve oversight. Legislative Budget Board staff described how public university systems and most community colleges respond to requests about internal audit practices, noting that university systems generally follow a similar annual audit timeline and that community colleges use a more varied mix of internal and external audit arrangements. Members focused on gaps in reporting, especially Texas Southern University’s missing submissions for several years and Collin County Community College’s nonresponse to the LBB survey. The State Auditor’s Office then outlined its higher education audit work, including mandatory statewide single audits, DEI compliance audits, HUB and State Use Program audits, benefits proportional audits, and discretionary audits based on risk. The auditor said the office has released 43 higher-ed audit reports since fiscal year 2021 and has two audits in progress, and explained that internal audit reports from institutions help guide future audit selection. Senators pressed the office on the lack of enforcement authority, the value of internal auditors at each institution, and whether community colleges should have more standardized reporting and audit requirements. The auditor and general counsel said the SAO can refer suspected fraud to law enforcement but cannot itself enforce findings, while several senators suggested stronger clawback authority and more robust internal audit structures. The Texas Higher Education Coordinating Board explained that it collects annual financial reports, sources-and-uses data, and community college finance reports, and uses them for funding formulas and other reporting. It also trains governing board members and said it has limited regulatory authority, though community colleges must certify compliance annually and can lose eligibility for state funds if they do not. Members questioned the reliability of self-attested data, the adequacy of board training, and whether a single reporting structure would be more efficient. During public testimony, a ScholarShot representative argued for clearer, student-facing financial transparency so students can see total cost of attendance and the gap they must cover before enrolling.

Transcript Highlights:

• </c> are optional, oversight evaporates. are optional, oversight evaporates.
• The EFA oversight committee.
• </c><03:46:55.439><c> Their</c><03:46:55.840><c> budget</c><03:46:56.880><c> budget</c> Their budget
• </c> that actually cut the budget. that actually cut the budget.
• </c> we had a budget surplus. we had a budget surplus.

Keywords: 1191, senate, all

Transcript Highlights:

• :51.599><c> and</c> Through executive action, budget, and Through executive action, budget, and policy
• </c> oversight, increased criminal penalties. oversight, increased criminal penalties.
• </c> annual budget including federal money. annual budget including federal money.
• </c> have the right oversight over providers. have the right oversight over providers.
• So very slim 1.9% of our budget.

Committee: House Fraud Prevention and State Agency Oversight Policy

Keywords: 1183, house

Transcript Highlights:

• </c> Hawaii correctional system oversight Hawaii correctional system oversight commission<00:45:46.119
• I'm Kristen Johnson, the oversight coordinator of the Hawaiʻi Correctional System Oversight Commission
• </c> Hawaii cral system oversight Hawaii cral system oversight [Music] [Music] [Music] commission<01:
• :04:26.039><c> system</c><01:04:26.279><c> oversight</c> the V sectional system oversight the V sectional
• </c> out in February is a jail oversight out in February is a jail oversight specialist<01:04:41.880>

Keywords: 912, senate, all

Transcript Highlights:

• Without real oversight, we have no way of knowing who has their hands on our data.
• So please, We need to start reconsidering budget allocations and FTE.
• Also, charter oversight concerns concerning charter oversight of those charters that have been approved
• and providing fiscal oversight.
• But here, budget authority. And I'll let my witnesses also respond.

Committee: Joint Joint Legislative Audit

Summary: The committee met as a subcommittee because it initially lacked a quorum, heard a status update from State Auditor Grant Parks, and reviewed several new audit requests. Parks reported that 10 previously requested audits were underway, with most expected to be released in spring/summer and one pesticide audit still pending; he also noted ongoing litigation with Huntington Beach over a 2024 audit. He said the office had grown to just over 200 employees and could start about five new JALAC audits between April and July. The committee also noted that one Prop. 28 request was being held and one PUC-related request was moved off consent to the regular calendar. Senator Cervantes presented an audit request on California fusion centers, arguing they operate with little public oversight and may collect, share, and store sensitive information without adequate transparency or safeguards. Supporters, including former FBI agent Mike German and ACLU California Action, said fusion centers function as secretive intelligence-sharing hubs that can produce inaccurate or biased reports and may undermine privacy and civil liberties. Parks said the audit would examine the State Threat Assessment Center and two local fusion centers, focusing on oversight, legal authority, data quality, unauthorized disclosure controls, use of private vendors, funding, and performance metrics, while warning of likely access and public-disclosure limitations. The request drew sharp opposition from Assembly Member DeMaio, who called it a politicized “witch hunt,” but public comment included support from the Electronic Frontier Foundation. Senator Allen then presented an audit of the Public Utilities Commission’s enforcement of Rule 21 interconnection timelines for customer-sited solar and storage projects. He and witnesses said utilities have repeatedly missed deadlines, causing long delays and added costs for schools, nonprofits, and other customers; CPUC staff responded that the commission adopted timelines and compliance benchmarks in 2020, publishes quarterly data, and is already pursuing the issue through workshops and an open proceeding. Parks said the audit would assess CPUC monitoring, enforcement tools, and reasons for utility noncompliance. Public comment was mixed, with solar advocates supporting the request and PG&E objecting on process grounds and arguing the commission’s ongoing proceeding should address the issue. Senator Perez, with Senator Fong, requested an audit of Caltrans’ administration of the former SR 710 corridor property sales and affordable housing program. They described tenant complaints about mold, pests, deferred maintenance, inconsistent pricing and eligibility information, and possible failures to inform residents of purchase rights; Caltrans said it is working to complete sales and has already closed 59 properties since fiscal year 2024-25. Parks said the audit would examine compliance with the Roberti Act, pricing, appraisals, communications, rent accounting, property maintenance, and follow-up on prior recommendations. Finally, Senator Umberg requested an audit of the Orange County Board of Education, citing transparency, litigation spending, charter authorization, procurement, and whistleblower concerns; after quorum was established, Parks said the audit would review Brown Act and Public Records Act compliance, public resource use, contracting, litigation costs, charter oversight, and retaliation complaints.

Transcript Highlights:

• see budget deficits in upcoming years.
• Following up on that oversight, how will oversight work since CDT is the vendor, program manager, and
• program oversight on this project?
• So there's additional oversight, but they're not providing direct oversight as CDT.
• The CPPA should be required to be responsive to the following issues as part of the 2025 budget oversight

Summary: The subcommittee held an informational budget hearing covering several GovOps, CDT, CPPA, and DGS items. GovOps reported that most deliverables under the Governor’s generative AI executive order have been completed, including guidelines, procurement tools, community-impact guidance, and a new project delivery lifecycle for Gen AI projects; one workforce-related deliverable remains. Members and public commenters raised concerns about privacy, labor impacts, and how the state will explain and oversee Gen AI use. The committee also heard a proposal to create a California Education Interagency Council with $5 million ongoing and 16 positions to coordinate workforce and education systems; LAO questioned duplication and recommended limited-term funding, while supporters said a neutral convening body is needed to improve coordination and student outcomes. GoServe presented the College Corps budget proposals, describing the program as a paid service and career-development opportunity for undergraduate students that helps reduce college costs while supporting communities through tutoring, food insecurity work, climate and disaster response, and other service. The administration sought one-time and ongoing funding to expand the program to more campuses and students, while LAO objected to the high administrative costs and recommended rejection. Several students and alumni testified that College Corps provided financial support, professional experience, and career pathways. The committee also heard a $5 million proposal for a Belonging Campaign to address loneliness and social isolation through research, outreach, and local grants; LAO said the proposal lacked clear goals and measures, while supporters said the effort is needed for youth, seniors, and community resilience. The Department of Technology updated the Middle Mile Broadband Initiative, saying construction is underway on the statewide open-access network and the project remains on track for the 2026 deadline, though LAO noted a required business plan had not yet been submitted. The California Privacy Protection Agency presented its Delete Act implementation request for the DROP platform, which will let consumers request deletion of personal information held by data brokers; LAO flagged oversight concerns because CDT is both developing the system and involved in project support. Public commenters from business groups urged caution on CPPA’s rulemakings, warning of compliance costs and job impacts. The Department of General Services then discussed implementation of Proposition 2 school facilities bonds, requesting staffing and administrative funding to manage the new bond program and continue school facility work. Officials said the program can also help districts affected by the January wildfires, including interim site funding and expedited assistance. Finally, DGS requested authority and positions to operate Building 18 for labor-agency tenants relocating from older Capitol Mall space; SEIU Local 1000 criticized the state’s four-day return-to-office policy and said telework has improved productivity and retention. No formal votes were taken; the hearing concluded after public testimony and member questions on each item.