Transcript Highlights:

• The next bill is AB 169, transportation trailer bill.
• The next bill is AB 171, and it is a labor trailer bill.
• The next bill is AB 174, the courts trailer bill.
• And the last bill is another policy bill, AB 182.
• Item 17, Assembly Bill 179. Which bill number? Item 17, Assembly Bill 179.

Committee: Senate Budget and Fiscal Review

Transcript Highlights:

• You know, last session, I passed a bill, House File 8, that was on the governor's top 10 bills because
• I knew that uh this bill >> Burke.
• And this bill will set direct impact.
• recruit, or what's in the bill?
• And what this bill academic preparation.

Summary: Legislators and school counselors discussed a bill aimed at strengthening school counseling services in Minnesota. Supporters said the proposal would clarify counselors’ roles in state policy, require at least one school counselor in every school, and ensure counselors spend 80% of their time in direct services to students rather than being assigned to duties like hall monitoring or substitute teaching. The bill was described as building on prior efforts to expand student mental health supports after COVID and responding to Minnesota’s low student-to-counselor ratio, which speakers said ranks 48th nationally. Several counselors testified about the pressures facing students and schools, especially in communities affected by ICE enforcement and broader trauma. A St. Paul counselor described students displaced by enforcement actions, a child whose father was detained, and schools serving as food distribution centers. Another counselor from Minneapolis said students were experiencing chronic stress, fear, and difficulty focusing on school, with staff organizing mutual aid, delivering supplies, and helping students continue learning from home. Speakers said these conditions are statewide and that counselors are providing trauma support, family crisis navigation, and basic needs assistance. In response to questions, a Minnesota School Counselor Association advocate said the bill is intended to give counselors a clearer state framework and support their professional training and responsibilities. No vote or formal committee action was described in the transcript.

Transcript Highlights:

• </c> their tax bill. their tax bill.
• </c> this bill. this bill.
• Your school spending, your municipal spending, and your county spending.
• bill.
• </c> or the bill rather. or the bill rather.

Committee: House Ways and Means

Transcript Highlights:

• A copy of the bill. Is, do we have a copy of the bill? Mr. President, I do in this ring.
• Is that the big, beautiful bill or, all right, that bill where they don't allow people that are here
• President, Senator, because of the big bill that passed, the federal bill restricted permissioning.
• And then she'll have to determine how they're going to bill, if they're going to bill in arrears after
• If I spend a dollar on Cheetos, I cannot spend a dollar on vitamins. And so are we using...

Transcript Highlights:

• We spend a lot of time.
• That way you can show that you're spending the money on what you're spending the money on, as opposed
• I will note, not just for my bill, but for all of the bills going through the Legislature, that it is
• You saw that bill moving.
• show with bills today.

Transcript Highlights:

• Your leadership as well, Senate Bill 26 and several other bills that have taken some of the revenue that
• county awarded $400,000 through that House Bill.
• I think we all need to be very, very careful about what we spend." And how we spend our money.
• I'm not the first bill doing this, and I believe in that bill, the suspension sunsets in 2029.
• is that after the 2029 date that is in the bill?

Transcript Highlights:

• Well, you start cutting out discretionary spending, and also you adjust your spending on durable goods
• Well, you start cutting out discretionary spending, and also you adjust your spending on durable goods
• Well, you start cutting out discretionary spending, and also you adjust your spending on durable goods
• adjust your spending on durable you adjust your spending on durable goods<00:19:40.039><c> maybe</c><
• </c><00:19:45.280><c> patterns</c> instead uh so the spending patterns instead uh so the spending patterns

Summary: The meeting was a Ways and Means briefing opened by the vice chair, who introduced Jason Wong of the Federal Home Loan Bank of Boston to discuss the national and regional economy. Wong focused on inflation, asking why it had fallen from about 9% in 2022 to the 2%–3% range, and what that meant for monetary policy and the risk of an economic downturn. He said the Fed’s target is 2%, noted that recent PCE inflation was about 2.4% and core PCE about 2.7%, and described the ongoing debate over whether interest rates should stay tight or be lowered further to protect the labor market. Wong explained that the improvement in inflation has been driven largely by goods prices, especially durable goods such as cars, appliances, and furniture, as well as non-durable goods like food. He said supply-chain disruptions during the pandemic caused major price spikes in 2022, but those pressures have eased and many goods prices are now at or below the Fed’s target. He also referenced the New York Fed’s Global Supply Chain Pressure Index, saying it showed extreme pandemic-era disruptions that have since receded. The main remaining inflation problem, he said, is in services, especially housing. Wong broke services into rent of shelter and all other services, explaining that shelter is a large share of household budgets and that housing inflation has a lag because rent measures often reflect older lease terms rather than current market rents. He said monthly Zillow data suggest market rents have cooled and may eventually feed through to official inflation measures. Members asked several questions about the chart’s time scale, the treatment of real estate, property taxes, and utilities, and Wong clarified that housing costs are counted in services and that the slides would be shared digitally. No votes or formal actions were taken.

Transcript Highlights:

• This bill was not heard as the companion bill, Senate Bill 6323, was heard by this committee and was
• This bill was not heard as the companion bill, Senate Bill 6323, was heard by this committee and was
• bill.
• bill.
• bill.

Summary: The committee took up executive action on the capital budget, Proposed Substitute Senate Bill 6003, and several policy bills. Staff described amendments to the capital budget that shifted funding among behavioral health, local/community projects, irrigation projects, and juvenile rehabilitation capacity, plus a technical fix to the water pollution control revolving program. The committee adopted Senator Dozier’s budget-neutral amendment and a technical amendment, then advanced the amended capital budget to the Rules Committee. It also moved House Bills 2441, 2124, 2471, 2133, 2610, and 2338 forward with due-pass recommendations, and advanced Engrossed Second Substitute House Bill 2251 on Climate Commitment Act accounts to the Transportation Committee after adopting two amendments and withdrawing three others. A major public hearing focused on Engrossed Second Substitute House Bill 2034, which would terminate and restate LEOFF Plan 1 in 2029, transfer surplus assets, and direct portions to the Climate Commitment Account and the pension funding stabilization account. Staff said the plan is currently about 160% funded and explained the bill’s IRS-review process, statute of limitations, and estimated implementation costs. Testimony was sharply divided: some retirees, firefighters, counties, and cities opposed the bill as an improper use of pension assets and urged benefit enhancements or protection of local medical obligations, while others supported using the surplus for broader public purposes. No vote was taken on the bill during the hearing. The committee also heard House Bill 2179 on PERS coverage for certain port workers, with ports and the Washington Public Ports Association supporting clarification for railroad employees covered by the federal railroad retirement system. House Bill 1069, allowing Department of Corrections employees to bargain over supplemental retirement benefits, drew support from Teamsters and corrections workers, while House Bill 2091, expanding employee-information sharing with bargaining representatives, drew union support and privacy objections from Washington Policy Center. Finally, Second Engrossed Substitute House Bill 1210 on targeted urban area tax preferences drew support from labor, local governments, and project proponents, and opposition from contractor groups and environmental advocates over project labor agreement requirements and nuclear-related concerns; Engrossed Substitute House Bill 1408 on community preservation and development authorities and Engrossed Second Substitute House Bill 1974 on land bank authorities for affordable housing were also heard, with both receiving supportive testimony from community and housing advocates.

Transcript Highlights:

• Thank you so much for this bill.
• The provisions in this bill are not flashy, and they might not even seem The provisions in this bill
• This bill, as you know, would allow municipalities to different sections of the bill.
• and every aspect of the bill, so...
• I urge passage of this bill.

Committee: Joint Joint Committee on Municipalities and Regional Government

Summary: The hearing focused on Governor Healey and Lt. Gov. Driscoll’s Municipal Empowerment Act, with administration officials and municipal leaders broadly supporting the bill as a package of tools to help cities and towns manage rising costs, staffing shortages, and service demands. The administration highlighted procurement reforms, including raising Chapter 30B advertising thresholds, clarifying cooperative purchasing, and removing the Commbuys notice requirement; permanent authority to amortize emergency-related deficits over three years; expanded authority and enforcement for removing double poles; continued flexibility for hybrid and remote public meetings; regionalization options such as regional boards of assessors and intermunicipal agreements; cybersecurity reporting to EOTSS; and several local revenue options and other municipal finance changes. They said the bill was shaped by listening sessions with municipal officials and was intended to increase flexibility, efficiency, and stability without imposing broad mandates. Committee members asked about regionalization, cybersecurity costs, Commbuys, hybrid meetings, and double poles. Administration witnesses said cybersecurity reporting would help the state target resources and that existing Community Compact and capital grant programs, including IT and municipal fiber funding, could support local needs; they said EOTSS would absorb reporting within existing resources. On procurement, they said the Commbuys notice change would be optional and that other public notice methods would remain available. On hybrid meetings, they emphasized flexibility for different types of boards and the burdens a one-size-fits-all mandate could create for small towns and volunteer boards. On double poles, they said the bill’s main change from last session was to give utilities more time and improve the removal process while keeping enforcement mechanisms aimed at speeding removal rather than raising revenue. The Massachusetts Municipal Association, MAPC, the Pioneer Valley Planning Commission, and multiple mayors and town managers testified in support. They described the bill as a practical modernization measure that would help local governments operate more efficiently and respond to fiscal pressure. Witnesses from Northampton, Lynn, Gardner, Cambridge, Franklin, North Andover, Manchester-by-the-Sea, and Ashland praised the hybrid meeting provisions, procurement changes, regional service-sharing, and emergency deficit amortization. Several also urged adoption of local revenue tools, including meals and lodging tax options and other local fees, as ways to preserve services and staffing. No votes were taken during the hearing.

Transcript Highlights:

• </c> And that's the bill. And that's the bill. Thank<00:04:45.600><c> you.
• Bill Bill 557?
• I'm going to close the hearing on House Bill 718 and open the hearing on House Bill 771.
• And this bill present um House Bill 771.
• </c> on House Bill on House Bill 771?

Committee: Senate Education Finance

Transcript Highlights:

• Let's try to think beyond a bill or two.
• </c> dead election bills. dead election bills.
• </c><00:26:49.000><c> that</c> regarding, um, the federal bills that regarding, um, the federal bills
• And we spend over $2 million conflict. And we spend over $2 million managing<00:33:57.240><c> them.
• </c> Non-residents are paying the big bill. Non-residents are paying the big bill. Right?

Committee: Joint Travel, Recreation, Wildlife & Cultural Resources

Transcript Highlights:

• But unfortunately, our appetite to spend exceeds it.
• But unfortunately, our appetite to spend exceeds it.
• “We need to lower utility bills in California.
• We need to lower utility bills in California.
• That's why I voted no on the bill.

Summary: The hearing focused on the governor’s May Revision proposals for transportation, natural resources, climate, and related programs, with the Department of Finance and the LAO presenting competing views on the state’s fiscal condition. Finance said the budget remains balanced over two years, with major climate-bond, water, parks, transportation, DMV, and agriculture proposals, while the LAO argued the state still has a structural deficit and should reject or defer many new discretionary spending items, preserve reserves, and be cautious about ongoing commitments. The LAO specifically questioned the timing and scale of new spending for programs such as Clean California, Healthy Rivers and Landscapes, and the Golden Gate Fields acquisition, and urged more clarity on future obligations and revenue scenarios, including for the Greenhouse Gas Reduction Fund. A major portion of the hearing was devoted to the Healthy Rivers and Landscapes proposal for Bay-Delta water quality implementation. Secretary Wade Crowfoot and Finance described it as an enforceable, science-based alternative to a more traditional regulatory approach, with the state’s $25 million request intended to support early implementation, monitoring, habitat restoration, and environmental flows. The LAO countered that the Water Board has not yet adopted the updated Bay-Delta plan, that the proposal may be premature, and that the Legislature should wait for more information on the state’s total funding commitment and the program’s long-term costs. Several members expressed support for the program as a way to reduce conflict and protect water reliability, while others echoed concerns about timing and fiscal exposure. The committee also examined the proposed $125 million Proposition 4 contribution toward acquiring the Golden Gate Fields property for a shoreline park and habitat project. State officials said the acquisition is a time-sensitive, once-in-a-generation opportunity, with an appraised value of $175 million and additional philanthropic and local funding expected to close the gap. Members questioned whether the project had gone through the usual competitive process, whether the site is the best use of scarce park bond dollars, and how public access, habitat, and disadvantaged-community priorities would be protected. The discussion ended without a vote, and the committee moved on to transportation items including Clean California litter abatement, the Games Route Network, homeless encampment coordinators, and DMV modernization and field office proposals, with LAO recommending rejection or delay on several of those requests as well.

Transcript Highlights:

• That's a fast acceleration of spending at the Salton Sea.
• I can tell you that they spend $4 billion annually... annually?
• I can tell you that they spend $4 billion annually. annually?
• Right now, we spend about $30 million.
• And right now, we spend about $30 million.

Transcript Highlights:

• This is a $406.8 million decrease in all funds. from the 24-25 spending levels.
• Okay, and what about their spending on outside consumption?
• We're going to end up having to spend the money.
• We're going to have to spend a lot of money on it, and we're going to have to spend a lot of money on
• And spend a weekend doing that. So it's been very lucrative for us.

Bills: SB1 , SB 1

Committee: Senate Finance

Transcript Highlights:

• , which is also not easy, but easier than cutting into ongoing spending—has already been done.
• Revenues or making reductions to ongoing spending are some of the choices before you.
• I wish that there were easier answers than reduce your spending or raise revenues.
• In addition, we would point out that spending money now can help save money later.
• Longer be spending their own money and personal resources simply to do their job.

Summary: The Senate Budget Subcommittee on Resources, Environmental Protection, and Energy opened its first hearing with remarks from the chair and members emphasizing climate change, resiliency, clean energy, natural resources, and the need to make careful budget choices in a constrained fiscal environment. The Legislative Analyst’s Office presented an overview of the natural resources and environmental protection budget, warning that although current revenues are strong, the state faces significant out-year deficits and should apply a high bar to new ongoing spending, use special funds and fees carefully, and focus on critical health and safety needs. The LAO said the Governor’s Proposition 4 spending plan was generally reasonable and consistent with bond requirements, but urged legislative oversight and reporting, especially where bond funds interact with General Fund proposals. Secretary Wade Crowfoot then described the Natural Resources Agency’s recent accomplishments and priorities, including wildfire resilience, water reliability, coastal protection, outdoor access, biodiversity, tribal partnerships, and streamlining project delivery. He highlighted major investments in climate and resilience, the role of Proposition 4 in continuing those efforts, and the need to modernize water infrastructure, including Delta conveyance and other regional conveyance projects. Members asked about Delta conveyance, invasive species, permitting delays, and the impact of federal staffing cuts; Crowfoot said the administration is pushing projects forward, supports a beneficiary-pays approach for conveyance, and is filling gaps left by federal reductions where necessary. The committee then heard from the Department of Parks and Recreation. Director Armando Quintero reviewed the state park system, outdoor access programs, tribal agreements, wildfire and forest resilience work, and deferred maintenance funded by the climate bond. The LAO recommended rejecting the proposed ongoing General Fund transfer for the California State Parks Library Pass program, saying it did not meet the high bar for new spending, while several members strongly supported the program as a low-cost, high-value access tool. Members also pressed Parks on reservation system problems and no-show vacancies; staff said new rules and enforcement will take effect July 1 and that vacancies are being opened up sooner. The department also presented low-cost accommodation projects, which the LAO supported. Finally, the Department of Fish and Wildlife introduced its new director, Megan Hurdle, who outlined the department’s mission, staffing, service-based budgeting, and Proposition 4 proposals for salmon tagging, hatchery improvements, and public access lands. She emphasized the department’s role in biodiversity conservation, permitting streamlining, law enforcement, and human-wildlife conflict outreach, and said the agency is working to close a service gap identified in its budgeting analysis. No votes were taken during the hearing.

Transcript Highlights:

• We had a $18 billion spending spree that the legislature went on over two years.
• We had a not not to mention the $18 We had a not not to mention the $18 billion<00:03:33.360><c> spending
• </c><00:03:33.840><c> spree</c><00:03:34.239><c> that</c><00:03:34.720><c> the</c> billion spending spree
• that the billion spending spree that the legislature<00:03:35.599><c> went</c><00:03:35.840><c> on</
• And we have a package of bills that we have heard in committee, and we will continue to hear, that send

Transcript Highlights:

• The bill, the first section of the bill, is fairly simple.
• As proposed in Senator Marty's bill, if we could take some of the repurposed dollars from PMAP spending
• As proposed in Senator Marty's bill, if we could take some of the repurposed dollars from PMAP spending
• As proposed in Senator Marty's bill, if we could take some of the repurposed dollars from PMAP spending
• This bill is extremely important.

Committee: Senate Health and Human Services

Transcript Highlights:

• </c> the capital um budget for House Bill the capital um budget for House Bill 25<00:06:14.880><c> um
• They put language in House Bill 2 that was contingency that basically said if this House Bill 25 gets
• Bill 2 that was contingency that Bill 2 that was contingency that basically<00:12:48.120><c> said</c>
• c><00:12:49.279><c> 25</c> basically said if this house bill 25 basically said if this house bill 25
• 2 or language potentially in House Bill 2 or the<00:28:51.519><c> trailer</c><00:28:51.880><c> bill<

Summary: The Public Works and Highways committee held a capital budget orientation led by Legislative Budget Assistant Office staff, who walked members through the budget materials, the capital budget process, and the committee’s compare sheet. The presentation explained that agencies begin developing capital requests nearly a year in advance, submit them by May 1, and that the governor’s recommended capital budget is a reduced version of the much larger agency wish list. Members were told the agencies initially requested about $1.1 billion in projects, the catalog was trimmed to just over $400 million in general fund projects, and the governor’s recommendation in the pink book totals about $143 million in general fund capital appropriations. The committee also reviewed the prior capital budget and related statutes and committee procedures. Several specific projects drew discussion. The Department of Education’s CTE projects were explained as having been shifted into the operating budget in the prior cycle and now returning to the capital budget recommendation; members asked whether there was a backup CTE project and whether local approval had been secured for the named project. The Cannon Mountain tramway request was highlighted as a $20 million recommendation, with the presenter explaining that an earlier $18 million appropriation would be lapsed back to the general fund to help balance the budget. The Department of Corrections’ new prison project was also discussed; members were told the state has already appropriated $50 million for planning and site evaluation, but the governor’s current capital budget does not include a new prison construction appropriation because the project is not yet ready for that phase and may need to be funded differently, possibly through a separate, staggered appropriation. State Treasurer Monica Mezzapelli then presented on debt affordability and the state’s borrowing capacity. She said the state’s credit position has improved, with the debt-to-revenue ratio falling from 8.2% in 2015 to 3.8% in 2024, and explained that RSA 6-C limits debt authorization to 10% of unrestricted prior-year revenue. She noted that the Treasury’s planning assumes $60 million in annual bond issuance, with the prison-related $40 million now expected to be issued in 2026 rather than 2025 because the project is not ready to spend the funds. She said the state can still borrow more, but additional debt service must be paid from operating funds, and recommended keeping capital bonding in the $120 million to $130 million range to preserve affordability and the state’s credit rating. Members asked for clarification on the CTE funding shift, the prison schedule, and the meaning of the large agency request totals. The chair and treasurer discussed the governor’s $143 million recommendation versus the committee’s usual target range, and the treasurer said $130 million would be more comfortable than $140 million, with $135 million described as a possible compromise. No formal votes or committee actions were taken in the portion provided; the meeting was informational and ended with the presenters offering to answer follow-up questions as agencies come before the committee.

Transcript Highlights:

• Today I stand here about a bill that is dubbed as a simple bill, a bill that has an if, a bill that has
• The bill... >> Ma'am. >> The bill. I'd love to talk about the bill.
• This bill is a vehicle. This bill is a vehicle.
• But when you write your bills, who are your bills benefiting? “Your bills benefiting?
• My bill, all my bill says is... My bill, all my bill says is whatever the court decides.

Transcript Highlights:

• Since both of the bills on consent are Senator Durazo's bills, I'm sure you would be happy if I moved
• For that reason, I think this bill makes sense. I will support the bill.
• I think this bill makes sense. I will support the bill. Thank you.
• Bill remains on call. Thank you, Madam Chair. Thank you all very much. Bill remains on call.
• The vote is 7-0; the bill is out. The vote is 7-0; the bill is out. File item number 1, SB 983.

Committee: Senate Local Government

Summary: The Senate Committee on Local Government met to hear a long agenda of local government, housing, labor, and transparency bills. The committee first adopted the consent calendar for SB 1187 and SB 1388, then heard SB 983, which would authorize the Port of San Diego to use job order contracting for repairs and repetitive maintenance work. Supporters said the bill would speed emergency and small repairs and reduce costs, while opponents raised concerns about construction definitions and project labor agreement language. The bill was ultimately moved forward on a 2-2 vote after discussion of amendments and labor negotiations, and later the committee’s final roll call showed it passing out on a 5-2 vote. The committee also heard SB 1256, aimed at limiting duplicative litigation over a San Diego County housing project, and SB 992, which would make permanent and expand a small special-district audit flexibility by raising the revenue threshold from $150,000 to $250,000. SB 1256 drew support from the author and project counsel, who argued the project had already been litigated and was delaying needed housing, while opponents said the bill would interfere with wildfire and subdivision-map review. SB 992 had support from county auditors and special districts, with no opposition, and was approved 5-0. SB 1115, addressing governance failures at the Tulare County Public Cemetery District by allowing county supervisors to remove an individual trustee for cause, also passed unanimously after testimony describing serious dysfunction and opposition from the California Special Districts Association. The committee then took up SB 1193, which would impose transparency and approval requirements on Alameda County discretionary funding to nonprofits and other entities. The author and supporters described the bill as a response to grand jury findings and alleged conflicts of interest, while Alameda County argued its current process is already transparent and that the bill would add burdens and could harm services. After amendments and discussion, the bill passed 5-0. SB 1383, a density bonus law bill clarifying that local labor standards cannot be waived through density bonus concessions, was supported by labor groups and moved forward despite no opposition, with the final roll call showing it passing out 5-1. SB 1361, intended to prevent local governments from undermining transit projects because of SB 79 density concerns, also passed after support from L.A. Metro and labor and no formal opposition, with the final vote recorded as 5-2. The committee later resumed to hear SB 1272, the CASH Act, which would limit certain sanctions on homeowners for prior unpermitted work by previous owners; the transcript cuts off before that bill’s full testimony and vote.