Transcript Highlights:

• The Governor's proposed budget offers $32.5 billion, or 27% of the total state budget, to be spent on
• The department's total budget includes a reduction of approximately $419,000 in budget authority for
• With this budget, Mr.
• our operating budget.
• our operating budget.

Summary: The committee met to hear the Governor’s proposed budget for the Transportation, Tourism, and Economic Development silo and to consider one bill. The Governor’s Office outlined a $117.4 billion state budget, including $18.3 billion for the TED area, with major allocations for the Department of Transportation, Commerce, Highway Safety and Motor Vehicles, State, Military Affairs, Emergency Management, and the Florida State Guard. Agency heads then presented their priorities, including housing and disaster recovery funds at Commerce; pay, vehicles, aviation, and data systems at Highway Safety; facility modernization, recruitment, retention, and maintenance at Military Affairs; election audit, conservation lab, and historic preservation funding at State; transportation, aviation, seaport, and safety investments at DOT; and emergency response, flood mitigation, grant systems, and alerting at Emergency Management. Members asked questions about Visit Florida’s private match, FHP’s role in immigration enforcement and body cameras, National Guard deployment tempo and staffing, State Guard staffing and facilities, arts grant rules, rail funding, and the number of detainees at the Everglades detention site. Several notable positions were expressed during questioning. Visit Florida said it met and exceeded its private match requirement and described the match as important to ensuring value from public dollars. The Highway Patrol said its aviation assets have been used more heavily in immigration enforcement and that in-vehicle camera systems were a higher priority than body cameras at present. The National Guard and State Guard both emphasized heavy operational demands, readiness needs, and the importance of additional funding for facilities, personnel, and equipment. The Department of State said its audit funding would help counties move to automated post-election audits and that its arts grant rule changes were intended to create more consistent scoring rather than reduce access. The committee then took up CS/SB 48 on accessory dwelling units. The bill requires local governments to allow property owners to voluntarily create ADUs, preserves homestead treatment for the primary residence portion, limits parking restrictions, and extends density bonus incentives to housing for military families receiving basic housing allowance. An amendment was adopted removing reusable tenant screening reports and clarifying that compliant ADUs are allowed by right without a separate hearing or permit. Testimony from the Florida Restaurant and Lodging Association supported the bill, especially the long-term rental requirement, as a tool to help workforce housing. The committee reported the bill favorably by a roll call vote, and then adjourned.

Transcript Highlights:

• We're excited for this upcoming budget season.
• care silo of the budget.
• But it's something that I know that during budget, we're budgeting, and as we're cutting, we're going
• And that breakdown is the budget items that I went through of the three-point... ...is the budget items
• That alone is a $385 million increase in our budget than what the governor's budget will look like just

Summary: The Appropriations Committee on Health and Human Services heard presentations on the governor’s proposed fiscal year 2026-2027 budget for the health and human services agencies. Kendall Kelly outlined the overall HHS budget at $48.5 billion, with AHCA accounting for the largest share, and agency heads then highlighted major proposals for Medicaid behavioral health redesign, APD waiver enrollment and facility needs, DCF child welfare, opioid, and mental health investments, DOEA funding for Alzheimer’s, home care, and community services, DOH funding for cancer research, public health initiatives, and lab capacity, and VA funding for facility improvements, cybersecurity, and medication management. Several members praised specific proposals, including increased reimbursement for private duty nursing, Alzheimer’s supports, and the Florida FIRST blood-in-ambulance initiative. Senators also questioned the proposed changes to the AIDS Drug Assistance Program (ADAP), with the Surgeon General explaining that the department expects a reduction in covered patients from about 30,000 to about 20,000 because of funding pressures tied to rebates, federal changes, and premium tax credit issues. Public testimony strongly criticized the ADAP changes, citing lack of transparency and warning that many patients could lose access to medications. Other questions focused on the Office of Minority Health and Health Equity, DCF’s substance abuse and mental health data dashboard, Kids Care/CHIP expansion implementation, APD bed and facility planning, and the FX Medicaid technology project. DCF said about $7 million is set aside for the dashboard system, and AHCA said the governor’s budget includes $124.4 million for FX maintenance and continued module development, with $13.5 million to begin claims processing work. The committee did not take a substantive vote on the budget presentations and adjourned after questions and public testimony.

Transcript Highlights:

• This budget addresses that.
• We honored that and put it in the budget.
• So we're accounting for that in this budget.
• needed to implement the FY 2027 budget.
• And that's what this budget does.

Keywords: 1182, all

Transcript Highlights:

• efficiency budget.
• efficiency budget.
• A budget, and in our annual opening budget, we were able to meet the governor's efficiency budget.
• In in the House budget, a as you budget.
• </c> know not all IT spend is in in my budget know not all IT spend is in in my budget budget.<01:48:

Keywords: 1191, senate, all

Transcript Highlights:

• budget cycles ago, we had a request to budget cycles ago, we had a request to hire<00:24:32.480><c> 200
• </c> care setting and about 75% of our budget care setting and about 75% of our budget is<00:48:40.880
• </c> the upcoming budget. the upcoming budget.
• Uh, so it's going to increase the budget. Um, our growth and our budget. I'm concerned too.
• Uh, so it's going to increase the budget. Our budget and that's total funds.

Keywords: 958, all

Summary: The Budget Review Subcommittee on Health and Family Services heard a presentation on Kentucky personal care homes from representatives of the Kentucky Association of Healthcare Facilities, Management Systems of Kentucky, and Elder Care Partners. Witnesses described personal care homes as a lower-cost, 24/7 residential option for adults with serious mental illness who do not qualify for nursing home care but need structured support, medication assistance, meals, housekeeping, transportation, and supervision. They said the homes are regulated by the Cabinet for Health and Family Services, are not Medicaid-funded, and rely on a state supplementation rate of about $50.70 per day, which they argued no longer covers operating costs because of rising food, labor, insurance, and maintenance expenses. The presenters said the sector has shrunk significantly over time, citing a drop from 64 homes in 2002 to 34 today among the homes serving this population, with 30 closures over 23 years and two more closures since August. They argued that the closures have contributed to homelessness, hospital overcrowding, and longer stays in psychiatric hospitals, and they gave examples of residents who had spent many months in hospitals before stabilizing in a personal care home. One provider also described spending more than $800,000 on capital improvements after acquiring Kentucky facilities and said reimbursement is too low to sustain safe operations. They asked for an incremental reimbursement increase over two years and said they have also proposed an assisted-living model for people with mental illness. Members asked about staffing, reimbursement, and the number of people still needing placement. The presenters said there is no requirement for licensed or certified staff in these facilities, though some homes use medication technicians and occasional LPNs. They estimated they are currently serving about 2,000 residents and said they receive roughly 30 referrals for every one person admitted, with many referrals involving people whose needs exceed the personal care home level. Senator Meredith and Representative Fleming said any funding request would need documentation of savings and corresponding budget offsets, while Representative Duval expressed support and asked about possible staffing and program improvements. The witnesses also compared Kentucky’s flat-rate reimbursement to a more individualized reimbursement model in Minnesota, saying a needs-based system would better match staffing and reduce hospitalizations.

Transcript Highlights:

• And so that was one of the budget proposals that was approved as part of last year's budget.
• So as part of the 2025 Budget Act, the budget includes a reduction...
• Of the 2025 Budget Act, the budget includes a reduction of $150 million as part of the W-QIP that we
• And if you support the budget, ask, or you are opposed to the budget, and if you support the budget ask
• The 2025-26 enacted budget eliminated the supplemental payments beginning in 2026-27 as a budget solution

Summary: The Assembly Budget Subcommittee on Health began with a hearing on the impacts of H.R. 1 on California health programs, focusing first on reproductive health state investments. HCAI outlined five state-funded reproductive health programs created after Dobbs, including uncompensated care, practical support, capital and clinical infrastructure, and workforce programs. Essential Access Health and Planned Parenthood testified that these funds have served hundreds of thousands of patients, but warned that the uncompensated care program is fully awarded and needs renewal, and that Title X and Medicaid-related federal uncertainty continues to threaten access. Members questioned who the uncompensated care program serves, why Medi-Cal covers a large share of abortions, and whether Planned Parenthood could expand prenatal services; public commenters urged continued support for reproductive health access. The committee then took up long-term care services and supports, starting with the HCBA and Assisted Living Waiver programs. DHCS reported large wait lists for both programs and said enrollment is limited by workforce and provider capacity, while LAO noted that increasing slots alone may not increase access without additional programmatic changes. Members pressed the department on whether more slots should be added given the lower cost of home- and community-based care compared with skilled nursing facilities, and public testimony argued that the wait lists should be reduced and that staffing concerns do not fully explain unused capacity. The committee also heard testimony on congregate living health facilities, where providers and a patient family described the homes as critical, lower-cost alternatives to nursing facilities for younger, medically complex people. Witnesses requested short-term bridge funding, while DHCS said it is proposing to transition CLFs into a managed care benefit by January 1, 2028, which would remove caps and expand access statewide. The final long-term care topic was PACE. DHCS explained that it has paused new PACE applications and service expansions for at least two years to reassess oversight capacity and develop a statewide strategic growth framework, while existing programs continue operating. CalPACE supported the pause as a planning measure but asked for four additional state nurse positions to reduce delays in level-of-care determinations and speed enrollment for frail older adults. Members shared personal stories about how PACE has helped family members and asked how the state will meet growing demand; DHCS said stakeholder engagement will begin later in the year and that some existing applications already in process will continue. Public commenters broadly supported PACE, HCBA, and CLF funding requests. The hearing then moved to the Department of Health Care Services’ 2026-27 Medi-Cal budget and related trailer bills. DHCS said Medi-Cal spending has grown due to coverage expansions, higher acuity, rising utilization, and especially pharmacy costs, and it described proposals to extend the current skilled nursing facility financing framework for one year while the state develops a new value-based payment strategy. LAO said most recent Medi-Cal spending growth has been driven more by higher per-enrollee costs than by caseload growth, with pharmacy spending growing especially quickly, and recommended better and more timely data to analyze the drivers. Members expressed concern about the rapid rise in Medi-Cal spending and asked for more detail on the largest cost increases.

Transcript Highlights:

• So just to remind folks what the budget adjustment act is: we're adjusting the budget that we passed
• </c> budget in in in the fall. budget in in in the fall.
• </c> everything in the whole state budget. everything in the whole state budget.
• </c> conference committee or an FY27 budget. conference committee or an FY27 budget.
• </c> FY27 budget. FY27 budget. &gt;&gt; Are<00:58:13.520><c> you</c><00:58:13.680><c> ready?

Keywords: 927, senate, all

Transcript Highlights:

• general budget capital budget limit deficits.
• capital budget balance to reduce the budget balance deficit, use of general fund budget balance reserves
• capital budget balance to reduce the budget balance deficit use of general fund budget balance reserves
• our budget priorities.
• We implemented a zero-based budgeting approach to desegregation budgeting.

Summary: The committee first heard a follow-up on the Arizona State Board of Chiropractic Examiners special audit. The Auditor General’s contractor reported that the board has made progress on most of the 28 recommendations from the 2024 audit, with 25 in process and three not yet implemented. Remaining concerns included complaint investigations not being resolved within 180 days, continued open meeting law compliance problems, and failure to consult the Attorney General’s open meeting law experts. The follow-up also identified new issues with posting disciplinary/non-disciplinary actions and maintaining a complete public records request log. Board staff said they had adopted new complaint timelines, subpoena limits, conflict-of-interest procedures, public meeting guidance, training, and a new licensing platform, and they described efforts to professionalize investigations and improve transparency. Members pressed the board on open meeting violations, complaint backlogs, lobbying activity, and the resignation of the board chair, while the executive director said the audit findings were being treated as a roadmap for reform. The committee then received the January 2026 Arizona school district financial risk analysis. The Auditor General’s office said the number of highest-risk districts rose from two to nine, and districts approaching highest risk increased from seven to nine. The report highlighted common risk factors such as declining student counts, budget reserve problems, use of capital funds for operations, and weakening general fund positions. Tucson Unified was used as an example of a highest-risk district, with declining enrollment, reserve declines, and capital funds redirected to operations; Scottsdale Unified was cited as approaching highest risk. The office explained its web-based dashboard, district action plans, and ongoing outreach to affected districts. Sierra Vista Unified School District superintendent Terry Romo then presented the district’s response to its financial risk designation. She said she inherited the problems, quickly developed an action plan, and is working to stabilize enrollment, reduce staffing through attrition, close an elementary school, freeze nonessential spending, tighten purchase controls, and renegotiate or cancel high-cost contracts. She also said the district is redirecting DAA funds, considering sale or lease of property, and improving communication with families through letters, videos, and enrollment outreach. Committee members questioned the district about declining enrollment, school safety, academic performance, and the pace of corrective action, while Romo emphasized that the district is trying to protect both students and finances and avoid returning to the high-risk list.

Transcript Highlights:

• This budget addresses that.
• We honored that and put it in the budget.
• So we're accounting for that in this budget.
• needed to implement the FY 2027 budget.
• And that's what this budget does.

Summary: House Republican caucus met on April 29 to review the FY 2027 budget package and several related “budget implementation” bills, with Chairman Livingston noting that HB 2415 was being held. Staff and members walked through HB 4138, the General Appropriations Act (“feed bill”), which appropriates about $17.96 billion from the general fund and includes one-time fund transfers, 5% lump-sum reductions for most agencies, funding for the state health insurance plan, school facilities, child care, correctional officer stipends, public safety, and other prior-year items. Members emphasized that the budget reflected House and Senate negotiations after the governor left budget talks, and Republican leaders framed it as a package that lowers taxes, shrinks government, and funds priorities such as K-12, child care, foster care, and public safety. The caucus then reviewed a series of mostly standard budget bills: HB 4139 on gaming/racing assessments; HB 4140 on federal monies, the budget stabilization fund, and ACE initiative savings reporting; HB 4141 on capital outlay, highway construction, airport funding, and rural transportation match funds; HB 4142 on commerce and lottery distributions; HB 4143 on corrections reporting; HB 4144 on environmental provisions and water-related fund uses; HB 4145 on state employee health insurance premiums and DES reforms; HB 4146 on higher education funding provisions; HB 4147 on SNAP administration and error-rate reduction; HB 4148 on K-12 inflation adjustments, school facilities, and ASDB property-sale oversight; HB 4150 on county expenditure flexibility and state office rent rates; HB 4151 on the Department of Revenue’s integrated tax system funding and related charges; HB 4152 on tax conformity, deductions, and repeal of several renewable-energy tax preferences and the Rio Nuevo diversion; and HB 4153 on transportation reporting. Discussion repeatedly centered on health plan solvency, SNAP/ACCESS eligibility and fraud controls, school funding, rural transportation, and tax conformity and relief. The caucus also took up several blue-sheet bills: HB 2035 on extended-family placement notifications in child welfare cases; HB 2170 restricting certain PRC-controlled companies from state IT contracts; HB 2249 expanding Parents’ Bill of Rights provisions; HB 2573 on DUI interlock/restricted-license rules and psychotherapy definitions; and HB 2873, which was amended to allow withdrawal of referendum petitions before ballot qualification. HB 2415 was held. The Speaker closed by praising the caucus for its budget work, saying the package delivers tax relief, protects vulnerable populations and public safety, and reflects months of Republican negotiations, and the meeting adjourned to the floor.

Transcript Highlights:

• The state's overall budget condition is tight.
• As it relates to CSU's core operations, for the governor's budget in 2026, the governor's budget provides
• In addition, the governor's budget maintains the ongoing General Fund amount adopted in the 2025 Budget
• maintenance, just given the overall budget outlook.
• the 2025-26 and the 2026-27 budget year.

Keywords: 988, house, all

Transcript Highlights:

• have two budgets we have the general fund budget and the education general fund budget and the education
• general fund budget and the education budget and the special order for today budget and the special
• budget I hope that we the general fund budget I hope that we the general fund budget I hope that we have
• budget and then need to be in the budget budget and then need to be in the budget budget and then need
• I keep my because I keep the budget I keep my because I keep the budget I keep my budgets from year

Bills: HB 9, HB 22, HB 908, HB 1392

Keywords: property tax, ad valorem tax, tangible personal property, income-producing property, business personal property, tax exemption, local government finance, appraisal district, chief appraiser, rendition statement, property tax relief, small business, commercial property, leased property, related business entity, unified business enterprise, tax situs, Texas Tax Code, local taxing unit, constitutional amendment

Transcript Highlights:

• That are going to have potential ramifications for our, our budget when you consider that our budget,
• budget.
• So that budget resolution.
• They've got to come up with all the budget cuts.
• Discretionary budget versus the defense budget where they're kind of, well, they're breaking their own

Transcript Highlights:

• </c> tight budget year. tight budget year.
• Speaker, the proposed budget that we just voted on is a flawed budget.
• Speaker, the proposed budget that we just voted on is a flawed budget.
• Speaker, the proposed budget that we just voted on is a flawed budget.
• Speaker, the proposed budget that we just voted on is a flawed budget.

Keywords: 1189, house, all

Transcript Highlights:

• </c><00:03:41.920><c> request</c> bianium, no corrective budget request bianium, no corrective budget
• </c> regarding our budget requests. regarding our budget requests.
• That's what your budget is for, provided by the state budget and the federal 66% match.
• </c><00:07:57.520><c> So</c> budget and the federal 66% match. So budget and the federal 66% match.
• </c> um any additional budget to cover that. um any additional budget to cover that.

Keywords: Meeting Start 00:00:00 Attendance Roll Call 00:00:10 Office of the Attorney General 00:00:58 Office of Homeland Security 00:17:39, 958, all

Summary: The House Budget Review Subcommittee on General Government heard presentations on several Attorney General and Homeland Security budget items. Amy Burke of the Department of Child Support Services said the program inherited a structural shortfall of more than $13 million after the transition from CHFS, including about $14 million in federal child support incentive funds that had been used to cover core operating costs and county attorney contracts. She explained that federal law requires incentive funds to supplement, not supplant, baseline services, and said the Attorney General’s budget request seeks general fund support to replace that gap and help balance the program going forward. Members asked for clarification on the misuse of the funds, the size of the shortfall, and whether the requested money would be unrestricted; staff said the intent is to use it as a contract offset for core services. Commissioner Rich Ferretti then presented the Department of Criminal Investigations’ request for additional staffing and a Western Kentucky Digital Forensics Lab. He said DCI wants one additional special victims unit investigator and one digital forensic examiner to handle increasingly digital cases involving child exploitation, sexual assault, human trafficking, and technology-facilitated abuse. He also described plans for a lab in Mayfield, co-located with the new Mayfield Police Department facility, to reduce travel time, speed forensic processing, and improve access for rural communities. Committee members responded positively and asked no substantive questions. Finally, the Office of Homeland Security outlined Kentucky’s Next Generation 911 project. Officials said the current 911 system was built for landlines, while most calls now come from mobile devices, and the upgrade will add precise location routing plus text, photo, and video capability. Shelley Clark described the funding model, including wireless subscriber fees and a dedicated tech fund, and reviewed progress on mapping, vendor selection, and migration to the new platform, with completion expected by July 2027. Members asked about local maintenance costs and the impact on rural areas; officials said maintenance is local but supported in part by collected funds, and implementation will not be delayed for rural localities. The meeting concluded with no votes or formal actions taken.

Transcript Highlights:

• Even though the Governor's budget proposal is balanced for the 2026–27 budget year based on the borrowing
• the limited budget condition.
• We do have a structural problem with our budget. We do have a structural problem with our budget.
• The governor's budget includes $10 million in this 2026–27 budget for reducing climate impacts on disadvantaged
• The governor's budget includes $10 million in this 26, 27 budget for reducing climate impacts on disadvantaged

Summary: The Senate Budget Subcommittee on Resources, Environmental Protection, and Energy convened for its first hearing and heard an overview from the Legislative Analyst’s Office and the Natural Resources Agency. The LAO emphasized California’s strong current revenues but warned of a structural budget problem, projected out-year deficits, and the need for a high bar on new spending. It generally supported the administration’s Proposition 4 spending plan as reasonable and consistent with bond requirements, while urging legislative oversight and caution about using special funds and adding ongoing commitments. Secretary Wade Crowfoot responded with an overview of climate, wildfire, water, coastal, and conservation challenges and highlighted progress under the Newsom administration, including clean energy growth, wildfire resilience investments, land conservation, tribal co-management, and outdoor access initiatives. He also discussed federal staffing cuts affecting California’s response capacity and said the state has had to fill gaps in flood forecasting, land management, and park access. Members then questioned the secretary about the Delta conveyance tunnel and broader water reliability issues. Crowfoot said the project remains important, is being pursued as a beneficiary-pays project, and is moving through the State Water Resources Control Board’s permitting process, while also stressing that it is only one part of a broader water strategy that includes levee strengthening, subsidence, groundwater storage, recycling, and conservation. Senators also raised concerns about permitting delays, invasive species, and the impact of position cuts on agency capacity; Crowfoot said streamlining is needed but that staffing remains essential. The committee then moved to the Department of Parks and Recreation, where Director Armando Quintero described the state park system, tribal agreements, wildfire and deferred maintenance work, and outdoor access programs such as the State Library Park Pass and Adventure Pass. The LAO recommended rejecting the proposed ongoing $6.75 million General Fund transfer for the library park pass, arguing it did not meet the high bar for new ongoing spending, but several senators strongly supported the program as a low-cost way to expand access. Members also pressed Parks on reservation system problems and campsite no-shows. Department staff said they are updating website guidance, working with the reservation vendor, and implementing new no-show and reservation-modification rules effective July 1, including penalties for repeated no-shows and immediate reopening of vacant sites. The committee then heard a low-cost accommodations proposal, which Parks said would fund planning and construction at several sites using Proposition 68, reimbursements, and donations; the LAO said it had no concerns. Finally, the new director of the Department of Fish and Wildlife, Megan Hurdle, introduced herself and outlined the department’s mission, staffing, service-based budgeting, and Proposition 4 requests, including funding for salmon genetic tagging, hatchery repairs, and public access improvements. She said the department is focused on biodiversity, permitting streamlining, law enforcement, and human-wildlife conflict prevention, and noted that the agency is still updating its service-based budgeting analysis to identify gaps and priorities.

Transcript Highlights:

• The only reserve we had in the budget was to just cover unanticipated expenses in that budget year.
• And that, of course, makes the budget more difficult to manage and more difficult to enact a budget that
• I'm the budget director at the California Budget and Policy Center.
• Budget Center?
• So we’re talking about balancing our budget, but what happens when the cities and counties, their budgets

Keywords: 987, senate, all

Transcript Highlights:

• </c> last year's budget. last year's budget.
• </c> your budget bill. your budget bill.
• Can't do that in the budget<01:42:04.639><c> bill.</c> budget bill. budget bill.
• that we fund our budget, call it budget balancers.
• </c> our budget, call it budget balancers. our budget, call it budget balancers.

Keywords: 916, all

Transcript Highlights:

• enacted budget.
• President, the bill before us is a budget extender.
• >> A debate only the budget. >> Through you, Mr.
• OUT, THE BUDGET IS OVER A MONTH LATE.
• This budget extender does not speak to that.

Keywords: 993, senate, all

Summary: The Senate met on May 6, 2026, approved the prior journal, and accepted a Rules Committee report advancing the government appropriations bill to third reading. The chamber then took up the tenth budget extender, which sponsor Senator Serrano said would keep state government operating through Monday, May 11 and contained $482 million in new spending, bringing the total across extenders to $20.3 billion. In questioning, Senator O’Mara and Senator Helming pressed Serrano for details on the reported $268 billion budget deal, policy outcomes, revenue raisers, and whether local governments, schools, and rural health programs would receive certainty; Serrano said final budget bills were not yet in print and declined to speculate on unresolved issues. The extender passed 60-1, with Senator Weik voting no. The Senate also adopted several previously adopted resolutions honoring the North Tonawanda High School girls varsity basketball team, the Tappan Zee High School girls basketball team, and SUNY student Chriss-Ann Pryce. Members praised the teams’ state championships and Pryce’s academic and leadership achievements through the Educational Opportunity Program. The chamber then returned to legislation and passed a bill designating May 9 as Overdose Awareness Day in New York; Senator Fernandez said it recognized the harm of overdose and the need to continue funding harm reduction and recovery services. Additional bills passed included a statewide domestic violence lethality assessment measure, with Senators Murray, Rolison, Webb, and Ramos describing it as a tool to identify dangerous situations and prevent fatalities; a mental health insurance bill limiting step therapy/prior authorization for serious mental health medications, supported by Senator Fahy; and measures on education, real property tax, election law, general business law, kitchen incubator economic impacts, public buildings, state finance, and mental hygiene. Several bills drew recorded opposition, including the real property tax bill and the election law and general business law measures. The Senate concluded by adjourning until Monday, May 11 at 3:00 p.m., with intervening days designated legislative.

Transcript Highlights:

• So, when we're talking about the budgets, we're not talking about the whole agency budget.
• So let's get into the agency's budget request.
• You've got your prior year operating budget, which is your FY 26 budget at $1.3 billion.
• , but this isn't increasing their budget.
• You know, it's something that we're meeting with agencies on budgets right now, discussing their budget

Transcript Highlights:

• the budget?”
• So the way the budget is working is that the budget of the Maritime Academy...
• So the way the budget is working is that the budget of the Maritime Academy, formerly Cal Maritime, is
• discussions and our budget deliberations and budget decisions from the Assembly in the coming months
• before we adopt a budget.

Summary: The joint Assembly Higher Education and Budget Subcommittee hearing focused on the future of the California State University system, with opening remarks emphasizing CSU’s major role in California’s economy, workforce, and degree production. Chairs and members said the hearing was intended to inform 2026 budget decisions and to examine three main issues: declining enrollment at some campuses, cost controls and possible consolidation, and oversight of recent state investments at campuses such as Humboldt and Sonoma. The meeting was briefly delayed by microphone and sound problems before reconvening. The first panel featured CSU Academic Senate Chair Dr. Elizabeth Boyd and Cal State Student Association Vice President Katie Karam. Boyd urged the Legislature to protect academic freedom, strengthen faculty governance, provide stable ongoing funding, end unfunded mandates, support student food and housing security, fund flexible course schedules, improve transfer systems such as ASSIST, avoid over-centralizing academic programs, protect immigrant students, and expand intersegmental collaboration. Karam said students are feeling the effects of budget shortfalls through fewer course sections, reduced advising and services, longer time to degree, and tuition pressure, and she called for transparency, meaningful student involvement in budget decisions, and sustained state investment rather than cuts that harm the student experience. The second panel covered enrollment management and included CSU Chancellor’s Office and campus administrators from Chico State, Cal State L.A., and San Diego State. Dr. Delcy Perez said CSU Forward and the new systemwide enrollment plan are aimed at expanding access, aligning programs with workforce needs, and increasing resident enrollment; she reported systemwide enrollment gains and strong application numbers, including a direct-admissions pilot that expanded from Riverside to more campuses. Campus representatives described local recruitment and retention strategies, including early outreach to high school students, community college partnerships, guaranteed admission programs, and expanded advising and student support. San Diego State highlighted record enrollment and high demand, while Cal State L.A. described efforts to recover from impaction and rebuild enrollment. Members pressed CSU officials on the accuracy of enrollment data, the gap between funded targets and actual enrollment, and the system’s reallocation formula. CSU staff explained that campuses below target will see a 5% ongoing reallocation beginning in 2026-27, with one-time reserve funding also being directed to campuses that can grow, and that fiscal health reviews have been completed for 21 of 22 campuses. Legislators also asked about turnaround plans required by the budget act; CSU said those plans are being developed and will be shared in the spring after campus consultation. No formal votes were taken.