Transcript Highlights:

• But for the first time now, I have to That you used in the budgeting process.
• But those were the assumptions that we used in the executive budget process.
• But those were the assumptions that we used in the executive budget process.
• In the budget process, thank you, Mr. Chairman.
• So there's about $40 million that wasn't needed on the low-bid side.

Summary: The Budget Section approved the March 18 minutes and received an OMB update showing the general fund is still ahead of the budgeted starting point, but revenues through May are now about $76 million below the legislative forecast, driven mainly by individual income tax and sales tax shortfalls. OMB also reported the budget stabilization fund is above its cap, meaning a transfer to the general fund is expected, and reviewed oil price/production assumptions, noting continued volatility. Members asked about the income tax netting process, the sales tax decline, oil price discounts/premiums, natural gas taxation, and when the executive branch would present its revenue forecast. The committee then acted on several Emergency Commission requests. It approved, as a group, requests for federal mine reclamation funds for the Public Service Commission, an additional criminal investigator FTE and funding for the Attorney General’s office, and a DPI transfer for bridge software costs. It separately approved DPI request 2164 for $500,000 to support the food vendor program after debate over whether the program’s savings were known and whether the money was simply a pass-through. OMB also reported on federal grants, fiscal irregularities, tobacco settlement proceeds, budget guidelines for agencies, FTE pool usage, vacancy savings, and the DAPL settlement, noting the settlement funds had been deposited and that a deficiency appropriation may be needed later to cover remaining accrued interest. Tax Commissioner Brian Kroshus presented on the primary residence credit program, saying participation has grown sharply and that the current biennium will likely need about $431 million, roughly $22 million above the appropriation. He explained how the credit interacts with homestead and disabled veteran benefits, how the 3% property tax cap works, and why county valuations and mill rates vary. The committee also received a Legacy Fund/Budget Stabilization Fund report showing strong returns, and DOT Director Ron Henke received approval for two Flex Fund highway projects on ND 49 and ND 31. Henke also explained remaining Highway 85 funding and said the department is exploring uses for leftover state dollars. Finally, the Department of Mineral Resources reported on abandoned well plugging and site restoration, noting North Dakota remains in relatively strong shape compared with other states, and DPI began a presentation on gap funding tied to the 3% levy cap, reporting 24 districts received $1.8 million in the first year and projecting higher future needs.

Transcript Highlights:

• The Nursing Home Workforce Standards Board does have an exemption or waiver process for those who are
• <00:20:24.720> for<00:20:25.000> those exemption or waiver process for those exemption
• or waiver process for those who<00:20:25.400> are<00:20:25.600> at<00:20:25.799> risk
• <00:32:07.919> process<00:32:08.360> and<00:32:08.480> sign<00:32:08.679>
• a competitive bidding process and sign a competitive bidding process and sign a contract<00:32:09.279

Keywords: 1183, house

Summary: The House Committee on Human Services Finance and Policy met to approve prior minutes and then take public testimony on the governor’s budget recommendations for human services. The chair explained the hearing format and noted that DHS declined to testify. Much of the testimony focused on proposed reductions or caps affecting disability waiver services, nursing homes, and elderly waiver programs, as well as related fee and tax changes in the budget. Representatives of ARM argued that the governor’s proposal would cap inflationary adjustments at 2%, limit rate exceptions, cap billable days, and restrict individualized home supports, which they said would worsen workforce shortages, reduce wages for direct support professionals, and destabilize disability services. They said the package would cut about $600 million over four years and could lead to group home closures, higher turnover, and families losing access to local homes and services. Committee members asked about real-world impacts and future rate adjustments, and ARM responded that providers have already planned around expected 2026 rates, so a cap would create immediate budget and staffing problems. Long-Term Care Imperative testified against nursing home-related cuts, saying the budget would cap future rate increases, limit health insurance costs in rate setting, phase out closure-related agreements and incentives, and fail to fully fund the Nursing Home Workforce Standards Board. They estimated the nursing home provisions could amount to a $218 million cut over four years, or roughly $350 million when combined with other underfunding, and said every nursing home and bed in Minnesota would be affected. They also criticized the lack of an inflation factor in Elderly Waiver, a proposed 54% increase in assisted living fees, and possible changes to provider-assessed fine and penalty funds. Members asked about staffing and bed availability, and the testifiers said reduced funding would likely force more beds out of service. A later testifier, Dan Andre of the Minnesota Council of Health Plans, raised concerns about the DHS budget’s proposed increase in the HMO surcharge and about carving pharmacy and non-emergency medical transportation benefits out of managed care. He argued the tax increase would raise premiums for fully insured and Medicare supplement enrollees and that managed care coordination helps members access care and medications. The hearing also included one unrelated, disruptive testimony about the Minnesota Sex Offender Program and other agencies, which the chair redirected back to the human services budget. No votes or formal actions were taken beyond approving the minutes and receiving testimony.

Transcript Highlights:

• So, can you bid on it? I don't know. You'll have to ask her.
• You'll have to ask her if we can bid on it.

Keywords: 1204, all

Transcript Highlights:

• That was about $176 million ahead of the numbers that you used in the budgeting process.
• But for the first time now, I have to That you used in the budgeting process.
• But those were the assumptions that we used in the executive budget process.
• But those were the assumptions that we used in the executive budget process.
• So there's about $40 million that wasn't needed on the low-bid side.

Keywords: 908, all

Transcript Highlights:

• That was about $176 million ahead of the numbers that you used in the budgeting process.
• But for the first time now, I have to That you used in the budgeting process.
• But those were the assumptions that we used in the executive budget process.
• But those were the assumptions that we used in the executive budget process.
• So there's about $40 million that wasn't needed on the low-bid side.

Summary: The Budget Section met to approve prior minutes and receive a series of budget, revenue, and program updates from OMB, the Tax Department, DOT, DMR, and DPI. OMB reported that general fund revenues through May were about $76 million below the legislative forecast, driven mainly by individual income tax and sales tax shortfalls, though the biennium is still projected to end with a positive balance. OMB also reviewed oil price and production assumptions, the budget stabilization fund transfer above its cap, Legacy Fund performance, federal grant applications, fiscal irregularities, tobacco settlement proceeds, budget guidelines for agencies, vacancy savings, and the DAPL settlement, noting that most of the settlement funds had been deposited but a small amount of accrued interest would require a future deficiency request. The committee then considered Emergency Commission requests. It approved requests for Public Service Commission abandoned mine lands federal authority, an Attorney General FTE and related funding for criminal investigator work tied to the Office of Guardianship and Conservatorship, and a DPI transfer for bridge software costs. After discussion, the committee also approved DPI’s request for a $500,000 transfer for the food vendor program, despite questions about the program’s savings and cash-flow structure. Later, the Tax Commissioner presented the primary residence credit program, reporting that current biennium costs are expected to exceed the appropriation by about $22 million and explaining how the credit interacts with homestead and disabled veteran credits and the 3% property tax levy cap. The Legacy and Budget Stabilization Fund Advisory Board reported strong returns for both funds, and DOT sought and received approval for two flexible fund highway projects on ND 49 and ND 31. DOT also updated members on Highway 85 construction and said remaining flex fund dollars were essentially fully allocated. DMR reported on the abandoned well plugging and site reclamation fund, noting North Dakota’s relatively small orphan well inventory, current and projected fund balances, rising remediation costs, and a possible need to adjust the fund cap in future sessions. Finally, DPI outlined the new integrated formula gap funding program, explaining that it compensates school districts that cannot reach the assumed 60-mill local contribution because of the 3% levy cap; the first year’s gap funding totaled about $1.8 million, with future costs expected to grow.

Transcript Highlights:

• Landmark Development Services Company submitted a successful bid of $10 million, which DOA indicates
• programming, where our mission is to provide Wisconsinites an opportunity to access the legislative process

Keywords: 970, all

Transcript Highlights:

• And so we are currently kind of in negotiations and kind of a thought-processing communication phase
• The process is really separate from the DOC perspective, but from the DOC perspective, it's more of a
• We require them through the RFR process to only provide evidence-based program, or at least the core
• We require them through the RFR process to only provide evidence-based program, or at least the core
• So this tablet process is... It would be posted in day rooms.

Keywords: 995, all

Summary: The commission approved the July 11 minutes and then received a detailed follow-up presentation from the Department of Correction on facility footprint, mission-driven housing, programming, and technology. Commissioner Jenkins and Deputy Commissioner Peterson explained recent and planned facility changes, including the closures of Walpole, MCI Cedar Junction, and MCI Concord, the transition of the Plymouth Section 35/Mass Act program to Health and Human Services, the return of Bay State to DOC control for possible future use, and the Shattuck Hospital move to East Newton Pavilion. Members asked about operational capacity, the exclusion of support beds from occupancy figures, and the status of mothballed or unused facilities. Framingham drew particular attention because of its historically low women’s population and planned renovations; members raised concerns about the cost and the need to consider the broader women’s correctional system. A major portion of the meeting focused on mission-driven units and evidence-based programming. DOC described specialized units for health services, nursing care, clinical stabilization, mental health, residential treatment, protective custody, reentry, emerging adults, education, and substance use recovery, and noted that security threat group support beds are not used. Staff explained the distinction between general population beds and support beds, and between programming and treatment. They said core recidivism-reduction programs are based on risk-need responsivity and COMPAS assessments, with Spectrum Health Systems as the current vendor, and presented recidivism data showing lower reoffending among participants who completed programs such as violence reduction, criminal thinking, and the Correctional Recovery Academy. For women, they highlighted the pathways model at MCI Framingham, which combines trauma-informed, gender-responsive services, and reported strong outcomes for those engaged for at least 26 weeks. Members asked about how needs are identified and counted, how declinations are handled, and how the department distinguishes completion from ongoing maintenance. DOC said participation is voluntary, individuals are re-recommended over time, and completion is recorded in the system when criteria are met. They also discussed educational supports for learning disabilities and trauma, including IEP/504 coordination, tutoring, and a new school psychologist for testing. Questions were raised about family reunification programming, and DOC pointed to family-focused services, mediation, Read to Me Mommy, and the Brave unit for young fathers. Sheriff Cabral and Sheriff Cochie praised the presentation and emphasized the importance of family reunification and the realities of trauma in incarcerated people’s lives. The final section highlighted the expanded use of tablets across all facilities. DOC said tablets now support free phone calls, emails, video visits, surveys, educational content, medical updates, sick-call requests, and an earned-good-time app, while also helping with communication during facility closures and with ongoing programming. Staff said the tablets are used both for learning and recreation, and that more than half of the incarcerated population uses them monthly for educational purposes. Members discussed whether user feedback or “reviews” of programs could help increase participation, and DOC said tablet-based surveys make that possible. The meeting ended with general agreement that the department has expanded programming and technology substantially and is using them to support reentry, communication, and facility operations.

Transcript Highlights:

• allows you to select individual companies to make grants to without going through the procurement process
• <00:57:35.880> So, and that is exactly that process.
• So, and that is exactly that process.
• <01:18:45.200> Members,<01:18:45.600> any competitive bidding.
• Members, any competitive bidding. Members, any questions? questions? questions?

Keywords: 912, senate, all

Summary: The committee first took up SB 2045 relating to combat sports and recommended passage with SD1. Members adopted requested changes from DCCA and the boxing commission, including clarifying that the onsite medical professional must be a licensed physician, specifying when a deputy combat sports commissioner must file a written report, removing the combat sports registry language and ambulance requirement, clarifying promoter payment requirements, and requiring advance coordination with the nearest emergency room or hospital. The bill also makes technical amendments and sets an effective date of July 1, 2050. The measure passed unanimously among members present, with Senators Fukunaga and Kim excused. The joint hearing then considered SB 2187 relating to the Department of Business, Economic Development and Tourism. Testimony was brief and largely in support, and the committees agreed to pass the bill with SD1, making technical non-substantive amendments and changing the effective date to July 1, 2050. The committees voted to adopt the recommendation, with members present voting aye and some senators excused. A longer portion of the hearing focused on several economic development measures, including SB 2072 on tourism, SB 3049 on a trade-oriented production capacity grant program, and SB 3166 and SB 3167 involving technology development and the blue economy. SB 2072 drew questions about cost, benefit, and the practicality of promoting Michelin-star restaurants in Hawaii. SB 3049 received broad support from DBEDT, HTDC, chambers, and industry groups, but members questioned whether a new grant program was needed, why DBEDT could not do it without legislation, and whether the state should instead use existing entities like HTDC; the discussion also covered matching funds, likely beneficiaries, and administrative capacity. SB 3166 and SB 3167 were supported by technology and ocean-sector witnesses who said the state needs coordinated planning, specialized expertise, and support for advanced manufacturing and ocean innovation, but members raised concerns about relying on third-party consultants, duplication of existing public capacity, ethics, cost, and whether the work should instead be done by state staff or existing institutions. No final votes on the later bills were captured in the transcript excerpt.

Transcript Highlights:

• So we really were processing applications more than making applications.
• We were very attracted to that program and that process.
• So it's a lengthy process for clients to recognize.
• That was not an underwriting of these loans; it was a processing.
• You know, in advancement and in the process of being developed. Are we...

Transcript Highlights:

• SNAP has a little bit of a different eligibility process.
• SNAP has a little bit of a different eligibility process.
• SNAP has a little bit of a different eligibility process.
• So when we have to actually process.
• There will have to be more individuals in order to process and help process those applications, those

Keywords: Meeting Start 00:00:00 Attendance Roll Call 00:00:36 Department for Medicaid Services 00:01:44, 958, all

Summary: The House Budget Review Subcommittee on Health and Family Services met for an overview of the Department for Medicaid Services budget. Commissioner Lisa Lee and CFO Steve Beal described Kentucky Medicaid enrollment at about 1.4 million members, including more than 600,000 children, and said the agency’s 2025 total budget was $20.6 billion. They reviewed enrollment trends before, during, and after the COVID-19 public health emergency, noting that redeterminations begun in 2023 reduced enrollment from its peak but that total membership remains above pre-COVID levels. They also explained the difference between the fee-for-service population, which includes long-term care and waiver members, and managed care members, and gave examples of the kinds of services and diagnoses seen in each group. A major focus was the governor’s recommended Medicaid budget and the department’s forecast process. Lee said the budget is split into benefits and administration, with benefits covering fee-for-service services, managed care capitation, transportation, and Medicare premiums, while administration covers contracts, personnel, operating costs, and IT-related advanced planning documents. She said the department uses a consensus forecasting group and actuary input, and that its forecasts have been within 1% of actual spending in recent years. The department also said the governor’s budget includes new waiver slots to address waiting lists, a 2% staff COLA, and a 10% phase-down on state-directed payments beginning in January 2028. Much of the discussion centered on House Resolution 1 and the funding needed to implement its Medicaid-related provisions, including community engagement requirements, six-month redeterminations, and future cost sharing. Lee said the department requested about $35 million in total funds for fiscal 2027, including about $8.2 million in general funds for system changes to the integrated eligibility system, claims processing, notices, and monitoring; and about $11 million in fiscal 2028 for ongoing maintenance, with about $1.6 million in general funds. She said the department expects to seek federal APD matching funds for the IT work. In response to questions, she explained that community engagement would apply to Medicaid expansion members, with qualifying activities including work, school, volunteering, or equivalent income, and that certain groups such as pregnant women, children, caretaker relatives, and some people with chronic disease or substance use disorder would be excluded. She said the department identified roughly 70,000 expansion members who could be subject to the requirement. No votes or formal actions were taken.

Transcript Highlights:

• And finally, decertification process.
• And finally, decertification process.
• Hey, Doc Kamatsu. the decertification process. I'm the decertification process.
• decertification process decertification process I<00:51:38.040> don't<00:51:38.240> think
• have bid on the RFP. have bid on the RFP.

Keywords: 912, senate, all

Summary: The committee first took up gubernatorial message nominations. Margaret Jackson was heard for reappointment to the State Council on Mental Health, where she said her lived experience with family members facing schizophrenia, houselessness, and substance use issues motivates her service. Andrew Savaiano was heard for the Juvenile Justice State Advisory Council and said he wanted to continue elevating youth voice and lived experience. Tao Yan was heard for the Board of Certification of Operating Personnel in Wastewater Treatment Plants and emphasized the importance of wastewater treatment to public health and the environment. The Department of Health testified in support of the nominations, and the committee later adopted chair recommendations to advise and consent to all three nominations, noting Senator Favela’s excuse and no recorded objections. The committee then heard HB 1853 relating to dementia. Testimony was overwhelmingly in support from state agencies, advocacy groups, caregivers, and individuals with lived experience, including a person living with Alzheimer’s and his caregiver spouse, who described the value of early diagnosis and coordinated support. Supporters said the bill would expand memory care navigation and access, especially on neighbor islands and in rural areas, and help families connect to resources earlier. One member raised concerns about the cost and scale of the proposed program, asking about the number and cost of dementia specialists and noting broader budget pressures, but the bill remained under discussion with no final action shown in the transcript. The committee also heard HB 1591 relating to health care, which would expand the preceptor tax credit to additional health professions, including physician assistant students and PAs, with testimony in support from nursing, public health, medical, and provider organizations. Supporters argued the measure would help address workforce shortages and improve training opportunities for local and economically disadvantaged students. A committee member asked about the aggregate cost of the credit and whether the existing credit had been fully utilized; the chair noted the bill was being kept narrower than broader proposals because of fiscal concerns. The transcript then moved to HB 1961 relating to health care access near facilities, with supporters arguing it protects access to legal reproductive health care and opponents saying it is unnecessary, vague, and burdensome on free speech and protest activity. No final vote on the bills appears in the excerpt provided.

Transcript Highlights:

• Maybe you can take a stab at this, but what would be the process if we grant this authority to issue
• What would be the process before they actually issue it? Yeah, that's a really good question.
• What would be the process before they actually issue it? Yeah, that's a really good question.
• What would be the process before they actually issue it? Yeah, that's a really good question.
• of what I respect to be a process of what I respect to be a process already<01:08:26.000> in<

Keywords: 910, house, all

Summary: The committee first heard House Bill 707, which would create a state income tax deduction for contributions to Hawaii 529 college savings accounts and conform state law to federal changes allowing 529 funds to be used for K-12 expenses. The Department of Taxation said it could administer the bill as written. The Hawaii State Council on Developmental Disabilities supported the measure but asked that ABLE accounts be included and that the program title be changed; the Department of Taxation indicated the title issue could be a problem because the bill’s expanded purpose may not fit the current program name. No vote was taken. The committee then heard House Bill 617, which would fund a Bachelor of Science in Nursing program at the University of Hawaiʻi Community Colleges. UH Community Colleges supported the bill, and Maui nursing staff testified that faculty recruitment is challenging but manageable, clinical placements are available, and the campus already has a statewide RN-to-BSN pathway; they said the new program would create two tracks, including a four-year BSN option. Members also heard support from several organizations, including the Office of Hawaiian Affairs, nursing groups, and health care associations. No action was taken. Next were several UH-related measures. HB 718 would fund faculty and staff positions at the John A. Burns School of Medicine; the dean and other supporters testified in favor. HB 1279 would create a medical education liaison position tied to Project ECHO; the Attorney General raised constitutional concerns about statewide concern and grant standards, while an individual witness supported the concept but suggested the bill should focus on liaison/support functions rather than program administration. HB 1169 would consolidate conference center revolving funds, and HB 1168 would authorize up to $800 million in UH revenue bonds; UH’s CFO said both were procedural/housekeeping measures and supported them. On HB 1168, members questioned debt service, possible uses, and whether deferred maintenance would be included; the CFO estimated annual debt service could be about $33 million to $41 million at current rates, said likely uses could include student housing and research facilities, and said deferred maintenance was not the current strategy. The CFO also explained that revenue bonds require both legislative authorization and a Board of Regents resolution approving the project and amount. Finally, the committee heard HB 548, which would authorize revenue bonds and appropriations to acquire the St. Francis School campus for UH Mānoa. UH supported the bill but noted the property is privately owned and not known to be for sale. A supporter described the site as a unique 11-acre parcel contiguous to the main campus and urged the committee to seize the opportunity for future generations. No vote or final action was taken on the bills in the transcript.

Transcript Highlights:

• responded to that RFP and we won the bid responded to that RFP and we won the bid to<00:15:23.760
• <00:15:27.839> Um typically the process that we follow.
• Um typically the process that we follow.
• , longer term and um more of a process, longer term and um more of a process, right?
• <01:11:29.040> and through their granting process and through their granting process and procedures

Keywords: 910, house, all

Summary: The Committee on Culture and the Arts held an informational briefing on May 22 with the Hawaii Arts Alliance, the State Foundation on Culture and the Arts (SFCA), and the King Kamehameha Celebration Commission. Chair Capella said the purpose was to better understand the organizations’ work and strengthen relationships ahead of the interim and next session. The Hawaii Arts Alliance, led by Executive Director Gay Humphrey, described its mission to enrich Hawaii’s cultural fabric through arts education, advocacy, and community engagement, and highlighted its history tied to Alfred Price, including the creation of Hawaii’s 1% for art law and the alliance’s 45 years of service. The alliance outlined its current work, including administering SFCA-funded statewide programs such as Artist in the Schools and the new folk and traditional arts program, with 34 teaching partners serving more than 100 public and charter schools and Kumu Hawaii as the single grantee for traditional weaving instruction. It also discussed Arts First Partners, the incubation of Arts at Mark’s Garage, expanded advocacy efforts supported by Creative West grants, and new multi-year philanthropic support from the Hawaii Community Foundation and Atherton Family Foundation. The alliance said it is launching statewide listening sessions and an arts advocacy training program, and noted that most SFCA funds pass through the alliance to program partners, with the organization retaining 10 to 14 percent for administration. SFCA Executive Director Karen Ewald then described the agency’s role as the state arts agency, its strategic planning process, and its main programs, including Art in Public Places, the Capital Modern museum, Artist in the Schools, apprentice mentoring grants, community arts grants, the Hawaii State Poet Laureate program, a statewide cultural extension program, and the Hawaii Open Arts Program. She said SFCA has 21 staff with one vacancy, is awaiting a federal NEA partnership agreement, and is considering new revenue streams such as a cultural trust. She also noted that the King Kamehameha Celebration Commission was recently attached to SFCA, which has improved coordination and allows SFCA to provide funding for conservation and upkeep of the King Kamehameha statues statewide. No votes were taken; the meeting was informational only, with questions deferred until after the presentations.

Transcript Highlights:

• They process your disability compensation claims.
• There are certain things you can do to move the process along so you're not bidding, or sorry, designing
• , then bidding, then building.
• processing more claims than ever.
• Getting those claims processed faster, absolutely.

Keywords: veteran services, Secretary Collins, healthcare provisions, contract cancellations, transparency, accountability, committee meeting, legislation

Summary: During this committee meeting, various bills were discussed with a specific focus on veteran services and healthcare provisions. Notably, the cancellation of critical contracts under Secretary Collins sparked significant debate, with representatives emphasizing the adverse impact on veteran care. The meeting featured testimonies from veterans and stakeholders who expressed their concerns regarding the potential fallout of these cancellations, demonstrating the urgency of transparency and accountability in management decisions. Discussions also delved into various legislative proposals aimed at improving services for veterans amidst these challenges.

Transcript Highlights:

• They were just ordering it, uh, ultra-processed food, flash frozen, thawing it out, and, uh, instead
• Uh, we don't have any processing facilities.
• That is going to help us make that process more effective and hopefully some of those savings can help
• Uh, another issue, livestock processing shortages.
• a year for processing dates.

Transcript Highlights:

• They have given me a bit of a headache here, but I think I understand the process.
• I mean, this is a fund; it's a process.
• I don't believe it's fair to New Mexicans and the process of raising...
• Is this bill providing for a change in that process? Madam Chair?
• , through the adjudication process.

Transcript Highlights:

• different governmental agency reports that are due to be presented to the legislature, making sure that process
• Is there a process right now to track?
• Can you walk a military family through this process?
• It's not going to have to go through a process for them to be notified that they're clear to now vote
• So, really, when we were looking through all the petition processes, we have the others set at 90 days

Keywords: 914, all

Transcript Highlights:

• developing models for potential therapeutics to create new specific chemical structures to take the process
• Rural Affairs; HB 2770, Home Confining; HB 2771, Communities, Judiciary; HB 2776, Private Property Process
• ; HB 2780, Due Process.
• HB 2780, Due Process; HB 2791, Cultural Affairs; HB 2792, Annexation, Government; HB 2794, DOR Transactions
• 2848. 8 age 6 and lawful mass and 2867 licenses not proof of citizenship, 2873 competitive sealed bidding

Keywords: 1182, all

Transcript Highlights:

• That’s the current verification process.” “That’s the current verification process. Yes.
• It's contemplated that you're going to have the I-9 process and everything as part of the hiring process
• Well, that's the on-boarding process. That's the on-boarding process. So that's current. Correct.
• Do they also have the two-layer process? What do you mean about the two-layer process?
• And so there's that process.

Keywords: 994, senate, all

Transcript Highlights:

• Lastly, we recommend continuing monthly. the budget process are warranted.
• Are you saying that so the initial bids out were there was no responsive bids, so we are having to pay
• All of those exception processes are not complete.
• One is the reasonable accommodation process.
• That is what our process is for.

Summary: The subcommittee heard an informational update on the state’s generative AI implementation and related oversight. Administration officials said several proof-of-concept projects have moved into minimum viable product phases, including work at CDTFA and Caltrans, and that CDPH has a May Revision request for up to $8 million to scale up its healthcare facilities inspections project. The Legislative Analyst’s Office urged the administration to publish a report on lessons learned from each POC and recommended limiting the new generative AI approval process to a pilot through the first two rounds of projects, with continued monthly meetings and stronger legislative oversight. Members pressed for more transparency and questioned why the CDPH request was not included in January; the administration said the cost estimate was not available then and that only one project is seeking additional resources beyond existing departmental budgets. The committee then reviewed a proposed $400 million loan from the Labor and Workforce Development Fund to the General Fund. Finance and the Labor Agency said the fund has grown because civil penalty revenues have risen sharply, and the loan would be repaid in 2029-30 with provisional language allowing earlier repayment if needed. The LAO agreed the fund could support the loan but warned that recent PAGA reforms may reduce future revenues. Public commenters, including labor and community groups, argued the money should instead support labor-law enforcement and outreach programs such as CWOP, and urged rejection of the loan. Members also heard a Department of Industrial Relations request for $19.1 million for phase two of Public Works Information Technology System Enhancements, which officials said will support labor-law enforcement and apprenticeship registration. The department said the project was delayed because a prior procurement did not result in a contract award and that completion is now expected in October 2026. The committee then took up an EDD Next reappropriation technical adjustment to extend UI fund spending authority through June 30, 2026; the LAO said the request was fine but again raised concerns about oversight of the larger modernization effort, which EDD said now totals more than $660 million and is expected to continue through 2029. Finally, the committee discussed DGS’s request for new parking facilities near the May Lee Building and a trailer bill shifting statewide telework policy language from DGS to CalHR while also expanding NDI eligibility for certain CEA employees. The LAO said the telework trailer bill should likely go through the policy committee process instead of budget, and union and employee witnesses strongly opposed it, arguing it would undermine bargaining rights and could be used to narrow telework. In a separate item on the governor’s return-to-office order, administration officials said departments are being directed to move to a four-day in-office expectation starting July 1, 2025, but they had no statewide cost estimate yet because departments are still assessing vacancies, exemptions, and space needs. Members criticized the lack of analysis and said the state should have clearer numbers before moving forward.