Transcript Highlights:

• Well, thank you to our budget chair.
• In response to a request from Madam Chair and Madam Chair, the public comment In response to a request
• We did not look at the, again, the CARB doesn't play a role in the budget process and dedicating budget
• And we are relying on that number, and I think that the senator's request is a reasonable request.
• And we are relying on that number, and I think that the senator's request is a reasonable request.

Keywords: 987, senate, all

Transcript Highlights:

• It's green, but it should say under budget.
• It's green, but it should say under budget.
• So 41% under budget and more than 100%. should say under budget, so 41% under budget and more than 100%
• It is through the base budget for Human Services.
• Testimony did caution that an RFI is less specific than a request for proposal, and a formal request

Summary: The committee approved the March 26 minutes and then received a quarterly update on major IT projects from NDIT. Staff reported the portfolio included 116 major projects totaling about $546 million, with the overall portfolio under budget but slightly behind schedule. They reviewed projects over the 20% variance threshold, including an Industrial Commission grants management system and DOT’s roadway pre-construction replacement, and then heard startup and closeout reports from HHS, OMB, DPI, and DOT. Several previously troubled projects were closed, including HHS bed management, vital records modernization, and DOT roadway capital planning; some projects finished under budget and ahead of schedule, while others were significantly behind schedule or over budget but were now closed or being remediated. The committee also reviewed NDIT’s annual report, including service-fund financials, peer-state rate comparisons, records management, and customer satisfaction efforts. Members asked about how service-fund revenue and grant administrative charges are accounted for, how chargebacks work, and whether NDIT tracks customer satisfaction scores. NDIT said it does track CSAT-type measures in some service areas and has survey data, but it is not planning another customer survey this summer. Members encouraged more regular reporting of customer satisfaction, service-level metrics, and performance data to help guide future improvements. A major portion of the meeting focused on the state’s mainframe modernization effort. NDIT said the overall effort is still targeting about 2030, with multiple HHS and DOT projects underway and a $15 million tech-debt appropriation already removing some components. Staff described the main obstacles as data cleanup, complex integrations, limited staff capacity, retirements, and vendor constraints, and said they are seeking a vendor with modernization support in the next contract cycle. Members pressed for clearer accountability and faster progress, and NDIT and HHS emphasized that they are working jointly but need continued support and better tools. The committee then heard a cybersecurity update on NDIT’s statewide services and maturity assessments. NDIT explained that it provides vulnerability scanning, endpoint protection, security awareness training, threat briefings, and penetration testing, and that these services are tied to a cybersecurity maturity assessment based on CIS controls. Members questioned the sharp drop in participation since 2020 and whether the self-assessment should be mandatory or tied more strongly to StageNet access or insurance incentives. NDIT said participation is voluntary, but Enderf is now requiring annual assessments to keep a 4% insurance discount, and members discussed whether stronger requirements or audit authority may be needed. The meeting ended as the committee began a follow-up discussion on BEAD broadband connection costs and why some locations are much more expensive to connect than others.

Transcript Highlights:

• And we've We will submit that as part of our legislative budget request.
• I think all of us have submitted legislative budget requests that clearly align with our strategic plans
• I think all of us have submitted legislative budget requests that clearly align with our strategic plans
• So the current ECO list that we submitted, part of our legislative budget requests, included 31 projects
• Just wondering if they're requesting these things and you may not have the budget for these now, how

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

Transcript Highlights:

• Governor's proposed budget.
• Governor's proposed budget.
• Its total budget is $86.7 million. We are on time. We are on budget.
• We participate with most other funding entities in that we request budget adjustments through the normal
• finance budget analyst.

Summary: The Senate Budget Subcommittee on Corrections, Public Safety, Judiciary, Labor, and Transportation held a hearing focused on courthouse facility funding and the Governor’s budget proposals for the judicial branch. The Legislative Analyst’s Office outlined the state’s courthouse funding structure, including the Trial Court Facilities Act, the main facility funds, the fixed county facility payment, and the heavy reliance on General Fund backfill. LAO also explained that the state’s construction funds were depleted after large transfers and declining fine-and-fee revenue, leaving a backlog of roughly 80 construction projects and more than 22,000 deferred maintenance projects statewide. Members and witnesses discussed the long timelines for capital projects, the need for reassessments, and the impact of inflation, CEQA, and site acquisition delays. Judicial branch representatives, including Justice Hill, Judge Moorman, and Judge Tapia, testified that courthouses across the state face serious seismic, ADA, security, and maintenance problems. They described cost-cutting efforts in design and construction, but emphasized that many facilities are aging and unsafe, with examples from Los Angeles, Compton, Ukiah, and other courts involving flooding, elevator failures, asbestos issues, and closures that disrupted thousands of cases. Judge Moorman highlighted the Ukiah courthouse replacement as an example of a project that is on time and on budget and would improve access, safety, and community services. Judge Tapia stressed that deferred maintenance in Los Angeles County alone exceeds $1.4 billion and argued that preventive maintenance is fiscally prudent because emergency repairs and closures are more costly. Committee members pressed the panel on how priorities are set, whether caseload and population growth are adequately reflected, how quickly projects can be accelerated, and what level of funding would actually meet statewide needs. The Department of Finance and Judicial Council staff explained that the county contribution is fixed and not inflation-adjusted, that acquisitions require willing sellers and can be delayed by CEQA and market conditions, and that the Judicial Council’s prioritization process was based on 2019 criteria that may need updating. LAO cautioned that any new General Fund commitment would require tradeoffs with other state priorities and suggested the Legislature decide what level of funding it is willing to support. The committee also reviewed the Governor’s budget proposals for courthouse facilities, which include backfill for the construction fund, selected new construction and judgeship-related projects, and major facility modifications such as the Orange County Central Justice Center and relocation of Los Angeles courtrooms from the Spring Federal Building.

Transcript Highlights:

• Uh, first we'll talk about the capital budget process that MMB facilitates. Management and Budget.
• We did so for the 2026 capital budget in May of 2025.
• The and who were submitting requests.
• </c> requests on our website. requests on our website.
• </c><00:02:40.239><c> the</c> the budget forecast assumed the the budget forecast assumed the enactment

Keywords: 1183, house

Transcript Highlights:

• :07:16.240><c> request.
• Those next few rows contain information about the additional budget request that you asked us to come
• </c><00:08:50.800><c> uh</c><00:08:51.040><c> 73.3</c> additional budget requests. uh 73.3 additional
• budget requests. uh 73.3 million<00:08:52.560><c> in</c><00:08:52.800><c> fiscal</c><00:08:53.120><c
• try to do something as part of our biennial budget request to help these institutions. committee, uh

Keywords: 958, all

Summary: The committee met for its fifth and final Interim Joint Budget Review Subcommittee on Education meeting, but did not initially have a quorum and approved the minutes later when enough members were present. The Council on Postsecondary Education, represented by President Aaron Thompson and Vice President Bill Payne, opened with condolences for the UPS crash victims and then presented higher education budget recommendations for the 2026-2028 biennium. Thompson emphasized the return on investment from state support for higher education, citing gains in retention, enrollment, persistence, graduation, reduced time to degree, lower student debt, and expanded dual credit participation, while noting that affordability and access remain priorities. Payne outlined CPE’s operating funds request, including $43.3 million in the first year and $86.6 million in the second year for inflation adjustments, plus $30 million and $45 million for performance funding. He said the inflation request would apply across the board to institutions to offset rising costs, and that the KSU land grant match would not need additional funding because the state has already met the matching requirement. He also explained that state support for educating students has not kept pace with inflation over time, creating pressure on institutional budgets and tuition, though tuition increases have been held to historic lows in recent years. A major portion of the discussion focused on the performance funding model and how it affects smaller institutions. CPE proposed two approaches to address institutions that have received little or no performance funding, especially Kentucky State University and Morehead State University. The first approach would create a $20 million minimum distribution pool, providing $1.95 million to each university and $4.4 million to KCTCS, with the goal of giving smaller and rural institutions a base level of support. The second approach would provide direct appropriations totaling a little over $5.6 million to Kentucky State, Morehead State, and five community colleges that have not been receiving performance funding. Members, especially Representative Tipton and Senator West, questioned how the model had treated small schools over time, and CPE officials explained that the original small school adjustment was not large enough to prevent KSU and Morehead from effectively being left out of the distribution. No votes were taken.

Transcript Highlights:

• There's a budget. ...report that there was a budget.
• There's a budget. ...report that there was a budget.
• budget, right, and a budget request for next year.
• I can't speak to what the agency budget request will be. We go through the same processes.
• Agency budget requests will be.

Keywords: 904, all

Summary: The committee heard a State Auditor’s Office performance audit on OSPI’s school apportionment system, which distributes K-12 funding to districts. Auditors said the system and its underlying 2008-era infrastructure are outdated, unstable, inefficient, and at high risk of errors or failure. They also found weak controls over data input, documentation, oversight, and monitoring, with heavy reliance on a small number of staff and vendor knowledge. In limited testing of three districts, the system calculated 2023–24 funding correctly, but auditors identified small discrepancies between state budget inputs and underlying statutory language and said broader system risks remain unresolved. JLARC members asked about the scope of the district testing, whether smaller districts face greater risk, the meaning of the funding discrepancies, and whether the system could support a future change to a simpler per-student funding formula. Auditors said the discrepancies were small but could compound into millions statewide, and that the audit did not evaluate broader policy questions or alternative system owners. They recommended OSPI modernize or replace the system and address current control weaknesses while the new platform is developed. OSPI officials largely agreed that the current platform needs replacement and said a feasibility study completed in 2024 found the system at catastrophic risk of failure. They clarified that the Legislature had approved up to $16 million in the state IT pool for the project, but that funding is released through gated oversight and not all of it had yet been appropriated for the current biennium. OSPI disputed the auditor’s characterization of some rounding and budget-law issues, saying the calculations were consistent with agency rules and legislative inputs, and explained that some manual workarounds are used to handle newer statutory requirements. One member of the public testified in support of modernizing the system and strengthening controls. The committee then adjourned.

Transcript Highlights:

• requests requests um<01:07:24.319><c> annually.
• budget request.
• budget request.
• budget request.
• The General Assembly appropriated $50 million of the requested $147 million in the previous budget, and

Keywords: Meeting Start 00:00:00 Attendance Roll Call 00:00:05 Approval of Minutes 00:01:48 Welcome New Members 00:02:03 Information Items 00:02:35 Review of Executive Branch Agency Plans 00:03:33 A. Cabinet for Health and Family Services 00:04:00 B. Kentucky Department of Education 00:17:03 C. Education and Labor Cabinet 00:29:33 D. Energy and Environment Cabinet 00:42:38 E. Finance and Administration Cabinet 0:53:30 F. Justice and Public Safety Cabinet 01:13:28 G. Personnel Cabinet 01:31:04 H. School Facilities Construction Commission 01:41:39, 958, all

Summary: The meeting was the first of the year for the Capital Planning Advisory Board. Members were called, a quorum was confirmed, new co-chairs and members were welcomed, and the board approved the prior year’s meeting minutes. The chair also reviewed the capital planning timeline, packet organization, and the list of agencies that submitted plans but would not testify. The Cabinet for Health and Family Services presented first, outlining priorities centered on public safety, protecting existing infrastructure, preventive maintenance, and improving service delivery. Its major requests included a $21 million maintenance pool for 14 campuses and 175 buildings, phase 2 construction funding for a new public health laboratory, an 18-bed psychiatric hospital for children and adolescents with severe mental health needs, and several projects at Western State Hospital, Western State Nursing Facility, Hazlewood, and Oakwood. Members asked about the youth facility’s relationship to a separate DJJ project, vacant buildings, the high per-bed cost of the children’s hospital, and how the cabinet determined the need for the youth facility. CHFS said the youth project would be a separate facility serving high-acuity youth, the cost reflected the specialized nature of the unit and an 18-bed cap, and the broader youth plan also includes prevention, in-home services, and coordination across agencies. The Kentucky Department of Education then described projects for its three state-operated facilities: the Kentucky School for the Deaf, the Kentucky School for the Blind, and the FFA leadership training center. It requested additional funding for the FFA classroom and activity building after bids came in higher than expected, plus funding for a new education finance application system to support SEEK budgeting. Other priorities included a maintenance pool, FFA pool renovation, electrical upgrades, campus education enhancements, lighting improvements, safety and security work, door and window replacements, and HVAC maintenance. Members asked about student outcomes, the size of the FFA pool, and construction cost assumptions; the department said it tracks students through the schools and short-course programs, the pool size figure may have been a typo, and current construction estimates are being adjusted upward because of inflation and supply-chain pressures. The Education and Labor Cabinet began its presentation with 12 priority projects, including a state labor exchange system to connect job seekers and employers, renovation of the McDow Vocational Rehabilitation Center, and a new adult education and family literacy management information system. The cabinet said the labor exchange would help match workers with employers at no cost, while the McDow renovation was needed because the 30-year-old facility has safety and code concerns. The adult education system was described as outdated and lacking adequate case-management and tracking capabilities.

Transcript Highlights:

• And so those requests are basically from the hiring and the budget and the salary adjustments that we
• So the $800,000 would be for the entirety of our budget. That's your entire budget. Exactly. Okay.
• So, so, uh... $800,000 would be for the entirety of our budget. That's your entire budget? Exactly.
• request.
• The committee will review your budget request, and it may or may not be the full recommendation going

Summary: The Appropriations Subcommittee on Public Safety and Judiciary heard presentations from several agencies. The Office of the Chief Medical Examiner reported full National Association of Medical Examiners accreditation, major improvements in turnaround times, staffing growth to 18 forensic pathologists, and expanded rural coverage, but warned that a flat budget would leave it short of funds by August. The agency requested $4.5 million in recurring funding for professional staff and operations, citing rising supply, transport, IT, and facility costs, and said failure to fund the request would cause a catastrophic collapse. Members asked about cremation fees, other revenue sources, and the consequences of not funding the request; the chair said the recommendation would be forwarded but not necessarily adopted. The Council on Judicial Complaints said complaints against judges have roughly doubled since 2018, with most complaints involving dissatisfaction with judicial rulings rather than misconduct. The council emphasized its goal of responding within 90 days, its new judges college to prevent ethics problems, and the cost of removal proceedings. It requested an additional $125,000 on top of its current $300,000 appropriation to cover rising operating costs, a lease increase, judicial college expenses, and salary adjustments. Senators asked about case prioritization, turnover, staffing, and whether a specific courtroom incident could be investigated; the director said it would be an appropriate complaint to review. The Oklahoma Indigent Defense System described heavy caseloads in rural counties, a mix of satellite offices and county contracts, and a need to reduce attorney workloads, especially in Norman and Lawton. It requested funding for six resource navigators, a project manager, direct-care support, eight additional attorneys, internal training, and continued county contract funding, while also discussing possible diversion programs and grant opportunities. The Department of Corrections requested increases for county jail backup per diem and ICON maintenance, highlighted contraband interdiction, centralized visitation, mobile check-ins, and tablet-based efficiencies, and discussed an ICE detention contract at Watonga that brings in monthly revenue and jobs but is not counted in the budget request. The Oklahoma Bureau of Narcotics and Dangerous Drugs presented a revised legacy-fund request tied to purchasing and remodeling a building shared with OSBI, saying the new plan would cost about $25 million total and save money compared with new construction; it also noted declining wire-transfer revenue tied to fewer grow operations and other enforcement changes.

Transcript Highlights:

• President, I request Senate Bill 1368 go over in its order.
• President, I request Senate Bill 720 go over in its order.
• I request a..." Thank you. Thank you. Mr.
• We often say the budget is a reflection of values.
• I request the legislative leave for Senator Ferry.

Summary: The Senate convened with prayer and the Pledge of Allegiance, then received committee reports from Banking and Insurance and Judiciary. Several leaves of absence were granted, and the chamber took up calendar and procedural motions, including re-referrals and tabling actions on multiple bills. House Bill 1102 and Senate Bill 911 were re-referred to Appropriations, House Bill 96 and Senate Bill 599 were briefly laid on the table and then returned to the calendar, and House Bill 2400 and Senate Bill 746 were also sent to Appropriations. The Senate later agreed to consider a discharge-related motion on minimum wage, but the motion to make it a special order of business failed by a vote of 23-27. On final passage, Senate Bill 1182 passed 50-0 after Senator Boscola described it as a modernization of the Board of Vehicles Act to address software-based vehicle features, warranty reimbursement, data protections, loaner vehicles, and related dealer/manufacturer issues; she noted amendments had been adopted to address stakeholder concerns. Senate Bill 1334 also passed, 29-21, after the Senate rejected Amendment A44049, which would have exempted certain cardiology technicians from licensing requirements if credentialed and supervised; supporters argued the exemption reflected existing practice and credentialing, while opponents said the bill was needed for patient safety and consistent oversight. Senate Bill 1372 passed 50-0, and House Bill 2426 was re-referred to Appropriations. The latter part of the session focused heavily on minimum wage and budget timing. Senators Tartaglione, Hughes, and Costa argued Pennsylvania had gone 20 years without raising the minimum wage and urged action on a House-passed minimum wage measure, while Senator Pittman said Republicans were willing to “meet in the middle” but opposed the House proposal as written. Members also discussed the state budget, the rainy day fund, and whether the Senate should remain in session; after debate, Senator Pittman’s motion to recess to the call of the President pro tempore was adopted 27-23, and the Senate stood in recess.

Transcript Highlights:

• the budgets.
• </c> driver of your discussion in the budget. driver of your discussion in the budget.
• request to the executive budget office, and a lot of work begins in earnest at that point.
• </c> 2027 general fund budget in a sentence. 2027 general fund budget in a sentence.
• </c> now we're back into the direct budget. now we're back into the direct budget.

Keywords: 924, joint, all

Transcript Highlights:

• We're requesting, and you'll see it in our budget requests, a second tranche of funding in this budget
• We're requesting, and you'll see it in our budget requests, a second tranche of funding in this budget
• We're requesting, and you'll see it in our budget requests, a second tranche of funding in this budget
• We're requesting, and you'll see it in our budget requests, a second tranche of funding in this budget
• We're requesting, and you'll see it in our budget requests, a second tranche of funding in this budget

Keywords: 912, senate, all

Summary: The joint Ways and Means and Government Operations committees received a biennium budget preview from Keith Regan, Comptroller and Director of the Department of Accounting and General Services (DAGS), who introduced department leadership and described DAGS’ broad responsibilities across accounting, public works, procurement, elections, archives, risk management, and other attached agencies. He emphasized that DAGS supports nearly every state department and cited ongoing workforce challenges, while noting progress in reducing the department-wide vacancy rate from 21% in 2023 to 17.7% in 2024. He also highlighted recruitment efforts, including new salary schedules for engineers and architects, job fairs, internships, and outreach to retiring federal employees. A major focus was modernization of the state’s aging financial systems, especially the 55-year-old FAMIS platform and the Enterprise Financial System (EFS) project. DAGS said it expects to release the RFP for the FAMIS replacement by the end of January and is seeking a second tranche of CIP funding, including $35 million, plus position augmentation and creation of a Business Transformation Office to manage EFS and future modernization work. The department also described major capital projects such as the Aloha Stadium Entertainment District, Wahiawā Civic Center, Kauaʻi Civic Center, and Ahuimanu Community Correctional Center, and reported that Public Works is managing 455 projects statewide valued at more than $2.5 billion. Other budget requests discussed included funding for cemetery operations, with DAGS asking for two positions and $1 million in operating funds to support maintenance of eight cemeteries; a $200 million ceiling increase tied to anticipated insurance proceeds for West Maui fire-related recovery and rebuilding; and several staffing and operating items for district offices and facilities. These included full-year funding for positions in West Hawaiʻi and East Hawaiʻi, support for a small business coordinator at the State Procurement Office, funding for cloud hosting and PeopleSoft licensing, six positions and staff augmentation for the EFS project, electricity costs, and security-related funding. DAGS also noted that two requested reductions totaled $7.9 million, including transferring the security contract to the Department of Law Enforcement and reducing nonrecurring expenses; members discussed whether some security funding should remain with or be moved to DLE, and DAGS said it would not object to that transfer. No votes were taken in the portion provided.

Transcript Highlights:

• The requests are very similar.
• That's not in our budget.
• Sanchez are really important as we're looking at the SIC budget and requests and are I just want to say
• I accept. the executive's budget request for the Lieutenant Governor's office.
• On the next page is a brief description of our budget request.

Keywords: 996, all

Transcript Highlights:

• </c> who are also supportive of this request. who are also supportive of this request.
• I know that it was a thin budget.
• And I know that it was thin, but we did not hear anything in our budget request about the need to do
• in our budget in your budget<00:30:34.799><c> request</c><00:30:35.360><c> about</c><00:30:35.600><c
• request about the need to do the budget request about the need to do the paid<00:30:36.960><c> family

Keywords: 1183, house

Transcript Highlights:

• current-year budget.
• The $150 million for the current-year budget, out of a $17 billion budget, can be found, whether it's
• The budgets never add up.
• For the record, I did not support her budget.
• Vice Chair requests to speak. Mr.

Bills: HB2011, HB2089, HB2090, HB2092, HB2477, HB2785

Keywords: individual income tax, subtraction, Arizona Revised Statutes, retirement benefits, adoption costs, charitable contributions, health insurance, premium payment, Arizona State Retirement System, contingent annuitant, long-term disability, benefits limitations, disability compensation, social security, retirement system, elected officials, ASRS, eligibility waiver, age 65, education savings

Transcript Highlights:

• Moving to page 7, under agency request.
• Corey Sharp, Legislative Budget Board.
• Moving to agency requests.
• Item two amends the capital budget.
• Number two is the corresponding capital budget rider adjustments. Under agency requests on page 37.

Bills: SB 1

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• And per the request of the 2024 Budget Act, we actually submitted a report on the impacts of Sackett
• And per the request of the 2024 Budget Act, we actually submitted a report on the impacts of Sackett
• The budget change proposal also requests $500,000 annually.
• The budget change proposal also requests $500,000 annually between 2026-27 and 2028-29 from the Waste
• Senate Budget Subcommittee No. 2 is adjourned.

Summary: The subcommittee met to discuss budget issues related to vacant positions across several natural resources and environmental departments, with no votes taken and all items held open for a future hearing. The Legislative Analyst’s Office and the Department of Finance explained the administration’s proposal to eliminate about 6,000 vacant positions statewide, including roughly 293 positions in the departments before the committee, as a way to capture salary savings and reduce flexible funding tied up in vacancies. The LAO recommended retaining special-funded positions, while noting that eliminating General Fund positions would reduce savings. Finance argued that vacancy levels have remained steady statewide, that departments need flexibility to manage operations and hard-to-fill jobs, and that some vacant positions can be reclassified to higher-priority work. Members raised concerns that many of the proposed eliminations would affect core public-safety, permitting, and environmental-protection functions. The Department of Fish and Wildlife said the cuts would affect permitting, environmental protection, and law enforcement, while State Parks said its proposed ranger reductions were chosen from historically vacant, hard-to-fill positions and would still leave many vacancies to fill through the academy. The Coastal Commission said its positions supported sea-level rise planning under SB 272. The Department of Pesticide Regulation and DTSC said the reductions would affect multiple program areas, though Finance said the special funds involved were not in structural deficit and the cuts could help avoid future fee increases. The State Water Resources Control Board said its proposed reductions were spread across programs, with public-health functions protected as much as possible. The committee then heard an overview from the State Water Resources Control Board on its responsibilities for water quality, water rights, drinking water, and funding for water infrastructure. Chair Joaquin Esquivel described ongoing work on the Bay-Delta Plan update, the Healthy Rivers and Landscapes voluntary agreements, and the need to actively administer water rights. Members also discussed the board’s response to the U.S. Supreme Court’s Sackett decision, which narrowed federal Clean Water Act jurisdiction. The board requested $2.6 million and 12 permanent positions to address resulting permitting and enforcement gaps; the LAO said the request met its high bar for new proposals and was supported by the board’s data and reporting.

Transcript Highlights:

• Similar to the 2025 Budget Act, the 2026 Governor's Budget allows both segments to request a short-term
• We request that the Legislature approve the Governor's budget and also, in the budget year, provide the
• But as mentioned in the prior item, the Governor's budget allows the segments to issue a request for
• But as mentioned in the prior item, the Governor's budget allows the segments to issue a request for
• years, adopt the budget language. 2026-27 budget years.

Summary: The Senate Budget Subcommittee on Education held its first 2026 hearing on higher education, focusing on UC and CSU system updates, student housing, enrollment, and core operations. In opening remarks, the chair noted recent state fiscal stress, the prior rejection of proposed UC/CSU cuts, and the Governor’s proposed 5% ongoing compact increases. UC President James B. Milliken and CSU Chancellor Mildred Garcia described the systems’ public value, research and workforce roles, and the impact of federal actions on grants, financial aid, and campus operations. Both also emphasized Title IX and civil rights efforts; CSU said it had implemented nearly all state auditor recommendations and was on track to finish the remaining one, while UC highlighted its systemwide civil rights and Title IX offices. Both leaders said federal investigations, grant cancellations, and litigation demands were consuming staff time and money, with UC reporting more than 200 grants lost or affected and CSU citing more than $161 million in lost grants and more than 1,600 grants affected overall. The committee then heard on student housing. Finance and LAO staff said the Governor’s budget made no major new housing proposal but continued support for the Higher Education Student Housing Grant Program. CSU reported 12 supported projects that will add about 5,047 beds, most below market rate, with four already open and seven more expected this year; it also said it has about 68,000 beds systemwide, a 92% occupancy rate, and ongoing emergency housing support. UC said the program has supported seven UC projects and two joint community college projects, adding more than 7,000 beds total, but nearly 10,000 UC students were on housing waitlists at the start of fall 2025. UC asked for additional state support, including possible bond funding and a statutory change to allow UC participation in public-private partnership housing projects. Members discussed rapid rehousing, student homelessness, faculty and staff housing, and community college housing partnerships, with both systems describing existing emergency beds and support services. On enrollment, LAO recommended maintaining UC’s 2026-27 resident undergraduate target, funding enrollment growth separately from base increases, pausing the nonresident reduction plan, and holding UC flat in 2027-28. For CSU, LAO recommended revising the 2026-27 target downward to reflect current projections, funding growth separately, and holding 2027-28 flat. CSU said it had rebounded from COVID declines, now exceeds its funded target by about 3,000 FTE, and is shifting about $89 million and 10,000 FTE spots from lower-demand campuses to higher-demand ones while developing turnaround plans for seven campuses with sustained enrollment declines, including Sonoma State. CSU also described direct admissions, transfer success pathways, and new degree programs aimed at workforce needs. UC said it had surpassed its compact enrollment goals, planned to add 2,721 California undergraduates in 2026-27, and was seeking $5.5 million for health professional programs. Members raised concerns about underprepared freshmen, K-12 alignment, nonresident caps at UC San Diego, deferred maintenance, ROTC access, and the need for stronger turnaround plans and teacher preparation pipelines. The final item on core operations addressed the Governor’s proposal to defer 3% base funding again, moving the one-time deferral to 2027-28 and allowing short-term zero-interest loans to cover it.

Transcript Highlights:

• We either put this back in the budget or we do something.
• Great flag, and we'll work on the budget guidelines.
• requests.
• The requests.
• OK, so first off, request deadlines and information on requests.

Transcript Highlights:

• The Senate Budget Subcommittee No. 1 on Education will come to order.
• I believe SBE is working on that request, and so we'll follow up shortly. Okay.
• We are requesting additional funding of $10 million.
• In fact, we're here today supporting the equalization funding in the Governor's budget and request that
• In fact, we're here today supporting the equalization funding in the governor's budget and request that

Summary: The Senate Budget Subcommittee on Education heard the Governor’s proposals on dual enrollment, reading difficulty screeners, special education, school facilities, and Commission on Teacher Credentialing programs. For dual enrollment, the Department of Finance described a $100 million one-time Proposition 98 General Fund proposal to expand the Dual Enrollment Opportunities Grant Program, add flexibility for regional occupational centers, support justice-involved youth, prioritize higher-need LEAs, and allow funds for teacher professional development, along with a reduction in required instructional minutes for some dual enrollment students. The LAO recommended rejecting the new funding, saying it did not address a clear implementation barrier, while CDE supported the proposal and suggested reserving $10 million for technical assistance. Members and public commenters largely supported the expansion, with some urging additional technical assistance and broader access, including adult dual enrollment. The committee then discussed the reading difficulty screener proposal, which includes $40 million one-time Proposition 98 General Fund for implementation costs and statutory changes that would delay formal screening until the 91st day for kindergarten and the 46th day for grades 1-2. Finance said the timing was intended to reduce over-identification and align screening with sufficient exposure to instruction; the LAO recommended rejecting the funding and redirecting it to a discretionary block grant. CDE supported the investment but cautioned about the timing restrictions, and several members and public witnesses argued the proposed deadlines were too rigid and could delay early intervention, while others supported the structured timeline as a way to improve accuracy and reduce misidentification. On special education, Finance presented a proposal to increase the statewide base rate to $99 per ADA through a $509 million ongoing Proposition 98 General Fund augmentation, plus COLA and a negative growth adjustment. The LAO said the proposal should be adopted but estimated it could be achieved with less funding; CDE strongly supported the increase, citing rising enrollment and local cost pressures, and district and SELPA representatives described large local funding gaps and growing expenditures. The committee also reviewed school facilities funding under Proposition 2, with Finance and the Office of Public School Construction describing $1.5 billion in proposed bond spending, existing balances for new construction and modernization, and the use of bond authority for natural disaster recovery, including projects related to recent fires. For the Commission on Teacher Credentialing, the committee heard about the Student Teacher Stipend Program, the Golden State Teacher Grant, state operations funding for misconduct investigations and SB 848 implementation, and a $250 million proposal to extend the Teacher Residency Grant Program; CTC supported the proposals and highlighted new data systems and technical assistance, while public testimony broadly backed the investments and urged continued or additional funding for teacher recruitment, literacy screening support, and special education.