Transcript Highlights:

• </c> a lot more detail about the budget a lot more detail about the budget activities<00:09:41.000><c
• <00:15:28.839><c> um</c> budget um budget um I'm<00:15:29.560><c> going</c><00:15:29.680><c> to</c><00
• or produce a budget accordingly.
• </c> legislature to consider non-ma budget legislature to consider non-ma budget growth<00:20:16.480>
• Target and produce a budget accordingly Target and produce a budget accordingly with<00:21:05.480><c>

Keywords: 1183, house

Transcript Highlights:

• Beginning with the fiscal year 2027 JFAC program maintenance budget, add $129,900 for budget restoration
• Chairman, beginning with FY 2027 JFAC program maintenance budget, add $129,900 one time for budget restoration
• This can be found on page 2-73 in your budget book.
• I think the budget analyst did a nice job.
• Just a reminder, we're in budget-setting situations, not budget-hearing situations, and so I will allow

Summary: The Joint Finance-Appropriations Committee met with a quorum and took up several Department of Health and Welfare and related budget items. On the Commission on Aging, a motion to restore $129,900 in ongoing general funds for senior nutrition failed, but a revised motion to restore the same amount as one-time general funds passed. The committee then approved the Division of Welfare budget items tied to federal and state changes under the One Big Beautiful Bill Act and House Bill 345, including SNAP administrative cost adjustments, Medicaid expansion work requirements, and Medicaid eligibility system changes. For Indirect Support Services, the committee approved a budget that included a fund-source change for the background check unit, replacement items, IT modernization and consolidation, and the fiscal impact of Senate Bill 1314. It also approved a separate motion to exempt several Health and Welfare divisions from transfer limitations, but only for Youth Safety and Permanency and Licensing and Certification after a substitute motion narrowed the original request. The committee then approved a $60,000 general fund restoration for the Domestic Violence Council within Independent Councils, with a senator disclosing a potential conflict of interest for the record. The committee next adopted revised language for the Idaho Child Care Program Capacity Grant in the Early Learning and Development budget after extensive discussion about clarifying eligibility, investigations, and provider definitions; the motion passed despite concerns from the department and some members that the language remained unclear and policy-heavy. Finally, the committee approved consolidation of the Office of Species, Minerals and Energy Coordination, combining the former species conservation and energy/mineral offices and funding personnel, fisheries projects, and one-time energy resiliency grants. The meeting ended with adjournment to the call of the chair, and no further meeting was scheduled for the next morning except one House Appropriations item at 9 a.m.

Transcript Highlights:

• I'll just say going in the House budget was at base budget on the energy budget.
• The Senate budget largely was mirroring the governor's budget going in and had a $2 million per year
• </c><00:02:49.280><c> that</c> two set are the senate budget that two set are the senate budget that
• was at base budget on the energy budget.
• The Senate budget largely was mirroring the governor's budget going in and had a $2 million per year

Keywords: 1183, house

Transcript Highlights:

• Um, and two of the most challenging budgets for us, um, were the human services budget and the health
• and human services budget.
• </c> to give us and motans a stable budget to give us and motans a stable budget that<00:03:00.080><c
• So, what are some of those budget.
• :04:04.400><c> and</c> human services budget and the health and human services budget and the health

Keywords: 1187, senate, all

Transcript Highlights:

• The budget change proposal that was included in the governor's proposed budget...
• The budget change proposal that was included in the governor's proposed budget specific to this SIBTF
• process or in future budget cycles.
• process or in future budget cycles.
• My budget staff was great and was able to get me a list for the L.A. and their budget staff was great

Summary: The Budget Subcommittee on State Administration heard presentations on the Department of Industrial Relations’ labor-related budget items, with the main focus on proposed trailer bill language to reform the Subsequent Injury Benefits Trust Fund (SIBTF) and a related budget change proposal for staffing. DIR said SIBTF has grown far beyond its original purpose, citing the 2020 Todd decision, expanded eligibility based on chronic or asymptomatic conditions, and a backlog that has grown to more than 30,000 pending cases. The administration argued the reforms would restore guardrails, reduce liabilities and employer assessments, and speed processing for severely injured workers; the LAO said the proposal was largely consistent with its prior recommendations. Members raised concerns about using trailer bill language for major policy changes, the retroactive application to open cases, and the impact on workers already in the queue, while supporters from employer groups and public agencies backed the proposal as necessary to control costs and restore sustainability. Public comment was split, with injured-worker advocates opposing the retroactive changes and business/public employer representatives supporting the reforms. The committee then heard the SIBTF workload request, which would phase in 177 positions over five years at a cost of $36.5 million, including staff for the Division of Workers’ Compensation, the Office of the Director Legal Unit, and administrative support. DIR said the additional staffing is intended to address very high caseloads and reduce processing times, but emphasized that the request assumes the reform package is adopted; LAO agreed the staffing increase made sense if paired with reforms. Members asked about vacancy rates, current staffing, and whether the workload request would become the new normal, and DIR said it would monitor caseload trends and adjust future requests as needed. Finally, the committee received an update on the California Workplace Outreach Program (CWOP), which DIR described as a partnership with community-based organizations to educate workers and help employers comply with labor laws. DIR reported that CWOP has reached 1.75 million workers and employers and made 8 million touchpoints since 2020, with the current round awarding $50.7 million to 87 partners for a two-year period through June 2027. Members and public commenters highlighted the program’s role in reaching immigrant, farmworker, janitorial, nail salon, and other vulnerable communities, and several speakers urged continued funding at $30 million per year for five years. No votes were taken during the hearing.

Transcript Highlights:

• This budget How the proposed budget aligns with the administration's vision.
• budget proposal as filed.
• budget proposal is filed.
• budget lines.
• The $54 million in this budget request is distributed across seven budget lines.

Keywords: 1212, all

Transcript Highlights:

• </c> budget committee? budget committee?
• </c> because a budget committee is a budget because a budget committee is a budget committee.<02:47:18.080
• budget committee.
• A municipal budget committee often has both the school district budget and a town budget, and they have
• cannot treat the budget as an overall<04:12:11.840><c> budget.

Keywords: 1189, house, all

Transcript Highlights:

• and we have balanced budgets.
• You go back to a yearly budget from the Budget Control Act of 1974 essentially.
• ><c> from</c><00:36:55.839><c> the</c><00:36:56.000><c> budget</c> to a yearly budget from the budget
• </c> budget call. budget call.
• . budget. budget.

Keywords: Concurrent meeting of the House Standing Committee on Elections, Constitutional Amendments, and Intergovernmental Affairs and the House Standing Committee on State Government. Title of video has been shortened due to YouTube length restrictions. Discussion of HCR 45: 00:04:14, 958, all

Summary: The joint meeting of the House Elections, Constitutional Amendments and Intergovernmental Affairs Committee and the House State Government Committee was called to consider House Concurrent Resolution 45, sponsored by Representative Jason Petri. The resolution would support calling for a federal balanced budget amendment through the Article V process. Petri argued that Kentucky’s own constitutional balanced-budget requirement shows the value of fiscal restraint, and he said decades of federal deficit spending and rising debt make a constitutional amendment necessary. Governor Ron DeSantis and Lauren Ends of the National Campaign for a Balanced Budget Amendment also testified in support, emphasizing the growth of federal debt, the risk of a future debt crisis, and the view that Congress is unlikely to solve the problem on its own. Members asked about the mechanics and risks of an Article V convention, including whether the convention’s “sole purpose” language would be enforceable and whether a convention could become a “runaway” process. DeSantis and Ends said states can impose guardrails on delegates, including criminal penalties and delegate-limitation laws, and noted that any proposed amendment would still require ratification by 38 states. They also said that if Congress chose to draft the amendment itself in response to state pressure, that would be acceptable. One witness said 18 states have passed faithful-delegate or delegate-limitation laws. Representative Callaway asked what would happen if the debt issue is not addressed. Witnesses responded that continued borrowing could lead to economic dislocation, higher interest costs, and a debt crisis that would crowd out other federal spending. They said the current debt burden is already more than $100,000 per U.S. citizen and roughly $300,000 per taxpayer, and that a balanced budget amendment would be a first step toward stopping the growth of debt before any long-term paydown could occur. The transcript provided does not show a final vote or other committee action on the resolution.

Transcript Highlights:

• Living within our means, avoiding unnecessary off-budget ...means, avoiding unnecessary off-budget spending
• The capital budget over the years has evolved into sort of two capital budgets, if you will, statewide
• So, >> exactly. >> Exactly. >> Exactly. >> So, there, this capital budget, next capital budget, one after
• Today we are budgeted for 225 veterans. In our state Budgeted for 225 veterans.
• I know that that money was encumbered from one budget to this budget.

Keywords: 928, house, all

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' budgets

Summary: The Senate Budget and Fiscal Review Committee held an informational hearing on California’s Budget Stabilization Account, or Rainy Day Fund, with opening remarks focused on the state’s long history of revenue volatility and the role reserves play in smoothing downturns. The Legislative Analyst’s Office explained that California’s personal income tax base is highly volatile because high-income earners’ income is tied to capital gains and other fluctuating sources, and that Proposition 2’s current reserve rules set aside 1.5% of General Fund revenues plus a share of excess capital gains, but cap constitutional deposits at 10% of General Fund taxes. The LAO said its analysis evaluates reserve policy over decades and found the current system would cover about 30% of funding shortfalls in a 90th-percentile downturn scenario over 50 years, which is an improvement over no reserve but still inadequate. The LAO recommended raising the reserve cap substantially, ultimately to 50% by 2055, with an immediate increase to 20% and gradual increases thereafter. It also suggested either replacing Proposition 2’s deposit formulas with broader rules that capture volatility across all tax revenues or, alternatively, depositing all excess capital gains rather than only a share. The Department of Finance said the Governor’s prior proposal similarly sought to raise the cap from 10% to 20% and exclude reserve deposits and withdrawals from the state appropriations limit, arguing those two constraints limited the state’s ability to save during recent revenue surges. Other panelists and members discussed whether reserves should be paired with broader structural changes, including unemployment insurance reform, safety-net funding, infrastructure reserves, and the projected surplus temporary holding account. The California Budget and Policy Center supported reserve reform but emphasized balancing savings with current needs and noted other tools such as revenue increases, borrowing from special funds, and the new surplus-holding account. Members debated the causes and effects of Proposition 13, the appropriations limit, business departures, and whether reserve policy should be more directly tied to protecting Californians’ access to health care, food assistance, child care, and other core services. No votes or formal actions were taken, as the hearing was informational only.

Transcript Highlights:

• The average budget right now is $218 million. The average budget right now is $218 million.
• I know members of this budget strongly value nonpartisan, accurate data to help inform annual budget
• Yeah, Keith Duncan, Caltrans budget officer.
• And again, we need to be better budgeting.
• Why don't we just budget for it? Thank you.

Summary: The Senate Budget Subcommittee No. 5 held an informational hearing on the Governor’s May Revision proposals for labor, public safety/judiciary, and transportation, and no votes were taken. In Part A on labor, the Employment Development Department described funding for EDD Next document management work, updated UI loan interest costs, disability insurance and paid family leave benefit increases, WIOA adjustments, UI and school employee benefit changes, an EMT training reappropriation, and a technical correction tied to an EDD Next reversion. PERB discussed reduced funding requests for AB 288 due to litigation and a proposal to implement AB 1 covering legislative employees. DIR presented proposals for legal unit reclassifications, two major IT modernization projects, a new Cal/OSHA emerging technologies unit, a COIA reappropriation, and trailer bill language requiring electronic payment of employer assessments and removing a salary cap for the DWC administrative director. CalHR proposed consolidating employee assistance services into a statewide contract with enhanced support for first responders, and CalPERS and CalSTRS presented budget adjustments tied to investment costs, state contributions, and benefit overpayments. Members focused heavily on the unemployment insurance debt and interest payments, asking why the administration had no concrete plan to pay down principal. Finance and LAO explained that the state’s UI tax structure has long been insufficient and that any long-term solution would need to address both the outstanding federal loan and the structural imbalance in employer taxes. Questions also centered on EDD Next costs and timelines, with the chair asking for clearer long-term project cost estimates and Finance noting that future maintenance and operations costs will continue after implementation. On DIR’s emerging technologies unit, members asked whether it would address AI-driven workplace harms; DIR said the unit would focus on physical workplace safety issues involving AI, robotics, autonomous equipment, and related guardrails, while LAO noted broader labor-practice questions would likely fall outside Cal/OSHA’s scope. In the CalPERS discussion, members raised concerns about transparency in private equity and external management fees, while CalPERS said higher fees reflect a strategy of greater private-market and active-management exposure and are offset by higher net returns. Members urged more information on specific investments and future reporting. For CalSTRS, Finance presented routine contribution and overpayment adjustments, but members also raised broader transparency concerns that CalSTRS staff said they would follow up on separately. Public comment in Part A was dominated by strong support for an immigrant worker emergency relief fund, along with support for apprenticeship and workforce proposals and PERB staffing. The chair and members said they would follow up on where the immigrant relief proposal should be considered, noting it may belong in another policy area. The hearing then moved into Part B with an overview of Judicial Branch-related May Revision items, including court interpreter funding, appellate court security, workload cap changes, lactation room implementation delays, and a reduction to the state court facility construction backfill.

Transcript Highlights:

• It's never budgeted, or it's rarely budgeted anyway, and then it's used to pay that out.
• So will we see budgets that have additions, whether you have these budget guidelines or not?
• That's my question on that budget item. Mr.
• , or over the budget on it and stuff on it.
• Typically not because budgets grow.

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:

• much more difficult. state's budget and to family budgets state's budget and to family budgets across
• We're able to balance this budget.
• We're able to balance this budget.
• </c> and putting together their own budgets and putting together their own budgets based<00:21:23.400
• </c> have already heard the governor's budget have already heard the governor's budget they're<00:21:

Keywords: 1187, senate, all

Transcript Highlights:

• It's nice to see a lot of interest in this budget item this morning. Welcome to Budgets Sub 4.
• If they don't have to be done with the budget to implement and pass the budget by June 15th, June 30th
• Ehlers said, is you have a really challenging budget... ...said is you have a really challenging budget
• under or on budget?
• part of last year's budget.

Summary: The hearing opened with budget framing from the chair and the LAO, who said the May Revision addresses roughly a $14 billion budget problem and that the environment and transportation subcommittee’s proposals account for about $1.9 billion of the solution. The LAO urged members to focus on solutions that do not worsen out-year deficits, to preserve reserves, and to defer major policy changes that are not necessary to pass the budget, including the newly introduced water-related trailer bills. Members also raised concern about a late-dropped Olympic-related trailer bill, which the LAO likewise suggested should be deferred for fuller review. The first major item was the Delta Conveyance Project and related water quality control plan trailer bills. The administration argued the proposals would streamline permitting, water rights proceedings, judicial review, and land acquisition, and would clarify DWR’s bond authority for the project. DWR said the project is needed to protect water supply reliability against drought, earthquakes, sea level rise, and other climate-related disruptions, and that the tunnel would help move water when conditions are wet and safer for the environment. Committee members from both parties questioned the timing, the use of budget trailer bills for major policy changes, the scope of the CEQA and water-rights changes, the lack of a bond cap, cost growth, and eminent domain protections. The LAO recommended deferring both water trailer bills without prejudice. Public comment was sharply divided, with labor, water agencies, and some business groups supporting the project as climate adaptation and reliability infrastructure, while environmental, tribal, fishing, county, and community groups opposed it as an attempt to bypass public process and weaken protections. The committee then briefly heard the DMV’s Digital Experience Platform fee trailer bill, which would reinstate a $1 system improvement fee to help fund the vehicle-registration phase of the project. DMV said the fee would raise about $7 million annually and offset roughly $59 million to $60 million of project costs, while the LAO noted it would help but would not solve the Motor Vehicle Account’s broader structural gap. The hearing then moved to California High-Speed Rail, where the new CEO presented an updated plan and said the project remains a major climate and infrastructure investment. He reported a revised Merced-to-Bakersfield cost range of $34.9 billion to $38.5 billion, said the agency is trying to reduce risk through direct procurement of materials, and argued that stable annual funding is needed to avoid higher costs from delays.

Transcript Highlights:

• So today, I am proud to support this budget and this provision.
• Many of our local cities and towns are facing budget crises.
• This House Ways and Means budget increases local aid over last year’s final budget and over the governor
• Our budget before us allows us to be nimble.
• This budget provides $6.68 million This budget provides $6.68 million for the Commonwealth Zoological

Keywords: 1212, all

Transcript Highlights:

• In the proposed budget, there's a budget... Thank you.
• In the proposed budget, there's a budget.
• slots in the 2027-28 budget.
• slots in the 2027-28 budget.
• It is still in our January budget and governor's budget.

Keywords: 988, house, all

Transcript Highlights:

• So that's what goes into your budget.
• Now, the budget this year has changed... ...because we could find the money in the budget.
• So the budget, the government's budget already equals out to zero with no room? Yes.
• Here we'll get into some budget basics. Sometimes we talk. Here we'll get into some budget basics.
• Now the continuation budget is prepared by the Division of Administration, Office of Planning and Budget

Summary: The House Ways and Means Committee met on March 10, 2026, for a series of informational presentations rather than bill hearings. House Fiscal Division staff reviewed the state’s tax structure, the 2024 third special session tax reform package, and the Revenue Estimating Conference process. They explained the move to a 3% flat individual income tax, a 5.5% flat corporate income tax, the higher standard deduction and retirement-income exclusion, the repeal of several deductions and credits, the repeal of the corporate franchise tax, and the expansion of the sales tax base to certain digital goods. Staff also walked through tax exemption data, showing the size of exemptions relative to collections, and discussed forecasted revenue gaps in the out years, including the effect of the scheduled sales tax rate reduction and the return of transportation-related revenues to their prior dedication. Members asked about declining mineral revenues, digital sales tax collections, corporate collections, and the impact of tax credits and exemptions. Division of Administration and Legislative Fiscal Office staff said lower oil and gas prices, long-term production declines, and the timing of corporate payments were major factors in revenue trends, and that it will take at least another year or two of tax returns to fully understand the reform’s effects. They emphasized that corporate collections are still below the $600 million threshold that affects the state general fund and Revenue Stabilization Fund, though the forecast remains $900 million. The committee also discussed surplus and excess revenues, the distinction between discretionary and non-discretionary spending, and how current-year and prior-year balances are allocated under the constitution. A significant portion of the meeting focused on the relationship between Ways and Means and Appropriations. Chairman McFarland stressed that new fiscal-note bills can force cuts elsewhere if revenue is not available, and urged members to coordinate early with fiscal staff before advancing costly legislation. Members also asked how pending constitutional amendments on teacher pay and inventory tax might affect the budget; staff said the teacher stipend proposal is not currently funded in the executive budget and that the inventory tax proposal would mainly affect local governments and any reimbursements from the Revenue Stabilization Fund if approved. The committee then heard from Louisiana Economic Development Secretary Susan Bouchoux, who reported strong results from recent reforms, including $92 billion in capital investment, 37,000 new jobs, a record year of announcements, a top-10 corporate tax climate ranking, and a pipeline of 189 active projects representing nearly 42,000 potential jobs and $280 billion in potential investment. Members praised LED’s work and discussed the need to pair economic development with workforce training, infrastructure, and predictable tax policy.

Transcript Highlights:

• So that's what goes into your budget.
• So the budget, the government's budget already equals out to zero with no room? Yes.
• The only teacher stipend has been non-recurred from the budget currently, so as the budget is presented
• Here we'll get into some budget basics. Sometimes we talk. Here we'll get into some budget basics.
• Now the continuation budget is prepared by the Division of Administration, Office of Planning and Budget

Keywords: 965, house, all

Transcript Highlights:

• Good afternoon and welcome to your favorite budget committee. Budget Sub 5.
• We have to have a little fun, budget friends. We have to have a little fun, budget friends.
• the Legislature enact a budget with at least the amount of ongoing budget solutions that the administration
• As we're thinking about this in the budget process right now, obviously if I am successful on the budget
• And compassionate budget plan.

Keywords: 988, house, all

Transcript Highlights:

• So moving on to districts and charters in the budget year, the Governor's budget includes an increase
• I believe in the 2021-22 budget and the 2023-24 budget, if I recall.
• Around 1.4 is the ADA decline assumed in the budget proposals, the Jan. 10 budget proposals.
• Around 1.4 is the ADA decline assumed in the budget proposals, the Jan 10 budget proposals.
• And that's prudent budgeting because we have a lot of one-time funding available in this year's budget

Summary: The committee heard opening public comment and then took up several K-12 budget items in the Governor’s January proposal. On LCFF and necessary small schools, the Department of Finance described a 2.41% COLA, a roughly $2.2 billion increase for districts and charters, and a $30.7 million ongoing augmentation to raise necessary small schools funding by 20%. The LAO supported funding the COLA and said the small schools proposal had merit, but questioned the 20% figure and warned about a sharp funding cliff around the enrollment thresholds. Members and witnesses repeatedly raised declining enrollment, attendance, and the need to align funding with outcomes and local cost pressures. The chair and several members also asked whether consolidation, shared administration, or alternative formulas could better address small district costs, and the issue was left open for further discussion. The panel then discussed special education equalization. Finance proposed $509 million ongoing Proposition 98 funding to raise the statewide special education base rate to $999 per ADA, which would fully equalize SELPA base rates; the LAO said the same target could likely be reached with less money under current assumptions. CDE strongly supported equalization as an equity issue and said about 15% of students are identified with disabilities, with identification rising by roughly 20,000 to 25,000 students per year. Members raised concerns about staffing shortages, high caseloads, and the need to use any additional funds for inclusive practices, alternative diploma pathways, and the extraordinary cost pool. The committee also discussed whether the budget language should reflect the $509 million amount or the $999 rate, and the item was held open. For the Learning Recovery Emergency Block Grant, Finance proposed restoring $757.3 million one-time to complete the program, while the LAO recommended approval because learning loss remains unresolved and districts have generally used the funds for tutoring, supplemental instruction, and other academic supports. CDE explained that LEAs must revisit their needs assessments and that many districts are using the funds alongside other support systems, but members pressed for clearer accountability and better data on how much money actually goes to tutoring or other direct services. The committee then reviewed the Student Support and Professional Development Discretionary Block Grant, with Finance proposing $2.8 billion one-time and the LAO saying discretionary funding can help districts address local priorities but should be paired with fiscal oversight and possibly more targeted priorities. Members split between supporting flexibility for local needs and worrying that the grant could be used to cover ongoing structural deficits without clear evidence of student-outcome gains; the issue was also held open. Finally, the committee heard a high-level overview of school facilities funding under Proposition 2, with Finance proposing to continue $1.5 billion in bond spending in 2026-27. OPSC said that at the current pace all Prop 2 K-12 funds would likely be exhausted around 2029-30, and that demand is shifting toward modernization as enrollment declines in many areas. Members asked about school closures, reuse of unused sites, and the new small school district facilities program, which OPSC said is moving toward proposed regulations and would begin accepting modernization applications in November 2026 and new construction applications in January 2027. The committee also briefly noted community college facilities funding and asked for more information later in the process.