Transcript Highlights:

• funding.
• funded.
• We have grant funding from the federal government, Chancellor's Office funding, and funding that was
• I'm concerned that we've got funding allocated to continue this initiative already for 2025-26, and we're
• , in particular, additional funding to continue growing dual enrollment.

Keywords: 988, house, all

Transcript Highlights:

• Additionally, as relating to the compact funding, the Governor's budget provides ongoing General Fund
• , as well as some other federal F&A funds and a few smaller funding sources.
• And when we discuss core funds, we subtract funds that were not spent on campus operations.
• funding for new enrollment.
• of its total funding.

Summary: The Assembly Budget Subcommittee on Education Finance, chaired by Assemblymember Alvarez, held a hearing focused on University of California budget issues. The committee reviewed UC core operations funding, enrollment trends, federal funding threats, Title IX implementation, and basic needs support. Major themes included the end of the Governor’s multi-year UC compact, the state’s fiscal outlook, UC’s enrollment growth, and the potential impacts of federal policy changes on research, health care, and student aid. On core funding, the Department of Finance described the Governor’s proposal to continue compact-related support, defer some payments, and authorize a cash-flow loan. The LAO recommended a smaller or no base increase, earmarking some funds for capital renewal, retiring deferrals when possible, avoiding new compact commitments, and funding UC annually rather than through compacts. UC argued that the compact has supported enrollment growth, student services, and operating costs, but said campuses face rising expenses, structural deficits, and limited reserves. Members questioned the effects of deferrals on students and discussed the need to prioritize less harmful reductions if cuts become necessary. The enrollment panel focused on UC’s growth in California resident enrollment and the nonresident replacement plan at Berkeley, UCLA, and UC San Diego. The LAO recommended maintaining the current enrollment target, funding enrollment separately from base increases, pausing the nonresident replacement plan, and holding enrollment flat in 2027-28. UC said it has already met compact enrollment goals, grown California undergraduate enrollment by about 18,800 students, and that further growth depends on ongoing state support. The committee also discussed the cost of enrollment growth, possible differential nonresident tuition, and a reporting request for UC to analyze the nonresident replacement approach; the motion to adopt supplemental reporting language passed. The hearing also covered federal funding risks, with the LAO and UC warning that federal changes could affect research grants, medical center reimbursement, and student financial aid. UC said research cancellations and suspensions are disrupting labs and graduate student support, while federal health policy changes could increase uncompensated care at UC hospitals. In the Title IX update, UC described its systemwide civil rights structure, annual student training, and campus support offices, and members praised the work while asking about ongoing concerns and intersegmental collaboration. The final basic-needs item began with Finance stating the Governor’s budget does not change ongoing support, but the transcript cuts off before further discussion or action.

Transcript Highlights:

• Homeland Security continuing resolution that pays all of our brave homeland defenders and fully funds
• . continue. continue.
• do is to continue to fund Donald Trump's do is to continue to fund Donald Trump's violent<00:32:
• Let's fund the Coast Guard. Let's fund Let's fund the Coast Guard.
• It funds everything. People get paid, and it allows more time to continue the discussion.

Keywords: U.S. House of Representatives Floor Proceedings on Friday, March 27, 2026, 1012, house, all

Transcript Highlights:

• Grider basically continues funding, it directs the funding in the event the agency is abolished and that
• State funds, it's considered donated funds.
• So not fund fully, but fund at 3.9. Thank you. Of course.
• I commit to continue. continuing that conversation, but can I continue that conversation in conference
• C, funding to hire two clerical assistants, $200,000, and D, $375,000 in funding. funding to purchase

Keywords: 1184, house, all

Transcript Highlights:

• We were able to fund programs that continue our state's economic growth in the Department of Commerce
• We continue funding the State Guard for another year for a total of $33.9 million.
• that fund.
• Senator Smith asked what funding sources are available for people to continue accessing these drugs before
• arbitration trust fund.

Summary: The Senate began with prayer and the Pledge of Allegiance, then moved into floor consideration of the 2026-2027 budget. Appropriations Chair Hooper presented Senate Bill 2500, describing a $115 billion budget that reduces overall spending from the prior year, maintains reserves, and includes a 3% pay raise for state employees and 5% raises for state law enforcement, firefighters, correctional officers, and park rangers. Committee chairs then outlined major spending in their areas, including K-12 education, higher education, health and human services, criminal and civil justice, transportation/tourism/economic development, and environmental and agricultural programs. Highlights included increased funding for school scholarships and safety, workforce and university programs, Medicaid and child welfare, corrections operations, affordable housing, rural communities, Everglades and water quality projects, and infrastructure. Members then asked detailed questions about several budget items. Senators sought clarification on the Emergency Management Trust Fund, arts and cultural grants, Florida Forever land acquisition versus conservation easements, teacher salaries, charter school capital outlay funding, EASE grants, New College funding, DOC inmate counts and reimbursement, lottery staffing, concealed weapons licensing positions, election security funding, iBudget waiver support, ADAP funding, Medicaid hospital rate reductions, and scholarship and enrollment supplements in K-12 education. Chairs explained that some reductions reflected technical shifts or right-sizing, that some funds were being moved below the line for better tracking, and that several items—such as ADAP and corrections operations—would likely remain conference issues with the House. After questions, the Senate substituted House bills for the budget and implementing measures and adopted amendments placing the Senate language onto the House vehicles to prepare for conference. The chamber passed the budget-related bills and several conforming measures, including bills on retirement, fuel taxes, the state agency law enforcement radio system, court trust funds, judgeships, and K-12 and higher education conforming changes. Votes on the major bills were overwhelmingly unanimous or near-unanimous, and the Senate repeatedly voted to accede to the House’s request for conference on the substituted bills.

Transcript Highlights:

• Senator Schwartner: ...what that fund would be in 10 years, versus if we continue to have revenues go
• So transportation continues, fund six continues to get the ESF 37.5%. Speaker: Yes, sir.
• That's also a continuing obligation. We understand we have to fund that if the money's there.
• The funding request aims to continue expanding this vital program.
• The funding request aims to continue expanding this vital program. Thank you.

Bills: SB 1

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

Transcript Highlights:

• And then moving forward, what do we fund? We fund the high-speed rail.
• , multi-year funding for transit.
• And so I would just ask that this body continue to do the work, continue to make sure that we are And
• And we will continue to do that.
• We're continuing to negotiate around middle-class scholarship funding.

Keywords: 987, senate, all

Summary: The Senate opened with roll call, prayer, and the Pledge of Allegiance, then approved the Senate journals and adopted floor amendments. Members voted on motions to advance Budget and Fiscal Review Committee measures and to suspend Joint Rule 62A so the budget committee could hear budget-related bills with shortened notice; both motions passed by roll call. The chamber then moved through the Daily File, including several second-reading bills and gubernatorial appointments. Three appointments were confirmed: Julie Lee and Ann Patterson to the Delta Stewardship Council, and Santa Cruz County Sheriff Christopher Clark to the Board of State and Community Corrections. Senators also took up Senate Joint Resolution 17, which urges Congress and the President to clarify that states may extend burial and memorial benefits in state veterans’ cemeteries to Republic of Korea veterans who served alongside U.S. troops in Vietnam; the resolution passed unanimously. The Senate then considered AB 109, the Budget Act of 2026, with extensive debate on the state’s fiscal condition and major budget priorities. Supporters said the budget is balanced, maintains reserves, reduces the structural deficit, and protects funding for child care, Medi-Cal, distressed hospitals, in-home supportive services, housing, higher education, and transit. Opponents argued it relies on future tax increases, leaves a structural deficit, and does not adequately address affordability, public safety, or repayment of unemployment insurance debt. After debate, AB 109 passed 28-9, and the chamber later approved the consent calendar items 81 through 86. The session ended with adjournments in memory of Honorable Hajan Lee, Doris Fisher, and James Leslie Barbie. The Senate announced its next floor session would be Thursday, June 18, 2026, at 9 a.m.

Transcript Highlights:

• because it's other funds, I'd rather continue with that than to have to rely on general fund dollars
• So is the plan for the county to continue to fund that position? Correct. All right, not fine.
• The counties and their partners in the basin are continuing to fund this position.
• The counties and their partners in the basin are continuing to fund this position.
• for this work will continue as it is currently funded for as long as there are, Will continue as it

Summary: The Emergency Board approved a series of consent federal grant applications from the Natural Resources and Public Safety subcommittees, along with several budget and position requests. The board approved grant applications for parks, transportation, judicial, emergency management, higher education, school nutrition, and other programs, including retroactive approvals where deadlines had passed. One member objected to the Natural Resources consent grants over concerns about future funding needs, but the motion still passed. The board also approved a one-time increase for Judicial Department court security, including digital privacy protections, circuit court security, and a statewide facilities assessment. A major discussion centered on Southern Oregon University’s financial stability. The Higher Education Coordinating Commission reported on SOU’s structural deficits, declining enrollment, and projected cash shortfall. The subcommittee recommended, and the board approved, allocating $7.5 million from the special appropriation for short-term stability, with a required update at the September 2026 Emergency Board meeting and a future request for the remaining funds. Members debated the broader crisis in higher education, with several saying SOU’s situation reflects systemwide enrollment and funding pressures and that long-term restructuring will be needed. The board also approved an AmeriCorps volunteer generation grant, an apprenticeship expansion grant, and a Department of Education nutrition equipment grant. In public safety, it approved funding for Oregon Military Department readiness facilities, a statewide evacuation planning tool, and a juvenile justice information system modernization report, while requiring a follow-up viability report. The Department of Justice received approval for additional antitrust positions and expenditure limitation, though several members raised concerns about the funding structure and incentives tied to settlement revenues; the motion passed despite objections. In natural resources, the board approved funding for the Water Resources Department’s well abandonment, repair and replacement grants, an assistant water master position in Washington County, groundwater data collection in the Lower Umatilla Basin, a wetlands remote sensing pilot, and parks-related grant applications for operations, maintenance, and capital improvements. Members generally supported the requests but raised concerns about geographic equity, long-term sustainability, and whether some county responsibilities were being shifted to the state. The meeting also included discussion of a Department of Emergency Management evacuation tool as an urgent wildfire preparedness measure, with members emphasizing its potential to save lives.

Transcript Highlights:

• Without Title X funding, 48% of California's Title X-funded agencies report that they will certainly
• continue to do their program.
• These are foundational funds.
• direct funding from the CDC.
• continuing the future of public health funding, but in other things we can be doing to really stabilize

Summary: The subcommittee held an oversight hearing on federal actions affecting California’s public health and family planning systems, focusing first on the freeze to Title X family planning funds and then on broader CDC/public health grant terminations. Chair and members described the cuts as abrupt, harmful, and likely to create major gaps in disease surveillance, vaccination, contraception, STI testing, and other preventive services, while also criticizing the federal administration’s explanation that the actions were tied to DEI or civil-rights compliance. The chair thanked Attorney General Bonta for legal action and said the hearing was intended to document the real-world impacts and inform state budget responses. Witnesses from Essential Access Health, Planned Parenthood Affiliates of California, a Central Coast clinic, and other providers said California’s Title X network serves more than half a million low-income patients annually and relies on the funds for staffing, outreach, training, mobile and school-based clinics, and confidential care. They warned that the freeze has already forced reserve spending, delayed services, and could lead to layoffs, reduced hours, longer waits, and fewer appointments, especially for sexual and reproductive health care. Public comment included support for a proposed state backfill of Title X losses, with advocates emphasizing impacts on low-income, LGBTQ+, and communities of color. On the public health side, CDPH, county health officials, and local health officers testified that the CDC’s rescission of $11.4 billion in grants would affect California by an estimated $840 million and threaten lab capacity, immunization programs, health disparities work, and data systems such as CalConnect and vaccine registries. Sacramento County and others described how the grants supported outbreak response, sequencing, community vaccination clinics, and equity-focused partnerships, and said terminations had already led to canceled appointments, stopped contracts, and layoffs. Several speakers urged the Legislature to preserve and expand state “future of public health” funding and to backfill federal losses, while public commenters from HIV, immunization, labor, and county organizations echoed concerns about workforce losses and worsening health outcomes.

Transcript Highlights:

• We just want to encourage this committee and the Legislature to continue that funding into the next grant
• And we strongly support the continued funding for universal meals and KIT.
• And we strongly support the continued funding for universal meals and kit.
• One-time funding can continue to help as a bridge between the current state of enrollment funding across
• One-time funding can continue to help as a bridge between the current state of enrollment funding across

Keywords: 988, house, all

Summary: The Assembly Budget Subcommittee on Education Finance heard testimony and took up three main budget areas: the Expanded Learning Opportunities Program (ELOP), differentiated assistance and the statewide system of support, and universal school meals with kitchen infrastructure grants. Public commenters and agency witnesses generally supported continued or increased funding for ELOP, with several groups urging stabilization of Tier 2 rates, more support for older youth, and preservation of equity guardrails and local flexibility. On school meals and kitchen infrastructure, testimony broadly supported universal meals and additional kitchen funding, while the LAO questioned the need for a fourth round of kitchen grants and recommended rejecting it until clearer unmet-need data are available. For ELOP, the Department of Finance described the Governor’s proposal to provide $4.7 billion ongoing for the program and $62.4 million ongoing to set a minimum Tier 2 rate of $1,800 per pupil. The LAO recommended instead fixing the Tier 2 rate at $1,579 and tying future changes to program requirements. CDE said the program is showing positive results in attendance and math, but data on enrollment patterns, TK participation, and some overlap with other programs are still being collected. Members raised concerns about possible double-funding with ACEs and 21st Century programs, the lack of site-specific data, and whether the current structure best targets students most in need; the issue was left open. For differentiated assistance, CCEE outlined the current statewide system of support and the Governor’s proposal to shift to universal and targeted assistance with a three-year cycle. Finance said the proposal would provide more stable county office funding, broaden universal supports, and give the State Board more flexibility to revise eligibility criteria; it also proposed $131.9 million ongoing for universal and targeted assistance. The LAO objected to changing the system before the State Board finalizes the new performance criteria and recommended revisiting the proposal later, while several members worried that a three-year entry window and broader board authority could weaken subgroup-based equity protections. The committee also discussed school meal funding, with Finance proposing $1.8 billion for universal meals and $100 million ongoing plus $100 million one-time for kitchen infrastructure, while CDE emphasized ongoing needs, deferred maintenance, and the importance of flexibility for innovative strategies such as food pantries. The committee held the issues open and invited additional public comment before moving on.

Transcript Highlights:

• because it's other funds, I'd rather continue with that than to have to rely on general fund dollars
• So is the plan for the county to continue to fund that position? Correct. All right, not fine.
• The counties and their partners in the basin are continuing to fund this position.
• The counties and their partners in the basin are continuing to fund this position.
• to continue to be funded.

Keywords: 907, all

Summary: The Emergency Board met on June 17, 2026, and approved a series of subcommittee recommendations, mostly on consent, related to federal grant applications, agency funding adjustments, and position authority. Early actions included approval of four federal grant applications from natural resources agencies, three public safety grant applications, a one-time increase for Judicial Department court security, retroactive approval for an AmeriCorps volunteer-generation grant, and a $7.5 million allocation to Southern Oregon University from a special appropriation for short-term financial stability. Members supporting the SOU item emphasized the university’s structural deficits, declining enrollment, and the need for a long-term higher education plan; several members voted no or raised concerns about sustainability, but the motion passed. The board also approved a federal apprenticeship expansion grant for the Higher Education Coordinating Commission, a school nutrition equipment grant for the Department of Education, and an Oregon Health Authority request tied to Medicaid community engagement requirements under H.R. 1. Public safety items included funding for Oregon Military Department readiness facilities, a report on the stalled juvenile justice information system modernization project with a follow-up viability report due in 2026, and a statewide evacuation planning tool for emergency management. The evacuation tool drew strong support as a wildfire preparedness measure, with members noting it could significantly reduce alert times and save lives. A major point of debate was the Department of Justice request to add 16 permanent positions and increase other funds limitation for antitrust enforcement. Supporters argued the federal government has pulled back and Oregon needs capacity to pursue active cases and protect consumers; opponents objected to the process, the size of the expansion, and the incentive structure tied to settlements and awards. Despite those concerns, the motion passed. The board also approved Water Resources Department requests for the Water Well Abandonment, Repair and Replacement program, an assistant water master position in Washington County, and federal funding for Lower Umatilla Basin groundwater data collection. The water master item prompted questions about county cost shifts, but staff said the position would remain externally funded and would not be filled without those resources.

Transcript Highlights:

• This comes at a time in which we have bridge funding needed to ensure that the continuity of care in
• This comes at a time in which we have bridge funding needed to ensure that the continuity of care in
• Of the Ending the Epidemic's request for funding using ADAP funding and opioid settlement funds to fund
• We will continue working with our county partners in the out years to recalibrate funding needs given
• , we continue to call for the restoration of PPS funding, protection of coordinated care access, reversal

Summary: The Assembly Budget Subcommittee on Health held a May Revision hearing covering several health-related budget proposals and broader concerns about the state’s budget structure. The Chair opened by praising some May Revision changes, such as added health IT funding, county administration support tied to Medi-Cal changes, a delay in Medi-Cal cuts for some lawfully present immigrants, and additional support for Covered California subsidies, while criticizing proposed increases in Medi-Cal premiums, changes to senior eligibility, the lack of a Medi-Cal dental solution, and other reductions affecting counties, mobile crisis units, workforce incentives, and physician shortages. The Legislative Analyst’s Office said the state’s budget condition remains weak despite progress on the structural deficit, and the Department of Finance said the May Revision uses a mix of reductions, reforms, revenue proposals, and fund shifts to cut out-year deficits. The committee first heard Department of State Hospitals proposals, including adjustments to county bed billing authority, contract exemption language for online clinical/pharmacy subscriptions, reversion of unspent funds, a revised Metro Central Utility Plant replacement project, electronic health record implementation, and workforce development funded partly through Behavioral Health Services Act resources. DSH also described savings and realignments in incompetent-to-stand-trial and conditional release programs, including extending the independent placement panel program and shifting funds to support additional bed capacity and a mental health rehab center. Members asked about the use of BHSA funds for workforce programs, and the department said the proposal would replace General Fund support with BHSA reimbursements. The Emergency Medical Services Authority proposed funding for statewide behavioral health crisis response guidance and for enterprise system development, and the Department of Managed Health Care proposed modernization of its complaint system and claims-settlement data system to improve oversight and comply with AB 3275. The largest discussion centered on the administration’s BHSA spending plan under Proposition 1, including state-directed prevention, workforce, and other uses, plus General Fund offsets for existing programs. The LAO questioned whether some proposed offsets fit Proposition 1’s non-supplant and eligible-use requirements, while the administration argued the uses were consistent with the measure and that the state-directed share can be adjusted annually. The Commission for Behavioral Health’s proposals drew the most public and member concern. The administration proposed cutting the commission’s Innovation Partnership Fund from $20 million to $10 million and reducing the Community Advocacy Program by $6.7 million, while redirecting BHSA dollars to other state purposes and direct services. Commissioners, advocates, and several members argued the cuts would weaken community voice, reduce support for underserved populations, and disrupt grants already in process; they also objected to using BHSA funds to backfill General Fund commitments. Public commenters, including youth, disability, behavioral health, LGBTQ, tribal, veteran, immigrant, and community-based organization representatives, overwhelmingly opposed the cuts and urged preservation of prevention, advocacy, mobile crisis, and innovation funding. No votes or final actions were taken during the hearing.

Transcript Highlights:

• funds.
• Continuing with the Permanent Fund for Military and Veterans Exemptions, which is item three at the bottom
• funding.
• We had mental health in so many different articles, and we continue to track that funding closely.
• And then if you look at recommendations 17 and 18, they are basically recommendations to continue funding

Bills: SB1, SB 1

Keywords: appropriations, budget, state funding, education, healthcare, infrastructure, campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• We understand accountability for state homelessness funding and we look forward to continuing to work
• This fund is essential to our continued recovery and sustainability.
• So I do ask you guys to please continue that funding and let us keep those, that $11 million.
• And also we increase our funding to our ports and our goods movement in order for us to continue to maintain
• We rely on these funds to provide essential services to our residents, especially as cost continue to

Keywords: 988, house, all

Transcript Highlights:

• The revolving fund balance increases there are related to our closing funds.
• Those funds have been spent.
• We are currently funding that through some leftover prep dollars of $127,000 and carryover funding.
• So we will continue to revise that plan annually and continue to chip away at it. resources we will continue
• This was part of our ask last year that was partially funded, and so this is on here to continue to increase

Summary: The committee first heard a presentation from the Oklahoma Department of Commerce on its FY26 priorities, recent performance, and budget requests. Commerce said it had helped announce about 8,000 direct jobs and nearly $14 billion in investment year-to-date, while noting challenges such as tariffs, workforce recruitment, staffing/FTE management, and the condition of its 100-year-old office building. The agency highlighted projects and initiatives including a new Taiwan trade office, Route 66 Centennial planning, the National Main Street conference in Tulsa, Olympic-related coordination, census outreach, and continued improvements to its grants and CRM systems. Requested funding included $8.3 million for building repairs or relocation planning, census support, $300,000 for EDGE, $135,000 for IT/cybersecurity upgrades, $250,000 for the Taiwan office, and additional support for Head Start, senior nutrition, and the Strategic Air and Space Commission. Members asked about the meaning of the investment totals, the building condition, delays in senior nutrition distributions, and staffing vacancies; Commerce said the investment figures reflected formal company capital announcements, the building had significant facade and roof damage, delays were due to multiple contracting layers, and several open positions were expected to be filled soon. The Oklahoma Tourism and Recreation Department then presented its FY26 budget and goals. New director Amy Blackburn and special advisor Sterling Zearley said the department oversees 38 state parks, six lodges, seven golf courses, and nine travel information centers, and emphasized tourism’s economic importance. They reported savings from bringing marketing and tracking functions in-house and from shared services, but said the department faces more than $271 million in deferred maintenance needs, staffing shortages, and connectivity problems at parks. Their goals include increasing park visitation to 10.2 million, raising occupancy to 36%, and growing travel to Oklahoma, with major marketing tied to the Route 66 Centennial, America 250, the FIFA World Cup, the Olympics, and other events. The department also discussed a request to raise its purchasing exemption cap from $25,000 to $75,000, a possible TravelOK.com redesign, and efforts to improve restaurant operations at lodges through a new RFP structure. Members questioned the apportionment cap, the size and timing of deferred maintenance requests, park revenue, and the use of parking pass funds; tourism said annual park-related revenue is about $32 million to $34 million and parking pass revenue is about $2.5 million. Finally, the OSU Veterinary Medicine Authority presented its budget request and program updates. The authority said it supports the veterinary teaching hospital and related student training, and that its FY26 budget is entirely state-appropriated. It requested continued support for hospital operations, the large animal scholarship program, and a new $12.5 million annual payment tied to the $250 million Legacy Capital Fund authorization for the veterinary teaching hospital, along with additional funding to expand in-state enrollment. Officials said in-state enrollment had increased from 58 to 69 students after prior funding, with a goal of reaching 90 of 106 total seats, and that there were 195 in-state applicants this year. Members asked whether standards would be lowered; the authority said academic standards would not change and noted strong board-pass rates and retention outcomes. It also said accreditation concerns tied to faculty shortages and off-site teaching had been addressed by bringing students back to the main campus and improving staffing. The committee ended by thanking the presenters and announcing its next meeting date.

Transcript Highlights:

• I just want to express our support for Assembly Member Haney's request to allocate funding to continue
• This new request before you is asking for six permanent positions to continue to fund this work in CRD's
• We look forward to continued dialogue for additional funds. Thank you. Hello.
• Kathy Van Austin, on behalf of Jay Bay, supporting the continuous funding for the youth set-aside in
• We look forward to working with the Governor and the Legislature to continue funding for the Student

Keywords: 988, house, all

Summary: The committee heard a series of May Revision budget items, beginning with the State Controller’s Office. SCO described requests for Fiscal Book of Record stabilization, payroll system implementation, ACFR reporting support, and unclaimed property outreach funding. Members focused on the Fiscal system’s July go-live, the improved timeliness of the ACFR, and the unclaimed property program’s roughly $15 billion balance and outreach efforts. The Department of Finance and LAO raised no major concerns, and the item was closed after discussion of how the new outreach funding would be used. The committee then considered several revenue proposals. Finance presented a proposal to tax pre-written digital software and SaaS, with estimated General Fund gains of $450 million in 2026-27 and $900 million ongoing; LAO suggested broader digital tax changes and a business-use exemption, while industry groups opposed the measure as a tax on essential digital tools. CDTFA also presented an administrative request tied to the software tax, and later a $10 million budget reduction reflecting lower operational needs. The committee then heard a federal conformity proposal for new children’s tax-deferred accounts, which LAO supported, and a proposal to cut the first-year LLC/LP minimum tax from $800 to $400, which Finance said would aid small business formation but LAO argued was poorly targeted and would reduce revenue. Another major item was a permanent business tax credit limitation beginning in 2027, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability. Finance said it would raise about $850 million in 2026-27 and more in later years, while LAO noted it would mainly affect large firms using the R&D credit and could also touch California Competes and other programs. Public testimony split sharply between business groups opposing the cap and advocates supporting it as a progressive revenue measure. The committee also heard FTB’s CalFile realignment proposal, which would retain a smaller staff to continue improving the free filing system and return most of the prior funding to the General Fund. The hearing concluded with the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which brings in about $221,000 to $266,000 annually for arts grants and teacher stipends. Members and advocates supported the item but also urged larger arts funding, including the Performing Arts Equitable Payroll Fund. The Governor’s Office of Business and Economic Development then presented proposals for the California Civic Media Program, CA RISE reappropriation, and a reversion of unused Chips for America facility funds; LAO supported the latter two but was cautious about new civic media spending. Members raised concerns about the civic media program’s scope, including the exclusion of broadcast and the lack of a specific ethnic media set-aside, while GoBiz said funds would begin going out in the fall if approved.

Transcript Highlights:

• of this funding.
• , or rainy day fund.
• Item E is a decrease in federal funds for grants not anticipated to continue in the 2026-2027 biennium
• This is an all funds reduction of $0.1 million. funds for grants not anticipated to continue in the 26
• Recommendations continue the 2024-2025 biennial spending levels of $1 million in general revenue funds

Summary: The committee met with a quorum present to hear Article VI Natural Resources agency budget recommendations, beginning with the Railroad Commission. LBB staff summarized the commission’s 2026-27 base recommendation at $458.7 million, down from the prior biennium, with an increased FTE cap. The presentation highlighted reduced federal IIJA funding, volatility in oil and gas regulation account 5155, continued support for IT modernization, and rider changes. The commission’s major exceptional items were then presented, including requests for produced water and injection data reporting, an authorized pit registration system, regulatory filing/permitting upgrades, an underground injection well investigation team, site remediation support, and especially $100 million for orphan well plugging. Members asked about biennium-to-biennium comparisons, salary biennialization, the scale of orphan well risks, federal funding delays, bonding, and whether the state should rely more on industry or general revenue for plugging costs. Commission leadership explained that orphan wells can threaten water and public safety, that plugging costs have risen sharply, and that current funding is insufficient to keep up with emergency wells and the backlog; they also said the agency is moving to cloud-based systems with cybersecurity protections and that the proposed performance measure may need adjustment if funding does not increase. The Railroad Commission testimony was followed by LBB and agency testimony for the Texas Animal Health Commission. LBB described a $42 million recommendation for 2026-27, an increase overall, but with a reduced FTE cap due to turnover and salary reallocation. The recommendation maintained funding for cattle fever tick work, chronic wasting disease, lab testing through an MOU with Texas A&M’s veterinary diagnostic lab, and a new $5 million spay-and-neuter pilot program, while deleting a capital budget rider and adjusting riders tied to entry point inspection stations and clinical trials. Agency leadership then outlined the commission’s mission to protect livestock health and the state’s $22 billion animal industry, and described major disease threats including highly pathogenic avian influenza, cattle fever ticks, New World screwworm, and chronic wasting disease. Their exceptional items focused on recruiting and retaining veterinarians, replacing fleet vehicles, creating an ectoparasite identification lab, adding field staff and IT support, improving records and epidemiology reporting, strengthening central administration, supporting secure food supply planning, expanding chronic wasting disease work, and staffing the new spay-and-neuter program. Members asked about field identification of ticks, the use of disinfectants and PPE, fleet management, the scale of cattle fever tick risk, and chronic wasting disease; the agency explained its current inspection and lab-confirmation process, its reliance on field disinfecting and biosecurity, and the need for more staff and better data systems to keep pace with growing workloads and disease threats.

Transcript Highlights:

• And I think this legislature has continued to fund efforts that I think are really important.
• We will continue now.
• In the contractor fund, is that only for people who've paid into the contractor fund?
• Folks can continue to work and continue to be here.
• Let's hope we continue to have federal matching funds that we can use the interest toward.

Keywords: 995, all

Summary: The joint budget hearing opened the FY27 budget process with remarks from the Senate and House Ways and Means chairs, who described the fiscal outlook as challenging because of slow revenue growth, rising health care and other costs, and uncertainty from federal policy changes. Governor Healey and Secretary of Administration and Finance Matthew Gorzkowicz then presented House 2, a $62.8 billion budget that they said grows by about 1% and does not raise taxes or fees. They emphasized affordability, fiscal discipline, protection of core services, and continued investment in education, transportation, housing, child care, health care, and public safety. The administration also discussed a separate bill to delay and phase in certain federal tax-code changes from the so-called OB3 law, especially research and experimental expense provisions, to reduce immediate budget impacts and preserve competitiveness. A major portion of the hearing focused on education and municipal aid. The administration said House 2 provides about $7.6 billion for Chapter 70 aid, fully funds the final year of the Student Opportunity Act, increases special education circuit breaker funding, and raises rural school aid. Senators and representatives from both parties raised concerns that Chapter 70 and other aid formulas are not equitable for small, rural, and low-wealth communities and are not keeping pace with inflation, and several called for broader review of the formula and related funding streams. The governor and secretary said they are open to further discussion, pointed to additional support through rural aid, special education, transportation reimbursements, and minimum aid, and said total Student Opportunity Act investment would reach about $2.1 billion over the life of the law. Transportation, housing, and fair share spending were also central topics. The administration said fair share revenues are being used holistically, with education-heavy spending in the operating budget and transportation-heavy spending in the supplemental budget, and estimated the overall split to date at roughly 57% education and 43% transportation. They highlighted MBTA stabilization, regional transit authority support, microtransit, fare-free regional transit, and bridge and commuter rail investments, while noting the MBTA remains a major fiscal concern. On housing, the governor stressed production, permitting reform, ADUs, down-payment assistance, and support for public housing authorities, while lawmakers pressed for more funding for local housing authorities and for ways to address out-migration, energy costs, and affordability. The governor also said the administration will not withhold fire safety grants from communities over MBTA Communities Act noncompliance and will handle such issues case by case. No votes were taken at the hearing; it was an informational presentation and question-and-answer session.

Transcript Highlights:

• Fund to the State Court Facilities Construction Fund, thereby reducing the general fund backfill needed
• to the general fund.
• We continue to monitor. and we'll work with the judicial branch in you know should funding be be needed
• unencumbered funds.
• funding moving forward.

Keywords: 988, house, all

Transcript Highlights:

• bridge loans because the Bay Area will continue to figure out how to fund transit operations.
• And this was the amount that was agreed upon, but next year we'll continue to roll out funding.
• So, we would continue to roll out funding as voted on and as agreed upon by California voters, but there's
• if the funding is deemed insufficient, we would continue discussions to try to make adjustments as needed
• And then lastly, on behalf of Pearl X, again, looking forward to continuing conversations for funding

Keywords: 988, house, all