Transcript Highlights:

• And so we don't know how the governor proposes to adjust the inflation in the DWS or how this will impact
• Lastly, we're looking to address workforce shortages, which are critical in this industry, by adjusting
• This proposal limits inflationary increases to 2% per adjustment.
• This proposal limits inflationary increases to 2% per adjustment.
• This proposal limits inflationary increases to 2% per adjustment.

Committee: Senate Human Services

Transcript Highlights:

• The Senate adjustment here reflects their revenue estimates.
• The Senate adjustment here towns.
• </c> four were 305,000 the adjusted four were 305,000 the adjusted authorized<00:56:12.960><c> in</c>
• </c><00:56:46.319><c> yet</c> spent the adjusted authorized yet spent the adjusted authorized yet though
• </c> the leadership of Senator Lang adjusted the leadership of Senator Lang adjusted those<03:18:25.200

Summary: The Committee of Conference on HB 1 and HB 2 met to review revenue estimates and begin working through the HB 1 detail change sheet. New Hampshire Lottery Director Charlie McIntyre reported stronger-than-expected lottery performance, raising the current-year return estimate to $27 million and the next biennium estimate to $200 million, with the increase attributed to improved scratch ticket sales and sports betting not hurting revenue as much as expected. Members questioned the assumptions behind the higher estimates, including the impact of $50 scratch tickets and whether the figures accounted for future conversion from historical horse racing (HHR) machines to video lottery terminals (VLTs). McIntyre and committee members discussed machine counts, per-day revenue assumptions, and the likelihood that VLT conversion would increase revenues over time, though the timing and pace of conversion remained an open question. The committee also discussed several gaming-related policy items in HB 2, including changes to kino hours and local option games of chance, and noted that the Senate and House differed on how gaming revenues would be allocated between charities, education, and general funds. Members emphasized that revenue projections should remain conservative because operators, not the state, would control the pace of machine conversion. Representative Sweeney noted that operators could earn more per machine under the VLT model, and McIntyre said the new facilities and expansions were largely concentrated near the Massachusetts border. The committee then moved to the HB 1 detail change sheet. It agreed to Senate position on the Department of Safety’s road toll bureau and international registration program changes, which were described as a zero-cost realignment of positions, and held the Department of Corrections section for later discussion. On the judicial side, members approved a technical footnote fix, but held a new contract counsel item for involuntary mental health admissions and deferred discussion of the public defender program increase. The committee also noted no change for the PE development authority, moved safety rest area funding from HB 2 into HB 1 with no additional cost, and flagged the tourism development fund and other judicial items as issues that may depend on overall available revenue.

Transcript Highlights:

• So, um, I appreciate the adjustments to the bill.
• So, um, I appreciate the adjustments to the bill.
• So, um, I appreciate the adjustments to the bill.
• So, um, I appreciate the adjustments to the bill.
• </c> our students make the adjustments our students make the adjustments necessary<01:39:46.639><c> to

Committee: Senate Education Finance

Transcript Highlights:

• And how would the county be able to fund increasing staff salary? >> Uh, I'm not sure.
• </c><00:57:41.520><c> their</c> companies were simply to adjust their companies were simply to adjust
• </c> private companies to adjust their MQs. private companies to adjust their MQs.
• We don't rely on general funds to employ and pay salaries and staff our divisions.
• to employ and pay salaries and and staff<02:43:15.280><c> our</c><02:43:15.760><c> divisions.

Bills: HB2118 , HB2473

Committee: House Economic Development & Technology

Summary: The committee heard several bills related to permitting and economic development. On HB 2603, relating to permits, the Office of Planning and Sustainable Development said it supported the measure with comments. Committee discussion focused on the fact that the state’s facilitated permit process appears to have been rarely or never used, the need to identify specific projects that would use it, and whether DBEDT would need dedicated staffing to administer it. DBEDT said it had found no projects under the current process, had no capacity to run the program as structured, and estimated it would need about 7 to 9 FTEs, including permitting, coordination, data, systems, and possibly legal support. The chair suggested exploring a staff assignment and comparing the concept to federal FAST-41-style expedited permitting. On HB 2140, relating to essential permitting positions, the Office of Planning and Sustainable Development again supported the bill with comments. Testimony and questioning centered on a pilot program to help counties pay competitively for permitting staff. A DBEDT representative said the issue of competitive pay affected both county and state permitting offices and that the bill was intended as a temporary pilot, though a more permanent solution would be preferable. When asked how counties would fund the salary support, the witness said that was not yet discussed with the counties and agreed to follow up. The committee also noted the bill applies to participating counties. On HB 2598, relating to the Hawaii Technology Development Corporation, the State Procurement Office and HTDC offered comments, and the Department of the Attorney General raised constitutional concerns. The AG said the bill’s residency-based certification requirements, when tied to procurement, could implicate the dormant Commerce Clause, and that the required 1% contribution tied to state contracts raised unconstitutional-conditions concerns. In questioning, the AG characterized these as legal risks rather than automatic lawsuits. The committee did not take a vote. The committee then heard HB 2141, relating to state enterprise zones. Taxation, DBEDT, HCDA, the University of Hawaii Cancer Center, and HTDC testified in support, while the Tax Foundation noted the program was intended to help economically depressed areas create jobs. HTDC said the bill would help preserve the Maui Research and Technology Center’s enterprise-zone status after rezoning. Committee discussion focused on whether the enterprise zone program is being used effectively, how the bill might attract businesses to areas where the state is investing, and whether the program’s labor requirements are too burdensome for new businesses. DBEDT explained that the program requires a 10% workforce increase in the first year, which must be sustained, and said it promotes the program through county coordinators and in-person outreach. No votes or final actions were taken in the portion provided.

Transcript Highlights:

• And if we start with this, maybe there'll be a better idea in a couple years and we can come and adjust
• </c><00:38:40.560><c> on</c><00:38:40.720><c> here</c> postgraduate uh salary on here postgraduate uh
• salary on here correct<00:38:43.480><c> s</c> correct s correct s Dam<00:38:45.359><c> so</c><00:38:
• </c><00:46:50.599><c> and</c><00:46:50.880><c> job</c> know things like salaries and job know things
• like salaries and job requirements<00:46:51.760><c> and</c><00:46:51.920><c> things</c><00:46:52.119>

Committee: Senate Higher Education

Transcript Highlights:

• Prior to this law, the state would often make accounting adjustments.
• The state regularly makes adjustments to the required deposits or withdrawals from that account within
• But if you're specifically concerned about this forecasting issue and this prior-year adjustment, then
• But if you're specifically concerned about this forecasting issue and this prior year adjustment, then
• You're probably hearing a lot about personnel costs, being pressured to increase salaries to keep up

Summary: The Assembly Budget Subcommittee on Education Finance held its first hearing of the year on Proposition 98, focusing on the Governor’s budget estimates for the three-year budget window, the Public School System Stabilization Account (PSSA), and repayment of education deferrals. The Department of Finance said the minimum guarantee would rise by about $21.7 billion over the 2025 Budget Act, with increases in each year, full repayment of the existing settle-up obligation in 2024-25, a new $5.6 billion settle-up obligation proposed for 2025-26, and a higher guarantee in 2026-27. Finance also noted revised downward estimates for transitional kindergarten attendance and Los Angeles County property tax reimbursements, and said community colleges would be funded above the split because of enrollment growth. The Legislative Analyst’s Office emphasized fiscal risk and volatility, warning that recent revenue gains are tied heavily to the stock market and tech sector and could reverse quickly. The LAO argued the Governor’s proposed $5.6 billion delay shifts risk into future years and recommended instead fully funding the current estimate, making a larger reserve deposit, considering advance payments or pension-related uses, and finding additional non-Prop 98 solutions to reduce the state’s structural deficit. On the reserve and deferral items, Finance described revised PSSA deposits and withdrawals that would leave about $4.1 billion in the reserve by 2026-27, and both Finance and the LAO supported paying off the remaining LCFF and SCFF deferrals as good fiscal practice. Committee members questioned the size of the settle-up amount, the degree of revenue volatility, the use of the reserve, and the ongoing K-12/community college split. Finance said the proposal is meant to avoid overappropriation if revenues fall, while the LAO said a buffer of roughly $3.5 billion would address typical forecasting risk. Public commenters, including school boards, county offices of education, teachers, and advocacy groups, largely opposed the $5.6 billion withholding or settle-up delay, calling it a manipulation of Prop. 98 and urging full funding and more stable revenue solutions. Several speakers also urged dedicated funding for students experiencing homelessness. The hearing ended with no vote, and the chair announced that broader program discussions would occur in later hearings.

Transcript Highlights:

• Right now I'm not sure this is adjusting a whole.
• So you need to now adjust to that and live with it.
• And make the adjustments.
• So you need to now adjust to that and live with it.
• If there's some adjustment there...

Committee: Joint Higher Education Funding Review Committee

Summary: The Higher Education Funding Review Committee met to continue work on a draft higher education funding formula and related capital building fund changes. Lisa Johnson of the North Dakota University System updated the committee on the board’s developing policy for low-producing academic programs. She said the board is using a five-year rolling window, with thresholds of fewer than 10 undergraduate graduates or fewer than 5 graduate graduates, and that programs flagged in three consecutive review cycles would go to the board for review. Possible outcomes include continuation, continuation with modifications, inactivation, or termination. Members asked about how the policy would account for enrollment, program costs, workforce need, and programs that serve students outside their major. Johnson said the board would likely use an accompanying procedure to consider those factors. She also reported that about 200 programs could potentially be reviewed under current guidance, with 135 inactivated and 112 terminated, and said the process is intended to support quality and stewardship rather than simply cut programs. Jamie Wilkie then reported on the Capital Building Fund. He reviewed the fund’s history, matching requirements, and use for extraordinary repairs, deferred maintenance, and some legislatively authorized projects. He said about $334 million in state and matching dollars has been invested overall, with roughly 78.7% going to deferred maintenance and extraordinary repairs. Committee members pressed for updated information on how much deferred maintenance has actually been reduced, and several members said they wanted clearer reporting on the return on investment from new buildings versus repairs. NDSU representatives said the tier funding has helped significantly reduce deferred maintenance and allowed demolition and renovation work on campus. The committee also discussed the need for updated five-year facility plans and space-utilization information from the institutions. The committee then began a section-by-section review of a draft bill that would replace the current higher education funding formula with an FTE-based model and restructure the capital building fund. The draft would fund UND and NDSU differently from the other nine institutions, use fall enrollment rather than completed credits, add performance funding for completions in in-demand fields, create research incentives for UND and NDSU, and combine capital building fund tiers while changing matching requirements and eligible uses. Members raised concerns about the treatment of professional students, the use of CIP codes, incentives for waivers, and whether the formula should rely on more current data. The committee did not take final action on the draft during this meeting, but it continued detailed discussion and indicated more review would follow.

Transcript Highlights:

• the rest of the universities send only some balance sheet activity monthly, and other activity is adjusted
• Then, at year-end, as mentioned previously, additional manual entries are done to adjust certain activity
• And as we transmit data to the state, we make adjustments to that data so that it can meet the required
• So, depending upon perspective, it could either be mission creep or reality adjustment as to original
• So we had to adjust for a significant increase in the Washington College Grant caseload.

Committee: Joint Joint Higher Education Committee

Summary: The Joint Higher Education Committee met with introductions from members and then held a work session on higher education and statewide accounting practices. OFM Deputy Director Sarah Rupp explained how state and university accounting/reporting differ, including current AFRS/SAM requirements and the transition to Workday/WAM, and described what higher education data are currently included in state reporting versus what will remain excluded, such as transaction-level detail and vendor payment information. University of Washington and Washington State University officials then described the complexity of their institutions’ financial structures, including multiple campuses, auxiliary enterprises, component units, hospitals, clinics, bonds, and other reporting obligations, and how they submit summarized data to the state while maintaining more detailed local accounting systems. The Education Research and Data Center also presented the public four-year finance dashboard created under Senate Bill 5512, emphasizing that the metrics are best used to examine trends within institutions rather than direct comparisons across schools; members asked about data availability and federal reporting delays, and ERDC said it was on track to update the dashboard with newer data and additional metrics. The committee then heard a presentation from the Washington Student Achievement Council on the Workforce Education Investment Account (WIA). Joel Anderson reviewed WIA’s creation under House Bill 2158, its revenue sources, and its intended purpose of supporting postsecondary attainment, high-demand fields, student aid, and workforce education. He said WIA revenue has grown substantially, especially after recent tax changes, and noted that most current appropriations go to higher education, including the Washington College Grant, community and four-year institutions, and some workforce-related programs. Members asked whether WIA supports apprenticeships and trades, and Anderson said it has in some cases, though nearly all current appropriations are now within higher education. Anderson also highlighted a major policy shift in the 2025-27 budget: WIA is now being used to supplant some general-fund higher education spending, especially a large transfer for University of Washington general operations. He said this has reduced the general fund share of higher education funding and increased the share from WIA, raising concerns about whether the account is still being used as originally intended. He also described how WIA is increasingly covering Washington College Grant caseload growth and faculty compensation costs, and said WSAC is working to improve public documentation of ongoing and carry-forward appropriations. The committee did not take any substantive votes on the presentation topics and then moved toward executive session and adjournment.

Transcript Highlights:

• the rest of the universities send only some balance sheet activity monthly and other activity is adjusted
• Then, at year-end, as mentioned previously, additional manual entries are done to adjust certain activity
• And as we transmit data to the state, we make adjustments to that data so that it can meet the required
• So we had to adjust for a significant increase in the Washington College Grant caseload.
• And then from the 2025–27 operating budget, you see an adjustment or a decrease of $500,000.

Committee: Joint Joint Higher Education Committee

Summary: The Joint Higher Education Committee met for a work session on higher education accounting practices and financial transparency. OFM Deputy Director Sarah Rupp explained how state accounting rules and higher education reporting differ, including what data is captured in AFRS today and what will move into Workday, with universities generally reporting summary-level fund data, mandatory codes, and most balance sheet and income statement activity, but not transaction-level detail or vendor payment information. Representatives from the University of Washington and Washington State University described the complexity of their own accounting systems, the many entities and business lines they must track for audits and compliance, and the need to reconcile university-level accrual accounting with state reporting requirements. The committee also heard from the Education Research and Data Center on the public four-year finance dashboard created under Senate Bill 5512; ERDC said the dashboard is based on publicly available data, is best used to examine institutions individually rather than compare them directly, and will be updated with additional metrics in 2025 and 2026. The committee then received a presentation from the Washington Student Achievement Council on the Workforce Education Investment Account (WIA). Joel Anderson reviewed WIA’s creation under House Bill 2158, its revenue sources, and its intended uses for higher education, financial aid, and workforce development. He said recent legislation significantly increased WIA revenues and that, in the 2025–27 budget, the account is being used in new ways, including to replace general fund support for University of Washington operations and to fund a larger share of the Washington College Grant and some faculty compensation costs. Anderson said roughly 98% of current WIA appropriations go to higher education, but the share used to supplant other higher education funding has grown, and he estimated about 60% to 70% of current spending still aligns with the account’s original intent. He also described a new effort to track WIA appropriations across biennia in more detail and noted the WIA Oversight Board’s role in recommending uses of the account and monitoring outcomes. No votes were taken; the committee ended by moving into executive session for staffing issues and then adjourned.

Transcript Highlights:

• An act relating to adjusting the price of a cash transaction to eliminate the need for pennies.
• It saves the Department of Commerce about the cost of a legislator's salary, and it saves even more money

Bills: SB6061 , SB6234 , SB6176 , SB6335 , SB6047 , HB2235 , HB2464 , HB2619 , HB1376 , HB1796 , HB2091 , HB2249 , HB2353 , HB2431 , SB5808 , SB5949 , HB2124 , HB2104 , HB2624 , HB2510 , HB1347 , HB1759 , HB1983 , HB2120 , HB2264 , HB2338 , HB2385 , HB2436 , HB2495 , HB2521 , HB2604 , HB2610 , HB2675

Keywords: tourism, self-supported assessment, funding, statewide promotion, economic development, sewage, grinder pumps, residential buildings, regulation, construction, vehicle registration, enforcement, renewal, transportation, state law, state commission, infrastructure, traffic safety, responsibilities, state capital projects

Summary: The Senate considered and passed several House bills. HB 2624, relating to consumer protections for unsolicited real estate transactions for public purposes, was amended with a striking amendment from the Business, Trade, and Economic Development Committee and then passed 30-18, with Senator Dozier voting no and saying the bill still needed work. HB 2104, which makes permanent aviation assurance funding for wildfire response by removing a sunset clause, passed 47-0 with two excused after Senator Short urged support based on its wildfire-fighting value. The Senate also adopted an amendment to Substitute HB 2334, which addresses cash transactions and rounding to eliminate the need for pennies, adding language that customers with exact change must be able to pay exact change. The bill passed 45-2, with Senator Frame describing it as permissive guidance for businesses and Senator Dozier supporting it humorously; Senator Gainer voted no. HB 2436, concerning requirements for oil tankers operating in restricted waters and clarifying tugboat horsepower standards to match current practice, passed 46-1 after support from Senator Lovelett and Senator King. Finally, Engrossed HB 2575, reducing certain reporting obligations under environmental or energy laws, passed 47-0 with two excused. Senator Schumaker said it would save administrative costs for the Department of Commerce and utilities and free up money for low-income energy assistance. The Senate then adjourned until the next day.

Transcript Highlights:

• To 3% and make some minor adjustments to how some assessment ranges are applied in rural counties.
• A $20 raise, and my boss says, I can only raise your salary by $10, and me coming back and complaining
• that he cut my salary.
• So I'll adjust that here in a minute. But just refresh everyone's memory.
• It also ensures that the exemption amounts keep pace with inflation by requiring periodic adjustments

Transcript Highlights:

• I spent a lot of time trying to adjust that.
• I spent a lot of time trying to adjust that.
• </c><04:04:58.279><c> and</c> positions and benefits and salaries and positions and benefits and salaries
• And is this list as salaries only, or is this salary plus benefit?"
• And is this list as salaries only, or is this salary plus benefit?"

Summary: The committee heard an overview from the Agriculture Commissioner on the department’s major divisions and staffing. He described the Office of the Commissioner, Agricultural Development, Pesticides, Regulatory Services, Weights and Measures, Animal Industry, Plant Industry, and Soil Conservation, noting that many programs are federally funded or supported by dedicated fees and fines. He said the department has 44 full-time positions plus one DoIT employee shared with other agencies, and that HR services are now contracted through Administrative Services. He also explained that Soil Conservation is administratively attached to the department and funded through Moose Plate grants and county contributions, not direct state funding. Members asked about specific program functions and issues, including weights and measures inspections, animal health, bird flu response, internships, invasive species, and the Big E/New Hampshire building. The commissioner said weights and measures covers nearly all commercial measuring devices and products sold by weight, and that inspectors are currently part-time police officers, though the department is discussing removing that requirement. He said the department is actively involved in bird flu monitoring, including regular calls with USDA and the state veterinarian and collecting milk samples from dairy farms. On invasive species, he focused on Japanese knotweed and bittersweet, saying the department has only one staff person working on the issue, mainly as a coordinator with DOT and towns, and that eradication is extremely difficult. He also said the department does not run student internships and refers inquiries to UNH Cooperative Extension. The committee discussed budget and revenue issues, including three new general fund positions, one of which is the assistant commissioner and another a biological scientist for invasive species. The commissioner said the department had been in “triage mode,” that an assistant commissioner was needed because of workload, and that the department is a net positive to the General Fund each year. He said some fees and fines have not been updated in decades and would require legislation to change, including a proposed $5 fee for each animal database certificate to help fund a system that costs about $250,000 annually to maintain. In response to questions about budget reductions, he said the department protected personnel, reduced the cost-of-care fund, fair grants, and land preservation funding to about $25,000 each, and did not plan to buy new vehicles or computers. He also said he could not support including the $50,000 Conservation District resilience grant program in his budget under the current reduction targets, though he remained hopeful it might be funded another way.

Transcript Highlights:

• recognizing the need to be nimble and responsive when experience, feedback, or new needs require adjustments
• Rolling back salaries was not a popular decision. And so in the 1990s, our board hired a visionary.
• And then we adjust. And so, but it is one reporting model. It comes into cabinet.
• But it forces looking at that multi-year plan and what our sites are doing and having to make adjustments
• Second, the state must adjust the LCAP timeline to enable more time for the public to review and provide

Transcript Highlights:

• would reduce the general fund appropriation by about $21 million starting in fiscal year 2027 by adjusting
• So if, indeed, say on the Department of Commerce, for example, we wanted to make an adjustment... ...
• if, indeed, say on the Department of Commerce, for example, we wanted to make an adjustment there, how
• So my guess is then what you're saying to me is a motion could be brought separately to make adjustments
• So my guess is then what you're saying to me is a motion could be brought separately to make adjustments

Summary: The Joint Finance-Appropriations Committee began with recognition of two outgoing pages, who described their experiences working at the Capitol and their plans for college and law school. The committee then received a general fund budget update from Legislative Services analyst Christopher LaHosette, who explained the green sheet, noted that the governor’s enhancement requests are effectively larger because of prior cuts, and highlighted policy bills tied to budget reductions, including House Bill 622 for IDLA and Senate Bill 1312 for Medicaid. Senator Wintrow asked about how agencies already filled out on the budget sheet could still be adjusted, and LaHosette said an agency would need to be added to the agenda before a motion could be made. The committee then acted on several budgets. It approved a $17,800 reimbursement to the Military Division for hazardous materials costs, but rejected a larger Military Division enhancement package after debate over restoring the State Education Assistance Program for guardsmen and concerns about budget process and ending balances. The committee approved Percy’s $2.6 million dedicated-funds request for pension software, continuity planning, and replacement items. It also approved the Division of Veterans Services budget, including new equipment, replacement items, federal IT hardware, and reappropriation authority for veterans’ home construction and renovation funds. A proposed intent language item for the Division of Veterans Services, directing the legislature to add $36,200 ongoing in fiscal year 2028 for cemetery maintenance, failed after members said it could not bind a future legislature and that the intent was only to signal future attention. The committee then approved the Commission for the Blind and Visually Impaired enhancement request and accepted language directing the agency to prioritize site restoration services. It also approved a small Vocational Rehabilitation lease increase for the Council for the Deaf and Hard of Hearing, and later approved the State Tax Commission’s $765,300 supplemental for federal tax conformity implementation, along with a larger enhancement package for property tax education, GenTax automation, personnel, replacement items, seasonal employees, and OITS hardware. The committee accepted language restricting one Tax Commission item to fast tax collection vendor payments and requiring any unused amount to revert to the general fund. Finally, the committee adopted technical corrections to previously approved maintenance bill language for the Legislature and the State Board of Education, including fixes to transfer authority and year references. The chair announced that the committee would hear budget presentations for the Department of Water Resources and the Soil and Water Conservation Commission on Monday, with no votes scheduled, and then adjourned.

Transcript Highlights:

• This includes all funds for health insurance, discretionary dollars, and all salary and benefits for
• So this next slide highlights what the governor's adjustments are to get to that goal.
• So this next slide highlights what the governor's adjustments are to get to that goal.
• So this next slide highlights what the governor's adjustments are to get to that goal.
• And what you see on line five is that number being adjusted down in accordance with the fiscal notes

Committee: Senate Education

Transcript Highlights:

• My question is, again, from last year, from what was mentioned, the salaries are well paid for signs,
• The salaries are well paid for signs, right?
• Can you give us those salaries again so we can try our best to get that out to folks?
• , wage adjustments.
• So are you paying the salary of the person at the private attorneys? Yes, at the rate...

Committee: Joint Joint Committee on Ways and Means

Transcript Highlights:

• They doubled the salary of the new EVP of finance in just their budget increase.
• Thank you, members. incentives on top of an annual salary of incentives on top of an annual salary of
• He got a base salary of 750,000 Goldman.
• </c> voted on next week, base salary 675,000. voted on next week, base salary 675,000.
• </c><02:17:23.120><c> uh</c> along with the operating adjustment uh along with the operating adjustment

Transcript Highlights:

• As we see here, the non-inflation-adjusted spending has gone up by about $5 billion over this period,
• but the inflation-adjusted spending has come down slightly.
• When we adjust that for inflation, we still see an increase of about $50,000.
• But when we adjust that for inflation, the increase is about $50,000, or 68%. Okay.
• So as the population goes up or down, it’s adjusted.

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held a hearing on the California Department of Corrections and Rehabilitation (CDCR) budget, with a focus on prison population trends, spending, facility closures, and efforts to find savings. The Legislative Analyst’s Office (LAO) presented data showing the prison and parole populations have fallen sharply over the past 20 years while CDCR spending has remained high, driven largely by security, health care, litigation-related requirements, and aging infrastructure. The LAO also said the state is likely to have several thousand empty beds by 2030 and recommended closing another prison, identifying the Correctional Training Facility in Soledad as the strongest candidate, while also urging more transparency around facility deactivations and the Boston Consulting Group (BCG) efficiency contract. CDCR Secretary Jeff McCumber said the department faces structural budget pressures from retirement payouts, workers’ compensation, overtime, medical transport, aging facilities, and violence in prisons, but emphasized declining recidivism, expanding reentry beds, and the need for more single-celling and rehabilitation. Department of Finance representative Anthony Franzoa said the administration is not proposing another prison closure at this time, opposed new reporting requirements on deactivations, and said the BCG contract is intended to produce long-term savings even if near-term estimates are being revised downward. Amber Rose Howard of California United for Responsible Budget argued the state should close more prisons, redirect funds to community services, and stop spending on excess prison capacity. Members questioned why CDCR still relies on vacancy savings, why rehabilitation is only a small share of the budget, and whether the department should be more transparent about capacity reductions and legal liabilities. Several members criticized the $20 million BCG contract and the lack of competitive bidding, while others pressed CDCR on staffing levels, single-celling, suicide prevention, and health care costs for older incarcerated people. The hearing did not take a formal vote, but it ended with clear committee concern about CDCR’s budget transparency, the pace of prison closures, and the need to align spending more closely with the declining prison population and the department’s stated rehabilitation mission.

Transcript Highlights:

• Or like the judge's salary.
• But after you adjust that number for inflation, now it puts that budget in real dollar terms.
• And so I've adjusted line two, the mint green highlight that I've set aside for everyone, adjusted that
• So the line two adjusts the revenue number for the conformity bill, making the assumption.
• So the line two adjusts the revenue number for the conformity bill, making the assumption.

Committee: Senate Judiciary and Rules

Transcript Highlights:

• Going back to the slide where we're discussing operating adjustments and employee contracts, how are
• In terms of our operating adjustment, our operating adjustment projections do not include any additional
• The only thing that's included in the operating adjustment calculations that we do are step increases
• Operating adjustment calculation.
• The operating adjustment is based on our current staffing complement. Thank you.

Committee: House Environment and Natural Resources Finance and Policy