Transcript Highlights:

• Potential funding, federal funding impacts.
• Some of our direct impacts are already being experienced through federal funding.
• I have a question generally about federal funding.
• I just have a general question here about federal funding.
• The whole idea was that if we had projects and our state did fund projects, then that generated federal

Summary: The Joint Committee on Veterans and Military Affairs met with opening introductions from members, many of whom noted military service or ties to Joint Base Lewis-McChord and other installations. The committee then heard from JBLM Garrison Commander Col. Ken Park, who said the base’s top priorities remain housing, child care, and spouse employment, while also warning about federal personnel reductions that eliminated about 283 civilian authorizations at JBLM. He said the biggest operational impacts are on air traffic control, 911 dispatch, and firefighting, which may require more mutual aid with local agencies during fire season. He also discussed the Army Transformation Initiative, saying JBLM will likely see some units leave and others arrive, with no expected major net growth or loss. In response to questions, he confirmed the Lewis Army Museum is slated for closure no earlier than 2027, but said the building will remain in use for training and that the base is exploring partnerships and possible extended public access hours in the meantime. Jim Baumgart of the Washington Military Department reported that about 400 Washington National Guard members are deployed on federal missions, and that the Guard continues state missions in cybersecurity and wildfire response. He said the 81st Stryker Brigade will transition to a Mobile Combat Team as part of Army transformation, with possible changes to end strength and equipment. He also warned that continuing resolutions are delaying military construction and may increase costs, and said federal changes to cooperative agreements could raise the state share. Members asked about capital projects and tribal coordination, and Baumgart said two capital projects are in the supplemental budget and that the department recently hosted a convening of tribal police chiefs at Building 81. WDVA Director David Puente described significant state budget reductions, including a $3.2 million cut package, a 50% reduction in VCC internships, vacant position eliminations, reduced travel, and cuts to counseling, wellness, and veterans innovation funding. He said the agency is ending its in-house nursing assistant academy, the veteran farm at Orting, Vet Corps positions tied to AmeriCorps funding, and the tobacco cessation program unless alternative funding is found. He also noted that the legislature funded all of WDVA’s capital requests, including money for the Spokane veterans home replacement, a second state veterans cemetery, and HVAC work at Port Orchard. Members raised concerns about suicide prevention and federal VA staffing cuts, and Puente said WDVA will continue tracking data and working with partners on those gaps. Mike Cahill of the Department of Commerce reviewed the Defense Community Compatibility Account, explaining that it funds projects that reduce incompatibility between military installations and nearby communities and can help leverage federal DCIP dollars. He said the program has 10 funded projects across five districts, with nearly $50 million in state funding supporting more than $200 million in total project costs, and highlighted projects including Oak Harbor school and child care improvements and the Everett Joint Firefighting Training Center. He also said the state’s “last dollar in” approach can make it harder for projects to secure federal matching funds, and he will continue outreach and technical assistance. In closing discussion, members raised possible future topics for the committee, including Navy Day, a possible driver’s license designation issue for Guard and Reserve members, child care near bases, veteran homelessness, suicide prevention, and support for service members facing legal or educational concerns related to federal policy changes. The meeting adjourned after members were asked to send additional agenda ideas for the October and December meetings.

Transcript Highlights:

• these positions with state transportation funding instead of the general fund. rationale to fund these
• positions with state transportation funding instead of the general fund.
• be 100% funded by the General Fund.
• More sustained General Fund support is needed.
• This will impact Tier 3 funding, which includes welfare funding, affordable housing funding, as well

Summary: The hearing focused on the governor’s May Revision proposals for transportation, natural resources, climate, and related programs, with the Department of Finance and the LAO presenting competing views on the state’s fiscal condition. Finance said the budget remains balanced over two years, with major climate-bond, water, parks, transportation, DMV, and agriculture proposals, while the LAO argued the state still has a structural deficit and should reject or defer many new discretionary spending items, preserve reserves, and be cautious about ongoing commitments. The LAO specifically questioned the timing and scale of new spending for programs such as Clean California, Healthy Rivers and Landscapes, and the Golden Gate Fields acquisition, and urged more clarity on future obligations and revenue scenarios, including for the Greenhouse Gas Reduction Fund. A major portion of the hearing was devoted to the Healthy Rivers and Landscapes proposal for Bay-Delta water quality implementation. Secretary Wade Crowfoot and Finance described it as an enforceable, science-based alternative to a more traditional regulatory approach, with the state’s $25 million request intended to support early implementation, monitoring, habitat restoration, and environmental flows. The LAO countered that the Water Board has not yet adopted the updated Bay-Delta plan, that the proposal may be premature, and that the Legislature should wait for more information on the state’s total funding commitment and the program’s long-term costs. Several members expressed support for the program as a way to reduce conflict and protect water reliability, while others echoed concerns about timing and fiscal exposure. The committee also examined the proposed $125 million Proposition 4 contribution toward acquiring the Golden Gate Fields property for a shoreline park and habitat project. State officials said the acquisition is a time-sensitive, once-in-a-generation opportunity, with an appraised value of $175 million and additional philanthropic and local funding expected to close the gap. Members questioned whether the project had gone through the usual competitive process, whether the site is the best use of scarce park bond dollars, and how public access, habitat, and disadvantaged-community priorities would be protected. The discussion ended without a vote, and the committee moved on to transportation items including Clean California litter abatement, the Games Route Network, homeless encampment coordinators, and DMV modernization and field office proposals, with LAO recommending rejection or delay on several of those requests as well.

Transcript Highlights:

• has allowed the state to address environmental liabilities without relying on the general fund.
• be argued that any of these taxes are diverting from the general fund.
• So would I be correct in saying there is no significant impact on the general fund?
• I just thought it was interesting that this says it diverts from the general fund.
• It was the purpose was not to go to the general fund. It was to go to plugging wells. I also, Mr.

Committee: House House Energy, Environment & Natural Resources

Transcript Highlights:

• General Fund.
• And we don't think this had a detrimental impact on the General Fund revenue created by, generated by
• the General Fund, you know, the total General Fund-generated revenue for the state.
• revert to the General Fund instead of spending them for this purpose, those same General Fund dollars
• revert to the General Fund instead of spending them for this purpose, those same General Fund dollars

Summary: The subcommittee first heard an informational overview from the Governor’s Office of Service and Community Engagement (GoServe), including California Volunteers, the Office of Community Partnerships and Strategic Communications, and the Youth Empowerment Commission. GoServe reported strong participation in programs such as California Service Corps, College Corps, Youth Service Corps, Climate Action Corps, and the new men’s service challenge. Testimony emphasized enrollment, retention, and completion outcomes, outreach results, and efforts to reduce administrative costs. The Department of Finance said the administration supports the programs but has already made reductions to help address the budget deficit, while the LAO said it had no new recommendations on the informational item. Committee members raised questions about program scale, demographics, and effectiveness, especially for Climate Action Corps and whether the programs are duplicative of existing volunteer opportunities. One member criticized the programs as too fragmented and costly, while others asked for more data on who is being served and whether the programs increase actual participation in state services. GoServe said it would follow up with demographic and regional impact information. The committee also discussed the men’s service challenge, which GoServe said has formed partnerships with organizations such as YMCAs and Big Brothers Big Sisters and has already attracted more than 2,000 participants. The item was informational only. The committee then heard a BOE overview and a budget request to implement SB 293, which gives wildfire-affected families additional time to claim intergenerational Prop. 13 property tax transfers. BOE requested $154,000 for guidance, public materials, and inquiry response, explaining that the work is urgent and tied to disaster relief in Los Angeles County, especially Altadena. The LAO had no concerns, and Finance had no comment. Members asked how many cases might be affected and whether more funding would be needed later; BOE said the full number is not yet known and that future requests are possible. The committee also heard BOE’s IT modernization proposal for the state-assessed property tax system, a 30-year-old mainframe replacement costing $3.2 million in 2026-27 and $3.1 million in 2027-28. BOE and Finance supported the project as necessary, while the LAO said it had no concerns but urged a high bar for new IT spending. Members generally supported modernization but cautioned about implementation risk. Finally, CDTFA presented an overview and two policy proposals. The department described administering 42 tax and fee programs, collecting $98 billion in FY 2024, and improving administrative efficiency. Members then discussed local sales tax tools and revenue-sharing agreements, with concerns raised about transparency, consultant-driven tax allocation disputes, and the impact on local communities. CDTFA and the LAO explained that local jurisdictions control how district sales tax revenues are spent and noted the Legislature could revisit the statutory cap on local add-on sales taxes. The committee then heard CDTFA’s proposal to treat all delivery network companies as marketplace facilitators so they must collect and remit sales tax on delivery-app orders. CDTFA said the change would resolve confusion, shift compliance from thousands of small restaurants to a few large platforms, and raise about $44 million annually. Several members questioned whether the proposal would effectively raise consumer costs and whether it would create a competitive advantage or disadvantage among delivery platforms. The item remained under discussion, with no vote taken in the transcript.

Transcript Highlights:

• Changes to this funding have severe impacts on people currently being served and housed in our county
• Notably, changes to funding rules for permanent supportive housing could impact up to 500 households
• The two-year total fund impact is $174,000, and the four-year general fund impact is zero. 5% to a veteran
• So in terms of fiscal impact, the two-year total fund impact is $174,000 and the four-year general fund
• It's a different fund source than the general fund state.

Bills: SB6256 , SB6275 , SB5868 , SB5954

Committee: Senate Ways & Means

Keywords: tax exemptions, affordable housing, nonprofit, unoccupied property, housing policy, community reinvestment, economic development, local investment, financial assistance, SB 5868, superior court, judge, judgeship, judicial vacancy, court administration, Skagit County, Yakima County, RCW 2.08.061, Washington courts, county judges

Transcript Highlights:

• So we are requesting $231 million General Fund in 2026-27, growing in fiscal years 2027-28 for counties
• Fund in the budget year, growing to $1.1 billion General Fund ongoing.
• But while this is a large impact in other states, in California this population is generally covered
• Many UIS adults may not have, and yet the state would have to bear a lot of the 100% General Fund costs
• We request that the Legislature fight any further funding cuts impacting the undocumented populations

Summary: The Assembly Budget Subcommittee on Health held a hearing on the impacts of H.R. 1 and related federal actions on Covered California, Medi-Cal, and immigrant access to care. The chair framed the discussion around three main issues: expected losses in marketplace coverage as enhanced federal premium subsidies expire, new federal work and renewal requirements that would add administrative burden to Medi-Cal, and the loss of eligibility for certain lawfully present immigrants. Covered California testified that H.R. 1 and new federal rules, combined with the end of enhanced premium tax credits, are driving higher premiums, lower new enrollment, and more cancellations, especially among middle-income, Latino, and Black enrollees. The agency said California’s $190 million state subsidy program is helping lower-income enrollees but cannot replace the lost federal assistance, and it noted that roughly 120,000 lawfully present immigrants in Covered California will lose federal tax credits in 2027. On Medi-Cal, the Department of Health Care Services said H.R. 1 will require work and community engagement verification, six-month renewals for certain adults, and other changes that the department expects will reduce enrollment substantially. DHCS estimated 233,000 members could lose coverage by June 2027 from the work requirement and 289,000 from six-month renewals, with losses rising much higher by 2028; it also said it is using automation, outreach, clinic navigators, coverage ambassadors, community health workers, and street medicine providers to reduce procedural disenrollments. The department described a two-phase outreach plan and said it is working with counties on implementation, while the Department of Finance said the Governor’s budget maintains $190 million for the state subsidy program and does not propose additional changes at this time. The LAO said its independent forecast is somewhat higher than the administration’s, estimating about 2.1 million fewer Medi-Cal enrollees by June 2028, and urged the Legislature to review county administrative workload and readiness. Public testimony and member comments focused on the human and fiscal consequences of coverage losses. A representative from the Sacramento Native American Health Center warned that reduced reimbursement and coverage losses would destabilize community health centers, increase uncompensated care, and worsen outcomes by pushing patients into emergency care. Members raised concerns about paperwork burdens, county capacity, outreach effectiveness, and whether the state should do more to preserve coverage, including possible modeling of additional H-CARF spending and support for middle-income consumers and immigrant enrollees. The hearing did not take any votes or formal actions, but it ended with public comment and continued discussion of implementation and budget options.

Transcript Highlights:

• ongoing General Fund support.
• For UC, this reduction amounts to approximately $396.6 million in ongoing General Fund support.
• For CSU, this reduction equals about $375.2 million in ongoing General Fund support.
• There is also a $162.5 million investment of Proposition 98 General Fund dollars.
• The freeze in funding or cuts. would impact our growth on all of our campuses.

Transcript Highlights:

• and $406 million from the general fund to the state unemployment insurance trust fund to replenish funds
• for</c> um to the general fund, and that's for um to the general fund, and that's for the<00:36:23.480
• </c><00:36:51.920><c> and</c> forward fund to the general fund and forward fund to the general fund and
• Line 19 displays a one-time fund transfer into the general fund from the special revenue fund.
• :25.520><c> as</c> and into the general revenue fund as and into the general revenue fund as indicated

Committee: Senate Finance

Transcript Highlights:

• </c><00:07:05.599><c> and</c><00:07:05.840><c> the</c> the impact on the road fund and the the impact
• The impact on the road fund reduction.
• <00:08:11.039><c> that</c><00:08:11.280><c> is</c> impact to the road fund that is impact to the road
• </c><00:19:26.320><c> for</c> general funds that were utilized for general funds that were utilized for
• General fund just to make things whole, if you will.

Committee: Joint Transportation

Transcript Highlights:

• Jurisdictions have been incredibly creative, relying on funding from the department and other funding
• Our work is funded through about 20 different fund sources. Many of these are special funds.
• substances control account, which are funded by payments of the generation and handling fee and environmental
• substances control account, which are funded by payments of the generation and handling fee and environmental
• And really supporting small nonprofits that often don't have funding, ongoing funding.

Summary: The Senate Budget Subcommittee No. 2 on Resources, Environmental Protection and Energy heard budget overviews and several budget change proposals from CalRecycle, CalEPA, and DTSC. CalRecycle outlined its proposed 2026-27 budget of 987 positions and $1.9 billion, and members focused on edible food recovery funding under SB 1383, beverage container recycling fees and infrastructure under SB 1013, plastic packaging reduction under SB 54, and composting implementation under SB 279. CalRecycle said edible food recovery has recovered more than 300 million meals but lacks ongoing funding, explained that beverage container processing fees are set by statute and reflect higher recycling costs for difficult-to-recycle materials, and noted that SB 54 implementation will include a pollution prevention mitigation fund for legacy plastic cleanup. The committee also discussed the need for more composting capacity and the role of volunteer cleanup groups, while public commenters urged continued funding for food recovery, composting, and landfill response. CalEPA presented its department overview and a proposal to strengthen landfill response and enforcement, emphasizing climate, air quality, water, and cleanup priorities. Secretary Garcia described the agency’s work on methane monitoring, toxics reduction, drinking water compliance, Exide cleanup, pesticide alternatives, and implementation of AB 617, while also noting the agency’s response to federal rollbacks. Members pressed CalEPA on landfill fires and subsurface elevated temperature events, especially at Chiquita Canyon, asking about authority, scientific resources, and when intervention should occur. CalEPA said it has authority to respond but needs more coordinated technical and enforcement capacity, and later presented a $5.1 million, 12-position multi-agency proposal involving CalEPA, CalRecycle, DTSC, and the Water Board to address current landfill events and improve future prevention and response. DTSC and the Board of Environmental Safety presented several proposals tied to reform implementation, hazardous waste oversight, and emerging waste streams. DTSC reported progress in clearing its permit backlog, advancing safer consumer products regulations, and continuing Exide cleanup, while seeking additional resources for cost recovery and enforcement, PFAS work, recycling infrastructure for solar panels and lithium batteries, and a new statewide planning division to implement the hazardous waste management plan and consolidate reporting systems. The Board of Environmental Safety described its oversight role, public meetings, permit appeals process, and fee-setting authority, and said its priorities include permit appeals, hazardous waste plan oversight, and performance metrics. Members questioned whether DTSC was creating too many new subdivisions, but the department said the new structure is needed to handle growing workload and modernize regulation. Public testimony generally supported the landfill proposal, DTSC consumer product enforcement, water board staffing, and continued funding for food recovery and composting programs.

Transcript Highlights:

• Republicans in Congress have specifically delayed this impact until after the general election, as our
• Republicans in Congress have specifically relayed this impact until after the general election, as our
• accounts for generating additional funds for students who are low-income, foster youth, and English
• H.R. 1 will decimate home care and child care, impacting the state's general fund and severely limiting
• HR1 will decimate home care and child care impacting the state's general fund and severely limiting Medi-Cal

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held its fifth hearing of the year to examine the newly enacted federal H.R. 1 and its effects on California. Members and the chair described the law as a major threat to state health, food, education, and climate programs, and emphasized that California would not be able to fully backfill the federal cuts. Several members also highlighted the bill’s tax provisions, including temporary deductions for tips, overtime, seniors, and auto loan interest, while warning that the largest benefits flow to higher-income taxpayers and that major cuts to Medi-Cal, CalFresh, and clean-energy incentives are delayed or phased in over time. The Legislative Analyst’s Office and the Department of Finance presented detailed overviews of the bill’s likely impacts and implementation timelines. They identified the main affected areas as health care coverage and financing, food assistance, higher education, personal income taxes, and clean-energy/electric-vehicle credits. They explained that H.R. 1 limits provider taxes used to finance Medi-Cal, adds work and redetermination requirements, restricts CalFresh eligibility and increases state costs, changes student loan and Pell Grant rules, extends and modifies federal tax provisions, and phases out many clean-energy credits. Finance also noted major rescissions of Inflation Reduction Act funds, new border and immigration enforcement spending, and the possibility of PAYGO sequestration if Congress does not act to offset the deficit increase. During member questions, the committee focused on likely enrollment losses, administrative burdens, and fiscal exposure for the state and counties. Witnesses said many details still depend on federal guidance, but they estimated significant impacts on Medi-Cal, CalFresh, and graduate/professional student borrowing, and noted that California’s high CalFresh error rate could increase state costs. UC testified that the elimination of Graduate PLUS loans would affect thousands of professional students, especially in health, law, and other high-cost programs. Members asked for follow-up data on county, health, and tax impacts, and staff agreed to provide additional tables and estimates as implementation guidance becomes clearer. Public commenters from counties, early childhood advocates, health coalitions, disability rights groups, immigrant-rights organizations, and other stakeholders urged the Legislature to mitigate the law’s effects. They warned of higher county costs, reduced access to health care and food assistance, increased administrative burdens, and harm to children, immigrants, people with disabilities, and low-income families. Several urged new state revenue solutions and stronger protections for Medi-Cal, CalFresh, child care, and home- and community-based services. No votes were taken; the hearing was informational and ended with a commitment to continue monitoring federal guidance and to work on state responses in the budget process.

Transcript Highlights:

• Changes to this funding have severe impacts on people currently being served and housed in our county
• So in terms of fiscal impact, the two-year total fund impact is $174,000 and the four-year general fund
• It's a different fund source than the general fund state.
• So in terms of fiscal impact, the two-year total fund impact is $174,000 and the four-year general fund
• It's a different fund source than the general fund state.

Summary: The committee held a public hearing on a series of housing, education, workforce, and court-related bills. On Substitute Senate Bill 5884, staff described changes to a sales and use tax deferral for redeveloping vacant or underused land into affordable housing, including broader eligible property definitions and lower affordability thresholds in designated areas. Testimony was mixed: builders opposed language they feared could encourage project labor agreements, while Spokane and Kent representatives supported the bill but asked for flexibility on affordability mix requirements. On Senate Bill 6256, which expands a property tax exemption for nonprofit low-income rental housing to include certain co-located community uses during construction and extends the pre-construction exemption period, testimony was strongly supportive from housing nonprofits and local housing partners, with questions focused on clawback provisions. The committee also heard Substitute Senate Bill 6027, which expands allowable uses of local housing and supportive housing sales tax revenue, adjusts a REET exemption timeline, broadens emergency housing definitions, and changes use of the Affordable Housing for All account. County, housing, and nonprofit witnesses said the bill would help preserve housing and services amid federal funding uncertainty, though Snohomish County asked for an amendment to allow rental assistance. Substitute Senate Bill 6018 would revise the Housing Finance Commission’s authority, including direct lending and bond counsel terms; commission staff said it would modernize outdated restrictions and improve financing flexibility. Substitute Senate Bill 6028 would create a revolving loan fund for mixed-income homeownership projects; supporters said it would help smaller infill projects pencil, while staff noted the loans would be subordinate and carry some risk. Later, the committee heard Senate Bill 6275 on the community reinvestment program, which would require periodic plan updates, reporting, and a WSIPP study, while also expressing legislative intent to continue at least $100 million annually in the account. Advocates, workforce groups, legal aid providers, and small business owners testified that the program supports communities harmed by past disinvestment and should be made permanent and more accountable. Substitute Senate Bill 5961 would move the Imagination Library program from DCYF to OSPI; early literacy advocates and local partners supported the transfer as better aligned with school readiness. Substitute Senate Bill 5969 would integrate IEP transition plans with high school and beyond plans, and a prior critic said amendments addressed her concerns. Second Substitute Senate Bill 5292 would shift PFML premium rate-setting to the annual actuarial report and raise the reserve target; labor and industry witnesses supported the change, while a policy group opposed the program’s costs. The committee also heard Senate Bill 5868 to add one superior court judge each in Skagit and Yakima counties. Judges and county officials testified that caseloads, population growth, and backlogs justify the additions, and county leaders said they had already budgeted for their share. Finally, Substitute Senate Bill 5827 would allow service members to use pre-discharge certification to claim veterans’ civil service preference; the sponsor said it would solve a timing problem for transitioning service members. No votes or final committee actions were taken in the transcript, as the meeting consisted of bill briefings and public testimony.

Transcript Highlights:

• This would increase local employer cost and near general fund cost for all LEOFF 2 employers, and the
• These changes are generally revenue neutral and do not impact state or local tax collections.
• All revenue from the OTP tax is deposited to the state general fund.
• The maximum distribution amount Each fiscal year must be deposited to the state general fund.
• The financial crisis in 2008 found these funds swept away for the general fund, and since then our funding

Bills: SB6073 , SB6113 , SB6116 , SB6129 , SB6162 , SB6114 , SB5857

Committee: Senate Ways & Means

Keywords: SB 6073, LEOFF, Law Enforcement Officers' and Fire Fighters' Retirement System, retirement system, pension, public safety retirement, wildland firefighter, aviation firefighter, wildland fire, forest firefighter, Department of Natural Resources, DNR, firefighter benefits, retirement benefits, service credit, disability retirement, survivor benefits, employer contributions, Washington RCW, public employees

Transcript Highlights:

• More broadly, we see drawbacks to shifting these costs from special fund to General Fund.
• its own structural deficit, as using General Fund for this purpose would leave less funding available
• not need to rely on General Fund appropriations moving forward.
• loan to BPPE impacted any of the services from this fund?
• the scholarship at $513 million General Fund.

Transcript Highlights:

• about the impact specifically... ...members generally about the impact specifically some of these decisions
• impacts and then how there are impacts.
• Is that something that we should be looking at with other funds to generate interest off of that are
• and help direct those to the general fund, which we think makes sense as well, especially during the
• So that's the general—those are the general goals.

Committee: Senate Senate Committee on Intergovernmental Affairs

Summary: The committee heard testimony from Doug Howe of the Mass Taxpayers Foundation and Evan Horowitz of Tufts on the fiscal effects of federal policy changes, especially the OB3 reconciliation law, federal shutdown risks, and Massachusetts budget planning. Howe outlined a framework of direct and indirect federal impacts on the state budget, capital program, and grant funding, emphasizing uncertainty around Medicaid, SNAP, LIHEAP, immigration, NIH funding, and federal tax changes. He said OB3 is expected to reduce federal health spending in Massachusetts by about $3 billion annually when fully implemented, with an estimated 250,000 to 300,000 people losing coverage, and could shift up to $400 million in annual SNAP costs to the state if Massachusetts’ error rate remains above the federal threshold. He also discussed the governor’s proposal to delay conformity with certain federal tax changes and to expand the pass-through entity tax to offset revenue losses. Members questioned the witnesses about SNAP error rates, unemployment insurance, the use of the stabilization fund, and whether the state should adopt a Maryland-style delay in implementing federal tax changes. Howe argued the stabilization fund should not be used to backfill permanent obligations, but could be used for temporary crises, and said the state should improve data-sharing and administrative systems so eligible residents do not lose MassHealth or other benefits because of paperwork barriers. He also said unemployment insurance remains a major problem and that a broader fix should include benefit, tax, and possibly state contributions. Horowitz took a more aggressive view on using reserves for urgent needs like SNAP, argued the state should harden its budget against volatility, and warned that Massachusetts is increasingly exposed to stock-market-driven revenue swings and to a possible income tax ballot question that could significantly reduce revenues. No votes were taken; the hearing was informational, and the chair asked both witnesses for follow-up written recommendations, especially on system integration and accountability.

Transcript Highlights:

• In the EL factor, Gadsden generated about $500,000 in additional funding for their 605 students who have
• methodology ended up generating the equivalent of about $8.7 million in additional impacts beyond what
• to the students that are generating those funds for districts.
• To generate funding in the SEG, we take the total number of students who are either extremely low income
• funding at-risk funding for that district or charter school. to generate funding at-risk funding for

Transcript Highlights:

• at the end of each biennium may not revert to the general fund.
• at the end of each biennium may not revert to the general fund.
• at the State Patrol with general fund dollars.
• About 85% going into the general fund, the rest going into the Workforce Education Investment Account
• I was just wondering what the split was, 85% to the general fund and the other account?

Summary: The committee held a public hearing and briefing on several bills, with House Bill 2441, House Bill 2159, House Bill 2521, House Bill 2531, House Bill 2543, and House Bill 1607 discussed in that order after agenda changes. HB 2441 would expand reimbursement from the LEO retirement fund for survivors of law enforcement officers killed in the line of duty, covering Medicare Parts A and B premiums and retroactive health insurance premiums during the period before a death is officially determined to be work-related. Staff described a relatively small number of affected survivors and modest actuarial impacts, and the prime sponsor spoke emotionally in support. A representative from the L&I Board also testified that the board had studied the issue and endorsed the bill. HB 2159 would create the Pre-K Promise Account to receive philanthropic funds for ECEAP expansion. Staff explained ECEAP eligibility and the proposed non-appropriated account structure, noting Governor Ferguson’s budget included $34.5 million in non-appropriated authority for about 2,000 new school-day slots. Testimony was strongly supportive from Ballmer Group, DCYF, Head Start/ECEAP advocates, a Yakima provider, and the governor’s office, all emphasizing the public-private partnership, expanded access, and support for children furthest from opportunity. HB 2521 would remove the $18 cap on the State Patrol’s firearm background check fee and allow the fee to be set to cover total program costs. Staff said the fee could rise to about $33 per check based on current costs, and the State Patrol testified that the cap no longer matches actual expenses and threatens staffing and service levels. One member of the public opposed the bill, arguing the state system should be scrapped or capped and that consumers would face higher costs. HB 2531 would freeze the ambulance quality assurance fee at its July 4, 2025 level to comply with federal law and adjust Medicaid add-on payments accordingly; the Washington Ambulance Association strongly supported it as essential to preserving federal matching funds and improving wages and benefits. HB 2543 would update county clerk fees and modernize outdated references, with county officials supporting the changes as necessary to reflect current electronic-record practices. HB 1607, the Recycling Refund Act, drew the most extensive testimony. Staff described a 10-cent refund system for covered beverage containers, a producer responsibility organization, Ecology oversight, and fiscal impacts tied to program administration and lost tax revenue. Supporters, including environmental groups, youth advocates, Seattle Public Utilities, and some industry voices, argued the bill would reduce litter, increase recycling rates, support reuse systems, and complement the existing recycling reform law. Opponents from recycling haulers, grocers, beverage interests, counties, and solid waste providers argued it would function like a tax, raise consumer and retailer costs, duplicate or undermine curbside recycling and EPR, and create siting and implementation problems. No votes were taken on the bills in this transcript; the hearing concluded with public testimony and adjournment.

Transcript Highlights:

• Again, there's not a dime of that being felt in the general fund; instead, it's impacting these other
• I'll be covering the general fund overview.
• The General Fund Financial Summary is the state's balance sheet.
• And those are the most stable form of revenue in the general fund.
• This is only the trend for the general fund.

Committee: House Revenue Stabilization & Tax Policy Committee

Transcript Highlights:

• Jurisdictions have been incredibly creative, relying on funding from the department and other funding
• Our work is funded through about 20 different fund sources. Many of these are special funds.
• On the board funding, the board is funded equally from the hazardous On the board funding, the board
• are funded by payments of the generation and handling fee and environmental fee, respectively.
• , ongoing funding.

Transcript Highlights:

• Almost all of them receive some type of non-dilutive funding, so government funding, and it's really
• Almost all of them receive some type of non-dilutive funding, so government funding, and it's really
• NIH funding is a critical catalyst.
• I think it's going to become more crucial than ever, as we see cuts to public funding for STEM in general
• to be impacted as we go forward.

Summary: The Assembly Select Committee on Biotechnology and Medical Technology met on August 19, 2025 to examine the effects of federal grant cuts, tariff uncertainty, and related policy changes on California’s biotech, medtech, and academic research ecosystem. The chair and panelists emphasized California’s outsized role in the industry, describing major clusters in the Bay Area, Los Angeles, and San Diego, and explaining how research, startup formation, manufacturing, and clinical trials are interconnected across the state. Speakers from Biocom California, California Life Sciences, Farma, UC, Stanford, CSU Biotech, and UCLA all argued that NIH and NSF funding are foundational to discovery, workforce training, and commercialization, and that disruptions are already chilling venture capital, startup formation, and hiring. Witnesses described several concrete impacts: suspended or terminated grants, reduced doctoral admissions, fewer training opportunities, canceled retreats and internships, and anxiety among graduate students and early-career researchers. UC reported hundreds of millions of dollars in suspended or terminated NIH and NSF funding, while Stanford said more than a thousand training and career-development grants nationwide have been frozen or ended, affecting multiple trainees per grant. CSU Biotech said 133 federal grants had been terminated, scaled back, or canceled, totaling about $140 million, including nearly $30 million from NIH and NSF. Industry representatives also warned that proposed antitrust limits on mergers and acquisitions could undermine the standard biotech exit path and further deter investment. Committee members asked about the duration of the disruption, the possibility of state action to offset federal losses, and whether California could better support workforce development, manufacturing, and R&D tax credits. Panelists urged the Legislature to preserve and expand state support for STEM education, internships, apprenticeship pathways, manufacturing incentives, and the R&D tax credit, and to consider infrastructure and housing as part of competitiveness. They also noted that tariffs are already raising costs for medtech components and building materials, and that China is increasingly competing for R&D, talent, and licensing deals. No formal votes or bill actions were taken at the hearing; the meeting was informational and focused on testimony and discussion.