Transcript Highlights:

• Some local programs do this well.
• plan is lacking.
• And it required some kind of accountability and reporting from local governments about the H-HAT program
• Local governments, as you know, play a key part in planning for new development.
• But just like with local governments, you know, that's something that we have to plan for what's best

Summary: The Assembly Housing and Community Development Committee heard a long agenda of housing-related bills, beginning with AB 1892 on HOA/Davis-Stirling Act cleanup provisions. The author and sponsor said the bill would clarify HOA responsibilities for utility service repairs in common areas, align election notice timelines, and require electronic voting ballots to be sent at least 30 days before an election. No opposition was presented, and the bill was set aside to be taken up later when a quorum was available. The committee then heard AB 1708, which would revise the Homeless Housing, Assistance and Prevention (HHAP) program to give smaller cities a clearer role in regional homelessness planning and access to funding. Mayors and city representatives from Bellflower, Paramount, and other cities testified that smaller jurisdictions are spending significant local funds on shelters and services but lack direct access to HHAP dollars. Some larger-city and housing advocates opposed or were opposed unless amended, arguing the bill could add administrative burden, but committee members broadly supported the goal of including smaller cities in regional responses. Members also heard AB 2058 on factory-built housing, AB 2576 on historic-resource protections under SB 79, AB 1751 on missing-middle townhomes, AB 1924 on homelessness prevention, AB 2626 on waiving certain monitoring fees for at-risk affordable housing developments, and AB 2089 on welfare-exemption and recertification procedures for affordable housing. Testimony generally emphasized reducing duplicative local permitting for factory-built housing, protecting state and national historic resources while still allowing housing near transit, expanding ministerial approval for townhomes, creating a statewide homelessness-prevention strategy with accountability measures, giving HCD flexibility to waive fees to preserve financially stressed affordable housing, and streamlining property-tax exemption recertification. Several bills were voted out of committee, including AB 1751 and AB 2626, both passing on 8-0 and 7-0 votes respectively, while other measures were discussed with motions pending or held open for absent members.

Transcript Highlights:

• First, it could limit the monitoring for local communities who are seeking to understand local hotspots
• </c> methods often relied upon by local methods often relied upon by local organizations<00:08:20.720
• communities who are seeking to local communities who are seeking to understand<00:08:28.319><c> local
• <00:08:46.440><c> in</c><00:08:46.519><c> our</c> accountable in our accountable in our communities<00
• </c><00:10:45.399><c> for</c> requires any state plans for requires any state plans for implementing<

Summary: The Natural Resources and Energy Committee held its first meeting of the 2025 session, welcomed several new members, and confirmed a quorum. The committee first took up House Bill 137 on air quality monitoring. The sponsor and committee substitute were presented as requiring scientifically defensible, quality-assured data for air pollution enforcement, with the sponsor saying citizen complaints could still prompt agency inspections. A Kentucky Resources Council attorney testified in opposition, arguing the bill could limit low-cost community monitoring, conflict with the Clean Air Act’s credible evidence provisions, and undermine community efforts to identify pollution hotspots. After discussion, the committee adopted the substitute and passed HB 137 with favorable expression. The committee then considered House Bill 196, dealing with mining emergency technicians. The sponsor said the bill responds to the decline in coal mining and smaller mine operations, and that it was developed with the Energy and Environment Cabinet and was not opposed by the Kentucky Coal Association or the UMWA. The bill would require one medic for mines with 10 or fewer miners, two for larger operations up to 50, and one additional medic for each additional 50 miners, with the sponsor saying the change would help small mines avoid shutting down shifts when a medic is unavailable. A question about the ratio above 50 was answered by noting the language came from the cabinet and was not being changed. The committee then passed HB 196 with favorable expression. At the close of the meeting, the chair reminded members that the committee would continue using the 24-hour rule for amendments and committee substitutes and that agendas would generally be sent out the day before meetings.

Transcript Highlights:

• We plan on actually doing a review of that as soon as we're done with the business plan.
• We value the Motor Vehicle Account, you know, the account, and we value X.
• Jeannie Ward Waller for Climate Plan and the Leadership Council for Justice and Accountability, also
• This is Leslie Beatty for Climate Plan and adding on for the Leadership Council for Justice and Accountability
• This is Leslie Beatty for climate plan and adding on for the Leadership Council for Justice and Accountability

Transcript Highlights:

• Our plan is to first evaluate.
• plans.
• plan processes.
• in plan year 2026.
• under the silver plan.

Summary: The committee heard opening budget remarks from the Department of Finance and the Legislative Analyst’s Office on the May Revision for Health and Human Services. Finance said the proposal significantly reduces projected out-year operating deficits through a mix of revenue increases and program cost reductions, while the LAO warned that even with booming revenues the state still faces a structural deficit and should prioritize reserves and avoid new ongoing commitments. The chair and members echoed concern about cuts to vulnerable populations, but also noted the need to maintain the overall level of budget solutions and add to reserves. The hearing then moved through a series of CalHHS and HCAI proposals, mostly held open after presentation. CalHHS requested additional legal support to respond to federal H.R. 1-related issues and a net-zero transfer of positions for a shared eligibility/data-sharing platform. Other items included ongoing funding for the 988 Behavioral Health Crisis Service Fund and a request for EMSA to fund maintenance of its enterprise data management system. HCAI presented proposals for hospital fair pricing implementation, the data exchange framework, the all-payer claims database, CalRx insulin development, the diaper access initiative, distressed hospital grants, opioid settlement fund reversion, and the Rural Health Transformation Program. Members questioned funding sources, special fund use, contracting exemptions, timelines, and whether some proposals should be more targeted or supported by alternative funding. A major discussion centered on HCAI’s diaper access initiative and the use of a Public Contract Code exemption to continue contracting for free diapers distributed through hospitals. The chair and some members criticized the optics of the selected vendor and questioned the lack of an income threshold, while HCAI said the program was designed to be universal and administratively simple, with future phase-two direct-to-consumer purchasing to be handled by a different vendor. Another extended exchange focused on distressed hospital funding, where HCAI said the May Revision would provide up to $50 million for hospitals at immediate risk of closure, but members argued the repeated annual need shows a structural problem and asked for broader reforms to hospital payment and care transitions. The final major topic was the Behavioral Health Services Oversight and Accountability Commission’s budget. The Commission opposed the May Revision’s reduction of the Innovation Partnership Fund from $20 million to $10 million and a $6.7 million cut to community advocacy contracts, arguing both are core Proposition 1 tools for statewide innovation and community engagement. Finance responded that the proposal is within Proposition 1’s allowable maximums and that prior unspent appropriations could be redirected if the Legislature wanted to restore the full amount. No votes were taken; items were generally held open for later action.

Transcript Highlights:

• </c><00:01:38.960><c> There's</c> just as a custody account. There's just as a custody account.
• , including deposit accounts, custodial, including deposit accounts, safety<00:04:38.280><c> deposit<
• <00:07:51.000><c> registration</c><00:07:51.600><c> caps</c> local registration caps local registration
• </c> the health plans. the health plans.
• </c> a local charity. a local charity.

Committee: Senate Commerce and Consumer Protection

Transcript Highlights:

• that's an interest-bearing account.
• Planning that it's undertaken under Mr.
• I'm the Chief of Budgets and Accounting.
• The plan that we provided the legislature last year in December of 23, we spelled out a plan and we continue
• to achieve that plan.

Transcript Highlights:

• It was an accounting issue.
• And when it was locally permitted, the Board of Supervisors or the Planning Commission, it's not like
• There's a real debate over local control or not, and yet this was permitted entirely under local control
• And when it was locally permitted, the Board of Supervisors or the Planning Commission, it's not like
• Entirely under local control.

Summary: The Assembly Committee on Utilities and Energy met without a quorum at first and began as a subcommittee, then later established quorum and heard several measures. The main policy bills discussed were SB 24, which would restrict investor-owned utilities from using ratepayer funds for political advertising, lobbying, and efforts against municipal utilities, and SB 283, the Clean Energy Safety Act of 2025, which would strengthen safety standards for battery energy storage facilities after the Moss Landing fire. The consent calendar also included SB 80, SB 491, SB 593, SB 804, and SCR 25, which were taken up without debate. SB 24 drew strong support from consumer and environmental advocates, who argued that ratepayer money should not be used for political or promotional activity and that current rules lack meaningful consequences. Opponents from the utilities and business community said the bill was too broad, could interfere with shareholder-funded advocacy and legal work, and might unintentionally affect public service communications and expert consulting. Several committee members shared support for the bill’s goal but raised concerns about its breadth, especially around legal fees and communications; the author said he was willing to work on amendments, including on consultant fees, and accepted committee amendments. SB 283 received broad support from firefighters, local governments, utilities, labor, and business groups. Supporters said the bill would improve fire safety, require fire authority consultation and inspections, and prevent battery storage from being sited in unsafe indoor combustible facilities. The author described the Moss Landing fire and said the bill would add standards based on NFPA guidance while preserving local governments’ ability to adopt stricter rules. No opposition testimony was presented. The committee voted SB 283 out 16-0, and SB 24 was also approved after a roll was held open and later closed, ultimately passing 11-1. The consent calendar passed 16-0, and the meeting adjourned after the final roll calls were completed.

Transcript Highlights:

• And I'm just curious: do we work with local jurisdictions on local revenue assessment tools?
• local schools.
• Accelerate the planning.
• So you guys really do plan ahead.
• I'm a proud member of Local 326.

Summary: The subcommittee first received an informational update on 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 College Corps, Youth Service Corps, and Climate Action Corps, along with outreach results from OCPSC and the Trusted Messenger Network. The Department of Finance said the programs remain a priority but noted prior budget reductions, while the LAO said it had no new recommendations. Committee members raised questions about program diversity, geographic reach, administrative costs, and whether the programs duplicate existing volunteer opportunities; one member criticized the programs as costly and duplicative, while another emphasized the value of volunteerism and asked about the men’s service challenge. The item was informational only. The committee then heard an overview of the Board of Equalization’s property tax responsibilities and its first budget proposals since the 2017 reorganization. BOE described its role in county assessment oversight, state-assessed property valuation, and related tax administration. Members asked about BOE’s interaction with counties, property tax reassessments, and local tax notices; BOE explained it mainly works with county assessors and handles technical property tax questions, while local special district charges are generally outside its scope. The committee also considered a BOE proposal to implement SB 293, which would give additional time for certain intergenerational property tax transfer claims after the 2025 wildfires. BOE requested $154,000 for guidance, public materials, and inquiry response work, saying the change is urgent for wildfire-affected families, especially in Altadena. The LAO had no concerns, and the item was held open. BOE also presented an information technology modernization proposal for its state-assessed property program, seeking $3.2 million in 2026-27 and $3.1 million in 2027-28 to replace a 30-year-old mainframe system. BOE said the current system relies heavily on manual data entry and paper processes, creating inefficiencies, cybersecurity risks, and delays, while modernization would free staff for more audits and valuation studies. The LAO supported the need but urged a high bar for new IT projects; Finance said the project met the threshold of necessity. Members generally supported the upgrade but asked about audit gains, revenue impacts, and implementation risks, and the item was held open. Finally, CDTFA gave its department overview and then discussed a proposal to require all delivery network companies, such as Uber Eats and DoorDash, to be treated as marketplace facilitators for sales tax purposes. CDTFA said the current carve-out creates confusion for restaurants and small businesses because some DNCs collect and remit tax while others do not, and the change would improve compliance and shift reporting to larger platforms. Members debated whether the proposal amounts to a tax increase for consumers, with CDTFA and Finance arguing it is a consistency and compliance measure rather than a new tax, while others said it would likely raise consumer costs. The committee also discussed broader CDTFA issues, including local sales tax districts, revenue-sharing agreements, and the growth of special taxing jurisdictions. No votes were taken, and the agenda items were informational or held open.

Transcript Highlights:

• </c> engage specifically with local engage specifically with local stakeholders<00:20:20.280><c> that
• </c> that includes members of local that includes members of local governments<00:53:12.559><c> CI</c
• This program is mandated by state statute and helps local governments plan their road projects that might
• governments to do this when local governments to do this when planning<00:56:17.799><c> their</c><00
• </c> on the number um that does require local on the number um that does require local governments<01

Committee: House Environment and Natural Resources Finance and Policy

Transcript Highlights:

• The second thing is local districts are accountable to our families.
• Local districts are accountable to our families.
• Thank you. ...accounts were.
• I just, to your point of the safety plans, yes, schools should have safety plans.
• There is the accountability.

Committee: House House Education Committee of Reference

Summary: The committee first heard House Bill 4043, which would require each school district and charter school, beginning in 2027, to ensure at least one employee at each school is trained in CPR, first aid, and AED use. The sponsor said he intended to amend the bill on the floor to ensure someone is trained at all times and to clarify AED language. The American Heart Association testified neutral with concerns, supporting CPR training but warning the bill could leave gaps if only one person is trained and noting the need for AED access and emergency planning. Parents whose son died in an Arizona kindergarten classroom urged support, saying school staff should be prepared to respond to emergencies. The committee recommended the bill do pass by a vote of 7-1 with four present. The committee then took up House Concurrent Resolution 2015, as amended by a strike-everything amendment supporting at least 60 minutes of daily physical activity for students and prominent display of federal dietary guidelines. A representative of End Chronic Disease testified in favor, arguing schools should help prevent chronic disease through health education and physical activity. The committee adopted the strike-everything amendment and then gave the resolution a due pass recommendation on a 12-0 roll call. House Bill 2621, in its strike-everything form and with a Garcia amendment, addressed enrollment and special education procedures for students in unorganized territory, students using certificates of educational convenience, and children of active-duty military parents. The sponsor explained the bill was meant to clarify confusing law, speed enrollment and evaluations, and reduce delays in services. Champions for Kids supported the measure and the amendments, and the committee adopted both amendments before recommending the bill do pass 11-0. The committee also approved House Bill 2385, which limits superintendent contracts to one-year terms for the first three years unless the superintendent has already been employed three consecutive years; the sponsor framed it as a way to reduce costly early buyouts. That bill passed 7-4. Later, the committee approved House Bill 4106, creating the One Arizona Service Fellowship Program to provide service opportunities, stipends, and tuition awards for young adults, with an amendment changing the stipend contribution formula. The sponsor and supporters described it as a state-based service model inspired by Utah and aimed at education, military families, parks, hunger, and homelessness work; some members opposed it as an unnecessary state mandate or questioned the need for a new program. The committee also passed House Bill 2992, as amended, establishing a pilot program on child sexual abuse and assault awareness and prevention, expanded to K-12 and including grooming/exploitation content. A survivor advocate strongly supported the bill, while some members raised concerns about the funding source and possible unintended consequences. Finally, the committee passed House Bill 2370, which would require school leaders to notify governing boards before modifying weapons detection systems and to report changes within 24 hours; the sponsor cited a fatal school stabbing and other weapons incidents, while opponents argued the bill was too vague and could create operational problems. The committee also adopted a strike-everything amendment to House Bill 4056, allowing legislators making public records requests in their official capacity to avoid fees and requiring electronic production; the sponsor said it was needed after districts sought large fees, while opponents warned it could burden public agencies. The committee then began discussion of House Bill 2478, which would create an Arizona Commission on Student Outcomes to study K-12 accountability, finance, graduation requirements, and related issues, with proposed amendments to add early childhood study and change commission membership, but the transcript cuts off before final action on that bill.

Transcript Highlights:

• And, most importantly, we will not be able to plan for replacement of that site or plan for redevelopment
• That basically is reflected if all of the strategies in the scoping plan are implemented as planned,
• Yes, there are some plans.
• And within the plans that we see, the finalists do have some planning for that.
• And that section of the scoping plan was sort of what led to this concept of doing a transition plan.

Summary: The joint informational hearing of the Assembly Committees on Utilities and Energy, Transportation, and Natural Resources focused on California’s transportation fuels sector, especially the state’s response to refinery closures and the broader transition away from fossil fuels. Opening remarks emphasized the tension between climate and air-quality goals, fuel affordability, refinery jobs and local tax bases, and the need to avoid crisis-driven responses as Phillips 66 and Valero consider shutting refineries in Wilmington and Benicia. Professor Emily Grubert framed the issue as a long-term managed transition in which the public already bears much of the risk and should also capture benefits from a well-planned shift. CARB Chair Leanne Randolph reviewed the state’s emissions and fuel policies, including AB 32, the low-carbon fuel standard, clean vehicle programs, and the at-berth regulation for ocean-going vessels. She said California’s transportation sector remains the largest source of greenhouse gases and a major source of smog-forming pollution, but that the state has made substantial progress and still needs to reduce demand for fossil fuels while maintaining compliance with federal air-quality standards. Randolph also said CARB’s recent LCFS amendments had not caused the predicted spike in gas prices and explained that compliance pathways for the at-berth rule include emissions-reduction technologies or payments into a remediation fund. CEC Vice Chair Gunda described declining gasoline demand, shrinking in-state refining capacity, and growing dependence on imports, arguing that the state is in a “mid-transition” period that requires both support for legacy infrastructure and continued investment in cleaner alternatives. He outlined the administration’s petroleum market stabilization proposal, which aims to return California crude production to 125 million barrels a year through four components: codifying the ban on fracking, validating the Kern County oil-and-gas permitting ordinance, creating a temporary CEQA exemption paired with a two-for-one plug-and-drill framework, and strengthening pipeline and spill-safety requirements. Department of Conservation Director Jennifer Lucasey said the proposal is intended to stabilize crude supply and pipeline throughput while preserving health and environmental protections, and noted that CalGEM would still review permits and enforce other requirements. Mayor Steve Young of Benicia testified that a Valero closure would significantly reduce city revenue and leave the community facing years of cleanup and redevelopment challenges. He said the city supports environmental protection but is worried about the economic hit, the possibility that Benicia becomes a fuel-import terminal, and the lack of local influence over refinery decisions. Members pressed the panel on the CEQA exemption, tribal and habitat review, disclosure of closure liabilities, fuel-demand projections, and whether the proposal should include more demand-side measures. No formal votes were taken; the hearing was informational, and officials said some proposals, including a margin-cap pause and further transition planning, would be taken up later in the process.

Transcript Highlights:

• But the accountant is not the visionary.
• Accountability was a huge issue.
• It's intended to be a five-year plan.
• So it was intended to be a five-year plan.
• This is facility planning.

Summary: The committee met for an informational hearing focused largely on the state capital outlay process and House Bill 2. Roger Husser and Matt Baker of the Division of Administration/Facility Planning and Control described how the office prepares and administers the capital outlay bill, said the bill has grown substantially over five years, and argued that recent changes in culture, staffing, project management, cash-flow analysis, and use of third-party support have more than doubled project expenditures and improved delivery. Members asked about the use and cost of third-party project managers, delegation of smaller projects to agencies, hiring difficulties, and whether the changes represented better interpretation of existing law versus statutory changes. Husser said some statutes were amended, some internal customs were removed, and the office would provide a list of those changes. He also explained that the office is trying to move away from overly rigid practices and toward faster project completion while still following public-bid and oversight rules. A major portion of the discussion centered on the size and structure of the capital outlay bill, especially the gap between Priority 1 cash capacity and the much larger Priority 5 backlog. Husser said the current annual Priority 1 limit is tied to construction inflation and is about $574 million, with additional surplus funds also available, but that the bill contains far more Priority 5 funding than can realistically move in a five-year plan. He and members discussed dormant projects, scope creep, legacy projects that have sat in the bill for years, and the problem of false expectations for non-state entities. Proposed solutions included limiting Priority 5 to five times Priority 1, requiring annual re-endorsement by members, setting district or project caps for non-state projects, requiring time limits and reporting for grant-like non-state projects, placing matches in escrow, requiring design readiness before submission, and consolidating the many existing reporting requirements into one clearer report. Members also discussed bundling multiple projects under one agency project, which the House had begun piloting for LSU, UL Lafayette, Southern, and DOTD, and which Husser said could improve flexibility, reduce overappropriation, and better reflect actual spending. Baker then explained cash-flow management and the commitment process, saying FPC now analyzes projects annually to estimate what can actually be spent in the next fiscal year and uses commitments to allow projects to proceed when future-year funding is expected. He said overappropriations can result from poor cash-flow estimates, delays, dormant projects, or projects coming in under budget, and that the office is already reworking cash-flow assumptions and reappropriating savings where possible. Members also raised concerns about change orders and low bids; staff said project managers review change orders closely, require concurrence on non-state projects, and sometimes reduce scope to keep projects within budget. After FPC’s presentation, the committee heard the beginning of Louisiana Economic Development’s capital outlay discussion, where LED explained that its projects generally fall into three categories, including the Economic Development Awards Program and Site Readiness Program, both used to support targeted economic development and job creation.

Transcript Highlights:

• It's time to hold Governor Walz and his administration accountable.
• which looks into allegations of this sort within local units of government.
• which looks into allegations of this sort within local units of government.
• which looks into allegations of this sort within local units of government.
• which looks into allegations of this sort within local units of government.

Transcript Highlights:

• planning activities only.
• , Switch, Teamsters Local 631, Local 986, UFCW Local 711, and Wynn Resorts.
• , Switch, Teamsters, Local 631, Local 986, UFCW, Local 711, and Win Resorts.
• advocate budget account.
• That is a planning, excuse me, natural gas planning process, similar to the integrated resources planning

Bills: AB568 , SB90 , SB133 , SB147 , SB229 , SB233 , SB240 , SB245 , SB280 , SB378 , SB393 , SB417 , SB434 , SB494 , SB495

Committee: Assembly Ways and Means

Transcript Highlights:

• That's an interest-bearing account.
• I'm the chief of budgets and accounting.
• The plan that we provided the Legislature last year in December 2023, we spelled out a plan and we continue
• to achieve that plan.
• I'm a proud member of SEIU Local 1000.

Summary: The Assembly Budget Subcommittee No. 5 heard updates from the Secretary of State, EDD, the State Controller’s Office, CalHR, and DGS on a range of budget proposals and federal policy impacts. Secretary of State Shirley Weber opened with remarks about California’s election system, emphasizing its safety, transparency, high voter registration and vote-by-mail participation, and the office’s response to bomb threats and other election threats. Her staff then presented funding requests for the Cal-Access Replacement System (CARS) and Help America Vote Act/VoteCal activities, describing them as needed to modernize campaign finance and lobbying disclosure systems and maintain election security and voter services. A major portion of the hearing focused on federal election policy, especially the potential effects of a presidential executive order and the SAVE Act. Secretary of State staff said California would face significant, potentially unquantifiable costs if forced to comply, including new burdens on county recorders, county election offices, and the Secretary of State’s office, and warned of voter disenfranchisement, especially for students, seniors, disabled voters, military and overseas voters, rural residents, and people with limited transportation. Members and public commenters strongly opposed the federal proposals and argued California’s current system is functioning well. The committee also heard that federal HAVA funds were not expected to be at risk because the state draws them down into an interest-bearing account. EDD reported on paid family leave, explaining that recent delays were tied to a system transition and increased claim volume, and said it was simplifying applications and adding staff and automation. Public testimony supported expanding paid family leave to chosen family. EDD also said it is prepared for possible unemployment spikes, citing a recession plan, a command center, and recent hiring. The State Controller’s Office requested funding to continue the Fiscal migration project, which would move the state’s accounting book of record to the new system by July 1, 2026; Finance and LAO had no objections, and the committee expressed support for the project’s progress. CalHR presented a proposal for a statewide recruitment, outreach, and education paid media campaign under AB 1511, saying its current advertising budget is too small to reach diverse communities effectively. The final item addressed Governor Newsom’s executive order requiring a return to office on a four-day schedule. CalHR and DGS said they were working department-by-department to assess space, parking, transit, and other logistics, but had not completed a statewide cost analysis. Members and many public commenters criticized the order, arguing it was rushed, costly, harmful to telework benefits, and potentially disruptive to workers, especially those with disabilities, caregiving responsibilities, or long commutes. No votes were taken during the hearing.

Transcript Highlights:

• THE MODERNIZATION ACCOUNT BUT THAT IS CAPPED THE TRANSFERS ARE CAPPED IF THE ACCOUNT REACHES $50 MILLION
• Boldon which held to account the health plans which have dropped coverage which they issued to patients
• They have purchased health care plans anticipating that they would have coverage under those plans for
• and Medicaid plan when your private plan is displaying...
• account.

Transcript Highlights:

• So we worked with them on that plan. The president presented that plan last month.
• “They’ve given us a plan.
• But we just got the plan last month. Okay. You referred to this plan as part of Mr.
• And so all of these plans that I'm talking about are three-year plans.
• We're currently working with a three-year plan. Three-year plan, okay.

Summary: The joint Assembly Higher Education and Budget Subcommittee hearing focused on the future of the California State University system, with opening remarks emphasizing CSU’s major role in California’s economy, workforce, and degree production. Chairs and members said the hearing was intended to inform 2026 budget decisions and to examine three main issues: declining enrollment at some campuses, cost controls and possible consolidation, and oversight of recent state investments at campuses such as Humboldt and Sonoma. The meeting was briefly delayed by microphone and sound problems before reconvening. The first panel featured CSU Academic Senate Chair Dr. Elizabeth Boyd and Cal State Student Association Vice President Katie Karam. Boyd urged the Legislature to protect academic freedom, strengthen faculty governance, provide stable ongoing funding, end unfunded mandates, support student food and housing security, fund flexible course schedules, improve transfer systems such as ASSIST, avoid over-centralizing academic programs, protect immigrant students, and expand intersegmental collaboration. Karam said students are feeling the effects of budget shortfalls through fewer course sections, reduced advising and services, longer time to degree, and tuition pressure, and she called for transparency, meaningful student involvement in budget decisions, and sustained state investment rather than cuts that harm the student experience. The second panel covered enrollment management and included CSU Chancellor’s Office and campus administrators from Chico State, Cal State L.A., and San Diego State. Dr. Delcy Perez said CSU Forward and the new systemwide enrollment plan are aimed at expanding access, aligning programs with workforce needs, and increasing resident enrollment; she reported systemwide enrollment gains and strong application numbers, including a direct-admissions pilot that expanded from Riverside to more campuses. Campus representatives described local recruitment and retention strategies, including early outreach to high school students, community college partnerships, guaranteed admission programs, and expanded advising and student support. San Diego State highlighted record enrollment and high demand, while Cal State L.A. described efforts to recover from impaction and rebuild enrollment. Members pressed CSU officials on the accuracy of enrollment data, the gap between funded targets and actual enrollment, and the system’s reallocation formula. CSU staff explained that campuses below target will see a 5% ongoing reallocation beginning in 2026-27, with one-time reserve funding also being directed to campuses that can grow, and that fiscal health reviews have been completed for 21 of 22 campuses. Legislators also asked about turnaround plans required by the budget act; CSU said those plans are being developed and will be shared in the spring after campus consultation. No formal votes were taken.

Transcript Highlights:

• Some local programs do this well.
• plan is lacking.
• And it required some kind of accountability and reporting from local governments about the H-HAT program
• So local governments, as you know, play a key part in planning for new development.
• So local governments, as you know, play a key part in planning for new development.

Committee: House Housing and Community Development

Transcript Highlights:

• We are the professionals responsible for implementing the state's local land use planning act, as well
• We strongly believe land use planning should remain locally implemented and locally shaped, and that
• We strongly believe land use planning should remain locally implement, and we were not contacted.
• We strongly believe land use planning should remain locally implemented and locally shaped and that any
• remove local oversight.

Committee: Senate Local Government and Taxation

Transcript Highlights:

• </c> the gas Tex goes into some DNR accounts the gas Tex goes into some DNR accounts to<00:24:31.279>
• local uh for local be turned back to a local uh for local road<00:26:06.360><c> authority</c><00:26:06.960
• </c> Transit within minda which funds locally Transit within minda which funds locally operated<00:32
• plans.
• </c> aligning with local aligning with local plans<00:53:37.280><c> um</c><00:53:37.680><c> and</c><00

Committee: Senate Transportation