Transcript Highlights:

• Traditionally, the state's share of state director payment funding has generally sourced from 9 general
• This 25% change in state match has a budget impact to general revenue of 50.6 million annualized.
• As you can see, all 5 phases of this process are supported by SNAP funding in impacted by the federal
• The fiscal impact can be separated into 4 appropriation categories that are visible per the General Appropriations
• Arpa fund of. >> They have on the our funds that is reached his period of performance and those funds

Transcript Highlights:

• To name a few, the Barragulch Fire in North Olympic Park impacts generation from TPU.
• Staff said fine revenues were deposited into the county's general fund, with general fund money distributed
• Finally, we found that some revenue was unused in general funds.
• Finally, we found that some revenue was unused in general funds.
• The county had not And according to staff, this money was unused in the general fund.

Committee: Joint JLARC I-900 Subcommittee for SAO Performance Audits

Summary: The Joint Legislative Audit and Review Committee I-900 Subcommittee heard JLARC’s annual update on the status of legislative implementation of State Auditor recommendations, followed by two State Auditor performance audits. JLARC staff reported that for the 2024 review period there were three new legislative recommendations and three unresolved older recommendations. They said the legislature did not convene a work group on civil asset forfeiture, and no formal action was taken on two water-use-efficiency recommendations. Two recommendations related to concurrent Medicaid enrollments were addressed in a bill introduced this session, but that bill was not adopted. The first audit examined how Washington can ensure climate-resilient electricity infrastructure. The State Auditor found the state has opportunities to better adapt new energy infrastructure by using more site-specific climate information, broader collaboration, and vulnerability assessments. The report recommended expanding climate analyses through the University of Washington Climate Impacts Group if funding is available, using forecasted information in DNR wildfire maps, designating a non-regulatory office to coordinate siting and conflict resolution, and expanding vulnerability assessments in Ecology and Commerce processes. Agency witnesses generally agreed resilience is important but emphasized existing efforts, the need to avoid duplicative requirements, the importance of affordability and efficiency, and the role of current forums such as the Clean Energy Siting Council and SEPA processes. The second audit reviewed fines for human trafficking and related sexual exploitation crimes. Auditors found courts assessed fines inconsistently, collection rates varied, some revenues were sent to the wrong local government, and some jurisdictions did not use the money as required for enforcement, prevention, or survivor services. The audit recommended courts work with prosecutors to improve awareness of mandatory fines, and that King and Pierce County improve coding, templates, and tracking so revenues are routed and used correctly. King County testified that it appreciated the audit and described its existing prevention and survivor-support work. The committee took no votes or formal actions and adjourned after the presentations and testimony.

Transcript Highlights:

• those revenues in the general revenue fund.
• these revenues in the general revenue fund.
• those revenues in the general revenue fund.
• these revenues in the general revenue fund.
• within DOT to be deposited in the general revenue fund.

Summary: The House convened with prayer, the pledge, quorum call, and several recognitions, including guests for Education and Sharing Day, law enforcement officer of the day Detective Miata Anderson, and later FAMU Day at the Capitol and other visiting groups. The chamber adopted the special order report and then moved through a series of budget-related bills and conforming measures, with debate focused largely on recurring funding, environmental programs, housing, insurance reserves, and tax policy. Members approved HB 5011/SB 2506, which conform environmental resource funding to the proposed budget by shifting Seminole Gaming Compact-related dollars from recurring to nonrecurring funding; supporters said this preserves annual legislative review, while opponents warned it would reduce funding for the Resilient Florida program, wildlife corridor protection, invasive species removal, and other conservation efforts. The House then passed HB 5013, reducing state-funded property reinsurance reserves by lowering the RAP program and repealing FORA funding, and HB 5501, which redirects documentary stamp tax revenues from housing and transportation trust funds to general revenue; Democrats argued the housing changes would reduce affordable housing support, while Republicans said the move was needed to control recurring spending. The chamber also passed HB 5015 on state group insurance, HB 5201 on Florida PALM accounting conforming changes, HB 5203 on Capitol Center tenancy and utilities control, and HB 5009 creating a Florida Accountability Office and revising audit and budgeting functions. The most extended debate came on HB 7031, which permanently reduces the state sales tax rate from 6% to 5.25% and also lowers several related tax rates. Supporters described it as broad-based, immediate tax relief for Floridians, while opponents said property tax relief would be more targeted and that sales tax cuts also benefit tourists and out-of-state visitors. The bill passed 112-0. The House then took up the main budget bill, HB 501, and subcommittee chairs outlined the proposed $112.9 billion budget, including education, health care, transportation, agriculture and natural resources, higher education, state administration, justice, and IT spending. Members began questioning the pre-K-12 budget on school funding, vouchers, proration, mental health and safety allocations, and inflation, with the discussion continuing beyond the excerpt provided.

Transcript Highlights:

• , you're decreasing revenue to the general fund.
• You're decreasing revenue to the general fund.
• to general fund.
• That's coming out of the general fund. And The general fund.
• This appropriation is funded through general fund in the executive rec, but is funded through Kiki funding

Committees: Senate Senate Finance , Senate House Appropriations & Finance

Transcript Highlights:

• The cost did not impact to any large degree with regards to the student activity funding.
• or agency fund, which are non-general fund allocations.
• Expenditure data this afternoon is only limited to the general fund, not limited to their agency fund
• The local-level impact is the activity funding hole created for Kochville schools.
• gap between the amount that districts are spending and what the funding model generates.

Committee: Joint Select Committee on School Finance Recalibration

Transcript Highlights:

• , and this is not a General Fund impact.
• The budget is $275 million in total funds: $150 million in General Fund, $95.8 million in federal funds
• General Fund and $2.5 million in the Home Care Fund—ongoing.
• Total funds, $41.5 million of General Fund from the Budget Act of 2025.
• funds, $409,000 General Fund in fiscal year 2026-27.

Transcript Highlights:

• , and this is not a General Fund impact.
• : $150 million in General Fund, $95.8 million in federal funds, and $29.3 million in special funds.
• , that is $150 in general funds, $95.8 million in federal funds, and $29.3 million in special funds.
• fund in fiscal year 2026-27, and $3.9 million, $1.4 million in General Fund, and $2.5 million in the
• funds, including $409,000 General Fund, in fiscal year 2026-27.

Summary: The Budget Subcommittee on Health and Human Services heard an overview from the California Department of Aging on the state’s Master Plan for Aging, including progress at the five-year midpoint, local aging and disability action plans, HCBS gap analysis, workforce work, and stakeholder engagement. The Legislative Analyst’s Office noted the department’s budget was relatively flat but flagged federal H.R. 1 pressure on nutrition-related programs. Members discussed how H.R. 1 and broader federal and state budget pressures could affect older adults through other programs, even where the Department of Aging itself had no direct cut. The committee also heard a stakeholder request from the California Association of Area Agencies on Aging for $62.3 million to support Older Californians Act services, with Finance cautioning that any added ongoing spending would worsen out-year deficits. The committee then reviewed several Department of Aging proposals, including HICAP modernization to add paid counselors and reduce reliance on volunteers, and senior meal program oversight for virtual congregate/to-go meals under AB 1476. Members also discussed the status of area agencies on aging in Ventura, Santa Barbara, and San Luis Obispo counties, including a new RFP process in the Central Coast and the need to protect service continuity during transitions. Finance clarified that remaining modernizing Older Californians Act nutrition funds can still be used through June 2029. The Department of Social Services presented a series of items. These included new federal Medicaid Access Rule implementation for IHSS grievance and critical incident systems; housing and homelessness programs for CalWORKs Housing Support, HDAP, Home Safe, and Bringing Families Home, with testimony that one-time funds are expiring and service levels will likely decline; permanent position authority for housing and homelessness administration; a facility management system to replace aging licensing systems; home care services branch solvency and regulations; child care centers in multifamily housing; the Seizure Emergency Response Act; licensing during emergencies and disasters; and the Family Preparedness Plan Act. The committee also heard a detailed exchange about the Autumn Oaks facility in Tulare County, where Senator Grove raised concerns about 53 complaints and the handling of unsafe conditions; CDSS said it is reviewing the matter and has authority to take administrative action even after a license surrender. No votes were taken, and items were held open.

Transcript Highlights:

• The total funding for the fire-related package includes $2.5 billion, a one-time general fund to expedite
• Finally, the proposal includes $1 million one-time general fund to provide technical assistance to impacted
• So ABX 1.4 includes $1.5 billion of general fund for use by state departments and entities.
• Finally, the bill includes $4 million one-time general fund for the Department of Housing and Community
• Same question as to how are we funding it generally speaking and how quickly can we get the funds to

Committee: Assembly Budget

Transcript Highlights:

• We would like the General Fund to keep funding them, or keep funding the grants for... Here we go.
• So the 2022 Budget Act authorized one-time funding of $1.4 billion General Fund over five years for mobile
• And that's just all on the General Fund.
• I know the General Fund—I get it, we can’t turn to the General Fund. I get that.
• We now have 44 mobile crisis teams, which are primarily funded through Medi-Cal and State General Fund

Summary: The subcommittee heard budget and policy updates from the Department of State Hospitals, the Commission for Behavioral Health, and the Department of Health Care Services. DSH described its proposed 2026-27 budget of $3.2 billion, including savings tied to IST solutions, higher patient-driven operating costs, and a small increase in caseload projections. Officials said the department has met court-ordered IST treatment benchmarks, with wait times reduced from a pandemic peak of 1,953 pending placements to about 250, and average treatment initiation now around five days. Members asked about the effects of Proposition 36 and SB 1323, rising outside hospitalization costs, Medicare enrollment, and whether IST solution funding was being overbudgeted; DSH said referrals are slightly down overall, aging and medically complex patients are driving outside care costs, and the IST solution savings reflect slower-than-expected program activation rather than a service gap. The department also outlined proposed funding for CONREP cost increases, a new county-by-county LPS bed allocation model, electrical infrastructure upgrades at Napa and Patton, SB 380 transitional housing feasibility work, and additional dental staffing and space at Metropolitan and Patton. The Commission for Behavioral Health reviewed its role in the Behavioral Health Services Act transition and its new Innovation Partnership Fund. Staff said the commission is shifting from county-level innovation oversight to a statewide grant strategy, with the first $20 million RFA drawing strong interest and awards expected in mid-June. Members asked how “innovation” would be defined, whether grants could be renewed after the initial three-year contracts, and how the state would ensure the money supports real service delivery rather than general outreach or training. The commission also sought a liquidation deadline extension for the Alcove youth drop-in center grants so remaining funds can be spent before they revert, allowing sites to finish implementation and support the final evaluation. DHCS provided an overview of CalAIM and BH Connect implementation, including updated specialty mental health access criteria, new ASAM-based substance use treatment standards, contingency management, traditional health care practices for tribal members, workforce investments, evidence-based practice expansion, IMD participation, and transitional rent services. The department also addressed BHSA implementation, saying it does not track specific local program cuts but will monitor county three-year plans, performance measures, and outcomes as counties shift to the new funding structure. On H.R. 1, DHCS said it is preparing outreach, eligibility simplification, and exemption strategies to reduce Medi-Cal coverage losses, including clinic navigators, a statewide outreach campaign, and possible employment supports through a future waiver. The department also reported that BH-CHIP bond funds have supported 437 infrastructure projects, creating 546 facilities and more than 9,500 residential beds, with additional outpatient capacity and tribal investments. Finally, DHCS outlined a proposed 988 trailer bill to create a statewide designation process for 988 centers and mobile crisis teams, with implementation no earlier than October 1, 2027.

Transcript Highlights:

• Yeah, the 2023 general fund recurring appropriations outlook.
• Funds first and not the general fund.
• I think they needed more general fund.
• Those funds back to us, but in general, I think it's mostly back on track.
• some impacts specifically at the local level. with federally funded employees.

Committee: House Federal Funding Stabilization Subcommittee

Transcript Highlights:

• To general fund state at $375 million.
• In line 10, this is the projected near general fund outlook ending balance.
• You understand the impacts are both near term and over generations.
• In therapy, we see the direct impact of funding decisions.
• to supplant general fund obligations with CCA funds.

Bills: SB5998

Committee: Senate Ways & Means

Keywords: fiscal appropriations, budget, state funding, financial management, operating expenses

Transcript Highlights:

• </c><00:04:35.600><c> and</c> the general fund where the spendings and the general fund where the spendings
• Um a with the general fund change items.
• Um adjustments from the general fund.
• </c><00:23:25.919><c> fund</c> the page just show the general fund the page just show the general fund
• </c><00:23:38.799><c> fund</c> total of 2.915 million general fund total of 2.915 million general fund

Committee: Senate Environment, Climate, and Legacy

Transcript Highlights:

• conditions and their impact on income withholding, capital gains tax and its impact on non-withholding
• conditions and their impact on income withholding, capital gains tax and its impact on non-withholding
• Our rainy day fund helps us prepare for challenging times, mitigating the impact of an economic downturn
• We must have a clear plan for if and when we use the funds, and subsequently, how those funds will be
• fund, adding over $300 million extra Fund.

Committee: Joint Joint Committee on Ways and Means

Summary: The Senate and House Ways and Means chairs opened the FY 2027 consensus revenue hearing by emphasizing the need for a balanced, fiscally responsible budget amid federal funding cuts, health care cost pressures, and uncertainty around the federal tax law changes referred to as OB3. They also noted the state’s current revenue performance is slightly above benchmark and paid tribute to the late Representative Anne Margaret Ferranti. Secretary of Administration and Finance Matthew Gorkowitz echoed the call for caution, saying Massachusetts has protected core services while building reserves and that the FY27 budget process begins with a careful revenue estimate. Department of Revenue Commissioner Jeff Snyder, along with DOR staff, presented FY26 and FY27 tax forecasts and identified major drivers and risks: OB3’s negative impact on state revenue, surtax collections, labor market conditions, capital gains, and corporate/business excise taxes. DOR estimated OB3 would reduce FY26 revenue by about $664 million and FY27 by about $282 million, while surtax and capital gains were expected to remain strong in FY26 but soften in FY27. Members questioned the outlook for surtax, capital gains, and the potential fiscal effect of a ballot question reducing the income tax rate from 5% to 4%; DOR said that proposal could cost roughly $4.2 billion to $4.8 billion annually, with a smaller but still significant impact in FY27 because of phase-in timing. Treasurer Deb Goldberg testified next on the stabilization fund, lottery, PRIM, unclaimed property, and the Alcoholic Beverages Control Commission. She reported the rainy day fund at about $8.1 billion, said the lottery was on track for $1.5 billion in FY26 net profit and projected $1.25 billion in FY27, and highlighted that iLottery is expected to launch in summer 2026 with revenue beginning in FY27 and dedicated to child care initiatives. She also described strong PRIM performance and record unclaimed property returns, while members asked about the child care use of iLottery revenue, multilingual outreach, and the economic impact of expanded liquor licensing. Mass Taxpayers Foundation President Doug Howgate and Tufts’ Evan Horowitz then offered differing revenue outlooks and policy warnings. Howgate projected modest growth, cautioned against overusing reserves for ongoing obligations, and urged caution on federal tax conformity changes and health care spending pressures. Horowitz projected higher FY26 and FY27 revenues than other witnesses, warned that the surtax and capital gains make the tax system more volatile, and said a 4% income tax ballot question could reduce FY27 revenues by roughly $800 million to $1 billion. He also flagged the rent control ballot question as a potential risk to municipal finance and suggested the state consider giving a permanent home to the independent revenue model used by Alan Clayton-Matthews.

Transcript Highlights:

• We would like general fund to keep funding them, or keep funding the grants for...
• And that's just all on the General Fund.
• So the 22, 22 budget act authorized one time funding of 1.4 billion general fund over five years for
• And that's just all on the general fund. Thank you. Okay.
• I know the General Fund, I get, we can't turn to the General Fund. I get that.

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.
• 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 financial crisis in 2008 found these funds swept away for the general fund, and since then our funding

Summary: The committee held a public hearing on several tax and retirement bills, beginning with Senate Bill 6073, which would move eligible Department of Natural Resources wildland and aviation firefighters from PERS into LEOFF 2 prospectively. Committee staff described the higher retirement age and benefit differences between the systems and noted a small implementation cost and a modest actuarial rate increase. DNR, the Washington Public Employees Association, and a committee member all raised support or questions, with DNR acknowledging additional review with the LEOFF board was still needed. The hearing then turned to Senate Bill 6113, a Department of Revenue request bill making technical and administrative changes to the tax code, including clarifications tied to last session’s ESSB 5814 service-tax changes, a six-month transition period for reclassified businesses, and a section affecting advertising-related exclusions. DOR said the bill was revenue neutral and intended to codify guidance and improve certainty, while school districts, arts groups, broadcasters, newspapers, and business groups testified both in support of the technical fixes and in opposition to provisions they said would continue or worsen unintended consequences from last year’s tax law. Senators also questioned how some definitions would apply, especially to school and higher-education-related services. Senate Bill 6116 would restore the vapor-products tax structure by moving nicotine-containing vapor products back under the per-milliliter vapor tax instead of the 95% other tobacco products tax, and would restore distributions to the Andy Hill Cancer Research account and Foundational Public Health Services account. Public health agencies, cancer research representatives, and some retailers supported the bill as a fix to funding disruptions, while tobacco-control groups opposed lowering the tax and argued it would weaken public health policy. The committee also heard that the current law creates a double-tax issue on pre-existing inventory because products held when the definition changed became subject to a new tax classification. Finally, Senate Bill 6129 proposed a broader nicotine-tax overhaul, including a 90% tax on nicotine products, a 10% tax on flavored nicotine products, higher cigarette taxes, and new revenue distributions and tribal compact provisions. Supporters, including public health organizations, pediatricians, and civil rights advocates, said higher taxes would reduce youth use and restore funding for cancer research and public health; opponents, including retailers, tobacco and vapor businesses, broadcasters, and some harm-reduction advocates, argued the bill was regressive, would fuel illicit markets, and would harm small businesses and adult consumers using lower-risk products. The committee then began a briefing on Senate Bill 6162, a property tax reform bill that would expand senior and disability property tax relief, adjust state property tax rates, and change property tax billing statements, but the hearing on that bill was not completed in the portion provided.

Transcript Highlights:

• When we look at the job impact, this is where we're only looking at the out-of-state funding sources.
• We actually had more general fund in 2008. Than we do today.
• We love that, but in general operating fund, we need to improve our salaries.
• So when we're looking at the economic impact, it's mostly Well, it's all federal funding.
• So what is your funding mechanism for this, or does it come out of your general operations?

Committee: House Water & Natural Resources Committee

Transcript Highlights:

• that fund to them.
• fund to them.
• They're not GR-funded.
• state funds, correct?
• Jasper would then receive $18,000 in declining enrollment funding plus whatever local tax revenue generated

Committee: All JBC-SPECIAL LANGUAGE

Transcript Highlights:

• We would like the general fund to keep funding them, or keep funding the grants.
• So the 22, 22 budget act authorized one time funding of 1.4 billion general fund over five years for
• And that's just all on the General Fund.
• I know the General Fund, I get, we can't turn to the General Fund. I get that.
• We now have 44 mobile crisis teams, which are primarily funded through Medi-Cal and state General Fund

Summary: The subcommittee heard presentations from the Department of State Hospitals (DSH), the Commission for Behavioral Health, and the Department of Health Care Services (DHCS) on budget proposals and implementation updates. DSH outlined its proposed 2026-27 budget, including funding for patient operating expenses, IST solutions savings, conditional release program costs, LPS bed allocation changes, electrical infrastructure projects at Napa and Patton, SB 380 transitional housing feasibility work, and expanded dental services at Metropolitan and Patton. DSH also reported that it has met court-ordered IST treatment benchmarks in the Stiavedi v. Clinton case, with average time to initiate treatment down to about five days and pending placements reduced to roughly 250, while noting that Proposition 36 could increase referrals and SB 1323 may divert some individuals earlier into community-based treatment. Members asked about rising outside hospitalization costs, Medicare enrollment, the timing and structure of capital projects, and whether IST solution funds are being fully used; DSH said the savings reflect slower-than-expected ramp-up of community programs and that the Central California FACT replacement program is still on track for January 2027 activation. The Commission for Behavioral Health described its role under the Behavioral Health Services Act (BHSA), including data, evaluation, grantmaking, technical assistance, and transparency work. It highlighted the new statewide Innovation Partnership Fund, a five-year, $20 million-per-year program with small and large grant categories; the first RFA drew strong interest, with more than 400 questions and over 1,000 bidders’ conference participants. The Commission also discussed a proposed extension to spend down about $4.1 million remaining for the Alcove Youth Drop-in Center grants so sites can finish implementation and Stanford can complete the final evaluation. Members asked about grant duration, whether projects can be renewed, what qualifies as innovation, and whether the fund could support service delivery rather than awareness campaigns or training; the Commission said awards are expected to be three-year contracts and that proposals must be new or meaningfully expanded approaches that support BHSA priority populations. DHCS reviewed major behavioral health changes under CalAIM and BH Connect, including peer support, mobile crisis, contingency management, traditional health care practices for tribal members, updated specialty mental health access criteria, and new substance use treatment standards based on ASAM’s fourth edition. DHCS reported strong contingency management results, with more than 13,000 members served and 95% testing negative for stimulant use during treatment, and said 21 Indian health care providers have been approved to offer traditional health care practices. It also described BH Connect initiatives such as the $1.9 billion access reform and outcomes incentive program, workforce investments, evidence-based practice expansion, IMD participation by four counties, and transitional rent services. On BHSA implementation, DHCS said it is not tracking individual county contract cuts but is monitoring county plans and statewide outcomes, while stakeholders raised concerns about local prevention and service gaps. DHCS also outlined its H.R. 1 implementation strategy, including outreach, streamlined renewals, exemptions for disabled, substance use, and medically frail individuals, and proposed clinic navigator and outreach funding; it said it has not yet produced a focused estimate of H.R. 1 impacts on behavioral health populations. The discussion ended with DHCS noting that B-CHIP bond funding has supported 437 infrastructure projects, creating 546 new or expanded facilities and more than 9,500 residential beds across the state.

Transcript Highlights:

• But nonetheless, we will feel that even in the general fund.
• The long-term permanent funds, those that fund the general fund directly, are at $56 billion at the close
• funding for Childhood and a dramatic increase in funding for general government.
• That fund is not generating anything compared to what it should.
• Are they general fund funded or independent? Mr. Chair, they are not general fund funded.

Transcript Highlights:

• Two of these positions were approved to be funded with general fund appropriations in fiscal year 2026
• I just want to confirm that this position is then funded through the fees. No general funds?
• The two positions would continue to be funded with the general fund appropriations in fiscal year 2026
• included an approximate $1.2 million general fund impact.
• million in general fund appropriations.

Bills: AB6 , AB102 , AB131 , AB212 , AB213 , AB220 , AB259 , AB282 , AB376 , AB396 , AB479 , AB503 , AB570 , AB572 , AB574 , AB576 , AB593 , SB185 , SB207 , SB507 , AB6

Committee: Senate Finance