Transcript Highlights:

• These bills have been discussed and debated and based on the funds generated by SB 151, These bills have
• been discussed and debated and based on the funds generated by SB 151.
• A typical tax credit has its liability placed against the general fund or some sort of tax program that
• That separates the liability from the general fund and gives you another lever, so your appropriations
• to the general fund, permanent funds, education, health care, and local revenues.

Summary: The committee first took up the proposed 2026 tax package, Senate Bill 151, and adopted a committee substitute after discussion of the package’s funding capacity and included measures. The substitute bundled five bills: a physician tax credit, a quantum facility infrastructure tax credit, a construction materials gross receipts deduction for affordable multifamily housing, a local journalist employment tax credit, and a health equipment gross receipts deduction. Members discussed amendments that raised the physician credit from $4,000 to $10,000, narrowed the housing deduction to project-based certification, and reduced the journalist credit threshold from four stories to three. Concerns were raised about the fiscal impact on municipalities, especially Albuquerque, and about the funding mechanism, but the committee voted 6-4 to give the substitute a do pass recommendation. Senator Sanchez explained his vote, saying he wished more could have been included in the package. The committee then heard Senate Bill 18, the Clear Horizons Act, which would codify statewide greenhouse gas reduction targets and direct the Environment Department and Environmental Improvement Board to develop plans and rules for emissions reductions. The sponsors said the bill builds on the governor’s 2019 executive order, includes a 10,000-metric-ton threshold for covered emitters, allows certified offsets, and is intended to protect public health, reduce climate-related costs, and provide regulatory certainty. Supporters argued the bill would help communities facing wildfire, drought, health harms, and rising insurance and utility costs, and that it would encourage clean-energy investment and long-term economic stability. Opposition testimony came from mining, oil and gas, rural electric cooperatives, construction, agriculture, auto dealers, chambers of commerce, banks, water recycling companies, and realtors. They argued the bill functions like a carbon tax or broad regulatory mandate, would raise energy and compliance costs, could reduce investment and jobs, and would disproportionately affect rural, tribal, agricultural, and low-income communities. Several witnesses warned of higher electricity and fuel bills, revenue losses for local governments, and uncertainty from delegating major policy decisions to rulemaking. Supporters included public health advocates, educators, local officials, clean-energy businesses, tribal and environmental advocates, and residents affected by wildfire and drought, who said the bill is necessary to address climate harms and protect public health and the economy. No final committee vote on SB 18 was reached in the portion provided.

Transcript Highlights:

• The state general fund cost this year is an additional $1.1 billion to essentially one of the changes
• And so the state is covering that loss in federal dollars using general fund.
• And so in the budget year, we have $1.1 billion in additional general fund cost as a result of H.R. 1
• And so the state is covering that loss in federal dollars using general fund.
• And so in the budget year, we have $1.1 billion in additional general fund cost as a result of HR1.

Summary: The Assembly Health Committee held an informational hearing on the impact of federal H.R. 1 and related state budget actions on California’s health care system. Opening remarks framed the federal changes as a major threat to Medi-Cal, Covered California, hospitals, clinics, and the broader safety net, with warnings that millions could lose coverage and that costs would shift to providers, counties, and consumers. Testimony from the California Health Care Foundation and the Legislative Analyst’s Office focused on implementation challenges, the administrative burden of work requirements and more frequent renewals, the loss of federal funding, and the need for California to consider long-term structural changes to Medi-Cal, county safety-net programs, and cost containment. A Covered California enrollee, Chas Franklin, described sharply rising premiums for his family after losing subsidies, illustrating the personal impact of federal policy changes. Committee members raised concerns about whether premium increases were driven by H.R. 1 or insurer pricing, the cost of rebuilding county-based indigent care systems, and the need to account for the cost of inaction. Dr. Hernandez pointed to pre-ACA models such as Healthy San Francisco as examples of coordinated local safety-net care, while also emphasizing the importance of primary care, data interoperability, and the Office of Health Care Affordability in reducing waste and improving access. Department of Health Care Services officials then outlined the state’s implementation plan for H.R. 1, including work requirements, six-month redeterminations, reduced retroactive coverage, cost-sharing, and immigration-related eligibility changes. They said the department would try to automate eligibility checks, expand outreach, and train counties and partners, but estimated up to 2 million Californians could lose coverage over time. Covered California reported that the expiration of enhanced federal premium tax credits and new federal marketplace rules are already raising costs and reducing enrollment, with an estimated 400,000 enrollees at risk of dropping coverage. County, hospital, and safety-net representatives warned that coverage losses will increase uncompensated care and strain local systems, while one coalition proposed a temporary state-funded coverage option as a bridge if full-scope Medi-Cal cannot be maintained. The hearing concluded with a policy analyst urging stakeholder engagement, immigrant protections, and new state revenue options to preserve coverage and offset federal cuts.

Transcript Highlights:

• So 55% of our funding comes from the General Fund.
• They are 100% funded by the General Fund.
• General Fund.
• One is, as Senator Blake Speer's shared, about lessening the General Fund impact by funding more of these
• One is, as Senator Blake Speer has shared, about lessening the General Fund impact by funding more of

Summary: The subcommittee met to discuss several California Conservation Corps (CCC) and Cal Fire budget proposals, with no votes taken and all items held open for a future hearing. The CCC overview highlighted the program’s 50th anniversary, its statewide conservation, disaster response, education, and workforce development work, and its funding mix of General Fund and fee-for-service reimbursements. Members praised the program’s impact on young adults and communities, and asked about revenue sources, partnerships, recruitment, and outcomes for Corps members after service. A major CCC item was reopening and staffing the Greenwood Residential Center in El Dorado County. The department said the center is needed to restore local wildfire and fuel-break capacity, especially when winter road closures limit access to other facilities. The LAO said the proposal has merit but suggested the Legislature consider lower-cost alternatives, such as using fewer new Corps members or delaying opening, given the budget condition. The committee also discussed a proposal to move CCC hand crews to a seven-day wildfire readiness schedule; the department argued this is needed to match Cal Fire’s year-round operations and reduce chronic staffing gaps, while the LAO recommended considering partial funding or other cost-saving options. Cal Fire’s department overview focused on year-round wildfire response, vegetation management, community preparedness, and the 66-hour workweek rollout. Members asked about contract counties, federal partnerships, reforestation capacity, and the use of cap-and-invest and General Fund dollars amid structural deficits. Cal Fire said its nursery capacity is far below reforestation needs and relies on public-private partnerships, and it described reimbursements for work on federal lands. The committee also discussed defensible space inspections, with Cal Fire seeking permanent staffing to replace temporary positions and maintain its goal of 250,000 inspections annually; the LAO suggested alternatives such as different funding mixes, a reinstated SRA fee, or one-time funding. Finally, the committee heard a request to increase Cal Fire’s fixed-wing pilot and mechanic contract. Cal Fire said the larger, more complex aircraft fleet and year-round fire season require more pilots and maintainers, and that contracting provides flexibility and avoids some benefit costs. The LAO said the proposal addresses significant health and safety concerns and merits consideration, while members questioned whether in-house staffing or longer contract terms might be more cost-effective. Throughout the hearing, members emphasized wildfire risk, budget pressures, and the need to balance public safety with fiscal discipline.

Transcript Highlights:

• We will also focus on mechanisms that generate funding for local jurisdictions, and there's a few things
• But in terms of the impacts of budget, there are two main things like our core funding for our revenue
• The biggest impact, not only to the road fund, but also...
• The biggest impact, not only to the road fund, but also other taxing districts such as the County General
• that's actually from the general fund.

Committee: Joint Joint Transportation Committee

Summary: The committee first heard an update on the Joint Transportation Committee study of transportation impacts if the Lower Snake River dams were removed. WSDOT and Jacobs described the study’s phases, including current work on geology, infrastructure risk, and a total logistics cost model. They explained that the study is examining how freight now moved by barge—especially wheat, fertilizer, and wood—could shift to rail and roads, and they outlined several scenarios ranging from no-dam future conditions to new unit-train terminals, short-line rail options, and a combined “many solutions” scenario. Members asked about irrigation, impacts in Idaho and Oregon, port capacity, emissions, competition, EV trucks, and whether the model could estimate transportation effects if grain volumes decline. The presenters said the study assumes current production levels continue, does not model irrigation changes or broader farm-economics impacts, but does account for transloading costs and can estimate transportation impacts under different volume assumptions. WSU’s independent review team said the model has improved substantially but still needed refinement, especially in routing, road data, and spatial detail, and that stakeholder engagement had been strong though delayed by model development. No votes were taken. The committee then received a presentation on the alternative sidewalk funding study. Staff and consultants said the study is exploring ways local governments could sustainably fund sidewalk maintenance, repair, and new construction, using a statewide survey, interviews, national research, and case studies in eight jurisdictions. They noted sidewalks are important for pedestrian safety and connectivity, but there is no dedicated funding source in Washington, and existing grants and local revenue tools are highly competitive or limited. The consultants highlighted sidewalk fees or utility-style charges as the most promising option to study, while a parcel tax was largely set aside because of state property-tax uniformity concerns. Members asked whether the study would duplicate existing funding or add to current taxes, and how a sidewalk fee would be collected; the consultants said the goal is to expand local options, not mandate adoption, and that fees would likely be billed through utilities rather than property taxes. A preliminary draft report is due December 15, with a final report due in mid-June. Next, staff gave a brief update on the ocean-going vessels study, which is examining shore power and emissions rules for vessels at berth. The presenter explained that federal Clean Air Act rules and California waiver authority create legal limits on how far Washington can go if it wants to adopt similar standards, and that deviations from California’s approach can increase litigation risk. The report will summarize stakeholder outreach and will be presented in draft form at the next JTC meeting. Finally, county engineers from Chelan and Douglas counties began a presentation on county transportation challenges, with the association’s director emphasizing collaboration with state agencies and local partners on issues such as fish passage barriers and infrastructure needs. The county presentation was only beginning when the transcript ended, and no committee action or votes were recorded.

Transcript Highlights:

• Chair, our base general fund request was for 15.88 million.
• the two DFA and LSE recommendations, they added 776,700 in the general fund for a total general fund
• It is Worth noting before I turn it over to Sunil A that the agency is not funded from the General Fund
• And what we're asking for is not general fund money.
• , not the general fund.

Committees: Senate Senate Finance , Senate House Appropriations & Finance

Transcript Highlights:

• Of this total, $175 million is from the General Fund, while the rest comes from federal funds, reimbursements
• the ongoing operation of the database without using General Fund, and HCAI’s budget request is consistent
• The funding sources include no General Fund, as I mentioned.
• And finally, it includes a request for four positions, $1,368,000 General Fund in 2026–27 and $1,319,000
• General Fund in 2027–28 and ongoing, to support workload at EMSA for human resources, enforcement, and

Transcript Highlights:

• It's called the entry-age normal funding method. All that really means in general is that...
• to fund the next.
• So in general, we did not identify any significant. the biggest impact.
• And our funded ratio, now 99.43%. And our funded ratio now 99.43%.
• You can get more funded or less funded, but it's very hard to just stay there.

Summary: The Public Retirement System Actuarial Committee met on February 23, 2026, approved the December 18, 2025 minutes, and heard actuarial valuation reports and experience studies for several retirement systems. Presenters repeatedly noted strong investment performance, payroll growth, and generally improving funded ratios across the systems, with most plans showing lower minimum recommended employer contribution rates for fiscal 2027. The committee also received explanations of funding deposit accounts, frozen unfunded liabilities in some plans, and how recent legislative changes, including the move to five-year DROP periods in some systems, affected costs and assumptions. For the Clerk of Court, District Attorney, Firefighters, Municipal Employees (Plans A and B), Municipal Police, Registrars of Voters, and Sheriffs systems, the committee reviewed 2025 actuarial evaluations and, where applicable, 2025 experience studies. The actuarial reviewers reported no significant deficiencies and said the valuations were completed in accordance with applicable actuarial standards, generally accepted actuarial practice, and state statutes. The experience studies generally led to modest assumption changes, with some cost decreases from salary, mortality, withdrawal, and asset experience, while some plans saw offsetting increases from retirement or post-DROP behavior. The committee asked a brief question about mortality assumptions and was told the studies use separate male/female and safety/non-safety tables adjusted for Louisiana experience. The committee adopted each valuation and experience study without objection. Key fiscal 2027 minimum recommended employer contribution rates included 14.75% for Clerk of Court, 3.0% for District Attorneys, 25.5% for Firefighters, 20.75% for MERS Plan A, 8.75% for MERS Plan B, 26.5% for Municipal Police, 0% for Registrars of Voters with a $207,683 allocation to the Member Supplemental Savings Fund, and 7.75% for Sheriffs. The committee also recognized DROP crediting rates where applicable and adjourned after completing all agenda items.

Transcript Highlights:

• So they go back to the General Fund? That's correct.
• It goes back to the General Fund.
• It should stay in the General Fund. Okay.
• Instead, we can just reappropriate past General Fund.
• funds, which is $568,000 in General Fund in 2026-27, and then a little less, $925,000 General Fund ongoing

Transcript Highlights:

• That restoration for 24-25 will not impact the general fund because it's going to be paid for using unspent
• to the general fund.
• what portion of workload is supported by those special fund regulatory fees versus the general fund.
• And so for 2025-26, for example, about half of the costs will be supported from the general fund.
• But in 2024-25, we paid for cost using the general fund. That's the exact same program.

Transcript Highlights:

• That was a result of actions that the Legislature consciously took to support the general revenue fund
• And so the money was then free to use in the general revenue fund.
• And so the money was then free to news in the general revenue fund.
• And so the money was then free to news in the general revenue fund.
• It's the general revenue transfer to the emergency preparedness and response fund.

Summary: The committee met to hear Amy Baker’s presentation on Florida’s constitutionally required long-range financial outlook for fiscal years 2026-27 through 2028-29. Baker said the forecast reflects slower but still positive economic growth, continued above-average personal income growth, rising wages, and population growth that is increasingly driven by in-migration as Florida’s senior population expands. She highlighted weakening housing-related revenue, especially documentary stamp taxes, softer consumer sentiment, and the expectation that Florida will pass 25 million residents by 2030, with nearly a quarter of the population age 65 or older. Baker said the outlook largely retained the March 2025 general revenue forecast, but the Legislature’s 2025 session actions significantly improved near-term funds available by redirecting or freeing up money, including contingency appropriations and reversions. She noted total state reserves are just under $15 billion, or about 30% of general revenue, and that the budget stabilization fund is at its constitutional maximum. The main spending pressures in the outlook were critical needs, led by a new emergency preparedness and response fund transfer and Medicaid growth driven mainly by medical inflation and behavioral analysis costs in managed care, not by caseload growth. Other high-priority needs were also identified, and Baker said the first year shows a projected surplus, but years two and three show shortfalls, meaning fiscal strategies will still be needed. Members questioned Baker about the accuracy of the forecast, Medicaid managed care costs, the emergency preparedness fund, federal funding assumptions, and whether recent federal legislation was reflected in the numbers. Baker said the outlook is a good representation of the total picture, though the Legislature will likely adjust it as conditions change, and that more information on federal changes would come in later estimating conferences. Senator Trumbull asked about the governor’s veto of $750 million, and Baker said it simply returned to unallocated general revenue rather than being spent or added to the budget stabilization fund. The chair closed by warning members to expect a difficult budgeting process and noting that the committee would adjourn without further action.

Transcript Highlights:

• And in general, we...
• It's called the entry-age normal funding method. All that really means in general is that...
• to fund the next.
• You can get more funded or less funded, but it's very hard to just stay there.
• You can get more funded or less funded, but it's very hard to just stay there.

Summary: The Public Retirement System Actuarial Committee met on February 23, 2026, approved the December 18, 2025 minutes, and heard no public comment. The committee then reviewed actuarial valuation reports and, for most systems, accompanying experience studies. The actuaries reported generally favorable investment and demographic experience across the systems, with funded ratios improving and employer contribution rates declining in several plans. They also explained the role of funding deposit accounts, frozen unfunded liabilities in some plans, and how recent legislative changes, especially the move to five-year DROP periods in some systems, affected assumptions and costs. For the Louisiana Clerk of Court Retirement Relief Fund, the committee adopted the valuation and experience study, recognizing a fiscal 2027 minimum recommended employer rate of 14.75%. For the District Attorney’s Retirement System, it adopted the valuation and experience study and recognized a fiscal 2027 minimum rate of 3.00%. For the Firefighters’ Retirement System, the committee adopted the valuation and experience study, recognized a fiscal 2027 minimum rate of 25.5%, and noted that DROP balances left on deposit will earn the market rate of return of 11.7%. The committee also adopted the Municipal Employees’ Retirement System valuation for both Plan A and Plan B, recognizing fiscal 2027 minimum rates of 20.75% and 8.75%, respectively. It adopted the Municipal Police Employees’ Retirement System valuation and experience study, recognizing a fiscal 2027 minimum rate of 26.5%, a DROP crediting rate of 7.4%, and a policy range up to 29.35% for future contributions. For the Registrars of Voters Employees’ Retirement System, the committee adopted the valuation and experience study, recognized a fiscal 2027 minimum rate of 0%, and noted a $207,683 allocation to the Member Supplemental Savings Fund for fiscal 2026. Finally, it adopted the Sheriff’s Pension and Relief Fund valuation and experience study, recognizing a fiscal 2027 minimum rate of 7.75%. All motions passed without objection, and the meeting adjourned.

Transcript Highlights:

• received the other $2.8-ish. $3 million general fund.
• million in state General Fund for the nutrition programs.
• approved permanent General Fund increases to support and enhance nutrition programs.
• , but the baseline funding amount will remain the same at $61 million in General Fund.
• To be clear, that's general fund dollars.

Transcript Highlights:

• The Loan Fund generated 179 loans totaling $13.7 million and supported over 1,000 jobs.
• Generous gave us $50 million in infrastructure funding.
• The numbers for the general fund were $11 billion.
• I would not ask for it to necessarily come from the general fund, but something to consider.
• to dip into the general fund.

Committee: House Investments & Pensions Oversight Committee

Transcript Highlights:

• The hazardous substance tax generates revenue to fund these programs authorized under MOTCA and applies
• fund.
• It's three one-hundredths, and it maintains on until we have a fund ceiling and a fund floor.
• diverted to the general fund is not used to reduce toxic pollution and prevent it in the first place
• evergreen perpetual fund.

Summary: The committee first heard updates on the Model Toxics Control Act (MTCA) and related funding. Department of Ecology staff explained how MTCA and the hazardous substance tax support cleanup, prevention, stormwater, and local assistance programs, but said forecasted revenues have declined while appropriations and transfers have outpaced incoming funds. Ecology said the operating account will require underspending to stay balanced this biennium and that the problem is ongoing, with further reductions possible if forecasts worsen. Ecology also reviewed the state cleanup program, noting there are more than 14,500 cleanup sites in Washington and that new sites continue to be discovered faster than they are cleaned up. A question from Representative Lee raised the long-term issue of declining fossil-fuel-based revenue, and Ecology agreed that this is a future structural concern even though the current shortfall is driven more by forecasts and transfers than by fuel-use decline. The Pollution Liability Insurance Agency described its underground storage tank and heating oil programs, saying it has modernized from a reinsurance model to a financial assurance model with stronger state oversight and cleanup milestones. Russ Olson said the agency’s dedicated petroleum tax account is in strong financial condition, but emphasized the importance of preserving that funding source. He also discussed the loan and grant program for historic commercial releases and a new heating oil loan/grant program, while noting the agency is working on equity concerns where liens can be disproportionate to property values in smaller communities. Practitioners and advocates then offered differing views on MTCA’s performance: one attorney urged a collaborative review process to make cleanups faster, less expensive, and more certain, while another consultant argued the program is too conservative and process-heavy and should focus more narrowly on actual exposure and realistic cleanup standards. Environmental and community groups countered that MTCA is essential for cleanup, pollution prevention, stormwater control, and public participation, and that it is especially important for environmental justice communities such as the Duwamish Valley. Port and city representatives stressed that MTCA grants and cleanup funding are critical for large redevelopment projects, but said long timelines, permitting delays, and funding uncertainty can slow projects and jeopardize commitments. The committee then shifted to utility wildfire risk. Staff summarized recent legislation, including requirements for utility wildfire mitigation plans, creation of a wildfire mitigation standards work group, authorization for captive insurance by local governments and PUDs, securitization authority for disaster costs, and the existing wildfire response and resilience account. Chelan County PUD and Puget Sound Energy described extensive mitigation efforts such as vegetation management, grid hardening, undergrounding, AI smoke cameras, weather stations, enhanced operating settings, public safety power shutoffs, and community outreach. Both said wildfire risk is rising and insurance costs are increasing, and Chelan PUD asked the Legislature to restore funding to the wildfire response and resilience account. The Office of the Insurance Commissioner said a 2022 utility liability market study found insurance availability is tightening as perceived risk rises, and reported that a 2025 work group recommended restoring community resilience funding, requiring insurers to share wildfire risk scores and mitigation steps with property owners, and creating a grant program based on insurance industry wildfire standards. A PNNL scientist added that wildfire probability is increasing in parts of Washington and that mitigation requires long-term, landscape-scale coordination. The final speaker began describing California’s approach to wildfire risk, but the transcript cuts off before that presentation concluded.

Transcript Highlights:

• General Fund.
• Fund and non-General Fund activities or between General Fund and enterprise activities, essentially.
• 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

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:

• Of this total, $175 million is from the General Fund, while the rest comes from federal funds, reimbursements
• The funding sources include no General Fund, as I mentioned.
• The funding sources include no general fund, as I mentioned.
• And finally, it includes a request for four positions, $1,368,000 General Fund in 2026-27 and $1,319,000
• General Fund in 2027-28 and ongoing to support workload at EMSA for human resources, enforcement, and

Summary: The Assembly Budget Subcommittee on Health heard updates on five health-related budget items. First, members reviewed state support for distressed hospitals and health facilities. The California Health Facilities Financing Authority and HCAI described the Distressed Hospital Loan Program as a lifeline for 16 hospitals, many of which remain financially strained and are expected to seek loan forgiveness rather than repayment. Speakers cited reduced contract labor, new service lines, strategic partnerships, and the reopening of Madera Hospital as signs of progress, but also warned that federal policy changes under H.R. 1 will likely increase uncompensated care and pressure emergency departments. Public commenters from hospital, dental, and consumer groups supported additional funding, including a request to refresh the program with another $300 million. The committee then heard HCAI’s update on the California Rural Health Transformation Program, a five-year federal initiative funded at $233.6 million for California. HCAI said the program will focus on rural care models, workforce development, and health technology, with grants to be rolled out on a fast timeline and all funds obligated by October 30, 2026. Members raised concerns about rural provider capacity to apply for grants, and HCAI said it will use a third-party administrator, a technical assistance center, webinars, and other supports to help applicants. HCAI also presented its budget request for the health care payments database, seeking ongoing non-General Fund support to continue operations and expand data, including pharmacy benefit manager data. The Emergency Medical Services Authority presented three budget change proposals: funding to replace disaster medical services fleet vehicles, funding for IT security work, and additional positions for HR, enforcement, and legal workload. A member also raised concern that EMSA has not yet completed the annual ambulance rate reporting required by AB 716, and EMSA said it remains committed to the requirement but lost prior funding through later budget reductions. Covered California reported that it is still finalizing its own budget, but expects a lower operating budget due to efforts to reduce baseline costs and align spending with actual expenditures; it also projected enrollment declines tied to the expiration of enhanced premium tax credits, H.R. 1, and federal rule changes, while noting that revenues may still rise because premiums are expected to increase. Finally, the Department of Managed Health Care outlined budget proposals tied to menopause coverage and education, PBM licensure and enforcement under AB 116 and SB 41, credentialing reforms under AB 1041, and prior authorization reporting under SB 306. Public testimony generally supported the menopause and PBM proposals, while also urging clearer language and attention to Medi-Cal parity. The hearing concluded after public comment, including additional advocacy for sickle cell services and rural health workforce funding.

Transcript Highlights:

• This modest funding investment generates a significant multiplier effect, with an additional 156 jobs
• Our California Film Commission under GoBiz requests $472,000 General Fund to support three permanent
• Our department requests $400,000 General Fund ongoing to support one permanent position.
• for Any sense at all to be increasing General Fund spending, frankly, for anything.
• It is worth underscoring that these credits are not current General Fund obligations.

Summary: The subcommittee heard an overview from Go-Biz Director D.D. Myers on the administration’s economic development strategy, centered on the California Jobs First framework. Myers described regional planning across 13 regions, the Jobs First Council, and pilot sectors including ag-tech, space and defense, life sciences, and semiconductors. She also outlined budget requests for CalCompetes, CalExport, the California Film Commission, innovation/emerging technologies, and the California Civic Media Fund, along with the new California brand campaign. Committee members raised questions about misinformation about California, regulatory burdens, tourism versus broader economic messaging, and how the brand campaign would highlight underrepresented communities. No vote was taken; the item was informational. The committee then reviewed CalOSBA’s work on small business support, including California RISE, the Performing Arts Equitable Payroll Fund, and TAP/SIP technical assistance and capital infusion programs. CalOSBA reported that California RISE’s first cohort awarded $16.9 million to 61 employment social enterprises, with growth in revenue, contracts, and jobs; the performing arts payroll fund paid all 100 recipients but was heavily oversubscribed; and TAP supported more than 112,000 businesses in the past year, helping leverage federal and local funds. Testimony from program partners emphasized the importance of small business counseling, community-based outreach, and support for arts organizations facing post-pandemic and AB 5-related cost pressures. Senators pressed for more data on long-term job retention, better outreach to smaller and ethnic media, and possible program changes to speed grants and stretch funding further. Finally, the committee heard Go-Biz’s request for additional staff and funding for the California Film and Television Tax Credit Program. Staff said the request would support application review, DEIA implementation, and data tracking. The Film Commission reported that about 147 productions had been approved and roughly 90% were opting into the new diversity provisions, with career pathways reporting to include demographic and participation data and a future report expected in 2027. Senators asked about accountability, apprenticeship and internship hours, and whether the program was producing real career pathways and inclusive hiring outcomes. The item remained informational, with no vote or action taken during the hearing.

Transcript Highlights:

• So I want to know if this money and the water districts are not funded, what type of impact?
• I want to know if this money and the water districts are not funded, what type of impact would that have
• We need to ensure that the local communities who fund veteran services will not be impacted by this proposal
• The same county general fund supports indigent care, public health, and emergency medical response.
• The same county general fund supports indigent care, public health, and emergency medical response.

Transcript Highlights:

• Instead of experiencing a revenue shock of $300 million or more impacting the general fund or leading
• funds to the general fund.
• Dollars go to the general fund in blue.
• The investment earnings in the general fund are growing faster than other revenues in the general fund
• That's the general fund amount.

Committee: House House Appropriations & Finance

Transcript Highlights:

• , the San Joaquin Valley Impact Investment Fund, and the Community Economic Mobilization Initiative,
• If you look at the generation of jobs, you could see that actually the San Joaquin Valley is generating
• If you look at the generation of jobs, you could see that actually the San Joaquin Valley is generating
• It was a $600 million initiative to fund planning grants and economic Resilience Fund, SURF.
• when there is one-time funded, you know, kind of a year-by-year cases funding model.