Transcript Highlights:

• Justin Hurst, Department of Finance.
• George Harris, Department of Finance.
• Elena Powell, Department of Finance.
• Justin Hurst, Department of Finance.
• Finance, welcome. Good afternoon. Again, Devin Mitchell with the Department of Finance.

Summary: The committee heard the May Revision presentation for the Assembly Budget Subcommittee on Education Finance, with public comment focused heavily on K-12 priorities such as universal school meals, kitchen infrastructure, food service and custodial support, youth leadership grants, Special Olympics funding, English learner support, universal pre-K, literacy investments, and concerns about community college funding shifts. Speakers also urged support for expanded learning, teacher recruitment and training, and maintaining or increasing funding for community colleges and student support programs. Finance and the LAO then reviewed the Proposition 98 outlook. Finance said the May Revision lowers the 2025-26 Prop. 98 guarantee to $114.6 billion, about $4.3 billion below January, due mainly to lower revenue estimates, with smaller effects from attendance and property tax changes. The administration also described rebenching for universal transitional kindergarten and a one-time rebench tied to Los Angeles fire-related property tax losses, along with changes to the Public School System Stabilization Account, deferrals, and updated COLA assumptions. The LAO said the budget relies too much on deferrals and one-time funds, creates a structural shortfall, and should instead align ongoing spending with the guarantee and preserve a reserve buffer. Members questioned the TK rebench and the shift of funding from community colleges to K-12, asking why it was being applied retroactively and how colleges would be held harmless. Finance said the changes align funding with where TK costs are being incurred and that reappropriation funding and other adjustments would offset impacts on community colleges. The LAO argued the historical split formula is outdated and should be abandoned in favor of budgeting around current priorities rather than fixed percentages. Members also raised concerns about draining the rainy day reserve and using deferrals, while the LAO said preserving reserves would better protect against future volatility. The committee then moved to specific K-12 and education proposals. Finance outlined May Revision changes including state operations adjustments for the Department of Education, technical trailer bill changes, a $100 million student teacher stipend program administered by Kern County, and updates to the charter school facility grant program. The LAO recommended rejecting the proposed increases for expanded learning, literacy coaches, and the student teacher stipend as currently structured, while supporting the minimum grant increase for expanded learning. Members expressed support for teacher recruitment efforts but questioned whether one-time funding can sustain ongoing programs and whether the student teacher stipend should be targeted to shortage areas or low-income communities.

Transcript Highlights:

• and they approve the project financing and they approve the project financing that<00:07:36.400>
• <00:09:01.680> in page is a list of projects financed in page is a list of projects financed
• divided between the business financing divided between the business financing Authority<00:11:42.480
• 2021 specifically for infrastructure 2021 specifically for infrastructure enhancements<02:36:45.760
• We heard a lot about your capital infrastructure.

Keywords: 928, house, all

Summary: New Hampshire Housing Finance Authority officials, led by Executive Director Rob Dapice, briefed legislators on the agency’s structure and funding. They explained that the authority is created by state law but is not a state agency, its debt is not state debt, and it is governed by a board appointed by the governor and approved by the Executive Council. The discussion focused on the Affordable Housing Fund and the lead paint hazard remediation fund, including how state appropriations and federal resources are combined to finance affordable rental housing and lead abatement work. Dapice said the Affordable Housing Fund is used as gap financing for multifamily affordable housing projects, typically alongside federal tax credits and tax-exempt bonds, and that state dollars leverage roughly 2:1 to 10:1 in additional federal and private investment, averaging about 4:1. He said the fund has received historic appropriations in recent budgets, including $30 million over the last two biennial budgets and an annual $5 million set-aside from the real estate transfer tax. He also said the fund is usually structured as 0% interest, deferred loans rather than grants, with repayments returning to the fund if projects generate cash flow. Members asked about rents, oversight, staffing, revenues, and whether the programs had added positions. Dapice said affordability restrictions generally last 30 to 99 years, rents are tied to income limits and capped so tenants pay no more than 30% of income, and compliance staff inspect properties regularly to verify income eligibility and rent limits. He said the organization has about 130 to 135 employees, down from about 145, with no new positions added because of the appropriations. He estimated total revenues at roughly $300 million, with administrative budget around $22 million, much of it pass-through grant money. On lead paint remediation, he said the state first appropriated $6 million in 2019, plus $1 million in ARPA funds, and that the program has cleared more than 500 units. He said the federal grant program is not annual or predictable, with a recent award of about $7.75 million, and that the maximum federal grant per unit is $177,000, typically paired with up to $100,000 in state loan support. He also noted that the program can address homes before a child is poisoned if lead hazards are identified, but that cases involving an already exposed child are a higher priority. No votes or formal actions were taken.

Transcript Highlights:

• My name is Cecilia Mavro Mattis, and I am with the Department of Finance and Administration, and I'm
• This includes the Executive and Legislative Finance Committee recommendations for special supplemental
• That's a New Mexico Finance Authority program that funds workforce housing.
• I serve as your Chief of Staff within Senate Finance.
• , they're investing in the heavy infrastructure to get everything operational.

Keywords: 996, all

Transcript Highlights:

• Senator Zaffirini is at the end so that she can slip out to go to finance.
• And if you're still here when I finish in finance and jurisdiction with jurisprudence with those bills
• And if you're still here when I finish in finance and jurisdiction with jurisprudence with those bills
• This bill is about smart infrastructure planning.
• This bill is about smart infrastructure planning.

Bills: HB1237, HB2663, HB3071, HB4384

Keywords: occupational licenses, renewal, Texas Commission on Environmental Quality, registration, license expiration, HB 2663, inactive well, plugging extension, Railroad Commission of Texas, RRC, oil and gas, orphan wells, well cleanup, well plugging, abandoned wells, surface equipment removal, electric service termination, administrative penalty, Natural Resources Code, Section 89.029

Summary: The Senate Committee on Natural Resources heard several House bills dealing with environmental regulation, oil and gas safety, landfill permits, and utility cost recovery. HB 1237, by Rep. Geren and sponsored by Sen. Zaffirini, would extend TCEQ occupational license renewal deadlines from 30 days to 90 days, allow renewal up to one year with higher fees, and require a new application after longer expiration; the committee substitute clarified that applicants may continue working only until renewal is approved or denied and set a 180-day cutoff for renewal. HB 3071, sponsored by Sen. Hancock, would require TCEQ to cancel certain long-dormant municipal solid waste permits; members discussed concerns about precedent, ownership changes, and whether the bill should be narrowed, and the bill was left pending with a committee substitute expected. The committee also heard HB 2663, sponsored by Sen. Birdwell, which would require operators of inactive oil and gas wells to remove or de-energize electrical equipment after 10 years and authorize Railroad Commission penalties for false compliance. Testimony from landowners, cattle raisers, and the Sierra Club supported the bill as a wildfire-prevention measure, and the bill was left pending. HB 4384, also by Rep. Darby and sponsored by Sen. Birdwell, would let natural gas utilities defer certain infrastructure costs for later recovery through the GRIP process; utility representatives supported it as credit-positive and consistent with existing accounting, while consumer advocates opposed it as increasing rates without enough oversight. The committee discussed possible amendments to add more cost controls, and the bill was left pending. Later, the committee voted HB 2563, the companion to SB 2510, favorably to the full Senate by a 5-0 vote and ordered it certified for the local and uncontested calendar. The committee then took up HB 143, which would codify interagency procedures for addressing electrical power line safety at well sites and related facilities after wildfire concerns; members said a committee substitute had been negotiated with agencies and stakeholders to clarify responsibilities, timelines, and inspection authority while reducing fiscal impact. No final vote was taken on HB 143, and the committee recessed with several bills still pending.

Transcript Highlights:

• Next, for the Mortgage Finance Authority Act Oversight Committee, Christina Vasquez.
• I'm going to start with the Mortgage Finance Authority (MFA) first.
• Next, the Transportation Infrastructure Revenue Subcommittee, Martin Fisher.
• Next, the New Mexico Finance Authority Oversight Committee, Sabina Gainer.
• I am the lead staff attorney for the New Mexico Finance Authority.

Transcript Highlights:

• There were 166 of these financings in Florida last year; there was one in Alabama.
• the infrastructure... ...district to finance the infrastructure to Wall Street through a much lower
• All of that can benefit as well because this is more of a public infrastructure capital.
• So everything recruitment districts dollars come in have to be spent on public infrastructure: roads,
• That's how we finance the improvements, through this fund. Okay, and like I said, we...

Bills: HB145, HB311

Keywords: HB145, scrap tires, scrap tire disposal, illegal dumping, ADEM, Alabama Department of Environmental Management, environmental enforcement, Class 2 municipality, municipal court, local enforcement, delegation agreement, primacy, waste management, tire recycling, tire hauling, environmental quality act, misdemeanor penalties, Class A misdemeanor, Class B misdemeanor, Class C misdemeanor

Transcript Highlights:

• It aligns financing with the true cost of care, and transparency is built into how the program operates
• The third thing they have in common is the need for infrastructure.
• The third thing they have in common is the need for infrastructure.
• The third thing they have in common is the need for infrastructure.
• But there's not a lot. infrastructure there. There are populations growing.

Bills: SB241, SB145

Keywords: child care, child care assistance, child care subsidy, early childhood education, early childhood care, daycare, preschool, pre-K, Head Start, Early Head Start, Children's Code, early childhood education and care department, ECECD, child care facilities, licensed child care, registered child care, copayments, waitlist, subsidy, federal poverty level

Transcript Highlights:

• And then, um, we will be voting to move this out, uh, to re-refer to finance.
• Chair, you refer it to finance.
• Senate File 4276, as amended, is recommended to pass and re-referred to the Finance Committee.
• Senate File 4276, as amended, is recommended to pass and re-referred to the Finance Committee.
• and counties currently lack financing and counties currently lack financing tools<00:24:47.880><

Keywords: 1187, senate, all

Transcript Highlights:

• Housing infrastructure bonds are an extremely flexible tool, and they are the state's largest source
• Housing infrastructure bonds are an extremely flexible tool, and they are the state's largest source
• Support and pass Senate File 203 this year by investing in housing infrastructure bonds.
• housing in uh housing infrastructure housing in uh housing infrastructure bonds<00:13:42.839>
• Finance Agency so the current total Finance Agency so the current total amount<00:15:38.079> authorized

Keywords: 1187, senate, all

Transcript Highlights:

• infrastructure down at the Port of Entry and the Industrial Park.
• We've discussed that with Senator George Muñoz, who chairs the Legislative Finance and Senate Finance
• Two is poor aging infrastructure on bridges.
• Obviously better infrastructure, but that PR campaign worked.
• , I mean, excuse me, in Finance Authority, Miskel Finance, where I saw that GARB rails all over are down

Transcript Highlights:

• The funding is necessary to provide and develop the infrastructure and the investment for infrastructure
• When I think of infrastructure, I think of our facilities, our equipment, and our buildings.
• When I mention test beds, here I mean these are federally funded infrastructures. where we can take the
• I think as members here on finance and appropriations, we need to know where those...
• When you talk about infrastructure, you talk about facilities, equipment, and people.

Transcript Highlights:

• Yes, George Harris, the Department of Finance.
• Christon Malhotra, Department of Finance.
• And then, just speaking of infrastructure needs, as noted in the agenda, there are infrastructure needs
• Department of Finance. George Harris, Department of Finance.
• And I believe Department of Finance is going to, we'll start with Department of Finance, then LAO and

Summary: The joint hearing focused on California’s child care, preschool, and transitional kindergarten oversight, with chairs emphasizing the state’s Master Plan for Early Learning and Care and the need to break down silos between programs. CDSS and CDE reported progress toward the plan’s goals, including universal access to TK for all four-year-olds next school year, expanded access for low-income three-year-olds, and more children with disabilities being served in state preschool. They also noted ongoing work on quality rating/review reform, funding structure changes, and the need to address rates, workforce shortages, and federal uncertainty around Head Start. Testimony from advocacy groups and providers largely supported expanding access while simplifying the system. Children Now, Every Child California, and the California Budget and Policy Center argued that California still has uneven access, especially for infants, toddlers, and three-year-olds, and urged investments in mixed delivery, inclusion, full-day options, and a cost-of-care rate methodology. Every Child California recommended consolidating part-day and full-day contracts, streamlining eligibility priorities, making the two-year-old option permanent, and funding staffing incentives. Parent testimony highlighted how child care gaps and county-to-county transfer delays can disrupt work, safety, and children’s stability, and providers described low reimbursement rates, the need for health and retirement benefits, and support for delinking subsidy rates from private pay. The second panel addressed universal transitional kindergarten. The Learning Policy Institute reported rapid TK expansion, with most districts now offering TK, but said access still depends on facilities, staffing, and whether programs are available at all school sites. The Department of Finance said the governor’s budget would fully implement TK by adding funding for all eligible four-year-olds and lowering the adult-to-child ratio from 12:1 to 10:1. The Legislative Analyst’s Office said the administration’s enrollment and cost assumptions were optimistic and estimated lower TK enrollment growth and lower costs for the ratio change. CDE supported the expansion and urged continued funding for UPK coordinators, teacher development, and mixed-delivery planning grants. Members questioned facilities shortages, staffing competition, and how to ensure TK expansion does not displace CSPP or Head Start classrooms. No formal votes or actions were taken in the hearing.

Transcript Highlights:

• Chris Hill, Department of Finance. Thanks. Good afternoon. Chris Hill, Department of Finance.
• Chris Hill, Department of Finance.
• That's a tax-exempt financing.
• Department of Finance. Kayla Landman, Department of Finance.
• The Department of Finance?

Summary: The hearing began with a vote-only agenda and then focused first on San Mateo County’s request to restore in-lieu vehicle license fee (VLF) funding. County officials, city leaders, labor representatives, nonprofits, and public safety advocates argued that the loss of roughly $157 million would force major cuts to homelessness services, housing assistance, mental health programs, libraries, parks, fire and police staffing, and other local services. They described the current formula as outdated and unfair, tied to school funding and basic-aid dynamics that no longer work for San Mateo County, and urged both an immediate budget restoration and a permanent legislative fix. The Department of Finance said the payments are discretionary, not statutorily required, and noted the administration does not view the expenditure as sustainable in the current fiscal climate. Committee members expressed sympathy, questioned the formula, and said they would keep the issue under consideration; the committee later voted to move the two vote-only items on the agenda. The committee then received an update from the Department of General Services on state property redevelopment, including the Hillcrest DMV site in San Diego, the Fell Street DMV site in San Francisco, and other state-owned properties. DGS explained that Hillcrest is not currently an active project, while the Fell Street project shifted from an integrated DMV-housing plan to a more feasible relocation of the DMV into leased commercial space, with a budget change proposal pending. Members pressed DGS on the slow pace of redevelopment, the potential for housing on state sites, and the costs and feasibility of adaptive reuse. DGS said many state buildings are aging and that adaptive reuse depends heavily on building design, floorplate depth, light, and risk from unknown conditions behind walls. The Government Operations portion then turned to the California Education Learning Lab, which supports intersegmental higher education innovation grants. The Lab asked for permanent restoration of $4 million in ongoing funding and a move of its home agency from the Office of Land Use and Climate Innovation to GovOps, along with technical trailer bill changes. Supporters said the program has funded more than 120 projects reaching thousands of faculty and hundreds of thousands of students, including work on generative AI in higher education. The Legislative Analyst’s Office recommended rejecting the restoration and continuing the wind-down, citing the state’s projected deficit and suggesting the California Education Interagency Council could pursue non-state-funded grant opportunities instead. The committee held the item open. Finally, GovOps presented the new California Education Interagency Council staffing request, seeking four ongoing positions to support the council, with funding already included in last year’s budget. The department said the governor has appointed Debbie Cochran as executive officer and that the remaining positions are being recruited. Finance and LAO had no objections, and the committee began questions about how the council will be staffed and organized.

Transcript Highlights:

• Lisa Mir Szynski with the Department of Finance.
• I would defer to my Department of Finance colleague.
• And I have a sneaking suspicion Finance might have a comment. Thank you.
• Colby White, Department of Finance.
• I wrote Prop. 58 with Rick Simpson and whoever was at Finance at that time.

Keywords: 987, senate, all

Transcript Highlights:

• Department of Finance? Emily Marshall, Department of Finance, nothing further.
• Department of Finance. Emily Marshall, Department of Finance.
• Department of Finance. Thomas Locke, Department of Finance.
• Department of Finance. Thomas Locke, Department of Finance.
• Department of Finance. Thomas Locke, Department of Finance.

Keywords: 988, house, all

Transcript Highlights:

• new infrastructure or an entirely new development.
• pays for that infrastructure.
• But we just don't have the commercial infrastructure to be able to pay commercial rates.
• But we just don't have the commercial infrastructure to be a somewhat.
• But we just don't have the commercial infrastructure to be able to pay commercial rates.

Bills: SB211, SB131, SB183, SB222, SB246, SB254

Keywords: appropriation, local government, Las Vegas, Rodriguez Park, public facilities, zoning reform, building regulations, residential apartments, commercial use, multigenerational housing, local government authority, healthcare, urgent care, emergency services, feasibility study, medical facilities, physician training, medical residency, New Mexico, massage therapy

Transcript Highlights:

• it might be easier to finance. it might be easier to finance.
• <04:39:50.480> grant<04:39:50.798> program infrastructure grant program infrastructure
• can help lay out the infrastructure can help lay out the infrastructure needed<04:48:13.920>
• rates on financing. rates on financing.
• around uh the amount of infrastructure around uh the amount of infrastructure in<04:55:37.440>

Keywords: 1189, house, all

Transcript Highlights:

• housing, including new construction and rehabilitation of their homes. an existing building and financing
• Just to make sure we're clear on the finance side of it: the $10 million that's set aside per year will
• core infrastructure needs.
• And so they are financing that. They needed a 14% levy increase.
• Sort of the policy and finance parts will be carried in the HHS or in the Human Services bill?

Transcript Highlights:

• We included both cities and counties, recognizing that both maintain and own sidewalk infrastructure.
• And then And counties, recognizing that both maintain and own sidewalk infrastructure.
• This includes things like vessels, vehicles, infrastructure, and some hydrogen projects.
• And this is important: does this program depend heavily on another program's infrastructure?
• Washington faces increased infrastructure needs and growing financial pressures.

Keywords: 904, all

Transcript Highlights:

• David, I'm not the Department of Finance. It's not the Department of Finance. It's from the PUC.
• Aaron Carson, Department of Finance.
• And so if the state provides the financing, a part of that financing, because these projects can be in
• Department of Finance. Thank you. Department of Finance? Nothing to add.
• Department of Finance. David Evans, Department of Finance.

Keywords: 988, house, all