Transcript Highlights:

• Good afternoon, and welcome. This is the Assembly Budget Subcommittee on Human Services.
• for Medicare and Medicaid Services.
• and a good process.
• Good afternoon. Good afternoon, Dr. Jackson and members.
• Good night, and blessings for all, and wisdom. Shakespeare.

Summary: The Assembly Budget Subcommittee on Human Services heard testimony on Department of Developmental Services (DDS) and related budget and trailer bill proposals, with a major focus on the impacts of H.R. 1 on people with intellectual and developmental disabilities (IDD). DDS and the Department of Social Services (DSS) said H.R. 1 could affect Medi-Cal and CalFresh access, but that people with disabilities and caregivers are exempt from the work requirements; the administration is working on data matching and automation through the statewide eligibility system to identify exemptions, with June 1, 2026 as the implementation date for CalFresh changes. Witnesses and advocates warned that any loss of Medi-Cal could create fiscal pressure on regional centers and households, while public commenters described the real-life consequences of losing services. Committee members repeatedly expressed concern about cost shifts to counties and asked for harm-mitigation strategies before the May Revision. The committee also reviewed the governor’s IHSS-related proposals. DSS said the budget would set a baseline for authorized hours, align IHSS disenrollment/reinstatement with Medi-Cal eligibility processes, and eliminate the IHSS backup provider system, while emphasizing that individual service hours would still be based on assessed need. DDS said if a person loses IHSS or Medi-Cal, regional centers may have to step in as payer of last resort for some services, potentially at higher state cost. Members and the Legislative Analyst’s Office questioned whether counties could absorb the proposed shifts without reducing services, and asked for more detail on implementation, data quality controls, and how regional centers could help families navigate disruptions. A separate trailer bill on DDS rate reform and the Quality Incentive Program drew mixed reactions. DDS proposed extending a contract exemption and delaying final rate reform regulations to 2030, saying the changes are budget-neutral and needed for implementation. DDS reported that about 81% of providers had completed the current Quality Incentive Program requirements, but providers and advocates argued the 90-10 structure can function like a penalty and may destabilize services if providers lose 10% of funding. Committee members asked for clearer assistance to providers, possible flexibility for good-faith efforts, and a redlined version of the language before the May Revision. The committee also heard DDS’s proposed trailer bill on regional center governance and provider capacity. DDS said the language would consolidate regional center contracts and performance measures, strengthen board training and oversight, require consumer advisory committees, expand independent legal support, raise the threshold for board approval of contracts, and remove barriers such as physical-office requirements and duplicate vendorization. DDS said the goal is to improve accountability and efficiency while preserving person-centered services, and members indicated they wanted further refinement and stakeholder input before moving forward.

Transcript Highlights:

• Good afternoon, Chair and members. I'm Chris Edens, Chief Deputy Director of Program Services.
• Good afternoon, Chair and members and staff.
• and investigation activities and services.
• Good afternoon, Madam Chair and members. Good afternoon, Madam Chair and members.
• Good evening, Chair and members.

Summary: The Assembly Budget Subcommittee on Health held a May Revision hearing covering several health-related budget proposals and broader concerns about the state’s budget structure. The Chair opened by praising some May Revision changes, such as added health IT funding, county administration support tied to Medi-Cal changes, a delay in Medi-Cal cuts for some lawfully present immigrants, and additional support for Covered California subsidies, while criticizing proposed increases in Medi-Cal premiums, changes to senior eligibility, the lack of a Medi-Cal dental solution, and other reductions affecting counties, mobile crisis units, workforce incentives, and physician shortages. The Legislative Analyst’s Office said the state’s budget condition remains weak despite progress on the structural deficit, and the Department of Finance said the May Revision uses a mix of reductions, reforms, revenue proposals, and fund shifts to cut out-year deficits. The committee first heard Department of State Hospitals proposals, including adjustments to county bed billing authority, contract exemption language for online clinical/pharmacy subscriptions, reversion of unspent funds, a revised Metro Central Utility Plant replacement project, electronic health record implementation, and workforce development funded partly through Behavioral Health Services Act resources. DSH also described savings and realignments in incompetent-to-stand-trial and conditional release programs, including extending the independent placement panel program and shifting funds to support additional bed capacity and a mental health rehab center. Members asked about the use of BHSA funds for workforce programs, and the department said the proposal would replace General Fund support with BHSA reimbursements. The Emergency Medical Services Authority proposed funding for statewide behavioral health crisis response guidance and for enterprise system development, and the Department of Managed Health Care proposed modernization of its complaint system and claims-settlement data system to improve oversight and comply with AB 3275. The largest discussion centered on the administration’s BHSA spending plan under Proposition 1, including state-directed prevention, workforce, and other uses, plus General Fund offsets for existing programs. The LAO questioned whether some proposed offsets fit Proposition 1’s non-supplant and eligible-use requirements, while the administration argued the uses were consistent with the measure and that the state-directed share can be adjusted annually. The Commission for Behavioral Health’s proposals drew the most public and member concern. The administration proposed cutting the commission’s Innovation Partnership Fund from $20 million to $10 million and reducing the Community Advocacy Program by $6.7 million, while redirecting BHSA dollars to other state purposes and direct services. Commissioners, advocates, and several members argued the cuts would weaken community voice, reduce support for underserved populations, and disrupt grants already in process; they also objected to using BHSA funds to backfill General Fund commitments. Public commenters, including youth, disability, behavioral health, LGBTQ, tribal, veteran, immigrant, and community-based organization representatives, overwhelmingly opposed the cuts and urged preservation of prevention, advocacy, mobile crisis, and innovation funding. No votes or final actions were taken during the hearing.

Transcript Highlights:

• Good afternoon. My name is Griselda Maldonado, and I am in support of remote services. Thank you.
• And good afternoon, Madam Chair and members.
• Good afternoon, Emlyn Shabard with California Disability Services Association, and strong support.
• , long-term services and supports.
• Good afternoon, Chair and members.

Summary: The committee heard several bills focused on disability services, food security, veterans, aging services, and child care. SB 969 by Senator Reyes would make permanent the option for Californians with intellectual and developmental disabilities to receive certain regional center services remotely; supporters said remote services improve access, continuity, safety, and choice, and there was no opposition. The committee initially lacked a quorum, so action on the bill was delayed until later in the hearing, when it was moved on a 4-0 vote to Appropriations. SB 1025 by Senator Hurtado would create an Office of Food Security and Affordability to coordinate state food programs, improve CalFresh enrollment, reduce duplication, and support a 24-hour hunger hotline; supporters framed it as a coordination and strategic-planning measure, while some members questioned whether existing programs should be evaluated first and whether the bill needed stronger reporting and accountability. It passed 3-0 to Governmental Organization. The committee also heard SB 1052 by Senator Gonzalez, which would allow the State Council on Developmental Disabilities to appoint contingent authorized representatives so people with developmental disabilities are not left without support if a parent or other primary helper becomes unavailable. Supporters, including families and disability advocates, described emergencies, immigration enforcement fears, and service interruptions as reasons for the bill; members asked about the current approval and renewal process and whether the annual renewal requirement could be streamlined. The bill passed 3-0 to Appropriations. SB 1077, also by Senator Gonzalez, would require the Department of Social Services to prepare for future federal shutdowns by creating a communications and contingency plan for CalFresh disruptions and a state-backed emergency benefits mechanism; supporters cited the 43-day federal shutdown and delays in benefits, and the bill passed 4-0 to Appropriations. Other measures discussed included SB 1201 by Senator McNerney, the No Hungry Heroes Act, which would seek waivers and direct referrals to protect veterans from federal SNAP changes and job-search-related income calculations; it passed 3-0 to Military and Veterans Affairs. SB 1261 by Senator Laird would let aging and disability resource connections continue operating during partner transitions so people do not lose access to “no wrong door” services; it passed 3-0 to Appropriations. SB 1110 by Senator Becker would update child care subsidy funding and reimbursement structures to better reflect direct family services and stabilize providers; the author said a provision tied to the budget would be removed, and the bill passed 4-0 to Education. Finally, SB 991 by Senator Menjivar was presented to improve how abuse and neglect findings in residential care facilities for the elderly are categorized in the licensing database, so serious abuse is not lumped together with lesser violations; testimony described examples of sexual assault and restraint being recorded as generic residents’ rights violations.

Transcript Highlights:

• Good afternoon, my name is Griselda Maldonado, and I'm in support of remote services. Thank you.
• Services Association and strong support. Good afternoon.
• Good afternoon, Mr. Chair and members.
• , long-term services and supports.
• Good afternoon, Chair and members.

Committee: Senate Human Services

Transcript Highlights:

• Good afternoon, and welcome. This is the Assembly Budget Subcommittee on Human Services.
• for Medicare and Medicaid Services.
• and a good process.
• Good afternoon. Good afternoon, Dr. Jackson and members.
• Good night, and blessings for all, and wisdom.

Transcript Highlights:

• They organize and deliver the services that help kids and their families.
• And we'll now turn to Ann. Good afternoon, Chair and committee members.
• and crisis services.
• Good evening, and thank you for your time.
• OT and PT services.

Summary: The House Appropriations Committee held a public hearing on proposed substitute House Bill 2289, the House operating budget. Budget staff Mary Monroe gave a detailed overview of the proposal’s near general fund outlook, reserve levels, major revenue assumptions, and major spending and savings items. She highlighted assumed revenue from capital gains and a proposed “millionaires tax,” a transfer from the budget stabilization account, administrative reductions across agencies, and several major policy shifts, including changes affecting Working Connections Child Care, K-12 education, higher education, long-term care, behavioral health, wildfire response, and state employee compensation. Members then asked questions, including about the higher education building account/operating fee swap and its interaction with the capital budget and Climate Commitment Act funds. The committee also announced amendment deadlines for the budget process. The bulk of the meeting was public testimony, with many speakers generally supporting or opposing specific parts of the budget. Supportive testimony praised funding for wildfire prevention, public health, reproductive health, civil legal aid, the Poison Center, some higher education institutions, and certain disability and child welfare services. Many speakers urged restoration or protection of funding for K-12 education, especially transition to kindergarten, local effort assistance, bus depreciation, and Running Start; others opposed cuts to child care, early learning, public defense, long-term care, adult day and home care services, occupational/physical/speech therapy for Medicaid patients, and community and technical colleges. Several local government, health, and nonprofit representatives also asked the committee to preserve public works, homelessness, energy assistance, environmental justice, and recovery/diversion programs, while some business and public safety groups sought continued funding for organized retail crime prevention and related initiatives. No votes were taken during the hearing. The committee recessed briefly and later resumed with virtual testimony, where additional witnesses repeated concerns about education cuts, long-term care, health care access, disability services, dispute resolution, early childhood programs, and the need for ongoing or increased funding in those areas.

Transcript Highlights:

• and services system.
• And then I'll have Justice and Aging some remarks. Good morning.
• provide remote services, and as far as the population of folks and the services provided, the intent
• services and in-home supportive services.
• services, and health services are necessary for us.

Transcript Highlights:

• Good afternoon, Emlyn Shabard with California Disability Services Association and strong support.
• Good afternoon, Mr. Chair and members.
• , long-term services and supports.
• Good afternoon, Mr. Chair and members.
• Good afternoon, Chair and members.

Committee: Senate Human Services

Summary: The Senate Human Services Committee heard several bills focused on developmental disabilities, food security, veterans, aging services, child care, and elder abuse reporting. SB 969 by Senator Reyes would make remote services for people with intellectual and developmental disabilities a permanent option; supporters said virtual programming improves access, continuity, and choice, and there was no opposition. SB 1025 by Senator Hurtado would create an Office of Food Security and Affordability to coordinate state food programs, improve CalFresh enrollment, and develop a 24-hour hotline; committee members raised questions about duplication, metrics, and oversight, but the bill advanced after discussion. SB 1052 by Senator Gonzalez would allow the State Council on Developmental Disabilities to appoint contingent authorized representatives so people with disabilities are not left without support if a family member becomes unavailable; supporters described immigration enforcement, illness, and family separation as reasons for the bill, and members discussed administrative burden and renewal procedures before the bill passed. SB 1077 by Senator Gonzalez would require CDSS to prepare for future federal shutdowns by creating a communications and contingency plan for CalFresh disruptions and a state-backed emergency food assistance mechanism; members discussed how it would work with existing CalFresh administration, and the bill passed. SB 1201 by Senator McNerney would seek federal waivers to protect vulnerable veterans from new SNAP work requirements and require referrals to county veterans service officers; supporters said the federal cuts would harm homeless, newly discharged, and disabled veterans, and the bill passed. SB 1261 by Senator Laird would let aging and disability resource centers continue operating through partner transitions so services would not be interrupted; supporters emphasized continuity of care and the bill passed. SB 1110 by Senator Becker would revise child care subsidy funding and stabilization rules for alternative payment programs and community providers; supporters said the current reimbursement structure is outdated, and the bill passed after the author said a budget-related provision would be removed. The committee also later voted SB 969, SB 1052, SB 1077, SB 1201, SB 1261, and SB 1110 out of committee, with the bills kept on call for absent members, and began hearing SB 991 on elder abuse reporting, where supporters argued that licensing records should distinguish abuse from lesser resident-rights violations so families and policymakers can better understand facility conduct.

Transcript Highlights:

• And so him leaving the service—or her leaving the service—and to work as a CNA and nursing assistant,
• And that's very good.
• and transitioning service members and veterans.
• and efforts to assist our service members and our veterans.
• In my own experience, my veteran service officer was also my senior vice commander and also my good friend

Summary: The Select Committee on Veterans Affairs met to hear testimony on interim charge 2, focused on military-to-civilian transition, and later on the role of the Military Veteran Peer Network and broader transition supports. The committee first heard from representatives of Midwestern State University and Wichita Falls, who described partnerships with Sheppard Air Force Base, expanded military student services, scholarship support, and the importance of helping service members connect to education, employment, and community before separation. Witnesses emphasized that successful transition is not just about finding a job, but about creating a warm handoff to local employers, colleges, civic groups, and veteran organizations, and they urged earlier outreach while service members are still on active duty. Testimony from Texas A&M University–Central Texas and the Texas A&M University System focused on the Military Talent Pipeline, credentialing, and workforce alignment. Witnesses said Texas should better capture service members’ skills earlier, improve information-sharing with employers, and expand pathways that translate military training into civilian credentials. A major recommendation was a Texas “medic/corpsman to registered nurse” pathway modeled on Wisconsin’s WISMAC program, along with broader reciprocity and bridging programs for military certifications in fields such as aircraft maintenance, trucking, and other high-demand occupations. Members also discussed the need for more staffing and resources at university veteran offices, and the value of measuring the return on state investment in veteran education benefits such as Hazelwood. The committee then heard from the Texas Veterans Commission’s Mental Health Department on the Military Veteran Peer Network. The witness described peer support coordinators and rural veteran counselors who provide warm handoffs, suicide prevention support, and counseling, especially during the first 18 months after separation, which was identified as a high-risk period. She said the network is effective but too small and needs growth, and noted barriers to base access and TAP participation. Additional testimony from a retired Army officer and transition leader stressed that Texas has many strong programs but weak coordination, and recommended using installation-specific approaches, commander engagement, consent-based data sharing, and stronger links between TAP, state resources, and local communities. A final witness from Onward Ops described upstream enrollment, risk screening, certified peer mentors, and data-sharing to proactively support separating service members; he said the current system leaves veterans to navigate stovepiped programs on their own and called for more community partners, especially in rural areas. No votes were taken during the hearing.

Transcript Highlights:

• Good afternoon, Chair and members. Good afternoon, Chair and members.
• and home and community-based services.
• and home and community-based services.
• Good evening, Kevin Buffalino, Sacramento Food Bank and Family Services.
• Good evening, Kevin Buffalino, Sacramento Food Bank and Family Services.

Summary: The Assembly Budget Subcommittee on Human Services held a hearing on the Governor’s May Revision, with no votes taken. The first major topic was child care and early education, where the Department of Social Services and Department of Finance outlined proposed changes to absorb federal Child Care and Development Fund and Proposition 64 revenue reductions, shift some funding between child care programs, end funding for prospective pay implementation now that the federal requirement has been rescinded, adjust the alternative payment administration structure, and fund child care infrastructure grants and a Low-Income Investment Fund contract closeout. The Legislative Analyst’s Office said the budget makes progress on the structural deficit but recommended maintaining the administration’s solution level, making reserve deposits, and avoiding new ongoing commitments; it also raised concerns about shifting reductions to the California Alternative Payment Program and about the proposed administrative-rate change. Committee members strongly criticized the proposed loss of child care slots and said they would oppose eliminating those slots, while also expressing support for child care as essential infrastructure. The committee then reviewed California State Preschool Program proposals. Finance and CDE described reductions to the preschool COLA from 2.41% to 2.01%, removal of prospective pay funding, and increases for the QRIS block grant, audit support, and rate reform implementation. Trailer bill language would codify age-based rate categories, inclusion-rate documentation, family fee collection rules, portability, and excused absences. CDE supported the QRIS increase and some attendance and family-fee changes, but warned that aligning three- and four-year-old rates could reduce support for three-year-olds and that the budget does not fully cover enrollment growth. Members also questioned whether the preschool and child care slot reductions should be reallocated rather than terminated, and the administration said the reductions were intended to reflect current utilization and avoid harm to currently enrolled families. The hearing then moved to CalFresh and nutrition programs. CDSS said the May Revision includes a one-time CalFood augmentation, funding to cover federal SNAP administrative cost-share pressures, and additional staffing and technical assistance to implement HR 1 changes, including the able-bodied adults without dependents time limit and new non-citizen eligibility rules. The department estimated HR 1 could cut CalFresh funding by $2.3 billion to $3.7 billion annually and affect about 500,000 people, with roughly 806,000 adults potentially subject to the time limit and about 34,000 non-citizens expected to lose eligibility once fully implemented. Members pressed for stronger harm mitigation, including a $98 million backfill to protect families from losing food benefits, and raised concerns about county workload and the “chilling effect” on immigrant participation. The final portion of the transcript began the IHSS presentation, noting a revised budget of $33.7 billion total funds and $12.8 billion General Fund, with proposed reductions tied to Medi-Cal asset-limit changes and other federal conformity items.

Transcript Highlights:

• Good afternoon, Chair and members. I'm Chris Edens, Chief Deputy Director of Program Services.
• Good afternoon, Chair and members and staff.
• Good afternoon, Madam Chair and members. Good afternoon, Madam Chair and members.
• Good evening, Chair and members.
• Good evening, Chair and members.

Transcript Highlights:

• Good morning. Good morning, Chairman Murphy and members of the Joint Committee.
• , like you'd expect, and also non-clinical services like ...clinical services like you'd expect and also
• non-clinical services like family education and work and education support.
• vocational services and housing-related services.
• The services are based on National Substance Abuse and Mental Health Services The services are based

Committee: Joint Joint Committee on Financial Services

Summary: The committee held a hearing on a large group of behavioral health and insurance-related bills. Topics included expanding access to mental health services by allowing physician assistants to authorize Section 12 emergency holds and be recognized as licensed mental health professionals (H. 1131/S. 773); improving coverage for community behavioral health centers so commercial insurance matches MassHealth’s bundled outpatient and crisis services (H. 1276/S. 703); eliminating cost sharing for certain behavioral health services (S. 718); extending detox and clinical stabilization coverage from 14 to 30 days and adding transitional support services (H. 1319/S. 772); requiring coverage for dual-diagnosis treatment in psychiatric facilities (H. 1277/S. 771); and preserving access to treatment for serious mental illness through coverage of coordinated specialty care and assertive community treatment (H. 1135/S. 709). The committee also heard bills on preventive behavioral health services for children (H. 1228/S. 802) and post-pregnancy mental health care, including postpartum depression and pregnancy loss-related care (H. 1314/S. 823).

Transcript Highlights:

• services, and the challenges...
• Good afternoon, Chair and members.
• access to supports and services.
• Good afternoon, Chair and members. AB 1324... Good afternoon, Chair and members.
• Thank you, and good afternoon, Madam Chair and members.

Summary: The committee heard a series of child care, social services, immigrant support, disability services, and language access bills, with many measures drawing strong support and no opposition. Early in the hearing, AB 450 proposed a Department of Aging task force to study and recommend policies for undocumented adults age 55 and older; AB 593 would let CDSS identify data-sharing opportunities to improve CalFresh administration and participation; and AB 904 would clarify child care subsidy eligibility so families do not lose care during pregnancy leave, family leave, caregiving, or job search periods. All three were presented as ways to reduce barriers and improve access to essential services, and AB 904 was moved out on a 1-0 call after support testimony from child care advocates and a member of the public. AB 617, which would expand and standardize respite care access for people with intellectual and developmental disabilities by requiring licensing and registry participation, drew both support and significant opposition from respite providers and disability service organizations concerned about added regulation, cost, and possible delays; the author said she would continue working with opponents, and the bill was moved out on a 2-0 call. The committee also heard AB 1220, which would require regional centers to document denials, notices of action, and appeals in individual program plans and include that data in annual reports to improve transparency and equity in developmental services. The bill drew extensive public support from parents, advocates, and disability organizations, with no opposition, and passed 5-0. AB 752 would make child care centers by right in certain residential zones when co-located with multifamily housing or institutional uses, and supporters argued it would reduce zoning barriers and help expand child care capacity; it also passed 5-0. AB 1242 would create a CalHHS language access director, require human review of machine translation, and improve language coverage determinations for state and local agencies; supporters emphasized health equity and the need for better access for limited-English communities, and the bill was moved out on a 4-0 call. Later, AB 548 would continue and expand the Asylee and Vulnerable Non-Citizen Program, which provides case management and integration services for asylees and certain visa holders; supporters said the program had been effective but had run out of funding, and the bill passed 4-0. AB 495, the Family Preparedness Plan Act, would strengthen family safety planning for immigrant families, standardize acceptance of caregiver authorization affidavits, and create a joint guardianship process for temporary separations; testimony focused on fear of family separation and the need for clear school and medical procedures, and the bill passed 4-0. AB 1357 would exclude guaranteed income payments from being counted as income for state public assistance eligibility, with supporters arguing it would prevent recipients from falling off the “benefits cliff”; it passed 4-1. Finally, AB 1201, the Reunity Act, was introduced to require individualized court assessments before denying reunification services to parents with certain violent felony convictions after a five-year period, with the author and a witness describing the bill as a trauma-informed approach to family reunification.

Transcript Highlights:

• RCW 82.04.050 is really the key statutory section that addresses what goods and services are subject
• to retail sales... ...statutory section that addresses what goods and services are subject to retail
• the sales tax rate that we pay on goods and services.
• And generally when we talk about that, we're talking about where the good or the service is received
• various goods and services.

Summary: The committee first received a presentation from Dr. Reich on the Economic and Revenue Forecast Council (ERFC), including how the council’s joint executive-legislative forecasting process works, the main state revenue sources, and recent economic conditions. He said Washington’s economy is slowing, with weak employment growth, softer taxable sales, and uncertainty from tariffs, federal spending, and the federal shutdown. He also noted that the September forecast was reduced, mainly because of lower sales tax and real estate excise tax collections, and that the state still expects modest growth rather than a recession. Members asked about whether Washington tends to lag national downturns and how forecast information should affect budgeting; Dr. Reich said the forecast is a revenue tool, not a budgeting decision, and that spending choices remain with elected officials. The Department of Revenue then presented on Washington’s sales and use tax structure and the implementation of Senate Bill 5814, which expands retail sales tax to several services effective October 1, 2025. Steve Ewing explained how sales and use tax are sourced, how reseller permits and the multiple points of use exemption work, and how the new law applies to live presentations, temporary staffing, investigations and security services, IT services, custom website development, advertising services, and custom software. He said DOR held listening sessions, issued interim guidance, and set up a centralized landing page and outreach efforts to help taxpayers understand the changes. He also described a six-month grace period for certain pre-existing contracts through March 31, 2026, but said penalties and interest still apply under the statute. Committee members raised concerns about how businesses and individuals will know when a service is taxable, who is responsible for collecting and remitting tax, and how sourcing will work for services delivered across multiple locations or online. DOR staff walked through examples involving accounting services, live lectures, virtual events, advertising campaigns, and search engine marketing, including the use of reasonable allocation and pool codes when exact sourcing data is unavailable. Members also questioned the administrative burden on small businesses and professionals newly subject to tax, and whether additional legislative fixes or relief from penalties and interest may be needed. No votes or formal actions were taken in the work session.

Transcript Highlights:

• Good afternoon, and welcome.
• Good afternoon, Chair and members. Good afternoon, Chair and members.
• and home and community-based services.
• services, foster care services, and adoptions.
• Good evening, Kevin Buffalino, Sacramento Food Bank and Family Services.

Transcript Highlights:

• Thank you for your service. Good evening, Vice Chair Stanford and members of the committee.
• and loss of vital services.
• and therapeutic services.
• Without good employment services, I would struggle to keep my job and would no longer be a taxpayer.
• Good evening, Vice Chair and committee.

Summary: The Senate Ways and Means Committee heard an overview from OFM Director Katie Chapman See on Governor Ferguson’s 2026 supplemental budget proposal. She said the budget was built in response to higher caseloads and inflation, a roughly $390 million revenue forecast drop, new federal costs tied to H.R. 1, and a relatively small ending fund balance. The proposal would increase near general fund spending by about $1.1 billion and solve an estimated $2.3 billion two-year gap through about $800 million in reductions, revenue shifts and tax preference changes, use of other funds, and about $1 billion from the budget stabilization account. She also noted the budget is balanced over two years but not fully over four years under the state’s outlook rules. Chapman See highlighted reductions in Working Connections Child Care, including a soft cap on enrollment and holding subsidy rates at the 75th percentile, delays to long-term care and developmental disability-related changes, and across-the-board reductions to higher education and administrative spending. She also described investments in wildfire suppression and preparedness, affordability programs like utility rebates and home energy assistance, housing-related planning and permitting support, One Washington IT replacement, behavioral health workforce programs, and continued support for some K-12 initiatives such as ninth grade success and homeless student stability. In response to questions, she said some proposed cuts were based on the governor’s subjective judgment about what was critically necessary, that current child care enrollees would not be cut off immediately, and that the budget would maintain services for about 500 highest-acuity Medicaid clients who lost eligibility under federal changes. Public testimony was largely critical of the proposed cuts in K-12, early learning, and higher education. School officials, educators, nurses, and advocacy groups opposed reductions to Transition to Kindergarten, Local Effort Assistance, Running Start, MSOC, school leadership and support grants, and higher education funding, arguing the cuts would worsen existing funding gaps and harm student outcomes. Several witnesses supported restoring or maintaining funding for ninth grade success, Treehouse’s foster youth graduation program, homeless student stability, and Science on Wheels. In early learning, child care providers and advocates opposed the Working Connections cap and subsidy-rate reduction, warning it would reduce access and destabilize providers. In higher education, campus leaders and labor representatives opposed across-the-board cuts and fund shifts, while some institutions and advocates supported targeted investments such as behavioral health workforce programs and DigiPen aid restoration. In human services, Planned Parenthood advocates praised restored abortion access funding and Medicaid reimbursements. The committee took no votes or final action in the transcript provided.

Transcript Highlights:

• Thank you for your service. Good evening, Vice Chair Stanford and members of the committee.
• Thank you for your service. Good evening, Vice Chair, Stanford, and members of the committee.
• and loss of vital services.
• and therapeutic services.
• Without good employment services, I would struggle to keep my job and would no longer be a taxpayer.

Bills: SB5998

Committee: Senate Ways & Means

Transcript Highlights:

• Good afternoon. Dixie with the California Alliance of Child and Family Services.
• Good afternoon, Dixie, with the California Alliance of Child and Family Services. Good afternoon.
• Good afternoon, Chair and members. My name is Abitz Tanig Zai. Good afternoon, Chair and members.
• Good afternoon, Chair and members. My name is Abitz Tanig Zai. Good afternoon, Chair and members.
• Good afternoon. Al Grant, on behalf of the California Alliance of Child and Family Services...

Summary: The Assembly Budget Subcommittee on Health held an informational hearing on the Governor’s May Revision, focusing first on the Commission on Behavioral Health, then EMSA, and then the California Department of Public Health (CDPH). The Department of Finance said the state faces a third consecutive deficit and that the May Revision includes difficult trade-offs, including proposed eliminations or reversions of some behavioral health and public health funds. The LAO echoed concern about the structural deficit and said it was still awaiting some budget details before offering a full analysis. For the Commission on Behavioral Health, Finance proposed eliminating $20 million in Mental Health Wellness Act funds, arguing the money would help offset General Fund costs and noting future Proposition 1 innovation funding. The commission strongly opposed the cut, saying it would eliminate or delay launch-ready grants for early childhood supports, full-service partnerships, and peer respite, and would eventually end ongoing grant programming. Several advocates and commissioners testified that the funds support underserved communities and that Proposition 1 is not a substitute for the existing programs. The chair asked Finance to look for alternatives, but no vote was taken. EMSA presented mostly technical budget adjustments: increased authority for the California Poison Control System, a correction to EMSIS funding, and a reappropriation for enterprise services and data management. CDPH then reviewed a broader set of May Revision proposals, including reversions from the California Reducing Disparities Project, workforce development, STD prevention, hepatitis C prevention, hospice, and extreme heat funding, as well as a new generative AI pilot for health facility survey reporting. Members raised concerns about cuts to CRDP and gender health equity programs, especially because many grants are mid-contract and serve underserved communities; CDPH said the reversions were part of solving the deficit and that CRDP had been successful, while also clarifying that abortion.ca.gov would not be eliminated. Public comment was overwhelmingly opposed to the CRDP and related cuts, with many speakers describing the programs as life-saving and cost-effective. No formal votes or actions were taken during the hearing.

Transcript Highlights:

• And when we're providing these service?
• , and track which services are taxable and which aren't.
• Personal services, funeral services, and auto repair and maintenance.
• So you look at services and taxpayer.
• And if we don't do that, and this is a good approach.

Committee: Senate Taxes

Transcript Highlights:

• And much of it, I think, is around services and resources and institutions and programs that were never
• And in some communities, it's because there are good family support services available.
• And that really depends on very good safety plans and having the right kinds of services, which I'll
• a good matchup between needs and services, and it's time we start using that technology, I think, to
• services and the help they need.

Bills: SB5979 , SB6308 , SB6319

Committee: Senate Human Services