Transcript Highlights:

• and then obviously just the annual budget going forward traditionally?
• We saw MassHealth costs grow by 10% in the FY2026 budget.
• We saw mass health costs grow by 10% in the FY26 budget.
• With that in mind, we have two recommendations for the FY27 budget.
• There's a lot of pressures on this budget.

Keywords: 995, all

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

Transcript Highlights:

• However, this budget does the opposite.
• plan for 2020. 25-26, the budget year.
• budget change proposals.
• But it's not going to be in time for this budget.
• It's never going to match up to our budget. Oh sure.

Keywords: 988, house, all

Transcript Highlights:

• The Senate Budget and Fiscal Review Subcommittee 4 will come to order.
• As our office has discussed, each year the budget would spend...
• More policy in the budget.
• I want to emphasize and urge Cal Home in the proposed budget.
• We very much appreciate the Senate's budget plan.

Keywords: 987, senate, all

Transcript Highlights:

• The Senate Budget and Fiscal Review Subcommittee 4 will come to order.
• the budget would spend more than it's estimated to take in revenues in the budget year, and every year
• More policy in the budget.
• Cal Home in the proposed budget.
• We very much appreciate the Senate's budget plan.

Summary: The subcommittee heard several May Revision proposals related to the state’s housing and homelessness reorganization. On the first item, administration and Finance staff described technical adjustments to move administrative positions and resources between the California Housing and Homelessness Agency, HCD, and Cal ICH, plus authority for a chief deputy director at the new Housing Development Finance Committee. The LAO recommended approval but asked for clarification on funding for the chief deputy position. Several senators questioned whether the staffing shifts would reduce Cal ICH’s capacity and whether adding communications support and a new executive position was appropriate absent new housing funding; the item was held open. The second item proposed a new $100 million CalHFA Disaster Rebuilding Fund, with $56 million General Fund and $44 million in existing National Mortgage Settlement funds, to help disaster-impacted homeowners access construction financing through tools such as a loan loss guarantee and interest rate buy-downs. CalHFA said the fund would help close the gap between insurance proceeds and rebuilding costs and would work through approved lenders. The LAO raised concerns about the lack of alternatives analysis, the broad delegation in the trailer bill, and the General Fund cost. Senators pressed for more detail on the estimated number of homeowners served, lender and homeowner eligibility, equity safeguards, and the role of the Legislature in program design; the item was held open. The third item was trailer bill language for HAP Round 7, including accountability metrics, pro-housing designation requirements for certain large cities and counties, local match requirements, and a mechanism to recapture unspent funds. HCD said the proposal would streamline reporting by using one consistent set of system performance measures and would phase in the new requirements. The LAO questioned the timing, the burden of pro-housing designation, the size and source of the local match, and whether the proposal conflicted with the Legislature’s prior goal of getting funds out quickly. Several senators criticized the added requirements and the lack of new funding, while others said the proposal could improve accountability and reduce administrative burden by reusing existing plans. The item was also held open. The fourth item began a proposal to reduce local development impact fees on state-funded affordable housing projects, framed as a condition on competitive multifamily funding rather than a statewide mandate. The presentation started but the transcript cuts off before questions or action on that item.

Transcript Highlights:

• Budget Subcommittee No. 3 on Health and Human Services will come to order.
• This is the budget chair asking that in tough budget times, so I apologize.
• This is the budget chair asking that in tough budget time, so I apologize.
• Related to the Community Care Licensing Division's budget proposed for fiscal year 2026-27, the budget
• Related to the Community Care Licensing Division's budget, proposed for fiscal year 26-27, the budget

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

Transcript Highlights:

• So even though we feel like the LFC budget does, So even though we feel like the LFC budget does backfill
• It is not in the budget for FY27. It's not in the legislative or the executive budget at this time.
• the exec budget, the executive...
• The difference between the LFC budget and the exec budget, the executive has $6.2 million that is not
• reflected in the LFC budget.

Keywords: 996, all

Transcript Highlights:

• Julia Gradney with the Office of Planning and Budget.
• Next is the five-year baseline budget.
• Our total proposed operating budget is...
• Our operating budget rose by about 2%.
• Current year budget. All right. Any questions?

Keywords: 965, house, all

Summary: The Joint Legislative Committee on the Budget met on February 19, 2026, and first received an unchanged fiscal status statement and five-year baseline projection from the Office of Planning and Budget. Members approved the fiscal status statement, and the baseline budget was noted as unchanged from the prior month. The committee also approved Facility Planning and Control’s request to add five higher education deferred maintenance projects to the Act 751 eligible list, and reviewed four change orders over $50,000 for informational purposes. The committee then approved the Louisiana Lottery Corporation’s fiscal year 2026-2027 operating budget. Lottery officials reported $610 million in projected gross revenue, emphasized 29 consecutive years without legislative auditor findings or management comments, and noted the corporation’s long-running transfers to the MFP and State General Fund. Members also approved the 2026-2027 operating budgets for LASERS, TRSL, the School Employees’ Retirement System, and the State Police Retirement System en bloc. The retirement systems described modest budget increases or decreases, strong investment performance, and continued progress in reducing unfunded liabilities; members discussed COLA prospects, UAL paydown, and the impact of surplus dollars on retirement debt reduction. The committee approved prior-year deputy sheriff supplemental pay expenditures of $20,262.32 and then approved several legislative intent clarifications for prior appropriations, including items for Tangipahoa Parish, Harahan, Allen Parish, Morgan City, and DeSoto Parish. It also approved the Water Sector Commission’s recommendation for an additional $2.8 million for four ongoing water and sewer projects. Several contract items were reviewed without action, including DEQ’s extension with RTI International, Tourism’s marketing contract amendments, and the Office of Risk Management’s Sedgwick claims administration amendment. The meeting concluded with adjournment after no further business.

Transcript Highlights:

• I want to welcome everyone to the State Administration Budget Subcommittee.
• I want to welcome everyone to the State Administration Budget Subcommittee.
• They have last year's budget, they have the current year budget, and some of them are even posting the
• tentative budget for the future year.
• and then adopted budget.

Summary: The State Administration Budget Subcommittee met with a quorum and considered three bills. HB 1221, the Department of Financial Services agency package, was presented as a streamlining and modernization bill covering the My Safe Florida Home Program, unclaimed property, and the state’s new PALM accounting system. Two amendments were adopted: one restoring the current $15 million cap DFS may retain in the unclaimed property trust fund and another making conforming changes to replace references to FLAIR with PALM. The bill was supported by public witnesses and was reported favorably after a unanimous roll call vote. The committee then heard HB 1291, dealing with the Florida Birth-Related Neurological Injury Compensation Association (NICA). The sponsor explained that the bill was intended to address concerns that NICA could fall below actuarially sound funding in the 2027-2028 fiscal year and that current law lacks clear triggers for funding remedies. An amendment was adopted that removed the bill’s fiscal impact and preserved a $20 million reserve. NICA representatives spoke in support, and the amended bill was reported favorably by unanimous vote. Finally, the committee took up CSHB 1329, which would modernize local government budget transparency by requiring budgets to be posted 14 days before hearings, retained online for five years, and made searchable and accessible, while also requiring a 10% budget-cutting exercise before adoption. Local government groups and the CFO’s office discussed costs and suggested that the EDR portal may be a better centralized way to present the data, especially for smaller jurisdictions. Members generally supported the transparency goal but raised concerns about implementation costs; the sponsor said the bill was still being refined. The bill was reported favorably on a mostly party-line vote, with one member voting no for now. The meeting then adjourned after the chair noted submission of the FY 2026-27 budget recommendation.

Transcript Highlights:

• But in the regular budget, we're going to ask for something that hasn't been in the budget for probably
• You'll see it in the FY27 budget.
• You'll also see this in the FY27 budget.
• You'll also see this in the FY27 budget.
• when they present their budget.

Keywords: 959, house, all

Transcript Highlights:

• million, or 27.5% of their budget.
• Well, the state money is a direct pass-through through the 20-941 budget. I have two budgets.
• I have my agency budget and I have a pass-through budget.
• budget.
• DOTD's FY27 budget decreases when compared to the current year budget by $79 million, or 8.8%.

Summary: The committee first heard the House Fiscal Division’s FY 2027 budget presentations for the State Treasury, Public Service Commission, Department of Civil Service, and Department of Agriculture and Forestry. Treasury’s recommended budget was about $15 million with 74 positions, funded largely by self-generated revenue. Treasury staff highlighted strong investment returns, record unclaimed property recoveries, a new ACH option to speed and reduce the cost of payments, a School Transparency portal that helped uncover questionable school spending, and a new online portal that has sped up processing of cooperative endeavor agreements and related payments. Members praised the transparency work and faster payments, and asked about bond ratings, CEA oversight, and the public accessibility of the transparency site. The Public Service Commission’s FY 2027 budget was presented at $11.5 million, entirely self-generated, with most spending on personnel; commissioners said salary and market adjustments were needed to address heavy attorney and auditor turnover. Civil Service’s FY 2027 budget was presented at $28.7 million, with major funding from interagency transfers and general fund, and officials explained recent pay-plan and special entrance rate changes intended to improve recruitment and retention across state agencies. Members asked how those compensation changes were developed and whether market studies supported them. The Agriculture and Forestry budget was presented at $91.4 million, with major funding from statutory dedications, general fund, and federal dollars, and the commissioner described severe pressure on farmers from low commodity prices, drought, freezes, wildfires, storm damage, and labor shortages. The Agriculture and Forestry discussion was the longest and most detailed. The commissioner said the state is working to expand markets, reduce costs, and help farmers through federal assistance, while also seeking more equipment and fuel for wildfire response after a severe fire weekend and ongoing drought conditions. Members raised concerns about storm-damaged timber, soil and water conservation funding, and the loss of federal dollars that depend on local technicians. The commissioner explained the wildfire suppression subfund, the role of severance taxes, and the limits of current firefighting equipment and staffing. He also discussed the seafood sector, especially shrimp and crawfish, saying imported seafood, currency changes, tariffs, and H-2B worker shortages are hurting Louisiana producers and processors. He said the department is testing imported seafood for antibiotics, wants more authority to hold contaminated product, and is pursuing legislation to support seafood promotion and testing. Members also asked about wood chips, rail transport, timber severance reporting, and incentives for wood pellet use, and the commissioner said the department is exploring new markets, including overseas buyers for wood and agricultural products. No formal votes or bill actions were taken in the portion provided; the meeting consisted of budget presentations, agency testimony, and member questions and comments. The tone throughout was supportive of the agencies’ work, with repeated praise for Treasury’s transparency efforts, Civil Service’s compensation reforms, and Agriculture and Forestry’s advocacy for farmers, foresters, and seafood producers.

Transcript Highlights:

• Supplemental budget number two affects the previously estimated funds available for budget operations
• The supplemental budget will be referred to the Budget and Tax Committee and for the conference committee
• Supplemental budget number 30th, 2027.
• c><00:03:56.120><c> to</c><00:03:56.280><c> the</c><00:03:56.360><c> Budget</c> budget will be referred
• to the Budget budget will be referred to the Budget and<00:03:56.680><c> Tax</c><00:03:56.920><c> Committee

Keywords: Senate streaming session for Friday, March 27, 2026, 960, senate, all

Transcript Highlights:

• I am familiar with our budget.
• </c><00:04:33.280><c> I</c> and um I am familiar with our budget I and um I am familiar with our budget
• </c> was involved with the FY uh 2627 budget was involved with the FY uh 2627 budget development<00:04
• into our operating budget.
• Yes, it's a budgeted expense.

Keywords: 928, house, all

Summary: The meeting began with testimony from Charlotte Harding of the Conservation Land Stewardship Program, who explained that the office protects the state’s interests in conservation lands by monitoring conservation easements and related stewardship obligations. She described the program’s funding sources: a land conservation endowment held at the State Treasury and administered by the Council on Resources and Development, plus transfers from Fish and Game for easements not covered by the endowment. Members discussed how the endowment is funded when new easements are created, the program’s staffing, the loss of a state vehicle, and the need to increase in-state travel so staff can use personal vehicles for field monitoring. Harding said the office has two full-time positions and a seasonal employee, that the work is mostly monitoring rather than hands-on land management, and that enforcement issues are referred to the grantee agencies or, if needed, to the Council on Resources and Development. She also noted that the office works directly with landowners to resolve smaller issues and that stewardship has become a greater focus in the conservation community because ongoing oversight requires funding. Members asked about examples of properties under the program, including LCIP lands such as Musquash Headwaters, Hidden Valley Boy Scout Camp, and Nash Stream, and the committee did not take a motion before moving on. The committee then heard from Paul Breen and Susie Anzelone of the Pease Development Authority regarding the Division of Ports and Harbors operating budget. They explained that the authority provides finance, legal, environmental, and engineering support to the division, which operates New Hampshire’s only deep-water berth at Market Street, as well as facilities in Hampton, Rye, the Portsmouth Fish Pier, and navigational waters in the Piscataqua and Great Bay. They described the authority’s history after the closure of Pease Air Force Base, the transfer of roughly 2,400 acres, and the creation of a self-sustaining enterprise fund tied to airport and port operations. They emphasized that the division does not draw on the general fund because revenues from wharfage, dockage, parking, registration, and mooring fees cover operating costs, with any surplus retained for capital improvements and replacement. Members questioned several budget lines, including a sharp increase in overtime and workers’ compensation. Breen said overtime is driven largely by security needs at the deep-water port and fluctuates with vessel traffic, such as salt shipments, while workers’ comp is a DAS-set cost and not something the division controls. He said the budget is conservative and that if revenues fall short, capital projects would be the first items scaled back. The discussion also covered fee-setting, with Breen saying rates are reviewed against the local market and infrastructure constraints, and that some smaller facility fees had recently been increased after being stagnant for years.

Transcript Highlights:

• Well, members, welcome to Budget Week. Well, members, welcome to Budget Week.
• But that's the budget stabilization fund.
• The Speaker and Chair McClure asked the budget subcommittees to take a deep dive into the budget, to
• less than the current year budget.
• We do not vote on this recommended budget today.

Summary: The Pre-K through 12 Budget Subcommittee met during Budget Week and first considered three member bills. House Bill 1111, by Rep. Valdes, would eliminate the option for students to leave high school with a certificate of completion instead of a standard diploma. Valdes said the bill was inspired by students who met credit requirements but could not pass a required assessment, and argued the certificate does not provide access to college, trade school, or military service. The bill passed unanimously, 15-0. CS for House Bill 127, by Rep. Kendall, would support students with disabilities by using existing Florida Department of Education curriculum to create micro-credentials and coordinating with the Florida Center for Students with Unique Abilities and OSHA on workplace safety. Goodwill, the Florida Developmental Disabilities Council, Florida PTA, and others supported the bill, which also passed unanimously, 15-0. House Bill 1367, by Rep. Booth, addressed chronic absenteeism by requiring statewide definitions and more uniform attendance reporting, along with rules for excused and unexcused absences and early identification of chronically absent students. Testimony emphasized inconsistent district policies and the need for clearer data and interventions. The bill passed 13-0, with some members noting concerns about implementation details and future rulemaking. The committee then took up PCB-P-PKB-2501, the proposed conforming bill for the fiscal year 2025-2026 Pre-K through 12 budget. The chair said the bill was designed to align statutes with budget and scholarship funding procedures, especially around the Florida Education Finance Program and scholarship payments. The PCB would require Florida student ID numbers for scholarship students, standardize cross-checking against FTE survey data, set quarterly payment dates, and use one data source for both reporting and withholding scholarship-related FFP amounts. It also would reduce certain add-on weights by 50%, remove the budget stabilization program, and repeal the educational enrollment stabilization program. Several members raised concerns that the add-on weight reductions could hurt career and technical education, AICE, IB, and CAPE programs, while the sponsor argued the data showed too much spending in an “other” category and that the reductions were aimed at aligning funding with actual program costs. Public testimony was mixed: some supported tighter accountability and clearer payment rules, while others warned against undermining expensive career-readiness programs. The PCB passed 11-2. After the conforming bill, the chair presented the proposed fiscal year 2025-2026 Pre-K through 12 budget, totaling just under $21 billion, about $400 million below the current year. She said the budget reflects a need to slow spending growth and includes $20 million for New Worlds Scholarship Accounts, $7 million for security grants at Jewish day schools and preschools, $14 million for public school transportation stipends, an overall FEFP increase of about $747.7 million, $100 million for teacher salary increases, and increases in the base student allocation and funds per student. The committee did not vote on the budget recommendation at this meeting; it was distributed for review and will move to the Budget Committee next week.

Transcript Highlights:

• Since the majority of the budget units have similar functions, the right portion divides the budget by
• Since the majority of the budget units have similar functions, the right portion divides the budget by
• We would love to get it into our budget. Again, I know we've already had an increase in our budget.
• Just in a second entity, please let's focus on budget questions that are specific to the budget of the
• Is that anywhere in your budget?

Keywords: 965, house, all

Transcript Highlights:

• This is a budget math principle. This is a budget process.
• </c> governor's budget. Correct. Yes. Okay. governor's budget. Correct. Yes. Okay.
• </c> does this change any of the budget does this change any of the budget assumptions?
• budget cycle.
• </c> your current budget. Yes, it would. your current budget. Yes, it would.

Keywords: 928, house, all

Summary: The Division 3 work session focused largely on amendment 1176 to HB 2, which would have incorporated the substance of HB 548FN, a House-passed bill creating a direct-pay or membership-based model for health care facilities. Representative Mlan described the proposal as a way to increase competition in health care by extending the direct-care model used in primary care to facilities, arguing it could encourage innovation and that concerns about widespread harm to critical access hospitals were overstated. He pointed to Oklahoma’s long-standing Surgical Center model as evidence that the approach had not spread broadly or displaced hospitals there. Several members and witnesses raised concerns. Representative Stringham questioned whether the model would shift profitable services and patients away from existing hospitals, potentially worsening their finances and affecting Medicaid-related funding. David Ross, speaking for county nursing homes, opposed the language because it also removed moratoriums on nursing home, skilled nursing, inpatient rehabilitation, and self-pay beds, warning that it could increase pressure on Medicaid rates and undermine community-based care. Ben Bradley of the New Hampshire Hospital Association said the proposal appeared to create a separate regulatory framework for direct-pay facilities and raised concerns about patient safety, CMS participation rules, and a separate patient bill of rights. The chair concluded that, because HB 548 was already moving through the Senate, the HB 2 process was not the best vehicle for the policy and that the issue should be left to the Senate’s more deliberative committee process. Representative Ferski moved to not accept or remove amendment 1176 from the agenda, and the committee approved the motion by roll call, 9-0, withdrawing the item from HB 2.

Transcript Highlights:

• This is a very hard department to budget because they have their fingers in all throughout the budget
• versus what's in the 2025 budget.
• </c> fairly significant um back of the budget fairly significant um back of the budget cut<00:17:36.640
• </c> you look at the past years of budgeting you look at the past years of budgeting or<00:49:57.880>
• Again, this is part of the budget.

Keywords: 928, house, all

Summary: The Finance Committee met to review Division One of a very large budget package, with the chair explaining that the budget was being analyzed in three divisions over multiple days. Members first discussed procedure, including when amendments and line-item votes would be taken, and agreed to proceed with the division’s presentation before questions. Representative Maguire then outlined the division’s approach as a series of tradeoffs to close a large budget gap, emphasizing cuts, some revenue changes, and a focus on overall spending levels as well as individual reductions. The presentation covered a wide range of agencies and policy areas. Major proposed changes included cuts or eliminations to several boards and commissions viewed as costly or duplicative, such as the Housing Appeals Board, Board of Tax and Land Appeals, Human Rights Commission, Commission on Aging, Office of the Child Advocate, and the Personnel Appeals Board, with some functions consolidated into other boards. The division also proposed back-of-the-budget cuts to the Information Technology Department, Judicial Branch, Justice Department, Retirement System, Corrections, and Environmental Services, along with fee increases in several areas. Other notable items included ending marketing for Paid Family Leave, reducing job advertising and tourism promotion, defunding the Arts Council, moving liquor enforcement functions out of the Liquor Commission, and shifting some funds such as the College Savings Commission money to Division Two. Several members questioned specific cuts, especially the elimination of the Council on Aging, the reduction in regional planning commission grants, and the large cut to tourism advertising. Maguire defended the choices as necessary budget tradeoffs, arguing that some programs duplicated work done elsewhere, that regional planning grants were not among the most essential items, and that tourism promotion was a form of spending he viewed skeptically. He also explained that the public defender’s budget was partially restored after a credible claim of a governor’s budget error, and that the committee would continue refining corrections-related cuts because the House was only halfway through the budget process and further changes could still occur in the Senate and conference committee.

Transcript Highlights:

• </c> draft 1, relating to the state budget. draft 1, relating to the state budget.
• Especially our committee clerk Scott Fuji, budget chief Colleen Peros, budget analyst Kristen Hernandez
• Especially our committee clerk Scott Fuji, budget chief Colleen Peros, budget analyst Kristen Hernandez
• . budget. budget.
• Peros, Scott Fuji, budget chief Colleen Peros, budget<00:31:00.559><c> analyst</c><00:31:01.520><c>

Keywords: 912, senate, all

Transcript Highlights:

• Regarding our budget request, our governor's budget request for additional resources to support the operations
• Senate Budget Committee.
• This is a budget increase bill.
• This is a budget increase bill.
• The SIBTF budget proposal.

Summary: The subcommittee heard a series of budget and trailer bill presentations focused on labor and public employment programs. The first item covered EDD Next modernization, where EDD described progress on customer service improvements, fraud prevention, language access, and the Integrated Claims Management System. The LAO urged stronger legislative oversight as the project enters its most difficult phase, and members questioned the revised schedule, total cost, change orders, stress testing, SB 1090 implementation, and how race and ethnicity data will be protected. EDD said the overall project cost remains about $1.2 billion, that the work is being phased with disability insurance and paid family leave first, and that fraud has been greatly reduced since pandemic-era programs ended. Members also asked for follow-up information on SB 590 outreach and equity impacts. The committee then reviewed the California Workforce Development Board’s request to reduce staffing as one-time grant workloads wind down, along with trailer bill language to streamline reporting requirements. The board and Department of Finance said the staffing reductions reflect the end of surge funding and that the proposal would consolidate roughly 10 to 12 reports into one annual report, with additional reporting only if new funds are appropriated for certain programs. Senator Durazo questioned the policy direction of reducing workforce staffing, while the administration said the positions were tied to temporary grant programs and that current staffing is sufficient for ongoing duties. Members also asked about the board’s role in AI-related workforce planning and the rationale for using state funds for the High Road Construction Careers Program. A major portion of the hearing focused on the Subsequent Injury Benefits Trust Fund reforms and related staffing request at DIR. The administration and LAO described rapid growth in applications, backlog, and liabilities, saying the program’s eligibility has expanded beyond its original intent and that liabilities could reach about $30 billion by 2030 without reform. The trailer bill would tighten eligibility, apply the changes to open cases, and use the QME process and contemporaneous evidence to document preexisting disabilities. Members raised concerns about fairness to pending claimants, evaluator capacity, and the relationship to other SIBTF legislation, while the LAO said the proposal largely aligns with its prior recommendations. DIR also presented a request to eliminate vacant positions under a statewide vacancy sweep, which drew criticism from members who argued the cuts could weaken enforcement and backlog reduction efforts; the committee asked DIR to return with more detail on impacts and on its use of temporary-help authority. The final items addressed a request for additional Cal/OSHA investigative staff and a trailer bill to make permanent the revised Workers’ Compensation Appeals Board petition timeline. DIR said the BOI staffing would help investigate fatalities and serious injuries more quickly, while members emphasized the importance of family contact and timely investigations. For the WCAB item, the chair explained that the 2024 change to Labor Code section 5909, which starts the 60-day decision clock when a case is transmitted rather than when a petition is filed, has reduced pending cases and should be made permanent; the remaining backlog was reported at 460 cases, down from 637 before the change.

Transcript Highlights:

• First, Denise Potman, our budget chief; Ryan Bailey and Jason Paradeh, two budget analysts; and Sienna
• budget.
• outlay budget and the FEFP.
• The Bureau of Budget Management is responsible for managing the current fiscal year budget as well as
• operating budget and the non-operating budget.

Summary: The Pre-K through 12 Budget Subcommittee held its first interim meeting, took roll, and established a quorum. Members introduced themselves, many noting backgrounds in education, school boards, local government, or parenting, and Chair Jenna Persons-Mulicka outlined the committee’s goal of building the fiscal year 2025-26 Pre-K-12 budget. She also reviewed the fiscal year 2024-25 education budget, noting that the Pre-K-12 portion totals about $21 billion, with the Florida Education Finance Program (FEFP) as the largest driver, along with major funding for VPK, school readiness, and school recognition. She explained that federal COVID relief funds have ended and that recent school choice legislation has affected budget structure. Commissioner Manny Diaz and department leaders then gave overviews of their divisions. Diaz highlighted Florida’s education rankings, record graduation rate, progress monitoring, expanded school choice participation, charter school growth, and teacher salary investments, while emphasizing a focus on literacy, math, and early learning. Carrie Miller described the Division of Early Learning’s school readiness and VPK programs, their funding, eligibility, accountability systems, and the importance of kindergarten readiness. Paul Burns outlined the Division of Public Schools’ work on educator quality, literacy, standards, certification, family outreach, federal programs, and school improvement. Suzanne Pridgen reviewed finance and operations functions, including budget management, FEFP calculations, grants, procurement, transportation, and emergency management. Adam Emerson described parental choice programs, including scholarships, charter schools, schools of hope, virtual education, and home education. Darren Norris detailed the Office of Safe Schools’ responsibilities for risk assessments, compliance inspections, threat management, grants, and training created after the Marjory Stoneman Douglas tragedy. Members asked questions about several issues, including whether the Safe Schools office recommends changes to the school safety grant distribution formula, whether early learning eligibility should shift from federal poverty level to state median income, how scholarship payments are verified to avoid funding students who return to public school, and whether daily attendance systems could improve funding accuracy. Other questions addressed hurricane-related survey disruptions, VPK provider reimbursement rates and instructional hours, teacher salary increases, school start time costs, and how voucher schools handle IEP accommodations. Department officials generally said some issues remain under review, supported moving school readiness eligibility to SMI, noted that scholarship and enrollment data are cross-checked and adjusted when needed, and said progress monitoring now helps schools support mobile students. On school safety, officials said exemptions are allowed in statute for some items but not for classroom doors, and that district-specific conditions matter. No votes were taken and no formal actions were reported beyond receiving presentations and discussion.

Transcript Highlights:

• Cal Fire's budget traditionally grows over time.
• that may grow over time, Cal Fire's budget, being specific operations budgets that may grow over time
• Cal Fires budget traditionally grows over time.
• So I'm trying to find the reasoning why putting it in the budget proposal, especially a budget that talks
• For the budget reasons, it's supposed to be related to the budget.

Summary: The Assembly Budget Subcommittee hearing focused on the governor’s May Revision, especially the proposed extension of the cap-and-trade program to 2045 as “cap-and-invest,” the related greenhouse gas reduction fund (GGRF) spending framework, and several trailer bill proposals. Department of Finance staff outlined budget solutions including a $1.5 billion annual General Fund-to-GGRF shift for Cal Fire that would grow to $1.9 billion by 2029-30, continued support for high-speed rail, climate bond implementation, and various environmental and water-related statutory changes. The administration also described proposals affecting the Delta Conveyance Project, water quality planning, groundwater bulletin timing, Exide cleanup funding, and other agency-specific items, though the chair repeatedly asked staff to keep the presentation high-level and save details for the next hearing. Members from both parties raised strong concerns about the cap-and-invest proposal, arguing that it could reduce or displace funding for transit, affordable housing, active transportation, wildfire prevention, zero-emission vehicles, and other previously committed programs. Several members questioned whether the administration was effectively shifting essential ongoing services like Cal Fire onto a temporary carbon market fund, how the General Fund backstop would work if auction revenues fall short, and whether the proposal would leave enough money for continuous appropriations and future awards. Members also criticized the inclusion of cap-and-invest reauthorization in the budget process and asked for clearer information on the impact to high-speed rail, transit, and other GGRF priorities. The Delta Conveyance Project and related trailer bill language drew significant opposition from members and public commenters, who argued the proposal would fast-track the project, weaken CEQA-related review, and authorize revenue bond financing without sufficient legislative oversight. Public testimony also included support for maintaining or expanding funding for transit, affordable housing, AB 617 community air protection, offshore wind infrastructure, and ignition interlock programs, while environmental and community groups opposed cuts to wildfire prevention, housing, and school climate-related programs. No votes were taken; the hearing was informational, and the chair said the committee would continue the discussion and receive more detailed responses at the follow-up hearing on Tuesday.