Transcript Highlights:

• are funded to 110%.
• funded to 120%.
• And I wanted to fund that.
• One, we needed to partner with the CBCs and providers on developing the funding formula.
• It needed to establish some risk mitigation strategies within the funding formula that could be adopted

Summary: The Human Services Subcommittee met with a quorum present and took up a presentation from the Department of Children and Families on HB 7089, which revises how Florida’s community-based care (CBC) lead agencies for child welfare are funded. Representative McFarland described the bill’s background, arguing that the prior formula relied too heavily on outdated, static factors and produced inequities among CBCs. She emphasized that the new approach is intended to provide a more stable, transparent, and statute-based funding method that better supports prevention, case management, and family services while reducing year-to-year political uncertainty. DCF Chief of Staff Casey Penn explained that HB 7089 required an actuarially sound, reimbursement-based formula developed with CBC and provider input. The new model uses a cost-based structure with three tiers: Tier 1 for operational and administrative costs, Tier 2 for per-child/per-month service costs, and a possible Tier 3 incentive component for performance measures if the Legislature chooses to fund it. The model includes regional growth factors, inflation adjustments, a 2% risk corridor for Tier 2, a hold-harmless provision for agencies that would otherwise receive less than prior funding, and the ability for CBCs to retain some state general revenue savings. DCF said the model produced a total budget need of about $1.392 billion, roughly $28.6 million above the prior year after offsets, and that the department is also updating its child welfare case management system to improve data quality and future modeling. Members asked about whether prevention spending is captured, how Tier 3 incentives would work and how much they might cost, how the formula accounts for insurance, hurricanes, child acuity, and staffing costs, and whether CBC executives’ compensation is capped. DCF said prevention is included in the model but is not yet separately broken out due to data limitations, Tier 3 is optional and not yet costed, and the formula can incorporate additional growth factors if needed. On executive pay, DCF explained that compensation is limited by statute for CBC contracts, but multiple contracts and non-state funding sources can affect total compensation; staff later clarified that CBC CEOs with multiple contracts had been reviewed for compliance. The meeting ended after questions, and Representative Miller moved to adjourn; the subcommittee adjourned without any vote on the bill.

Transcript Highlights:

• And we need new funding for training, for ABOD screening, and to bolster our employment supports.
• But as we face this unprecedented need, we know that we will definitely need more funding in the future
• I also want to support the need to fund emergency food banks and CalFood funding.
• To truly serve our communities, we need funding.
• To truly serve our communities, we need funding.

Summary: The Assembly Budget Subcommittee on Human Services opened its first hearing of the year with a discussion centered on CalFresh, the Department of Social Services, and related anti-poverty and immigrant services programs. Chair Jackson framed the hearing as a response to the “historic and enormous challenges” created by H.R. 1, emphasizing that the committee’s goal was to minimize harm to vulnerable Californians. No votes were taken in the hearing. The first major topic was the impact of H.R. 1 on CalFresh eligibility and administration. CDSS estimated major federal funding reductions, with hundreds of thousands of Californians potentially losing benefits under new time limits and work requirements for able-bodied adults without dependents, and additional losses among certain non-citizen groups. County welfare directors, eligibility workers, SEIU, and other advocates argued that counties are underfunded and understaffed to implement the new rules, and urged release of the previously authorized $20 million General Fund, a county match waiver, and an additional ongoing workforce investment. LAO and the Department of Finance said they were reviewing the administration’s proposals and emphasized the need to use existing data, automation, and statutory direction to reduce administrative burden and improve implementation. A second panel addressed county administrative backfill and the broader fiscal effects of H.R. 1. CDSS explained that the law shifts more administrative costs to the state and counties beginning in federal fiscal year 2027 and could also create future state benefit costs tied to payment error rates. County and food bank representatives warned that many counties will struggle to absorb the higher match and that penalties tied to payment error rates could worsen budget pressure. Members pressed Finance and CDSS for clearer timelines, written responses, and more detailed workload assumptions, while Finance said it was still analyzing the federal guidance and county resource needs. The final major topic was the California Food Assistance Program (CFAP) and possible state responses for people losing federal CalFresh eligibility. CDSS said CFAP remains limited by statute and by the federal structure it currently uses, but that the planned expansion to Californians age 55 and older regardless of immigration status remains on track for October 1, 2027, subject to funding. Immigrant advocates urged the state to fold newly excluded humanitarian immigrants into CFAP and to invest in outreach and administration, while Western Center on Law and Poverty proposed a broader state-funded anti-hunger response for people cut off by H.R. 1. LAO noted that the CFAP expansion is difficult to estimate and that further policy and technical work would be needed to assess costs and implementation options.

Transcript Highlights:

• Anything below the line, we do not have funding this biennium to fund, and they would need to be deferred
• needs for water projects for the next 14 years. ...this study and address anticipated funding needs
• So it was interesting to me that we're talking about 14 years, but then we have funding needs beyond
• So then if you look at the total estimated funds needed, the completion is about $762 million.
• So then if you look at the total estimated funds needed, the completion is about $762 million.

Summary: The Water Topics Overview Committee met with a quorum and received updates from the Department of Water Resources and the State Water Commission, followed by presentations from Deloitte on two legislative studies required by House Bill 1020. Director Reese Haas reviewed major project and budget updates, including the Northwest Area Water Supply and Southwest Pipeline projects, Resources Trust Fund balances, carryover spending, project prioritization, bid conditions, regional water system coverage, and department process improvements. Members also discussed how the commission prioritizes projects, maintenance expectations, and the impact of limited municipal water supply funding. No formal committee action was taken during the DWR update; the commission’s municipal funding decisions were described as pending its April 8 meeting. Deloitte then presented the cost-share policy study, which found that under current policy and forecasted revenues, North Dakota faces an estimated $1.3 billion shortfall over 14 years, with a near-term gap of about $1.8 billion through 2031. The firm outlined seven recommended options, including tighter definitions and a 25% cost share for eligible replacement projects, caps and financing strategies for the Mouse River and Red River Valley projects, aligning cost share with commission priority guidance, delaying lower-priority projects, using available lines of credit, and adjusting reimbursement timing for revolving loan funds. Committee members questioned inflation assumptions, affordability, user fees, and the use of legacy fund earnings for bonding, but no decisions were made. In the governance and finance study, Deloitte said final recommendations are still being refined, with a final report due May 29. The study examined the Southwest Pipeline, NAWS, and Red River Valley systems using governance and finance criteria such as decision authority, transparency, affordability, risk, and access to funding. For Southwest, Deloitte outlined options ranging from improved state-authority coordination to transferring ownership to the Southwest Water Authority; for NAWS, options focused on strengthening the authority’s role and potentially transitioning operations and maintenance; and for Red River, options ranged from enhanced facilitation to formal state oversight or state ownership. Members asked follow-up questions about ownership transfer, capital repayment streams, and why NAWS was not considered for transfer, and Deloitte said NAWS’s limited organizational maturity made that option less viable in the near term.

Transcript Highlights:

• matching funds.
• I need to extrapolate a little bit upon that and let the committee know that for us to get the funds
• If that doesn't happen, we're going to be limited to how much funding goes out the door because we need
• Grant funds.
• So we need to obligate these funds by October of this year.

Bills: HB1623

Committee: Joint Appropriations

Summary: The committee heard House Bill 1623, the appropriations bill tied to North Dakota’s Rural Health Transformation Program, which is funded through a new federal rural health care grant. Senator Bekkedahl explained the bill’s background, the interim committee process that developed it, and the federal conditions attached to the award, including spending deadlines, administrative cost limits, and restrictions on uses such as new construction, supplanting existing funding, and certain other costs. Legislative staff then walked through the seven sections of the bill, including appropriation authority, transfer authority, contingent appropriations for pass-through grants, procurement and public improvement exemptions, recipient reporting, legislative reporting, and immediate effective date. Commissioner Traynor and HHS staff described how the department plans to implement the program, emphasizing that the funding is intended to improve rural access, workforce recruitment and retention, technology and data connectivity, and community health initiatives. They said the department will rely on local applications, technical assistance, templates, listening sessions, and partnerships with providers, schools, public health units, tribal entities, and other community groups. Members asked about reimbursement timing, upfront costs, administrative expenses, sustainability after the five-year grant period, and whether CTE centers, public health units, gyms, grocery stores, and other community partners could participate; the department said yes, within program rules and with a focus on measurable outcomes and sustainability. Several supporters testified in favor. Mental Health America of North Dakota and the Mental Health Advocacy Network supported the bill and urged investment in community-based mental health, crisis response, children’s services, peer support, and mobile crisis teams. HIA Health described the grant as a chance to expand home-based and hospice care, noting that rural providers already have workable models but need funding to scale them. A cybersecurity representative also supported the bill, warning that the large amount of health data and AI-related tools will require strong data protection and professional support. The hearing was closed with no opposition testimony, and the committee announced it would return later in the day for further work on the bill and other measures.

Transcript Highlights:

• will actually be needed for it because of the way that funding mechanism is structured.
• So if the funding is needed, there is that commitment of potentially up to $500 million, but the funding
• Funding for CC has come from the general fund or has come from SIF, but there was no new funding awarded
• And then the city of Northwood received a small amount of funding because Valley City ended up not needing
• This funding used both SIF and ARPA funds, and I'll give you some details on that funding a little bit

Summary: The committee received a compliance and budget update on Industrial Commission agencies and programs, including the Industrial Commission administrative office, the Oil and Gas Research Program, the Clean Sustainable Energy Authority, the State Energy Research Center, the Research Technology Park grant program, and related funds. Staff reviewed spending and balances for items such as electric grid resiliency grants, lignite research, enhanced oil recovery, the salt cavern business case study, and the new NDSU research and technology park grant. Members also discussed timing, carryover balances, matching requirements, and how some programs are structured to reimburse projects over several years rather than spend funds immediately. Karen Tyler of the Industrial Commission described the agency’s administrative budget, the grant management system nearing completion, and the transition to standalone audits and staffing after separating from other agencies. She also outlined the status of active grant rounds across lignite, oil and gas, renewable energy, outdoor heritage, and clean sustainable energy programs. Members asked about the length of active grants, demand for clean energy funding, and the possibility of future grant rounds. Tyler and members also discussed the salt cavern study, the need to better define its commercial value, and the research technology park grant’s cash-match requirement. Ron Ness then testified on enhanced oil recovery and broader oil and gas market conditions. He said North Dakota production remained steady, but future growth depends on infrastructure, longer laterals, and better use of natural gas and carbon dioxide for EOR. He described the state’s EOR grant round, the use of federal DOE funding to replace part of a state-funded project, and the expectation of additional grant rounds. Members asked about CO2 supply, storage, and the economics of using legacy fields and pipelines to extend oil production and support agriculture and industrial uses. The committee also heard from Bank of North Dakota President Don Morgan, who reviewed the bank’s mission, governance, lending verticals, disaster programs, and new initiatives. He said the bank is seeing deposit growth flatten and is responding to fintech competition by focusing on liquidity, risk management, and a new payment infrastructure initiative called Rough Rider Coin, which he emphasized is not crypto and not a public coin, but a banking payment rail for North Dakota institutions. Members asked about student loan rates, disaster lending, and how the bank’s lines of credit and balance sheet capacity are affected by deposit trends. Morgan said the bank remains profitable and continues to support agriculture, commerce, and industry through participation loans, student lending, and state-directed programs.

Transcript Highlights:

• They either need it from, if they get an ASIC award, they need additional MHP funds, or they get resources
• To do all of this important work, HCD's funding mechanisms need to be updated.
• We need to be able to rely on these kinds of funds to make it possible for us to even consider whether
• I'd like to echo my colleagues' comments about the need for funding for housing programs, including the
• We appreciate the Senate's budget plan. ...colleagues' comments about the need for funding for housing

Transcript Highlights:

• If we need to refund some funds for a federal grant to the grantors, those types of things.
• So in order for the other funds to be used here, we would need a piece of legislation to pass.
• So in order for the other funds to be used here, we would need a piece of legislation to pass.
• And so there is funding available. There wasn't any need for the GR.
• And that's why And so there is funding available. There wasn't any need for the GR.

Summary: The Budget Committee heard the Department of Mental Health’s FY 2027 budget presentation, with Director Valerie Hoon outlining a $4.4 billion department budget, including $1.7 billion in general revenue, and describing the department’s roles in substance use, behavioral health, and developmental disabilities services. Early questioning focused on marijuana-related mental health impacts, but the main discussion centered on the department’s new decision items, funding sources, and expected wait lists. The director explained several increases tied to Medicaid growth, mental health youth services, outpatient competency restoration, crisis residential services, developmental disability waivers, and provider tax adjustments, along with offsets such as reduced wraparound funding at the Kansas City Assessment and Triage Center and cuts to some youth and self-directed DD services. A major portion of the hearing focused on competency restoration for people found unfit to stand trial and currently held in county jails. Members pressed the department on the cost, effectiveness, and legal implications of keeping people in jail while awaiting services, noting a reported wait list of roughly 524 to 538 individuals and average holds of about 14 months. The department said it currently has eight outpatient competency restoration beds in the community, is seeking funding for 50 additional outpatient slots, and also operates jail-based restoration for about 40 people at a time. Members repeatedly asked for breakdowns of violent versus nonviolent cases, success rates, cost per person, and the split between state and federal funding, while the department explained that Medicaid can cover only the treatment portion, not residential housing or other non-billable costs. The committee also discussed broader capacity constraints in state hospitals and developmental disability services. Hoon said Fulton, Center for Behavioral Medicine, and FTC North are full, with 183 vacancies across the department, and that the department is working on a new Kansas City hospital that would add 150 beds, though completion is now expected closer to 2029 or 2030. In the developmental disabilities section, the department warned that the governor’s recommendation would create wait lists for in-home waiver services and crisis residential services, and members questioned proposed reductions to self-directed services rates and other provider payments. No votes were taken, and the committee recessed before finishing the presentation.

Transcript Highlights:

• And so I got Mercy Care and Banner Health to fund this entire program because they saw a need from an
• And even if this wouldn't fund all of their salary increase needs, we should not be moving titles or
• And even if this wouldn't fund all of their salary increased needs, we should not be moving titles or
• fund.
• funds, as long as it stays non-general funds.

Committee: House House Appropriations Committee of Reference

Summary: The House Appropriations Committee met on March 25 for what was described as its last regular meeting, with a possible special meeting the following week. The committee first took up Senate Bill 1112, adopting a Livingston strike-everything amendment that appropriates $1 million from the special services fund in fiscal year 2027 to the Department of Corrections for holistic, studio-based rehabilitative programming and requires a report on spending, self-harm, discipline, and recidivism by June 30, 2028. Supporters from Art of Our Soul testified that the trauma-informed art and music therapy program has reduced disciplinary violations, self-harm, and mental health watches, and members described it as a rehabilitation effort with documented benefits. The bill, as amended, received a due pass recommendation by a 16-2 vote. The committee then considered Senate Bill 1776, which would expand AHCCCS coverage for traditional healing services to include urban Indian organizations. AHCCCS testified neutrally but said the change would require a waiver amendment, would not qualify for 100% federal match, and would carry an estimated $1.3 million general fund impact. The sponsor argued the bill would align Arizona with federal policy and correct an omission of urban Indian organizations from the existing waiver. After discussion about costs and whether the bill should proceed with a committee of the whole amendment, the committee gave SB 1776 a do pass recommendation by a 9-6-2-1 vote, with several members expressing concern about AHCCCS growth and the funding source. Senate Bill 1537, which would rename the Peace Officer Training Equipment Fund as the Public Safety De-escalation and Life Safety Fund and repeal its advisory commission, failed. Testimony explained that the commission has not met in years and that the bill was largely a cleanup measure, but the Arizona Police Association opposed the change and some members wanted the commission reformed rather than repealed. The committee voted it down 6-9, with members split over whether the fund should remain tied to its current structure. The committee next adopted an amendment to Senate Bill 1584 that shifted a $1 million appropriation for Department of Corrections recruitment and training from the general fund to the Peace Officer Training Equipment Fund. Supporters said DOC remains understaffed and that the training/recruitment program has worked elsewhere; some members questioned whether the fund could legally be used for that purpose, but the amendment passed and the bill received a do pass recommendation by a 10-5-2-2 vote. Finally, Senate Bill 1673, which funds the law enforcement crime victim notification system, was amended to reduce the appropriation from $5 million general fund to about $2.595 million from the victim compensation fund. Testimony from the Arizona Sheriffs Association, victim notification vendors, and Phoenix officials emphasized the program’s importance, while others argued the amendment would raid victim compensation resources. The amendment and the bill as amended both passed, and the committee adjourned after noting the next calendar had not yet been posted.

Transcript Highlights:

• You need to stop tapping into the rainy day fund and we need to have an actual serious talk about our
• You need to stop tapping into the rainy day fund and we need to have an actual serious talk about our
• You need to stop tapping into the rainy day fund and we need to have an actual serious talk about our
• You need to stop tapping into the rainy day fund and we need to have an actual serious talk about our
• You need to stop tapping into the rainy day fund and we need to have an actual serious talk about our

Transcript Highlights:

• So this is not just the fund that we can just go and spend based off of, you know, the need.
• And so if you have a student with a higher need, they may generate more dollars for their funding.
• A $296,106 decrease was due to the removal of funds carried forward into 26, no longer needed for 27.
• They just right-size every year from LDOE, and that funding was carried forward and it's no longer needed
• And that net decrease is the removal of funds carried forward no longer needed for FY27. $102,415 is

Committee: House Appropriations

Summary: The committee met on March 17 to review the FY27 budgets for the Department of Education and several special schools and commissions. Fiscal staff outlined the Department of Education’s roughly $6.4 billion budget, noting that most funding goes to the Minimum Foundation Program and subgrantee assistance. Major changes discussed included the removal of one-time teacher pay stipends, increases for the LA GATOR scholarship program, and projected adjustments in early childhood funding. Members also reviewed the constitutional amendment proposal tied to using about $2 billion to pay down teacher retirement obligations and provide future teacher pay raises. Dr. Cade Brumley testified that Louisiana’s education outcomes have improved and answered questions on math performance, charter school funding, the LA GATOR scholarship, and the special education Choice program. Members pressed the department on the sustainability and balance of funding between LA GATOR and Choice, the number of applicants and current recipients, and outreach efforts. Brumley said charter schools are funded through the MFP like other public schools, that LA GATOR currently serves about 5,500 students with applications recently reaching about 17,000, and that the Choice program serves about 500 students with a waiting list of about 700 applicants. He also said the department would implement whatever funding levels the legislature approves. The committee then heard the special schools and commissions budget, including the Special School District, Louisiana School for Math, Science, and the Arts, Thrive Academy, École Pointe-au-Chien, Louisiana Public Broadcasting, and BESE. Testimony focused on facility needs, enrollment, and program outcomes. LSU? No—LSM leaders described urgent roof and ceiling repairs estimated at about $800,000, while Thrive Academy highlighted student achievement, community service requirements, and economic impact. LPB said it is facing a federal funding loss of about $2.5 million and is responding with higher Passport fees, underwriting, and private fundraising. BESE’s small staff and administrative role were also explained, with members asking about board operations and the use of statutory dedication funds.

Transcript Highlights:

• Chairman, just this morning we're listening to all the requests of the needed funding, and then here
• Is this public benefit fund a fund that can be accessed by ...benefit fund, a fund that can be accessed
• This money could be used for that purpose, and we just need to let the secretary know she has the funding
• It's entirely general fund funded.
• It's entirely general fund funded.

Summary: The Department of Public Safety presented its FY27 budget request, emphasizing three priorities: improving community engagement through a redesigned website and outreach, expanding statewide data and intelligence integration through intelligence-led policing, and improving emergency response and officer safety through fleet replacement, a driving track, and a requested helicopter. DPS said much of its increase is driven by rising health care premiums, and it is also seeking special appropriations for fleet replacement, the website rebuild, and an Honor Guard program created after the 2022 helicopter crash that killed four public servants. Members asked about vacancies, fleet costs, cybersecurity compliance, the real-time crime center, EV fleet participation, and the Metro DPS facility. DPS said its vacancy rate is about 9%, its fleet replacement needs are driven by mileage and condition, it is compliant with federal CJIS standards even though DoIT has raised concerns, the real-time crime center would be built as a regional model to complement Albuquerque’s center, and the Metro facility is moving toward a January groundbreaking. Committee members also discussed several DPS-related capital and IT requests, including the intelligence-led policing data lake, recurring maintenance for critical systems, and a $5.6 million reauthorization for state crime lab DNA backlog work and a $900,000 reauthorization for fingerprinting equipment. DPS explained that the website request is high because the current site must be rebuilt from scratch to support missing-person alerts, memorial updates, ADA compliance, and better communication with law enforcement and the public. Members also raised concerns about speed enforcement, construction-zone cameras, and whether EVs are practical for patrol use; DPS said it is not pursuing speed cameras and is only partially participating in the state EV initiative because patrol needs make full electrification difficult. The committee then received an LFC quarterly update on non-recurring appropriations from the 2025 General Appropriation Act. LFC reported that of the $1.4 billion appropriated in Section 5, $164 million had been expended and $333 million encumbered, leaving $897.4 million unspent, which is a slower pace than the prior year. Staff highlighted a number of reauthorization requests and slow-moving projects across agencies, including AOC cybersecurity funding, DFA housing and public safety grants, DoIT cybersecurity and higher education funds, EDD economic development and energy programs, OSI mitigation and malpractice funds, EMNRD energy and geothermal grants, Health Care Authority behavioral health-related appropriations, DPS crime lab and fingerprinting funds, PED career technical education and special education initiatives, and higher education loan repayment and technology funds. Members questioned why some large appropriations had little or no spending, discussed the need to monitor reauthorizations more closely, and asked for follow-up on several specific line items and project balances.

Transcript Highlights:

• Well, the people that are in these different water departments, these managers need funding to deal with
• But, you know, to me, we need to get back to a General Fund commitment to our men and women at Cal Fire
• That’s where we need to be. We need to scale up.
• of the wildlife coexistence and also mentioning that we also need funding for wolf management.
• of the wildlife coexistence and also mentioning that we also need funding for wolf management.

Summary: The subcommittee began by announcing a change in the agenda order, moving item 6 ahead of item 1 and then item 7, and noting there would be no votes taken on any items that day. Item 6 covered a proposed operational efficiencies control section for the Natural Resources Agency that would let multiple departments jointly fund landscape-scale or multi-jurisdictional projects and allow Finance to transfer climate bond funds to a lead state entity. The LAO said the proposal was reasonable but suggested the Legislature consider requiring summary notification on how it is used; Finance said it would consider that request. Item 7 focused on the 2026-27 biodiversity and nature-based solutions spending plan. Finance and the Wildlife Conservation Board described the climate bond funding for habitat restoration, wildlife crossings, public access, tribal nature-based solutions, and related work, including $111 million proposed for WCB and $30 million for Salton Sea habitat and public access projects. The LAO supported the overall approach but flagged the San Andreas Corridor Program as an area where the Legislature may want to specify geographic priorities. Members discussed the pace of Salton Sea work and whether the proposed projects would count toward disadvantaged community goals. Item 8 addressed Cal Fire’s aviation contract and staffing needs for wildfire response. Cal Fire said year-round fire activity, a larger and more complex aircraft fleet, and labor market pressures justified the proposed contract increase, including more mechanics, pilots, and maintenance support. The LAO recommended approval, saying the proposal addressed health and safety concerns. Members asked about contractor staffing, competition in the bidding process, and future technology for early fire detection and suppression. The committee then took up item 1 on golden mussel containment. Fish and Wildlife described the invasive species’ spread in the Delta, the task force and response framework, and a request for eight new positions funded by Prop. 4 to support control plans, outreach, monitoring, research, and coordination with partners and law enforcement. Members pressed the department on whether the state should fund more direct decontamination infrastructure and grants to local water managers, and on the realistic goal of containing the mussel. The chair and several members emphasized the urgency of the threat and requested an itemized breakdown of the $20 million request. The hearing then moved to a broader LAO overview of wildfire prevention and response funding, where the LAO summarized the state’s funding mix and warned that ongoing wildfire resilience funding will likely decline as one-time bond and GGRF funds are exhausted, prompting discussion of long-term funding options and the balance between prevention, suppression, and community hardening.

Transcript Highlights:

• from proposals funded with the general fund.
• by the general fund, loaning to the general fund.
• We have a lot of state funding for a lot of different things, and, of course, we have a lot of needs.
• That was a tool that came out of that one-time funding that is still existent today. ...should they need
• Those funds have depleted, as many funds across the state have depleted.

Transcript Highlights:

• Why do these funds have monies left over at the end of the two-year period if these funds are needed?
• Why do these funds have money left over if the funds are needed?
• Why aren't they being spent if the money is needed in these funds, like the Crime Victims Fund?
• If there's a big purchase that we need to utilize those funds for, and maybe you need to collect those
• And so both of those funds have been swept to the point where both funds needed general revenue pickups

Committee: House Corrections and Public Institutions

Transcript Highlights:

• It's all other state funds, so non-general fund. LFC and HACC RECS.
• I can't speak for the AG, but I think we need to have some funding for this.
• This is a core function of state government, part of our justice system, and I think we need to fund
• It's really general fund because it's being diverted from the general fund into this fund.
• It's really general fund because it's being diverted from the general fund into this fund.

Committee: House House Appropriations & Finance

Transcript Highlights:

• They either need it from, if they get an ASIC award, they need additional MHP funds, or they get resources
• To do all of this important work, HCD's funding mechanisms need to be updated.
• We need to be able to rely on these kinds of funds to make it possible for us to even consider whether
• I'd like to echo my colleagues' comments about the need for funding for housing programs, including the
• low-income housing tax Thank you. colleagues comments about the need for funding for housing programs

Summary: The subcommittee heard an extensive presentation on the administration’s housing reorganization proposal, which would centralize multifamily affordable housing finance under the new Housing Development and Finance Committee (HDFC) and align it with the Governor’s trailer bill language. Administration officials said the plan is intended to create a one-stop application and award process, reduce duplicative timelines and costs, and pair state subsidy with private activity bonds and federal tax credits more efficiently. They also described proposed changes to the Affordable Housing and Sustainable Communities program, including shifting a larger share of funding toward housing-related awards while preserving a portion for sustainable communities investments. The Legislative Analyst’s Office generally supported the streamlining concept but recommended changes to the proposed bond set-aside timing and urged flexibility for integrated applications and future reporting on demand. Senators, especially Senator Cabaldon, raised concerns that the proposal could weaken the original climate-and-transportation purpose of the sustainable communities program and that the reorganization would be undercut by the lack of new housing production funding in the budget. The item was held open without a vote. The committee then received a report from the California Debt Limit Allocation Committee and the California Tax Credit Allocation Committee on federal and state housing tax credits. Staff explained that the federal H.R. 1 change lowering the bond-financing threshold from 50% to 25% greatly expanded the number of projects able to use the 4% federal tax credit, allowing California to fund many more projects and units. They also described the state low-income housing tax credit as an important gap-filling tool for projects that still need additional subsidy, and noted existing set-asides for rural, homeless, at-risk, and extremely low-income projects. Members discussed rehabilitation as well as new construction, and the item was informational only. Finally, the Civil Rights Department reported on the effects of federal civil rights policy changes and on three programs facing expiration: California vs. Hate, the Community Conflict Resolution Unit, and Investigations and Conciliation Enhancement. Director Kevin Kish said federal cuts and policy shifts have reduced support for fair housing and other civil rights functions, while CRD’s caseload has grown from about 8,700 open matters a year ago to more than 12,000, with a six-month wait for interviews despite overtime triage efforts. Senators expressed strong support for continuing the programs and concern about the broader federal rollback of civil rights enforcement. The department said it is using overtime, intake triage, and outreach partnerships to manage the workload and direct Californians to appropriate state, local, and nonprofit resources.

Transcript Highlights:

• In terms of this strategy that is due to the Legislature, we would need funding to bring on consultants
• In terms of this strategy that is due to the Legislature, we would need funding to bring on consultants
• Without a doubt, we need.
• So why do we need to have ongoing staffing and funding? Thank you.
• any General Fund obligations.

Transcript Highlights:

• I think we have proposed the funding that we'll need, and, Representative, thank you for your leadership
• Or will that, you know, transfer to you and you'll need a lot more funding for that if it's found out
• In FY26, we recognized that there was a need for us to move this away from grant funding because the
• It just depends what core the funding needs to go to. Okay. I think I left off on page 234.
• So the training, no impact to services, we just don't need to expend the funds for it.

Summary: Attorney General Catherine Hanaway presented the Office of the Attorney General’s FY 2027 budget request and outlined her office’s priorities: reducing violent crime, targeting illegal and unregulated activities she described as a “vice squad” focus, protecting Missourians from fraud, and improving the office’s legal work. She highlighted major cases and enforcement efforts, including litigation over insulin pricing, Dollar General pricing practices, a criminal prosecution in Hermann, the Jackson County assessment dispute, and a new lawsuit involving Misha’s board policy. Committee members asked about cybercrime enforcement, cooperation with federal authorities, VLTs, ballot and referendum litigation, and the office’s approach to diversity-related legal issues. Hanaway said cybercrime and no-call enforcement rely heavily on multi-state and federal cooperation, and she emphasized that many cases begin with citizen reports. Members also questioned the cost and scope of ongoing election-related litigation, including redistricting and referendum cases, and Hanaway said her office is defending the laws and ballot processes as required. She estimated roughly $600,000 in staff time over about six months for the referendum/redistricting work combined. Several members raised concerns about the Misha lawsuit and whether similar statutory provisions elsewhere in state government could raise the same legal issues; Hanaway responded that the case involved a board rule, not a statute, and turned on whether the requirement functioned as a quota. The committee also discussed child sexual exploitation, human trafficking, Medicaid fraud, and the use of outside counsel and pro hac vice fees. Hanaway said the office is using non-GR funds where possible and is not requesting pay increases this year. The Missouri Office of Prosecution Services then presented its budget. Officials explained that MOPS trains and supports prosecutors statewide, including on DWIs, child sex cases, and new prosecutor training, and that its budget request matches the governor’s recommendation. Members asked about support for local prosecutors, the nine counties without elected prosecutors, and the new conviction integrity unit; staff said the unit’s positions were shifted between line items and that the office can help answer prosecutorial questions through its general counsel. The committee then moved to the Department of Public Safety budget. DPS reviewed funding for crime victims notification, law enforcement recruitment and retention, drug task forces, academy scholarships, Blue Star grants, local crime prevention, school safety, World Cup security, 988 trainings, wastewater testing in schools, and other programs. Members asked about the $59 million federal FIFA World Cup grant, school safety app funding, and wastewater testing participation; DPS said the World Cup funds require no state match, the app funding is being phased out, and schools opted into the testing program. The committee recessed before finishing the DPS book, with plans to return later.

Transcript Highlights:

• We need to provide mental health services to our students, and we have no funding to do so.
• I'll need to get back to you with certainty, but I believe it's around $260 million, and that funding
• CEQA harms low-income communities of color that need that funding the most and that need CEQA to have
• We want to thank the Legislature for recognizing the need to fund Proposition 36.
• We want to thank the Legislature for recognizing the need to fund Proposition 36.

Summary: The Assembly Budget Committee held an informational hearing on the final three-party budget agreement and related trailer bills, with the Department of Finance outlining the major budget bill and omnibus measures. Finance described a package built around balancing the state budget amid economic uncertainty, preserving core health and safety-net programs, and making significant ongoing reductions in some state programs. The budget bill included major items such as shifting $1 billion from the General Fund to the Greenhouse Gas Reduction Fund for Cal Fire, funding universal transitional kindergarten, deferring some UC and CSU funding, supporting foster care and homelessness programs, providing Proposition 36 implementation funding, and achieving Medi-Cal savings through changes to benefits and eligibility. The committee also heard that votes on the budget bills were expected later in the week and the following Monday. Finance then walked through the trailer bills, including health, human services, early learning, education, resources, energy, transportation, labor, housing, tax, public safety, courts, general government, cannabis, and energy-related measures. Notable provisions included a Medi-Cal enrollment freeze for certain adults, new premiums and benefit changes for some immigrants, child care COLA changes, education funding for literacy, teacher support, universal meals, and community college student support, as well as resource and climate measures affecting Cal Fire staffing and energy permitting. The housing trailer bill drew the most discussion, with provisions on CEQA streamlining, a vehicle miles traveled mitigation banking program, a renters’ credit trigger, and a six-year moratorium on new residential building standards. Members also discussed a film tax credit expansion, cannabis enforcement funding, a tribal police pilot program, and changes to tax policy, including military retirement income exclusions and wildfire settlement payment exclusions. Committee members largely praised the staff and the budget process, but several raised concerns and asked detailed questions, especially about the housing trailer bill’s new wage standards, tribal consultation provisions, and possible effects on prevailing wage protections. Finance explained that the housing language was intended to set wage floors for market-rate projects receiving CEQA streamlining, with different county-based tiers and a notwithstanding clause preserving existing prevailing wage laws. Members also questioned the size and timing of funding for the Children and Youth Behavioral Health Initiative, Clean Cars for All, Proposition 36, and the film tax credit expansion. Other members highlighted support for public safety, veterans’ tax relief, child care providers, housing production, and higher education, while some expressed concern that the budget’s policy changes were being negotiated too quickly or without enough stakeholder input.

Transcript Highlights:

• to future years when the projects were ready. and actually needed the money, but those funds for most
• This funding is intended to help subsidize water systems addressing critical water infrastructure needs
• So there will be no additional funding needed to support permanent positions should those be necessary
• I'd like to echo the comments on Prop 4 funds being additive to, or the need for them to be additive
• Florida backfill that it's an already over prescribed program and needs that additional funding.