Transcript Highlights:

• So at the federal level, your Social Security income, retirement income, is taxed in your federal income
• HB 2040: Information Government, Federalism, Military Affairs, and Elections.
• HB 2219: Ballot Receptacle, Federalism, Military Affairs, and Elections.
• HB 2226: Processing Anti-Key, Federalism, Military Affairs, and Elections.
• HB 2245, veterans, federalism, military affairs, and elections.

Summary: The House convened, approved the journal, recognized the Doctor of the Day, and welcomed several guest groups, including JAG students and students from Heila Ben High School. The chamber then moved into Committee of the Whole to consider HB 2153, the annual tax conformity bill, which was described by supporters as aligning Arizona tax law with recent federal changes and providing relief through no tax on tips and overtime, a larger child tax credit, a new child care expense deduction, and a deduction for certain retirement income. Opponents argued the measure would primarily benefit wealthy individuals and corporations, reduce state revenue, and leave some seniors out because the retirement-income deduction is tied to retirement accounts. Members also discussed the Department of Revenue’s already-issued tax forms and the need for certainty for filers. After extended debate, the Committee of the Whole gave HB 2153 a do pass recommendation by a vote of 31-26, and the House adopted the report and sent the bill to engrossing. The House then took up the Senate mirror bill, SB 1106, substituted for HB 2153, and after floor explanations of vote, passed it 31-27 with 2 not voting. Supporters said the bill would help working families, seniors, and small businesses and prevent filing confusion, while opponents repeated concerns about cost, fairness, and impacts on public services. The bill was transmitted to the Senate. Following the tax vote, members made several announcements, including birthday wishes and a tribute to Dr. Martin Luther King Jr., and committee chairs announced upcoming cancellations. The House then recessed and reconvened for first reading and referral of a long list of new bills covering topics such as elections, health care, education, transportation, public safety, taxation, housing, and appropriations. The session ended with a motion to adjourn until the next scheduled meeting.

Transcript Highlights:

• tied with specific federal programs.
• There was no reappropriation for federal funds.
• The federal funds that those funds serve as a match for exist in the OEMR federal fund ongoing appropriation
• That's where the federal funds exist.
• The amounts that are being matched are in federal funds.

Summary: The joint Senate Finance and House Appropriations committee heard a series of budget presentations and acted on several FY 2026 and FY 2027 items. Noah Peterson reviewed the General Fund Daily Update, noting large FY 2026 supplemental actions for Medicaid and Corrections that reduced the estimated ending balance, and a FY 2027 outlook that still had room for remaining work. He also flagged several policy bills with fiscal impacts, including county jail per diem changes, a state police bill, and a health and welfare board/position bill. Janet Jessup then walked the committee through Department of Environmental Quality and Soil and Water Conservation actions. The committee approved adding four FTP for DEQ’s solid waste regulatory program and adopted related language transferring $400,000 from the hazardous waste emergency fund to support the new solid waste regulatory fund. It also approved a CREP supplemental for the Soil and Water Conservation Commission and then voted to move the commission from the Department of Agriculture to the Department of Water Resources, including a corresponding reduction in Agriculture and an addition in Water Resources. The committee adopted language to align the new budget structure and approved a one-time $390,000 restoration in the Department of Water Resources to avoid reducing stream-gauging and water-monitoring services. The committee next considered the consolidation of the Office of Species Conservation and the Office of Energy and Mineral Resources into a new Office of Species, Mineral, and Energy Coordination. It approved reductions to the two existing offices and then debated competing motions for the new office. The substitute motion to cut four FTP and reduce spending more deeply failed, while the original motion to reduce two FTP and preserve more staffing for nuclear and mining coordination passed. Members and the agency administrator argued that Idaho needs a stronger “one-stop shop” for nuclear and mining projects, while others emphasized following the policy bill moving through the legislature and capturing consolidation savings. The committee also approved a DOPL budget item for replacement vehicles and IT hardware. Most motions passed with do-pass recommendations, and the committee announced it would meet again the next day; Senate Finance was noted as on hold, while House Appropriations would continue after adjournment.

Transcript Highlights:

• Three federal court cases right now that could threaten access to this drug.
• , there really should be a federal written contract.
• federal constitution of the United States and Washington might conflict?
• ...might conflict, and usually the one at the federal level would control.
• Is this issue been dealt with at all on the federal level as far as the supremacy clause where the federal

Summary: The Senate Human Services Committee heard testimony on Senate Bill 5917, which would change how the Department of Corrections and Department of Health distribute abortion medications from state stockpiles. Staff and the bill sponsor said the measure would remove pricing restrictions, allow the medications to be donated or sold more flexibly to health care providers, and help avoid expiration of existing supplies. Supporters, including the Washington State Women’s Commission, the governor’s health policy advisor, DOH, physicians, and Pro-Choice Washington, said the bill would improve access to medication abortion and miscarriage care, especially for people facing barriers. Opponents argued it would expand state involvement in abortion, shift costs to taxpayers, and raise safety concerns. No vote was taken on the bill in the hearing portion shown. The committee also heard Senate Bill 6080, which would require written contracts before local jails accept people in federal custody and would prohibit some out-of-state transfers absent a valid judicial warrant. Senator Cleveland said the bill was prompted by a situation in Clark County and was intended to provide clarity, reimbursement, and accountability for local governments. Supporters from the Latino Community Fund, the Association of Counties, and the City of Vancouver said it would protect taxpayers and local discretion. The sheriffs’ association supported some of the bill’s goals but raised concerns about unintended consequences for routine federal arrests and wanted more clarification. The hearing on SB 6080 was then closed. The committee then heard Senate Bill 6085, which would revise the Institutional Welfare Account, formerly the incarcerated individual betterment fund, to require more input from incarcerated people and their families on how the funds are spent and to change some allowable uses. The sponsor said the bill would ensure the account reflects current needs and supports family contact, reentry, and institutional safety. Testimony was mixed: the Washington State Reentry Council supported the concept but objected to requiring legislative appropriations and to using the funds for reentry services; a Department of Corrections representative supported the intent but raised concerns about removing law library funding without replacement. After testimony, the committee moved into executive session and considered several bills and amendments, including SB 5940, SB 5945, SB 5957, and SB 5966. Multiple amendments were offered and mostly failed on SB 5940 and SB 5945, while one amendment on SB 5945 passed. The committee advanced SB 5940, SB 5957, and SB 5966 with due-pass recommendations, and the transcript ends with the committee adjourning after the final action on SB 5966.

Transcript Highlights:

• The federal government has changed.
• The federal government has changed.
• We are very sensitive to the federal government's grants.
• It does not change Civil Air Patrol's federal authorities.
• It does not change Civil Air Patrol's federal authorities.

Bills: HB2357 , HB2365 , HB2446

Committee: House Technology, Economic Development, & Veterans

Keywords: civil air patrol, military, Washington, emergency services, public safety, digital opportunities, accessibility, technology, economic growth, education, quantum technology, economic development, workforce development, innovation, technology industry

Transcript Highlights:

• the federal payroll.
• the federal payroll.
• the federal payroll.
• the federal payroll.
• Is it the federal government that then? Is it the federal government accountable?

Transcript Highlights:

• The source for these federal funds is the Bureau of Reclamation.
• The source for these federal funds is the Bureau of Reclamation.
• I guess my only concern would be the federal dollars for replacement items.
• I think it's simply that we pay federal taxes and then therefore some of that federal tax money comes
• back to us, and that's in federal law.

Summary: The committee first approved a $3,700 dedicated-fund enhancement for the Endowment Fund Investment Board to replace a high-end laptop. It then took up several Department of Lands items. A $125,000 supplemental for Forest and Range Fire Protection to help stand up firefighters was rejected after concerns were raised that prior firefighter bonus money had gone largely to office staff rather than firefighters. The committee did approve a supplemental shifting 1.25 FTP and $160,000 from the Abandoned Mines Lands Fund to the Navigable Waterways Fund to align spending with statutory uses, and later approved a broader FY 2027 Department of Lands package including radio equipment, vehicle storage, a UTV, legal counsel fund shifts, Idaho Geological Survey support, replacement items, and OITS hardware. A proposed substitute that would have omitted the $140,500 general-fund restoration for eastern Idaho fire preparedness failed, but the original motion including that amount passed. The committee also adopted language for the Idaho Geological Survey and later approved Parks and Recreation FY 2027 enhancements for staffing, trail work, a mower, grant pass-throughs, staff housing, interpretive displays, Farragut entrance work, RV campsite development, and replacement items, after questions about federal replacement-item funding were answered by the director. A FY 2026 Parks and Recreation supplemental allowing program transfers above the 10% cap also passed. The committee then moved to the Department of Health and Welfare’s Division of Public Health Services. It approved FY 2027 funding for the Idaho Home Visiting Program, immunization assessment fund restoration, disaster planning and training, fee-for-service lab testing, ARPA multi-year grants, HIV prevention, hepatitis prevention, and a $19,000 suicide prevention restoration; a substitute motion that would have reduced the home-visiting restoration to $500,000 failed, and the original motion passed. The committee adopted reporting language for suicide prevention, HIV prevention, hepatitis prevention, and immunization assessment funds. It then considered the Division of Early Learning and Development, approving funding for Idaho Child Care Program capacity, replacement items, population forecast adjustments, and the transfer of the Idaho Home Visiting Program from Public Health; a separate motion to require an open competitive acquisition process for Idaho STARS was set aside and the committee instead held the language in committee for further work. The committee also adopted language for Idaho Home Visiting reporting, Idaho Child Care Program reappropriation, Idaho Child Care Capacity Grant restrictions, and a transfer-limitation exemption for the division. Finally, the committee began the Division of Family and Community Partnerships and heard a request for $180,000 in federal funds for kinship navigation services to help relatives and close family friends care for children and prevent foster care entry. The transcript cuts off before the vote on that item, so no final action on it is shown here.

Transcript Highlights:

• And so when the federal government makes a change to federal tax law, it has a ripple effect on the state
• Forget the federal government for a moment.
• Forget the federal government for a moment.
• Whether we're talking about the federal...
• When the federal agencies have pulled back from enforcing consumer protection, When federal agencies

Committee: Joint Joint Committee on Ways and Means

Summary: The joint budget hearing opened the FY27 budget process with remarks from the Senate and House Ways and Means chairs, who described the fiscal outlook as challenging because of slow revenue growth, rising health care and other costs, and uncertainty from federal policy changes. Governor Healey and Secretary of Administration and Finance Matthew Gorzkowicz then presented House 2, a $62.8 billion budget that they said grows by about 1% and does not raise taxes or fees. They emphasized affordability, fiscal discipline, protection of core services, and continued investment in education, transportation, housing, child care, health care, and public safety. The administration also discussed a separate bill to delay and phase in certain federal tax-code changes from the so-called OB3 law, especially research and experimental expense provisions, to reduce immediate budget impacts and preserve competitiveness. A major portion of the hearing focused on education and municipal aid. The administration said House 2 provides about $7.6 billion for Chapter 70 aid, fully funds the final year of the Student Opportunity Act, increases special education circuit breaker funding, and raises rural school aid. Senators and representatives from both parties raised concerns that Chapter 70 and other aid formulas are not equitable for small, rural, and low-wealth communities and are not keeping pace with inflation, and several called for broader review of the formula and related funding streams. The governor and secretary said they are open to further discussion, pointed to additional support through rural aid, special education, transportation reimbursements, and minimum aid, and said total Student Opportunity Act investment would reach about $2.1 billion over the life of the law. Transportation, housing, and fair share spending were also central topics. The administration said fair share revenues are being used holistically, with education-heavy spending in the operating budget and transportation-heavy spending in the supplemental budget, and estimated the overall split to date at roughly 57% education and 43% transportation. They highlighted MBTA stabilization, regional transit authority support, microtransit, fare-free regional transit, and bridge and commuter rail investments, while noting the MBTA remains a major fiscal concern. On housing, the governor stressed production, permitting reform, ADUs, down-payment assistance, and support for public housing authorities, while lawmakers pressed for more funding for local housing authorities and for ways to address out-migration, energy costs, and affordability. The governor also said the administration will not withhold fire safety grants from communities over MBTA Communities Act noncompliance and will handle such issues case by case. No votes were taken at the hearing; it was an informational presentation and question-and-answer session.

Transcript Highlights:

• </c><00:04:06.319><c> government</c> part funded by the federal government part funded by the federal
• has</c><00:04:42.479><c> recognized</c> federal government itself has recognized federal government
• That's the way that our federal regulations work.
• That's the way that our federal regulations work.
• </c> right, our grant in the federal right, our grant in the federal regulations<00:46:14.720><c> surrounding

Transcript Highlights:

• To a federal or state agency ever.
• removed from the federal rules.
• I guess this was a federal mandate.
• I guess this was a federal mandate.
• about we have been paying your bills, federal government. about we have been paying your bills, federal

Summary: The meeting focused heavily on behavioral health and substance use treatment, especially the IMD exclusion and whether North Dakota should pursue a Section 1115 waiver to allow Medicaid reimbursement for services in institutions for mental diseases for adults ages 21 to 64. Turtle Mountain representatives described major local needs, including limited access to care, high syphilis rates, and the importance of timely public health data. They also discussed the tribe’s recovery center, which opened the prior year, now operating five levels of care with 16 beds, and the desire to expand capacity, possibly through an IMD waiver or related policy changes. Committee members also raised related issues such as rural health transformation funding, telehealth, workforce retention, and the need for better coordination between tribal and state public health systems. A central issue was Turtle Mountain Public Health’s long-running effort to secure a data use agreement with the state so it can receive surveillance data and respond directly to infectious disease cases among tribal members. Speakers said the tribe had a successful COVID-era agreement that allowed faster contact tracing and case management, but that agreement ended with the pandemic. They argued that current delays in sharing data, especially for sexually transmitted infections, leave the tribe unable to respond quickly, while the state and county epidemiology workload is too distant and stretched to be effective. Committee members expressed support and said they would look into the issue, noting that other tribes have secured similar agreements. The committee also heard a detailed presentation from the National Health Law Program on the IMD exclusion. The presenter explained that federal Medicaid law generally bars payment for care in facilities with more than 16 beds, but that states can use other tools such as state plan amendments, managed care arrangements, telehealth, and community-based services. He said IMD waivers are administratively complex, time-limited, and have shown mixed results in other states, with some gains in residential treatment access but limited evidence of improved overdose outcomes or stronger community-based care. He urged the committee to consider broader continuum-of-care solutions and cautioned that waivers alone are not a cure-all. No final vote was taken on the bill draft during the portion shown, but the committee discussed the proposal to appropriate $49,000 and one FTE to HHS to pursue an IMD waiver and report back in the next interim. Members also debated the policy rationale for the 16-bed limit, the role of the state versus tribal sovereignty, and whether the bill should move through the Health Care or Human Services committee in the future.

Transcript Highlights:

• </c> happens to work for the federal happens to work for the federal government<00:04:49.680><c> can<
• </c><00:13:54.160><c> Again</c> with federal law enforcement. Again with federal law enforcement.
• </c> get to regulate the federal government. get to regulate the federal government.
• </c> 1983, which they have at the federal 1983, which they have at the federal level.<00:31:19.440><c
• They would have the federal agents.

Transcript Highlights:

• </c> uh state business taxes federally. uh state business taxes federally.
• </c> in the federal tax code. in the federal tax code.
• </c> maximize federal deductibility. maximize federal deductibility.
• It's federal conformity to the no tax on tips provisions of the federal law.
• </c> federal level. federal level.

Bills: HF3127 , HF3524 , HF3525 , HF3754

Committee: House Taxes

Transcript Highlights:

• Elmer Lazzardi here with the California Federation of Labor Unions.
• In addition, the federal administration has started mass layoffs of federal workers and gutted federal
• The federal administration has started mass layoffs of federal workers and gutted federal agencies tasked
• state and federal laws, scaring workers into remaining silent.
• Yvonne Fernandez, California Labor Federation, proud co-sponsor.

Summary: The Assembly Labor and Employment Committee heard several bills focused on worker rights, workplace technology, pay equity, and retail/self-checkout standards. SB 703 would require ports to collect and report information on trucking companies to help identify worker misclassification in the port trucking industry; supporters, including Teamsters and the California Labor Federation, said better data is needed for enforcement, while trucking and retail groups said they were working with the author and expected to remove opposition after amendments. The bill passed 5-0 and was re-referred to Transportation. The committee also approved a consent calendar of other measures. SB 294, the Workplace Know Your Rights Act, would require the Labor Commissioner to create a template for annual employer notices about workers’ labor and civil rights, including emergency contact notification if a worker is detained or arrested. Supporters said the bill would help workers understand their rights amid federal rollbacks and weak enforcement; the California Restaurant Association opposed it. SB 7 would require notice and human review before employers use automated decision-making systems for discipline or termination, and would bar predictive use of such systems for employment actions. Labor groups supported the bill as a safeguard against biased or opaque algorithmic management, while HR, chamber, retail, and local government groups raised concerns about breadth, notice burdens, and small-business impacts. Both bills passed 5-0 to their next committees. The committee also advanced SB 238, which would require disclosure about workplace surveillance and AI monitoring tools, and SB 442, which sets staffing and operational standards for self-checkout, including at least one staffed lane, one employee dedicated to monitoring self-checkout, item restrictions, and a 15-item limit sign. Supporters argued both bills improve transparency, safety, and worker protections; opponents warned SB 238 could expose security practices and SB 442 could raise costs and create preemption issues. SB 464 would expand state pay-data reporting to better capture public-sector workforce demographics in line with reparations and pay-equity goals, and SB 642 would strengthen the Equal Pay Act by extending recovery periods, clarifying wage definitions, and updating pay-scale language. SB 464 and SB 642 also passed, with some opposition from county and business groups over scope and retroactivity. All measures taken up in the hearing were approved by committee, generally on 5-0 votes, and re-referred to the appropriate policy or fiscal committees.

Transcript Highlights:

• </c> run things here with the state federal run things here with the state federal and<00:10:28.880><
• We get compensation for helping the federal government with their federal programs.
• </c> this year when you file for federal this year when you file for federal student<04:15:21.439><c>
• </c> are there any Selective Service Federal are there any Selective Service Federal Personnel<04:28:
• utilized by our federal government not utilized by our federal government since<04:35:04.039><c> the

Committee: House State-federal Relations and Veterans Affairs

Transcript Highlights:

• </c> on federal procurement. on federal procurement.
• </c> a requirement in that federal law. a requirement in that federal law.
• </c> has adopted the federal minimum wage. has adopted the federal minimum wage.
• Uh, with this federal change going to the federal law, isn’t the federal law the minimum $2.13 an hour
• </c> federal standards. federal standards.

Committee: House Labor, Industrial and Rehabilitative Services

Summary: The committee opened its labor hearing on SB 655 and outlined the day’s schedule, including a later working session on SB 416 and an executive session planned for 2:30 p.m. Senator Dan Innis introduced SB 655, describing it as a technical bill affecting employee leasing companies/professional employer organizations (PEOs), workers’ compensation coverage, and a Senate-added minimum wage exemption for minor league baseball players covered by a collective bargaining agreement. He said the PEO change would let either the PEO or the client business hold workers’ comp coverage, while still requiring coverage, and argued it would align New Hampshire with most other states and reduce barriers for small businesses and multi-state employers. He also said the baseball provision would clarify wage treatment for minor league players and support the Manchester team. Justin Warell of Insperity testified in support of the PEO portion, explaining that PEOs provide HR, payroll, benefits administration, and workers’ compensation administration through a co-employment model. He said the bill would preserve mandatory coverage while allowing flexibility for the client or PEO to maintain the policy, which could help clients who already have preferred coverage or who face cost or administrative issues in multiple states. He noted that most clients would still remain under the PEO’s policy and said Insperity would submit written comments. Committee members asked about how the arrangement would work, whether the client or PEO would pay, and whether the bill would affect liability insurance packaging; Warell said the employer still bears the cost and that the bill mainly gives larger clients an option. One member asked him to remain available for possible follow-up after hearing from the labor department. Stephen Gonzalez of Major League Baseball testified in support of the minor league baseball exemption. He said MLB and the MLB Players Association negotiated a collective bargaining agreement that already provides players with salary, housing, meals, per diems, health and retirement benefits, disability continuation, tuition assistance, and signing bonuses. He argued that treating players as hourly workers creates impractical time-tracking problems because players do work-related activities on their own time, and said the bill would recognize them as salaried workers and avoid litigation over what counts as hours worked. Committee members questioned why the exemption was needed if players are already salaried and whether MLB could simply amend its CBA; Gonzalez said the bill would help prevent wage-and-hour lawsuits and noted that similar exemptions have been enacted in other states. No vote was taken during the hearing, and the chair indicated the bill would be considered for executive action later that afternoon.

Transcript Highlights:

• Members, Robert Harrell with the Consumer Federation of California.
• Robert Rowe with the Consumer Federation of California.
• Senate Bill 825 sidesteps this important federal law process.
• So if a lawsuit under these UDAP authorities is filed under federal law, the federal CFPB has the authority
• It was about the changes that could have happened at the federal level.

Committee: House Banking and Finance

Transcript Highlights:

• government efforts to preempt Prop 12, including the 2026 federal farm bill.
• The second is related to the federal hemp program.
• the finalization, as I mentioned, of the federal rules earlier this week.
• language to implement the federal workforce Pell grant program.
• And lastly, related to federal conformity, there are a number of provisions in the federal tax bill,

Summary: The subcommittee heard May Revision proposals from the Department of Food and Agriculture, the Government Operations Agency, the Department of Technology, and the Franchise Tax Board, with public comment to come later and all items held open. CDFA presented funding for the animal care program implementing Proposition 12, including a one-time $5.2 million General Fund transfer to the Ag Fund and $2.8 million ongoing, and the LAO recommended approval while noting the Legislature should revisit the funding once litigation and federal preemption questions are resolved. CDFA also proposed ending state oversight of industrial hemp and moving to the federal USDA program by January 1, 2028, with an $8.3 million General Fund transfer to cover startup and transition costs; the LAO supported the transition. Additional CDFA items included $204,000 ongoing and one position to preserve agricultural statistics reporting after USDA reorganization, and trailer bill changes to clarify the department’s 5% indirect cost cap; both drew no objections from Finance or LAO. The Government Operations Agency and Cradle to Career items focused on implementing the new federal Workforce Pell program. Finance described trailer bill language establishing state eligibility processes, with the California Student Aid Commission as the authorizing entity in consultation with the Workforce Development Board, and proposed $1.3 million one-time General Fund for Cradle to Career to build data linkages. The LAO urged caution because federal rules were just finalized and said more information was needed on workload, costs, and whether existing data systems could support the work. Senators raised policy concerns about limiting the program to public institutions and about aligning the proposal with broader workforce and labor goals. The committee also briefly discussed SB 53/Cal Compute, with GovOps saying no appropriation had been provided for its consortium work, and Finance saying the administration was not proposing funding at this time. The Department of Technology presented a $30 million operational backstop for the Middle Mile Broadband Initiative, intended to cover any shortfall if expected revenues from the Golden State Net third-party administrator do not materialize in time. The LAO initially recommended rejection over broad spending authority, then suggested amendments with stronger reporting and legislative review; committee members questioned the revenue assumptions, oversight, and whether the request could recur. CDT also sought $1 million for Poppy, the state’s GenAI digital assistant, to expand secure statewide use; the LAO had no concerns, and members asked about data security, model bias, training restrictions, and possible local-government use. Finally, FTB proposed realigning CalFile resources after the federal Direct File program was discontinued, retaining three ongoing positions and returning the rest of the funding and positions to the General Fund; the LAO said the reduced scope was reasonable, and members discussed keeping the free filing system user-friendly and ready for future federal changes. The committee also heard the administration’s digital pre-written software tax proposal, which would extend sales tax to electronically delivered software and SaaS beginning January 1, 2027, generating an estimated $450 million General Fund in 2026-27 and $900 million ongoing, plus local revenue. The LAO supported modernizing the tax base but recommended broadening the proposal to include more digital products while considering a business-use exemption or reduced rate, and flagged a newly added video game exemption as a revenue downside. Senators generally supported the goal of raising revenue and aligning California with other states, but questioned the local revenue distribution and equity effects, and one senator said they would not support expanding the tax to books, music streaming, and similar consumer products. All items were left open without votes.

Transcript Highlights:

• </c><00:01:26.720><c> dollars</c> their money comes from federal dollars their money comes from federal
• </c><00:03:56.079><c> level</c> what's happening at the federal level what's happening at the federal
• </c> sense of if we um lose the federal sense of if we um lose the federal funding<00:25:56.080><c> how
• </c><00:30:36.679><c> we're</c> of that those Federal awards that we're of that those Federal awards
• </c> on the state grants and the federal on the state grants and the federal funds<00:31:44.880><c> to

Transcript Highlights:

• The asset test elimination, federal success, federal flexibilities.
• On March 3, 2025, the federal government published a note in the Federal Register that it would no longer
• So the federal government and the new federal administration, and even the prior administration, had
• So the federal government and the new federal administration and even the prior administration, tax at
• So the federal government and the new federal administration and even the prior administration had sent

Summary: The committee heard a budget oversight hearing on the Department of Health Care Services, focusing first on the overall Medi-Cal budget and a March General Fund loan to cover a current-year shortfall. DHCS said the 2025-26 budget proposal totals $193.4 billion, with Medi-Cal projected at $188.1 billion total funds and $42.1 billion General Fund, driven by higher enrollment, pharmacy costs, managed care growth, and costs tied to eligibility expansions and the COVID-era redetermination unwinding. The department said the $3.44 billion loan was needed to manage cash flow and ensure timely payments to providers and plans, while the LAO noted Medi-Cal’s cash-basis budgeting creates volatility and that more detailed estimates would come with the May Revision. Members discussed federal Medicaid threats, the need for transparency on cost drivers, and the impact of pharmacy spending, long-term care, and immigration-related coverage expansions. The second major topic was family health programs, including California Children’s Services, the continuous coverage unwinding, and opioid settlement fund spending. DHCS described CCS funding methodology changes, ongoing county stakeholder work, and a delayed rollout of CCS monitoring and oversight until July 1, 2025, while county representatives and advocates argued the program is underfunded and asked for more technical assistance and a delay in implementation. On the unwinding, the department explained that federal redetermination flexibilities helped maintain coverage after the pandemic, but the Governor’s budget proposes ending them at the end of June 2025; advocates urged making the flexibilities permanent to avoid coverage losses. For opioid settlement funds, DHCS and Finance said the budget increases funding for naloxone distribution while reducing other harm-reduction spending based on updated settlement revenues, prompting criticism from members and public commenters who argued the change would weaken effective harm-reduction programs. The hearing also included an update on Proposition 35 implementation. DHCS said the voter-approved measure continuously appropriates MCO tax revenues beginning in 2025, with up to $4.6 billion annually available for specified Medi-Cal and provider investments in 2025 and 2026, but implementation depends on consultation with the required stakeholder advisory committee. The department and LAO noted uncertainty about future federal rules affecting the MCO tax after 2026. Public testimony largely supported maintaining Medi-Cal expansions, protecting immigrant coverage, preserving harm-reduction funding, and increasing support for community health workers, pediatric dental care, and CCS county administration. No votes were taken during the portion of the hearing provided.

Transcript Highlights:

• standard is only 75%, and they argued federal preemption.
• It is our hope to also bring this federally.
• The federal standard for any state to label as a state is only 75%.
• That is executed per federal law, Title 8, U.S. Code 1227.
• Federal Court and the Ninth Circuit Court of Appeal...

Committee: House Governmental Organization

Transcript Highlights:

• You mentioned it was federally managed.
• How much have we gotten reimbursed from the federal government?
• It’s actually eight federally declared disasters.
• When do we get money from the federal government?
• When do we not get money from the federal government?

Summary: The committee took up four bills before moving to a broader discussion of the Emergency Preparedness and Response Trust Fund. SB 434, which would prohibit counties from increasing a home’s assessed value because the owner installed wind mitigation measures, was presented as a homeowner protection measure and reported favorably. CS/SB 110, clarifying that certain 98-year-or-longer residential leaseholders remain eligible for the homestead exemption even if the lease ends at death, was also reported favorably without opposition. SB 856, requiring online real estate listing platforms to display estimated ad valorem taxes using prescribed calculation methods and not the current owner’s tax bill, drew supportive testimony from property appraisers, Zillow, and local government groups; members emphasized transparency for buyers, especially first-time homebuyers, and the bill was reported favorably. The committee then spent most of the meeting on SPB 7040, which would recreate and extend the Emergency Preparedness and Response Fund through December 31, 2027. Supporters, including the Division of Emergency Management, argued the fund is needed for hurricanes, flooding, other disasters, and rapid response operations, and said the extension preserves legislative oversight that would otherwise lapse. Opponents from advocacy and policy groups argued the fund has been used too broadly, especially for immigration-related detention and enforcement activities, and criticized the lack of tighter guardrails and transparency. They cited deaths in detention facilities, the use of emergency dollars for non-disaster purposes, and concerns about political favoritism and public accountability. Director Kevin Guthrie testified at length in support of the extension, explaining that the fund is used for natural, man-made, and technological emergencies, that reimbursements from federal and other sources are returned to the fund, and that the state has used it for hurricanes, flooding, civil unrest, international evacuations, and immigration-related operations under Operation Vigilant Sentry. He said the division has sought federal reimbursement for some expenses and that the fund helps the state respond quickly when emergencies arise. Members questioned the size of the fund, the amount spent on immigration-related activities, the status of federal reimbursements, and whether lawmakers should have more oversight or unannounced access to detention facilities. The bill discussion remained ongoing in the portion provided, with no final vote on SPB 7040 shown in the transcript excerpt.