Transcript Highlights:

• Additionally, there is $6.4 billion set aside in the Surplus Holding Account.

Summary: The Assembly Budget Committee met to consider the final three-party agreement for the 2026-27 state budget and 19 implementing bills, including two budget bill juniors and 17 trailer bills. Committee leadership and administration officials described the budget as a balanced plan that reduces out-year structural deficits, maintains large reserves, and makes major investments in health care, education, housing, child care, public safety, and other core services while also responding to expected federal cuts and fiscal uncertainty. The Department of Finance outlined the package’s major components, including Medi-Cal adjustments, education funding increases, higher education changes, child care and human services updates, housing and homelessness funding, energy and transportation provisions, and tax and general government changes. Members asked questions about several provisions, including CSU enrollment targets and turnaround plans, the Prop. 98 settle-up mechanism, the plastics market development payment program, housing accountability measures, NextGen 9-1-1 implementation, and veteran services. Staff and administration witnesses explained that the higher education language is intended to improve campus-by-campus reporting and oversight, that Prop. 98 settle-up would be finalized later through the statutory certification process, and that NextGen 9-1-1 now includes one-time funding, quarterly reporting, an independent technical review, and a state audit. Members also discussed the HAP homelessness funding increase to $900 million and the balance between accountability and timely distribution of funds. The most extended exchange centered on comparisons between funding for veterans and Medi-Cal/immigrant health coverage. Republican members argued the budget spends far more on undocumented immigrant services than on veterans, while Democratic members and Finance staff responded that the comparison was misleading because many veterans’ services are federally funded and the state budget also includes dedicated veteran support. The chair and other members emphasized that the budget reflects difficult tradeoffs and that the package protects vulnerable populations, preserves health care access, and advances affordability. No final vote was described in the excerpt, but members indicated support for the overall package and said they would support it on the floor.

Transcript Highlights:

• House Bill 1129 by Representative Schamberhorn is an act in Title 39 relative to the sale of surplus

Bills: SR122, SR123, SR124, SCR12, HB940, HB221, HCR109, HCR58, HB27, HB143, HB205, HB259, HB267, HB288, HB308, HB403, HB405, HB414, HB417, HB478, HB546, HB548, HB555, HB557, HB609, HB670, HB672, HB740, HB779, HB786, HB796, HB812, HB848, HB909, HB915, HB917, HB921, HB930, HB933, HB938, HB971, HB1095, HB1096, HB1103, HB1129, HB1154, HB1166, HB1187, HB1195, HB1230, SB121, SCR22, SCR24, SB29, SB30, SB32, SB41, SB42, SB43, SB47, SB84, SB93, SB113, SB192, SB199, SB219, SB220, SB221, SB222, SB241, SB253, SB255, SB289, SB292, SB306, SB314, SB351, SB399, SB404, SB14, SB102, SB133, SB151, SB165, SB169, SB170, SB200, SB217, SB280, SB291, SB300, SB303, SB330, SB449, SB489, SB521, SB45, SB156, SB181, SB203, SB274, SB304, SB379, SB396, SB410, SB425, SB427, SB436, SB424, SCR61, SCR9, SB35, SB65, SB215, SB246, SB249, SB269, SB282, SB296, SB323, SB363, SB369, SB474, SB490, SB492, SB500, HCR31, HB296, HB299, HB322, HB364, HB519, HB535, HB538, HB568, HB571, HB622, HB635, HB676, HB772, HB784, HB1006, HB1018, HB1043, HB1070, HB1134, HB1239, HB62, HB193, HB203, HB210, HB220, HB228, HB246, HB420, HB475, HB486, HB574, HB584, HB750, HB813, HB815, HB826, HB870, HB949, HB953, HB1045, HB1092, HB1151, HB1162, HB1176, HB1177, HB1196, HB1214, HB1241, HB22, HB28, HB33, HB41, HB47, HB87, HB115, HB162, HB195, HB214, HB217, HB233, HB283, HB290, HB319, HB324, HB345, HB362, HB363, HB368, HB377, HB380, HB382, HB386, HB392, HB406, HB431, HB441, HB466, HB503, HB533, HB559, HB575, HB590, HB593, HB618, HB636, HB655, HB664, HB685, HB692, HB707, HB715, HB732, HB738, HB741, HB748, HB776, HB807, HB822, HB856, HB860, HB868, HB887, HB888, HB905, HB908, HB961, HB980, HB990, HB992, HB999, HB1000, HB1010, HB1146, HB1157, HB1233, HB1236, HB1243, HB17, HB36, HB73, HB119, HB126, HB129, HB133, HB140, HB159, HB166, HB211, HB226, HB245, HB271, HB280, HB337, HB351, HB354, HB399, HB677, HB712, HB723, HB726, HB728, HB759, HB789, HB844, HB850, HB966, HB1036, SB149, SB382, SB441, HB134, HB258, HB359, HB782

Keywords: SR122, Senate Resolution 122, Metairie Park Country Day School, Country Day Cajuns, Cajuns basketball, LHSAA, Louisiana High School Athletic Association, Division III Select, boys basketball, state championship, high school sports, athletic commendation, sports resolution, Lake Charles, Marsh Madness, Mike McGuire, Brennan White, Kellen Brewer, Calvary Baptist Academy, school recognition

Transcript Highlights:

• House Bill 1129 by Representative Schamerhorn is an act in Title 39 relative to the sale of surplus state-owned

Bills: SR122, SR123, SR124, SCR12, HB940, HB221, HCR109, HCR58, HB27, HB143, HB205, HB259, HB267, HB288, HB308, HB403, HB405, HB414, HB417, HB478, HB546, HB548, HB555, HB557, HB609, HB670, HB672, HB740, HB779, HB786, HB796, HB812, HB848, HB909, HB915, HB917, HB921, HB930, HB933, HB938, HB971, HB1095, HB1096, HB1103, HB1129, HB1154, HB1166, HB1187, HB1195, HB1230, SB121, SCR22, SCR24, SB29, SB30, SB32, SB41, SB42, SB43, SB47, SB84, SB93, SB113, SB192, SB199, SB219, SB220, SB221, SB222, SB241, SB253, SB255, SB289, SB292, SB306, SB314, SB351, SB399, SB404, SB14, SB102, SB133, SB151, SB165, SB169, SB170, SB200, SB217, SB280, SB291, SB300, SB303, SB330, SB449, SB489, SB521, SB45, SB156, SB181, SB203, SB274, SB304, SB379, SB396, SB410, SB425, SB427, SB436, SB424, SCR61, SCR9, SB35, SB65, SB215, SB246, SB249, SB269, SB282, SB296, SB323, SB363, SB369, SB474, SB490, SB492, SB500, HCR31, HB296, HB299, HB322, HB364, HB519, HB535, HB538, HB568, HB571, HB622, HB635, HB676, HB772, HB784, HB1006, HB1018, HB1043, HB1070, HB1134, HB1239, HB62, HB193, HB203, HB210, HB220, HB228, HB246, HB420, HB475, HB486, HB574, HB584, HB750, HB813, HB815, HB826, HB870, HB949, HB953, HB1045, HB1092, HB1151, HB1162, HB1176, HB1177, HB1196, HB1214, HB1241, HB22, HB28, HB33, HB41, HB47, HB87, HB115, HB162, HB195, HB214, HB217, HB233, HB283, HB290, HB319, HB324, HB345, HB362, HB363, HB368, HB377, HB380, HB382, HB386, HB392, HB406, HB431, HB441, HB466, HB503, HB533, HB559, HB575, HB590, HB593, HB618, HB636, HB655, HB664, HB685, HB692, HB707, HB715, HB732, HB738, HB741, HB748, HB776, HB807, HB822, HB856, HB860, HB868, HB887, HB888, HB905, HB908, HB961, HB980, HB990, HB992, HB999, HB1000, HB1010, HB1146, HB1157, HB1233, HB1236, HB1243, HB17, HB36, HB73, HB119, HB126, HB129, HB133, HB140, HB159, HB166, HB211, HB226, HB245, HB271, HB280, HB337, HB351, HB354, HB399, HB677, HB712, HB723, HB726, HB728, HB759, HB789, HB844, HB850, HB966, HB1036, SB149, SB382, SB441, HB134, HB258, HB359, HB782

Keywords: SR122, Senate Resolution 122, Metairie Park Country Day School, Country Day Cajuns, Cajuns basketball, LHSAA, Louisiana High School Athletic Association, Division III Select, boys basketball, state championship, high school sports, athletic commendation, sports resolution, Lake Charles, Marsh Madness, Mike McGuire, Brennan White, Kellen Brewer, Calvary Baptist Academy, school recognition

Summary: The Senate convened with a quorum, heard a guest minister’s prayer and the pledge, and dispensed with reading the journal. The chamber then received Legislative Bureau reports on numerous House bills, many of which were reported favorably or without amendments and ordered to third reading or to the Legislative Bureau. The Senate also adopted a House concurrent resolution commending Special Olympics Louisiana by a 35-0 vote, and it took up several Senate resolutions, including one urging the Navy to use a transparent and competitive acquisition strategy to protect jobs at Conrad Shipyard, one commending Metairie Park Country Day School, one designating Early Ed Day, and one offering condolences for Carolyn Ann Cherry Moore. The main floor debate centered on Senate Bill 121, the congressional redistricting bill. Senator Morris presented the bill as a response to the federal court’s Calais decision, arguing the current map was unconstitutional and that the new plan should avoid race as the predominant factor while using partisan advantage, incumbency protection, compactness, contiguity, and communities of interest. Senators questioned whether the proposal effectively created a 5-1 Republican map, whether it diluted Black and Democratic voting strength, and whether it split too many parishes. Morris said the map was drawn from the 2022 plan, tweaked in committee and again on the floor, and that litigation was likely regardless of the final version. Two competing amendments drew extended debate. Senator Morris’s amendment, which further refined his map, was adopted 26-10. Senator Price then offered an alternative map based on an amicus brief and algorithmic criteria, arguing it would create two opportunity districts, split fewer parishes, avoid using race, and better reflect the state’s partisan balance; supporters said it was fairer and more compact, but it failed 10-27. After the amendments, the Senate returned to SB 121 for further questions, with members continuing to debate whether the bill’s 5-1 structure was a lawful partisan gerrymander or an impermissible racial dilution of voting strength.

Transcript Highlights:

• And directing the temporary AI boom surplus to human creativity is a fitting affirmation for arts workers

Keywords: 987, senate, all

Summary: The subcommittee heard a budget item on vehicle license fee backfill funding, where the Department of Finance said the administration was not proposing the requested $119 million for San Mateo County, Alpine, and Mono, arguing the payment is discretionary and that existing excess ERAF formulas should remain unchanged. Senator Becker and former Senator Jackie Speier testified that the money is owed under the VLF swap arrangement and that San Mateo County faces major service cuts without the backfill; Senator Cabaldon raised broader policy questions about county boundaries and the structure of the formula. The chair held the item open after public comment. The committee then reviewed Secretary of State budget proposals. The department requested funding for SB 851 implementation, including additional duties related to election litigation notice, voting system standards, and vendor reporting, with $1.1 million General Fund in 2026-27 and $807,000 ongoing for four positions and software. Members asked about election security, federal HAVA funding, staffing, and implementation timing; the department said current federal funds are expected to run out in 2027-28 and that it hopes to hire quickly once funded. The item was held open. The Secretary of State also presented the Cal Access Replacement System (CARS), seeking $11.8 million General Fund to finish the project and begin operations, and the notary automation replacement project, seeking $9.795 million in Business Fees Fund for continued development of the outdated notary system. Members focused on project delays, stakeholder input, and whether the funding requests matched prior plans; the department said both projects were still on their original funding tracks but had shifted timelines due to planning needs and election-related workload. Both items were held open. CalVet presented its department overview and then discussed the new 240-bed skilled nursing facility at Yountville, which is nearing completion and will replace the aging Holderman Hospital building. Members asked about the future of Holderman, other campus capital projects, and a payroll/fringe-benefit issue affecting some employees; CalVet said Holderman will continue to house some functions, the roofing and steam projects remain in progress, and the tax issue has been addressed with new procedures and repayment arrangements. The committee also discussed eliminating vacant positions under Control Section 4.12, with CalVet saying the positions were long-vacant CNA and related jobs and the LAO noting the Legislature had not concurred; Senator Cabaldon said he had no objection, and the item was held open. Finally, the California Arts Council gave an overview of its work and its cultural districts program, describing grants and technical assistance in all 58 counties and citing examples of local impact. Senator Smallwood-Cuevas strongly supported additional funding, including a proposed $50 million General Fund investment and a $10 million carve-out for cultural districts, arguing the program supports economic development, preservation, and community identity; council staff said the program is currently unfunded and has only been able to designate a fraction of applicants. Senator Cabaldon noted that many parts of the state still lack cultural districts and urged broader geographic representation. The item was informational and no vote was taken.

Transcript Highlights:

• through 6 describe changes to the Workers' Compensation Reinsurance Association's process for excess surplus

Keywords: 1187, senate, all

Transcript Highlights:

• My question is: are surplus personalty now going to be includable in the probate estate?

Keywords: 958, all

Transcript Highlights:

• So the idea is that if you have 50% surplus capacity, meaning 50% of your plant is not being used, then

Keywords: 1182, all

Summary: The House convened with prayer, the Pledge of Allegiance, guest introductions, and recognition of Arizona School Board Association members and local school board representatives visiting the Capitol for Advocacy Day. Members also honored the House Doctor of the Day, Dr. Heather Serran, and approved the journal and attendance. The chamber then moved through a large number of Senate messages and House calendar items, including committee assignments and first and second readings of many bills. A major floor action was the unanimous adoption of SCR 1054 honoring former Arizona Attorney General Mark Brnovich, followed by remarks remembering his public service and consumer-protection work. The House also agreed to return SB 1278 to the Senate for reconsideration and referred several House bills to an additional Committee of the Whole for further amendment. In Committee of the Whole, members considered and advanced numerous bills, including HB 2055, 2150, 2426, 2456, 2457, 2728, 2755, 2918, and 2923, with several floor amendments adopted. HB 2728 drew the most debate over Department of Economic Security continuation and added policy changes affecting SNAP, unemployment, and eligibility verification; after a divided question and recorded vote, it received a do-pass recommendation by 32-25. The House also advanced HB 2134, 2142, 2289, 2290, 2331, 2379, 2397, 4026, and 4033 in later Committee of the Whole sessions, with discussion focused on school safety funding and governance, school board training, HOA disclosure reforms, tax sourcing clarity, and bond disclosure language. Several bills were retained on the calendar, including HB 4041, HB 2444, HB 4018, and HB 4070. In final third-reading votes, HB 2053, HB 2327, and HB 2416 passed; HB 2175 and HB 2492 failed; and HB 2805, which would make school board races partisan, was under debate at the end of the transcript amid strong arguments both for and against increasing partisanship in school board elections.

Transcript Highlights:

• actually guarantee that each cell within the company will be shielded not only from sharing capital and surplus

Summary: The committee first confirmed six appointees on a single roll-call vote, then took up a series of bills, many of them on land use, housing, public safety, child welfare, education, and professional licensing. Early debate centered on CS/SB 208, which would require development fees to better reflect review costs and impose objective compatibility findings for residential projects. An amendment folded in additional housing-related provisions, including manufactured housing and a study of urban development boundaries, prompting extended discussion about Miami-Dade’s Everglades protection area and local control. A late-filed rural-boundary amendment was withdrawn. The bill was reported favorably after support from business, housing, and advocacy groups, with some senators voicing district-specific concerns. The committee then approved CS/CS/SB 686 on agricultural enclaves after amendments added conservation easement, wildlife corridor, and critical state concern protections, plus a further Everglades-related amendment. Members discussed balancing smart growth, infrastructure costs, and protecting environmentally sensitive areas. Other land-use and growth bills also advanced, including CS/SB 1434 on infill redevelopment, CS/SB 1138 on qualified contractor pre-application review, and SB 218 limiting the reach of prior hurricane recovery zoning protections in counties not affected by the 2024 storms. SB 1474 on biosolids management was amended to reduce the distance threshold for land application restrictions and delay the effective date, and SB 1708 on veterinary licensure by endorsement removed a three-year recent-practice requirement to address shortages. Several public safety, health, and family-related measures also passed. CS/CS/SB 436 expanded felony battery enhancement to include resisting an officer with violence and certain law-enforcement battery offenses. SB 830 extended public-records protections to county and city administrators and related family information. CS/CS/CS/SB 600 revised bail bond rules, and an amendment preserved the current treatment of charitable bail funds and nonprofits; the committee heard testimony from The Bail Project and others on both sides. CS/SB 914 expanded dry-needling supervision options for occupational therapists, CS/SB 1092 clarified podiatric use of certain cellular/tissue products, and SB 1504 and SB 1718 updated insurance licensing and educator certification pathways. On the education side, CS/CS/SB 7038 made broad postsecondary changes, including tuition waivers, residency clarification, and licensure rules, while CS/SB 186 required seizure-response training and action plans in schools. The committee also advanced multiple child welfare and health bills. CS/CS/CS/SB 560 streamlined psychotropic medication procedures for children in state custody and added youth-voice and insurance-review provisions. CS/CS/CS/SB 902 combined several Department of Health changes, including medical marijuana distance rules, autism microcredential eligibility, a neurofibromatosis grant program, and NICU nutrition information. SB 1002 expanded child welfare definitions to address parental drug abuse and neglect, and SB 1708 eased endorsement licensure for out-of-state veterinarians. Most bills were reported favorably on roll-call votes, with several amendments adopted along the way and limited opposition or abstentions noted on some measures.

Transcript Highlights:

• actually guarantee that each cell within the company will be shielded not only from sharing capital and surplus

Summary: The committee first confirmed six appointees in a single vote, then took up a series of bills, most of them reported favorably. The early debate centered on SB 208, a land-use bill by Sen. McLean that would require development fees to reflect review costs and create more objective compatibility standards for residential development denials. An amendment adding housing-related provisions, including an OPAGA study of urban development boundaries, drew extended discussion over the Everglades and local control; it was adopted, while a late-filed amendment on rural boundaries was withdrawn. The bill was then reported favorably after supporters and opponents, including Miami-Dade and housing groups, weighed in. The committee also favorably reported SB 686 on agricultural enclaves after amendments adding conservation, wildlife corridor, and Everglades-related protections, with one amendment specifically preserving stronger protections in counties covered by the Northern Everglades/Indian River Lagoon plan. Several criminal justice and public records measures also advanced. SB 436 would add resisting an officer with violence as a qualifying prior offense for battery enhancement and include certain felony battery offenses in prison release reoffender status. SB 830 would extend public-records protections to county and city administrators and related family information. SB 990 would authorize protected cell captive insurers in Florida. SB 600, on bail bonds, drew the most debate: an amendment by Sen. Rouson preserved the current treatment of charitable bail organizations’ deposits, with supporters arguing nonprofits help low-income defendants and critics saying the bill should distinguish commercial and nonprofit bonding; the amendment was adopted and the bill reported favorably. SB 914 on dry needling and SB 1434 on infill redevelopment also passed, the latter with an amendment removing a 10% markup requirement for buyback provisions. The committee then moved through a large education and health agenda. SB 1504 would let high school students who complete an insurance/personal finance elective qualify later for a customer service representative license. SB 1718 would expand educator preparation and temporary certification options. SB 7038 was a broad education package covering tuition waivers for Florida State Guard members, residency rules, consumer protections, dual enrollment, grading, and college funding; amendments clarified workforce licensure and exempted certain dental training from new licensure rules. SB 1092 on podiatric medicine added definitions and restrictions for cellular/tissue-based products. SB 1138 on qualified contractors created a pre-application review program for certain local governments, with historic-preservation carveouts. SB 186 on student health and safety required seizure-training and action plans in schools, and SB 560 on child welfare streamlined psychotropic-medication procedures for children in state care while adding youth advisory meetings and insurance-data review. SB 902, a broad Department of Health bill, addressed medical marijuana facility setbacks, practitioner discipline, autism microcredentials, marriage and family therapy licensure, a neurofibromatosis grant program, and family home health aide delegation; it passed after two amendments. Finally, SB 218 on land-use regulations limited hurricane-recovery restrictions to affected counties, SB 1002 expanded child-neglect definitions tied to parental drug abuse, SB 1474 tightened biosolids land-application rules, SB 1708 eased out-of-state veterinary licensure by endorsement, and SB 314 established a Florida regulatory framework for payment stablecoins aligned with federal law. Most measures were reported favorably by committee vote after brief testimony or no debate.

Transcript Highlights:

• I'll just wonder why you have had that surplus. Sometimes it's hard for them to get.

Bills: SB97, SB55, SB40, SB38, SB120, SB113, SB116, SB117, SB118

Keywords: tax credits, municipality, county property, industrial revenue bonds, economic development, qualified expenditures, solar energy, tax credit, renewable energy, photovoltaic, solar thermal, New Mexico, economic incentive, energy independence, SB40, Driver Privacy and Safety Act, automated license plate reader, ALPR, license plate reader, vehicle surveillance

Transcript Highlights:

• Well, there was a perceived surplus of doctors that we were going to have.

Transcript Highlights:

• the amendment in a second, I think it's going to address that in a more clear fashion without the surplus

Bills: SB 1, HCR 20, HR 131, HR 133, HR 135, HR 136, HR 137, HR 144, HR 145, HR 146, HR 149, HR 150, HR 151, HR 152, HR 158, HR 161, HR 162, HR 163, HR 165, HR 166, HR 168, HR 169, HR 170, HR 175, HR 178, HR 127, HR 129, HR 130, HR 132, HR 134, HR 138, HR 139, HR 140, HR 141, HR 142, HR 143, HR 153, HR 154, HR 155, HR 156, HR 159, HR 160, HR 164, HR 167, HR 172, HR 173, HR 176, SB 1, HB 8, HB 15, HB 27, SB 5

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, memorial, remembrance, legacy, condolences, community, higher education, university merger, research, public health, economic impact, healthcare, insurance, affordability, medical coverage, state regulations

Transcript Highlights:

• values, the values of keeping land held in conservation the way the parks are and then the consumer surplus

Transcript Highlights:

• surpluses for the last several years, and I think $3 billion over the last several years, billion surplus

Transcript Highlights:

• unveiled his initial budget proposal in early January, the Department of Finance was projecting a small surplus

Summary: The Assembly Budget Committee heard opening remarks on the 2025 Budget Act, which will be amended into AB 101 and SB 101 for floor consideration. Committee leaders described the budget as a difficult compromise shaped by a $12 billion deficit, federal funding uncertainty, wildfire impacts, and rising out-year costs, while emphasizing a balance between compassion and fiscal responsibility. Each budget subcommittee chair then summarized major actions in their areas, including health care, human services, education, climate and transportation, housing and state administration, public safety, and oversight/transparency. Key policy items included delaying or narrowing some of the Governor’s proposed cuts, especially in Medi-Cal and other safety-net programs; preserving funding for dental care, women’s health, family planning, hospice, long-term care, IHSS, and services for undocumented Californians; and maintaining or expanding child care, foster care, food banks, and CalWORKs-related supports. Education actions included additional Proposition 98 settle-up, reduced deferrals, support for TK-12, teacher recruitment, literacy, mental health, preschool slots, and restored funding for UC and CSU. Other major items included housing and homelessness investments, wildfire and disaster response funding, transit loans and greenhouse gas reduction fund support, Proposition 36 and VOCA-related public safety funding, and oversight measures on federal impacts and state efficiency. Department of Finance and Legislative Analyst staff said the package makes some of the same savings moves as the May Revision but relies more on internal borrowing and fewer reductions, leaving a smaller reserve than the administration’s plan but still maintaining roughly $11 billion in the rainy day fund. Members from both parties largely supported the package while raising concerns about long-term sustainability, Medi-Cal costs, reserve use, and the need for future revenue and program review. The committee adopted the subcommittee actions by roll call, 18-6, with the roll held open for absent members and additional comments continuing after the vote.

Transcript Highlights:

• a thought that we would never move back to Tracy, that existing parcel would have been put on the surplus

Summary: The committee heard extensive testimony on Proposition 36 and its implementation, with judicial and budget officials describing it as a major shift from misdemeanor to felony processing for repeat drug possession and certain theft offenses. Witnesses explained that the law creates a treatment-mandated felony process that can lead to dismissal if a defendant completes treatment, but also requires evaluations, court monitoring, and potentially long, open-ended supervision. Judicial representatives said the new law is already generating large numbers of filings, creating workload, staffing, courtroom, and facility pressures, and that access to treatment beds, housing, and evaluation capacity is limiting participation. Several speakers emphasized that collaborative courts are effective but are not a perfect fit for Prop. 36 because those programs are typically probation-based and serve different risk/need populations. Court officials from San Bernardino and Orange counties said the impacts vary by county but are severe, with some counties seeing hundreds or more filings in a short period and others moving more slowly to build treatment infrastructure first. They argued that Prop. 36 is effectively an unfunded mandate unless the state provides more resources for judges, staff, facilities, treatment, housing, and supervision. The Legislative Analyst’s Office noted that Prop. 36 will reduce the Proposition 47 savings that fund mental health and substance use treatment grants, but said the near-term reduction is relatively modest and that the full effect will take time to appear because of the way those savings are calculated. Members of the committee repeatedly raised concerns that the state is underfunding the courts and counties needed to carry out the new law. The committee also reviewed the Governor’s proposed trial court operations budget, including a partial restoration of a prior $97 million cut and additional ongoing funding. Judicial branch officials said the restoration helped avoid furloughs, hiring freezes, and service reductions, and supported cybersecurity, technology, staffing, and records management. The LAO recommended that the Legislature seek more detail on how midyear restorations are handled and consider clarifying language for transferring unspent trial court trust fund monies to the General Fund. Finance said the flexibility in the ongoing funding was intentional and would be taken back for consideration. In a separate item, the committee heard testimony on a $6.3 million increase for Supreme Court and Courts of Appeal appointed counsel programs. Judicial officials and appellate project representatives said the system is facing a crisis because indigent appeals have risen sharply while the number of panel attorneys has fallen, leaving many cases waiting months for counsel. They argued the proposed increase would help but is still below what is needed to recruit and retain attorneys and prevent delays that affect criminal, juvenile, and child welfare cases. The committee also discussed the Tracy courthouse project in San Joaquin County, where local officials said reopening a courthouse closed since 2011 is necessary to serve a growing population and relieve overcrowding elsewhere. The LAO and Finance both noted the project is next in line under the facilities plan, though LAO suggested the Legislature could consider whether other facility priorities should come first.

Transcript Highlights:

• And between energy and agriculture, that drive our state's economy, they drive our state's surplus.

Keywords: 1184, house, all

Transcript Highlights:

• We've been lucky to get between $200 million and $300 million in surplus years over the last several

Summary: The committee held an informational hearing on flood risk and flood management in California, with opening remarks emphasizing that flooding is a statewide and growing threat due to climate change, including the possibility of extreme losses in a worst-case event. Members noted recent flooding in places such as San Diego, the Tulare Basin, and Pajaro, and framed the hearing as a way to better understand prevention, response, and how to capture excess water for later use. Jeffrey Mount of PPIC gave the main overview, describing California’s high flood exposure, the different flood types the state faces, and the mix of structural and non-structural tools used to manage them. He stressed that levees, dams, bypasses, land-use planning, flood insurance, and emergency response all matter, but that risk is rising because current standards are based on past hydrology rather than future climate conditions. He also warned that flood management is underfunded, that the National Flood Insurance Program is weak, and that federal support is increasingly uncertain. Members asked about groundwater recharge, permitting, NOAA and federal cuts, and which communities are most at risk; Mount said recharge can help but does not eliminate flood risk, and that small Central Valley communities and heavily developed floodplains are especially concerning. State officials Laura Hollander of the Department of Water Resources and Jane Dolan of the Central Valley Flood Protection Board described the state’s role in forecasting, emergency response, grants, planning, and the Central Valley Flood Protection Plan. They highlighted aging infrastructure, the need for better coordination, and the state’s special liability in the Central Valley after the Paterno decision. Dolan reviewed the history of major floods and said the plan calls for about $1 billion per year over 30 years to meet current needs, while Hollander said the state works with local and federal partners on preparedness, response, and subventions projects. Both emphasized that floodplain planning, regional coordination, and faster permitting are important, but that more consistent funding is needed. A later panel from local flood agencies and districts reinforced those points, arguing that the state’s annual flood funding is below identified needs and that a proposed statewide flood and dam safety bond was reduced substantially in the broader climate bond package. Witnesses urged more routine maintenance funding, support for regional flood planning, and continued federal-state-local partnerships to reduce risk and maintain eligibility for federal assistance. No formal votes or legislative actions were taken during the informational hearing.

Transcript Highlights:

• biennium, which in this case will be for fiscal years 26 and 27, where we do still estimate a small surplus

Keywords: 919, house, all

Summary: Minnesota Management and Budget presented the February 2025 budget and economic forecast, with Commissioner Aon Campbell, State Economist Anthony Becker, and Budget Director Anam Mingi outlining updated revenue, spending, and long-term balance projections. The state’s FY 2026-27 general fund outlook remains positive but weaker than in November, with an ending balance of $456 million, down $160 million from the prior forecast. Looking ahead, the planning years FY 2028-29 show a projected deficit of just under $6 billion, driven largely by spending growth outpacing revenues. Officials emphasized that discretionary inflation is a major factor in the forecast, but also noted that those amounts are not automatically appropriated and would require legislative action. Becker said the national outlook has changed since November, with higher expected inflation, higher interest rates for longer, and slower growth in later years. He highlighted uncertainty around tariffs, trade policy, immigration policy, federal spending, and possible changes to tax and debt-ceiling policy, all of which could affect Minnesota’s economy and revenues. Minnesota’s labor market remains tight, with low unemployment and rising wages, and the revenue forecast was revised upward overall for FY 2026-27, including higher income and sales tax receipts, though corporate tax revenue was slightly lower than previously projected. Mingi said projected general fund spending is up $79 million in FY 2026-27 and $960 million in FY 2028-29 compared with November. The largest increases are in education and health and human services, especially due to inflation, higher pupil counts, special education costs, long-term care, and higher Medical Assistance spending. She noted that higher utilization of weight-loss drugs also raises Medicaid costs, and that a smaller assumed bonding bill helps offset some debt service costs. The commissioner and staff repeatedly warned that federal policy changes, especially possible Medicaid reductions, pose a major risk; they said Minnesota could face billions in lost federal funding, including a potential $2.4 billion hit if the enhanced Medicaid match for adults without children were eliminated. No votes or legislative actions were taken in the presentation.

Transcript Highlights:

• When I was here two years ago, we had a big surplus and we renewed the film tax credit.

Keywords: 988, house, all