Transcript Highlights:

• That's an interest-bearing account.
• I'm the chief of budgets and accounting.
• The plan that we provided the Legislature last year in December 2023, we spelled out a plan and we continue
• to achieve that plan.
• I'm a proud member of SEIU Local 1000.

Summary: The Assembly Budget Subcommittee No. 5 heard updates from the Secretary of State, EDD, the State Controller’s Office, CalHR, and DGS on a range of budget proposals and federal policy impacts. Secretary of State Shirley Weber opened with remarks about California’s election system, emphasizing its safety, transparency, high voter registration and vote-by-mail participation, and the office’s response to bomb threats and other election threats. Her staff then presented funding requests for the Cal-Access Replacement System (CARS) and Help America Vote Act/VoteCal activities, describing them as needed to modernize campaign finance and lobbying disclosure systems and maintain election security and voter services. A major portion of the hearing focused on federal election policy, especially the potential effects of a presidential executive order and the SAVE Act. Secretary of State staff said California would face significant, potentially unquantifiable costs if forced to comply, including new burdens on county recorders, county election offices, and the Secretary of State’s office, and warned of voter disenfranchisement, especially for students, seniors, disabled voters, military and overseas voters, rural residents, and people with limited transportation. Members and public commenters strongly opposed the federal proposals and argued California’s current system is functioning well. The committee also heard that federal HAVA funds were not expected to be at risk because the state draws them down into an interest-bearing account. EDD reported on paid family leave, explaining that recent delays were tied to a system transition and increased claim volume, and said it was simplifying applications and adding staff and automation. Public testimony supported expanding paid family leave to chosen family. EDD also said it is prepared for possible unemployment spikes, citing a recession plan, a command center, and recent hiring. The State Controller’s Office requested funding to continue the Fiscal migration project, which would move the state’s accounting book of record to the new system by July 1, 2026; Finance and LAO had no objections, and the committee expressed support for the project’s progress. CalHR presented a proposal for a statewide recruitment, outreach, and education paid media campaign under AB 1511, saying its current advertising budget is too small to reach diverse communities effectively. The final item addressed Governor Newsom’s executive order requiring a return to office on a four-day schedule. CalHR and DGS said they were working department-by-department to assess space, parking, transit, and other logistics, but had not completed a statewide cost analysis. Members and many public commenters criticized the order, arguing it was rushed, costly, harmful to telework benefits, and potentially disruptive to workers, especially those with disabilities, caregiving responsibilities, or long commutes. No votes were taken during the hearing.

Transcript Highlights:

• that's an interest-bearing account.
• Planning that it's undertaken under Mr.
• I'm the Chief of Budgets and Accounting.
• The plan that we provided the legislature last year in December of 23, we spelled out a plan and we continue
• to achieve that plan.

Transcript Highlights:

• It's time to hold Governor Walz and his administration accountable.
• which looks into allegations of this sort within local units of government.
• which looks into allegations of this sort within local units of government.
• which looks into allegations of this sort within local units of government.
• which looks into allegations of this sort within local units of government.

Transcript Highlights:

• So that's the plan after that.
• This legislative account, the annual transfer into the account is $8.511 million.
• out of the legislative account.
• Inactive accounts or sub-accounts from the school district building account.
• sub-accounts.

Summary: The joint House Appropriations and Senate Finance committee met with a quorum and began by recognizing two pages, who each described their plans after serving and what they learned about the legislative process. The committee then turned to year-end cash transfer proposals presented by Keith Bybee, who explained that the packet contained 14 motions tied to balancing the current and upcoming budgets and managing fund balances. The proposals included transferring remaining legislative remodel funds back into the legislative account and reducing legislative transfers in fiscal years 2026 and 2027; moving unobligated money from the Idaho Broadband Fund and inactive school district building accounts to the general fund; and creating flexibility to use the 27th payroll fund only in an emergency. Other items would redirect interest earnings from several funds, including the budget stabilization fund, public education stabilization fund, water pollution control fund, permanent building fund, ARPA-related funds, and Strategic Initiatives funds, with some proceeds going to the general fund, fire suppression deficiency account, or transportation-related purposes. Members asked about balances, obligations, and the meaning of terms like “unobligated” versus “unawarded,” and Bybee said he would verify some figures before the noon meeting. Several members discussed the broader budget strategy, including the rationale for aiming for a $150 million ending balance and whether the committee should rely on reserve transfers versus other budget adjustments. Some members emphasized preserving legislative control over future supplemental spending and providing a roadmap for new committee members, while others noted that the state’s fiscal situation was partly the result of revenue decisions made by the legislature itself. The committee did not vote on the motions during this session and adjourned until noon, when it planned to take action after members had time to review the updated green sheet and follow up on questions.

Transcript Highlights:

• WE WANT TO SUPPORT THE LOCAL, WE DON'T WANT TO DICTATE THE LOCAL AREA WE WANT TO MANAGE THEIR ELIGIBILITY
• AND REALLY THE LACK OF PLANNING AHEAD FROM LOCAL GOVERNMENTS AND WHAT I MEAN BY THAT IS YES, THEY HAVE
• IT CAN BE PRIVATE ROADS, THERE IS NO WAY TO ACCOUNTS, LET'S TALK SHORE EROSION, THERE IS NO WAY TO ACCOUNT
• THAT IS A CONTRACT AT THE LOCAL COUNTY LEVEL.
• SO WHEN IT COMES TO LEVERAGING TECHNOLOGY, ENGAGING AT THE LOCAL LEVEL AND INVOLVING PREPAREDNESS PLANS

Transcript Highlights:

• These are paid by the state, local governments, families, communities, nonprofits, local law enforcement
• “These are paid by the state, local governments, families, communities, nonprofits, local law enforcement
• planning, and agency resources devoted to a proposal whose biological, Regulatory planning, conflict
• planning, and agency resources devoted to a proposal whose biological, regulatory planning, conflict
• And there is a spiny lobster sub-account that the fishery oversees.

Committee: House Water, Parks, and Wildlife

Transcript Highlights:

• For several years, TxDOT's rail division has worked with local governments to plan off-system rail grade
• Consistent with the Legislature's direction, the program helps advance strong local proposals from planning
• For several years, TxDOT's Rail Division has worked with local governments to plan off-system rail grade
• Consistent with the Legislature's direction, the program helps advance strong local proposals from planning
• And since that time, in terms of your plans, emergency plan..."

Summary: The committee met to hear interim charges on rail grade crossing safety, autonomous vehicle deployment, and commercial driver’s license oversight. After opening remarks from the chair and members, the committee first focused on rail grade separations under SB 1555, with TxDOT and the Texas Railroad Association testifying that the new state grant program was implemented quickly, drew far more applications than available funding, and helped Texas leverage state dollars into major federal awards. TxDOT said the first round funded five projects, with additional federal matching funds helping support a total project portfolio worth more than $1 billion, including the Sergio Ivan Rodriguez Memorial Bridge in Houston. Witnesses emphasized that grade separations improve safety and mobility, and committee members discussed alternative mitigation tools such as siding relocation, digital routing/notification systems, and better public education about emergency notification signs at crossings. Public testimony on rail grade separations largely supported continuing and expanding the program. Representatives from regional business and transportation groups in Houston-area communities said blocked crossings harm safety, freight movement, emergency access, and economic activity, and urged the Legislature to extend SB 1555 and keep state funding in place so Texas can continue competing for federal grants. One witness argued that railroads should bear more of the cost because the projects primarily benefit rail companies, while others stressed that the state should continue using public-private partnerships and federal matching opportunities. Committee members asked about project selection criteria, how success should be measured over time, and whether railroads contribute financially; TxDOT said future success would be measured by projects moving to construction and by reductions in crashes and fatalities at treated crossings. The committee then turned to autonomous vehicles and heard from Texas DMV officials on implementation of SB 2807. DMV explained that Level 4 and Level 5 automated vehicles transporting people or goods for a commercial enterprise must obtain a state authorization, in addition to normal title, registration, insurance, and other requirements. The agency described its rulemaking timeline, the online application and verification system, coordination with DPS on first-responder interaction plans, and the current status of authorized companies operating in Texas. A companion enforcement presentation showed how law enforcement and the public can search AV authorizations and file complaints through the DMV’s truck stop database. The hearing continued into questions about the regulatory framework and complaint process, with the committee emphasizing that safety remains the central concern as the technology expands.

Transcript Highlights:

• Uh, this tax is taxation through one of the most local and directly accountable forms of representative
• </c> accountability to locally elected school accountability to locally elected school board<00:51:34.160
• We have a plan. We had a plan the whole time I was there, the 15 years.
• So there is a plan, and it seems to be hurting a place that already has accountability, transparency,
• and plans.

Bills: HB0147 , HB0127

Committee: Senate Revenue

Transcript Highlights:

• My Career and Academic Plan, or MyCAP, is an evidence-based, student-centered, multi-year planning tool
• My Career and Academic Plan, or MyCAP, is an evidence-based, student-centered, multi-year planning tool
• Nearly 25% of that plan is really going toward the MBTA.
• for, I guess you'd call it the federal match account.
• So how do we plan long-term?

Committee: Joint Joint Committee on Ways and Means

Summary: The hearing focused on House Bill 55, the governor’s FY25 supplemental budget proposal to spend about $1.3 billion in surplus Fair Share revenue. House and Senate chairs framed the bill as a one-time opportunity to invest fairly in education and transportation, while also noting the need to protect the state’s long-term fiscal balance. Administration officials said the proposal should be considered alongside the FY26 budget and related bills, since the governor’s broader Fair Share plan aims for roughly an even split between education and transportation over time. Secretary of Administration and Finance Matthew Gorzkowicz, Transportation Secretary Monica Tibbits-Nutt, and Education Secretary Patrick Tutwiler outlined the administration’s priorities. Transportation funding would go mainly to the MBTA and related reserves, including money for the Federal Transit Administration reserve, MBTA stabilization reserve, low-income fares, winter resilience, RTA workforce support, MassDOT workforce and project delivery, and micro-transit grants. Education funding would support universal preschool expansion, early education and care capacity, early literacy tutoring, adult basic education and ESOL, early college and career technical education, MyCAP expansion, and special education circuit breaker funding. The administration emphasized that many of these investments are one-time or multi-year measures designed to address current needs without creating unsustainable recurring costs. Committee members raised concerns about regional equity, especially the large share of transportation money going to the MBTA versus regional transit authorities and rural areas. Several members asked for more detail on how the proposal would benefit Western Massachusetts and other non-MBTA regions, and whether micro-transit and Chapter 90-related investments would be sufficient. Education questions focused on special education reimbursement shortfalls, federal funding cuts to school districts, and how CTE and vocational investments would align students with workforce needs. The administration said it would provide additional data on MBTA versus RTA investment and explained that the special education circuit breaker and transportation reimbursement changes were intended to improve predictability and relief for districts. After the administration panel, Jessica Tang of AFT Massachusetts testified in support of using Fair Share funds to protect public education amid federal uncertainty and cuts. She argued that schools are facing a fiscal cliff, that vulnerable students would be hit hardest by funding losses, and that the Fair Share revenue should be used to preserve services and support students’ needs.

Transcript Highlights:

• member or patient or the plan member or pharmacy or pharmacist.
• for that cost... ...you couldn't directly invoice the plan for that cost, but at the next plan year,
• Charges to the insurer or to the health plan.
• It'll be out of local funding, and I can answer any questions.
• Out of local funding, and I can answer any questions.

Committee: Senate Finance

Summary: The Senate Finance Committee met with eight members present and deferred HB 127. It then considered a series of bills, most of which were reported favorably without opposition. HB 22 revised COLA rules for the clerks of court retirement system, allowing more frequent COLAs when the system is better funded; HB 324 made judicial stipends permanent and added future COLAs subject to available funding; HB 233 increased jury mileage reimbursement; HB 47 reorganized assessor retirement COLA statutes; HB 533 allowed St. Tammany Parish to transfer unused witness-fee account balances to the 22nd Judicial District Court; HB 980 adjusted eligibility for the Firemen’s Supplemental Pay Board; HCR 45 urged Congress to clarify ARPA deadlines for water projects; HB 559 increased court costs in the 4th Judicial District; HB 290 recreated the Department of Treasury and related entities in statute; and HB 382 addressed Joint Legislative Committee on the Budget review authority over Group Benefits plans. The committee also reported HB 1157 favorably, creating a financing bank mechanism for infrastructure projects, and HB 575 favorably, giving youth aging out of foster care preferred access to surplus state vehicles through the Louisiana Property Assistance Agency. Several measures drew more discussion. HB 1236, dealing with pharmacy benefit managers and professional dispensing fees, prompted extensive testimony from the sponsor, the Legislative Fiscal Office, the Department of Insurance, independent pharmacies, and PBM representatives. Supporters said it clarifies and strengthens enforcement of existing PBM law and protects independent pharmacies; opponents argued the bill’s requirement that PBMs bear dispensing-fee costs would be difficult to implement and could raise premiums. The sponsor said he would work on amendments, including clarifying language and a delayed effective date, and the bill was nevertheless moved favorably. SB 25, on registrar of voters compensation, was amended to a revised pay structure and then reported favorably. HB 47 and HB 533 were also presented as funding and administrative cleanups for retirement and court-related accounts, with local support noted. The committee also heard HB 233 on jury duty mileage reimbursement, which the sponsor said updates a 1961 rate and would be funded locally at an estimated average increase of about $4,000 per judicial district. HB 324 on judicial salaries was described as self-funded by the judiciary and subject to available funding, with no budget impact. HB 575 on foster youth transportation was presented as a non-appropriation measure aimed at helping youth aging out of foster care by giving them preferred access to surplus vehicles. HB 382, which concerns the Joint Legislative Committee on the Budget’s role in approving Group Benefits plans, was reported favorably with little discussion. The meeting ended after a motion to adjourn.

Transcript Highlights:

• c><00:23:48.880><c> uh</c> long range transportation planning uh long range transportation planning uh
• </c><00:26:27.120><c> to</c> service, although we are planning to service, although we are planning to
• uh</c> transportation advancement account uh transportation advancement account uh was<00:30:26.159><
• we still do local local I guess we still do local government<01:10:27.199><c> uh</c><01:10:27.360><c
• > local</c><01:10:28.560><c> government</c> government uh local government government uh local government

Bills: HF4693

Committee: House Transportation Finance and Policy

Keywords: transportation, license plates, validation stickers, replacement fees, government fees

Transcript Highlights:

• </c> the transportation advancement account the transportation advancement account uh<00:04:43.039><c
• </c><00:04:45.120><c> under</c> transportation advancement account under transportation advancement account
• </c> the transportation advancement account the transportation advancement account um<00:05:01.600><c
• </c><00:09:26.760><c> for</c> separate classifications to account for separate classifications to account
• </c><00:22:01.720><c> and</c> Transportation advancement account and Transportation advancement account

Committee: House Transportation Finance and Policy

Transcript Highlights:

• And so this is the time to start putting together a plan.
• So if you look into that plan, some sort of deferred payment plan per se, to have a goal that it'll be
• the new 2526 revenues using the DOF accounting method or an internal cash borrow.
• What I found is I've been talking with local education agencies...
• So we urge you all to preserve local flexibility.

Summary: The committee heard presentations on the Governor’s May Revision TK-12 education proposals, beginning with Proposition 98. The Department of Finance explained that the minimum guarantee rises by about $6.4 billion relative to the January budget across the three-year window, with a total of $124.9 billion in 2024-25, $125.1 billion in 2025-26, and $127.1 billion in 2026-27. Finance also described revised settle-up and reserve actions, including maintaining a $3.9 billion settle-up balance, increasing discretionary deposits into the Prop. 98 reserve, and ending with a projected reserve balance of about $10.3 billion. The Legislative Analyst’s Office said the overall estimates were reasonable but urged the state to fully fund the guarantee and use other budget actions or reserves to manage volatility rather than delay settle-up payments. Members questioned the rationale for leaving the $3.9 billion unsettled, and Finance said the amount reflects revenue uncertainty and the risk of overappropriating Prop. 98 if revenues later fall. The committee then reviewed the Department of Education portion of the May Revision. Finance said the budget adds positions and state operations funding for CDE and includes trailer bill changes affecting community schools, preschool, literacy, special education, charter accountability, and other programs. The LAO highlighted concerns and recommendations on several proposals, including the size and structure of the LCFF increase, the special education base-rate increase, additional one-time community schools funding, literacy coach and math professional development augmentations, the multilingual screener, inclusive college grants, homelessness grants, and the proposed paid pregnancy disability leave mandate. CDE supported the special education increase, paid pregnancy leave, community schools, homelessness funding, literacy and math investments, and preschool parity, while urging more support for county offices of education and clearer definitions and implementation details for some programs. Finance said the paid pregnancy leave proposal would cost an estimated $218 million annually and is intended as a recruitment and retention measure. In the Commission on Teacher Credentialing item, Finance proposed funding for legal staffing tied to SB 848 and educator misconduct cases, plus funding and fee changes to support a statewide transcript review platform for subject matter competency and additional support for the residency technical assistance center. The LAO said it had no concerns with the staffing for misconduct and SB 848, recommended the transcript review platform and related fee increase if the platform moves forward, and recommended rejecting the residency technical assistance center expansion because current funding lasts through 2029. CTC said the misconduct workload has grown over the last five to six years and that AI would be used only as a backstop to human review in the transcript system. Public commenters were split, with unions and education groups supporting special education, paid pregnancy leave, community schools, homelessness funding, and literacy investments, while opposing the $3.9 billion settle-up delay and the reduction to preschool COLA.

Transcript Highlights:

• We are the professionals responsible for implementing the state's local land use planning act, as well
• We strongly believe land use planning should remain locally implemented and locally shaped, and that
• We strongly believe land use planning should remain locally implement, and we were not contacted.
• We strongly believe land use planning should remain locally implemented and locally shaped and that any
• remove local oversight.

Committee: Senate Local Government and Taxation

Transcript Highlights:

• Our local guarantee you that.
• a lot more local control.
• ,</c><00:41:34.560><c> um,</c> crisis plans or safety school plans, um, crisis plans or safety school
• </c><00:41:47.440><c> needs</c> crisis plan or school safety plan needs crisis plan or school safety
• </c> million in the housing uh account. million in the housing uh account.

Summary: The committee took up House File 4893, a school safety and gun violence prevention bill, and first adopted a DE1 amendment before hearing the bill. The author and supporters described the measure as a layered approach to school safety, combining increased funding for student support personnel, required school safety plans, and anonymous threat reporting systems. They cited research from the Violence Prevention Project and other sources arguing that many school shooters are insiders, often show warning signs, and frequently leak plans beforehand, making early intervention and trusted adults in schools important. Members and testifiers also discussed the bill’s firearm storage provisions. Representative Green explained that the bill would require firearms on school property and in vehicles to be unloaded and locked, and would limit or remove principals’ discretion to allow firearms in school buildings, while preserving access for trained school security personnel. Supporters said the bill would improve clarity and safety for schools, while a representative from private schools raised concerns that the language could limit flexibility and create staffing and accountability problems for non-public schools, prompting discussion of possible amendments. Several student and organizational testifiers supported the bill, including students from Edina High School, Education Minnesota, the Minnesota School Counselors Association, and the Children’s Defense Fund Minnesota. They emphasized the impact of gun violence on students’ mental health and learning, the value of anonymous reporting systems, and the need to invest in counselors, social workers, psychologists, and nurses. No final vote on the bill was taken in the portion provided, but the committee did adopt the DE1 amendment and continued discussion of possible changes, including with the BCA and school safety center.

Transcript Highlights:

• The insurance market service cooperatives, PEIP, self-insured districts, locally negotiated plans work
• Plans must be responsive to local needs. A mandatory statewide structure eliminates that.
• Others can speak more fully to this point, particularly the importance of local plan design, given how
• </c><01:45:26.080><c> different</c> local plan design, given how different local plan design, given how
• ><c> File</c> local accountability the Senate File local accountability the Senate File 2904<01:46:59.520

Committee: Senate Commerce and Consumer Protection

Transcript Highlights:

• </c> commissions and plan designs. commissions and plan designs.
• </c> individuals have left our district plan. individuals have left our district plan.
• </c> the plans just get worse. the plans just get worse.
• for a single plan and a family<01:20:28.640><c> plan.
• </c><01:21:57.360><c> One</c><01:21:57.560><c> quick</c> plans. Okay. One quick plans. Okay.

Bills: HF3119

Committee: House Education Finance

Keywords: teacher compensation, educational staff, unlicensed staff, minimum wage, inflation adjustment, education finance

Transcript Highlights:

• But it also, the plans along with the cost assessments, will allow the State Legislature as well as local
• But it also, the plans along with the cost assessments, will allow the state legislature as well as local
• Although developers have noted they have some plans to invest in these local and tribal communities,
• Although developers have noted they have some plans to invest in these local and tribal communities,
• CEQA is still conducted on general plans, area plans, you know, special plans, right?

Committee: House Natural Resources

Summary: The committee heard extensive testimony on AB 1243, the Polluters Pay Climate Superfund Act of 2025, which would direct CalEPA to identify major fossil fuel companies, study California’s climate damages, and assess fees on large polluters to fund resilience, recovery, and related projects. The author and supporters argued the bill would shift costs from taxpayers to the companies most responsible for climate harm, while dedicating funding to disadvantaged communities, home hardening, school resilience, clean energy, and jobs. Supporters included environmental justice groups, health advocates, youth activists, labor-aligned climate groups, and many individual witnesses who described climate impacts in their communities and urged polluters to pay. Opposition came primarily from the building trades, business groups, and petroleum-related organizations, who argued the bill would raise fuel and consumer costs, create uncertainty for business, and accelerate refinery closures and job losses. They said California already has cap-and-trade, which they described as a better tool for funding climate action and reducing emissions, and warned that retroactive liability for past emissions was legally and economically problematic. Committee members questioned both sides on consumer impacts, job effects, and whether cap-and-trade already addresses the problem. After discussion, the committee voted 6-1 to pass AB 1243 to the Judiciary Committee, with Assembly Member Ellis voting no and Assembly Member Muratsuchi not voting. The chair and members noted the bill would continue to be discussed, and the author closed by emphasizing the need to fund climate resilience while holding polluters accountable. The transcript then began a separate presentation on a wildfire mitigation bill, with the author introducing committee amendments and describing wildfire prevention and recovery needs, but that item was not completed in the excerpt.

Transcript Highlights:

• account, that was planned as part of the 2024 budget agreement and leaves remaining reserves for the
• And I've started having conversations. ...with localities in my district about how we figure out a plan
• DeMaio, but my checkbook, we have a savings account that we use when we go over in our checking account
• Their five-year plan, sorry, their business plan, is published in even years, and then in odd years,
• So that's accounted for in CDCR's budget, and those costs are accounted for and provided for in this

Committee: House Budget

Transcript Highlights:

• When we start infringing upon that home rule by telling our local planning boards and zoning boards what
• Our local planning boards and zoning boards what they may and may not consider in any application coming
• The central purpose of our local zoning and our local planning and our local plan...
• The central purpose of our local zoning and our local planning boards is to consider the neighborhood
• By passing this bill, we tell every local government in New Jersey that accountability does not matter