Transcript Highlights:

• I've got a 12% growth rate in there.
• I've got 12% growth in that.
• So once that's known in January, that's known.
• So the department collects grand total, all the taxes, about 12.
• But the department collects $12 billion.

Summary: The Revenue Estimating Conference met with four members present and first approved the prior meeting minutes and recognized the FYI end-of-balance of $577,077,871 as nonrecurring revenue. The main business was revising the state revenue forecast for FY 2026, FY 2027, and the long-range outlook. The Division of Administration recommended a $113 million reduction to the FY 2026 State General Fund forecast and a $104 million reduction for FY 2027, citing weaker-than-expected individual income tax collections, softer corporate income tax receipts, and some weakness in general sales tax, partly offset by stronger motor vehicle sales tax and higher mineral-related revenues tied to oil prices. The Legislative Fiscal Office presented a somewhat different but broadly similar forecast, with modest net increases to the general fund bottom line in the current year and next year, emphasizing caution on income and corporate taxes and more optimism on sales, severance, royalties, and some other revenue streams. A substantial portion of the discussion focused on the causes of the income tax shortfall, especially withholding and refund patterns after tax changes that lowered rates. Department of Revenue officials explained that withholding tables had been set with a cushion that may be producing larger refunds, and said changing the tables could quickly reduce overwithholding, though the effect would take time to show up. Members also discussed corporate collections, the lingering effects of the franchise tax repeal, the role of settlements and audits, and the extent to which collections are voluntary versus enforcement-driven. The Department of Revenue said corporate collections still had key filing and estimated-payment milestones ahead in May and June, and that refund and audit activity related to the former franchise tax would continue for some time. The conference then adopted the Division of Administration’s FY 2026 forecast, the FY 2027 recurring forecast, and the long-range forecast, along with the proposed inflation rates for the Millennium Trust and parish severance allocation. Members also adopted the incentive expenditure forecast, noting that the reported amount is only the REC-reported portion and that larger tax exemption amounts come off the top before appropriations. The Treasurer reported a General Fund cash balance of about $404.1 million as of May 5, 2026, and an interfund borrowing base of about $9.18 billion, saying cash levels were similar on average to the prior year. The meeting ended with a note that another REC meeting might be needed depending on the May 16 election, and the conference adjourned without objection.

Transcript Highlights:

• <00:12:14.880> divisions<00:12:15.920> um<00:12:16.000> is<00:12:16.240>
• <00:12:19.360> terms<00:12:19.519> of<00:12:19.600> the<00:12:19.760> grants<
• uh that<00:12:20.639> we<00:12:20.800> we<00:12:21.040> have<00:12:21.200> at
• We started<00:12:22.800> um<00:12:23.120> with<00:12:23.680> one<00:12:23.839>
• So we want<00:12:26.160> to<00:12:26.240> make<00:12:26.399> sure<00:12:26.480><

Keywords: 1183, house

Transcript Highlights:

• <00:12:35.760> just<00:12:35.880> for<00:12:36.120> awareness<00:12:36.600><
• > State<00:12:37.720> uh<00:12:37.839> law<00:12:38.079> enforcement<00:12
• > enforcement<00:12:49.360> that<00:12:49.560> this<00:12:49.959> uh<00:12
• <00:12:53.160> laboratory<00:12:53.720> system<00:12:54.480> um<00:12:54.760>
• <00:12:57.680> all<00:12:57.800> 87<00:12:58.399> counties<00:12:59.240>

Keywords: 1183, house

Transcript Highlights:

• <01:12:16.320> that<01:12:16.560> only<01:12:16.880> benefit<01:12:17.280>
• those<01:12:21.040> who<01:12:21.280> are<01:12:21.520> the<01:12:21.679>
• For<02:12:47.760> what<02:12:47.920> purposes<02:12:48.320> the<02:12:48.480>
• speaker<02:12:54.239> and<02:12:54.400> extend<02:12:54.719> my<02:12:54.960>
• Gentleman is<02:12:56.000> recognized<02:12:56.480> for<02:12:56.719> one<02:12:

Keywords: U.S. House of Representatives Floor Proceedings on Wednesday, May 21, 2025, 1012, house, all

Transcript Highlights:

• <00:12:44.959> So,<00:12:45.120> it's<00:12:45.279> not<00:12:45.440> nuanced
• It's<00:12:46.160> very<00:12:46.320> clear<00:12:46.560> and<00:12:46.800> we
• <00:12:46.959> did<00:12:47.120> hear<00:12:47.200> it<00:12:47.360> in
• that.<00:12:48.959> So,<00:12:49.279> did<00:12:49.440> you<00:12:49.600> not
• <00:12:49.760> have<00:12:49.839> a<00:12:50.000> chance<00:12:50.079> to

Keywords: 1187, senate, all

Transcript Highlights:

• Again, the department<00:12:09.640> had<00:12:09.760> a<00:12:10.000> some<00:12
• So,<00:12:20.720> to<00:12:20.840> address<00:12:21.160> those<00:12:21.360>
• :12:23.760> CSF<00:12:24.240> staff<00:12:24.840> who<00:12:25.080> are<00
• Uh<00:12:30.880> we<00:12:31.000> plan<00:12:31.280> to<00:12:31.400> review<
• <00:12:38.080> Uh<00:12:38.320> and<00:12:38.480> we<00:12:38.560> also

Keywords: 1189, house, all

Summary: The committee received an update from the LBA on three audits related to education programs. Christine Young reported that the special education audit is in report-writing, with 44 of 81 observations completed, and that a draft is expected early in the third quarter with a final report later in the summer. She also said the doorway program audit has a draft report with 12 observations, auditee responses were received May 14, an exit conference was held May 18, and the report is now expected to be presented at the June fiscal committee meeting. The bulk of the discussion focused on the education freedom accounts audit and a proposed expansion of scope. Beulah Skids explained that the original audit, required by the 2022 law creating the EFA program, would be expanded to examine whether students were New Hampshire residents at enrollment and throughout participation, and whether records of educational attainment satisfied program requirements. She described the current work, the draft cooperation agreement being developed with the Department of Education and the Children’s Scholarship Fund, and the department’s concerns about the audit period and the term "educational progress," which the LBA said it would revise. The committee discussed that the expanded work would depend on a written agreement giving the LBA access to needed records, policies, and staff, with the Department of Education potentially serving as an intermediary for data access. Members raised concerns about the scope period and data access. Senator Lang asked that the residency review be limited to the 2024-25 and 2025-26 school years, rather than the broader 2022-25 period, because those years captured the major program expansions; the committee appeared to agree, with clarification that the reference was to school years, not fiscal years. Members also discussed reconciliation of EFA funds, noting that the department has agreed to reopen rulemaking to make reconciliation more frequent so unused funds can be returned to the state sooner. Several members expressed frustration that access to data had been delayed, while LBA staff said the cooperation agreement is intended to prevent further roadblocks and that the AG’s office could review it if needed.

Transcript Highlights:

• They would then not just rely on the agency to say, yes, we've done these 12 things.
• These 12 things—say, here's the 12 things. Let me verify that. Let me come in and audit.
• And so they reported in January in 2019 and 2020; those reports were in your packet.
• It is set to expire on January 1st of 2027.
• And so they reported in January in 2019 2020 those reports when your packet.

Keywords: 1183, house

Transcript Highlights:

• In fact, in 2023, the original go-live date was January 2026.
• The January timeline would be your dark blue boxes.
• For the total cost, you had the breakdown on slide 12 on that chart.
• So there's been an 11th amendment, which is technically Amendment 12.
• So that is about 12% state dollars there.

Summary: The subcommittee heard updates on several major technology modernization efforts, beginning with the Department of Financial Services’ Florida PALM project, which is replacing the state’s decades-old FLAIR accounting system. DFS described PALM as a statewide effort affecting all three branches of government, with cash management already live and the remaining financial management, payroll, and data warehouse components still in development. Officials said the project began in 2014, was restructured after a 2022 legislative pause, and is now being recommended for a go-live delay from January 2026 to July 2026. Members asked about governance, staffing, contract structure, cost growth, and maintenance costs; DFS said the contract is deliverable-based, the current amendment would add a net $2.2 million, and post-go-live maintenance is expected to be about $13 million annually under the current contract through July 2027. The Agency for Health Care Administration then updated the committee on the FX Medicaid enterprise modernization program. AHCA explained that federal CMS directed states to move from monolithic Medicaid systems to a modular approach, leading Florida to procure separate vendors for integration services, data warehouse, unified operations, provider services, and claims processing, with pharmacy benefits still to be procured. Officials said the project has spent about $334 million to date, with most costs federally matched, and requested $189.95 million for the upcoming year. They also highlighted a 2024 special assessment that produced 81 recommendations, most tied to staffing shortages, and said the Legislature added 47 FTEs, with 17 currently filled or being filled. Members asked about governance changes, production status, data access, and future technology maintenance; AHCA said some components are operational, the data warehouse is nearing certification, and the agency is working to keep the system adaptable and nonproprietary. The Department of Children and Families presented its Access modernization project, which is replacing a mainframe-based eligibility system used for SNAP, TANF, Medicaid assistance, and related programs. DCF said the six-year, $205 million project is in its third year and has already delivered a new customer portal with mobile access, multi-factor authentication, and fraud protections, while also building a worker portal, document management, community partner tools, and workload management functions. The agency said it is requesting $36.625 million for the next fiscal year, the same as last year, and emphasized that the project has remained on schedule and on budget by breaking work into smaller modules and using strong vendor and staff support. Members praised the project’s progress and asked about cybersecurity testing and the long delay before modernization began; DCF said security requirements were built in from the outset and that the remaining work will focus on moving staff off the legacy mainframe and modernizing notices and back-end processes.

Transcript Highlights:

• For family providers, it's about 12%. Let's talk about why that might be.
• The most significant increase occurred on January 1, 2022.
• That's half-year cost being applied effective January 1, 2026.
• Applied to the SSI grant set to take place on January 1, 2026.
• An additional 12 counties, including Los Angeles, will run out by June 30.

Summary: The joint Assembly Budget Subcommittee hearing focused first on long-term services and supports for older adults, especially the “forgotten/overlooked middle” who earn too much for Medi-Cal but cannot afford private long-term care. Administration witnesses from DHCS, the Department of Aging, and Social Services described Medicare’s limited long-term care coverage, Medi-Cal’s role, the elimination of the Medi-Cal asset test, and ongoing state studies and listening sessions on financing options. Testimony from advocates and researchers emphasized rising homelessness among older adults, the need for better navigation and coordination across health, aging, housing, and social service systems, and short-term policy steps such as share-of-cost reform, housing stability supports, and protecting home- and community-based services. Members highlighted the need for a coordinated, no-wrong-door approach and asked for the most impactful budget investments to address affordability and homelessness risk. The second major topic was the Community-Based Adult Services (CBAS) program. CDA reported that CBAS helps participants remain in the community, that 304 centers operate statewide serving about 42,000 people, and that demand is stable but access gaps remain in some regions. DHCS explained that a 2024 rate increase authorized by SB 159 became inoperative after Proposition 35, and that a separate 10% rate change on the fee schedule was the result of a DHCS system error; the department said it would not require recoupment, though managed care plans may act under their contracts. CBAS providers and advocates warned that reimbursement rates have not kept pace with costs, that several centers have closed, and that clawbacks could trigger more closures. They requested $74.8 million ongoing General Fund to close part of the rate gap and preserve the program, while members expressed concern about closures and the cost savings of keeping people out of more expensive institutional care. The hearing then moved to In-Home Supportive Services (IHSS) and statewide collective bargaining. CDSS reviewed provider recruitment and retention efforts, including electronic timesheets, direct deposit, and the now-completed IHSS Career Pathways program, which trained more than 59,000 providers. CDSS also summarized its AB 102 workgroup report on statewide versus regional bargaining, saying the final report would be sent to the Legislature soon and that statewide bargaining appeared more viable than regional bargaining, though it would require clear statutory scope and major fiscal changes. The department estimated that each $1 per hour statewide wage increase would cost at least $1.3 billion to $1.5 billion annually. Labor advocates argued that IHSS wages, benefits, and training are too inconsistent across counties and called for statewide bargaining, consumer participation, and ongoing state funding. County representatives supported stronger wages but cautioned that counties need protection from new costs and administrative burdens, and consumer advocates warned that moving bargaining to the state could weaken local consumer control and the program’s consumer-driven structure.

Transcript Highlights:

• :01.839> the<00:12:02.480> lease<00:12:03.040> nor<00:12:03.360> the<00:12
• 00:12:08.000> only<00:12:08.639> evicting<00:12:09.600> um<00:12:09.839> the<
• 10.560> lease<00:12:11.040> at<00:12:11.279> the<00:12:11.440> same<00:12
• Um so I<00:12:16.959> don't<00:12:17.200> know<00:12:17.440> if<00:12:17.680>
• :12:16.800> I<01:12:16.800> I<01:12:17.440> uh<01:12:18.480> was<01:12:19.199

Keywords: 1189, house, all

Transcript Highlights:

• WHEREAS, PRESIDENT DONALD TRUMP WAS INAGURATED ON JANUARY 20TH, 2025 AND SUBSEQUENTLY ENACTED SEVERAL
• 27, AND ENDING AT 11:59 PM ON JANUARY 29, 2025.
• DULY FILED WITH AND RECEIVED BY THE FLORIDA DEPARTMENT OF STATE IN TALLAHASSEE THIS 27TH DAY OF JANUARY
• I MOVE THAT SENATE BILL 2B BE PLACED ON THE SPECIAL ORDER CALENDAR FOR TUESDAY, JANUARY 28TH, WITH AN
• JUNE 12, 2024.

Keywords: 999, senate, all

Transcript Highlights:

• Yep.<00:12:12.959> Any<00:12:13.120> further<00:12:13.519> questions<00:12:
• Uh<00:12:18.720> I<00:12:19.040> think<00:12:19.120> it's<00:12:19.519> I
• <00:12:37.200> So,<00:12:37.440> can<00:12:37.680> you<00:12:38.200> just
• <00:12:41.120> Uh,<00:12:41.519> in<00:12:41.839> terms<00:12:42.000> of<
• 12:48.719> a<01:12:48.960> a<01:12:49.199> person<01:12:49.440> to<01:12:

Keywords: 1189, house, all

Transcript Highlights:

• In apparent conflict, Arkansas Constitution, Article 12.
• On the top of that page, the paragraph mentions Constitution, Article 12, Section 5.
• Article 12, Section 5 also covers the part where you can't benefit a certain group.
• From January to March of 2023, we paid the IRS $71,691.99. This covered the principal.
• We, from January to March, we did fundraisers. We worked our tail ends off.

Summary: The committee approved the February 12 minutes and received updates on delinquent municipal water and sewer reports for 2022 and 2023, noting continued progress toward compliance and reinstatement of turnback funds for several cities. It also deferred several matters to the June 4 meeting, including Fargo’s municipal accounting noncompliance report, Jericho’s street-fund misuse issue, Biggers and Holly Grove deferred reports, and a group of private water and sewer reports lacking proper responses. Members then heard and filed a detailed report on the City of Strong, which involved repeat findings on undeposited receipts, improper use of solid waste funds, unsupported spending, late payroll tax payments, accounting control problems, and fund balance issues. Mayor Darrell Howell described corrective steps, including new internal controls, outside CPA assistance, repayment of misapplied funds, budget amendments, and efforts to address the findings; the committee commended the city’s efforts and filed the report. The committee also filed reports on Thornton Waterworks, Calhoun County, Salem, Briarcliffe, Compton Water Association, Montgomery County Regional Public Water Authority, Camden, Johnson County, and Sparkman, while deferring several private water reports and other unresolved items. A major portion of the meeting focused on the Pulaski County Regional Solid Waste Management District and other regional solid waste districts. The audit found issues in Pulaski County involving unapproved payroll items, missing credit card documentation, unapproved contracts, vehicle and cell phone documentation problems, lack of competitive bidding, and weak internal controls; members questioned the district’s practices and deferred the report to June while requesting district representatives appear. The committee also reviewed a statewide report on six regional solid waste management districts, with findings in Pulaski, Faulkner, and Benton counties and no findings in three others; that report was likewise deferred for Pulaski County questions. The meeting ended after a lengthy discussion with Cross County Rural Water System about overdue audit posting, water quality problems, grant-funded improvements, board notice practices, and the broader challenges facing rural water systems, after which the committee filed the report and adjourned.

Transcript Highlights:

• So, thank you<00:12:46.000> for<00:12:46.160> your<00:12:46.399> time<00:12:46.560
• :26.080> uh<01:12:26.480> want<01:12:26.719> the<01:12:27.040> that<01:12
• It should<01:12:31.520> not<01:12:31.679> be<01:12:31.840> assumed<01:12:32.320>
• 12:33.679> uh<01:12:33.840> is<01:12:34.080> going<01:12:34.239> to<01:12
• So what<01:12:36.640> this<01:12:37.040> what<01:12:37.360> this<01:12:37.520>

Bills: HF3642, HF2700, HF3615

Keywords: virtual currency, kiosks, prohibition, customer payouts, cryptocurrency regulation, consumer privacy, data privacy, health data, sensitive data, Minnesota Consumer Data Privacy Act, personal data, data broker, targeted advertising, geofencing, location tracking, health care privacy, patient privacy, consent, minor privacy, children's privacy

Summary: The Commerce Finance and Policy Committee met on House File 3642, which would prohibit virtual currency kiosks in Minnesota. The bill was laid over, and the committee adopted a DE1 author’s amendment. Chair Kaggel and Representative Perryman described the measure as a response to widespread scams using crypto kiosks, especially against older adults and other vulnerable people, and said they would continue working with the Department of Commerce and other stakeholders. Testimony from law enforcement and advocates strongly supported the ban. A St. Cloud police sergeant and a Woodbury detective described cases in which victims lost large sums, said the current safeguards and refund rules are being bypassed, and argued that the kiosks are difficult to investigate because funds move quickly and often overseas. An AARP Minnesota volunteer also supported the bill, saying kiosks are a preferred tool for scammers and that existing protections have not kept pace with the problem. The Department of Commerce said it strongly supports the bill and reported that it has received 120 complaints over three years involving nearly $1 million in reported losses, with 2025 the worst year so far. The main opposition came from CoinFlip’s general counsel, who argued that the problem is fraud generally, not kiosks themselves, and said Minnesota already has consumer protections, including refunds for eligible victims. He urged stronger regulation rather than a ban, citing blockchain analytics, hold periods, and 24-hour customer service as alternatives. Committee members then asked questions about how long kiosks have operated in Minnesota, how many there are, who owns them, and the scale of losses; Commerce said there are hundreds statewide, operated by a variety of companies, and that reported losses are likely undercounts.

Transcript Highlights:

• the very beginning, I think our first hearing of this committee, my severe disappointment in the January
• Through this program, SANDAG has awarded over $12 billion in REAP 2.0 funding to local jurisdictions
• And then simply the timeline we heard about this budget proposal in January.
• So I need to understand why this hasn't been submitted almost as early as the middle of January.
• Nobody coming on issue number 11. 11, we will go to issue number 12.

Keywords: 988, house, all

Transcript Highlights:

• We also ...by Prop 12 also reduces the potential risk of future litigation.
• So my question is really around Prop 12 and the legal challenges.
• We will continue to operate the program as it was outlined in Proposition 12.
• Item number 12 is FTB's May Revise proposal titled Cal File Resources Realignment.
• Item number 12 is FTB's May Revise proposal titled Cal File Resources Realignment.

Keywords: 987, senate, all

Summary: The subcommittee heard several May Revision proposals, primarily from the Department of Food and Agriculture, the Government Operations Agency, the Department of Technology, and the Franchise Tax Board. CDFA presented funding for the animal care program under Proposition 12, a transition away from the state hemp program to USDA oversight by January 1, 2028, ongoing support for agricultural statistics reporting after USDA reorganization, and trailer bill changes to the department’s indirect cost cap. The LAO generally supported the animal care, hemp transition, and statistics proposals, while also urging future review of the Prop 12 funding once litigation is resolved. The indirect-cost-cap language was described as technical and not increasing charges to programs, and it was held open with no objections from the LAO or Finance. The committee also discussed the new federal Workforce Pell program and related Cradle to Career funding and trailer bill language. Finance said the state is still reviewing federal rules and is focusing on basic implementation steps, with the trailer bill assigning eligibility determinations to the California Student Aid Commission, requiring data sharing through Cradle to Career, and prioritizing public institutions first. The LAO urged caution because the federal rules were just finalized and said the Legislature should better define the process and costs before appropriating the $1.3 million requested for Cradle to Career. Members raised policy concerns about limiting the program to certain institutions and about aligning the proposal with pending legislation and broader workforce policy. The Department of Technology presented a $1 million request for Poppy, the state’s digital assistant, to expand a secure GenAI platform for state employees. Members asked detailed questions about data security, model training, bias controls, and whether the system could eventually support local governments; CDT said the system uses state-controlled cloud infrastructure, does not use user data for training, and quarantines new models for review. CDT also sought provisional authority for the Middle Mile Broadband Initiative to cover possible operating shortfalls while the network is still being built; the LAO remained concerned about broad spending authority, and several members questioned the revenue assumptions and oversight. FTB then proposed retaining a smaller set of CalFile resources after the federal Direct File program was discontinued, with the LAO saying the reduced staffing level was broadly reasonable but still worth legislative scrutiny. The committee also began hearing the administration’s revenue proposals, including a permanent limitation on business tax credits and a tax on electronically delivered prewritten software, with the LAO generally supporting the goal of raising ongoing revenue but recommending changes to the software proposal’s exemptions and business-use treatment.

Transcript Highlights:

• or responding<00:12:27.760> to<00:12:27.880> a<00:12:28.000> request<00:12:28.600
• House<00:12:30.200> File<00:12:30.440> 4110<00:12:31.240> provides<00:12:31.760>
• > to<00:12:39.440> the<00:12:39.560> needs<00:12:39.839> of<00:12:39.920>
• We<00:12:49.320> really<00:12:49.560> appreciate<00:12:50.080> the<00:12:50.160>
• care<00:12:54.360> settings<00:12:54.760> and<00:12:54.839> its<00:12:55.000

Bills: HF4110, HF2113, HF4569, HF4414

Keywords: workplace regulations, employee rights, meal breaks, rest breaks, exemptions, paid leave, small employers, employment law, Minnesota Statutes, workforce development, HF4569, Minnesota Paid Leave Law, protected leave, seasonal employee, seasonal worker, hospitality, hospitality industry, DEED, Department of Employment and Economic Development, employer certification

Transcript Highlights:

• If passed, set gill net permits remain fully transferable up until January 1, 2027.
• Okay, I know we've got a big group and we're looking to stop at 12.
• I would say the three to 12 hours is very, very extreme. These hounds are very well trained.
• Typically it's not 12 hours like was experienced. How long that is in between can vary.
• Typically, it's not 12 hours like was expressed.

Summary: The committee heard a long agenda of water, parks, transportation, species protection, and fisheries bills. AB 430 would require the State Water Resources Control Board to publish an economic and environmental impact study when emergency water regulations are extended over multiple years; the author and supporters from agricultural and water groups said it would add transparency without limiting emergency authority. AB 1139 would expand a CEQA exemption to let county park agencies open existing roads and trails for non-motorized recreation, with supporters emphasizing access to nature and opponents warning about impacts to sensitive habitat, tribal resources, and fire risk. AB 929 would temporarily exempt small community water systems and managed wetlands from certain SGMA pumping reductions and fines; supporters said it would protect vulnerable communities and wetlands, while farm and water coalition opponents argued it would undermine basin-wide groundwater management and shift burdens to other users. AB 1225, creating an Accessibility Advisory Committee for State Parks, drew broad support and passed unanimously. The committee also heard AB 514, which would encourage local water suppliers to develop emergency water supplies for drought and service interruptions; it passed with broad support, though one member cautioned against using scientific research as a loophole. AB 550 would let developers seek incidental take permits for species under consideration for listing, aimed at reducing delays for clean energy projects; environmental groups supported the goal but asked for clearer standards, limits on using research as mitigation, and a fee provision, and the bill passed as amended. AB 697 would authorize an incidental take permit for the State Route 37 interim project in Solano and Marin counties, balancing congestion relief and habitat restoration; supporters stressed long commutes and urgent restoration deadlines, while opponents raised climate, sea-level-rise, and tribal concerns. The bill passed, with some members noting they would continue to work on the measure. Other measures discussed included AB 975, which would give Sutter County a narrow, temporary exemption from streambed alteration agreements for certain damaged small bridges and culverts; county officials described repeated flood damage and long permitting delays, and the bill passed as amended. AB 1056 would phase out transferability of set gillnet permits after 2027, allowing only a final family transfer; supporters framed it as a gradual response to bycatch concerns, while fishing industry opponents said it would unfairly target an existing fishery and set a bad precedent. The committee also took up AB 1146, described by the author as a response to politically motivated water releases; supporters from conservation and water organizations backed the bill. Several bills were voted out to Appropriations, some were left open for later action or add-ons, and the committee repeatedly noted it was working through the agenda without a quorum early in the hearing.

Transcript Highlights:

• In addition, we have 12 items that are on the agenda for non-presentation.
• the Legislature has made over a number of years that are also siloed and spread across five, six to 12
• We've done coordination and... ...spread across five, six to 12 agencies.
• According to data, from May 2024 to January 2025, 142 community-based organizations conducted 1.35 million
• Implementation of the K–12 schools and local community college public education facilities modernization

Summary: The subcommittee held an informational budget hearing covering several GovOps, CDT, CPPA, and DGS items. GovOps reported that most deliverables under the Governor’s generative AI executive order have been completed, including guidelines, procurement tools, community-impact guidance, and a new project delivery lifecycle for Gen AI projects; one workforce-related deliverable remains. Members and public commenters raised concerns about privacy, labor impacts, and how the state will explain and oversee Gen AI use. The committee also heard a proposal to create a California Education Interagency Council with $5 million ongoing and 16 positions to coordinate workforce and education systems; LAO questioned duplication and recommended limited-term funding, while supporters said a neutral convening body is needed to improve coordination and student outcomes. GoServe presented the College Corps budget proposals, describing the program as a paid service and career-development opportunity for undergraduate students that helps reduce college costs while supporting communities through tutoring, food insecurity work, climate and disaster response, and other service. The administration sought one-time and ongoing funding to expand the program to more campuses and students, while LAO objected to the high administrative costs and recommended rejection. Several students and alumni testified that College Corps provided financial support, professional experience, and career pathways. The committee also heard a $5 million proposal for a Belonging Campaign to address loneliness and social isolation through research, outreach, and local grants; LAO said the proposal lacked clear goals and measures, while supporters said the effort is needed for youth, seniors, and community resilience. The Department of Technology updated the Middle Mile Broadband Initiative, saying construction is underway on the statewide open-access network and the project remains on track for the 2026 deadline, though LAO noted a required business plan had not yet been submitted. The California Privacy Protection Agency presented its Delete Act implementation request for the DROP platform, which will let consumers request deletion of personal information held by data brokers; LAO flagged oversight concerns because CDT is both developing the system and involved in project support. Public commenters from business groups urged caution on CPPA’s rulemakings, warning of compliance costs and job impacts. The Department of General Services then discussed implementation of Proposition 2 school facilities bonds, requesting staffing and administrative funding to manage the new bond program and continue school facility work. Officials said the program can also help districts affected by the January wildfires, including interim site funding and expedited assistance. Finally, DGS requested authority and positions to operate Building 18 for labor-agency tenants relocating from older Capitol Mall space; SEIU Local 1000 criticized the state’s four-day return-to-office policy and said telework has improved productivity and retention. No formal votes were taken; the hearing concluded after public testimony and member questions on each item.

Transcript Highlights:

• It was not approved by CDT in time for inclusion in the Governor's January 10 proposed budget.
• Because this was put down in January. Is that correct? March.
• We have obviously considered $12 billion worth of options across the entire budget.
• The $767 million is not part of what is prescribed to close the $12 billion deficit.
• That is over and above the $12 billion that are outlined in the budget summary. Thank you.

Summary: The subcommittee heard an informational update on the state’s generative AI implementation and related oversight. Administration officials said several proof-of-concept projects have moved into minimum viable product phases, including work at CDTFA and Caltrans, and that CDPH has a May Revision request for up to $8 million to scale up its healthcare facilities inspections project. The Legislative Analyst’s Office urged the administration to publish a report on lessons learned from each POC and recommended limiting the new generative AI approval process to a pilot through the first two rounds of projects, with continued monthly meetings and stronger legislative oversight. Members pressed for more transparency and questioned why the CDPH request was not included in January; the administration said the cost estimate was not available then and that only one project is seeking additional resources beyond existing departmental budgets. The committee then reviewed a proposed $400 million loan from the Labor and Workforce Development Fund to the General Fund. Finance and the Labor Agency said the fund has grown because civil penalty revenues have risen sharply, and the loan would be repaid in 2029-30 with provisional language allowing earlier repayment if needed. The LAO agreed the fund could support the loan but warned that recent PAGA reforms may reduce future revenues. Public commenters, including labor and community groups, argued the money should instead support labor-law enforcement and outreach programs such as CWOP, and urged rejection of the loan. Members also heard a Department of Industrial Relations request for $19.1 million for phase two of Public Works Information Technology System Enhancements, which officials said will support labor-law enforcement and apprenticeship registration. The department said the project was delayed because a prior procurement did not result in a contract award and that completion is now expected in October 2026. The committee then took up an EDD Next reappropriation technical adjustment to extend UI fund spending authority through June 30, 2026; the LAO said the request was fine but again raised concerns about oversight of the larger modernization effort, which EDD said now totals more than $660 million and is expected to continue through 2029. Finally, the committee discussed DGS’s request for new parking facilities near the May Lee Building and a trailer bill shifting statewide telework policy language from DGS to CalHR while also expanding NDI eligibility for certain CEA employees. The LAO said the telework trailer bill should likely go through the policy committee process instead of budget, and union and employee witnesses strongly opposed it, arguing it would undermine bargaining rights and could be used to narrow telework. In a separate item on the governor’s return-to-office order, administration officials said departments are being directed to move to a four-day in-office expectation starting July 1, 2025, but they had no statewide cost estimate yet because departments are still assessing vacancies, exemptions, and space needs. Members criticized the lack of analysis and said the state should have clearer numbers before moving forward.