Transcript Highlights:

• there concerns then that because of the lack of potential cash flow that there will be lack of maintenance
• there concerns then that because of the lack of potential cash flow that there will be lack of maintenance
• money to help the capitalization and improvements that are needed because of the deferred maintenance
• When it comes<00:42:41.240><c> to</c><00:42:41.320><c> maintenance</c><00:42:41.760><c> and</c><00:42
• :41.840><c> maintaining</c><00:42:42.320><c> a</c> comes to maintenance and maintaining a comes to maintenance

Committee: Senate Housing and Homelessness Prevention

Transcript Highlights:

• programs that transit providers apply for; some are specific to operating, some are specific to maintenance
• So the larger of those two pots to the Metropolitan Council, 95%, was for transit operations, maintenance
• The larger of those two pots to the Metropolitan Council, 95%, was for transit operations, maintenance
• activities uh is authorized maintenance activities uh is authorized by<00:40:37.119><c> the</c><00:40
• um on line 212 um so for the maintenance um on line 212 um so for the last<00:53:33.839><c> bium</c>

Transcript Highlights:

• sustainable design, more sustainable material, and more sustainable practices in our construction and maintenance
• You have these MOUs and these delegated maintenance agreements.
• Yeah, so the delegated maintenance agreements that we’re entering in is part of our statewide effort
• The delegated maintenance agreement that you reference would help the locals to come in and do some work
• kind of solutions, and we're looking at Adopt-the-highway partners, maintenance kind of solutions and

Committee: Senate Rules

Summary: The Senate Committee on Rules met to consider several items, beginning with gubernatorial appointments not required to appear. The committee approved multiple appointments on 3-2 and 5-0 votes, including members to the Board of Behavioral Sciences, the Contractors State License Board, and the Medical Board of California. Members also approved a bill referral item, a rule waiver request to suspend SR 55 for guests on the Senate floor during an adjourn-in-memory for former President Pro Tempore John Burton, and floor acknowledgment items, all by 5-0 vote. The committee then heard the required appearance of Dina El-Tawansy for Director of the California Department of Transportation. In her opening remarks, she emphasized Caltrans’ priorities of safety, equity, climate resilience, economic prosperity, workforce development, and multimodal transportation. Senators questioned her on a range of issues, including impacts from federal and state rules affecting immigrant truck drivers, the Highway 58 truck climbing lane project, DBE reevaluation under new federal guidance, asphalt recycling and waste disposal, climate-related damage to infrastructure, and the future of transportation funding as gas tax revenue declines. El-Tawansy said Caltrans would prioritize emergency and safety projects, continue work on the Highway 58 corridor, and help DBEs through a reevaluation process and outreach efforts. She described ongoing climate adaptation work, including vulnerability assessments, vegetation management, and corridor studies such as Route 37 and LOSSAN, and said the department is researching road user charges through pilots and national collaboration. She also discussed small-business programs, local hiring, toll lane agreement consistency, and efforts to address litter and homelessness on Caltrans property through delegated maintenance agreements and new staff positions. After public testimony from numerous transportation, construction, local government, labor, and technology organizations in support of the nominee, the committee voted 5-0 to advance El-Tawansy’s appointment to the full Senate floor for confirmation. The meeting then adjourned.

Transcript Highlights:

• It requires sales presentations or documents to disclose to what extent system maintenance and repairs
• are included and to which repairs and maintenance the customer is responsible to pay.
• , and, and sign on the dotted line and then they're stuck with the cost and no maintenance.
• Contracts that hide important details on cancellations, maintenance, and resale of homes.
• It is so successful that when it rains, it breaches the system and they have to do maintenance on it,

Bills: SB1137 , SB1200 , SB1419 , SB1447 , SB1560 , SCM1004

Committees: House Natural Resources, Energy & Water , House House Natural Resources, Energy & Water Committee of Reference

Keywords: underground utilities, utility locating, dig safe, call before you dig, excavation safety, damage prevention, one-call center, locate request, white lining, large project coordination, buried infrastructure, subsurface utilities, utility marking, locator wire, locator strip, interactive positive response system, landlord duties, apartment community, mobile home park, sewer line

Transcript Highlights:

• Senators, this is the fiscal year 2027 maintenance appropriation bill for Health and Human Services.
• Health and Human Services is the way we've grouped some maintenance budgets around.
• You're not going to see that in a budget, in a maintenance bill.
• Again, this is a maintenance budget. This has been looked at by JFAC individually budgets.
• And the decision is being made in this maintenance bill to...

Transcript Highlights:

• So the next part of that, I noted, are our operations and maintenance estimates for IBR.
• , maintenance of vehicles, electricity and fuel, if it were buses, vehicle maintenance, the regular inspections
• , facilities maintenance.
• If it were buses, vehicle maintenance, the regular inspections facilities maintenance.
• Can you talk about who will pay for the transit operations and maintenance on the Washington side?

Committee: Joint Joint Oregon-Washington Legislative Action Committee

Summary: The Joint Special Session Committee on the Interstate 5 Bridge met jointly with the Washington-Oregon Legislative Action Committee and adopted its proposed committee rules. Program staff then provided updates on the Interstate Bridge Replacement (IBR) project, saying the work remains in the supplemental environmental impact statement process, with a final SEIS and amended record of decision expected in early 2026 before construction can begin. Staff reported progress on Section 106 historic preservation work, a NOAA Fisheries biological opinion, and an upcoming Coast Guard navigational impact report that will help determine whether the bridge will be a fixed or movable span. They also described extensive outreach, tribal consultation, and architectural workshops that produced non-final visualizations and guidance for the bridge, corridor, shared-use paths, walls, lighting, and landscape treatments. Members pressed staff on schedule delays, rising costs, accessibility, and whether community input would change the design. Senator Pham questioned the repeated slippage in the environmental timeline and the effect on taxpayer costs; staff said the process is complex, that some steps are outside the program’s control, and that they are working toward a 2026 record of decision. Representative Bostert Davis urged the program to emphasize functionality, safety, efficiency, and economy over aesthetics. Representative Tran asked about accessibility on the Vancouver side, and staff said the shared-use path height is constrained by the BNSF rail line but that they are working with local partners to improve connections and that public comments have already influenced the design. Representative Lay asked about the movable-span option and cost impacts; staff said a movable span would likely add more than $400 million but they still expect to keep the overall construction start in 2026. The committee also received funding and tolling updates. Staff said the program has committed state and federal funding in place, including the initial state contributions, Washington’s and Oregon’s larger commitments, and federal grants totaling about $2.1 billion, while tolling is expected to contribute roughly $1.1 billion to $1.6 billion depending on the final plan. They said the updated cost estimate is being developed now using a risk-based process and should be ready for the committee in December. On the transit side, staff outlined the Federal Transit Administration Capital Investment Grant process, including project development, engineering, and a target full funding grant agreement in 2028, and said Oregon’s transit operations and maintenance share is committed through TriMet while Washington-side funding is still being worked out. The tolling agencies then described Level 3 traffic and revenue work, possible toll scenarios, exemptions and discounts, and a planned 2027 start for pre-completion tolling. Public testimony followed, with supporters urging the project to move ahead and critics arguing it is behind schedule, underestimating costs, and facing uncertain toll and federal funding assumptions.

Transcript Highlights:

• Chris Stewart of the maintenance division, he's the newest maintenance specialist. Thank you, sir.
• Chair, um, presenting the Exemplary maintenance report update. Um, I'll make this brief.
• Um, this is in reference to NMAT code 6.27.3.11, um, regarding preventive maintenance programs, which
• OK, I just, cause I know their maintenance director took on another job, so I'm kind of in shock that
• That, that reminds me of the distribution that I asked about earlier that money can go to maintenance

Transcript Highlights:

• </c> funds can't be used for uh maintenance funds can't be used for uh maintenance or<04:34:01.039><c
• </c><04:51:48.400><c> cost</c> for the operating and maintenance cost for the operating and maintenance
• </c><04:55:49.240><c> um</c> for Dot's operations and maintenance um for Dot's operations and maintenance
• </c> up with um um operations and maintenance up with um um operations and maintenance costs<05:01:02.718
• maintenance needs particularly preventative<05:03:15.400><c> maintenance</c><05:03:15.920><c> needs<

Summary: The Division 2 Finance Committee heard an overview and budget presentation from New Hampshire Fish and Game, led by new Executive Director Stephanie Simi and Business Division Chief Kathy Leonti. The agency described its mission to conserve and manage fish, wildlife, and marine resources, and emphasized growing pressures from disease, climate impacts, habitat change, and increased public demand. Simi said the department is largely funded by hunting and fishing license revenue and federal grants, is reviewing staffing and internal processes, and faces critical needs including permanent funding for environmental review staff, infrastructure and IT modernization, and possible service reductions if additional support is not found. Members asked about specific program and policy issues, including chronic wasting disease in deer, hemorrhagic disease in rabbits and hares, moose population decline, and a proposed bait-disease bill. The department said it is actively monitoring diseases and did not see a need for the bait bill at this time. Legislators also discussed the Hike Safe program, which the department said has grown from an expected $100,000 annually to more than $300,000, and a possible boating version of that program, which the department said remains under consideration but would involve complex logistics and multiple agencies. Questions were also raised about rescue costs, out-of-state hikers, and whether boat registrations could be used as a revenue source; Fish and Game said boat registration is handled by the Department of Safety, though the department receives $5 per registered boat for the public boat access program. The budget discussion focused on revenue projections, use of unrestricted Fish and Game funds, and dependence on federal reimbursements. Leonti said the department met the governor’s general fund target but not the Fish and Game fund target without using surplus unrestricted funds, leaving only about $100,000 in the fund by the end of the biennium. She said the budget uses more than $18 million in Fish and Game funds annually against about $14 million in unrestricted revenue, and that five of 193 full-time positions remain unfunded. The department warned that if federal grants were halted, it could cost about $5 million over five months and force the Fish and Game fund to cover the gap. Committee members also requested that future presentations be sent electronically in advance, and the department agreed to do so.

Transcript Highlights:

• Sorry, Senator, I would consider it maintenance, and so if maintenance is okay, then so be it.
• Sorry, Senator, I would consider it maintenance, and so if maintenance is okay, then so be it.
• Sorry, Senator, I would consider it maintenance, and so if maintenance is okay, then so be it.
• Sorry, Senator, I would consider it maintenance, and so if maintenance is okay, then so be it.
• Sorry, Senator, I would consider it maintenance, and so if maintenance is okay, then so be it.

Committee: Senate Environment, Climate, and Legacy

Transcript Highlights:

• </c><00:18:39.240><c> Capital</c> significant Capital maintenance Capital significant Capital maintenance
• <00:18:41.679><c> the</c> maintenance is really keeping the maintenance is really keeping the transit
• </c> have not kept up with their maintenance have not kept up with their maintenance obligations<00:18
• Chair, Representative Jones, the capital maintenance is kind of widespread.
• Chair, Representative Jones, the capital maintenance is kind of widespread.

Bills: HF5

Committee: House Transportation Finance and Policy

Keywords: tax modification, transportation funding, electric vehicle tax, Social Security subtraction, retail delivery fee, motor vehicle registration, state budget, transportation policy

Transcript Highlights:

• Again, all total in over $37 million in planned maintenance, and even with limited service, that's an
• Again, all total in over $37 million in planned maintenance, and even with limited service, that's an
• </c> plans which are basically maintenance plans which are basically maintenance costs<00:04:12.079><
• It has low ridership, huge operating subsidies, and ridiculous maintenance costs.
• </c><00:43:17.280><c> cost</c> operating and cost and maintenance cost operating and cost and maintenance

Summary: The committee took up House File 269 and House File 749 together, both aimed at ending Northstar Commuter Rail service. The bill author described HF 269 as directing the Metropolitan Council and MnDOT to request a federal waiver and discontinue Northstar operations, with HF 749 setting performance requirements that would trigger a similar termination request. Supporters argued Northstar has low ridership, high operating subsidies, and large maintenance costs, and said the agencies now agree with the intent to terminate the line and possibly replace it with bus rapid transit. The chair moved HF 269 to the general register while also laying HF 749 over in committee, and testimony was heard on both bills at once. Testimony split sharply. Supporters of termination, including the bill author and Annette Meeks, said Northstar has consistently underperformed ridership projections, has required large taxpayer subsidies, and should be ended rather than extended. Opponents, including Jesse Cook, Darwin Scherlan, Joel Mueller, Katie Nicholson, and Annie Buckle, argued the line still serves riders, workers, and communities, that low frequency and underinvestment are the real problems, and that the state should improve service rather than shut it down. Several opponents emphasized Northstar’s role for commuters, special events, and future growth, especially the St. Cloud corridor. Met Council Chair Charlie Zelle and MnDOT Commissioner Danenberger said they support carefully evaluating alternatives to commuter rail and acknowledged the subsidy is not acceptable, but they also said the agencies are working with the federal government and BNSF on possible next steps. Zelle said the agencies believe bus service could provide more frequent and direct service, and when asked directly, he confirmed they are in favor of terminating Northstar and replacing it with bus service if feasible. No final disposition beyond the motion on HF 269 and the laying over of HF 749 was recorded in the excerpt.

Transcript Highlights:

• Well, we have transferred maintenance responsibility, which is a huge burden.
• It's really the maintenance that is the major burden.
• Well, we have transferred maintenance responsibility, which is a huge burden.
• </c><00:28:01.600><c> responsibility</c> transferred maintenance responsibility transferred maintenance
• </c> roadway it's really the the maintenance roadway it's really the the maintenance is<00:28:11.120>

Summary: The joint hearing covered HB 1484 on transit-oriented development and HB 157 on transportation. For HB 1484, testimony included a request from the Hoi Community Development Authority to be removed from the measure while offering to assist if the transit-oriented development law is implemented, along with testimony in opposition and support from several individuals. The committees later recommended HB 1484 be passed with amendments, including an HD1, a defective date, deletion of a reference to section 225 on page 11, adoption of H-CDA’s proposed amendment, and related committee report changes. The vote was adopted in both committees, with Representatives Cochran and Lee excused and Representative Mora voting with reservations. HB 157 concerned the transfer and acceptance of roads in the Villages of Kapolei. HHFDC supported the bill’s intent and explained that the roads were originally self-permitted, the city had not accepted dedication, and HHFDC has been maintaining and upgrading the roads under an MOA that requires improvements to city standards before transfer. Testimony from the Villages of Kapolei Association and others described ongoing problems with non-emergency police services, illegal parking, abandoned vehicles, and the need for city enforcement on roads that are open to the public. Committee members asked about the current holdup, the possibility of transferring roads in segments, and whether a cash settlement could resolve the issue; HHFDC said it was working in segments and that the city had mentioned a $60 million figure. The committees then recommended HB 157 pass with amendments, noting they were awaiting an Attorney General opinion on authority to compel the transfer and that the matter would continue to the Committee on Water and Land. The Transportation Committee also heard several additional bills. HB 1083, concerning vessels in state commercial harbors, drew support from the Department of Transportation and some industry groups and opposition from charter operators; HB 1159, which would require compliance with harbor master evacuation orders and increase penalties, drew DOT support and opposition from multiple vessel operators, who argued the bill was too broad and should define emergencies more clearly and use tiered penalties. HB 58, limiting civil liability for firefighting at commercial harbors, received DOT and Maritime Group support. HB 1165, on county disposal of ocean-bordering property and state highway acquisition, received DOT support. HB 938, a broad motor vehicle franchise and EV-related bill, drew support from the Hawaii Automobile Dealers Association and the Motor Vehicle Industry Licensing Board, but strong opposition from the Alliance for Automotive Innovation, Tesla, Rivian, Scout Motors, and others; opponents argued it would restrict direct-to-consumer EV sales and innovation, while dealers said the bill was too broad and needed further stakeholder work. No final votes were taken on the Transportation Committee’s remaining measures in the portion provided, and the joint hearing was adjourned after decision-making on HB 1484 and HB 157.

Transcript Highlights:

• Senate File 68, Water Districts Funds for Maintenance Projects, sponsor Water.
• Senate File 68, water districts funds for maintenance projects.
• </c> through2 school facilities maintenance through2 school facilities maintenance and<00:23:36.320><
• Senate file for maintenance projects.
• </c><00:37:30.400><c> and</c> facilities maintenance and facilities maintenance and appropriations<00

Transcript Highlights:

• . $78 million is in the deferred maintenance category in that FCA report.
• We're one of the highest state agencies that has a deferred maintenance number that is in that crisis
• </c><00:47:44.520><c> number</c><00:47:44.800><c> that</c> has a deferred maintenance number that has
• a deferred maintenance number that is<00:47:45.599><c> um</c><00:47:46.160><c> in</c><00:47:46.359><
• but they do have and regular maintenance but they do have a<00:49:29.720><c> shelf</c><00:49:30.079>

Committee: House Capital Investment

Transcript Highlights:

• a city or town's population exceeds this population threshold, the transfer of installation and maintenance
• The city or town is then responsible for installation and maintenance responsibilities at its own expense
• Cars currently pay TBD's fees for local road maintenance, and trucks over 6,000 pounds do not.
• Our city uses the TBD fee for pavement preservation and maintenance, as there's limited funding for these
• Our city uses the TBD fee for pavement preservation and maintenance, as there's limited funding for these

Committee: House Transportation

Transcript Highlights:

• years, 30 years down the road, those are not coming back to the state for more money simply for maintenance
• purposes, and making sure that there is a maintenance plan in place for all of these projects.
• of what we did while I was mayor in Shakopee for making sure that we have a plan in place and a maintenance
• last year that Chair Lee had that had a fund that was in place and putting aside money for capital maintenance
• It sets up a capital maintenance plan and it requires that at future times when people come back to the

Committee: House Elections Finance and Government Operations

Transcript Highlights:

• park and then seek to increase its value by raising the rent, adding fees, and cutting back on maintenance
• place and clarifies the community owner's responsibility for things like tree care and utility maintenance
• park and then seek to increase its value by raising the rent, adding fees, and cutting back on maintenance
• themselves and their investors. ...value by raising the rent, adding fees, and cutting back on maintenance
• place and clarifies the community owner's responsibility for things like tree care and utility maintenance

Transcript Highlights:

• How about the loss of the maintenance and management positions?
• I'm particularly concerned about the deferred maintenance.
• What's going to be the impact on deferred maintenance?
• schedule, and so things could fall into deferred maintenance.
• But immediately, I don't think there would be an impact on deferred maintenance.

Summary: The meeting began with a lengthy opening discussion with Secretary Karen Ross of the Department of Food and Agriculture, who reviewed the department’s proposed budget, emphasized California agriculture’s record output, and highlighted major priorities including climate-smart agriculture, groundwater management, local food systems, farm-to-school, food hubs, invasive pest prevention, bird flu response, and food safety. She also warned about federal budget cuts, especially at USDA and FDA, and discussed market access challenges abroad, rising input costs, labor shortages, and the need for automation and workforce training. Members raised questions about the future of Farm to School, the California Nutrition Incentive Program/Market Match, local food procurement, and how to better connect farmers to schools, food banks, and food hubs; Ross said the department had strong evidence the program benefits small farms and Title I schools and noted continued interest in building out local food infrastructure. The committee then took up item one on eliminating vacant positions at the Departments of Fish and Wildlife, Parks and Recreation, and Food and Agriculture. The Legislative Analyst’s Office explained that the Governor proposed eliminating 6,000 vacant positions statewide, with the Joint Legislative Budget Committee previously rejecting 650 of them, including 174 in these three departments. LAO and Finance said the vacancies represented a source of budget flexibility, but warned that eliminating them could create program impacts; LAO recommended retaining the special-funded positions at Fish and Wildlife and Food and Agriculture, while weighing the General Fund positions against other priorities. Finance argued the reductions were part of a broader budget-resiliency exercise and that departments could reclassify or shift vacancies to higher priorities. Members focused heavily on the practical impacts of the cuts. Assemblymember Petrie-Norris argued that Fish and Wildlife staffing shortages were already slowing permits needed for housing, clean energy, water, and transportation projects, and questioned the value of saving relatively small amounts of money. Fish and Wildlife officials said the department had prioritized mission-critical work and could still meet permitting obligations, but acknowledged limited-term staffing constraints. State Parks said the proposed ranger and maintenance cuts would not have immediate effects but could slow maintenance and eventually worsen deferred maintenance. Food and Agriculture said some of the eliminated positions supported early pest detection and eradication, but that the department believed it could still meet its mandate and reclassify positions if needed. The chair and several members signaled concern about the Fish and Wildlife and Parks cuts, while also noting the broader need for budget reductions. The committee then moved to item six, hearing an overview from the Governor’s Office of Land Use and Climate Innovation. Staff described the office’s role in CEQA implementation and said the budget requests were baseline funding to maintain existing functions, including IT services and administrative/legislative support, rather than new programs. The chair asked the presenters to move quickly through background material so the committee could get to questions, and the item began with no votes taken during the meeting.

Transcript Highlights:

• Historically, the maintenance was supported through gas tax revenues.
• This amendment reflects our top priority in the budget of preservation and maintenance.
• President, this fits within our priority of maintenance and preservation.
• We put more money into maintenance.
• We're also investing in this budget in the maintenance of our ferries.

Bills: SB6061 , SB6234 , SB6170 , SB6176 , SB6182 , SB6335 , SB5647 , SB6047 , HB2367 , HB2606 , SB5998 , SB6005 , SB6003 , SB6129 , SB6225 , SB6228 , SB6231

Summary: The Senate met on February 23, 2026, opened with the usual roll call, pledge, prayer, and approval of the previous journal. Members then adopted Senate Resolution 8698 recognizing piano teachers, with several senators sharing personal remarks about their own teachers and the role of music education in families and communities. Guests from the Washington State Music Teachers Association and the National Guild of Piano Teachers were recognized in the gallery. The chamber then moved into budget debate, considering a series of amendments to the operating budget. Several proposals focused on housing costs, local planning, utility rates, and state spending restraint. Amendment 0772, which would have created a housing-related task force and increased funding, was rejected after debate over housing affordability and regulatory costs. Amendment 0785, restoring growth management planning funding for local governments, was also rejected. Amendment 0791, directing the Department of Commerce to study the effects of climate and clean energy laws on utility costs, and Amendment 0769, related to grid capacity and clean energy investments, were both adopted. Other amendments drew sharper partisan debate. Amendment 0798, which would have reduced the Supreme Court from nine justices to five and redirected savings to public defense, failed. Amendments 0794 and 0795, seeking funding for ballot measure costs tied to initiatives, also failed. Amendment 0799, intended to redirect Pacific Tower lease savings to developmental disability services, was rejected after discussion of the building’s current public uses. Amendment 0773, capping state spending growth and tying it to median wage growth, failed on a roll call vote, while Amendment 0777, addressing concurrent use of paid family and medical leave and sick leave by state employees, also failed after extended debate. Later, Amendment 0776 on tort liability reporting was adopted, as were Amendment 0758 creating a DSHS work group on community-based services for people with intellectual and developmental disabilities, and Amendment 0786 was introduced to reduce cash and food assistance work-related funding, with debate beginning before the transcript ends.

Transcript Highlights:

• We will take steps to address our massive backlog of critical deferred maintenance of our facilities
• after deferred maintenance.
• And I know that Senator Archeletta talked about deferred maintenance, and that's an issue everywhere,
• Deferred maintenance is an issue everywhere, but I think more acute for CSU.
• We would use it to address both deferred maintenance and some capital outlay.

Summary: The Senate Budget Subcommittee on Education held its first 2026 hearing on higher education, focusing on UC and CSU system updates, student housing, enrollment, and core operations. In opening remarks, the chair noted recent state fiscal stress, the prior rejection of proposed UC/CSU cuts, and the Governor’s proposed 5% ongoing compact increases. UC President James B. Milliken and CSU Chancellor Mildred Garcia described the systems’ public value, research and workforce roles, and the impact of federal actions on grants, financial aid, and campus operations. Both also emphasized Title IX and civil rights efforts; CSU said it had implemented nearly all state auditor recommendations and was on track to finish the remaining one, while UC highlighted its systemwide civil rights and Title IX offices. Both leaders said federal investigations, grant cancellations, and litigation demands were consuming staff time and money, with UC reporting more than 200 grants lost or affected and CSU citing more than $161 million in lost grants and more than 1,600 grants affected overall. The committee then heard on student housing. Finance and LAO staff said the Governor’s budget made no major new housing proposal but continued support for the Higher Education Student Housing Grant Program. CSU reported 12 supported projects that will add about 5,047 beds, most below market rate, with four already open and seven more expected this year; it also said it has about 68,000 beds systemwide, a 92% occupancy rate, and ongoing emergency housing support. UC said the program has supported seven UC projects and two joint community college projects, adding more than 7,000 beds total, but nearly 10,000 UC students were on housing waitlists at the start of fall 2025. UC asked for additional state support, including possible bond funding and a statutory change to allow UC participation in public-private partnership housing projects. Members discussed rapid rehousing, student homelessness, faculty and staff housing, and community college housing partnerships, with both systems describing existing emergency beds and support services. On enrollment, LAO recommended maintaining UC’s 2026-27 resident undergraduate target, funding enrollment growth separately from base increases, pausing the nonresident reduction plan, and holding UC flat in 2027-28. For CSU, LAO recommended revising the 2026-27 target downward to reflect current projections, funding growth separately, and holding 2027-28 flat. CSU said it had rebounded from COVID declines, now exceeds its funded target by about 3,000 FTE, and is shifting about $89 million and 10,000 FTE spots from lower-demand campuses to higher-demand ones while developing turnaround plans for seven campuses with sustained enrollment declines, including Sonoma State. CSU also described direct admissions, transfer success pathways, and new degree programs aimed at workforce needs. UC said it had surpassed its compact enrollment goals, planned to add 2,721 California undergraduates in 2026-27, and was seeking $5.5 million for health professional programs. Members raised concerns about underprepared freshmen, K-12 alignment, nonresident caps at UC San Diego, deferred maintenance, ROTC access, and the need for stronger turnaround plans and teacher preparation pipelines. The final item on core operations addressed the Governor’s proposal to defer 3% base funding again, moving the one-time deferral to 2027-28 and allowing short-term zero-interest loans to cover it.