Transcript Highlights:

• Chair, those are all the IIA requests. Any questions on D1-2 from members? The IIA requests.
• The department also requests. The IIA requests. Any questions on D1-2 from members? Any questions?
• The department also requests. The transfer requests. Members, any questions on E1 through 3?
• The department also requests. This is a reallocation of resources request.
• Chair, can we hold this one?

Summary: The PEER Review Subcommittee met to consider a large agenda of budget, appropriation, transfer, and contract items. Members approved temporary appropriation requests for several agencies, including the Auditor of State, Department of Education, and Labor and Licensing; ARPA return requests from Workforce Services; Infrastructure Investment and Jobs Act requests for State Police and Agriculture; restricted reserve transfers for teacher scholarships, school facilities, and economic stimulus; a Commerce reallocation of positions and spending authority; cash fund, budget classification, overtime, and pay plan requests; and 17 methods of finance items for universities and other agencies. Most items were approved without objection after brief explanations from staff and agencies. Several items drew questions and were held or discussed further. A Department of Human Services discretionary grant package for the RSVP program was held over after Senator Irvin raised concerns about whether the grants were an effective use of state general revenue and asked for more information on administration costs and program operations. In the contracts section, Representative Richardson questioned a DHS sole-source contract with EMS Link for document management software and a DHS contract with Presidio; the EMS Link item was held for additional answers, while the Presidio item was clarified as not sole-source and was allowed to proceed. Members also asked for more information on a Department of Education mental health referral contract with Care Solace, which officials said is a statewide concierge/referral service connecting students to Arkansas providers and telehealth options. The committee also reviewed monthly reports, including the Medicaid Trust Fund. DHS and DFA officials said the fund was currently sufficient to finish the fiscal year, though it was being drawn down and would likely require a $100 million transfer from restricted reserves in FY27, with another $100 million set aside in the governor’s budget as a backstop. Members discussed the need to define a minimum reserve level and to better account for ongoing Medicaid costs in the budget. The meeting ended with no further business and adjournment.

Transcript Highlights:

• The department is requesting...
• You're requesting any information?
• We’re going to hold...
• We're going to hold it open. Thank you. We want to issue number 22. I'm going to hold it open.
• I request that you please hold the line on the Medi-Cal fair share revenue solution to protect our public

Keywords: 987, senate, all

Summary: The subcommittee first heard May Revision items for child support, child care, and related human services. The Department of Child Support Services described two technical adjustments, which the LAO said raised no concerns. The Department of Social Services then walked through child care proposals, including a shift in how federal and Proposition 64 funding reductions would be absorbed, a 2.01% COLA, disaster-related child care infrastructure grants, an increase in in-contract administrative support costs for alternative payment agencies, reversion of prospective-pay implementation funding after a federal rule change, a one-time allocation to cover the first quarter of Cost of Care Plus payments in the next fiscal year, reappropriation for existing infrastructure grant closeout work, and estimates of unspent child care funds. The department also outlined trailer bill language on a single rate structure, site safety and emergency procedures, CalWORKs child care data sharing, and child care oversight. The LAO recommended that the Legislature seek more justification for shifting reductions from General Child Care to the Alternative Payment Program, noting that CAP reductions affect more slots and that General Child Care has had significant unspent funds. It supported removing prospective-pay funding, but recommended rejecting the administrative cost shift to a percentage-based rate because it could create future General Fund pressure. It also suggested the Legislature review alignment between the disaster grants and the child care infrastructure program. Senators and members pressed the administration on why the budget would reduce child care slots and COLA percentages while the state still has waitlists and unspent funds, and questioned the need for early funding of Cost of Care Plus payments and the move from a flat administrative amount to a percentage. Public commenters, including providers, advocates, county offices, and infrastructure partners, urged full COLA funding, preservation of child care slots, support for prospective pay, and continued investment in child care access and facilities. After a short recess, the committee moved to Part B on health and heard the Department of State Hospitals. DSH presented a May Revision budget of $3.2 billion and described proposals for a central utility plant replacement at Metropolitan State Hospital, an electronic health record implementation, reduced county bed billing authority due to phased-in LPS bed capacity, limited contract exemption authority for online clinical subscriptions, reversion of prior-year unspent operating funds, and a workforce development proposal shifting some costs to Behavioral Health Services Act funds, including support for an additional psychiatric training cohort at Napa. The department also outlined IST-related savings and a trailer bill to remove the sunset on the independent placement panel program.

Transcript Highlights:

• The department is requesting a request.
• Any objection to holding this? Okay. Any objection to holding this?
• <00:29:09.120> No additional requests. No changes. No additional requests. No changes.
• and the house is holding that, right? and the house is holding that, right?
• I'll hold it for right now. that in. I'll hold it for right now. Yeah. Yeah. Yeah.

Keywords: 1191, senate, all

Transcript Highlights:

• It has to put it on hold. Anyone else want to talk before we put it on hold?
• I just haven't 5C asked to hold. Yeah, I have a hold as well. 62.
• Yeah, I have a hold as well. Yeah, I have a hold as well.
• motion and then we could put it on hold. motion and then we could put it on hold.
• the second and put this one on hold. the second and put this one on hold.

Keywords: 1191, senate, all

Transcript Highlights:

• ,<00:09:42.959> but increase in the amount requested, but increase in the amount requested
• should just be holding money. should just be holding money.
• . request.
• We're not requesting new positions in the fiscal year 2027 budget request.
• approximately 70% of our budget request. approximately 70% of our budget request.

Keywords: Appropriations - Room 216, 22 January, 2026; 8:00 AM, 925, all

Summary: The hearing began with the State Board of Architecture’s budget presentation. The executive director described the board’s mission to regulate architecture, landscape architecture, and certified interior design to protect public health and safety. He highlighted the board’s consolidated structure, license totals, high reciprocity rate, recent rule changes to reduce barriers to practice, and a proposed FY 2027 budget of $368,123, which included a 5% staff salary increase and higher operating costs. He also noted a newly identified need to modernize the licensing system, estimated at at least $25,000, and asked that the board not be reduced below the requested level. A board member also praised the small staff’s responsiveness and effectiveness. The State Board of Public Accountancy then presented its budget and policy requests. The executive director said the board regulates CPAs and CPA firms, oversees the CPA exam process, and has about 3,600 active individual licensees and 800 firms. The board requested only a 3% compensation increase for staff, plus a special request to allow an audit supervisor to repay the cost of a Becker review course through payroll deduction as part of succession planning. She also described a board-approved waiver program that began January 1, eliminating application fees for CPA exam candidates and retakes; 42 candidates had used the waiver in the first two weeks. In response to questions, she said the board does not assist CPAs with IRS disputes, but it does investigate complaints from the IRS, SEC, PCAOB, or others. Finally, a representative presented for the Board of Licensed Professional Counselors. She explained that the board regulates licensed counselors and psychotherapy providers, meets frequently, and has two staff members. The board’s main request was for additional investigative capacity: a full-time investigator and related funding, because complaints are currently handled by part-time investigators, contractors, and sometimes board members, which can require recusals from hearings. She said the state auditor had recently flagged complaint backlogs at regulatory agencies, supporting the request. The board also sought funding for a contractual administrative position, salary progressions, and a one-time technology increase to modify its new licensing system for the counseling compact and better search functions. Members questioned the board about its large cash balance, which was reported at about $860,000, and whether it should provide fee relief or other benefits to members; the presenter said the board would look into that and noted that revenues had increased significantly in recent years, partly due to out-of-state and telehealth-related licensing demand.

Transcript Highlights:

• You're good. audience doesn't have the hold list, but audience doesn't have the hold list, but it<00:
• it are the items that we did put on hold it are the items that we did put on hold and<00:15:49.839
• Uh, number four, I'd ask that we hold that, Mr. Chair. We're going to keep that one on hold.
• ask that we hold on items one and two. ask that we hold on items one and two. uh<00:22:51.440>
• <00:47:27.839> Page page five is on hold. All right. Page page five is on hold.

Keywords: 1191, senate, all

Transcript Highlights:

• I rise to request a waiver of the public notice requirement pursuant to Senate Rule 21 to hold a hearing
• I rise to request a waiver of the public notice requirement pursuant to Rule 21 to hold a decision-making
• I rise to request a waiver of the public notice requirement pursuant to Senate Rule 21 to hold a decision-making
• requirement pursuant to rule 21 to hold requirement pursuant to rule 21 to hold a<00:08:27.159><
• I rise to request a waiver of the public notice requirement pursuant to Senate Rule 21 to hold a decision-making

Keywords: 912, senate, all

Transcript Highlights:

• We're going to hold the item open. Okay.
• And so this request is for ongoing authority.
• This budget year request follows a current year request approved by the Joint Legislative Budget Committee
• Hold it open. Move on to issue number eight.
• Moving on, hold it open and move it on to issue.

Keywords: 987, senate, all

Summary: The hearing opened with Department of Finance and Legislative Analyst’s Office remarks on the May Revision, which both described efforts to reduce large out-year operating deficits through a mix of revenue increases, spending reductions, and reserve use. Finance said the May Revision more than halves projected deficits in later years, while LAO stressed that revenues are at unprecedented levels yet the state still faces a significant structural deficit and is drawing down reserves; LAO urged maintaining at least the administration’s level of budget solutions and adding to reserves rather than new ongoing commitments. The chair echoed concern about cuts to vulnerable populations and noted the tension between service reductions and requests for additional administrative positions. The committee then heard a series of California Health and Human Services and HCAI proposals, including additional legal support for CalHHS to respond to federal HR1 changes; a net-zero transfer of positions for a centralized eligibility/data-sharing platform; 988 crisis line implementation funding and continued work with the Trevor Project to train crisis centers to better serve LGBTQ youth; EMS data system maintenance funding; HCAI implementation of AB 1312 hospital charity care screening; SB 660 data exchange framework funding; CalRx biosimilar insulin reappropriation; and a diaper access initiative that would provide free diapers to newborns in participating hospitals and support a future direct-to-consumer purchasing option. Members questioned the diaper program’s universal design, the use of a Public Contract Code exemption, and the selection of Baby2Baby, with the chair expressing concern about optics and the lack of an income threshold. The committee also discussed distressed hospital funding, with HCAI requesting up to $50 million for another round of grants to hospitals in immediate financial distress. HCAI said it receives annual and quarterly financial reports but the data lag limits real-time monitoring, and the LAO recommended stronger program parameters and turnaround plans. Members argued the repeated need for distressed hospital aid reflects a structural problem, not a short-term gap, and raised broader concerns about hospital reimbursement and patient flow. Other items included reverting $19.6 million in unused opioid settlement funds from HCAI to DHCS for General Fund offset, and a Rural Health Transformation Program request to increase HCAI spending authority to cover the full federal award. Later, DMHC presented funding requests to implement PBM licensing and financial review requirements under AB 116, modernize the managed care complaint system, and build an electronic claims settlement data system under AB 3275. The final major discussion focused on the Behavioral Health Services Oversight and Accountability Commission, which opposed the May Revision’s proposed reduction of its Innovation Partnership Fund from $20 million to $10 million and a $6.7 million cut to community advocacy grants. The Commission argued these programs are core to Proposition 1’s goals of statewide innovation and community accountability, while Finance said the proposal is consistent with Proposition 1’s maximum funding levels and reflects a broader effort to prioritize direct services and use unspent prior-year funds; members pressed for more information and questioned whether the cuts would undermine the new behavioral health framework.

Transcript Highlights:

• Hold it.
• We're holding holding look at it. Yeah. We're holding holding page<01:12:42.239> 16.
• We'll hold these. those. We'll hold these.
• We would also hold any We'll hold those.
• keep those on hold. keep those on hold.

Keywords: 928, house, all

Summary: The committee of conference on HB 1 and HB 2 met to review revenue estimates and begin working through a side-by-side of the budget. New Hampshire Lottery Director Charlie McIntyre testified that lottery revenues are outperforming prior estimates, projecting a $27 million return to the state this year, up $7 million, and $200 million per year in the next biennium, up $6.5 million per year. He attributed the increase to stronger scratch ticket sales, no negative impact from Massachusetts sports betting, and overall better performance. Members questioned the assumptions behind the higher numbers, including the proposed $50 scratch tickets, the effect of inflation, and whether the projections were conservative enough. McIntyre said the $50 ticket could produce modest growth and that the estimates were intentionally cautious. The discussion also covered gaming revenue assumptions for historical horse racing and video lottery terminals, with McIntyre saying the state market is not yet saturated and that future conversions from HHR to VLTs should be net positive for the state. Members also discussed differences between House and Senate revenue numbers for gaming, including machine counts, daily revenue assumptions, and the tax split. The Senate version used higher machine counts and a 31.25% tax rate, with a quarter-point reserved for responsible gaming and the remainder split between charities and the state. The House had used a 30% rate with a different distribution. McIntyre and committee members also reviewed House Bill 2 items affecting Kino hours and local option games of chance, with McIntyre explaining that the bill would expand playing hours and shift towns to an opt-out model. No votes were taken during the lottery discussion, but the committee indicated it would continue refining the revenue model and circulate the spreadsheet used for the estimates. The committee then moved through the HB 1 detail change sheet, accepting several Senate positions and holding others for later. It agreed to a zero-cost realignment in the Department of Safety moving the international fuel tax agreement function from administration to motor vehicles, and it restored eight passenger motor vehicle inspection positions for later discussion in HB 2. The Department of Corrections reorganization was set aside for a later, more detailed discussion. The committee also accepted no-change positions for the Department of Employment Security and agreed to a technical footnote fix in the Judicial Council section. It discussed a new HB 2 item moving contract counsel for involuntary mental health admissions from the judicial branch to the Judicial Council, funded at $100,000 per year, and noted that the public defender funding issue would be revisited when the overall budget picture is clearer. The meeting ended with the committee continuing its review of the remaining pages of the detail change sheet.

Transcript Highlights:

• These are reserve fund transfer requests.
• This is the first request for the department.
• These are pay plan appropriation requests.
• This is for network solutions, functionality requests, change requests, environmental updates, on-demand
• Chair, can we hold this one?

Summary: The PEER Review Subcommittee met to consider a large agenda of appropriation, transfer, contract, and other review items. Members approved temporary appropriation requests in Sections B through F, including funding for prosecuting attorneys, education-related adjustments, school operating needs, labor licensing divisions, ARPA fund returns from Workforce Services, IIJA grants for state police CDL implementation and a forestry-related county grant, reserve fund transfers for teacher scholarships, school facilities, and economic development, and a Commerce reallocation tied to organizational realignment. Cash fund requests in Section G and budget classification transfers in Section H were also reviewed, along with pay plan requests in Section I, overtime requests in Section J, and multiple methods of finance in Section K. The committee also reviewed discretionary grants in Section L, including agriculture promotion board grants and DHS aging/adult behavioral health grants, plus RFQs, construction contracts, intergovernmental contracts, and out-of-state contracts in Sections M1 through M5. Several items drew questions from members. Workforce Services explained that $225,000 in TANF-related funds would be returned to the federal government because the two-year hold period for uncashed or moved checks had expired. Commerce officials described the $25 million site infrastructure grant program, saying it supports site development, due diligence, and infrastructure build-out at eligible sites of 30 acres or more, including rural communities, with grant agreements and matching requirements providing accountability. DHS and Education officials answered questions about the Care Solace mental health referral contract, saying it is a statewide concierge/referral service that helps schools connect students to Arkansas providers and follow up so students do not fall through the cracks; members asked for more information on provider selection, school-day scheduling, and Arkansas vendor participation. The committee held one item over: the DHS discretionary grant item for the RSVP retired senior volunteer program in L2, after concerns were raised about whether state general revenue was being used effectively and how much administrative overhead the providers retain. Members also questioned several contracts, including a DHS sole-source contract with EMSLink for document management software and a DHS bridge contract with Arkansas Foundation for Medical Care for Medicaid inspections of care reviews; in both cases, agency staff explained the need to avoid service disruption and said follow-up information would be provided. A Department of Corrections reentry center contract was discussed for its recidivism results, and ARDOT retirement-system investment contracts were briefly explained. The meeting ended after a lengthy discussion of the Medicaid Trust Fund balance, with DFA and DHS officials saying the state is expected to finish the fiscal year without exhausting the fund, that a restricted reserve of $100 million is available as a backstop, and that the larger question is what minimum balance should be maintained going forward.

Transcript Highlights:

• I urge you to restore HB 63 at-risk funding through this requested hold harmless provision.
• I'm here today to urge you to restore HB 63 at-risk funding through a requested hold harmless provision
• Having a phased-in adjustment of hold harmless over a period of three years, which has been requested
• That's why I'm respectfully requesting you fully fund a three-year hold harmless provision in the LESC
• I am here today as a parent to respectfully request that funding for the hold harmless provision be a

Summary: The committee first heard a presentation on strategic resource management in public education. LESC staff and PED officials argued that New Mexico has increased school funding, but local budgeting and planning remain fragmented and overly compliance-driven. They described long-term pressures including declining enrollment, rising special education costs, falling cash balances, changes in federal funding, and leadership turnover, and said schools need more intentional multi-year planning tied to student outcomes. They also outlined the many disconnected planning requirements schools must complete, compared New Mexico’s current approach with Ohio’s three-year budget forecasting model, and recommended continuing multi-year appropriations, adding $2.5 million for state grants in the unified application, and directing LESC, LFC, and PED to develop a long-term financial planning proposal. PED said it is working to reduce administrative burden through school accreditation, a unified application for federal and state funds, and internal alignment of guidance and coaching, with pilot schools reporting time savings and better alignment. Members raised concerns about four-day school weeks, the burden on small districts, the need for outcomes and return on investment, and whether the state should move toward a two-year or three-year planning cycle; staff clarified that the proposal was to streamline or eliminate redundant requirements, not add another layer. The committee then received an update on the Educator Fellows program. PED described it as a Grow Your Own pipeline that employs candidates as supplemental educational assistants while they work toward licensure, providing salary, benefits, paid leave, mentoring, and coursework support. Officials said the program helps address teacher shortages, improves student-to-teacher ratios, increases workforce diversity, and supports the Martinez-Yazzie action plan. They reported 370 current fellows across 86 LEAs and about 180 schools, with many fellows being people of color, first-generation college students, or second-career educators; roughly 85 are expected to become certified this year. A local HR director from Belen testified that the program has been especially valuable in small communities, where fellows are already rooted in the community and several have moved into teaching roles. Members asked about high school recruitment, tuition, retirement and benefits, the relationship to the Higher Education Department’s Grow Your Own scholarship, and the role of university partners. PED said fellows choose among accredited higher education partners, the program is separate from the scholarship but complementary, and the state is also building an apprenticeship model and seeking to expand the program to more LEAs, though some districts are on a waiting list because of funding and local match requirements.

Transcript Highlights:

• Hold it. issue. Hold it. All<00:53:40.240> right.
• Hold it.
• We're holding holding look at it. Yeah. We're holding holding page<01:12:42.239> 16.
• We'll hold these. those. We'll hold these.
• keep those on hold. keep those on hold.

Keywords: 928, house, all

Summary: The Committee of Conference on HB 1 and HB 2 met to review revenue estimates and begin working through the HB 1 detail change sheet. New Hampshire Lottery Director Charlie McIntyre reported stronger-than-expected lottery performance, raising the current-year return estimate to $27 million and the next biennium estimate to $200 million, with the increase attributed to improved scratch ticket sales and sports betting not hurting revenue as much as expected. Members questioned the assumptions behind the higher estimates, including the impact of $50 scratch tickets and whether the figures accounted for future conversion from historical horse racing (HHR) machines to video lottery terminals (VLTs). McIntyre and committee members discussed machine counts, per-day revenue assumptions, and the likelihood that VLT conversion would increase revenues over time, though the timing and pace of conversion remained an open question. The committee also discussed several gaming-related policy items in HB 2, including changes to kino hours and local option games of chance, and noted that the Senate and House differed on how gaming revenues would be allocated between charities, education, and general funds. Members emphasized that revenue projections should remain conservative because operators, not the state, would control the pace of machine conversion. Representative Sweeney noted that operators could earn more per machine under the VLT model, and McIntyre said the new facilities and expansions were largely concentrated near the Massachusetts border. The committee then moved to the HB 1 detail change sheet. It agreed to Senate position on the Department of Safety’s road toll bureau and international registration program changes, which were described as a zero-cost realignment of positions, and held the Department of Corrections section for later discussion. On the judicial side, members approved a technical footnote fix, but held a new contract counsel item for involuntary mental health admissions and deferred discussion of the public defender program increase. The committee also noted no change for the PE development authority, moved safety rest area funding from HB 2 into HB 1 with no additional cost, and flagged the tourism development fund and other judicial items as issues that may depend on overall available revenue.

Transcript Highlights:

• I am here today to urge you to restore HB 63 at-risk funding through a requested Hold Harmless provision
• Having a phased-in adjustment of Hold Harmless over a period of three years, which has been requested
• That's why I'm respectfully requesting you fully fund a three-year Hold Harmless provision in the LESC
• I am here today as a parent to respectfully request that funding for the Hold Harmless provision be a
• However, I'm here today with a clear and urgent request: fully fund the Hold Harmless provision at $12.8

Keywords: 996, all

Transcript Highlights:

• But again, when requests are made from our system, when that driver history record is requested, our
• There is a request.
• We don't have to hold it. We're not required to hold it confidential.
• The discretion is that you can hold it because it's in the public's best interest to hold it so that
• These are ongoing, but the request before you is a one-time request.

Summary: The committee first heard a DMV budget presentation on the state-to-state verification system required for Real ID compliance and the Digital Experience Platform (DXP) modernization project. DMV officials said the state-to-state system is a pointer-based exchange used when a person applies for a license in another state, with only limited identifying data shared initially and the full driver history sent only after a qualified request. Members raised concerns about privacy, possible misuse by other states or federal actors, notification to Californians, hacking, and whether California could detect or stop abusive access. DMV said it can monitor requests, see patterns of access, work with AAMVA and legal counsel, and seek to block or challenge misuse; LAO said California is in a difficult position and should consider guardrails rather than opt out. On DXP, DMV said the project is on its revised schedule and budget, occupational licensing is complete, vehicle registration is expected by the end of calendar year 2026, and the full system should be finished by fiscal year 2028-29, with phased rollout and reappropriated funding to keep costs controlled. The committee then heard from the California High-Speed Rail Office of Inspector General on a trailer bill and AB 1608. The Inspector General said current law does not clearly authorize public reports or establish a framework for retaining and disclosing work papers, and the proposed trailer bill would create that framework while also adding authority to hire needed classifications and purchase goods and services. He also said the office needs a clearer statutory definition of “proposed agreements” and notice when the High-Speed Rail Authority is reviewing them, so the office can review contracts and related agreements effectively. LAO raised no concerns with the trailer bill language, and Finance said any amendments would come in the May revision. Members debated the scope of confidentiality in the Inspector General proposal, especially whether reports could be held confidential when they identify weaknesses in fraud controls, security, or other vulnerabilities. The Inspector General said confidentiality would be temporary, tied to articulating the risk, reassessing it every 120 days, and releasing the report once the risk is no longer substantial; he also said the office had already published reports at its discretion and had found at least one procurement violation involving an amendment that added services not in the original contract. Several members pressed for stronger transparency and suggested time limits or broader disclosure, while others argued the bill would improve oversight and make the Inspector General’s authority clearer. No votes were taken during the discussion, and the item was left for further work on the trailer bill and AB 1608 language.

Transcript Highlights:

• There is a request.
• There is a request.
• I think it's a very legitimate request.
• We don't have to hold it. We're not required to hold it confidential.
• request.

Keywords: 988, house, all

Summary: The committee heard several budget and policy items, beginning with the DMV’s proposal for the federal state-to-state verification system and the Digital Experience Platform (DXP). DMV officials said the state-to-state system is required for Real ID compliance and functions as a pointer system that shares only limited identifying information to help states verify whether an applicant has records in another jurisdiction. Members pressed hard on privacy, access, hacking, notification, and misuse concerns, including whether other states or federal actors could use the system to target Californians. DMV said access is limited to member jurisdictions, requests are transaction-based, records are encrypted, California can see when its data is requested, and legal remedies would include working through AAMVA and the Attorney General if misuse occurred. On DXP, DMV said the project has been reset, is on its revised schedule and budget, occupational licensing is complete, vehicle registration is targeted for completion by the end of the calendar year, and the full modernization is expected by fiscal year 2028-29. The committee then took up the High-Speed Rail Office of Inspector General trailer bill and AB 1608. The Inspector General said current law does not clearly authorize public reports or establish a work-paper retention and disclosure framework, and that the trailer bill and AB 1608 would codify those powers, add access to needed job classifications and purchasing authority, and require public reporting with temporary confidentiality only in limited circumstances such as pending litigation, security vulnerabilities, or fraud-detection weaknesses. Members debated how broad the confidentiality language should be, whether reports could remain confidential too long, and whether the bill should define “proposed agreements” and require notice to the Inspector General when agreements are being reviewed. The Inspector General said he had already found at least one procurement-related state law violation involving an amendment that added services not in the original contract, and members discussed the project’s large cost growth and the need for stronger oversight. No vote was taken on the item in the portion provided. Finally, Caltrans began presenting a trailer bill proposal related to workforce development under SB 150, explaining that it would amend Government Code 14017, which governs use of federal highway formula funds and related workforce development efforts. The transcript cuts off as Caltrans starts its overview, so no further discussion, vote, or action on that item is shown in the provided text.

Transcript Highlights:

• Do you want to hold it for a bit? But we'll hold this.
• Can we hold on this one? We hold on out? Can we hold on this one?
• So, we'll hold that one. All right. So, we'll hold that one.
• Hold. Hold. Hold. All right.
• Hold. Hold. Hold. All right.

Keywords: 10am HB 1 & HB 2, 928, house, all

Summary: The committee of conference on HB 1 and HB 2 reviewed comparison documents and worked through a long list of House and Senate positions, agreeing on some technical or already-enacted items while setting aside others for later discussion. Early on, members agreed to delete a House Bill 2 section tied to a bill already passed into law, and a representative explained a technical amendment to the EFA provisions clarifying enrollment-cap repeal language and compulsory attendance rules for EFA students. That amendment was discussed but a vote was postponed because not all members were present. The committee also noted that the overall EFA budget numbers had already been settled separately. Several items were either agreed to or held for further negotiation. Members agreed to delete sections already covered by other enacted bills, including BTLA-related language, and to accept a technical amendment changing "municipalities" to "political subdivisions" in a section affecting funding eligibility. They also agreed on some items involving workers’ compensation second injuries, certain pilot-program language, and some sections related to state loan repayment and other technical corrections. In contrast, they set aside or disputed items involving site evaluation, lottery-related provisions, opioid abatement, the Commission on Aging, Granite Advantage premium costs, renewable energy/offshore wind funding, special education funding, and several education trust fund and unique-fund provisions. The committee spent substantial time on policy disputes. The House side argued against keeping money in dedicated Fish and Game funds rather than increasing the main Fish and Game fund, while the Senate side defended its approach and raised concerns about fee impacts, including one tied to the fishing license. The members also discussed a housing appeals board proposal, with one member suggesting a possible compromise that would preserve some function while shifting duties and possibly sunsetting the arrangement later; the contracts for the positions were noted as running through June 30, 2028 and June 30, 2029. Another extended discussion concerned the child advocate records-access section, which one side wanted removed as policy that should go through the normal bill process, while another member asked to hold it and suggested a possible middle-ground, time-limited approach. Later, the committee agreed to remove sections already handled in other bills, including House sections 254 and 255, and discussed but did not resolve disputes over liquor licensing functions, cannabis-related language, cost containment, special education, and several fee and fund provisions. The Senate explained its position on the governor’s commission language, saying opioid abatement trust funds could not be used for that purpose and that the commission should continue to be funded through 5% of gross liquor profits; it also described renaming the body the Commission on Addiction Treatment and Prevention and expanding its scope to include problem gambling. The meeting ended with several major items still open for later negotiation.

Transcript Highlights:

• Walls, the agency requests that are listed here are the agency requests that were also in the 2024 regular
• Well, is the request coming from the federal government to hold the spending down, or is it coming from
• That has been a historical request. It was at one time... That has been a historical request.
• I believe it will become part of the biennial budget request, or at least the agency will request that
• So that would be my request.

Keywords: 1204, all

Transcript Highlights:

• harmless, with 11 in hold harmless.
• “It’s also three times the increase requested by the Chancellor’s Office in the 2025-26 budget request
• My request through whom, and who's going to be responding to my request?
• Monica's hold harmless provision.
• Monica's hold harmless provision.

Summary: The Assembly Budget Subcommittee on Education Finance held a hearing focused on California Community College budget proposals. Chair Alvarez opened by emphasizing the system’s role in access, transfer, workforce training, and serving more than 2 million students, while also noting persistent challenges in enrollment, persistence, transfer, and graduation. Public commenters and system representatives broadly supported COLA, enrollment growth funding, deferred maintenance, student support block grants, and additional flexibility for districts facing uncertainty. The first major panel covered the student-centered funding formula, COLA, and enrollment growth. The Department of Finance said the Governor proposes a 2.43% COLA ($230.4 million) and 0.5% enrollment growth funding ($30.4 million). The LAO said the COLA was reasonable and recommended funding at least the proposed growth amount, citing uneven enrollment recovery and regional differences. The Chancellor’s Office supported both proposals and asked for additional changes, including using the greater of current-year or three-year average for apportionments and lifting the 10% local enrollment cap, arguing these would better fund growing districts. Members questioned how the formula works, whether SCFF is improving outcomes, and how much additional funding would be needed under different growth scenarios. The committee then reviewed categorical program COLAs, Rising Scholars, career education proposals, IT proposals, and student housing. The Governor proposed a 2.43% COLA for selected categorical programs ($31.9 million). For Rising Scholars, the Governor proposed $30 million ongoing and removal of the cap on participating colleges; the LAO urged waiting for outcome data before doubling funding, while the Chancellor’s Office said the program is serving more students and supports equity for justice-impacted students. On career education, the Governor proposed $50 million for credit for prior learning and $50 million for a career passport; the LAO supported more reporting on credit for prior learning but recommended rejecting the career passport as too undefined, while the Chancellor’s Office supported both. On technology, the Governor proposed $162.5 million for a common cloud data platform and $168 million for a common ERP system; the LAO said both were premature or lacked sufficient planning and recommended rejection, while the Chancellor’s Office argued they would improve real-time data, security, and systemwide efficiency. The committee also heard an update on student housing: the administration said the 2024 shift to a lease-revenue bond model remains in progress for 13 approved projects, with 11 still active, and members asked about withdrawn projects and possible use of any returned funds. No votes were taken, and several items were held open for further discussion and May Revision updates.

Transcript Highlights:

• President, request request the title be read. All request request the title be read.
• All request request the title be read.
• President, I request the title be request the title be request the title be read.
• Hold up they want to send their kids. Hold up they want to send their kids. Hold up now.
• Hold up. Uh was the gentleman want to Hold up. Uh was the gentleman want to Hold up.

Bills: SJR 39, SJR 68, SCR 29, SCR 42, SB 30, SB 33, SB 37, SB 217, SB 240, SB 331, SB 393, SB 505, SB 530, SB 546, SB 552, SB 584, SB 586, SB 618, SB 619, SB 636, SB 732, SB 769, SB 801, SB 825, SB 826, SB 844, SB 847, SB 870, SB 884, SB 957, SB 1065, SB 1150, SB 1184, SB 1257, SB 1261, SB 1262, SB 1299, SB 1314, SB 1325, SB 1398, SB 1413, SB 1455, SB 1539, SB 1577, SB 1583, SB 1596, SB 1620, SB 1624, SB 1642, SB 1643, SB 1667, SB 1717, SB 1727, SB 1760, SB 1789, SB 1791, SB 1804, SB 1868, SB 1870, SB 1883, SB 1901, SB 1923, SB 1924, SB 1927, SB 1951, SB 1960, SB 1962, SB 1963, SB 2010, SB 2018, SB 2023, SB 2024, SB 2037, SB 2051, SB 2052, SB 2056, SB 2066, SB 2073, SB 2127, SB 2129, SB 2161, SB 2183, SB 2185, SB 2207, SB 2252, SB 2323, SB 2332, SB 2368, SB 2405, SB 2439, SB 2626, SB 2717, SB 2743, SB 2774, SB 2949, SB 1, SJR 36, SJR 50, SJR 63, SJR 68, SCR 12, SCR 39, SCR 38, SCR 37, SCR 42, SCR 29, SB 2023, SB 62, SB 666, SB 847, SB 284, SB 854, SB 1073, SB 810, SB 1539, SB 1505, SB 583, SB 957, SB 1502, SB 507, SB 1026, SB 1349, SB 1433, SB 1434, SB 264, SB 1364, SB 1376, SB 1585, SB 1772, SB 2016, SB 1163, SB 619, SB 1122, SB 1877, SB 732, SB 731, SB 397, SB 508, SB 1436, SB 287, SB 2143, SB 261, SB 1247, SB 1882, SB 618, SB 393, SB 2243, SB 1919, SB 1791, SB 651, SB 826, SB 1079, SB 1243, SB 1504, SB 1851, SB 1879, SB 2237, SB 1257, SB 2034, SB 1522, SB 1151, SB 596, SB 1191, SB 226, SB 570, SB 870, SB 991, SB 60, SB 1401, SB 1728, SB 586, SB 529, SB 217, SB 209, SB 1923, SB 1839, SB 387, SB 1874, SB 1872, SB 1873, SB 1921, SB 1883, SB 1620, SB 1838, SB 2024, SB 2429, SB 1999, SB 511, SB 2309, SB 2166, SB 510, SB 1860, SB 1314, SB 1398, SB 855, SB 2037, SB 1759, SB 1924, SB 1818, SB 1762, SB 1968, SB 1977, SB 2077, SB 2321, SB 1662, SB 1663, SB 2124, SB 2204, SB 1855, SB 863, SB 2252, SB 2253, SB 825, SB 1184, SB 2018, SB 2206, SB 1901, SB 2368, SB 1963, SB 1960, SB 1643, SB 1625, SB 1299, SB 841, SB 668, SB 584, SB 231, SB 1085, SB 2431, SB 2231, SB 1490, SB 530, SB 1261, SB 2180, SB 1804, SB 1937, SB 1936, SB 2569, SB 1372, SB 1868, SB 2314, SB 769, SB 1409, SB 434, SB 1214, SB 1951, SB 2183, SB 2046, SB 1667, SB 1870, SB 1727, SB 2405, SB 2127, SB 1975, SB 1760, SB 1734, SB 1335, SB 2066, SB 2129, SB 2246, SB 2439, SB 1624, SB 1244, SB 1468, SB 2717, SB 1612, SB 1262, SB 604, SB 2395, SB 2185, SB 1832, SB 1745, SB 1746, SB 2207, SB 1784, SB 1524, SB 528, SB 437, SB 269, SB 1137, SB 968, SB 636, SB 747, SB 1325, SB 1789, SB 1455, SB 2056, SB 1940, SB 2052, SB 2010, SB 1579, SB 2068, SB 3034, SB 844, SB 1920, SB 1558, SB 1236, SB 1044, SB 884, SB 463, SB 331, SB 227, SB 240, SB 517, SB 1200, SB 1410, SB 1626, SB 1845, SB 1863, SB 2216, SB 2681, SB 1717, SB 2053, SB 546, SB 2141, SB 2949, SB 2323, SB 2200, SB 2332, SB 2199, SB 1642, SB 1150, SB 1757, SB 2050, SB 1138, SB 2051, SB 2626, SB 2458, SB 1864, SB 2201, SB 1862, SB 1583, SB 1055, SB 2660, SB 1898, SB 2662, SB 2161, SB 2964, SB 2881, SB 1065, SB 801, SB 2743, SB 2533, SB 1413, SB 2073, SB 3014, SB 3013, SB 2774, SB 2702, SB 2629, SB 2443, SB 2349, SB 2167, SB 2145, SB 2121, SB 758, SB 648, SB 647, SB 512, SB 438, SB 1721, SB 2268, SB 1495, SB 2705, SB 2366, SB 1422, SB 1369, SB 1013, SB 682, SB 2692, SB 2570, SB 2797, SB 2111, SB 1896, SB 1164, SB 1020, SB 663, SB 2371, SB 1152, SB 2196, SB 2383, SB 2581, SB 2798, SB 330, SB 646, SB 843, SB 1998, SB 1418, SB 2788, SB 1169, SB 2873, SB 1754, SB 1534, SB 1718, SB 2779, SB 2004, SB 1143, SB 1756, SB 912, SB 2119, SB 2032, SB 527, SB 1580, SB 1952, SB 2601, HJR 4, SJR 85, SJR 84, SCR 4, SCR 18, SCR 43, SCR 46, SB 2322, SB 2448, SB 1777, SB 1283, SB 407, SB 2392, SB 2076, SB 2786, SB 3031, SB 2877, SB 2876, SB 2284, SB 2225, SB 1540, SB 2920, SB 2929, SB 1395, SB 1972, SB 2540, SB 1183, SB 2742, SB 2595, SB 2217, SB 2117, SB 715, SB 2330, SB 1964, SB 1383, SB 500, SB 1640, SB 39, SB 2001, SB 2080, SB 2722, SB 506, SB 2514, SB 2623, SB 2658, SB 1574, SB 2900, SB 23, SB 2753, SB 2398, SB 401, SB 1241, SB 2927, SB 2173, SB 2538, SB 898, SB 467, SB 1449, SB 2529, SB 1531, SB 2846, SB 2476, SB 2031, SB 986, SB 1181, SB 2075, SB 2154, SB 2864, SB 2, SB 260, SJR 68, SB 217, SB 331, SB 530, SB 546, SB 586, SB 1150, SB 1184, SB 1261, SB 1398, SB 1620, SB 1923, SB 1951, SB 1960, SB 2051, SB 2129, SB 2183, SB 2185, SB 2252, SB 2368, SB 2405, SB 2949, SB 825, SB 1870, SB 2010, SR 434, SB 3048, SB 3049, SB 3050, SB 3051, SB 3052, SB 3053, SB 3055, SB 3048, SB 3049, SB 3050, SB 3051, SB 3052, SB 3053, SB 3055

Keywords: constitutional amendment, veto override, legislature power, governor, Texas Constitution, impeachment, public officers, removal from office, disqualification, El Paso, Boot Capital, cultural heritage, economic development, Western footwear, gender identity, biological sex, women's rights, immutability, policy, higher education

Transcript Highlights:

• Well, is the request coming from the federal government to hold the spending down, or is it coming from
• Well, is the request coming from the federal government to hold the spending down, or is it coming from
• That has been a historical request.
• Hold on. Senator Flowers, you got a question? Hold on. Now you're ready.
• Hold on. Senator Flowers, you got a question? Hold on. Now you're ready.

Summary: The committee heard budget presentations and took executive recommendations on several Department of Human Services divisions, including Aging, Adult and Behavioral Health Services; Children and Family Services; County Operations; Developmental Disability Services; and Medical Services, with most divisions showing little or no significant change in total appropriations. Staff and agency witnesses repeatedly explained that many large appropriations are maintained for flexibility, federal matching requirements, or contingency needs, even when actual spending is much lower than the authorized amount. Members also raised concerns about staffing vacancies, long-vacant budgeted positions, and the use of excess appropriation authority across DHS. In Aging, Adult and Behavioral Health, members questioned federal funding levels for mental health and substance abuse grants, the status of senior centers and Meals on Wheels, the Medicaid tobacco settlement program, community alcohol safety grants, and the veterans mental health grant. Agency officials said federal block grants are largely committed, that senior center funding had been delayed by shutdown timing but was now back on track, that the tobacco settlement program had been moved internally within DHS, and that the veterans mental health appropriation remains unfunded. Senators also criticized the adequacy of support for seniors and asked for more detail on how transportation, meal services, and local contributions are funded. In Children and Family Services, members asked about rising appropriation levels, foster care and adoption subsidies, professional fees, the number of children in foster care, and the Children’s Trust Fund. DHS said increases reflect added flexibility for residential treatment, adoption subsidies, and prevention services, while the foster care population has remained fairly steady at about 3,400 children. The Children’s Trust Fund was described as supporting primary prevention programs such as Baby and Me and community schools, and members asked whether it could be administratively combined with other efforts. Questions also covered TANF subgrants, with DHS explaining that it had reduced outside subgrants after discovering over-obligation and was rebuilding reserves. In County Operations, members focused on the summer EBT program, SNAP employment and training, the farmer’s market program, and the state’s TANF reserve position. DHS said summer EBT is still being funded through temporary appropriations because it is a newer program, SNAP employment and training is largely federally funded and may expand under a pending policy change, and TANF reserves were drawn down after prior over-obligation but are now being stabilized. In Developmental Disability Services, members asked about vacancies, human development center staffing, facility construction funds, and the Booneville work program, and DHS said the program has reopened and staffing recruitment continues. In Medical Services, members asked about FMAP, the Our Kids B CHIP program, school-based Medicaid reimbursements, nursing home distress funds, and several large appropriation lines that far exceed actual spending; DHS said these are maintained for claims payment, nursing home receivership contingencies, and other flexibility needs. Each division reviewed was adopted by executive recommendation after questions concluded.