Budget Spotlight - 03/13/2026

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Subcommittee #1 (Education) Pérez (D-Pasadena) Chair, Ochoa Bogh (R-Yucaipa), and Archuleta (D-Pico Rivera)

State Librarian Cannot Account for $650,000 Intended for Children's Literacy. The subcommittee conducted oversight regarding Senate Bill 1183 (2022), coauthored by Senator Shannon Grove (R-Bakersfield) and then-Senator and Pro Tempore Toni Atkins, which was intended to promote children's literacy through the existing nonprofit Dolly Parton Imagination Library. The California State Library, originally tasked with distributing $68 million for the program, defied legislative intent by setting up an unnecessary new nonprofit on its own, rather than work with the established and widely praised Imagination Library. Later legislative actions shifted the majority of funds back to the intended Dolly Parton programs, but the State Library's new nonprofit retained about $1.2 million.

Senator Grove* joined Senator Sasha Renée Pérez (D-Pasadena) in asking pointed questions of State Librarian Greg Lucas, a gubernatorial appointee. The senators sought answers regarding why the State Library set up that unnecessary nonprofit in the first place, and what happened to nearly $650,000 of the $1.2 million that nonprofit apparently spent. The State Library previously had not responded to repeated requests from Senate Budget Committee staff over many months for an explanation and documentation. Senator Grove noted that the State Librarian's inability or unwillingness to provide answers at the hearing "reeks of horrific non-transparency and potential fraud." As the State Librarian continued to make excuses, Senator Grove eventually asked point-blank, "Where's the money?" The subcommittee set a deadline of one week for the State Library to finally provide the repeatedly requested information. Whether the State Library's non-responsiveness thus far indicates fraud or merely incompetence remains to be seen.

Note: Video of Senator Grove's remarks and questions in the subcommittee is available here.

Key Topics to be Heard Next Week: Community college funding and enrollment.

* Senator Grove appeared as a temporary substitute for Senator Rosilicie Ochoa Bogh (R-Yucaipa).

Subcommittee #2 (Resources, Environmental Protection, and Energy) Reyes (D-Colton) Chair, Choi (R-Irvine), Blakespear (D-Encinitas), and McNerney (D-Pleasanton)

Subcommittee #2 did not meet this week.

Key Topics to be Heard Next Week: Environmental protection, toxics, pesticides, and recycling programs.

Subcommittee #3 (Health and Human Services) Menjivar (D-San Fernando Valley) Chair, Grove (R-Bakersfield), and Weber Pierson (D-San Diego)

State Failed to Protect Vulnerable Seniors. Budget Subcommittee #3 discussed issues related to senior citizens and the state's role in licensing and monitoring different community care programs. Senator Shannon Grove (R-Bakersfield) questioned the Department of Social Services about its failure to protect vulnerable senior citizens at a residential care facility, Autumn Oaks, and noted, "the facility is closed now, but that wasn't until Tulare County rescued 22 seniors…from the facility in November due to serious and immediate health hazards." The Senator pointed out that the facility had 53 complaints filed against it with the department, which took no action despite unsafe conditions including, "bed bugs…cockroach nests…food being stored in absolutely unsafe conditions." Senator Grove commented to the department "it's really a lack of decisive response from you, so tell me why that happened." While the facility surrendered its license for now, Senator Grove called for the license to be permanently revoked and for Tulare County to be reimbursed for the cost to remove and relocate the seniors who were at the facility.

Key Topics to be Heard Next Week: Impacts of federal budget bill H.R. 1 on Medi-Cal and CalFresh, as well as issues related to food and nutrition programs and the Department of Social Services and CalWORKs.

Subcommittee #4 (State Administration and General Government) Hurtado (D-Bakersfield) Chair, Niello (R-Fair Oaks), Cabaldon (D-Yolo), Smallwood-Cuevas (D-Los Angeles)

Program Review Critical To Define Outcomes and Minimize Business Fee Assessments. Budget Subcommittee #4 discussed requested resources for the Department of Financial Protection and Innovation's (DFPI's) Debt Collectors program, which continues to develop regulations that will provide critical information to businesses expected to be licensed by the state. In the fall of 2025, DFPI assessed licensing fees to the first cohort of licensees, and several advocates testified today about concerns with the required assessments. Senate Republicans remain concerned about increasing the fees businesses must pay to operate in California, which further contributes to the state's unaffordability and challenging business climate. Senator Roger Niello (R-Fair Oaks) commented that as programs approach full implementation, it is important to conduct a review to better evaluate workload, fee levels, and whether current staffing and resources are justified and still aligned with the goals set when the program was created.

Key Topics to be Heard Next Week: The Governor's proposed changes to state tax policy, including testimony by the Franchise Tax Board, the Department of Tax and Fee Administration, and the Board of Equalization.

Subcommittee #5 (Corrections, Public Safety, Judiciary, Labor, and Transportation) Richardson (D-San Pedro) Chair, Seyarto (R-Murrieta), and Durazo (D-Los Angeles)

Prison Population Estimate Reflects Governor's Disregard for Voter Initiative. The subcommittee discussed several issues pertaining to prisons, including the Department of Corrections and Rehabilitation's inmate and parolee population estimates. Of particular interest were the Governor's assumptions about the impact of the broadly supported, voter-enacted Homelessness, Drug Addiction, and Theft Reduction Act of 2024 (Proposition 36) on the prison population for the upcoming fiscal year. While the Governor assumes a net increase of 1,200 inmates, the nonpartisan Legislative Analyst's Office believes that estimate is likely low. Senator Kelly Seyarto (R-Murrieta) opined that no estimate will be accurate until the measure is fully funded and implemented - something that Governor Newsom has refused to do. State funding provided to date (only $85 million, available over three years) is less than a quarter of the $400 million recently estimated as the annual need.

Key Topics to be Heard Next Week: Transportation issues, including continued funding for the Road Usage Charge Pilot Program, which aims to design a per-mile fee for vehicle travel in California.

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