Budget Spotlight - 03/06/2026

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

Continued Financial Challenges for Public Universities. Governor Newsom and legislative Democrats enacted hundreds of millions of dollars in cuts for the University of California (UC) and the California State University (CSU) in recent budget cycles, but the Governor’s new proposal would only partially restore those cuts. California Senate Republicans called for fully restoring these cuts in a December 2025 budget letter, a priority that Senator Roger Niello (R-Fair Oaks)* reiterated during the hearing. 

Senator Niello also raised concerns regarding a substantial increase in remedial classes needed by incoming freshmen at UC San Diego (UCSD), as documented in November 2025 faculty report. As the report states, “Between 2020 and 2025, the number of students whose math skills fall below high school level increased nearly thirtyfold; moreover, 70 percent of those students fall below middle school levels, reaching roughly one in twelve members of the entering cohort.” The university has been forced to redesign remedial math to cover elementary-school material and create an entirely new course to reteach high-school algebra and geometry.  Senator Niello requested information regarding how widespread this problem may be at other campuses. The increase in remedial classes indicates that many California high schools are graduating students who lack necessary math and reading skills, despite receiving 4.0 or higher grade point averages. Senate Republicans will continue advocating for sufficiently funding UC and CSU, and for accountability in high school preparedness.  Key Topics to be Heard Next Week: Budgets for TK–12 schools, which may see an increase of nearly $22 billion over three years. The hearing will also cover the status of local schools’ budgets.  

* Senator Niello 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) 

Regulation of Gasoline Refineries. The subcommittee discussed a $1.3 million budget request from the California Energy Commission (CEC) to continue efforts to impose penalties on gasoline refiners for excessive revenues and minimum supply requirements. If implemented, these regulations are likely to further increase the price of gas. Senator Steven Choi (R-Irvine) noted that gasoline is an essential commodity and pointed out that California’s overregulation is driving up gas prices and forcing refineries to close. The Senator strongly urged the CEC to consider the impact of the state’s heavy-handed regulation on refineries, resulting in the most expensive gas in the country and increasing the cost-of-living for all Californians. The item was held open for a vote at a future hearing.

Key Topics to be Heard Next Week: Subcommittee #2 will not meet next week.

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

Subcommittee #3 did not meet this week. 

Key Topics to be Heard Next Week:  Several programs that aid elderly and disabled Californians, including Medicare enrollment assistance, Meals on Wheels nutrition, assisted living facility licensing, and low-income housing supports. 

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

Subcommittee #4 did not meet this week.

Key Topics to be Heard Next Week: A request from the Department of Financial Protection and Innovation to provide ongoing fee-supported resources to continue the California Consumer Financial Protection and Debt Collectors programs.

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

911 System Reset Precariously Positioned. The subcommittee discussed the overdue and problem-plagued Next Generation 911 project overseen by Governor Newsom’s Office of Emergency Services (OES). The project is intended to replace the state’s legacy 911 system with a modern version that helps emergency calls reach the correct dispatch center faster using improved digital mapping technology. However, after spending $455 million over six years, the system is still not operational at 95 percent of dispatch centers, and the state risks getting nothing for all its efforts so far. OES recently decided to scrap its current regional approach and solicit bids for a statewide provider contract. The nonpartisan Legislative Analyst’s Office cautioned that OES has not yet answered fundamental questions, such as the nature and scope of the problems leading to the course change and whether the new approach will actually solve those problems. Senator Kelly Seyarto (R-Murrieta), a former firefighter and first responder, called for a joint legislative oversight hearing to examine the program and address those concerns.

Key Topics to be Heard Next Week: State prison issues, including the closure of the California Rehabilitation Center (the state prison in Norco) and the administration of corrections-related grants by the Board of State and Community Corrections.