Budget Spotlight - 04/10/2026

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

Senators Challenge Nonprofit's Wasteful Spending. The subcommittee held a special oversight hearing on Tuesday, April 7, to further investigate questionable spending by the Strong Reader Partnership, a nonprofit unnecessarily established by the California State Library to oversee grant funds intended for the Dolly Parton Imagination Library. Senator Shannon Grove (R-Bakersfield)* and Senator Sasha Pérez (D-Pasadena) asked in-depth questions regarding the nonprofit's expenditure of $1.1 million on vendors who generated virtually no products. As described in the hearing's detailed agenda, out of the $1.1 million, only $5,000 went to the program's clear purpose of distributing books to children in need. In contrast, a grant of $1.5 million appropriately sent to the Dolly Parton Imagination Library resulted in the purchase of more than 1 million books for children. Senator Grove pointedly challenged the witnesses from the now-defunct nonprofit to defend their apparent wasteful spending and interrogated the nonprofit director about activities that may have amounted to prohibited lobbying. Senator Pérez announced that a follow-up audit would take place to further delve into this wasteful spending.

Governor Proposes Cutting Middle Class Scholarship Funds in Half. In its hearing on Thursday, April 9th, the subcommittee heard testimony regarding college financial aid. The Governor proposed reducing the Middle Class Scholarship funds by $541 million in 2026-27, which would be a reduction of more than 50 percent from the nearly $1.1 billion estimated for these scholarships in 2025-26. This action would cut students' assistance levels from covering 35 percent of their unmet costs this year to only 17.5 percent next year, including for continuing students who already received the higher level in the current school year. Senator Rosilicie Ochoa Bogh (R-Yucaipa) believes that such a cut would disrupt students' financial stability and that the Governor should look elsewhere than college students to make cuts to balance the budget.

Key Topics to be Heard Next Week: The subcommittee will not meet next week.

* Senator Grove appeared as an invited member since she and then-Senate Pro Tempore Toni Atkns jointly authored SB 1183 (2022), which authorized state funds for the Dolly Parton Imagination Library.

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

Aviation Fuel Tax Credit Proposal Raises Cost and Road Funding Concerns. The subcommittee discussed the Governor's proposal to create a tax credit against diesel excise tax liability for producers of sustainable aviation fuel (SAF), intended to incentivize lower-carbon alternatives to conventional jet fuel. The proposal would initially shift hundreds of millions of dollars in diesel excise tax revenues to subsidize this credit, with the shift potentially growing to over $1 billion in future years, resulting in less funding for California's roads and highways. Senator Steven Choi (R-Irvine) questioned whether aviation is the right place to focus, noting it represents roughly 1 percent of California's emissions and asking whether that justifies a high-cost intervention at the expense of our roads. Members also discussed the risk that this alternative production method could increase gasoline and diesel prices by tightening renewable diesel supply and raising compliance costs with the state's various carbon tax programs. This item was held open for a vote at a future hearing.

Key Topics to be Heard Next Week: Forestry and fire protection, state parks, and land conservancy issues.

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

Calling on Governor Newsom to "Let California Kids Hear." The subcommittee heard from a coalition of parents of hearing-impaired children, called "Let California Kids Hear," that offered a proposal to add pediatric hearing aids as a commercial health insurance benefit. More than 20,000 children in California lack coverage for medically necessary hearing aids. Since Governor Newsom took office in 2019, multiple bipartisan legislative efforts to help these children have been blocked, vetoed, or greatly scaled back by the Governor. Instead of providing the hearing aid coverage to these children, the Governor currently relies on a highly inefficient workaround that has spent $30 million of state tax dollars but has only served 266 children. Senate Republicans call on the Governor to end this wasteful program and to finally provide the pediatric hearing aid coverage that these children deserve. The subcommittee will consider voting on this issue later this spring.

Key Topics to be Heard Next Week: The subcommittee will not meet next week.

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

Facing Years of Structural Deficits, Governor's Budget Continues a Pattern of Expansion. Budget Subcommittee #4 met to discuss the Governor's proposal to shift the Farm to School Pilot Program to permanent status, increasing General Fund expenditures by $25 million annually. While the program may provide some benefits, it does not address an urgent health or safety need. The state and federal governments already allocate nearly $5 billion annually to school nutrition programs, making this program redundant. Recent state investments have also provided schools with extra resources to improve meal quality and incorporate locally sourced foods. Approving this expansion risks duplicating efforts rather than improving outcomes. Senator Roger Niello (R-Fair Oaks) commented that the Legislature's priority should be to assess current long-term obligations with clear accountability and measurable results to best determine where the state's limited resources should be focused.

Key Topics to be Heard Next Week: The Governor's Office of Business and Economic Development and the Governor's Land Use and Climate Innovation budgets.

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

Pedophiles and Elderly Parole - A Dangerous Combination. The subcommittee discussed various issues related to the California Department of Corrections and Rehabilitation, including a request for additional resources for the California Sex Offender Management Board. Members of the subcommittee raised concerns about recent decisions to grant "elderly parole" to several sex offenders who were convicted of preying on minors, one of whom recently admitted that he still has pedophilic fantasies. Senator Kelly Seyarto (R-Murrieta) highlighted the need to fix the flawed parole process, saying "[The Board was] working within the framework that [the Legislature has] given them. We can't have a framework that allows for somebody who admits to still having fantasies about molesting children to be eligible for parole." Unfortunately, the Governor has not proposed any changes to elderly parole. Senate Republicans believe the Legislature must act to fix this badly flawed program before more Californians are harmed.

Key Topics to be Heard Next Week: Budget proposals for the Judicial Branch, the Board of State and Community Corrections, and the State Public Defender.

Related Topics

• Budget