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Prepared by Precision Advocacy
As of the afternoon of February 19, 807 Assembly bills are in print and 452 Senate bills. This leaves roughly 500-600 Assembly bills and 200-300 Senate bills remaining to be introduced prior to the February 21 deadline. Bill introductions have been heavily focused on wildfire, homeowner’s insurance, and housing policy so far. We will report more specifically on the legislation introduced once all the bills are introduced. There are a significant number of spot bills and intent bills that will also be amended over the next month to contain substantive policy changes.
Insurance Commissioner Rejects State Farm’s Proposed Emergency Rate Hike
Insurance Commissioner Ricardo Lara denied State Farm Insurance’s request for an emergency rate hike last week. If approved, the increase would have raised rates by 22% on average for State Farm’s California customers.
In a letter to State Farm, Commissioner Lara requested that the company appear in person later this month, writing “the burden is on State Farm to demonstrate that interim relief is warranted under the circumstances. My goal is to make sure policyholders do not have to pay more than is required. Considering the recent Los Angeles wildfires, State Farm’s customers need real answers about why they are being asked to pay more and what responsibility the company’s leadership is taking to get its financial house in order.” Commissioner Lara also acknowledged that his staff had recommended approval of the rate hike.
In a response, State Farm wrote that it “must seriously consider its options within the California insurance market going forward.”
The denial to State Farm follows the Commissioner’s approval for the state FAIR Plan to levy an assessment totaling $1 billion on its member insurance companies to ensure that it has sufficient operating capital to continue paying policyholder claims without interruption.
Under new regulations that recently took effect as part of Commissioner Lara’s Sustainable Insurance Strategy, insurance customers will have to shoulder 50% of any assessment through a temporary fee added to their premiums. Before the new rules took effect, the plan would have received the additional funds directly from its member companies, which would have then tried to recoup that money by raising premiums.
Most California home and fire insurance customers will see temporary fees added to their insurance bills as part of the assessment, marking the first time insurance companies have imposed an assessment directly on customers. Insurance companies will need to submit filings with the insurance department before they can collect the one-time fees from their customers, said Michael Soller, department spokesperson. It is unclear what percentage of policyholders’ premiums the fees will be based on. The FAIR Plan itself will not be imposing the fees.
The Los Angeles fires collectively burned over 47,900 acres, destroying or damaging more than 16,250 structures. A study released by the UCLA Anderson School of Management estimates total property and capital losses could range between $95 billion and $164 billion, with insured losses estimated at $75 billion.
Legislative Analyst’s Child Welfare Budget Comments
Per usual, the Legislative Analyst’s Office (LAO) has begun releasing analysis and recommendations to the legislature in response to the governor’s January budget proposal. Over the last week, the LAO released its Child Welfare brief among others. Related to the governor’s child welfare budget proposals, the LAO comments and suggests inquiries for the legislature on the Continuum of Care tiered rate structure and BH-CONNECT. The county has the opportunity to weigh in on any of these proposals or the LAO’s suggestions or comments with the budget committees and legislative delegation as appropriate.
Continuum of Care Tiered Rate Structure: California has reformed its foster care system over the past decade through Continuum of Care Reform (CCR), including foster care payment rates. The state will implement a new tiered rate structure in 2027-28, which uses the Child and Adolescent Needs and Strengths (CANS) assessment to determine a youth’s needed level of care and corresponding rate. To continue preparing necessary automation systems for implementation, the governor’s proposed budget includes $16 million ($11 million General Fund) in 2025-26 for the California Statewide Automated Welfare System (CalSAWS) and CWS-CARES. In addition, the budget proposal includes $1.7 million ($1.2 million General Fund) to support training and fidelity tools for counties on CANS assessments.
Questions from the LAO include:
- What will the proposed training and fidelity tools for counties on CANS assessments entail?
- Aside from CANS assessments, are there other processes implemented as part of CCR with which counties could benefit from state assistance prior to implementing the tiered rate structure?
- What are the major implementation milestones that will need to be completed prior to the initial roll out of the new rates to families in 2027? Has the department developed a roadmap indicating anticipated timing for achieving these milestones that could be shared with the legislature?
BH-CONNECT: BH-CONNECT is a federal Medicaid waiver demonstration project that aims to enhance community-based behavioral health care services using Medi-Cal funding. The project seeks to deliver early interventions to reach children and families to help prevent entry into or deepening involvement with the child welfare system, including activity funds, transitional rent, and the establishment of managed care plan child welfare liaisons. The demonstration period is January 1, 2025, through December 31, 2029, and around $8 billion in total funding will support the various components of the project.
The LAO notes that implementing these activities will require close coordination between the Department of Social Services and the Department of Health Care Services at the state level, and between child welfare and mental health staff at the county level. It suggests that the legislature inquire regarding what coordination has occurred/is occurring at the state level, and what guidance will the state departments provide to county agencies.
January Revenues
The Department of Finance (DOF) and State Controller released reports on January’s revenues as compared to the 2025-26 governor’s budget proposal.
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Tax Revenues
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DOF January
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DOF Fiscal YTD
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Controller Fiscal YTD
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Personal Income
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$174 million below forecast
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$2.08 billion above forecast
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$2.318 billion above forecast
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Corporation
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$535 million below forecast
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$186 million below forecast
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$265.208 million below forecast
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Sales and Use
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$48 million below forecast
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$96 million below forecast
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$949.019 million above forecast
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Total Revenues
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$361 million below forecast
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$2.234 billion above forecast
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$3.387 billion above forecast
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Upcoming Hearings
Agendas are typically posted on the committee websites in the Assembly and Senate a few days prior to the hearings. To view hearings after they take place, you may access them in the Assembly or Senate media archives where they are generally available within a few hours of committee adjournment.
Monday, February 24, 2025, 2:30 p.m.
Assembly Budget Subcommittee No. 1 on Health
Addis, Chair
Location: State Capitol, Room 127
Item No. Description
4265 Department of Public Health
- Annual State of the State's Public Health Report
- Oversight Issue: Report on Future of Public Health funding, ADAP Funding, others
- Department Update: Avian Flu Response, Wildfires Response
4120 Emergency Medical Services Authority
- Budget Overview and Budget Change Proposal
Tuesday, February 25, 2025, 9 a.m.
Senate Joint Hearing Public Safety and Budget and Fiscal Review Subcommittee No. 5 on Corrections, Public Safety, Judiciary, Labor, and Transportation
Arreguin and Richardson, Chairs
Location: 1021 O Street, Room 2200
Informational Hearing: Implementation of Proposition 36
Tuesday, February 25, 2025, 1:30 p.m.
Assembly Budget Subcommittee No. 5 on State Administration
Quirk-Silva, Chair
Location: State Capitol, Room 447
Item No. Description
0559 Labor and Workforce Development Agency
7100 Employment Development Department
7350 Department of Industrial Relations
7120 California Workforce Development Board
7300 Agricultural Labor Relations Board
Tuesday, February 25, 2025, 1:30 p.m.
Senate Environmental Quality
Blakespear, Chair
Location: 1021 O Street, Room 2200
Informational Hearing: Subject: Extended Producer Responsibility in Action: Policy, Progress, and Pitfalls
Wednesday, February 26, 2025, 9 a.m.
Assembly Joint Hearing Emergency Management and Housing and Community Development and Economic Development, Growth, and Household Impact
Ransom, Haney, Solache, Chairs
Location: State Capitol, Room 437
Oversight Hearing: Recovering and Rebuilding after the Los Angeles Wildfires
Wednesday, February 26, 2025, 9:30 a.m.
Assembly Budget Subcommittee No. 4 On Climate Crisis, Resources, Energy, And Transportation
Bennett, Chair
Location: State Capitol, Room 447
Item No. Description
Various Prop. 4 - Wildfire and Forest Resilience Spending Plan
3540 Department of Forestry and Fire Protection
3480 Department of Conservation
3340 California Conservation Corps
3125 California Tahoe Conservancy
3110 Special Resources Programs
Tahoe Regional Planning Agency
0509 Governor's Office of Business and Economic Development
Wednesday, February 26, 2025, 1:30 p.m.
Assembly Budget Subcommittee No. 2 on Human Services
Jackson, Chair
Location: State Capitol, Room 444
Item No. Description
5180 Department of Social Services
- CalWORKs Program
- CalFresh and Food Programs
- Immigration and Refugee Programs
- Guaranteed Income Pilot Program
- Program Updates and Priority Issues of Interest
- Governor's Budget Proposals
Wednesday, February 26, 2025, 1:30 p.m.
Senate Joint Hearing Health and Public Safety
Menjivar and Arreguin, Chairs
Location: 1021 O Street, Room 1200
Informational Hearing: California Advancing and Innovating Medi-Cal (CalAIM): Enhanced Care Management, Community Supports, and Justice Involved Reentry Initiatives
Thursday, February 27, 2025, 9:30 a.m. or upon adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 1 on Education
Laird, Chair
Location: 1021 O Street, Room 2100
Item Description
6100 Department of Education
- State of Education
- Proposition 98 Overview
- Local Control Funding Formula
- Fiscal Health of School Districts
- Disaster Recovery for Schools
Thursday, February 27, 2025, 9:30 a.m. or upon adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 2 on Resources, Environmental Protection, and Energy
Allen, Chair
Location: 1021 O Street, Room 2200
Item Description
0540 Natural Resources Agency
0650 Governor's Office of Land Use and Climate Innovation
0690 Office of Emergency Services
3125 California Tahoe Conservancy
3340 California Conservation Corps
3360 Energy Resources Conservation and Development Commission
3480 Department of Conservation
3540 Department of Forestry and Fire Protection
3600 Department of Fish and Wildlife
3640 Wildlife Conservation Board
3760 State Coastal Conservancy
3790 Department of Parks and Recreation
3810 Santa Monica Mountains Conservancy
Thursday, February 27, 2025, 9:30 a.m. or upon adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 2 on Resources, Environmental Protection, and Energy
Allen, Chair
Location: 1021 O Street, Room 2200
Item Description
3825 San Gabriel and Lower Los Angeles River and Mountains Conservancy
3845 San Diego River Conservancy
3850 Coachella Valley Mountains Conservancy
3855 Sierra Nevada Conservancy
3860 Department of Water Resources
3875 Sacramento-San Joaquin Delta Conservancy
3940 State Water Resources Control Board
4700 Department of Community Services and Development
8570 Department of Food and Agriculture
Thursday, February 27, 2025, 9:30 a.m. or upon adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 3 on Health and Human Services
Weber Pierson, Chair
Location: 1021 O Street, Room 1200
Item Description
4260 Department of Health Care Services
- Medi-Cal Overview
- Medi-Cal Provider Rates and Access
- Medi-Cal Managed Care
- Medi-Cal Dental Services
- Medi-Cal Pharmacy
Thursday, February 27, 2025, 9:30 a.m. or upon adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 4 on State Administration and General Government
Cabaldon, Chair
Location: State Capitol, Room 113
Item Description
Housing and Civil Rights Funding and Program Oversight
0515 Business, Consumer Services, and Housing Agency
0968 Tax Credit Allocation Committee
2240 Department of Housing and Community Development
2245 California Housing Finance Agency
Thursday, February 27, 2025, 9:30 a.m. or upon adjournment of Session
Senate Budget and Fiscal Review Subcommittee No. 5 on Corrections, Public Safety, Judiciary, Labor, and Transportation
Richardson, Chair
Location: State Capitol, Room 112
Item Description
0250 Judicial Branch
0690 Office of Emergency Services
2720 Department of California Highway Patrol
7870 California Victim Compensation Board
Governor’s Press Releases
Below is a list of the governor’s press releases beginning February 12.
February 19: Governor Newsom proclaims A Day of Remembrance: Japanese American Evacuation 2025
February 19: The Golden State will soon be home to the world’s most renowned athletic events
February 19: Governor Newsom proposes $125 million in mortgage relief to benefit victims of recent natural disasters
February 19: $300 million of illicit fentanyl seized in California since 2023
February 14: Governor Newsom announces appointments 2.14.25
- Melissa Stone, of Elk Grove, has been appointed Chief Deputy Director at the Department of Child Support Services
- Stephanie Weldon, of McKinleyville, has been appointed Deputy Director of the Office of Health Equity at the Department of Public Health
- Melissa Gear, of Elk Grove, has been appointed Deputy Director of Legislative and Governmental Affairs at the Department of Health Care Access and Information
- Daniel Millsap, of Folsom, has been appointed Deputy Director of the Real Estate Services Division at the California Department of General Services
- Katie Hardeman, of Sacramento, has been appointed Chief Deputy Executive Director at the State Board of Education
- Richard Roth, of Riverside, has been appointed to the Unemployment Insurance Appeals Board
- Seanna Griffis, of Sacramento, has been appointed Special Assistant to the Secretary and Undersecretary at the Government Operations Agency
- Christopher Contreras, of Northridge, has been appointed to the Behavioral Health Services Oversight and Accountability Commission
- Makenzie Cross, of Elk Grove, has been appointed to the Behavioral Health Services Oversight and Accountability Commission
- Robert Callan, Jr., of San Francisco, has been appointed to the Behavioral Health Services Oversight and Accountability Commission
- Jody Kolbach, of Watsonville, has been appointed to the 14th District Agricultural Association Santa Cruz Fair Board
February 14: State and local actions to pre-deploy resources for storms helps save lives
February 14: Governor Newsom announces judicial appointments 2.14.25
- Phu Nguyen, of Los Angeles County, has been appointed to serve as a Judge in the Los Angeles County Superior Court.
- Sonia Dujan, of Ventura County, has been appointed to serve as a Judge in the Los Angeles County Superior Court
- Mike Madokoro, of Los Angeles County, has been appointed to serve as a Judge in the Los Angeles County Superior Court
- James Montgomery Jr., of Los Angeles County, has been appointed to serve as a Judge in the Los Angeles County Superior Court
- Jacob Yim, of Los Angeles County, has been appointed to serve as a Judge in the Los Angeles County Superior Court
- Helen Yang, of Los Angeles County, has been appointed to serve as a Judge in the Los Angeles County Superior Court
- Louis Parise, of Los Angeles County, has been appointed to serve as a Judge in the Los Angeles County Superior Court
- Randall Harr, of Shasta County, has been appointed to serve as a Judge in the Modoc County Superior Court
- Mickie Reed, of Riverside County, has been appointed to serve as a Judge in the Riverside County Superior Court
- Michael Martin, of Riverside County, has been appointed to serve as a Judge in the Riverside County Superior Court
- Chandra Reid, of San Diego County, has been appointed to serve as a Judge in the San Diego County Superior Court
- Mark McCannon, of San Francisco County, has been appointed to serve as a Judge in the San Mateo County Superior Court
- Jason Taylor, of Kings County, has been appointed to serve as a Judge in the Tulare County Superior Court
- Amy Van Sickle, of Ventura, has been appointed to serve as a Judge in the Ventura County Superior Court
February 14: Governor Newsom issues emergency proclamation to help Santa Cruz recover from destructive winter storms
February 14: Governor Newsom marks new milestone in Delta Conveyance Project
February 13: Governor Newsom cuts more red tape by further streamlining permitting laws to accelerate rebuilding Los Angeles
February 13: Governor Newsom announces appointments 2.13.25
- Vera Zakem, of Walnut Creek, has been appointed State Chief Technology Innovation Officer at the California Department of Technology
- Aaron Stockwell, of Fair Oaks, has been reappointed to the California Building Standards Commission
- Elham “Elley” Klausbruckner, of San Diego, has been reappointed to the California Building Standards Commission
- William Benedict, of Danville, has been appointed to the Board of Pilot Commissioners for the Bays of San Francisco, San Pablo, and Suisun
- Karen Tynan, of Fairfield, has been reappointed to the Board of Pilot Commissioners for the Bays of San Francisco, San Pablo, and Suisun
- Lynn Korwatch, of Alamo, has been reappointed to the Board of Pilot Commissioners for the Bays of San Francisco, San Pablo, and Suisun
- Mary-Ann Warmerdam, of Woodland, has been appointed to the 40th District Agricultural Association Yolo County Fair Board
- Phil Mercado, of Los Angeles, has been reappointed to the California Arts Council, where he has served since 2022
February 12: Governor Newsom announces appointments 2.12.25
- Kate Hoit, of Sacramento, has been appointed Deputy Secretary of Communications at the California Department of Veterans Affairs
- Shaun Spillane, of Gold River, has been appointed Chief Deputy Inspector General at the Office of the Inspector General
- Michael “Mike” Detoy, of Hermosa Beach, has been appointed to the California Public Employees’ Retirement System Board of Administration
- Christopher Gonder, of Brawley, has been appointed to the Commission on Correctional Peace Officer Standards and Training
- Hellen Hong, of Los Angeles, has been reappointed to the Civil Rights Council, where she has served since 2021
- Hugh Crooks, of Los Angeles, has been reappointed to the California Veterans Board, where he has served since 2017
February 11: Governor Newsom announces appointments 2.11.25
- Karen Morrison, of Sacramento, has been appointed Director at the California Department of Pesticide Regulation
- Nicholas Lutton, of Fresno, has been appointed to the State Council on Developmental Disabilities
- Eric Bergersen, of Long Beach, has been appointed to the Physician Assistant Board
- Ed Perez, of Sacramento, has been appointed to the Physician Assistant Board
- Drake Dillard, of Los Angeles, has been reappointed to the California Commission on Disability Access
- Jaqueline Jackson, of San Diego, has been reappointed to the California Commission on Disability Access
February 11: With biggest winter storm of the season looming, California takes early, proactive steps to protect communities and harden burn scar areas
February 11: Governor Newsom issues executive order to support childcare providers impacted by LA fires
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