Supplemental Report of the 2025-26 Budget Act

TO: AGENCY SECRETARIES DEPARTMENT HEADS BOARDS AND COMMISSIONS The Supplemental Report of the 2025-26 Budget Act contains statements of legislative intent that were adopted during deliberations on the 2025-26 budget package. Please distribute your responses to the supplemental report, and any other report or document you are required to submit, to the Joint Legislative Budget Committee (JLBC), as follows: An Electronic Copy of the Report and Transmittal Letter to Each of the Following: • Joint Legislative Budget Committee: Hans.Hemann@sen.ca.gov for distribution to the JLBC Members. Hon. Scott Wiener, Chair, Joint Legislative Budget Committee 1020 N Street, Room 553, Sacramento, CA 95814 • Legislative Analyst's Office: LAO.Secretary@lao.ca.gov 925 L Street, Suite 1000, Sacramento, CA 95814 • Office of the Chief Clerk of the Assembly: Agency.Reports@asm.ca.gov Ms. Sue Parker, Chief Clerk of the Assembly Room 3196, State Capitol, Sacramento, CA 95814 • Secretary of the Senate: Senate.AgencyReports@sen.ca.gov Ms. Erika Contreras, Secretary of the Senate State Capitol, Room 307 Sacramento, CA 95814 • Legislative Counsel Bureau: Agency.Reports@lc.ca.gov Office of Legislative Counsel Indexing Division 925 L Street, Suite 1105, Sacramento, CA 95814-3703 In the report, as well as in your transmittal letter to Senator Wiener, please cite the 11-digit budget item number(s) and the budget year or other statutory reference to which the response relates. If you have any questions, you may contact the Legislative Analyst’s Office at (916) 445-4656. Supplemental Report of the 2025-26 Budget Act Containing Statements of Intent And Requests for Studies Adopted by the Legislature Compiled by the L E G I S L A T I V E A N A L Y S T ’ S O F F I C E October 2025 SUPPLEMENTAL REPORT OF THE 2025-26 BUDGET ACT Table of Contents Legislative, Judicial, and Executive Item 0530-001-0001—California Health and Human Services Agency. .....................................3 Item 0690-490 (Reappropriating Item 0690-101-0001, 2024-25 Budget Act)— Governor’s Office of Emergency Services .............................................................................3 Health and Human Services Item 4170-001-0001—California Department of Aging...............................................................5 Item 4300-001-0001—Department of Developmental Services ................................................6 LEGISLATIVE ANALYST’S OFFICE 2 SUPPLEMENTAL REPORT OF THE 2025-26 BUDGET ACT L , J , e egisLative udiciaL and xecutive Item 0530-001-0001—California Health and Human Services Agency 1. Employment Outcomes Reporting. The California Health and Human Services Agency (CalHHS) shall coordinate with the Department of Developmental Services (DDS), the Department of Rehabilitation (DOR), and the State Council on Developmental Disabilities to submit a written update on access to employment services and outcomes for individuals served by these three entities to both the relevant budget subcommittees and policy committees of each house of the Legislature, as well as the Legislative Analyst’s Office. The update shall be provided no later than March 1, 2026, and annually thereafter through March 1, 2028, and will include the most updated information available. The annual update shall include, but not be limited to, the following items: (a) Aggregated participation data and available information for individuals with an intellectual/developmental disability participating in employment services (such as tailored day services, paid internships, and other types of employment-focused services provided by regional centers). This data may be displayed in a format the Administration deems appropriate and shall be accompanied by a written description of any identified barriers to employment. (b) A brief written description of aggregate employment and service outcomes for individuals who phased out of subminimum wage employment, including for individuals who have not transitioned to competitive, integrated employment, pursuant to Chapter 339 of 2021 (SB 639, Durazo), including any identified barriers to accessing new services. This shall include updated versions of the “Service Codes Individuals in [Subminimum Wage] Transitioned to by Regional Center” spreadsheets previously posted monthly on the DDS Employment Services web page (https://www.dds.ca.gov/ services/work-services/). (c) The number of service providers contracted to provide Coordinated Career Pathways (CCP) services by regional center, including the following information: (i) For any regional center that has at least one service provider contracted to provide CCP, a brief written statement of best practices. (ii) Most recent available total spending on the CCP service code statewide by fiscal year, including the breakdown between the Career Pathway Navigator (NAV) and Customized Employment Specialist subcodes. (d) A description of how CalHHS, DDS, DOR, and regional centers coordinate to support transitions into employment services for students exiting high school or post-secondary education. Item 0690-490 (Reappropriating Item 0690-101-0001, 2024-25 Budget Act)— Governor’s Office of Emergency Services 1. Law Enforcement Mutual Aid System. On or before March 1, 2026, and annually thereafter for three years, the Governor’s Office of Emergency Services shall submit a report on the Law Enforcement Mutual Aid Assistance program to the Joint Legislative Budget Committee and LEGISLATIVE ANALYST’S OFFICE 3 SUPPLEMENTAL REPORT OF THE 2025-26 BUDGET ACT the chairpersons of the budget committees of both houses of the Legislature. The report shall include, but is not limited to, all the following: (a) The problems the Law Enforcement Mutual Aid Assistance program supported by funds appropriated in Item 0690-101-0001, 2024-25 Budget Act, as reappropriated by Item 0690-490, 2025-26 Budget Act, or any successor program established pursuant to its provisions, are designed to address. (b) How the use of these funds has or will address such problems. (c) For each completed fiscal year since the inception of the program: (i) The total number of local law enforcement agencies that received funds and their characteristics, with particular focus on those characteristics relevant to the problems to be addressed. (ii) The type and duration of the events for which funds were provided. (iii) Relevant financial data, including, but not limited to, program expenditures, reimbursements received from federal or other sources, and average days to payment for outlays made to local agencies through the program. LEGISLATIVE ANALYST’S OFFICE 4 SUPPLEMENTAL REPORT OF THE 2025-26 BUDGET ACT H H s eaLtH and uman ervices Item 4170-001-0001—California Department of Aging 1. No Wrong Door (NWD) and Aging and Disability Resource Connections (ADRCs). It is the Legislature’s intent to continue moving toward the development and implementation of the NWD system for long-term services and supports for older adults and people with disabilities, including, but not limited to, efforts through ADRCs. In pursuit of this goal, on or before, March 1, 2026, the California Department of Aging (CDA) shall provide the Legislative Analyst’s Office and the fiscal committees of the Legislature with a report detailing the various options and next steps for implementing a NWD system, and what steps would be necessary to build out a sustainable ADRC network in California, including any existing funds or alternative funding options for supporting these efforts. The report shall identify any challenges to implementing the NWD system and identify ways of addressing those challenges. The report shall also provide estimated costs for implementing each portion of the NWD system, including expanding the (ADRC network to cover all areas of the state and integrating the ADRC program into a broader NWD system for long-term services and supports including any existing funds or alternative funding options for supporting these efforts. Any request for resources to implement the system will be subject to review and approval through the annual budget process. Additionally, the report shall discuss the process for establishing Memorandums of Understanding (MOU) with the various government agencies that may participate in the NWD system, and a summary of what objectives each MOU could substantively include, which entities could be involved for each, and the timing possibilities to realize the objectives of each. The report shall also include updates and outcomes on CDA’s existing initiatives regarding the NWD system, including, but not limited to, the following: (a) Updates on the progress of the consultant hired in 2024 to research the best practices for developing, implementing, and operating a NWD system in other states. (b) Updates on the development of the State Leadership Council consisting of the CDA, Department of Health Care Services, Department of Rehabilitation, Department of Social Services and Department of Developmental Services—established to develop the policies, operational standards and procedures, and configuration of the NWD system and the NWD resource hub. (c) Updates on the data repository currently under development (and funded by leveraging ADRC funds) to centrally store and publicly report information about aging programs. (d) Summarize the findings of the ADRC strengths, weaknesses, opportunities, and threats analysis and the resulting business plan. Item 4300-001-0001—Department of Developmental Services 1. Proposed Life Outcomes Improvement System (LOIS) Information Technology (IT) Project. Beginning October 1, 2025, the Department of Developmental Services (DDS) shall submit quarterly written updates to both the relevant budget subcommittees and policy committees of each house of the Legislature, as well as the Legislative Analyst’s Office, on DDS’ proposed LOIS IT project. (The first update shall pertain to the quarter beginning July 1, 2025 through September 30, 2025, inclusive.) The written updates shall include a plain language description of functionalities LEGISLATIVE ANALYST’S OFFICE 5 SUPPLEMENTAL REPORT OF THE 2025-26 BUDGET ACT and services to be provided using the LOIS IT project and general progress toward completing these functionalities, and, at a minimum, the following: (a) The current status of the proposed project in the California Department of Technology’s (CDT’s) Project Approval Lifecycle, including identification of any updated submissions to CDT to reflect the name change from four prior related IT projects—the Uniform Fiscal System Modernization, Consumer Electronic Records Management System, Electronic Health Record, and Reimbursement System IT projects—to the LOIS project. (b) The preliminary baseline cost and schedule of the proposed project and any updates thereafter. If, at the time of an update, DDS has not completed the Stage 2 Alternatives Analysis of the Project Approval Lifecycle, DDS shall provide the “rough order of magnitude” estimate included in the Stage 1 Business Analysis. (c) An accounting of project expenditures to date, including expenditures undertaken for the four prior related IT projects that are being incorporated into the LOIS, and the remaining balances of appropriated funds at the time of the quarterly submission. (d) A list of the activities undertaken by DDS during project planning to engage stakeholders, as well as identification of the ways in which the stakeholder feedback collected in calendar year 2025 differs from feedback collected with respect to the four prior related IT projects. This shall include a list of stakeholders with whom DDS has engaged. (e) Status updates on DDS’s planning document submission to United States Centers for Medicare and Medicaid Services. (f) The preliminary ways in which the proposed project will integrate with recommendations presented in the Master Plan for Developmental Services. LEGISLATIVE ANALYST’S OFFICE 6