[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6580368,"mediaKeyId","3100731-c976694fdf1004bb478ce0fef1737093","parentId",3100731,"title","FCMAT report and Los Angeles County warn AB 218 revival window could strain local budgets","audioSeconds",2244,"startMs",7201000,"endMs",9445000,"viewUrl","/Search/View?dp=1&key=3100731-c976694fdf1004bb478ce0fef1737093&start=7201&end=9445","thumbnailUrl","https://assets.pipeline.soar.com/3100731-c976694fdf1004bb478ce0fef1737093/thumbnail_7201000.jpg","articleUrl","/articles/6580368/California/FCMAT-report-and-Los-Angeles-County-warn-AB-218-revival-window-could-strain-local-budgets","mediaUrl","https://secure.pipeline.soar.com/6580368-4ccd9c20ae432bff7cd5ceabeae1ace1/orig.mp4?Expires=1771081526&Signature=KoECP39ltVd6hluJ~fg~XMHdEY7cIujKJ9ZlXVV0e-tFdIkTXZzYXJXC1LFPWod-c52k7yieTuxsZOyIlj8dL8auPDNMVqqtwYIDjpkola30Ozn0DkSvcKqM0ZHcqplPG1BpEM5YWkaAztOshRPqwjUHHpcyKnAZA0XGrJaBJk4SewxXPGRgWr1VYvIbJz5M2DYfEg5bioS3JXIW8XcBWVBxjcU5Fiy5RbVvsZYVOIuW0Pl8Rs-sK8OG4PLB6b1XPG9yoSCICBemgm3bNSolQRZPerFyAiRF0N~RUI2AbqVhQ4Njue6ujS9HxnmAFE2DXV1hb3OIb9UvYcFsQN-5rA__&Key-Pair-Id=KUT5TJCACFTXG","author","California State Assembly","date","2025-04-23T00:00:00Z","article","The California State Assembly Budget Subcommittee on Accountability and Transparency heard detailed testimony on the fiscal consequences of AB 218, the law that expanded the statute of limitations for certain childhood sexual‑abuse claims. The state’s Fiscal Crisis & Management Assistance Team (FCMAT) presented a study outlining financing options, data gaps and prevention recommendations for public agencies facing claims and settlements.

Michael Fine, chief executive officer of FCMAT, said the January report contains 22 recommendations across four themes: improving data collection and classification for claims, identifying timing and financing mechanisms for judgments and settlements, studying a victims’ compensation fund, and emphasizing prevention. \"The report concludes that there is a data and information gap driven by the lack of consistently classified and reported data on the subject that will, fully convey the magnitude of the challenge,\" Fine told the committee.

Los Angeles County’s chief executive, Fisia Davenport, described the county’s tentative $4 billion settlement under AB 218 and outlined the fiscal consequences if the board approves the plan. Davenport said the county is likely to use a mix of reserves, rainy‑day funds and borrowing to meet the obligation and that the county anticipates paying \"hundreds of millions of dollars annually through 2030,\" with additional debt service continuing beyond that date. She said departments were asked to prepare curtailment plans to reduce spending and that the county is pursuing state legislative tools that could ease long-term impacts.

Why it matters: School districts, counties and other public entities may face retroactive premiums, special assessments from joint risk pools, direct settlement costs and long-term debt service. FCMAT told the subcommittee that lack of consistent statewide data complicates planning, that insurance market structures (public entity pools and reinsurance layers) produce possible retroactive assessments, and that prevention measures are essential to reduce future liability.

Public‑sector and nonprofit stakeholders who testified at the hearing described immediate operational impacts:
- The County Health Executives Association said 61 local health departments lost nearly $400 million in federal pandemic‑era funding abruptly terminated by HHS in late March, undermining public‑health staffing and infrastructure.
- County and school officials described rising retroactive assessments by school risk pools, difficulty locating historical insurance records for decades‑old claims, and the threat that foster family agencies and other nonprofit providers could close because insurance costs have spiked. A coalition witness said roughly 220 foster family agencies face potential closure, affecting about 7,400 children.

FCMAT recommended studying a victims’ compensation fund modeled in part on the September 11 Victims Compensation Fund as an alternative mechanism to ensure survivors access redress without requiring each case to exhaust lengthy and costly litigation, and proposed timing and judicial‑validation mechanisms to enable financing without triggering constitutional debt limits.

No legislative action or appropriation was decided at the hearing. Committee members asked for continued work on data collection, financing options and prevention measures and noted several related bills in the Senate that are being considered to provide tools to public agencies.","mediaType","Video","parentTitle","Assembly Budget Subcommittee No. 7 on Accountability and Oversight","oneSentenceSummary","FCMAT presented a 22‑point report on fiscal implications of expanded childhood sexual‑assault claims under AB 218 and recommended funding, data and prevention options; Los Angeles County said a tentative $4 billion settlement would require drawing reserves and borrowing and could impose annual costs through 2030 and beyond.","taxTitle","California State Assembly, House, Legislative, California","taxId",17099,"location","California","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6580372,"University of California says federal grant cuts are halting research, harming students and patient care",2439,3838000,6277000,"/Search/View?dp=1&key=3100731-c976694fdf1004bb478ce0fef1737093&start=3838&end=6277","https://assets.pipeline.soar.com/3100731-c976694fdf1004bb478ce0fef1737093/thumbnail_3838000.jpg","/articles/6580372/California/University-of-California-says-federal-grant-cuts-are-halting-research-harming-students-and-patient-care","https://secure.pipeline.soar.com/6580372-1843ceb1b17bb757e22beec2cbf5fa49/orig.mp4?Expires=1771081526&Signature=O-fWWsYF5gekc4qnCSfCdwKnMK-Y6ZmUE4meL8-GEBFjWFpi468AGAkU3mAbSTN4x2DK8m2xTLwMgv4acuuPWMk48ulu9QetK8DuQNlAQGyhvq~ACqumaL4lZLx6JKaxfO83Ghw6fBbP~DpYV83fMJNYBOyqdsApAJMxejfRjZh3R1tKSbxlkNqsXONUU1NRNy4ZLzRDHTYt-0tQUSnd9fl6acWf3KQW1JlzyFJB2K4exfD6aKAK6Q47FovZU~e~Ypkso~4HISa4KozNyHBdEF5LowyU7GX3P95Cg9HIJzlXEArhEp7Ujavw6xgvT~obA0BOLtJm1l9ksuavVs6bLw__&Key-Pair-Id=KUT5TJCACFTXG","Katherine Newman, provost of the University of California, told the California State Assembly Budget Subcommittee on Accountability and Transparency that recent federal grant cuts and administrative actions are already disrupting UC research, student support and patient care.

\"That whole enterprise is now on a starvation diet,\" Newman said, describing the federal suspension and termination of awards and program reductions that she said have cost the UC system \"hundreds of millions of dollars\" in federal research funding. Newman told the panel that in 2023–24 the university received nearly $4 billion in federal research grants and that cuts and paused awards are affecting ongoing projects, graduate student support, and clinical trials.

Why it matters: UC research feeds the state economy through inventions, start-ups and high-skilled jobs and supports clinical trials and safety-net care. Newman said the loss of grant support undermines graduate fellowships, training programs for underserved students, and programs that support clinical research and patient care. She also warned of changes in visa and immigration enforcement that are reducing the attractiveness of U.S. campuses to international students; she said UC enrolls about 36,000 international students.

Details cited in testimony and Q&A:
- Newman said UC researchers average about five inventions per day and the system has produced more than 1,200 start-ups based on UC patents.
- She said the Department of Energy moved to cut facilities and administration (F&A) rates for grants and that legal challenges temporarily blocked that action; similar proposed NIH reductions would have cut more than $600 million from UC if implemented.
- Federal changes are shrinking graduate research fellowships, which Newman said will reduce paid opportunities for graduate students; she cited the National Science Foundation and other federal research programs being scaled back.
- Newman said UC students receive roughly $500 million annually in Pell Grant funding and that the bulk of Department of Education processing staff reductions and organizational changes raise operational risks for student aid.
- On health care, Newman said UCHealth is an important provider of Medi-Cal inpatient care and flagged that any cuts to Medicaid could be \"devastating\" to the university's safety-net hospitals.

Lawmakers pressed Newman for more detail on what clinical trials and programs have been interrupted and asked the university to provide lists and human-impact examples to aid legislative outreach. Newman said UC is pursuing legal challenges where possible, collaborating with other universities and industry partners, and continuing public communications about program impacts.

The committee heard that strategies to mitigate the damage could include state-level support, industry partnerships and, in discussion, possible bond or other financing mechanisms to sustain critical research, but no formal state action was adopted at the hearing.","UC provost told the Assembly subcommittee that recent federal actions have already canceled hundreds of millions in awards, threaten graduate support and clinical research, and could weaken California’s research-driven economy.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6580377,"Franchise Tax Board warns IRS staffing cuts could erode California revenue",1314,2473000,3787000,"/Search/View?dp=1&key=3100731-c976694fdf1004bb478ce0fef1737093&start=2473&end=3787","https://assets.pipeline.soar.com/3100731-c976694fdf1004bb478ce0fef1737093/thumbnail_2473000.jpg","/articles/6580377/California/Franchise-Tax-Board-warns-IRS-staffing-cuts-could-erode-California-revenue","https://secure.pipeline.soar.com/6580377-ac04056c8ebe32f5c9f29fb44319f33c/orig.mp4?Expires=1771081526&Signature=PIFFQ3gansyF7iyAgQJD5ER5B6UA5WGxPoTnaqtqFpJha2j34VKJGP~KupzicnTGpyeAB-FXxM~gY0GDZhN0j4elIYZI5f5Q~VkHFQZmhJzlFaqNMw3kg-3JIlIQMWwQFOLA43mRuWwT5d8yaIW776Ar95TN9L02uFi1r8zKLE6K1WPJviNqLiLeAd40uZ3-xDXm28IYXdxHslXMJCrn1qlzXPI6mSMZbvBS7nxiHXeus1WUxZSP4YVfso4Jne40e7rB0ocoIUcjzJs6jKc1a9wyWS70Pll-xpFYk6wGNbYFdghAm65M9G~I2PxkB5GWau9UsW-BuqK-6R2CifPzrw__&Key-Pair-Id=KUT5TJCACFTXG","At a hearing of the California State Assembly Budget Subcommittee on Accountability and Transparency, the Franchise Tax Board described how reductions in Internal Revenue Service staffing and related federal delays could dent state tax collections and complicate return processing.

Roger Lackey, representing the Franchise Tax Board, told the panel the state’s tax filing system depends heavily on federal forms, information reporting and timely IRS data. \"95% of taxpayers actually file electronically,\" Lackey said, describing how state returns depend on software schemas and federal information reporting that the Franchise Tax Board and the IRS share. He noted most California returns are prepared through tax software and by professionals, and that delays or changes at the federal level cascade into state processing.

The subcommittee said the risk is especially acute for corporate and large multinational audits that rely on sustained IRS enforcement. Chair Hart pressed the point: with federal enforcement staff declining, \"How are you gonna compensate in that environment and make sure that California gets the revenue that we expect from the companies that are operating here in California?\" Lackey responded that compliance programs are adjusted annually and that FTB works with partners to adapt to changing circumstances.

Why it matters: California’s income and corporate taxes are the state’s largest revenue sources. The subcommittee framed the hearing as a forward-looking review to inform the May revision of the state budget and requested follow-up information on specific data points discussed at the hearing.

Key details from the FTB testimony and committee exchanges include:
- The FTB said most returns are received electronically through commercial tax software; tax professionals prepare roughly 60% of returns.
- Typical refund processing timelines for taxpayers were described as seven to 10 days when filings are complete.
- The FTB flagged several federal–state partnerships that underpin enforcement and compliance, including fraud-prevention programs, offset programs that reconcile federal and state liabilities, information reporting programs (for example, the IRS-led reporting channels that states can opt into), and agreements to receive IRS audit and agent reports for state compliance work.
- The board discussed the “non filer” and other compliance streams that often rely on federal-provided information; when IRS data are delayed or limited, state compliance work can be impeded.

Committee follow-up and requests: Assemblymembers asked the FTB to provide committee staff with more detailed counts and trends for filers using individual taxpayer identification numbers (ITINs); Lackey agreed to report back. Members urged the administration and Legislature to consider contingency options, including targeted state investments in enforcement capacity if federal cooperation and staffing fall short.

The hearing also included a broader budget context presented later by the Department of Finance and other panels, but committee members singled out the FTB testimony as central to understanding near-term state revenue risk.

The subcommittee will consider the FTB’s follow-up data and the Department of Finance’s federal funding analyses as it prepares the May budget revision.","At an Assembly Budget Subcommittee hearing, the Franchise Tax Board described how reductions in IRS enforcement and federal delays could reduce state tax collections, and urged legislative follow-up on data and partnerships to protect California revenue.","actionData","errors"]

Article not found

FCMAT report and Los Angeles County warn AB 218 revival window could strain local budgets

University of California says federal grant cuts are halting research, harming students and patient care

Franchise Tax Board warns IRS staffing cuts could erode California revenue