Governor Gavin Newsom and state legislative leaders continue budget negotiations to hammer out the details of the 2023-2024 state budget and whether to include the infrastructure package proposed by the governor in May.
Governor Newsom and legislators have been embroiled in talks for weeks over the infrastructure proposal to accelerate water, energy and transportation projects through an expedited permitting and review process.
The infrastructure proposal by the governor includes provisions to streamline project permits, shorten construction timeframes, expedite judicial review, and address bureaucratic California Environmental Quality Act (CEQA) processes.
Ag Council supports the infrastructure package given the need to reduce barriers and more quickly move critical projects forward that are mired in red tape, especially desperately needed water infrastructure to boost water storage supplies.
By pursuing the infrastructure provisions in the budget, the governor and his administration are seeking to leverage and maximize currently available federal infrastructure funds.
During recent hearings, the infrastructure proposal received pushback from legislators relating to the short turnaround time to review and approve the proposal. One of the policy-related sticking points is the inclusion of the Delta conveyance project in the package, which has long garnered opposition from those living in and representing Delta communities.
Timing
As of today, the afternoon of June 26, an announcement has not yet been made regarding the status of the infrastructure proposal, so we do not yet know if all, part, or none of it will be included in the budget. If any portion is included in the budget, those provisions will take effect immediately upon the governor’s signature. Infrastructure items not included in the budget could be negotiated into policy bills separate from the budget.
The governor must sign the budget prior to July 1, which is the start of the 2023-2024 budget year for the State of California. Budget trailer bills providing funding for various state programs and projects are oftentimes passed in the days and weeks after the core budget is signed.