The board approved significant budget revisions for the Friant-Kern Canal project, deferring pump station construction to avoid a $6 million payment while maintaining contingency funds for outstanding contractor claims. The fiscal year 2026 operations budget was unanimously approved following the mandatory review period. Water supply conditions remain strong with full Class 1 allocations maintained and reservoir storage performing above forecast levels.
The Central Valley Project's 55% water allocation is at serious risk, with San Luis Reservoir projected to reach dangerously low levels by August and only an 11,000 acre-foot buffer above dead pool remaining. Delta water quality issues are already forcing pumping reductions below forecasted levels, threatening the ability to deliver promised allocations to contractors. However, there's hope as the Secretary of Interior made an unprecedented visit to engage directly with California water stakeholders and received priority project recommendations.
