Prop 26 Funding Mechanism Approved for FY 2026-27: The board voted unanimously to direct staff to pursue a Proposition 26 funding approach for the upcoming fiscal year budget and bring back specific options in a fee study. This approach was chosen over Prop 218 after the previous 218 assessment failed in August 2025. Under Prop 26, fees will be set annually by the board without requiring a landowner vote, though the specific rate structure (volumetric vs. per-acre) is expected to be brought back with options for board consideration at the March 25 meeting. Counsel explained that, under SGMA, de minimis users may not be charged under this mechanism unless they are being regulated, and noted that de minimis users are not currently being regulated in this basin.
Bare-Bones Compliance Budget Focus: The agency is targeting a minimal compliance budget focused solely on required SGMA compliance activities, rather than funding capital projects. Directors and staff emphasized that the draft budget covers only mandatory reporting, monitoring, and administrative costs. Any future projects like stormwater capture or expanded dry well mitigation would require additional board action and likely separate or expanded funding in subsequent years.
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