1. District Budget Shows a Tight Year — 45% State Water Project Allocation Drives Budgeted Loss The board approved a 2026 budget update reflecting a final State Water Project allocation of 45% (down from the 50% originally budgeted). Total state contract water revenue declined, and minimal banking activity means limited additional income. The district is projecting a budgeted loss of approximately $50.4 million for the year, offset by strong beginning cash reserves ($34.1 million) and planned project financing ($25 million), leaving an estimated $7.7 million in cash at year-end. General Manager Jason Gianquinto noted that average allocation years like this are the toughest from a budget standpoint, but the overall financial plan is working — the district just needs a stronger wet year (potentially 2027) to rebuild its position.
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