California Water Policy Update: State Budget & Prop 4

By Luis Carmona – Resource Development Coordinator

California Proposition 4 Overview

California Proposition 4 is a water and environmental bond measure that allocates funding for various water-related projects across the state. The proposition includes funding for watershed resilience, wildfire prevention, and water security initiatives. Integrated Regional Water Management (IRWM) is allocated $100 million under this proposition. The Department of Water Resources (DWR) is expected to seek clarification on whether these funds will be specifically designated for watershed resilience efforts.

State Budget: Water-Related Allocations for FY 2025-26

The Governor’s draft budget for the 2025-26 fiscal year proposes $1.07 billion for water-related programs. The California State Senate Budget and Fiscal Review Committee has begun hearings to review and discuss the proposal. The proposed budget is structured to be balanced but continues to rely on state reserves.

State Budget and Proposition 4 Funding Adjustments

Due to ongoing wildfires, particularly in Los Angeles County, wildfire-related funding from Proposition 4 may be increased and accelerated. This adjustment could result in reductions to other funding areas.

In addition to the Proposition 4 allocations, the proposed state budget includes a $51 million reduction in recycled water funding. With budget approval expected in summer 2025, the earliest any program solicitations from Proposition 4 could be issued is Fall 2025.

Digest

While the budget is considered relatively balanced, it still relies on state reserves, which could impact the long-term stability of water program funding. Additionally, due to the increasing threat of wildfires—especially in Los Angeles—there is speculation that wildfire-related funding from Prop 4 could be increased and accelerated, potentially reducing funding in other areas. As budget discussions progress, IRWM program stakeholders should remain engaged to ensure that funding priorities align with the needs of regional water management efforts.

Further updates will be provided as budget discussions continue.

 

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