Newsom Announces Proposed Budget With Funding for Water Categories by ACWA Staff Jan 11, 2023 Water News Gov. Gavin Newsom on Jan. 10 unveiled his proposed budget for the next fiscal year which includes a projected budget deficit of $22.5 billion. To address this shortfall, the governor has proposed to delay certain investments to future years and reduce other planned expenditures. Specific to water and drought issues, the proposed budget includes some new funding and also reduces and delays some previous budget commitments. New Funding Relative to new investments, the governor has proposed timely new funding for flood risk reduction and protection, as well as several other important water management issues. Specifically, the governor’s proposed budget calls for funding in the following categories. Urban Flood Risk Reduction — $135.5 million over two years to support local agencies working to reduce urban flood risk. Delta Levee — $40.6 million for ongoing Delta projects that reduce risk of levee failure and flooding, provide habitat benefits, and reduce the risk of saltwater intrusion contaminating water supplies. Central Valley Flood Protection — $25 million to support projects that will reduce the risk of flooding for Central Valley communities while contributing to ecosystem restoration and agricultural sustainability. 2023 Drought Contingency — $125 million one-time as a drought contingency set-aside to be allocated as part of the spring budget process, when additional water data will be available to inform future drought needs. Modernizing Water Rights — $31.5 million one-time in 2023-’24 to continue development of the Updating Water Rights Data for California Project to enhance California’s water management capabilities. Urban Water Use Objectives — $7 million over four years to implement legislation signed into law last year which established a new framework for water conservation and drought planning. Budget Reductions The governor’s proposed budget includes significant reductions and delays across a broad range of issues and departments. Specific to water and drought issues, Newsom is proposing delays to several of ACWA’s priority issues. Watershed Resilience Programs — A reduction of $24 million in 2023-’24 and a delay of an additional $270 million to 2024-’25. PFAS Cleanup — A reduction from $100 million to $30 million for PFAS cleanup and a delay of that funding from 2023-’24 to 2024-’25. Water Recycling/Groundwater Cleanup — A reduction from $210 million to $170 million in 2023-’24 to support water recycling and groundwater clean-up. While ACWA understands the need to balance the budget, ACWA will advocate to ensure that the previous budget commitments remain intact and on time. In addition, ACWA will continue to advocate for additional significant investment in water infrastructure either through the State Budget or through a General Obligation Bond.
