March 3, 2026
Senator John Laird
Chair, Senate Budget and Fiscal Review Committee
1020 N Street, Room 502
Sacramento, CA 95814
Senator Eloise Gomez Reyes
Chair, Senate Budget Subcommittee 2
1020 N Street, Room 502
Sacramento, CA 95814
Assemblymember Jesse Gabriel
Chair, Assembly Committee on Budget
1021 O Street, Suite 8230
Sacramento, CA 95814
Assemblymember Steve Bennett
Chair, Assembly Budget Subcommittee 4
1021 O Street, Suite 8230
Sacramento, CA 95814
RE: Support for full funding for the implementation of SB 72 (Caballero 2025)
Dear Honorable Chairs,
The co-sponsors of SB 72, California Municipal Utilities Association (CMUA), California State Association of Counties (CSAC), and California Council for Environmental and Economic Balance (CCEEB), and the coalition of the organizations above respectfully request that the Legislature support full funding for the implementation of SB 72 in the 2026-27 budget as requested – $6.8 million annually for 5 years and $3.4 million annually thereafter.
The Legislature unanimously passed SB 72 (Caballero) last year, and the Governor signed this important piece of legislation that modernizes the California Water Plan and sets an interim water supply planning target. The legislation additionally requires the Department of Water Resources (DWR) to develop an action plan by 2033 to achieve long-term water supply targets by 2040.
The Governor’s January 10, 2026 budget proposal proposes to include $5.8 million General Fund in fiscal year 2026-27 and annually for the next 4 years, and $2.4 million General Fund in 2031-32 and ongoing to fulfill the requirements of SB 72. DWR estimated the costs necessary to implement SB 72 as $6.8 million annually for the first 5 years and $3.4 million annually thereafter.
The Governor’s proposed budget is $1 million short annually for SB 72 implementation. This shortage will result in a major delay in meeting the water supply targets set forth in SB 72. As set forth in the Administration’s Budget Change Proposal, the shortfall will likely lead to a 5–10-year delay and would spread DWR staff thin to meet the requirements of the legislation. Delaying this critical work amidst California’s uncertain climate future is not acceptable.
For these reasons, we respectfully request full funding for SB 72 implementation in the 2026-27 budget. If you have any questions about our position, please contact Andrea Abergel with CMUA at aabergel@cmua.org or (916) 841-4060.