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CDA Adopts Support for CEQA Reform Ballot Measure
A major CEQA reform initiative, the Building an Affordable California Act, is advancing strongly toward qualification for the November 2026 ballot. Sponsored by the California Chamber of Commerce, the measure aims to modernize the state's environmental review process by establishing clear timelines, accountability mechanisms, and predictability for project approvals—without weakening core environmental, labor, or tribal protections.
For downtown advocates, this is particularly promising. The Act targets faster, more reliable permitting for precisely the kinds of projects that strengthen urban cores: mixed-use developments, adaptive reuse of historic buildings, and essential transit, utility, and broadband upgrades. These improvements help reduce costs that currently inflate housing prices, limit residential density (which drives retail and restaurant vitality), and delay infrastructure that keeps downtowns competitive.
The CDA Board has officially adopted a support position on this critical ballot measure. This positions CDA to advocate for a reform that could deliver significant benefits to our members' communities. We'll keep members updated on the board's final action and the measure's progress toward the ballot. For more details, visit BuildAffordableCA.com.
Broader Legislative Landscape: Housing, Streamlining, and Public Safety in Focus
The 2026 legislative session is now well underway, with many of the bills on CDA's potential bills of interest currently in the pre-policy committee phase or still functioning as spot bills awaiting substantive amendments. The session's focus on housing production, permitting efficiency, urban revitalization, and related public safety issues aligns closely with downtown recovery priorities.
Most priority measures remain pending in their house of origin's policy committees, where hearings and potential amendments will shape their direction in the coming months. Expect committee action to accelerate through spring, with key fiscal impacts analyzed in appropriations committees before potential floor votes and cross-house movement by summer.
CDA's Legislative Committee continues to monitor bills closely, prioritizing those that reduce barriers to investment, housing, and downtown activity while addressing safety and cleanliness challenges.
State Budget Update
California's fiscal picture has improved modestly since January projections, with the state’s tax collection numbers running far above projections. That lessens the pressure for budget cuts in upcoming budget negotiations that will get finalized in June. Governor Newsom's January 2026 proposal for the 2026-27 budget anticipated a manageable $2.9 billion deficit. Thanks to stronger-than-expected revenues from robust stock market performance and AI-driven economic gains, that expected deficit may not materialize this year.
However, concerns persist about a potential slowdown in the coming year, with multiyear structural deficits looming (potentially $22 billion or more in 2027-28 and beyond) due to ongoing spending pressures outpacing revenue growth, federal policy uncertainties, and questions about the sustainability of recent tech-sector windfalls. The May Revision will offer updated insights based on spring tax collections.
Jason Bryant
CDA’s Legislative Advocate
Principal, Bryant Government Affairs
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