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Governor’s Race — A Reshaped Field as June 2 Approaches
With mail-in ballots set to hit voters’ mailboxes in less than two weeks, the California governor’s race remains wide open going into the critical final stretch of the race. Who ultimately prevails and advances into the Top-Two runoff in November is still anyone’s guess.
Allegations reported by the San Francisco Chronicle and CNN forced leading contender Congressman Eric Swalwell out of the race several weeks ago, shaking up the race as Swalwell was the favorite among Democrats to advance from the primary. Democrats Tom Steyer and Katie Porter remain top-tier candidates, and former U.S. HHS Secretary Xavier Becerra has surged in recent polls, possibly drawing some of Swalwell’s former support. Business groups that backed Swalwell are still deciding where to direct their support and their financial resources could be decisive in the final weeks of the race.
On the Republican side, President Trump’s endorsement of Steve Hilton has consolidated GOP support and pulled votes from Sheriff Chad Bianco, reducing the odds of two Republicans advancing under California’s top-two primary.
This is a historically unpredictable race that will come down to the wire and is sure to have some final twists and turns before voters make their final decisions on June 2.
CEQA Reform — “Building an Affordable California Act”
The CalChamber’s modernization of CEQA (the California Environmental Quality Act, which requires environmental review for most development projects) is moving toward the November ballot. The campaign turned in signatures this week, a milestone that makes its qualification very likely.
The California Downtown Association has formally endorsed the ballot measure, giving downtowns a strong statewide voice on housing and other reforms.
The measure adds clear timelines, accountability, and predictability while fully preserving core environmental, labor, and tribal protections — and targets faster approvals for the projects that drive downtown vitality: mixed-use housing, historic adaptive reuse, transit upgrades, utility improvements, and broadband.
Local Taxpayer Protection Act Qualifies for November
The November ballot promises to be a busy one, with a number of high-profile ballot measures for voters to consider. The Local Taxpayer Protection Act was added to the list of measures on the November ballot after it officially qualified this week. It is sponsored by the Howard Jarvis Taxpayers Association.
If approved, it would require two-thirds voter approval for any local special-purpose tax (including citizen-initiative measures), prohibit most new real-estate transfer taxes, and phase out existing ones — such as LA’s Measure ULA — by December 31, 2028.
State Budget — Outlook Brightening Heading Into the May Revise
Tax collections through March came in $7.5 billion above January projections, easing deficit concerns. The May Revise — the Governor’s updated budget based on April tax filings — is expected in mid-May, with a final budget due June 15. Uncertainties remain with the economy, but the brighter outlook creates room to protect or expand programs important to downtown revitalization, including housing production incentives and infrastructure funding.
CDA Priority Legislation — 2026 Session
CDA continues to lead a targeted package of bills to accelerate downtown recovery and economic activity. The Legislature completed a key deadline this week, wrapping up its first round of policy committee hearings. Passing policy committees is a key first step for new bills, helping show which ideas will be viable and those that will not.
Our Legislative Committee considered nearly a hundred bills that affect key CDA policy priorities and identified a core package of key bills for CDA to support in 2026.
There are main areas covering our priority bills:
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Permitting & housing: AB 1815 (Wicks) factory-built housing; AB 2074 (Haney) Downtown Revitalization Act; AB 2418 (Gonzalez) nonresidential permit streamlining; AB 1693 (Zbur) accelerated retail plan approval.
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Urban & coastal development: AB 1740 (Zbur) Urban, Transit-Rich Coastal Communities — unlocks density and investment near transit in downtown cores.
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Commercial & temporary-use flexibility: AB 1679 (Gonzalez) temporary pop-up permits for vacant storefronts; AB 2663 alcoholic-beverage off-sale privileges.
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Public safety: AB 1941 (Gonzalez) organized metal theft — targets coordinated theft operations that harm retailers and property owners.
Looking ahead to May, bills will now move to review in the Appropriations committees and then to the floor of their respective houses for a vote. We will continue to update you as our priority bills move through the process.
Jason Bryant
CDA’s Legislative Advocate
Principal, Bryant Government Affairs
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