Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Connie Juarez-Diroll, Chief Legislative Officer
Subject: August Informational Report on the 2026 State and Federal Legislative Sessions and Third Quarter Legislative Presentation
RECOMMENDATION:
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Accept the August 2026 informational report on the 2026 state and federal legislative sessions and the third quarter legislative presentation.
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BACKGROUND:
On June 29, 2026, Governor Gavin Newsom approved the 2026-27 state budget. This followed the June 26 announcement of a three-party agreement among the Governor, Assembly Speaker Robert Rivas, and Senate President pro Tempore Monique Limon. The Budget Act of 2026 allocates a total of $351.7 billion, with $251.5 billion coming from the General Fund. This is roughly $2 billion less than the Legislature's Budget Plan but about $4 billion more than the Administration's May Revision proposal. The act sets a record with total reserves of $35.2 billion. It balances the General Fund for 2026-27 and 2027-28 and reduces the projected 2029-30 structural deficit from $23 billion to $8.4 billion, compared to the Governor's January budget. The plan also proposes changes to the fiscal reserve calculation and schedule to boost deposits. While the budget avoids or delays many safety net cuts proposed last year and in the May Revision, it still does not fully fund all of San Mateo County's and the County's related priorities, which are detailed further below.
After passing the state budget, the Legislature adjourned for summer recess on July 2 and reconvened on August 3 to start the final phase of the 2026 legislative session. The Senate and Assembly Appropriations Committees have until August 14, 2026, to meet and report bills to their respective Floors. This includes conducting 'Suspense File" hearings, which will decide the fate of numerous bills with major fis...
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