CITY OF PISMO BEACH
STATE LEGISLATIVE UPDATE
January 20, 2026
2025 Legislative Session: Bill Overview
Slide 2
Veto Rate: 13%
2,397 Total Bills Introduced
917 Bills Passed Legislature
794 Chaptered and 123 Vetoed
2025 Legislative Session: State Budget
Slide 3
$12B Budget Deficit:
Borrowing, Reserves, and
Cost Shifts
Last Minute:
Trailer Bills & Budget Bill
Juniors
Prop 4 Climate Bond:
$3.3 Billion Appropriated
Concerns Remain:
Multi-year Deficits, CA/DC
Dynamics
2025 Legislative Session: Major Issues
Slide 4
Cap and Invest
Reauthorization
CEQA
Implementation Immigration
Response
Congressional
Redistricting
New Senate
Leadership
2026 Legislative Session: Anticipated Issues
Slide 5
Governor’s January
Budget:
$2.9 Billion Deficit
November Election:
Ballot Initiatives & District
Contests
Housing & Affordability
Wildfire Response,
Recovery, and
Preparedness
2026 Legislative Session: State Budget Picture
Slide 6
$348.9 Billion
in Total Spending
$2.8 Billion
suspension of “true
up” in the Rainy Day
Fund
No New Taxes
Proposed
$42.3 Billion
in revenues above
projections
$14.4 Billion
remaining in the
Rainy Day Fund
May Revision
to make larger
budget decisions
2026 Legislative Session Timeline
Slide 7
January 5 – Reconvene
February 20 – Bill Introduction Deadline
March & April – Policy committees meet
May & June – Appropriations and House of
Origin Deadline
June & July – Second House Policy
Committees meet
July – Summer Recess
August 31 – End of Session
September 30 – Deadline for Governor to
act on bills
LEGISLATION
January – Governor’s preliminary Budget
Proposal released
January – April – Advocacy on funding
priorities
May – May Revision released
June – Budget Act Signed into Law
June & August – Budget clean up legislation
BUDGET
2025-2026 Legislative Session: Strategic Engagement
Slide 8
•Regular check-in meetings with City staff
•Significant engagement on budget issues,
housing and land use legislation, online
sales tax reform, and Council priorities
•Consistent reports and updates on priority
issues
•Budget priority advocacy
•Grant identification and guidance
•Relationship development with Legislative
Delegation and Leadership
Questions?
Slide 9
Cori Takkinen
Vice President & CEO
[email protected]
Spencer Street
Senior Associate
[email protected]
Ryan McCarthy
Associate
[email protected]
California Advocacy | Federal Advocacy | Grant Writing
www.TownsendPA.com | (949) 399-9050