State Water Resources Control Board outlines $1.9–2.1 million structural gap and options to address it

The State Water Resources Control Board’s fee and revenue staff told stakeholders June 11 that the water rights fund faces a structural deficit of roughly $1.9 million to $2.1 million for fiscal year 2025–26, and staff outlined options that include drawing on fund reserves or generating about 5% more revenue through fee changes.

David Ceccarelli, fee and revenue branch chief within the board’s Division of Administrative Services, said staff estimate the fund will need “about additional 5% in revenue to balance basically total revenues with expenditures in 25–26.” The projection is based on the governor’s May revised budget figures and current authorized spending.

The deficit follows an adjusted beginning fund balance near $8.1 million and a year in which actual expenditures ($24.1 million in 2023–24) were lower than budgeted levels because the agency froze hiring during state-directed budget-reduction…