State update: California shows modest job losses; AG joins H‑1B fee lawsuit and Bay Area transit faces short-term funding pressures

Amy Costa of Full Moon Strategies briefed the committee Dec. 15 on recent state developments: California’s jobs report showed modest weakening with a fourth consecutive month of net job losses in September; the attorney general joined a coalition suing the federal government over a proposed $100,000 fee on H‑1B petitions; and state budget discussions include a proposed loan approach that could reallocate funds earmarked for long-term Bay Area transit projects to cover short-term operating deficits.

Costa said the business survey showed a loss of about 4,500 jobs in September and a downward revision for August, and the household survey signaled slowing momentum with employment declines that pushed the unemployment rate from 5.4% to 5.6% over the July–September period. She also noted the governor has announced hires for the Public Health Network Innovation Exchange, including former federal public health officials, to assist with public health modernization and preparedness.

On transit funding, Costa described concerns from the Senate budget chair about using long-term project funds to cover short-term deficits and warned such an approach could undermine planned construction and risk service cuts for systems including BART, Caltrain and others. Costa said a stopgap solution is needed by January to avoid near-term cuts while a voter-approved sales-tax measure could provide long-term stability starting in 2027.

The consultant offered to follow up on a pending litigation question raised by a supervisor and to report back to the committee with any updates.