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State budget preview: governor proposes housing agency and encampment funds; Alameda County told to expect revenue risk from Los Angeles wildfires
Summary
A county lobbyist summarized the governor's proposed 2025–26 budget, highlighting a modest surplus contingent on a $7.1 billion rainy‑day transfer, a proposed housing and homelessness agency, and more than $100 million in encampment resolution funding with new accountability rules; supervisors asked staff to track relevant bills and funding flow.
At the Jan. 27 committee meeting, Amy Costa of Full Moon Strategies briefed Alameda County supervisors on the governor's proposed 2025–26 state budget and on timing that could affect local fiscal planning.
"The Department of Finance unveiled their governor's proposed 2025–26 budget on January 10," Costa said, adding that the proposal shows a "very modest surplus of $363,000,000" that depends on a planned $7.1 billion transfer from the state's rainy‑day fund. She warned the projection is sensitive to the Los Angeles wildfires and to an extension of tax filing deadlines that could reduce near‑term revenue accuracy.
Costa outlined several proposal elements of interest to counties: a proposed housing and homelessness agency to coordinate housing, transportation, health, climate and energy programs; more than $100 million proposed for encampment resolution funds tied to compliance requirements such as alignment with local housing elements and encampment policies; and increased scrutiny by the Department of Housing and Community Development of local data use.
She also described recently signed special session bills providing $2.5 billion in wildfire relief for Los Angeles and said a $25 million provision for the Attorney General included in an earlier bill was moved into a separate measure to be heard later, with anticipated reporting requirements to the Joint Legislative Budget Committee.
Costa noted that statutory language accompanying the governor's proposals had not yet been released and that further detail would arrive in February and in the May revise. Supervisors requested that staff track several bills mentioned during the meeting (including AB 15, AB 49 and SB 81) and follow up on how state funds would be distributed to counties or community legal‑assistance programs.
The committee took no formal vote on the budget matters and adjourned after public comment.
