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Lawmakers press for larger Prop 4 response to Delta subsidence and levee risk

Senate Budget Subcommittee No. 2 on Resources, Environmental Protection, and Energy · August 12, 2026

Summary

Officials told the Senate subcommittee that subsidence on State Water Project conveyance could cost roughly $4 billion and that Prop 4 contains pots for levee work but that demand likely exceeds allocations; members urged faster spending on ready projects and questioned pacing decisions.

The subcommittee heard detailed technical and budgetary testimony about conveyance subsidence and Delta levee safety under a Proposition 4 spending plan.

Casey Schimpke, Deputy Director for Legislative Affairs at the Department of Water Resources, said the department has identified subsidence on aqueduct systems and estimated it would cost "about close to $4,000,000,000 in overall costs" to address that conveyance issue for the State Water Project. Schimpke said the state operates longstanding levee maintenance and special projects programs and cited a Stewardship Council estimate of roughly $3.2 billion in needs over 25 years for Delta levees.

Rachel Ehlers of the Legislative Analyst's Office told the committee Prop 4 gives the legislature resources but emphasized the twin decisions facing lawmakers: when to appropriate bond proceeds and how prescriptive to be about permitted uses. She recommended legislators weigh the tradeoff between front-loading funds to enable immediate work and pacing allocations to preserve flexibility for future years and administrative capacity.

Several members advocated moving ready projects from planning to implementation and pressed how much of proposed coastal and conveyance dollars will reach local projects and when awards will be made. The State Coastal Conservancy said it had $88,000,000 proposed in 26-27 for coastal resilience, a portion of which might flow to Golden Gate Fields and that other funds would be available for grants once the budget is signed.

No formal decision was taken; members flagged dam safety and major conveyance projects as priorities for follow-up as the committee and administration refine the Prop 4 expenditure plan.

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