Legislative Upate - April 2026

Legislative Update 

Legislative Session in Full Swing
The 2026 legislative session is well underway, with hundreds of bills advancing to policy committees—the first major step on their path to the Governor’s desk. Committee hearings are in full swing, with packed agendas that will continue to intensify through early July as key deadlines approach. Several important milestones are ahead: May 1 is the deadline for fiscal bills to be referred to the Appropriations Committees, followed by May 15, when those committees must advance bills to the Floor. All bills must then pass their house of origin by May 29 to move to the opposite chamber (e.g., Senate bills to the Assembly and vice versa). Additionally, all “spot” bills were required to be amended with substantive language by the end of March, resulting in a surge of newly detailed proposals throughout the month. The Legislature is currently on spring recess and will reconvene on Monday, April 6.

Budget Update
A recent post by Assembly Budget Committee Chief Jason Sisney highlights the potential impacts of recent Trump Administration actions in the Middle East, which have contributed to a global oil shock and a dip in the stock market. This has raised concerns in Sacramento budget circles about how these developments could affect this year’s budget negotiations.

Despite this uncertainty, the state remains in a relatively strong fiscal position, with substantial cash on hand and General Fund revenues exceeding projections by more than $6 billion year-to-date. However, the rapidly shifting economic outlook makes the May Revision—expected in early May—especially important as the Legislature moves toward finalizing the budget.

The central question is whether the additional $6 billion in revenue will be enough to offset the current economic slowdown. Mr. Sisney and other budget staff we’ve consulted believe it likely will, but the May Revision will provide more definitive answers. Even if the downturn persists, the state has several options available, including internal borrowing and drawing from reserves.

At the same time, it remains unclear what level of funding, if any, will be available for district budget requests. Looking ahead, the state’s out-year structural deficit is still projected to be around $20 billion. This issue, which was not addressed in the Governor’s January Budget, will need to be taken up either this year or by the next administration in 2027. The Legislature has until June 15 to pass a budget and send it to the Governor.

2026 Proposed Billionaire Tax Act
The Service Employees International Union (SEIU), sponsor of the proposed California Billionaire Tax Act (Initiative No. 25-0024), faces a mid-April deadline to gather sufficient signatures to qualify the measure for the ballot. Recent polling from the University of California, Berkeley shows the proposal holding a narrow lead among voters if the election were held today. While roughly half of Californians support the wealth tax, initiative campaigns typically aim to begin with at least 55 percent support to withstand anticipated opposition messaging.

The polling also highlights voter concerns that the tax could have unintended consequences, including prompting wealthy individuals and businesses to leave the state. At the same time, broader attitudes toward the state’s budget present challenges for the campaign. A separate UC Berkeley poll found that voters generally prefer addressing California’s multibillion-dollar deficit through spending cuts rather than tax increases: 42 percent favor primarily spending reductions, 35 percent support a mix of cuts and taxes, and only 12 percent prefer mostly tax increases, with 10 percent undecided. Additionally, about 85 percent of respondents believe the government wastes some public funds.

Together, these findings underscore a tension in public opinion. While there is measurable support for taxing billionaires, many voters remain skeptical of broader tax increases and favor fiscal restraint—dynamics that could complicate efforts to build and sustain a winning campaign message.

  • The Legislative Analyst’s Office (LAO) had previously released a brief overview of the proposed measure.

ACTIVE POSITIONED BILLS

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