this year, but the final loss is $5 billion larger than expected, growing from an anticipated $13 billion in June. Coupled with the fact that this is the third year run- ning with a budget deficit, it is increasingly clear the state is spending more than it should be. Te legislature has taken steps to create spending solutions to decrease spending, but perhaps more proactive solutions must developed.


Looming Issues in the Future Looking to the future, the LAO anticipates a fourth year of budget problems even in the wake of state revenue growth. If California cannot address its budgetary problems its economy will only become less prepared in the event of future downturns. Despite the state’s fiscal challenges,


California’s construction sector stands to play a stabilizing — and potentially revitalizing — role in the years ahead.


The fervor surrounding AI development and its capacity for revenue generation drive California’s economy higher each day, but the LAO remains skeptical about its sustainability.


Infrastructure investment, energy


transition projects, and housing devel- opment remain central to both state and federal priorities, even amid tightening budgets. Te ongoing need to modernize transportation systems, expand clean-en- ergy infrastructure, and deliver affordable housing ensures a steady pipeline of work that is less sensitive to short-term economic volatility. In short, while the state faces near-


term fiscal constraints, California’s long- term growth story still relies on building





— literally. Strategic investment, adap- tive planning, and a focus on resilient infrastructure position the construction industry not only to endure the current budget headwinds, but to lead the state’s next cycle of economic renewal.


Felipe Fuentes


Unscrupulous contractors undercut responsible contractors like you


when bidding, causing your company to be unable to compete. Often this practice is illegal and results in an unlevel playing field. We are here to help level that field.


As a signatory contractor and partner of OPCMIA locals 500 and 600, you are provided a Prevailing Wage Compliance


Program, ADR Joint Workers’ Comp Program, and Competitive Private Commercial & Residential Rates.


In addition, you have access to a workforce trained from an appren- ticeship program accredited by the State of California. Our ap- prentices learn all aspects of concrete including form setting, placement, finishing, concrete polishing, patching & repair.


  Local 600 ~ 323-771-0991 ~ www.cementmasons600.org


CALIFORNIA CONSTRUCTOR JANUARY/FEBRUARY 2026


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