ADVOCATING FOR THE INDUSTRY


AGC advocates have begun educating new legislators on the importance of transportation infrastructure funding, highlighting a projected 10-year revenue shortfall of $216.4 billion.


Joint Legislative Committee Meeting Highlights Key Issues for California Contractors


BY FELIPE FUENTES T


he Associated General Contractors (AGC) of California and San Diego chapters held their annual


joint legislative committee meeting on Friday, March 20, at the office of Unger Construction. The meeting, co-chaired by Terrence McNamara and Jason Mordhorst, brought together members from both chapters to review legislation and discuss critical issues impacting the construction industry.


Opening Remarks and Introductions Te half-day session began with open- ing remarks from co-chair McNamara, followed by self-introductions from the attendees. Tis set the stage for a collab- orative and engaging meeting.


Political Outlook and Budget Overview AGC advocates provided a political out- look, highlighting the current partisan dynamics between the state capitol and the federal government. A comprehensive overview of the


California state budget was present- ed, noting the proposed $322.5 billion budget for 2025, up from $297.9 billion in 2024. Despite a modest budget sur- plus, anticipated fiscal headwinds could challenge the state’s treasury through- out the legislative year. Volatile federal presidential orders and potential trade tariffs add to the uncertainty, impacting key federal revenue streams and Cali- fornia taxpayers.


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CALIFORNIA CONSTRUCTOR MAY/JUNE 2025


Key Spending Priorities and Challenges Policymakers are concerned about po- tential interruptions in federal funding, which could affect major state allocations in education and health and human ser- vices. Tese two areas constitute roughly 80% of the state budget. Medi-Cal, pri- marily funded by Medicaid, serves more than one-third of Californians at a cost of over $160 billion per year. Additional challenges, such as mass deportations and tariffs, pose risks to key industries and job creation, further adding to the economic uncertainty.


Legislative Dynamics Te legislature faces a significant learn- ing curve with 71 new members elected during the past two election cycles. Many of these new members have experience in local government, but the current budget uncertainty is unprecedented. Te recent wildfires in Southern California have added significant budget pressure, and high legislative staff turnover has left few budget veterans to navigate these challenges.


Subcommittee Breakouts and Working Lunch Participants broke into subcommit- tees to discuss specific issues in detail. This was followed by a working lunch, providing opportunities for informal discussions and networking. Legislative committee participants also focused on


developing the 2025 legislative prior- ities for the upcoming Legislative Day at the Capitol.


Key Themes and Legislative Focus Several key themes emerged during the discussions: • Wildfire Response and Recovery: Over 75 bills have been introduced to address wildfire response and recovery. Efforts to streamline the permitting process to reduce delays and costs in rebuilding after the fires were a major focus.


• Housing and Climate Resiliency: Legislation introduced this year focuses on housing, electric transmission capacity, climate resiliency projects, and relaxing regulatory and environmental reviews. AGC and it advocates will further identify and support these issues in coming months.


• Cap and Trade Reauthorization: Today, there is a cap on total emissions from regulated industries that is set to expire in 2030. Regulated industries receive or buy emission allowances, which they can trade to comply with the state’s climate goals. Over time the cap decreases to drive emissions reductions; revenues are generated and allocated for climate adaptation infrastructure projects. AGC is interested in a reauthorization that carries a pro-infrastructure spending plan.


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