Daily Business Report: May 4 2026
Legislature’s adviser tries budget tough love to get California politicians to close huge deficits
by Dan Walters | CalMatters
Since 1941, California’s Legislature has had an independent budget adviser to monitor the ebb and flow of state finances — particularly the governor’s budget — and suggest ways they could be improved.
Traditionally, the Legislative Analyst’s Office ignores politics and provides its advice in neutral —even bland — language, implicitly telling politicians that they are free to either accept or reject its findings, but at least they cannot claim ignorance.
Recently, however, Legislative Analyst Gabe Petek, just the sixth person to hold the position over the last 85 years, has adopted a more emphatic tone, warning Gov. Gavin Newsom and legislators that they must close their chronic, multibillion-dollar deficits.
Sacramento Report: California Coastal Commission ‘Untouchable’ No More
By Nadia Lathan | Voice of San Diego
California’s Supreme Court last week determined the California Coastal Commission overstepped its authority in blocking a San Luis Obispo County housing construction permit, the latest blow to the agency following years of criticism for its role in blocking housing along nearly 900 miles of the Pacific Coast.
The 7-0 decision reversed the commission’s vote to block a developer from building four homes in Los Osos over habitat and water safety concerns. It changes little about the commission’s authority and governance, but comes after a series of pro-development appointees at the behest of Gov. Gavin Newsom and criticism that it has overstepped its 1976 charter to protect the coast from environmental degradation.
The judges said the commission didn’t have the authority to override the county’s coastal zoning laws.
California, Arizona and Nevada announce new water-saving plan for dwindling Colorado River
By Ian James | LA Times
With the Colorado River’s giant reservoirs declining toward critically low levels, negotiators for California, Arizona and Nevada announced a new water-saving plan for the next two years.
Representatives of the three states said in a written statement Friday night that their plan aims to “stabilize the Colorado River through 2028.” It will require larger cuts in water use than they had pledged previously in talks with other states and the federal government.
“We have stepped up to establish a leadership position to protect the system for another two years,” said JB Hamby, the chairman of California’s Colorado River Board. “Without that, the system will continue to decline.”
