State Budget Update - Boater Fees, Delta Conveyance Project

The state’s fiscal year began on July 1 with the Governor and legislative leadership having agreed upon the main budget trailer bill and related budget trailer bills.

Boating Fees & Taxes

Registration fee increase have not yet been raised to resolve the $20 million annual deficit in the Harbors and Watercraft Revolving Fund and the programs and services if supports.

The enacted budget directs the Division of Boating and Waterways to consult with stakeholders to develop and submit a proposal to the Legislature to keep the fund in structural balance on an ongoing basis.

RBOC continues to advocate for updates and efficiencies to state programs financed by boat registration fees to ensure they provide positive benefits to boaters and share costs with other stakeholders where appropriate – prior to an increase in boat registration fees.

The adopted budget incorporates a number of revisions including the financial participation of other beneficiaries in invasive species efforts, and the elimination of funding for the beach erosion program that does not benefit boaters.  Even with these and other actions, the HWRF deficiency has not yet been resolved.

Placing the burden of a $20 million annual deficit solely on vessel registration fees and ignoring the $107 million in annual fuel taxes that are attributable to boats would increase those registration fees by at least 300%.

There are proposals that would increase boat registration fees even more. Legislation has been drafted and is being circulated to amend state law to expand the current quagga and zebra mussel sticker boaters purchase through DMV to include the golden mussel and other invasive species.

Delta Conveyance Project

The Governor’s proposed budget trailer bills to expedite this project have not yet been introduced and were not included in the 20 budget trailer bills that have been enacted thus far.

RBOC continues to oppose the 2 proposed trailer bills, agreeing with the suggestion of the independent and nonpartisan Legislative Analyst’s Office, as well as individual legislators and other stakeholders who are urging the Legislature to defer these trailer bills so that they are not taken up within the budget development process.

The significant precedent-setting policies raised by the trailer bills, together with their potential implications for the recreational boating community and others, are more appropriately developed, deliberated and voted upon within the public, transparent policy committee process that applies to thousands of legislative measures introduced each year.

Additional Budget Actions

Ongoing discussions involving the leadership of the Senate and Assembly, and the Governor, are continuing and could result in additional legislation [termed "budget trailer bills"] revising the budget provisions that have been enacted.

Boater Update - Advocacy Efforts Continue on California Budget

The Legislature has met the June 15 deadline to send a budget bill to Governor Newsom, passing SB 101 [Wiener] that is now on the Governor's desk for his consideration prior to the beginning of the state's next fiscal year on July 1.

Negotiations betweent the leadership of the Senate and Assembly, and the Governor, are continuing and could result in additional legislation [termed "budget trailer bills"] that revises the provisions of SB 101 and/or includes new budget provisions. Budget trailer bills do not face a July 1 deadline and are often considered even months later.

Here's a quick update on key boater issues in the budget in which RBOC is continuing our advocacy efforts:

Boater Fees and Taxes

SB 101 would make several adjustments to the Harbors and Watercraft Revolving Fund (HWRF). Adjustments include aligning revenues and expenditures by temporarily decreasing Boating Safety and Enforcement Aid Grants to baseline funding of $8.1 million set in 1996-97, removing $1.75 million annual baseline funding for the Abandoned Watercraft Abatement Fund, reducing support allocations by a total of $1.5 million, reducing baseline funding for Quagga Zebra Mussel Infestation Prevention Grants by $1 million, and transfers of $3.9 million from the AWAF and $6.3 million from the Public Beach Restoration Fund back to the HWRF.

SB 101 would also require the Department of Parks and Recreation to, in consultation with stakeholders and staff, the relevant fiscal and policy committees of the Legislature, develop a proposal that includes a combination of fee increases, expenditure reductions, and other actions designed to keep the Harbors and Watercraft Revolving Fund [HWRF] in structural balance on an ongoing basis. The department will be required to present this proposal to the Legislature for consideration no later than January 10, 2026.

As the HWRF deficiency has been considered over the past few years, RBOC has been advocating for updates and efficiencies to state programs financed by boat registration fees to ensure they provide positive benefits to boaters and share costs with other stakeholders where appropriate – prior to an increase in boat registration fees.

RBOC supports the recommendations that were developed by the Division of Boating and Waterways [DBW] in State Parks through a comprehensive stakeholder engagement process. DBW created three ad hoc subcommittees in November 2021 on Revenue Generation, Program Development and Alternative Funding Sources, each chaired by a Boating and Waterways Commission member, staffed by DBW, with stakeholder participation. Each met several times through 2022 and developed recommendations that were submitted to DBW and State Parks on November 17, 2022. The stakeholders participated in a two-year effort and submitted our joint recommendations in writing during this process.

The key expectation was that adoption of the recommendations would reduce costs and increase revenues, thereby reducing or eliminating any increase in the boater registration fees. In January of 2021 the proposal was to raise the fees from $20 to $70 every 2 years. Subsequent proposals called for even more of an increase, from $20 to $80 every 2 years.

As the HWRF deficiency has been considered over the past few years, RBOC has been advocating for updates and efficiencies to state programs financed by boat registration fees to ensure they provide positive benefits to boaters and share costs with other stakeholders where appropriate – prior to an increase in boat registration fees.

The current fiscal year's budget, and SB 101 for the ucpoming year, incorporate a number of revisions including the financial participation of other beneficiaries in invasive species efforts, and the elimination of funding for the beach erosion program that does not benefit boaters. Even with these and other actions, the HWRF deficiency has not yet been resolved.

Delta Conveyance Project

RBOC appreciates the efforts of many boaters to contact their legislators over the past several weeks. The Senate and Assembly have rejected the Governor's proposed budget trailer bills to expedite this project, and they have not yet been introduced as legislation.

Since ongoing negotiations could lead to consideration of the project and these budget trailer bills, RBOC is continuing to request that boaters contact their Senators and Assembly Members and urge them to reject the budget trailer bills [RN 15 16361 and RN 25 16003] that would expedite the processes associated with the Delta Conveyance Project to the detriment of environmental protection, public participation, due process, transparency and oversight.

RBOC agrees with the suggestion of the independent and nonpartisan Legislative Analyst’s Office, as well as individual legislators and other stakeholders who are urging the Legislature to defer these trailer bills so that they are not taken up within the budget development process.

The significant precedent-setting policies raised by the trailer bills, together with their potential implications for the recreational boating community and others, are more appropriately developed, deliberated and voted upon within the public, transparent policy committee process that applies to thousands of legislative measures introduced each year.