Fiscal Year (FY) 2027 Proposed Fee

Fee Timeline

• • On June 11, 2026, the Board will hold a public hearing to hear public testimony and consider setting the Fees for FY 2027.
  • On May 14, 2026, the Board reviewed and provided input on the FY 2027 proposed fees.
  • On April 9, 2026, the Board:
    • Approved the FY 2027 Budget
    • Discussed the projected FY 2027 Fee and provided additional direction regarding Tier 2 allocation methodology and the treatment of staff costs.
  • On March 12, 2026, the Board received and provided input on the FY 2027 Draft Budget and Fee Approach.
  • On August 14, 2025, the Board adopted Resolution 2025-01 approving the revised Regulatory Fee Policy.
  • On June 12, 2025, the SVBGSA Board of Directors (Board) adopted Resolution 2025-02 setting the Groundwater Sustainability Fee (Fee) for FY 2026.

Fee Background

The Fee is a regulatory fee adopted by the SVBGSA to fund implementation of the Groundwater Sustainability Plans (GSPs) in compliance with the Sustainable Groundwater Management Act (SGMA). The Fee is structured into two tiers. Tier 1 Fee funds basin-wide regulatory activities that apply across all subbasins, including administration, reporting, and shared technical work. Tier 2 Fee funds subbasin-specific or targeted implementation activities, including project development, demand management, seawater intrusion response, and Integrated Implementation Strategy (IIS) activities.

As reflected in the FY 2027 Work Plan and Budget, SVBGSA continues transitioning from planning and compliance activities toward implementation-focused work. This transition results in a greater portion of activities being associated with specific subbasins, implementation pathways, and regulatory needs. At the April 9, 2026 Board meeting, the Board provided direction to further refine the projected Fee and evaluate allocation of a portion of staff costs to Tier 2 activities. In response to Board input, the updated projected Fee reflects the following revisions:

• Allocation of Executive staff costs between Tier 1 and Tier 2 based on the distribution of FY 2027 programmatic expenditures
• Refinement and clarification of Tier 2 allocation rationale and methodology to further support consistency with Proposition 26 requirements

Historically, all staff costs were allocated to Tier 1. The updated approach recognizes that a significant portion of Executive staff time is increasingly devoted to implementation-focused activities associated with specific subbasins, including project development, integrated implementation strategy efforts, stakeholder coordination, and program management. The revised allocation approach allocates a portion of Executive staff costs to Tier 2 while retaining basin-wide oversight functions in Tier 1. The updated Tier 2 methodology continues to apply the following allocation principles:

• Direct allocation where activities are attributable to a single subbasin
• Equal allocation where multiple subbasins receive comparable benefit
• Proportional allocation where measurable cost drivers exist, such as cropped acreage
• Weighted allocation where implementation pathways and anticipated reliance on projects versus demand management differ among subbasins
• The updated Fee projection also incorporates the rationale and methodology memorandum prepared to document consistency with Proposition 26 requirements, including cost-of service principles, reasonable allocation methodologies, and transparency in fee structure.

Additional Documents

• Memorandum: Rationale and Methodology for FY 2027 Tier 2 Fee
• SVBGSA Work Plan FY 2027

* Agriculture Fee Basis includes an allowance of 3% for uncollectable revenue (bad debt) and land use changes.

** Domestic Fee Basis includes an allowance of 6% for uncollectable revenue (bad debt) and land use changes.