Article Executive Director's Message By League of California Cities Executive Director and CEO Carolyn Coleman

This year could bring changes to the state and federal budgets — but Cal Cities is steadfast in its goal to protect cities

Twenty-five years ago, my journey serving local governments began. It was a cold January morning in 2000, and I was walking through the doors of the Indianapolis city hall for the first time as a senior member of the newly elected mayor’s cabinet. One year later, President-elect George W. Bush, a Republican, was sworn in as our nation’s 43rd president. The transition from eight years of the presidency of Bill Clinton, a Democrat, was complete. During that transition, questions swirled among those of us in the local government circles about what a new administration would mean for cities. 

Fast forward to 2025. I’m still serving local governments and the president’s political party has changed five times over. After leaving city hall in 2005, I joined the National League of Cities, the nation’s leading advocate for cities and towns from across the country. During my decade at NLC, I served as the organization’s chief advocate, protecting and promoting city interests before administrations of both political parties.

In 2016, I joined Cal Cities as CEO/Executive Director. Whether representing one city, cities nationwide, or cities in the Golden State in matters before the federal government, my organizations’ priorities through each presidential transition — regardless of political party — have remained the same: Engage and educate federal officials to advance and protect the interests of cities. 

As we enter the start of the next federal administration, our focus must continue to be strengthening the partnership between the federal government and cities. This is as true now as it was in 2001, 2009, or 2017. This time around, just as in the past, it means following federal spending and protecting local authority. 

With a fiscal year that began in October 2024, a priority on the new administration and Congress’s to-do list must include passing fiscal spending bills that keep the federal government open for business. Our communities can’t afford the uncertainty that comes with short-term spending bills when we’re trying to focus on implementing long-term solutions to the challenges our communities face.    

The new administration and Congress must also begin developing the federal spending plan for fiscal year 2026. Budgets are about priorities, and there is a real potential for significant differences in spending priorities between the last administration and the new one. Cal Cities’ federal priorities are nonpartisan — a strong partnership to support investments in streets, roads, broadband, housing and community revitalization, climate change adaptation, and relief from natural disasters to name a few. These are all areas where the federal government has the bandwidth to be a strong partner in strengthening the economic well-being of our cities and our residents.   

Besides calling for direct federal investments in cities, Cal Cities will keep an eye on federal investments in the state budget. Experts have forecasted multiple years of deficits in the state budget and predict there is “no capacity for new commitments.” According to the California Budget and Policy Center, federal funding makes up more than one-third of the state budget and funds over 60% of California’s Medi-Cal program. This funding is critically important because California’s over-60 population is growing faster than any other age demographic and will make up a quarter of the state’s population by 2030.

A cut in federal funding to California for Medi-Cal could result in state lawmakers trying to fill the gap by cutting funding for other state programs — like the Homeless, Housing and Prevention program, the Greenhouse Gas Reduction Fund, and the Infill Infrastructure Grant Program — that cities rely upon to deliver services to their residents. We will continue to monitor federal proposals to decrease funding for this important program. 

Further, the National League of Cities anticipates that Congress, as part of an effort to extend the Trump tax cuts, may try to eliminate the tax exemption for municipal bonds to pay for or offset the revenue loss the cuts generate. Cities of all sizes rely on this tool to finance the construction of schools, hospitals, utility projects, and affordable housing — all of which are vital to the quality of life and job creation in every community. Cal Cities, in partnership with NLC and the other state municipal leagues, is already mounting a robust coalition of stakeholders to oppose such an effort. 

On the policy front, the new administration can be expected to continue efforts to reduce the footprint of federal regulations and ease regulatory costs and effects. Cal Cities’ focus will be ensuring these efforts are not achieved at cities’ expense by shifting costs to local governments or eroding local decision-making.    

From 2000 to today, I have learned that regardless of which party resides in the White House, cities must amplify and elevate their voices individually and collectively to ensure that federal lawmakers hear local perspectives. Together, with our federal and state league partners, work is already underway to engage with the new administration and members of Congress to share local stories about the vital impact federal investments have on uplifting our communities.

Cities solve problems and get things done, but we can’t do that effectively alone. Cities need the resources to deliver. So, as we ring in the New Year, let’s remain united and speak with one voice in Washington and Sacramento about what cities need. I’m confident we can advance our cities’ priorities and protect our interests by doing so.