Welcome to the June 15-19 edition of the Main Street Minute from your small-business-advocacy team in Sacramento.

NFIB Thanks its California Members for Flying In

Last week was a busy one for California small business owners who made the trek to Washington, D.C., for NFIB’s annual Fly-In event.

We thank them and the congressional representatives who took the time to meet with them, including California Reps. Young Kim and James Gallagher. to discuss the small business agenda for the remainder of the session.

More about the event in the National section below and here on X. Speaking of X, check out the NFIB California page once in a while. All news releases NFIB California sends out are posted on our X page, as well as on our own web page.

State Budget Deadline is Today

By midnight (Monday, June 15), legislators must pass a state budget for the 2026-2027 Fiscal Year or go without pay until they do. As of this morning (June 15), no final agreement has been announced between the Legislature and governor.

Late last week, Democratic leaders in the Assembly and Senate announced their deal on the budget. According to The Sacramento Bee, “The deal leaves the Senate’s suggestion of a tax on corporations who leave their employees reliant on the state’s Medicaid system, called Medi-Cal, by the wayside for this year. Instead, the agreement leans on a Newsom-proposed tax on commercial health insurance plans to raise more revenue, which is expected to increase the cost of many working Californians’ monthly premiums.”

You knew we’d all be paying more some way. Above bolding, by the way, added by the Main Street Minute.

Yes, Health Care is About the Money
— Even the State Gets This

“In a rare showing of bipartisan support, the state Senate in May overwhelmingly voted to pass a bill that would potentially help hundreds of thousands of California public employees combat obesity by requiring their health insurer to cover anti-obesity medications, or GLP-1 drugs, like Ozempic,” reports CalMatters.

“So why is CalPERS, the health plan for 1.3 million public employees and retirees, recommending its board oppose the bill?

“In one word: Money.

“In a new estimate, the California Public Employees’ Retirement System says the bill would increase premiums by $437.2 million, or about $28 per member, per month. It would cost the state general fund $187.2 million in the first year alone. In subsequent years, costs are likely to increase by ‘tens of millions of dollars annually.’”

Sayonara Single Payer

“The state-level record confirms what the nasty arithmetic and voters’ disgust tell us,” writes George Mason University economist Veronique de Rugy in her nationally syndicated column. “Vermont passed single-payer legislation in 2011 and assigned an expert commission to make the numbers work. After three years of failure, Gov. Peter Shumlin abandoned the plan, admitting that the required 11.5% payroll tax per company plus the 9.5% income tax per Vermonter (with small businesses paying both) would be politically unsurvivable even in Sen. Sanders’ home state.

“Colorado voters rejected their single-payer initiative in 2016 after analysis showed that even tripling taxes wouldn’t cover the costs. Back in California in 2022, the state’s nonpartisan legislative analyst estimated that the proposed single-payer system created by the California Guaranteed Health Care for All Act would cost between $494 billion and $552 billion annually. Imagine the taxes needed to more than double that state’s spending overnight.”

Gas Taxes Increase, July 1

According to the California Department of Tax and Fee Administration, state taxes on a gallon of gas jump to 63.4 cents on July 1, and also on that date, diesel fuel leaps to 48.2 cents a gallon. The new rates don’t include the federal taxes of 18.4 cents a gallon on gasoline and 24.4 cents a gallon on diesel. These taxes also don’t account for various sales taxes slapped on fuel.

In a March Action Alert sent to NFIB members, they were asked to encourage their assembly member and senator to support Assembly Bill 1745, which would have suspended the gas tax for one year. The bill never received a hearing and is now effectively, if not technically, dead for the session.

Is it any Wonder?

Since the ‘Cost of Health Insurance’ took over the No. 1 ranking of small business problems in 1986, it has never ceded ground to the 74 other concerns rated every four years by NFIB and published in its quadrennial Small Business Problems & Priorities report—except in one state. Care to guess which one? You got it.

In 2024, the NFIB Research Center decided to do four separate Problems & Priorities reports for California, New York, Ohio, and Texas. The cost of health insurance held on to its title belt in three of those states, but in California it came in second to ‘Unreasonable Government Regulations.’ Also making California’s top 10 were ‘Uncertainty over Government Actions’ at 9 and ‘State/Local Paperwork’ at 10.

Prior Main Street Minutes have mentioned the above information before, but it always comes back to mind when you read articles like, Why Jollibee’s first San Francisco location in 15 years still hasn’t opened, in the San Francisco Chronicle.

“In addition to the typical building, planning and other permitting processes that local restaurateurs have long complained are too onerous, the Jollibee location had to seek approval from the city’s Historic Preservation Commission to make minor exterior changes; from BART to operate a crane at the site; and from PG&E and the San Francisco Board of Supervisors to add underground utility lines.

“… It’s notoriously difficult to open a restaurant in San Francisco, which requires navigating a maelstrom of regulatory minutiae — from the exact placement of a sink to waving a cloth napkin over a candle flame at a permitting office to prove it won’t catch fire during a candlelit dinner service — and long-siloed city departments, including fire, planning, building and health. Yet many elements of Jollibee’s case, including a Board of Supervisors vote and the involvement of non-city agencies like BART, appear unusual.”

Speaking of the Regulatory World

From Nielsen Merksamer’s Weekly Report

— June 11, the Environmental Defense Fund, Natural Resources Defense Council, and Sierra Club filed an amicus brief in federal district court supporting the California Air Resources Board in litigation brought by truck manufacturers challenging the Clean Truck Partnership.

— June 10, the California Supreme Court declined to review a lower court ruling that rejected a challenge to the California Public Utilities Commission’s Net Energy Metering 3.0 rules. As a result, the lower court’s decision remains in effect and the rules will continue to govern new rooftop solar customers.

— June 8, the Department of Toxic Substances Control issued a press release on a proposed rule that would restrict the sale of cleaning products containing hydrofluoric acid in California. The proposal could affect certain rust removers, stain removers, bathroom cleaners, automotive cleaners, wheel cleaners, and metal cleaners and brighteners. Comments on the rulemaking are due July 20.

— CalRecycle Monthly Meeting – June 16 10:00 am (Sacramento & virtual). The agenda discussion on SB 54 as well as textile and battery recovery efforts. The Department will also discuss several grant programs and facility permits.

Calendar

— June 15: Deadline (by midnight) to pass new state budget

— June 25: Deadline for backers of initiatives that have qualified for the November General Election ballot to have them removed

— July 2-August 3: Legislature on Summer Recess

— August 31: Legislature adjourns its 2026 session

— September 30: Last day for governor to sign or veto bills sent to him.

National

Highlights from Federal Government Relations Principal Louis Bertolotti’s weekly report

— NFIB’s annual DC Fly-In took place last week, with over 100 NFIB members visiting Washington from more than 27 states. We first heard from key policymakers in both the executive and legislative branches. On Capitol Hill, our members then held meetings with over 140 offices, including member-level conversations with at least 49 bipartisan members of Congress.

— Our members met with multiple Senators, including Senate Majority Leader John Thune (SD), Sen. Ashley Moody (FL), Sen. Marsha Blackburn (TN), Sen. Ted Cruz (TX), Sen. Bill Haggerty (TN), Sen. Jon Ossoff (GA), Sen. Maggie Hassan (NH), Sen. Dave McCormick (PA), Sen. Roger Wicker (MS), and Sen. Ted Budd (NC).

— On the House side, we visited with Majority Leader Steve Scalise (LA-01), Rep. Addison McDowell (NC-06), Rep. Jim Jordan (OH-04), Rep. Vern Buchanan (FL-14), Rep. John Rutherford (FL-05), Rep. Gabe Amo (RI-01), Rep. Rob Bresnahan (PA-08), Rep. John Rose (TN-06), Rep. Bob Onder (MO-03), Rep. Byron Donalds (FL-19), Rep. Carol Miller (WV-01), Rep. Young Kim (CA-40), Rep. Glenn Grothman (WI-06), Rep. Ryan Mackenzie (PA-07), Rep. Mark Alford (MO-04), Rep. Matt Van Epps (TN-07), Rep. Scott DesJarlais (TN-04), Rep. Bill Keating (MA-09), Rep. Randy Fine (FL-06), Rep. Brad Knott (NC-13), Rep. Trent Kelly (MS-01), Rep. Troy Carter (LA-02), Rep. Michael Guest (MS-03), Rep. Craig Goldman (TX-12), and Rep. Jason Smith (MO-08). • NFIB also met Sen. Bernie Moreno (OH), Rep. Troy Balderson (OH-12), and Rep. Warren Davidson (OH-08).

— Additionally, NFIB members attended 24 campaign fundraisers while in town, meeting with pro-small business candidates such as Congressman-Elect James Gallagher (CA-01) and FedPAC endorsed Mark Teixeria (TX-21).

Next Main Street Minute: June 22. All Main Street Minutes can be found on the NFIB website here. Pull down the California tab in the upper-right-hand corner, or, to get right to it here, www.nfib.com/california.