October 27, 2026
By Robert Heidt
California has become one of the most expensive places in the country to live and do business. Here in the Capital Region, families are struggling with the cost of housing, electricity and other necessities, while small businesses face rising expenses that make it harder to grow, hire and retain workers.
One major reason is that California takes too long and spends too much to build the basics. Years of bureaucratic delays drive up the cost of homes, electricity, water systems, roads and schools. Employees pay the price through higher rents, mortgages, utility bills and taxes. Small businesses pay through higher operating costs, more expensive facilities and greater difficulty attracting and retaining workers.
That is why the Sacramento Metropolitan Chamber of Commerce supports Proposition 45, the Building an Affordable California Act. We represent more than 2,500 member businesses across El Dorado, Placer, Sacramento, Sutter, Yolo and Yuba counties. Over 70% of our members are small business owners. They understand how rising costs affect their employees, customers and ability to compete.
Proposition 45 offers a commonsense solution: Cut costly red tape and unnecessary delays so California can build the essential projects our communities need faster and more affordably.
Proposition 45 would establish clear, enforceable timelines for the review and approval of essential projects, including housing, water infrastructure, clean energy, transportation, hospitals and healthcare facilities, schools, broadband and wildfire prevention. It would also require courts to resolve legal challenges to those projects within 270 days.
Founded in 1895 by business leaders who championed levees to protect Sacramento from flooding, the Metro Chamber has spent more than 130 years advocating for investments that help our communities grow and prosper.
But today, our ability to deliver that infrastructure is being undermined by a costly and unpredictable approval process.
Sites Reservoir, north of the Capital Region in Glenn and Colusa counties, shows how delays drive up costs. The project is a longtime state priority that would add 1.5 million acre-feet of water storage capacity, enough water to supply more than 4.5 million homes for a year. Its environmental analysis took six years, and the project is still working through final permits and approvals. Over that time, the estimated cost has grown from $3.9 billion in 2021 dollars to an estimated $6.2 billion to $6.8 billion in 2025 dollars.
The same pattern repeats across California. Permitting delays add more than $75,000 to the cost of a new home in California.
The longer we wait, the more expensive it gets. Construction costs in California rose 67% from 2015 to 2025, nearly 25 points faster than overall inflation. For families already stretched thin, and for taxpayers footing the bill for public projects, these delays come at a steep price.
Expert economic analysis finds that Proposition 45 would deliver nearly 200,000 more homes over the next decade and generate $774 million in annual construction cost savings on essential infrastructure projects, including $250 million in annual savings for electricity customers.
Across all essential projects, experts estimate Proposition 45 could cut costly delays by two to 10-plus years.
These aren’t abstract numbers. They represent more homes for working families, lower utility costs, and more taxpayer dollars available for the roads, schools and public services our communities depend on.
When taxpayer-funded infrastructure projects get bogged down in years of delays, everyone pays more and waits longer.
Proposition 45 would set these timelines without taking decisions away from local communities. Environmental review and public participation would remain part of the process, and cities and counties would retain their authority to approve or deny projects. The measure does not dictate the outcome; it creates a more predictable timeline for reaching a decision.
For more than a century, the Metro Chamber and its members have helped the Capital Region grow by supporting the investments necessary for a strong economy and a better quality of life.
That same commitment guides our support for Proposition 45. Our region cannot afford to keep paying more and waiting longer for the basics.
Robert Heidt is the CEO of the Sacramento Metropolitan Chamber of Commerce.