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GMAT Verbal Section | Usage of 'that' while using 'Proposed'

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Hello,

Please someone answer if it is must to use 'that' when we use 'propose' ( subjunctive verb )? I came across a question in which the right choice does not contain 'that'. Below is the question: ( OA- A)

Faced with an estimated $2 billion budget gap, the
city's mayor proposed a nearly 17 percent reduction
in the amount allocated the previous year to maintain
the city's major cultural institutions and to subsidize
hundreds of local arts groups.
(A) proposed a nearly 17 percent reduction in
...

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