Sentence Correction (SC) | Re: QOTD: Faced with an estimated $2 billion budget gap

But if we don't have the word "that," there's no need for the subjunctive. It's perfectly acceptable to have "proposed" + "noun," as we do in the OA here. These, for example, are totally fine:

• Tim proposed an equitable solution to the problem.
• Governor Hickenlooper proposed groundbreaking legislation that would offer free carne asada burritos to GMAT tutors in Colorado.

I hope that helps!