California Gov. Newsom needs 'significant' revenue to combat homelessness
Newsom called for a “crisis-level response” to address the growing problem
California's Democratic governor, Gavin Newsom, is focusing resources on alleviating the state’s homelessness crisis, at a time when more than 150,000 residents have no home.
During his State of the State address on Wednesday, Newsom said California would need a “significant” revenue stream to address homelessness, as he detailed plans to enact a “more focused, crisis-level response.”
“We’re going to need significant, sustainable revenue,” Newsom said before state lawmakers. “I’ve pledged to work with all of you closely to identify where this ongoing revenue will come from, but we’ve got to find it.”
He stopped short of saying whether a tax hike could be in store.
Newsom’s budget for the current fiscal year asks for $750 million toward combating the homelessness problem, on which he blamed “massive failures” in the mental health system, disinvestment in the social safety net and California’s housing shortage for perpetuating.
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Part of Newsom's solution appears to include getting the state government more involved in local government spending. According to Newsom, more than $160 million worth of mental health funds went unspent among California counties – money that could be used toward getting people off the street. To remedy this problem, Newsom proposed lowering the threshold of what counties are allowed to withhold when it comes to spending on mental health.
“Spend your mental health dollars by June 30 or we’ll make sure those mental health dollars get spent for you,” Newsom said.
The governor also called on the state to “massively” increase housing production, which experts have told FOX Business has been constrained by burdensome regulations.
New shelters will be exempt from a law that has hindered development, the Democratic governor said.
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The comments were part of Newsom’s multi-pronged solution framework, which also called for improving mental health assistance to individuals who need care, including lowering thresholds for compelling people into care.
Another potential remedy was updating systems to measure progress on homelessness within communities, and tying funding to results.
California is home to 22 percent of the nation’s homeless population.
The California governor took a shot at the federal government for recently proposed cuts to funding for the U.S. Department of Housing and Urban Development.