$2B a year to solve homelessness? That’s what mayors say they need
How much money will it take to get enough unhoused residents into stable housing before Californians start seeing a visible improvement in the state’s intractable homeless crisis?
More than a dozen mayors from California’s largest cities came to Sacramento Wednesday with their answer. They told Gov. Gavin Newsom it will take $2 billion in annual, ongoing funding to ease homelessness on their streets.
The ask is $1 billion less than the lobbying group League of California Cities called for last week. It is double the $1 billion in one-time funding currently proposed by the governor.
All of the numbers come as the state faces a budget deficit projected to top $31.5 billion in the fiscal year that begins July 1.
The mayors acknowledged the difficult fiscal position but argued that California’s “biggest humanitarian crisis” deserves an immediate influx of consistent funding.
“Homelessness is solvable but we need the resources to scale the projects and programs,” said San Diego Mayor Todd Gloria.
“… We acknowledge that it’s hard for many Californians to see the results and that’s because we’re simply not keeping pace with the number of people who are becoming newly homeless,” he continued.
Gavin Newsom opposes ongoing homeless funding
Daniel Lopez, a spokesperson for the governor, said Newsom met with California’s Big City Mayors coalition on Wednesday to discuss local initiatives to address the crisis and the governor’s plan to dramatically expand the number of mental health treatment beds for those living on the streets.
Lopez would not say whether the governor planned to agree to their request for more funding. Newsom in the past has been outspoken about his opposition to ongoing homeless funding.
The governor, who has taken much heat for the growing homeless population, has publicly questioned whether the state has seen an adequate return on its investment.
He has demanded ambitious plans from local officials to tackle the problem.
Since 2019, California’s Homeless Housing, Assistance and Prevention Program (HHAP) has awarded local governments with nearly $3 billion to run shelters, build affordable housing and provide services to unhoused residents. Newsom, whose proposed 202324 budget allotted another $1 billion, said that he was “not backing away” from the issue.
In an effort to hold local officials accountable for results, Newsom in 2022 required them to submit action plans as a condition of receiving funding through the program. Those who meet their targets will be rewarded with additional money.
California mayors push for more money despite budget deficit
During Wednesday’s press conference, the mayors commended the governor for launching the program and shared stories about people in their communities who have benefited. They also agreed that the state should continue measuring their success and hold them accountable for reducing their homeless populations.
But in order to get more people off the streets than the number entering homelessness each day, the mayors argued, more resources were required.
“We need to all take it to the next level and we cannot do it alone,” said Sacramento Mayor Darrell Steinberg.
As part of their request, the mayors are also asking the state to guarantee approval and funding for 2,300 units proposed under the Homekey program, which provides funding for agencies to convert hotels, motels and other residential and commercial properties into permanent or interim housing for unhoused residents.
Senate Minority Leader Brian W. Jones, R-san Diego, criticized the ask, saying that “throwing more money at the problem” would not fix it.
“Under the leadership of the current San Diego and Sacramento mayors, homelessness has skyrocketed while spending to tackle the crisis has also shot up simultaneously,” Jones said in a statement. “Homelessness has spiraled out of control under their watch and they simply don’t have credibility to be the spokesmen of ‘solving’ homelessness.”