Homelessness in Governor Newsom’s Proposed 2020-21 Proposed Budget
The new proposals from the Governor to address California’s estimated 151,000 (and growing) homeless population are 1) build more housing and provide more housing subsidies, 2) reform MediCal to make it more integrated, accountable and flexible, and 3) make local behavioral health more accountable and effective.
There are three types of homelessness: chronic, episodic and transitional or situational. People are homeless for a variety of reasons: 1) the high costs of housing and insufficient supply of affordable housing, 2) insufficient incomes to pay for housing, and 3) for some mental illness and substance abuse. Some sleep on the streets; some sleep in cars, and some sleep in shelters. New York for example has a high rate of homelessness like California, but a high rate of people living in shelters. California suffers from both a high rate of homelessness and a very low rate of shelters available for the homeless.
The 2018 Budget Act provided $500 million in aid to local governments to address homelessness. The 2019 Budget Act provided $1 billion in aid to address homelessness through local governments. The Governor’s 2020-21 Proposed Budget has $750 million in one time funds to establish the California Housing and Services Fund for the Homeless, which will contract with regional administrators to subsidize rents, develop new units and stabilize and expand board and care facilities.
The 2019 Budget Act added $120 million for whole person care pilots through Medi-Cal and invested $110 million in mental health. This year’s proposed budget includes a new MediCal five-year waiver for whole person care, behavioral health and intersections with the revolving door criminal justice system. It establishes a behavioral health task force to make county mental health and substance abuse treatments more accountable, integrated and effective, including amending Prop 65 to include substance abuse treatments and a better focus on care for the homeless.
The Governor has issued a 100 day challenge to local governments to collaborate, using state lands for temporary shelters and directed Dept of General Services to identify state lands that can be used for temporary shelters and/or the development of more affordable housing.
Prepared by: Lucien Wulsin
Dated: 1/18/20