Realignment
and Homelessness Funding
Realignment is a transfer of a portion of the state sales tax, and vehicle license fees to pay for county public health, indigent health, social services and public safety. These funds are down by 13% ($1.4 billion) due to the Covid 19 recession.
The May Revision allocates a portion of the state’s CARES Act funding to local governments—$450 million to cities and $1.3 billion to counties—to be used toward homelessness, public health, public safety, and other services to combat the COVID-19 pandemic.
California has been using federal FEMA funds to house homeless people with Covid 19 diagnoses in isolation facilities in unused local motels — Project Roomkey. About 7,200 are occupied. In addition 1,300 trailer units have been secured and used for isolation of homeless individuals with Covid 19. The May Revision proposes $750 million in federal FEMA funding to purchase unused hotels and motels secured through Project Roomkey, to be owned and operated by local governments or non-profit providers for vulnerable homeless individuals and families.