California Governor Gavin Newsom announced on Tuesday that $3.3 billion from the state’s new mental health bond will be released ahead of schedule. This funding will be used to build more behavioral health treatment centers and housing for the homeless as the state deals with a growing homelessness crisis.
This is the first allocation of funds from a ballot measure aimed at helping cities, counties, tribes, and developers build or renovate treatment centers and clinics. The measure was passed by a narrow margin in March after strong support from Newsom, who promoted it as a key part of the state’s efforts to reduce homelessness.
The measure allows the state to borrow nearly $6.4 billion to create 4,350 housing units. It also requires counties to use two-thirds of the money from a tax on millionaires for housing and programs for homeless people with serious mental illnesses or substance abuse problems. Applications for this funding will open in July.
Newsom, speaking at a construction site near Redwood City that will add 117 psychiatric beds, urged local governments to act quickly. “It’s time to do your job. It’s time to get things done,” he said. “You asked for these reforms, we’ve provided them. Now it’s time to deliver.”
Newsom, a key supporter of President Joe Biden’s re-election campaign and a potential future presidential candidate, has made homelessness a political priority and pledged to reform the state’s mental health system. Despite significant state spending to address homelessness, major cities like Los Angeles have not seen dramatic changes.
California has nearly a third of the nation’s homeless population, with around 171,000 people needing housing. The state currently has 5,500 behavioral health beds but needs about 8,000 more to adequately treat mental health and addiction issues.
The grant money Newsom announced could support various programs, including short-term crisis facilities, addiction programs, outpatient services, and locked treatment beds. The state will evaluate projects based on local service gaps.
“Voluntary care is always best, but sometimes we need a little bit more,” said state senator Susan Eggman, who authored the bill that became part of the ballot measure, referring to funding potentially going to locked treatment beds. “Don’t say no. Let’s say how.”
Some social service providers and county officials opposed the measure, fearing the new funding structure could harm programs that prevent homelessness but do not focus solely on housing or drug treatment. Disability rights advocates were also worried that new investments might lead to more people being confined against their will.
State officials have said they will streamline the application process as much as possible, with no strict deadline for project completion. Some projects, such as renovations of existing facilities, could open within months. Newsom said the state would approve proposals in the fall, allowing funds to be distributed to local governments by early next year.
The bond funding will enable counties to provide needed services more quickly, said Mark Callagy, executive officer of San Mateo County. “Now we can dream bigger because of this,” he said.
Newsom, who last year pushed for a law to make it easier to mandate treatment for people with mental health and addiction issues, criticized counties for not already implementing the program. The state has given most counties a December deadline to start their efforts. Eight counties have implemented the initiative and received 450 applications in the last six months, according to the governor’s office.
“The state’s vision is realized at the local level,” Newsom said. “We can’t do that job. They need to do their job.”
The state also plans to make nearly $2 billion in bond funding for housing available by the end of this year. This will expand existing housing initiatives, including a $3.5 billion effort to convert rundown motels into homeless housing.
