SACRAMENTO, Calif. — In a significant move aimed at tackling the worsening homelessness crisis, California’s state lawmakers voted on Tuesday to advance a proposal for voters to consider next March. This proposal seeks to revamp the way counties fund mental and behavioral health programs.
The bill, championed by Democratic state Senator Susan Eggman, has gained approval in the state Assembly and awaits one final vote in the Senate before it can secure a place on the ballot.
In 2004, California voters had approved a special tax on millionaires, with the intention of financing mental health programs. The funds generated from this tax, one of the state’s most unpredictable sources of revenue, have primarily been distributed to county governments, allowing them to allocate the resources as they saw fit, within broad guidelines.
However, Democratic Governor Gavin Newsom has advocated for changes to limit the flexibility of local governments in utilizing these funds. His proposal emphasizes directing the money toward mental health services and programs addressing drug and alcohol addiction. Under this plan, two-thirds of the tax revenue would be allocated for services targeting individuals who are chronically homeless and dealing with severe mental health issues, along with unhealthy drug and alcohol use. Counties would also be required to adopt a standardized method for tracking and reporting their expenditures.
“The intersection of behavioral health disorders and homelessness is playing out every day on our streets, in our schools, in the smallest of rural communities, in our largest cities,” remarked Democratic Assemblymember Jim Wood before voting in favor of the bill. “This provides Californians with an opportunity to weigh in on how to address this.”
Governor Newsom is additionally seeking voter approval to borrow $6.3 billion, an increase from the initial proposal of $4.6 billion, to finance the creation of 10,000 new mental health treatment beds. This adjustment came after a coalition of mayors called for more significant funding to help cities address the homelessness crisis.
California is home to over 171,000 homeless individuals, constituting roughly 30% of the nation’s homeless population. In recent years, the state has allocated more than $20 billion to address this issue, yielding mixed results.
Initial plans to modify the tax structure faced resistance from county officials and service providers who expressed concerns about the potential erosion of local decision-making power over funding allocation. They also feared that the changes could pit programs for children against those aimed at helping the homeless.
To address these concerns, the administration revised the bill in August, designating a portion of the funds for children’s services and granting local governments greater control. The state committee responsible for overseeing these funds would maintain its independence from the governor and expand its membership as part of these revisions.
