‘We’re not backing away at all.’ Newsom calls for homeless spending despite budget shortfall

Despite a larger than projected shortfall in the 2023-24 budget, California Gov. Gavin Newsom on Friday reaffirmed substantial investments in addressing homelessness and housing in the state.

“We’re not backing away at all,” Newsom said. “Fully funding, full commitment to move forward with that $15.3 billion to address the issue of these damn encampments.”

The governor’s May Revise budget calls for a total of $306 billion, including $224 billion in the general fund, and anticipates a $31.5 billion deficit, which Newsom said was “well within the margin of expectation and well within our capacity to address.”

Newsom said the $15.3 billion includes $750 million in grants to clean up homeless; camps; $3 billion for the state’s Homekey program; $2.2 billion for behavioral health; $1.5 billion for bridge housing, and $860 million for community care expansion, “which is a fancy way of saying boarding care homes.”

The governor also called for $291 million in ongoing costs for the state’s “CARE Court” program.

“This is all about accountability. And you’ll see in the May Revise, the trailer bill, accountability, accountability. And that extends to housing affordability. It’s about accountability,” Newsom said.

On affordable housing, Newsom pointed to recent state lawsuits against the cities of Huntington Beach and Elk Grove, adding that “there are others on the list,” though he declined to elaborate.

The governor’s revised plan also calls for a total of $367.5 million in proposed housing reductions, but proposes $2.85 billion for this coming budget year.

“As proposed in the Governor’s Budget, if there is sufficient General Fund in January 2024, $350 million of these reductions will be restored,” according to the May Revise budget summary.

Newsom said his budget includes $4 billion for student housing, with $450 million in one-time general fund money this year and an additional $95.4 million in the next, for affordable student housing for California Community College students.

As for California State University and University of California students, the May Revise calls for shifting $1.1 billion in current and planned general fund dollars to UC- and CSU-issued bonds for affordable housing for those systems.

This story was originally published May 12, 2023 at 12:19 PM with the headline "‘We’re not backing away at all.’ Newsom calls for homeless spending despite budget shortfall."