California Governor Newsom Delivers State-of-the-State Address on Homelessness

California Governor Gavin Newsom delivered his State-of-the-State address on February 19, focusing on the issue of homelessness. He discussed the housing investments proposed in his 2020-21 budget request released on January 10 and outlined a framework for addressing homelessness in the state. His plans include a coordinated statewide response, emergency actions to reduce street homelessness, increased attention to behavioral health services, stable funding to expand the supply of affordable housing, and more emergency shelters. Governor Newsom emphasized that a comprehensive state response to homelessness requires shared responsibility and accountability by state and local partners.

Governor Newsom’s 2020-21 budget proposal calls for significant state funding to address homelessness, including a $750 million initial investment in the California Access to Housing Services Fund. This statewide fund would support the development of affordable homes, supplement and expand rental subsidies, and stabilize boarding and care homes. The budget also includes $695 million to reform the Medi-Cal system to provide more comprehensive care for individuals experiencing mental illness and homelessness. The administration also proposes reforming the Mental Health Services Act (Proposition 63) to prioritize early intervention for people experiencing mental illness and homelessness or involved in the criminal justice system.

Governor Newsom referenced last year's legislative session, which included a robust package of affordable housing bills, and discussed the Executive Order (N-23-20) he issued on January 8. The Executive Order deployed emergency mobile home trailers and services for homeless families and seniors, directed state agencies to evaluate excess land that could be converted into short-term emergency shelters, and established a multiagency “strike team.” In his State-of-the-State address, Governor Newsom announced that 286 state properties would be made available for local governments to use for homeless shelters. The administration has mandated that shelters built on excess state land must offer services, such as medical care or housing assistance. Leaders in several cities and counties have expressed concerns about the excess land initiative, which would offer state land for free but would not provide the funds needed to operate the shelters.

Governor Newsom emphasized the importance of state collaboration with cities and counties to address the crisis while also holding local governments accountable through comprehensive audits and a “do-it-or-lose-it" policy. He also proposed establishing a statewide homelessness data system, increasing cross-sector collaboration, and expanding the supply of affordable homes.

The governor also reiterated that he would continue to seek to partner with the federal government to address the homelessness crisis in California. In a September 16, 2019, letter to Present Trump, Governor Newsom called on the administration to increase federal investments in housing solutions for people experiencing homelessness and requested 50,000 additional Housing Choice Vouchers and Veterans Affairs Supportive Housing vouchers. HUD Secretary Ben Carson rejected the request in a September 18, 2019, letter in response.