Californians to vote on measure governor says he needs to tackle homelessness crisis

SACRAMENTO, California — Californians are set to vote Tuesday on a statewide ballot measure that the governor is touting as a major step in the fight against homelessness and would be the first major update to the state’s mental health system in two decades.

Democratic Gov. Gavin Newsom says Proposition 1 is needed to address the state’s homelessness crisis by boosting investments in housing and substance use programs, but social providers worry it would threaten programs that keep people from becoming homeless.

The measure would limit how counties use money from a voter-approved tax imposed on millionaires in 2004 that is currently earmarked for mental health care under broad guidelines. Revenue from the tax, now between $2 billion and $3 billion a year, makes up about a third of the state’s total mental health budget.

Counties would have to spend about two-thirds of that money on housing and programs for homeless people with serious mental illness or substance abuse.

Newsom wants to give the state more control over how that money is spent, but critics say it would apply one formula to all counties, regardless of the size of the local homeless population, and could compare programs for children with those for the homeless.

Proposal 1 would also authorize the state to borrow $6.38 billion to build 4,350 housing units, half of which would be reserved for veterans, and add 6,800 mental health and addiction treatment beds.

Newsom, with the support of law enforcement agencies, first responders, hospitals and major city mayors, has raised more than $13 million to promote the initiative, far outpacing opponents who raised $1,000.

“The status quo is not acceptable,” Newsom said Monday at an event promoting the measure. “People demand more from us, better from us.”

Homelessness has become one of the most frustrating issues in California and will surely haunt Newsom if he ever mounts a national campaign. The state accounts for nearly a third of the homeless population in the United States; approximately 181,000 Californians need housing. The state, with a current inventory of 5,500 beds, needs about 8,000 additional units to treat mental health and addiction problems.

Newsom’s administration has already spent at least $22 billion on various programs to address the crisis, including $3.5 billion to convert dilapidated motels into homeless housing. California is also providing $2 billion in grants to build more treatment facilities.

The proposal is being touted as the capstone of Newsom’s plan to reform California’s mental health system. He has already pushed for laws that make it easier to force people with behavioral problems into treatment.