Under mounting pressure to combat California’s escalating homelessness crisis, Governor Gavin Newsom declared on Tuesday that his administration will expedite $3.3 billion in funding for counties and private developers to kickstart the construction of additional behavioral health treatment centers. This initiative forms part of his broader strategy to finance housing and substance use programs.
This substantial allocation marks the initial disbursement from a voter-approved measure aimed at aiding cities, counties, tribes, and developers in constructing or refurbishing treatment facilities and clinics. Passed by a narrow margin in March, the measure empowers the state to borrow nearly $6.4 billion to erect 4,350 housing units. It also mandates that counties allocate two-thirds of the proceeds from a tax on millionaires to housing and homeless programs targeting individuals with severe mental illnesses or substance abuse issues. Applications for this funding will be accepted starting in July.
Governor Newsom, speaking against the backdrop of an ongoing construction project near Redwood City set to yield 117 psychiatric beds, urged local authorities to expedite construction efforts. Emphasizing accountability, he urged them to capitalize on the reforms provided by his administration and translate them into tangible results.
Prioritizing homelessness as a political imperative, Governor Newsom has vowed to overhaul the state’s mental health system. Despite significant investment, homelessness remains a persistent challenge in California, which accounts for nearly one-third of the nation’s homeless population. The state, grappling with approximately 171,000 individuals in need of housing, faces a shortfall of around 8,000 behavioral health units to address mental health and addiction issues.
The newly announced grant can be allocated to a diverse array of programs, including crisis facilities, addiction treatment, outpatient services, and secure treatment beds. State Senator Susan Eggman emphasized the importance of flexible funding to address diverse needs. However, concerns have been raised by social service providers and county officials about potential adverse effects on existing programs. Disability rights advocates fear an increase in involuntary commitment due to the influx of funding.
The administration aims to expedite the approval process, with proposals expected to be greenlit in the fall for dispersal to local governments by early next year. Mark Callagy, the executive officer in San Mateo County, hailed the bond funding as a catalyst for broader service expansion.
Governor Newsom also called out counties for sluggish implementation of the program, urging them to fulfill their obligations promptly. The state’s plans also include making housing bond funding available by year-end, contributing to initiatives to convert rundown motels into homeless housing.
