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Governor Newsom spars with local leaders over California鈥檚 homelessness funding

California Gov. Gavin Newsom listens to a reporter's question as he outlines his proposed 2025-2 $322 billion state budget during a news conference at California State University, Stanislaus in Turlock, Calif., Monday, Jan. 6, 2025.
Rich Pedroncelli
/
AP Photo
California Gov. Gavin Newsom listens to a reporter's question as he outlines his proposed 2025-2 $322 billion state budget during a news conference at California State University, Stanislaus in Turlock, Calif., Monday, Jan. 6, 2025.

Governor Gavin Newsom has been noticeably frustrated over homelessness recently, and a lot of that frustration is being directed at local governments.

California is home to , which amounts to around 187,000 people.

Increasingly, the governor has criticized cities and counties for not doing enough on the issue, particularly when it comes to encampments.

In the last year Newsom has taken a harder stance. Last summer, he issued an executive order to adopt policies for clearing encampments. Earlier this month, he released for local governments to use as they adopt policies to clear the makeshift camps that line sidewalks, freeways and riverbanks in communities across the state. The model suggested banning camping in public places for longer than three consecutive nights.

鈥淭ime to do your job, people are dying on their watch, dying on their watch,鈥 Newsom said during a recent press conference. 鈥淗ow do people get reelected? Look at these encampments, they鈥檙e a disgrace.鈥

Since 2019, the state has provided money for local governments to combat homelessness through the . But, Newsom didn鈥檛 include any new HHAP grants in his latest budget proposal.

Instead, the governor said he wants to see more accountability from cities and counties that spend state dollars. His administration is tracking whether local jurisdictions are meeting certain benchmarks for shelter capacity and housing development.

鈥淚鈥檓 not interested in funding failure anymore,鈥 Newsom added.

Local government advocates aren鈥檛 happy with Newsom鈥檚 approach. Some say the governor鈥檚 just pointing fingers and that withholding funds will only make the crisis worse.

鈥淲e certainly are not not going to make progress, if money is being clawed back from the only entities that are doing the primary work on the ground locally and that's local government,鈥 said Graham Knaus, CEO of the California State Association of Counties, which lobbies for county governments.

Mayors from some of the state鈥檚 largest cities rely on state homelessness grants to supplement their local budgets. They use these dollars to increase beds in local shelters, conduct outreach and provide housing services.

Some local elected leaders are pushing back against Newsom鈥檚 decision to withhold funding.

Sacramento Mayor Kevin McCarty says the state grants account for around half of his city鈥檚 homelessness budget.

鈥淥ne thing鈥檚 clear, if you take that money away, there鈥檒l be more people on our streets,鈥 McCarty said at a recent press conference.

Others, including San Diego Mayor Todd Gloria, said the state could be doing a better job clearing encampments on its own property.

鈥淚 think we shared the governor's frustration,鈥 Gloria said. 鈥淲hat I would say with respect is the worst encampments in my city are on Caltrans right of way on state-operated properties that we are not by law allowed to enter.鈥

This funding fight between Newsom and local representatives comes as . The governor and legislature will have to make tough decisions about the final budget ahead of mid-June.

But, it鈥檚 possible there鈥檚 an underlying political strategy at work here as Newsom tries to draw a line in the sand on homelessness.

鈥淚t鈥檚 a very vulnerable weakness that the governor has as he positions himself nationally,鈥 said Mike Madrid, a Republican political consultant in Sacramento.

Madrid said the state鈥檚 homelessness crisis is one of Newsom鈥檚 biggest political liabilities, especially if he decides to run for president in 2028.

He also said homelessness is a scar on California鈥檚 reputation among other states.

鈥淎nd I think as the governor is realizing that outside of this state, he's going to have to either again come up with a solution quick in the next 18 months or he's going to have to fix the blame. If you can't fix the problem, fix the blame,鈥 Madrid said.

Courtney Harris lives unhoused in North Sacramento. He says he and his neighbors need more basic supplies like water and soap.
Chris Nichols
/
CapRadio
Courtney Harris lives unhoused in North Sacramento. He says he and his neighbors need more basic supplies like water and soap.

Unhoused Californians are stuck in the middle

As state leaders argue over homelessness funding ahead of the state鈥檚 budget deadline, people who are unhoused are stuck in the middle.

Courtney Harris lives in North Sacramento and said he鈥檚 been without a home for six years. Harris added he needs more access to basic daily items.

鈥淲e need water supply. If we're going to be out here, we need like soap, supplies, because people get germs and get sick out here,鈥 Harris explained, as he sat under a blue tarp on a warm afternoon last week.

Harris and his unhoused neighbors are bracing for the hot months ahead, he added.

Chris, who also lives in North Sacramento, didn鈥檛 provide his last name for privacy. He said he鈥檚 noticed a shift when it comes to how governments talk about people living on the streets.

鈥淚鈥檝e been on and off indoors, outdoors my whole life, but I've been self-sufficient and taking care of it,鈥 Chris said, adding he recycles cans and bottles to make money. 鈥淣ot everybody's bad out here because they're homeless. Sometimes they just got the wrong cards dealt, you know what I mean?鈥

As thousands of people remain on the street, the governor and Legislature will decide on a final state budget ahead of their June 15 deadline.

Cities and counties say they鈥檒l now ask state lawmakers to include funding for homelessness grants, given Newsom鈥檚 refusal.

Copyright 2025 CapRadio

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