Cal Cities calls for a permanent $3 billion fund to help cities boost housing supply and prevent homelessness

The League of California Cities is calling on Gov. Gavin Newsom to allocate $3 billion in his proposed 2023-24 state budget to ongoing funding to support cities’ efforts to reduce homelessness and increase housing. Cal Cities outlined the organization’s state budget priorities in a letter sent to the Governor’s Office today. 

Solving the statewide affordable housing and homelessness challenge requires partnerships between all levels of government, as well as a state investment that matches the scale of the crisis. Although the state has made major investments aimed at solving these crises, these limited, one-time pots of funding prevent long-term planning efforts and stifle more ambitious goals.

An ongoing, sustainable $3 billion investment from the state would spur much-needed housing construction, ensure that Californians experiencing homelessness get the support they need, and prevent thousands more from losing their homes.

Cal Cities is calling on the state to honor commitments made in the 2022 Budget Act that support local governments’ financial sustainability, including funding for organic waste recycling, disaster preparedness, homelessness, housing production, and broadband access. Cal Cities is also urging the state to pay down its growing unfunded mandate debt of $1 billion to local governments so they can continue to deliver on a wide range of state-required programs.

Any action in the proposed budget that would reduce or eliminate local revenue streams would jeopardize the delivery of critical resources to California residents. Cal Cities will be reviewing the Governor’s proposed budget in January as well as its potential impact to cities.