Budget revise falls short on funding for homelessness and affordable housing

May 12, 2023

Kayla Sherwood, 530-844-1744, ksherwood@calcities.org

Sacramento — Following the release of Gov. Gavin Newsom’s revised 2023-24 budget proposal, League of California Cities Executive Director and CEO Carolyn Coleman issued the below statement:

“Cities welcome the new proposed investments to help cities reduce the alarming spike in fentanyl-related deaths in our communities and protect residents from the impacts of future floods. We also appreciate the Governor’s efforts to date to provide short-term funding to California’s cities to address homelessness.

However, given that California faces unprecedented and growing affordable housing and homelessness crises, we are disappointed that this budget will bring no new hope to the many Californians who need a home.

Together, the state and local governments are accountable for preventing a deepening of both crises. Cities are making progress planning for 2.5 million new homes, but these plans will not produce enough homes unless the state does its part and invests in affordable housing. Instead, this budget proposal does the opposite and calls for $712 million in delays or cuts to housing programs.

We understand that a budget deficit forces hard decisions. But local governments, homelessness service providers, housing advocates, business leaders, and lawmakers alike agree that ongoing funding is a key part of the solution to ensuring an end to this state’s homelessness crisis. Cities are calling on the state to find a permanent home in the budget, $3 billion annually, to prevent and reduce homelessness and boost the supply of affordable housing.

All levels of government are calling for urgent action to address these crises, but the budget yet again falls short. It’s time for the state to double down on its investments and ensure that all Californians have the housing and services they deserve.”

Established in 1898, the League of California Cities is a nonprofit statewide association that advocates for cities with the state and federal governments and provides education and training services to elected and appointed city officials.