The Road Home
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The Road Home

Breaking Down Governor Newsom’s 2022 Homelessness Budget Proposal

As news breaks about the governor’s January proposal for the fiscal year 2022–23 budget, questions have arisen about how announced allocations will affect the Los Angeles Homeless Services Authority and the greater homeless rehousing system in Los Angeles.

Governor Gavin Newsom’s budget release this month is preliminary, akin to an opening bid that helps set the agenda for the budget conversation. The conversation is expected to heat up in the spring, when the governor puts forth his “May revise” budget and the Legislature’s budget committees hold hearings on the FY 22–23 budget, which will begin the rush to finish next year’s budget before the June 15 Constitutional deadline.

It’s important to note that the Governor’s Department of Finance is projecting a $45.7 billion surplus. In addition, last year’s FY 21–22 budget included an array of two-year commitments for key housing and homelessness programs. For the most part, this January release maintains those commitments.

Here’s a look at some of the FY 22–23 budget items that will affect homelessness in Los Angeles:

Continuation of Two-Year Commitments

Several key programs, which saw very large increases in investment in FY 21–22, maintain those investments.

This includes $1 billion for the Homeless Housing, Assistance and Prevention Grant Program (HHAP), representing the State’s first multi-year commitment of homeless service dollars, in addition to $1.3 billion for Project Roomkey, $285 million for the CalWORKs Housing Support Program, $175 million for Housing and Disability Advocacy Program, $92.5 million for HomeSafe, and $92.5 million for Bringing Families Home.

New Homelessness Investments

Two key programs are slated to see significant expansions in funding.

The State’s Encampment Resolution Grant program is set to receive $500 million for FY 22–23, a tenfold increase from last year’s FY 21–22 investment.

An additional $1.5 billion is slated to go to the State Department of Health Care Services’ Behavioral Health Continuum Infrastructure Program to support bridge housing for people with behavioral health needs. Gov. Newsom has specified that this money can be used for the purchase and operation of tiny homes and other bridge housing settings as well as sustaining existing assisted living facilities.

Other Miscellaneous Homelessness Investments

The state has designated $350 million from the general fund to recruit, train, and certify 25,000 new community health workers by 2025. This effort is in partnership with the Department of Health Care Access and Information and the Department of Health Care Services, with specialty certifications in areas that include homelessness.

Also, the Department of Health Care Services is set to receive $5 million to distribute naloxone to homeless service providers.

Affordable Housing Investments

Funding is slated to be added for the State’s Infill Infrastructure Grant program, which funds affordable housing developers to create associated infrastructure as part of affordable housing development. An additional $225 million is expected in FY 22–23 and $275 million in FY 23–24.

The State’s Affordable Housing and Sustainable Communities program is set to receive $300 million over two years in one-time funding. The program supports transit-oriented affordable housing development and transit infrastructure to pair housing investments with greenhouse gas reductions.

An additional $100 million over two years has been designated to support affordable development on state excess land sites and ensure developers can leverage these sites.

Other Anti-Poverty Investments

The CalWORKs program Maximum Aid Payment levels are set to receive $200.7 million, representing a 7.1% increase, to provide cash grants and services to eligible low-income families with at least one child in the home.

The California Food Assistance Program is set to see a $35.2 million increase for planning purposes, increasing to $113.4 million annually in 2025–26, to expand the California Food Assistance Program to Californians aged 55 and older regardless of immigration status, based on statute included with the 2021 Budget Act.

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LA Homeless Services Authority

LA Homeless Services Authority

We lead the fight to end #homelessness in LA County. www.lahsa.org.