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The Legislative Analyst's Office has just published the following report:
 
The 2020-21 Budget: The Governor’s Homelessness Plan

In this report we provide the Legislature with background on the state's homelessness challenges, provide an update on major recent state efforts to address homelessness, assess the Governor’s 2020-21 homelessness plan, propose a framework to help the Legislature develop its own plan and funding allocations, and offer an alternative to the Governor’s 2020-21 budget proposal.
 
Governor’s 2020-21 Budget Proposal Includes Significant State Funding for Homelessness. The Governor’s 2020-21 budget reflects his commitment to addressing this complex issue by once again proposing significant state resources towards addressing homelessness, including:
 
·        Proposes $750 Million Deposit Into Newly Established California Access to Housing Services (CAAHS) Fund. The Governor proposes $750 million General Fund in one-time funding to the CAAHS Fund he established through executive order within the Department of Social Services. The administration indicates that a primary goal of the fund is to help alleviate street-based homelessness and increase the number of housing units.
·        Proposes $695 Million to Reform the Medi-Cal System to Serve Populations With Complex Needs. The Governor’s budget proposes $695 million total funds ($348 million General Fund) to begin implementation of a major Medi-Cal reform proposal referred to as Medi-Cal Healthier California for All (MHCA). The MHCA initiative broadly is intended to provide more comprehensive care to patients with complex needs, including individuals on Medi-Cal who are experiencing homelessness.
 
Governor’s Proposal Raises Key Questions and Falls Short of Articulating a Clear Strategy. The scale of the homelessness crisis in California is significant and even substantial investments in resources could quickly dissipate without demonstrating much progress if investments are made without a clear plan. We recognize that there is no obvious right answer as to how the state should address the homelessness crisis. That said, we find the Governor’s budget proposal falls short of articulating a clear strategy for curbing homelessness in California. In the absence of a clear strategy, the Governor’s proposed approach is less likely to make a meaningful ongoing impact on the state’s homelessness crisis. Additionally, we find that the details provided as part of the Governor’s 2020-21 homelessness proposal raise many important questions for the Legislature to consider.
 
Prior to Committing to a New Approach, Clear Strategy Needed. We urge the Legislature to develop a strategy for addressing this complex challenge. By creating a strategy, the Legislature could increase the likelihood that the state’s resources are used in a way that results in meaningful reductions in homelessness. A strategy that aligns with defined goals and delineates responsibilities between the state and local governments could set the state on a productive path towards reducing homelessness and preventing more individuals from becoming homeless.
 
Alternative 2020-21 Action. We recognize that homelessness is a dire problem with significant statewide consequences. A desire to quickly bring relief to those individuals that are experiencing and at-risk of homelessness stands in contrast to our recommendation to develop a clear, strategic plan. If a plan cannot be developed over the next few months, we encourage the Legislature to take one-time action this year—in the amount proposed by the Governor or some other amount—utilizing existing state mechanisms to support local efforts to address homelessness.
 
This report is available using the following link: https://lao.ca.gov/Publications/Report/4152?utm_source=laowww&utm_medium=email&utm_campaign=4152