California’s homelessness crisis ‘a disgrace,’ Gov.

Gavin
Newsom says in State of the State speech
latimes.com/homeless-housing/story/2020-02-19/governor-gavin-newsom-state-of-state-california-speech-
homelessness
February 19,
2020

Gov. Gavin Newsom vowed to marshal the full force of his administration to alleviate
California’s worsening homelessness crisis, a humanitarian imperative for the state and
political necessity for a governor whose ambitious progressive agenda could be eclipsed if
he fails to take effective action.

Delivering his annual State of the State speech to a joint session of the Legislature on
Wednesday, Newsom acknowledged that Californians have “lost patience” with state political
leaders who largely ignored a human tragedy that has existed in plain sight for years, if not
decades.

“Let’s call it what it is. It’s a disgrace that the richest state, in the richest nation — succeeding
across so many sectors — is falling so far behind to properly house, heal and humanely
treat so many of its own people. Every day, the California dream is dimmed by the
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wrenching reality of families, children and seniors living unfed on a concrete bed,” Newsom
said. “The hard truth is we ignored the problem.”

Careful to say that homelessness cannot be solved overnight, Newsom nevertheless

promised to work with state lawmakers to take quick action.

The Democratic governor called for all new shelters and supportive housing to be exempted
from a key environmental law that has been used to restrict development, similar to a pilot
project currently underway in Los Angeles County.

Newsom also signaled his support for the creation of a significant, permanent stream of
revenue focused on curtailing homelessness, an idea that some in Sacramento say could
require a tax increase.

“We’re going to need significant, sustainable revenue,” Newsom told lawmakers. “I pledge to
work closely with you to identify where this ongoing revenue will come from. But we’ve got
to find it to provide the safer, cleaner streets that communities we represent deserve.”

As the applause washed over Newsom inside the Democrat-controlled state Capitol,
President Trump, one of Newsom’s harshest critics, was a few hundred miles south on a
campaign swing through California. Trump has long used the state’s homelessness crisis as
a cudgel against Newsom and California’s Democratic leaders, and the president has
threatened federal intervention if the governor fails to take action.

In his speech, Newsom dismissed Trump as being more interested in scoring political points
than providing meaningful assistance to those living on the streets, namely through federal
housing assistance from the U.S. Department of Housing and Urban Development.

“California has and will continue to extend its hand of partnership to Washington, seeking to
jointly address this issue,” Newsom said. “But empty words and symbolic gestures won’t
mask a 15% across-the-board cut to HUD’s budget.”

In his address, Newsom tried to deflect criticism that California’s Democratic leadership was
solely responsible for 150,000 residents living in the streets, in cars and any other place they
can find shelter.

He provided a lengthy history on the causes of California’s homelessness crisis, reaching

back to national “de-institutionalization” of the mentally ill that began the 1940s, and cuts to
essential safety net programs throughout the 1980s and 1990s. He noted today’s homeless
population is down by 35,000 people from the number of those living on the streets in 2005,
when Republican Arnold Schwarzenegger was governor.

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“In a politically polarized world, liberals and conservatives blame one another for these
failures. Historically speaking, though, both are right. It’s time to stop pointing fingers and
join hands,” Newsom said.

The governor‘s address retained flourishes of the sunny optimism from his inaugural
speech a year ago, when he called California’s robust economy and healthy job growth the
envy of the nation. He said California continues to serve as a haven for opportunity and
innovation.

Still, the 40 minute-long speech was marked by a sober tone and an acknowledgment that
despite California being home to the fifth-largest economy in the world, the state faces
daunting challenges, a reality that greeted Newsom almost immediately when he took office.

Pacific Gas & Electric, the state’s largest utility, descended into bankruptcy during Newsom’s
first month in office and, months later, blackouts put millions of residents in the dark during
the height of fire season. Disasters also struck the state: a 7.1-magnitude earthquake in July
that rocked the high desert north of Los Angeles, and a wildfire in October that scorched the
Northern California wine country.

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Despite a string of notable successes, Newsom’s first year in office was tarnished in part by
what critics described as an undisciplined and impatient governing style. He was accused of
trying to accomplish too much too soon, impeding his ability to address the state’s biggest
issues: the lack of affordable housing, a demand for better healthcare and a homeless crisis
that has left few cities and counties untouched.

In Wednesday’s State of the State address, Newsom tried to send a message that his second
year in office would have a much clearer focus, with combating homelessness being his
administration top priority.

California is home to more than 150,000 homeless people, nearly a quarter of the nation’s
total. According to opinion polls, homelessness is the top issue that residents want the
governor and state Legislature to address.

Newsom has vowed to take quick action, and, along with $1 billion set aside in recent years
to alleviate the crisis, he added an additional $750 million in the proposed budget for this
fiscal year to increase housing and shelter options throughout the state.

But the Legislative Analyst’s Office said in a report released earlier this month that
Newsom’s plan “falls short of articulating a clear strategy” and as a result could potentially
have little impact on addressing the crisis. Unsure if Newsom can deliver on his promises,

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state lawmakers are also crafting proposals, including a plan that would set aside $2 billion
annually to combat homelessness as opposed to governor’s $750 million in one-time
funding.

The stream of money aimed at helping Californians get off the streets served as a reminder
of the degree to which the state’s finances have recovered from the Great Recession, an era
of seemingly insurmountable deficits leaving a tattered safety net for Californians flattened
by the economic downturn.

Since taking office, Newsom has taken full advantage of the state’s good fortune.

Newsom’s budget proposal released in January also increased health and human services
spending by $5.5 billion. That included higher wages for in-home care workers and an 18-
month extension of last year’s elimination of taxes collected on the sale of diapers and
feminine hygiene products. The spending plan also expanded preschool options for low-
income families and access to paid family leave to more California workers.

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Newsom has made lowering prescription drug costs a key part of his healthcare agenda. On
his first day in office, he said he would launch a statewide bulk purchasing program to lower
the cost of prescription drugs, a plan that is still in its early phases of development. This
year, Newsom proposed a plan for California to begin selling its own brand of generic
prescription drugs to reduce rising healthcare costs, though details on how the state would
execute the program have not yet been released.

The governor, who voiced strong support for a universal healthcare system while running
for office, also made what he called a “down-payment” on such a plan by expanding Medi-
Cal to immigrants in the state without legal status who are younger than 26. With that
expansion signed into law, Newsom embraced a plan this year to offer Medi-Cal to seniors
without legal status.

Times staff writer Melody Gutierrez contributed to this report.

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