In early April, Governor Newsom, Speaker Rivas (D-Salinas), and Senate pro tempore McGuire (D-Santa Rosa) announced an agreement on $17B of early actions to reduce the state’s budget shortfall to somewhere between $9 and $24B. These actions encompass around 2/3rds of the Governor’s proposed budget-balancing actions from January and leave many of the most difficult proposals, including cuts to housing and homelessness programs, for June budget action.
Significant housing and homelessness items of note include:
- A reduction in the Foreclosure Intervention Housing Preservation Program (FIHPP) by $85M
- A delay for the Behavioral Health Bridge Housing program by $235M to 2025-26
- A delay for the Behavioral Health Continuum Infrastructure Program of $140M to 2025-26
- A shift in costs from the General Fund to the state Greenhouse Gas Reduction Fund (GGRF) of $1.8B, utilizing GGRF funds to backfill other programs typically funded through the General Fund
- Specific programs will be determined later, but the Affordable Housing Sustainable Communities Program is funded through state GHG funds
AB 106, the “Budget Bill Jr.” that includes the early action plan, was passed and chaptered on April 15th. The next key milestone is the release of the Governor’s May Revise, which will include updated revenue forecasts. The Legislature has until June 15th to pass a budget and move it to the Governor’s desk for action, and the Governor has until July 1, 2024, to sign the budget bill.
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