Can a $6.4 billion mental health ballot measure solve California homelessness?

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The measure is part of a broader mental health overhaul to compel more homeless people into treatment.

Unhoused people walk in the homeless encampment along Coyote Creek near Old Oakland Road on May 11, 2023, in San Jose, Calif. For decades, thousands of Californians struggling with mental health and addiction have languished on the street. Now, voters will decide whether a March 5 ballot measure is the solution to get them the care they desperately need.

“We’ve created more flexibility, more tools, more accountability, more resources,” said Gov. Gavin Newsom. “Now, we need more beds.”in bonds to add an estimated 6,800 beds for people needing mental health care or addiction treatment in hopes of making up for a bed shortage that also extends nationwide.

The bond money would be distributed through project grants, for which counties would apply. The bonds would cost the state an estimated $310 million annually over 30 years, less than half a percent of its expected general fund revenue, according to a Legislative Analyst’s Office— a state tax on millionaires — on rental assistance and supportive housing construction, including for homeless people. The mental health tax raises roughly $1 billion each year.

To compel more homeless people into treatment, Proposition 1 backers point to two recent reforms being phased in across the state. At the same time, local officials worry the changes to the Mental Health Services Act funding could force cuts to some existing county mental health programs and staff.

 

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