“For a more detailed explanation of this new law, please see the Western Center on Law and Poverty’s summary or review the law itself, published by the California Judicial Council.”
The administration and state and local governments have a hard job right now, and we are grateful for their work to make sure people in California are taken care of. It is our intention to continue working alongside agencies and staff to ensure that California’s approach to the crisis is as humane, safe, and sensible as possible.
Governor Newsom’s new Executive Order, issued last night, directs $150 million to cities, counties and continuums of care to provide shelter for unhoused people in California during the COVID-19 pandemic. The funds are to be used to build emergency shelter and lease hotels and motels.
We believe leasing existing, unoccupied hotels and motels is the single fastest way to move homeless individuals into housing. While we appreciate the Governor reducing regulatory barriers to providing emergency housing, we believe that in most cases, expanding existing emergency shelters will not be an immediate solution.
We urge counties, cities, and continuums of care to be mindful not to displace existing individuals and families already living in hotels or motels. The CalWORKs Homeless Assistance Program (HAP) has long utilized motel vouchers as a way to keep families experiencing poverty housed when they are evicted or fleeing an abuser. Many other low-income families reside in motels as well. These existing pipelines of assistance must be kept available as we expand housing for individuals experiencing homelessness. It is imperative that local governments communicate closely with county human service programs, advocates, and local residents to avoid displacing vulnerable families when seeking appropriate sites.
We are also calling on the Governor to allow CalWORKs HAP motel vouchers to be used beyond 16 days in a month, and to allow vouchers to be provided in consecutive months to keep families housed during the COVID crisis.
“It’s good that more people are paying attention. But the sudden increase in interest means there isn’t enough nuanced conversation about the decades that got us here, or the proven solutions that are most likely to work.”
For a PDF of this analysis, click here.
Last week, Governor Newsom unveiled his $222 billion 2020-21 budget proposal. Western Center’s summary of the proposal can be found here.
The state is in its 11th year of increasing tax revenue, and estimates a $5.6 billion budget surplus over existing obligations. The budget continues the practice of prioritizing saving state revenue for future years by increasing the Rainy Day fund to $18 billion and paying down state debts to reduce state payments in future years.
Governor Newsom is focused on addressing many long standing issues, particularly the homelessness and housing crisis. The budget proposes to allocate $1.4 billion to a variety of solutions, including $750 million in one-time funding to shore up board and care facilities, provide rental assistance to those at risk of or experiencing homelessness, and to fund adaptive re-use of existing structures to create additional housing that people experiencing homelessness can afford. The budget also includes substantial new funding for health care, including a proposal for the state to manufacture prescription medications and to expand health care to undocumented seniors.
The budget proposal does not include the third step of CalWORKs funding that would bring grants to 55 percent of the federal poverty level. Instead, the budget proposes a 3.1 percent increase for CalWORKs grants in October 2020. The budget also provides no increase in state funding for Supplemental Security Income (SSI/SSP) grants, keeping in place recession era cuts that have still not been restored.
The Governor’s budget proposes $750 million in one-time funds to be deposited in the new California Access to Housing and Services Fund, which the Governor recently created by executive order. The fund would be administered by the Department of Social Services, which would allocate dollars to “regional administrators” to be used to provide short- and long-term rental subsidies to people at risk of or experiencing homelessness, create additional housing units affordable to people with extremely low-incomes, and stabilize licensed board and care facilities around the state. How funds would be allocated and administered remains open to negotiation.
The budget proposes a one-time $500 million increase in the state Low-Income Housing Tax Credit program, which funds the production and rehabilitation of housing affordable primarily to households with incomes between 30% and 80% of area median income (AMI).
CalWORKs: CalWORKs has gone through a period of substantial investment. In 2019, the budget included funding for a 13 percent grant increase, expanded the earned income disregard to $500 a month, and stabilized CalWORKs child care for families. This budget is not as ambitious as prior years, though it does provide a 3.1 percent increase in grants beginning October 2020. This will increase grants for a family of three by about $25 a month. However, it was anticipated that CalWORKs grants would be raised to 55 percent of the federal poverty level to ensure no child lives in deep poverty. This budget proposal will not achieve that goal.
The budget does include funding to increase the CalWORKs child support pass through. Under current law, the first $50 of child support paid by the non-custodial parent goes to the CalWORKs family, but any amount over that is used to pay for the cost of welfare benefits to the state and federal government. Beginning January 2022, CalWORKs families with one child will keep the first $100 of child support, and families with two or more children will keep the first $200 of child support.
We are grateful the Governor heard parents and families in their call for a child support program that works for children. The increases to child support pass through and relief from government-owed, uncollectable debt proposed by the Governor look like a good start. We are eager to see the associated proposed trailer bill law changes so we have more details, and look forward to working with the Governor and legislature to achieve the goals of conforming with federal law and regulation, and ensuring the program works to benefit the children it purports to help.
Fines and Fees: The budget proposes to expand the traffic court ability to pay pilot program statewide. Currently, an eight county pilot program (operational in four counties) allows persons to adjudicate traffic tickets through an online portal and reduce fines by at least 50 percent for low income drivers. The budget would expand this pilot statewide over several years to all counties. The pilot has yet to be evaluated.
Additionally, the budget makes a $92 million investment in reducing criminal justice fees and their harmful, recidivistic impact on people with low-incomes and people of color, their families, and their communities. We are grateful to Budget Chair Mitchell for her leadership on this issue and look forward to working on details with her, the Governor, and other budget leaders.
SSI/SSP: The SSI/SSP caseload continues to decline, and as a result, state funding for the state supplemental program (SSP) is declining. In the 2020-21 budget the administration projects a 1.6 percent decline in SSP spending to $2.66 billion, down from $2.73 billion in the 2019-20 budget. This continues a trend of declining state spending for disabled and elderly adults. As recently as the 2016-17 budget, the state spent $2.87 billion. Rather than invest savings from caseload declines into grants, the savings are going into the General Fund for other purposes. SSI/SSP grants are critical for paying the cost of housing; this failure to invest in SSI grants will put more recipients at risk of homelessness.
Expands full-scope Medi-Cal to all income-eligible undocumented adults age 65+ (Health4AllSeniors): Building on the 2019 Budget, which made California the first in the nation to expand full-scope Medi-Cal to adults up to age 26 regardless of immigration status, the Governor’s recent proposal includes $80.5 million ($64.2 million General Fund) to expand full-scope Medi-Cal to all income-eligible undocumented adults age 65 and older. This would benefit about 27,000 older adults, to be implemented no sooner than January 1, 2021. Full implementation costs are projected to be approximately $350 million ($320 million General Fund) in 2022-23 and ongoing.
Delays 2019 Budget Act suspensions from December 31, 2021 to July 1, 2023: The 2019 Budget made important Medi-Cal investments that were to be suspended on December 31, 2021 and the proposal delays these suspensions by 18 months. This includes restoration of Medi-Cal benefits (optical, audiology, podiatry, speech therapy, and incontinence creams and washes), extension of Medi-Cal eligibility from 60 days to one year for post-partum women diagnosed with a mental health disorder, expansion of Medi-Cal screening for the overuse of opioids and illicit drugs, and Prop 56 supplemental payments to providers.
Funding for CalAIM (recently renamed to Medi-Cal Healthier California for All Initiative): The Governor’s proposal includes $695 million ($348 million General Fund) for CalAIM effective January 1, 2021 and ongoing. Despite the name change, the administration continues to advance policy changes released in October’s proposal. The proposal still terminates the Health Homes Program (HHP) despite loss of enhanced federal match rate and the Whole Person Care (WPC) program, and includes $225 million to implement the new statewide enhanced care management benefit through plans. Plans will have the option of providing housing transition services, currently provided under HHP and WPC, and other services In Lieu of Service. The Dental Transformation Initiative will end December 2020, but $112.5 million is proposed to continue and expand program elements including provider incentives for preventive services (expanded to adults); provider incentive payments for continuity of care (expanded to adults); caries risk assessment, and adding silver diamine fluoride as a covered service for children.
Termination of Dental Managed Care in Medi-Cal: The administration proposes transitioning Medi-Cal dental services from a managed care delivery system, currently mandatory in Sacramento and optional in Los Angeles, to a fee-for-service (FFS) system in January 2021. A net zero fiscal impact is estimated due to small administrative savings offset by higher dental utilization in FFS system. However, any transition will have to ensure existing consumer protections for enrollees in dental managed care, including network adequacy requirements, continuity of care protections, and a strong grievance and appeal process.
Medi-Cal Medication Assisted Treatment Benefit Changes: The administration proposes adding all FDA approved drugs (specifically buprenorphine and buprenorphine-naloxone combination) to treat opioid addiction as a Medi-Cal benefit. Currently, only methadone and naltrexone is covered for Medi-Cal enrollees needing Medication Assisted Treatment; adding two new drugs is estimated to cost $876,000.
Prescription Drug Cost Containment: The Governor proposes to continue last year’s Executive Order to carve-out the Medi-Cal managed care benefit from managed care to fee-for-service effective January 1, 2021 to include savings that are partially offset by creation of a new supplemental payment pool for non-hospital clinics for 340B pharmacy services. The Governor also proposes to establish the state’s own generic drug label to manufacture certain generic drugs, establish a single market for drug pricing within the state to combine purchasing power, and expand authority to negotiate with manufacturers internationally for Medi-Cal supplemental rebates.
Potential Public Option: With more details to come, the Health and Human Services Agency will develop options to strengthen enrollment, affordability, and choice through Covered California, including leveraging the network of existing public Medi-Cal managed care plans.
Office of Health Care Affordability: The administration proposes the establishment of the Office of Health Care Affordability in spring 2020 to increase price and quality transparency, and to reduce costs to generate savings to directly-impacted consumers.
Hearing Aids for Children: The budget proposes to create a state program to assist families with the cost of hearing aids and related services for children without health insurance coverage for households with incomes up to 600% FPL.
Behavioral Health: The administration proposes to establish the Behavioral Health Task Force Agency and strengthen enforcement of behavioral health parity laws. The Department of Managed Health Care’s enforcement will focus on timely access to treatment, network adequacy, benefit design and plan policies. The administration also supports updating the Mental Health Services Act to focus on people with mental illness experiencing homelessness, those involved in the criminal justice system, and for early youth intervention.
Governor Gavin Newsom issued an executive order Wednesday calling for state land, vacant state hospitals and travel trailers to be used to help with California’s homelessness crisis.
Marisa Lagos, correspondent for KQED’s California Politics and Government Desk and co-host of the weekly show and podcast, Political Breakdown; she tweets @mlagos
Rev. Andy Bales, CEO of Union Rescue Mission; he tweets @abales
Anya Lawler, Western Center on Law and Poverty Housing Policy Advocate, she’s a member of the state’s homelessness task force, which advises solutions to address the crisis; she tweets @anyalawler
Note: Back in July we reported that the County of Humboldt was planning to buy a block of property on Fourth Street in Eureka, near the county jail, and tear down the block’s homes and taco shop in order to build a parking lot.
Those plans have been delayed. At this week’s Board of Supervisors meeting, there was an item on the consent calendar noting that acquisition of the Fourth Street properties was being deferred due to “issues relating to the tenants and occupants residing at these real properties.”
California’s governor on Wednesday blamed the Trump administration for withholding data that is blocking the release of $650 million in state aid to combat homelessness.
California’s cities and counties have been waiting since June for the money approved by the state Legislature. But state law says the money can only be distributed based on federally approved homelessness counts for 2019.
Most California communities submitted their homeless counts months ago. But the U.S. Department of Housing and Urban Development has not yet approved them.
…“I think it worries all of us that t hey are somehow trying to politicize the numbers or use them for some political purpose,” said Anya Lawler, a policy advocate for the Western Center on Law and Poverty.
After an 11-hour meeting and a tense 6-5 vote, the San Jose City Council voted Tuesday to water down provisions to its rent control laws in an effort to please developers who say that such measures place a burden on housing projects.
Previously, demolishing a rent-controlled building meant that any new building constructed in San Jose had to include at least as many rent-controlled units as the building prior or that at least half of a new structure’s units be rent-controlled, whichever number was greater.
But after this week’s vote, building owners can apply for a waiver if their new building has just 15 percent affordable homes and the owners offer old tenants the chance to return paying the original rent price.
An initiative aimed at addressing homelessness in California has been submitted to the California Attorney General for the 2020 ballot, which purports “to get help for those who need it, and thereby also greatly reduce nuisance behavior on our streets.”
The initiative is an embarrassing attempt to make California more visually appealing to those who have no interest or knowledge in addressing the root causes of what is happening to people in our state and country. This proposal would take California back into the dark ages of mass institutionalization of people with perceived or real mental illness. This is not new. California has tried this before, and it didn’t work.
Western Center firmly believes this measure is illegal under a number of civil rights laws. Separate from the legal issues, there are a multitude of problems with the measure. This is not a moderate or compromise proposal, but rather, a return to the now debunked “broken windows” theory Rudy Giuliani used in New York City in the 1990s. Such zero tolerance approaches only exacerbate racial and class disparities through an overly aggressive criminal justice system.
In his letter introducing the initiative, its author, former State Assemblymember Mike Gatto, states, “One side primarily believes the government should be more aggressive in making our streets safer for all people. The other side thinks government should be more lenient, believing that economic hardships are the singular cause.”
The idea that there are only two sides to this complicated issue is overly simplistic. Homelessness is the result of rapidly increasing income inequality, but it is also the result of years of government mismanagement of resources and funding, as well as institutionalized racism. Voters in Los Angeles just approved significant funding for homeless services, yet countless individuals experiencing homelessness in Los Angeles continue to go without access to services.
Many of the people who currently live on the streets are victims of our foster-care system, or are veterans who served in one of this country’s numerous wars. In those situations, intervention of vital mental health services would have changed the trajectory away from the streets, but because of local and state government’s lack of implementation oversight or commitment to making sure people get the help they need early on, many of those people are left with only the street to turn to.
The State of California has not prioritized providing services or housing for the ~130,000 people experiencing homelessness here. The idea that the state would now have the resources and wherewithal to create and maintain the vast network of institutions this measure would require is absurd.
Gatto’s proposal would require courts to sentence people with substance use disorders or mental illness to maximum criminal sentences. It then allows courts to force people to serve those sentences in locked mental health or drug rehabilitation facilities. Once they have served those sentences, the court has the discretion to keep people locked in those same facilities. Upon completion of the sentence, courts then get to decide whether the individual’s criminal record can be expunged. This will, unquestionably, steer extremely low-income people into the criminal justice system.
The proposition also requires courts to help those without economic means to secure and access housing and other government services, yet it does not provide any funding mechanism to actually increase the services available.
Institutionalization does not work; all one has to do is look at the massive failure that is America’s prison industrial complex. This measure will NOT end homelessness — it’s not even a workable band-aid.
There are proven solutions that this initiative ignores. The state can ensure that the millions of dollars being allocated for homeless services actually get to the people who need them, where they need them. There have not been nearly enough good-faith efforts to make sure people receive the services needed to get back on their feet.
Local and state governments should make sure people have easy access to mental health services when they are wanted and needed. This measure solely blames the victims, but does nothing to hold the systems accountable that put them there in the first place. Mass homelessness is a societal and government failure, and this measure lets government off the hook.
The state must also ensure that safe, stable, and affordable housing is available to everyone. Service delivery is infinitely more effective when people are housed.
California purports to be a leader for the country and the world, but this measure is more in-line with the regressive policies coming from Washington DC than a state that claims to be on the path toward Governor Newsom’s “California For All.”
If #CaliforniaForAll is to be more than just a pithy hashtag, we absolutely cannot start involuntarily institutionalizing the victims of this country’s out-of-control economic system, failed health care system, centuries of legalized racism and discrimination, and never-ending wars.
If this initiative moves forward, Gatto and his supporters can expect a fight from Western Center and our allies.