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More than 220K people kicked off Medi-Cal in its first checkup since COVID

About 225,0000 Californians lost their free or low-cost health coverage as of July 1, in the first round a Medi-Cal renewal process that had been suspended since early in the COVID-19 pandemic.

That’s approximately 21% of the over 1 million people who were due to reapply for coverage in June, according to preliminary numbers released by state health officials on Thursday.

Medi-Cal, the state’s health insurance program for low-income people, typically reviews enrollees’ eligibility every year. The state paused that process during the pandemic at the orders of the federal government, but resumed in the spring.

Less than 3% of the people who lost coverage no longer qualify for Medi-Cal because their household income now exceeds the program’s limits.

That means the majority of people were kicked off because they didn’t return a renewal packet and county Medi-Cal offices couldn’t verify an enrollee’s income. Cooper said the counties and state are trying to reach enrollees in multiple ways — email, mail and texts.

David Kane, a senior attorney with the Western Center on Law and Poverty, said it is concerning that tens of thousands of people could be  without insurance even though they are eligible. They may have failed to respond for a number of reasons, such as not receiving the packet or not getting the packet in their language.

“I don’t think today’s preliminary numbers mean we can all sit back and think things are OK,” Kane said. “These disenrollments are not inevitable. The state, counties, advocates, and community groups together have the power to help more people keep their Medi-Cal.”

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Tens of thousands of L.A. County residents could soon lose Medi-Cal coverage. Here’s why

Tens of thousands of people in Los Angeles County could lose their Medi-Cal coverage in July, according to preliminary data provided to a health plan that serves Angelenos on the public program.

L.A. Care, a publicly operated health plan in L.A. County, said that early data provided by the state indicate that roughly 40,000 of its members enrolled in Medi-Cal could lose their coverage this month, although final numbers are still pending.

Those figures do not include Medi-Cal recipients who are not covered by L.A. Care, which serves roughly 2.7 million of the nearly 4.7 million people in L.A. County who were enrolled in Medi-Cal as of this spring, according to state figures. The numbers are expected to keep shifting as more people return paperwork that was due Friday to renew their coverage in California’s Medicaid program, the beginning of a process that will play out over the next year.

But the tentative figures are an early sign of the serious shift underway as the federal government has rolled back rules that helped people stay on Medicaid, one that has troubled health providers and advocates who fear many patients will unnecessarily lose medical coverage for which they qualify.

“Losing Medi-Cal coverage is not a mere inconvenience or annoyance,” said David Kane, an attorney at the Western Center on Law & Poverty. “For far too many it can be life-threatening. It can mean that transportation to dialysis does not show up. Surgery is canceled. You cannot pick up your prescription drugs.”

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Analysis Of Governor Newsom’s 2023-2024 May Revision Budget

The Newsom Administration released its 2023-24 May Revision budget, projecting a $31.5 billion deficit. After years of a budget surplus, California is forecasting a downturn in funding due to a combination of capital gains losses and delayed tax filings due to natural disasters, but California remains strong. The May Revision reflects a $37.2 billion in total budgetary reserves and additional funds from the Managed Care Organization tax.  

Governor Newsom maintains many of the Administration’s and legislature’s previous commitments and proposes no new trigger cuts. He also proposes no new corporate or personal taxes, despite calls from the Senate and advocates to increase taxes on wealthy corporations and the state’s highest earners.  

We appreciate that the May Revision maintains past budget agreements including expansion of Medi-Cal to all regardless of immigration status, reforming the Medi-Cal share-of-cost, and on-time implementation of food assistance for Californians 55 years of age or older, regardless of immigration status 

As the fourth largest economy in the world, California has made great strides in addressing poverty and systemic inequities, but there is more work to be done. We look forward to working with the legislature and Administration to protect low-income Californians as the State enters more uncertain fiscal circumstances.  

Below are our initial reactions to the proposed budget by issue area, with a focus on changes from the January budget proposal.   

HEALTH CARE 

Health4All: The May Revision maintains full funding to expand full-scope Medi-Cal eligibility to all income eligible adults ages 26-49 regardless of immigration status on January 1, 2024. The May Revision includes increases for previous expansions for adults 50 and older and ages 26-49 due updated managed care rates, higher share of state-only costs, higher caseloads, and higher acuity members. 

Managed Care Organization (MCO) Tax: The May Revision proposes a bigger MCO tax with an earlier start date (April 2023 through end of 2026). This results in $19.4 billion in total funding, including $3.4 billion for 2023-24. $8.3 billion is proposed to offset General Fund and $11.1 billion is proposed to support Medi-Cal investments that improve access, quality, and equity over an 8- to10-year period. These investments include rate increases to at least 87.5% of Medicare for primary care, birthing care, and non-specialty mental health providers and the remainder will be put into a special fund reserve for future consideration.  

Covered California Affordability Sweep: The May Revision maintains proposal to sweep Covered California reserve fund to General Fund totaling $333.4 million. 

Distressed Hospital Loan Program: The May Revision includes up to $150 million one-time General Fund to provide interest-free cashflow loans to not-for-profit and public hospitals in significant financial distress or to governmental entities representing a closed hospital, for purposes of preventing the closure of, or facilitating the reopening of, those hospitals.  

Home and Community-Based Services Spending Plan Extension: The May Revision includes a six-month extension until September 30, 2024 for specified programs such as the IHSS Career Pathways Program and the Senior Nutrition Infrastructure Program to fully spend allocated funding based on critical programmatic needs.  

Doula Services Implementation Evaluation: To align with later implementation date, TBL is proposed to extend the timeline of the Doula Stakeholder Workgroup (from April 1, 2022 until December 31, 2023) and to extend the evaluation of the doula benefit implementation in the Medi-Cal program (from April 1, 2023 until June 30, 2025).  

Medical Interpreter Pilot Program: Through TBL, the May Revision proposes to extend the expenditure authority of the Medical Interpreter Pilot Project for 12 months, from June 30, 2024 to June 30, 2025.  

988 Update: The May Revision includes a one-time augmentation of $15 million for a total of $19 million, from the 988 State Suicide and Behavioral Health Crisis Services Fund for California’s 988 centers. This increase will support workforce expansion to handle increased answered call volume, extensions of service hours, and the availability of chat and text options for callers utilizing the 988 services.  

BH-CONNECT Demonstration (formerly referred to as CalBH-CBC Demonstration): The May Revision includes an update to the BH-CONNECT Demonstration to include a new Workforce Initiative and includes $480 million in funding for each year of the five-year demonstration period ($2.4 billion total funding and no General Fund).  

CalRX and Reproductive Health: The May Revision includes TBL and $2 million one-time General Fund reappropriation from the Capital Infrastructure Security Program and allows the use of these funds for reproductive health care if necessary. 

Community Assistance, Recovery, and Empowerment (CARE) Act: The May Revision includes additional funding to support the implementation of the CARE Act. Compared to the Governor’s Budget, the annual increase is between $43 million and $54.5 million to account for refined county behavioral health department cost assumptions, additional one-time $15 million General Fund for Los Angeles County start-up funding. The May Revision also includes an additional $16.8 million in 2023-24, $29.8 million in 2024-25, and $32.9 million ongoing to double the number of hours per participant for legal services from 20 hours to 40 hours. 

HOMELESSNESS

The May Revision preserves the full $3.7 billion in funding for homelessness programs, as committed in previous budgets, including $1 billion for the Homeless Housing, Assistance and Prevention grant program. 

May Revision Adjustments:  

Behavioral Health Bridge Housing Program: $500 million one-time Mental Health Services Fund in 2023-24 in lieu of General Fund. This investment eliminates the January Budget proposed delay of $250 million General Fund to 2024-25 and restores the $1.5 billion commitment funded in the 2022 Budget Act for the program. 

HOUSING

While the May Revision reflects a steady commitment to Homelessness investments, the May Revision also culminated in a weakening of housing investments totaling $17.5 million in General Fund reductions and $345 million in deferrals related to housing programs. Funding for housing programs remains at approximately 88% of the allocations made in 2022-23 and proposed for 2023-24 ($2.85 billion). This outlook could change if there are sufficient General Fund dollars in January 2024. If that occurs, the Governor has committed to restoring $350 million of these reductions. Overall, the proposal includes $500 million continued annual investment in the state Low-Income Housing Tax Credit program, $225 million for the Multifamily Housing Program, and $100 million for the Portfolio Reinvestment Program. These programs have a proven track-record of addressing housing affordability and homelessness across California. 

May Revision Adjustments: 

Foreclosure Intervention Housing Prevention Program: Provides funds to various non-profit organizations to acquire foreclosed property and operate as affordable housing. Deferral of $345 million of the $500 million one-time General Fund over four fiscal years—for a revised allocation of: $50 million in 2023-24, $100 million in 2024-25, $100 million in 2025-26, and $95 million in 2026-27 

Downtown Rebound Program: Funds adaptive reuse of commercial and industrial structures to residential housing. Reverts $17.5 million in unexpended funding that remained in this program after the Notice of Funding Availability. 

In contrast, the Senate’s Budget Plan, which was released two weeks ago, both prevents funding cuts and delays, and builds on our progress by including ongoing investment in homelessness and resources for key housing production programs. Notably, that Plan provides $1 billion in ongoing funds to support the Homeless Housing Assistance, and Prevention Program, $1 billion towards the state Low-Income Housing Tax Credit Program, and an additional $300 million flexible allocation towards affordable housing programs.  

Western Center is a proud member of a coalition of California’s leading affordable housing, homelessness, and housing justice advocacy organizations championing a comprehensive coalition investment strategy for affordable housing production, preservation, and tenant stability. While the May Revision falls short of our requests to meet the housing and homelessness crisis at scale, we look forward to continuing our budget advocacy and encourage the Governor and Legislative leadership to finalize a budget that includes ongoing, significant resources like those included in the Senate budget plan and our coordinated housing budget letter. 

PUBLIC BENEFITS AND ACCESS TO JUSTICE  

CalWORKs Grant Increase: The May Revision reflects a 3.6-percent increase ($111.2 million in 2023-24) to CalWORKs Maximum Aid Payment levels, effective October 1, 2023. These increased grant costs are funded through the Child Poverty and Family Supplemental Support Subaccount.  

Supplemental Security Income/State Supplementary Payment (SSI/SSP): The May Revision continues to include an 8.6% increase in funding for the SSI/SSP and Cash Assistance for Immigrants (CAPI) program providing a $3.6 billion from the general fund. This allocation provides recipients with an increase in grant levels to $1,134 per month and $1,928 per month for couples. 

California Food Assistance Program (CFAP) Expansion Update: The May Revision moves up the issuance of food benefits for older undocumented immigrants to start October 2025, instead of the January Proposal that delayed it until 2027, which we appreciate but we still need Food4All regardless of age and immigration status. 

Summer Electronic Benefit Transfer (EBT) Program: The May Revision includes $47 million ($23.5 million General Fund) for outreach and automation costs to phase in a new federal Summer EBT program for children who qualify for free or reduced-price school meals beginning summer 2024.  

Safety Net Reserve: The May Revision withdraws $450 million (half of $900 million) from the Safety Net Reserve. The reserve is intended to maintain existing Medi-Cal and CalWORKs program benefits and services when program cost may increase due to economic conditions, which may occur if recession occurs, so we argue it is prudent to not draw from Safety Net Reserve until those conditions are met. 

Services for Survivors and Victims of Hate Crimes Augmentation: The May Revision includes an additional $10 million General Fund to support services for victims and survivors of hate crimes and their families and facilitate hate crime prevention measures in consultation with the Commission on Asian and Pacific Islander American Affairs. 

For questions, contact: 

  • Health: Linda Nguy, Senior Policy Advocate – lnguy[at]wclp.org; Sandra Poole, Policy Advocate – spoole[at]wclp.org 
  • Housing and Homelessness: Cynthia Castillo, Policy Advocate – ccastillo[at]wclp.org; Tina Rosales, Policy Advocate – trosales[at]wclp.org 
  • Public Benefits/ Access to Justice: Christopher Sanchez, Policy Advocate – csanchez[at]wclp.org 

Medi-Cal Enrollees: Here’s How to Verify Your Eligibility

Medi-Cal, the state’s version of the Medicaid health insurance program for low-income residents, has embarked on a 14-month effort to reexamine the eligibility of its nearly 15.8 million members. It is part of the massive “unwinding” being undertaken by all state Medicaid programs after three pandemic years during which their rolls swelled. States had agreed, in exchange for extra funding from the feds, not to boot anyone except in cases such as fraud, death, or a move out of state.

On April 1, Medicaid restarted the annual eligibility checks that had been the norm before the pandemic. It will be the biggest shake-up in U.S. health coverage since the Affordable Care Act, though it cuts the opposite way: Between 8 million and 24 million people will likely be bounced from Medicaid nationally, including an estimated 2 million to 3 million in California.

To minimize the number of enrollees dropped unnecessarily, California’s Department of Health Care Services, which runs Medi-Cal, has launched a $25 million advertising and outreach campaign that will send messages in 19 languages. The department is enlisting the assistance of nearly everyone who has contact with Medi-Cal enrollees: county offices, health plans, medical providers, advocacy groups, and volunteers. And it got $146 million in supplemental funding to help counties cope with the unprecedented number of renewal decisions.

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‘A disaster waiting to happen’: Do staff shortages threaten Medi-Cal plans for renewing recipients

In one report after another earlier this year, counties from Los Angeles to Sacramento warned Medi-Cal officials that they don’t have enough trained staff — or simply don’t know whether they do — to process the millions of Californians whose cases come up for renewal starting in June.

For three years now, ever since federal officials declared a public health emergency in March 2020, U.S. law has prohibited Medi-Cal from kicking millions of Californians off its rolls, even if their incomes pushed past eligibility limits.

The end of so-called continuous coverage will come over a rolling 12-month period, based on the last date when a Medi-Cal enrollee’s eligibility was determined. If enrollees don’t submit the proper documentation by time their eligibility month ends, they will lose their benefits.

State officials estimate that 2 million to 3 million Medi-Cal enrollees could lose coverage because counties can’t manage the volume of cases or they don’t have the right addresses for enrollees or they can’t get critical information in time.

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OP-ED: No-bid Medi-Cal contract for Kaiser Permanente is now law, but key details are missing

“Ultimately, Kaiser Permanente’s contract creates more choice for the Medi-Cal population, said Linda Nguy, a lobbyist with the Western Center on Law & Poverty. But the group, which advocates for people with low incomes, pledged to keep an eye on how the new law is rolled out.

“We will be monitoring it and certainly raising issues as things come up,” Nguy said.”

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Up-to-date COVID-19 information

OVERVIEW

  • July emergency allotments for CalFresh food benefits will be issued August 14 (CalSAWS) and August 21 (CalWIN). June allotments issued July 17th (CalSAWS) and July 24th (CalWIN).
  • COVID-19 vaccines are free. Click here for more information.
  • Rapid COVID tests are also free, and can be shipped to you. Click here to order
  • Diagnostic testing for COVID-19 is covered at no cost for all Californians.
  • California’s eviction moratorium has ended, but you should still apply for rent relief if you need it! If you receive an eviction notice, do not ignore it. Seek local legal help right away.
  • California’s COVID-19 Rent Relief program can be accessed here, or call 833-430-2122.
  • Federal Child Tax Credit payments are not considered income for any family, and will not change receipt of public benefits.

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Food and Financial Security

  • Federal Child Tax Credit payments are not considered income for any family, and will not change receipt of public benefits, including unemployment insurance, Medicaid, SNAP, SSI, SSDI, TANF, WIC, Section 8, or Public Housing. Find out more about California’s Golden State Stimulus payments — if you qualify, and how to get it. También en español.
  • Restaurant delivery service is available for older Californians. Information and sign-up details for interested participants and restaurants are available here.
  • California households receiving SNAP food stamp benefits (CalFresh) can now purchase groceries online through a USDA pilot program.
  • Here is a Distance Learning Student Resource Guide from the California Department of Social Services. The guide includes information on free or low-cost internet, English language learning, adult education and workforce skills, video conferencing resources, and more.

Health Care

  • Keep your Medi-Cal contact information current. Make sure your county has your current address, phone number, and email address – especially if you moved since 2020. Later this year, counties will start contacting people to help them renew their Medi-Cal. If they cannot contact you, your Medi-Cal may end so you want to make sure they have your current information. Find your local county at this link.
  • COVID-19 vaccines are free. Click here for more information. All health plans must cover vaccine administration for free, and Medi-Cal covers vaccine administration for free.
  • Diagnostic testing for COVID-19 is covered at no cost for all Californians. You will need to go to a state testing site, one run by your county, or get a test at a medical provider that can enroll you in a special Medi-Cal program for people without insurance. You can contact your county public health departmentlocal clinic, and medical provider to receive information about your options for free testing.
  • There is a conflict between the California regulation governing health plans for COVID-19 diagnostic testing and federal testing requirements under the Families First Coronavirus Response Act and the CARES Act. This conflict in current law might result in a health plan billing you for testing. If this happens and you want assistance with reviewing the bill, please contact Helen Tran at htran[at]wclp.org or (213) 235-2638.
  • Everyone is encouraged to seek care if they are sick, regardless of income or immigration status. For more information about your right to health care, visit the Health Consumer Alliance’s COVID-19 information site.

Housing

  • Here is Western Center’s Know Your Rights toolkit for California tenants. Inquilinos de California: Conozca Sus Derechos.
  • California’s COVID-19 Rent Relief program helps eligible renters and landlords with unpaid/future rent and utility payments due to COVID-19, regardless of immigration status. Get info, check eligibility, and apply here, or call 833-430-2122.
  • The fact sheet below explains the current protections and financial assistance available to California renters and landlords. Versions are also available in SpanishChineseRussian, and Vietnamese.

(Click image below to access PDF – Español aqui – Tiếng việt ở đây – Русский здесь – 这里的中国人)

  • The Eviction Laws Database captures state, territorial, and local laws covering the eviction process — from pre-filing to post-judgment, as of January 1, 2021. The database was launched by the Legal Services Corporation (LSC) in partnership with the Center for Public Health Law Research, and consists of two datasets:
    • State/Territory Dataset – covers eviction laws, regulations, and court rules that were in effect as of January 1, 2021 in all 50 U.S. states, the District of Columbia, and eight U.S. territories
    • Local Dataset – covers eviction laws, including those at the county and local level, in 30 local jurisdictions in effect as of January 1, 2021

Additional Resources

 

 

 

 

Western Center’s Overview of the Final 2022-2023 California State Budget

The governor and legislature have reached an agreement on the 2022-23 state budget, which includes a historic $100 billion budget surplus. Amid substantial inflation and continued economic fallout from the pandemic, the reason for the massive surplus must be named. California has 189 billionaires and counting, and substantially more extremely high-income households that do not have the same economic burdens as the 1 in 3 Californians living near or below the poverty line. Only fundamental reforms, including for seemingly untouchable issues like discriminatory tax laws, can address the significant disparities in our state. One-time investments targeting people with low incomes during flush budget years are good, but ongoing, dedicated investments are the only way to make the state better.

Despite concerns that surplus revenue would make it difficult to fund General Fund programs, the budget deal includes substantial General Fund investments. The budget also provides tax rebates to millions of Californians, with the majority going to Californians with incomes below $75,000. Even with that spending and many other investments, the state will have a $37 billion reserve.

ACCESS TO JUSTICE/ FINES & FEES

Civil Assessments – The budget substantially reforms court practices that result in tens of millions of dollars in penalties imposed on people who fail to pay traffic and criminal court fines on time or who fail to appear in court. The current $300 civil assessment is being reduced to $100. The budget agreement also discharges civil assessment debt that accrued prior to the change in law. This means tens of thousands of people will no longer have to make payments on that debt or be harassed by bill collectors. The budget also shifts all future civil assessment revenue to the state General Fund rather than to the courts. The past practice led to lawsuits alleging that judges are incentivized to impose the maximum assessment to increase court revenue. The civil assessment language will be subject to completion in August via budget trailer bill.

Tax Intercepts – The budget includes a change to the longstanding practice by the state of intercepting Earned Income Tax Credits (EITC) and Young Child Tax Credits (YCTC) for unpaid debts. Going forward, the state’s Franchise Tax Board will no longer intercept such payments except in cases of child support or restitution.

FINANCIAL SECURITY/ FOOD ACCESS

CalWORKs – The CalWORKs budget provides a 21 percent increase in CalWORKs grants, the largest since the program began in 1998. It eliminates deep poverty for CalWORKs households of families of four or more. Deep poverty includes households with incomes below 50 percent of the Federal Poverty Level by family size. For smaller families that get tax rebates, their income will also be above the deep poverty threshold. The increase will begin on October 1, 2022 for the next two budgets, but must be renewed in 2024 when an additional grant increase will also be under consideration. Below is an estimated chart of the grants starting in October.

Child Support Pass Through – The budget includes a major change in child support policy by allowing families that receive a child support payment to receive all of it and not have it re-directed to the state and federal government to reimburse the cost for public benefits. This will begin in 2025. Currently, a CalWORKs family only gets child support for the first $100 for one child and $200 for two or more children. The governor proposed to pass through all child support to former CalWORKs households in the January budget proposal, and the legislature succeeded in expanding that into a full pass through of all child support, making California the second state in the country to do so. It is estimated that this will result in $430 million in payments going directly to families.

Food for All – The budget includes an additional $35.2 million, increasing the total to $113.4 million to expand the California Food Assistance Program (CFAP) to all Californians 55 years of age or older, regardless of immigration status. California will become the first state to provide food assistance to ensure all residents 55+ can access food. We will continue to work with our partners, the governor, and the legislature in future budgets to ensure all Californians have access to food.

SSI/SSP – The budget includes another increase for the state SSP grant of approximately $37/month. This will begin in January 2023. When combined with the anticipated 8.6 percent increase in the federal grant, the total grant comes to approximately $1,149, an increase of $107/month. While this grant increase is substantial, the grant is still below the federal poverty level for one person at approximately 98 percent.

Tax Rebates – The budget provides $9.5 billion in tax rebates. For families with incomes below $75,000 and who file taxes, a single person will get $350, a two-person household will get $700, and households of three or more will receive $1,050. People using ITIN tax filer status will be eligible but people receiving SSI will not be eligible. Unlike the proposal by the governor to distribute tax rebates to registered car owners via the DMV, the agreement instead utilizes the Franchise Tax Board to distribute payments. Currently, it is projected payments should arrive by October. These funds will benefit families on CalWORKs, CalFresh, and Medi-Cal if they filed tax returns.

Universal School Meals – Building upon the state’s historic investment in providing school meals for all students in California, this year’s budget provides 700 million in additional dollars to support school meals for all, with a focus on best practices and kitchen infrastructure. This funding will contribute to California students getting access to healthier options for school meals.

HEALTH CARE

Medi-Cal Expansion – The budget agreement includes notable health care investments including expansion of Medi-Cal to all adults regardless of immigration status (Health4All), with an implementation date ‘no later’ than January 1, 2024. It’s estimated that the expansion will result in roughly 700,000+ people becoming newly eligible for full-scope Medi-Cal at ongoing cost of $2.3 billion.

Medi-Cal Reform – The budget also reforms Medi-Cal share-of-cost so elders and people with disabilities can afford necessary Medi-Cal services and provides continuous Medi-Cal coverage for children up to age five. Both reforms have a delayed implementation date of January 1, 2025 and are subject to a budget appropriation at that time. The budget also zeroes out Medi-Cal premiums, expands Medi-Cal coverage of custom crowns for back teeth, and increases the Medi-Cal doula reimbursement.

Additionally, the budget provides navigator funding, Covered CA state premium subsidy funding, and establishes the Office of Health Care Affordability. More details of this budget’s health care investments can be found at Western Center’s updated 2022 Health Budget Scorecard.

HOUSING

As California faces dwindling affordable housing stock, skyrocketing rent increases, and as thousands of Californians wait for promised rent relief via the Emergency Rental Assistance Program (ERAP), state leaders mostly funded existing programs in this budget and failed to make housing investments at the scale needed to tackle the housing crisis.

Eviction Prevention – Billions of dollars in emergency rental assistance have been requested, but the legislature capped assistance previously promised in SB 115 at $1.95 billion, while increasing application denials for unclear reasons. As such, this budget provides $30 million in increased funding for legal aid eviction defense to represent the thousands of tenants who will likely face eviction due to the state’s inability to properly manage ERAP.

Homelessness – This budget will result in more displacement of people experiencing homelessness with increased funding for encampment sweeps: $300 million for 2022-2023 and $400 million for 2023-24. There are no meaningful investments in permanent housing for our unhoused neighbors. This budget also does not include investments for AB 1816 (Bryan) to go toward workforce development and permanent supportive housing for people who were recently incarcerated and experiencing or at risk of homelessness; rather, this budget funds temporary programs that often contribute to a revolving door of recidivism. However, this budget does finally invest in a program created nearly eight years ago for veterans and their families experiencing homelessness by allocating $50 million to Proposition 41 (2014).

Affordable Housing – This budget makes a $2 billion multiyear investment in affordable housing. The budget allocates $150 million over two years to preserve California’s existing highly prized and disappearing affordable housing stock. Since many Californians rely on mobile and manufactured homes for affordable housing, the budget invests $100 million over two years for mobile and manufactured homes. In an attempt to add to California’s affordable housing stock, the budget allocates $250 million for the Housing Accelerator Program to build affordable housing where builders can’t access tax credits, as well as $325 million over two years for the Multifamily Housing Program, two critical programs that deserve a larger investment. The budget allocates $425 million over two years for the Infill infrastructure grant program for capital improvement projects and $410 million over two years for Adaptive Reuse to convert buildings into housing, including a $10 million appropriation of existing funding. There is also an additional investment of $50 million for ADU financing on existing lots. While greatly needed, this funding should come with more requirements for the creation of affordable units for households with low and extremely low incomes.

Homeownership – Since homeownership is nearly impossible for many first-time homebuyers in California, particularly for non-white people whose generational wealth was stripped due to intentionally racist housing policies, this budgets makes a commitment to assist first-time homebuyers by establishing the California Dream for All program, providing $500 million to assist first-time homebuyers with lower down payments, more than 1/3 reduction in monthly mortgage payments, and $350 million over two years for the CalHome program.

Housing for Farmworkers – This budget invests in farmworkers, whose hard labor keeps many of us fed, by appropriating $50 million for the Joe Serna Jr. Farmworker Housing Program. The program is intended to construct and rehabilitate housing for farm workers who often live in hazardous and uninhabitable housing conditions.

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For a PDF of this analysis, click here. For questions contact:

Access to Justice & Financial Security

Health Care

Housing & Homelessness