Our 2018 Budget Outlook Governor Jerry Brown released his initial budget for the 2018-2019 fiscal year on Wednesday, proposing $190 billion in spending and tucking away $5 billion into the state’s Rainy Day Fund. The budget highlights the 2017 legislative housing package signed into law by Brown. It provides $3 million from the General Fund to the California Housing and Community Development Department to implement the package, including the Building Homes and Jobs Act (SB 2) that is projected to generate $258 million dollars during this budget year. At his time, it is unclear if this will be enough investment to fully cover the cost of implementing the new policies. The budget makes note of the possibility of new future funding if voters pass the $4 billion Veterans and Affordable Housing Bond in November. In addition, it names the Affordable Housing and Sustainable Communities Program and the No Place Like Home Program as significant state investments for more affordable housing construction, though the latter has yet to release funds due to pending court validation. Housing California's top priorities for this year are securing the passage of the Housing Bond and implementation of the housing package in a manner that results in more affordable homes for Californians struggling to make ends meet. We are also deeply invested in advocating for innovative budgetary and legislative strategies to take the next steps in solving the homelessness and affordable housing crisis. Budget-wise in homelessness, we are working with our advocacy partners to develop a plan to address youth homelessness through funds available in 2018 through the general fund and SB 2. The population of youth experiencing homelessness continues to rise, with the latest Point-in-Time Count (typically under-reported) finding more than 15,000 youth experiencing homelessness in California. Homelessness advocates are also developing a pilot program to fund supportive housing for formerly incarcerated Californians who are homeless and suffer from a mental illness. Providing a stable, affordable place to live that does not limit length of stay, along with services that promote housing stability, is an evidence-based intervention proven to reduce recidivism. During his budget press conference Wednesday morning, Brown said budget volatility in California stems from the 1978 passage of Proposition 13, and it would take the voters to fix it. A multi-sector coalition in which Housing California is engaged has spent years researching the best way to address this, and filed a ballot proposal last month. Housing California is supporting the proposal, the California Schools and Local Communities Funding Act of 2018, which closes a commercial property tax loophole in Prop. 13. "Housing California is kicking off 2018 with many exciting opportunities to work with our Board, the legislature, the administration, and our partners across the state," said Executive Director Lisa Hershey. "In 2017, we built momentum and took a giant leap toward more progressive, equitable policies, but we can and must continue to do more. It is heartening to see that Governor Brown's last budget reflects on the need to counteract the effects of poverty in our state. Housing California will be proactive in this endeavor and also work to ensure affordable housing is a top priority for the future administration." Track our priorities through the 2017-2018 legislative session. |
