On May 14, Governor Newsom unveiled his Administration's May revised budget, detailing the dramatic impact of the COVID crisis on the state's financial picture. Back in January, the Governor's Office projected a $6 billion surplus for FY 20-21--with COVID that has swung to a projected $40 billion deficit fo FY 20-21.
As part of the May Revision, the Governor's Office also withdrew their California Access to Housing and Services Fund proposal, and is instead now proposing $600 million in funding for hotel and motel acquisition using State Coronavirus Relief Funds from the federal CARES Act, which must be spent by the end of the calendar year.
The State is also proposing $1.3 billion in flexible funding for counties that can be expended on homelessness, public health, or public safety, with LA County expected to receive $163 million of this funding. In addition, the State is proposing $450 million in flexible funding for cities for homelessness interventions related to COVID including outreach and hygiene. This funding excludes the six cities around the State that received direct allocations of Coronavirus Relief Funds, including the City of LA.
The State Legislature last week began a round of budget hearings to start weighing in on the May Revision, with the Legislature and the Governor's Office facing a June 15th deadline to reach a final budget deal.
Meanwhile, AB 3300, which would direct $2 billion in homelessness funding to cities, counties, and CoCs, advanced through the Assembly Housing Committee on May 20th, and will now be heard in the Assembly Appropriations Committee.
If you have any questions about the state budget, please contact Alex Visotzky.