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(JUST THE NEWS) – California Governor Gavin Newsom announced California is a “national model” for homelessness while announcing the availability of new funding for mental health and substance abuse treatment. California’s homeless population was 181,399 in January of 2023, and is the largest in the nation. Using similar, recent state programs as cost-approximation, Prop. 1 could very well meet the governor’s claims.
While ongoing treatment costs may prove to be cost effective, government-funded housing projects in California have a history of going well over initial expectations. This means that though Prop. 1 treatment programs may end up being of high value compared to the up to $50,000 in local services, typically through first responders such as police, firefighters, and paramedics, a homeless person on the street tends to use each year.
Prop. 1, which narrowly passed by just 28,000 votes of the 7.2 million ballots cast on the measure, created a $6.4 billion bond for building 11,150 new behavioral health beds and 26,700 outpatient treatment slots, and funding more homeless housing. Interest on the bond at 3.3% over 30 years, the rate the state secured on its most recent general obligation bond issuance, would cost $6.3 billion, bringing the bond’s total cost to $12.7 billion.
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