Newsom Calls for $5B Bond Vote to Revamp California Mental Health Care

SACRAMENTO, Calif. — California Gov. Gavin Newsom on Tuesday threw his support behind two bills currently in the state Legislature that would increase the number of treatment beds available to homeless people with mental illness and substance abuse issues and pay for them through a $4.68 billion bond referendum.

Newsom has been pushing for changes to California’s 20-year-old Mental Health Services Act for months, vowing to “modernize” how California treats mental illness and homelessness.

Voters approved the Mental Health Services Act in 2004, adding a 1% tax on residents earning more than $41 million per year. Since then, the revenue generated by the tax collection has covered more than 30% of the annual costs for state-funded mental health care.

This care includes treatment in local facilities, workforce training and crisis prevention efforts.

Newsom wants to amend the longstanding law to include provisions for substance abuse treatment and add a requirement that would redirect $1 billion of the tax revenue toward housing or residential facilities. 

This year, the tax is expected to generate a total $3.8 billion in revenue that is then shared with counties and other local municipalities.

State Sen. Susan Talamantes Eggman wrote the bill that carries out Newsom’s proposed changes, while state Assemblywoman Jacqui Irwin sponsored the measure that would allocate bond money to finance new treatment centers and housing facilities. 

The latest efforts build on legislation that Newsom signed last year to create a new civil court system to compel residents struggling with mental health and addiction into court-ordered treatment.

While the Community Assistance, Recovery and Empowerment Court, or CARE Court was widely applauded, critics pointed out a flaw the new measures are intended to address: While the CARE Court compelled treatment, it did not provide housing for the homeless people receiving it.

The bond measure is expected to be voted on next March, during the spring primaries.

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