Newsom vetoes bipartisan bill requiring state to evaluate homelessness spending

Despite broad support, California Gov. Gavin Newsom said the state didn't need increased oversight on how tax dollars are spent on homelessness.

Newsom vetoed an unopposed bill that would have required the state to evaluate the money it gives to cities and counties for homelessness programs, saying it would create “unnecessary ongoing workload” and that other actions already to increase oversight render the bill “redundant.” Earlier this year, a state audit found the state was not adequately tracking the outcomes for much of its recent $24 billion in homelessness spending.

“This was a bipartisan bill with no opposition. Clearly the Legislature agreed on the need to rein in Newsom’s wasteful spending on ineffective homelessness programs,” said bill author State Assemblyman Joe Patterson, R-Rocklin, in a statement. “I’m glad we were able to get some safeguards written into the budget, but the state can’t keep cutting corners on accountability when dishing out billions of taxpayer dollars and seeing the problem get worse.”

The Department of Housing and Community Development is currently required to submit an annual report to the legislature and governor on its Homeless Housing, Assistance, and Prevention program. Patterson’s bill, AB 2570, would have required HCD include an evaluation of HHAP in this annual report.

“I believe that by requiring a status update and review of the Homeless Housing, Assistance, and Prevention program in the Department of Housing and Community Development annual report to the Governor and both houses of the Legislature, we will be able to shed light on the flaws in our plan of action in addressing the overwhelming homelessness issue in our state,” argued Patterson in a State Senate floor analysis of the bill, which passed without any opposing votes and no submitted arguments against it.

Newsom, on the other hand, argued he and the legislature have already taken sufficient action to enhance accountability and transparency on state homelessness spending. Earlier this year, a state audit found “the State lacks current information on the ongoing costs and outcomes of its homelessness programs” because it has “not consistently tracked and evaluated the State’s efforts to prevent and end homelessness.”

“Earlier this year, I directed California's Housing Accountability Unit to increase its oversight and enforcement of existing housing laws to address homelessness. Additionally, the recently adopted 2024 Budget includes statutory language that requires more frequent reporting by HHAP grantees on their expenditures, corrective action plans for grantees not meeting specified performance measures, and maintenance of compliant Housing Elements prior to receiving additional HHAP funding,” wrote Newsom in his veto letter. “This bill is redundant to these efforts and creates an unnecessary ongoing workload for the Department without providing additional accountability or transparency to taxpayers.”

According to the Los Angeles Times, California lawmakers haven't used their power to override a governor's veto with a two-thirds vote of each house since 1980, suggesting Newsom's veto is the final word on the matter.