On February 19, Governor Gavin Newsom delivered his second
State of the State Address
to a joint session of the Legislature and the people of California.
I appreciated the Governor’s focus on tackling our state’s homelessness crisis. He’s right when he says it’s a “disgrace” that thousands of people are living on our streets. How does a state that boasts the sixth largest economy in the world have a homeless population of roughly 150,000? It’s a multifaceted problem that began decades ago and won’t be solved overnight.
Even though California is an expensive place to live, there are nearly 40 million of us who choose to do so. It seems the trade-off for enjoying California’s beauty and temperate climate is some of the highest tax rates in the nation. Taxpayers pay electricity rates that are almost 50 percent higher than the national average and gas taxes that top 53 cents a gallon with more increases to come. And housing, which has always been higher priced here than in other states, is no longer affordable, even to those in the middle class.
But it doesn’t stop there. Remarkably, legislators and special interest groups have introduced bills in this legislative session and qualified initiatives for this year’s ballots that would create new taxes, fees, and bonds. And that doesn’t include the new taxes and fees that will be needed to fund the Governor’s proposed $750 million
California Access to Housing Fund
. How can new taxes and fees be justified when we have a projected budget surplus of $5.6 billion?
California is experiencing its lowest unemployment rate since the 1970s. Unfortunately, many Californians are unable to enjoy the fruits of their labor because housing costs are eating up a larger part of their budget than ever before. It’s unacceptable that the
average cost
of building a 100-unit affordable housing project in California increased from $265,000 per unit in 2000 to almost $425,000 in 2016.
We simply can’t sustain this steep increase in costs. We need to find ways to lower costs while increasing the number of units available—lowering taxes and fees, streamlining the permitting process, relaxing regulatory requirements, and reducing development fees—so housing is once again affordable for all Californians.
During his speech, the Governor vowed to accomplish his goals with “real accountability and consequences.” California has already spent millions trying to address the homelessness and affordable housing issues, but it only seems to get worse, not better. If lawmakers are going to raise taxes and fees to fund the Governor’s vision, we should demand that accountability measures are built in so there are
actual
consequences when funding isn’t used for its intended purpose.
I look forward to working with Governor Newsom on solutions that will provide shelter and critical mental health and other services to those in need while also enacting policies that make California a more reasonably priced place to live.
