Some worry California proposition to tackle homelessness would worsen the problem

Democratic California Gov. Gavin Newsom is urging voters to approve a ballot initiative that he says is needed to tackle the state’s homelessness crisis

OROVILLE, Calif. -- Democratic California Gov. Gavin Newsom is urging voters to approve a ballot initiative that he says is needed to tackle the state's homelessness crisis, a change social providers say would threaten programs that keep people from becoming homeless in the first place.

In 2004, voters approved legislation that imposed a tax on millionaires to finance mental health services, generating $2 billion to $3 billion in revenue each year that has mostly gone to counties to fund mental health programs as they see fit under broad guidelines.

Now Newsom wants to give the state more control over how that money is spent. Proposition 1, before voters on the March 5 ballot, would require counties to spend 60% of those funds on housing and programs for homeless people with serious mental illnesses or substance abuse problems.

The single formula would mean rural counties like Butte, with a homeless population of fewer than 1,300 people, would be required to divert the same percentage of funds to housing as urban counties like San Francisco, which has a homeless population six times bigger. San Francisco Mayor London Breed said she supports the measure. Butte County officials have expressed concerns.

The funding from the millionaire tax in Butte County has mostly gone to prevention services to combat high suicide and childhood trauma rates. Officials estimated they would have to divert at least 28% of current funding from existing programs toward housing. They say the change could cause cultural centers, peer-support programs, vocational services and even programs working with homeless people to lose funding.