California voters narrowly approve Newsom’s mental health bond

SACRAMENTO, California — California voters have agreed to rewrite the state’s decades-old mental health law and borrow $6.4 billion for new facilities to house and treat the most severe cases — a top priority for Gov. Gavin Newsom.

Proposition 1 squeaked by with 50.2 percent of the vote two weeks after the March 5 election, following a one-sided campaign in which Newsom’s campaign committee benefited from a multimillion dollar warchest and little opposition.

“This is the biggest change in decades in how California tackles homelessness, and a victory for doing things radically different," Newsom said in a statement. "Proposition 1’s passage means we can begin repairing the damage caused by decades of broken promises and political neglect to those suffering from severe mental illness."

Newsom’s broader plans to address severe mental illness and substance abuse hinged largely on the measure’s outcome, creating immensely high stakes for the governor’s policy agenda. Uncertainty about the fate of the measure led Newsom to postpone his State of the State address and send out an appeal to supporters to help correct rejected ballots to get the proposition over the finish line.

Prop 1 changes a 2004 voter-approved tax on incomes over a million dollars that currently generates around $4 billion annually, imposing new requirements on how counties report and spend the funds on mental health programs.

The measure also includes a $6.4 billion bond to build 11,000 addiction and mental health treatment beds and supportive housing for veterans.

County health officials will have until 2026 to adjust their mental health budgets to reflect a shift in priority for state funds spent locally. Counties will be required to commit around one-third of their spending to housing assistance for their clients, while focusing on intensive services for people in encampments.

Prop 1 was popular with mayors, first responders and business interests, and has been widely supported by interest groups and corporations across the political spectrum. A committee controlled by Newsom raised over $16 million to pass the measure, and heavy advertising emphasized the proposal’s impact on homelessness and the well-being of military veterans.

Disability and civil rights groups slammed Prop 1 as a threat to existing resources for mental health services and part of a move toward more involuntary treatment. But activists struggled to win significant institutional support and were unable to raise the money necessary for paid campaign communication.

Californians Against Prop 1 said in a statement the results were "an embarrassing squeaker of a victory."

"Our group has been energized by the public's outrage and we will continue efforts to make sure all ballots are counted before this election is certified."