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Governor Newsom Threatens To Take Away State Funds For Cities That Don’t Approve More Housing

Governor Gavin Newsom threatened to withhold state funds for cities that don’t approve additional housing in his budget proposal last week, raising concern from Santa Clarita leaders.


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Newsom proposed taking away transportation funding — including revenue generated by the gas tax — from cities that fail to meet longer-term housing goals.

“The governor needs a plan that is not ‘one-size-fits-all;’ different cities have different needs,” said Santa Clarita Mayor Marsha McLean.

The budget proposal includes an estimated $2.3 billion for housing, including $1.3 billion for cities and counties in financial incentives to plan for new homes and homeless housing efforts.

Remaining funds totaling $1 billion are proposed for loans and subsidies to housing developers to build low- and moderate-income housing.

The budget proposal still needs to be approved by the California legislator.

Newsom said this plan could be the solution to the state’s housing crisis, which is fueled by the current rate of development: about half of the recommended units needed in order to stabilize the growing cost of housing, according to a study by the California Legislative Office.

“The No. 1 driver of cost-of-living is housing – housing is the issue. Unless we get serious about it, the state will continue to lose its middle class and the dream will be limited to fewer and fewer people,” said Newsom.

See Related: Over 47,000 Homes Planned Near Santa Clarita, Raising Concern About Potential Traffic Impacts

The proposal includes “carrots and sticks” for local governments, meaning there are incentives for those who meet the recommendations — and penalties for those who do not.

“He needs to do some deep thinking,” McLean said. “Taking away tax dollars that residents have already paid from local governments is not the answer.”

Newsom has previously called for building an estimated 3.5 million housing units to be constructed over seven years — almost doubling the current rate of production.

There is an estimated $750 million in incentives for local municipalities, including an estimated $250,000 for “streamlining” local building regulations.

The state budget proposal is expected to be revised in May, with a vote in both houses of the California Legislator scheduled by June 15.

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Governor Newsom Threatens To Take Away State Funds For Cities That Don’t Approve More Housing

6 comments

  1. California just voted in another idiot for Governor that iis worse than the last idiot. Time to move. Leave the state to the poor, uneducated illegal aliens that can’t afford to live here. The Governors solution is to turn the sanctuary state of California into a Mexican 3rd world state like the country of Mexico.

  2. The fun begins as socialist Newsom continues the Sacramento abuse on the people of CA… suck it up… you all’ voted for him.

    “Guaranteed health care for all. A ‘Marshall Plan’ for affordable housing. A cradle-to-college promise for the next generation.”

    With a democratic super majority in Sactown and NO accountability to tax payers, they will raise taxes on empty promises and redirect funds to suit their special interests (like a train to nowhere) just like they have been doing for decades.

  3. It’s a shame that CA is literally falling apart thanks to the broken promises governors say to get elected. Yep I want more houses here in SCV and higher taxes: REALLY? CA is going to be left with illegals, medi-cal health system, Spanish as the language, drug lords and a disgrace. If we vote people in then why don’t we vote them out? Congress is an elementary school room of old folks that need to go and start all over with new perspectives. Back pay? The average working person doesn’t get back pay. I get the humanitarian concept and people can’t pay monthly expenses but there is always alternatives but we rather protest, throw temper tantrums and not get anywhere. It’s shameful what is happening and leaving CA just might be the answer.

  4. What does SC leaders have to worry about? We have 47,000 new homes being built. With two working adults in each of those homes, that equates to about 94,000 more cars to our local traffic. And with the people not repealing Brown’s Gas Tax, Gavin can increase the gas tax as much as they want anytime they want.

  5. Funny how its OK for the new Governor of California to make threats to the Cities that do not comply with his policies for new homes, but when the POTUS threatens to cut off funding in California its not OK? Because its not in line with what Mini-Moonbeam (AKA Newsome) wants? Let him start by adding new homes next to his play pin.

  6. Thanks for voting for this tax crazy leftxtremist. Talk to your teens people before they vote in another tax crazy demacrat. Vote Republican people and save America from the blood sucking tax crazy demacrats.

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About Devon Miller

Devon Miller was born and raised in Santa Clarita. He joined KHTS Radio as a digital marketing intern in September of 2017, and later moved to news as a staff writer in December. Miller attended College of the Canyons and served as the Associated Student Government President. Miller is now News Director for KHTS, covering breaking news and politics across the Santa Clarita Valley.