Dear John,

Last week, Governor Gavin Newsom released his 2024-25 budget proposal, which includes an estimated $37.9 billion shortfall (nearly twice the shortfall we faced at this time last year). Due in no small part to the multi-billion-dollar budget shortfall, the budget includes various spending reductions and deferrals across many programs and issue areas, including affordable housing and homelessness solutions.

👉 Key Takeaway Our state’s fiscal reality reinforces the need for longer-term solutions outside of the state budget process, solutions capable of embracing the structural shifts needed to bring housing solutions, at scale, to all California neighborhoods and communities.

🌅 Looking Ahead to 2024 This year’s legislative session and the 2024 election will be a pivotal time to advance our affordable housing priorities outside of the budget process and keep the forward momentum in ensuring that all Californians have a safe and stable place to live. NPH has been strategizing with our members for several years in order to lead in 2024 campaigns designed to broaden and deepen public support for affordable housing solutions; pass structural reforms so communities can meet their housing needs; and win region-wide funding for affordable housing at scale. Read NPH’s full analysis on the proposed budget.

What's Next for the Budget: NPH and our allies will work closely with lawmakers, the Governor’s office, and advocates to maintain the affordable housing and homelessness solutions in the current budget proposal and also advocate for additional investments to be included in the May Revise.