New State budget will deliver nearly $150 million to improve quality of life in Sacramento

The new state budget signed by Gov. Gavin Newsom last week contains millions of dollars earmarked for specific projects in the city of Sacramento, including new urban amenities and at least $33.4 million over the next two years to address homelessness.

The allocation for homelessness will be used to help fund the homelessness siting master plan that is scheduled to come to City Council on Aug. 10; it is expected to create more than 5,000 safe camping, shelter and housing spaces city wide. Sacramento County will receive a separate allocation.

“A major thank you to Gov. Gavin Newsom and the Legislature for empowering our cities and counties to help the thousands suffering in the streets,” Mayor Darrell Steinberg said. “You led big once again, and we are grateful. We will use these resources wisely and aggressively.

“I would also like to thank Sen. Richard Pan and Assembly members Kevin McCarty and Jim Cooper for ensuring that their districts were represented in this budget and for championing various projects that will have a huge impact on our city and our residents,” Steinberg said. “You have our gratitude as well.”

In addition to the money for homelessness, Sacramento and the state’s other 13 largest cities will each receive a proportional share of $150 million allocated to increase employment opportunities for youth, including with part-time or summer jobs.

Here’s a list of funding in the new State budget earmarked for the city of Sacramento and local projects:

  • $30 million for infrastructure needed to develop the Sacramento Railyards
  • $30 million to provide grants to organizations to provide diapers to low-income families with infants or toddlers, including the Sacramento Food Bank and Family Services
  • $5.7 million for cannabis assistance grant funding
  • $2 million for the Planting Justice project at Mangan Park, which will convert the shuttered City Tree Nursery into an urban agricultural hub
  • $3 million to fund a public health program and educational exhibit at Sacramento’s new Museum of Science and Curiosity.
  • $1.8 million to the City of Sacramento for an expansion of Fairytale Town
  • $13.5 million to the City of Sacramento for community reinvestment
  • $1 million for the Sacramento LGBT Community Center for capital improvements and costs
  • $1 million for Capital Public Radio for equipment and seating for public performance space at 1010 8th Street in downtown Sacramento
  • Up to $10 million to the Sacramento River Cats for COVID-19 losses via the California Venues Grant Program
  • $12 million for Cal Expo and the State Fair
  • $750,000 for Habitat for Humanity for Greater Sacramento for the Mandolin Estates housing development in the Glen Elder Neighborhood

The new State budget also includes a $6 billion expansion of Project Homekey, which provides funding for local organizations to transition hotels into housing for people experiencing homelessness. This expansion could add 42,000 additional housing units statewide, officials said.

The new Project Homekey funding is part of the State’s $12 billion investment to address homelessness over the next two years. In addition, the new budget also contains $3 billion for the construction of affordable housing projects.

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