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The Legislature is forcing the city and county of Sacramento to try something unusual in their fight against homelessness, and both critics and supporters of the controversial plan say it could have broad implications for the rest of the state.
Gov. Gavin Newsom signed Senate Bill 802 on Sunday, which requires Sacramento, as well as all smaller cities within the county, to coordinate and form a joint powers authority that will lead the region’s homelessness response.
“Homelessness does not stop at jurisdictional boundaries,” Newsom wrote in a signing message, “and no city or county can solve this crisis alone.”
A joint powers authority is a public partnership where two or more local governments or agencies team up to jointly manage something. In Sacramento, the idea is that this new framework will allow the cities and county to better communicate and work together on homelessness – hopefully leading to more people getting off the streets.
Supporters say it’s a no-brainer, and they hope it will be an example to fix an age-old problem playing out in regions across the state: Cities and counties must work well together to effectively address homelessness, but they often don’t. On the other hand, opponents say forcing local governments to work together sets a bad precedent: Cooperation works best if it’s voluntary.
Meanwhile, this new experiment in co-governance is highly atypical for a number of reasons.
For one thing, this appears to be the first time the California Legislature has forced anyone to form a joint powers authority. Typically, those agreements are voluntary. In Sacramento, local jurisdictions chafing under this new mandate worry the new law will embolden the Legislature to do this again in other regions.
“This would be unprecedented, so it could have ramifications in 57 other counties,” said Sacramento County Supervisor Patrick Kennedy, who opposes the legislation. The county is threatening to sue the state to stop its implementation.
In addition, while it’s not uncommon for local governments to form joint powers authorities to manage other things that cross city boundaries — such as sewers or public transit — it’s very rare for this type of structure to govern a region’s homelessness response. In 2020, there were only three examples in all of California, according to Joe Colletti, chief executive officer of the nonprofit research organization HUB for Urban Initiatives. The most well-known is the Los Angeles Homeless Services Authority, which recently has been reduced to a shell of its former self as a result of one headline-making crisis after another. In the rest of the state, a region’s homelessness response usually is led by a county or nonprofit.
Squabbling between cities and counties
This legislation was controversial from the beginning. It took Sen. Angelique Ashby, a Democrat from Sacramento and former city councilmember, two years of tense negotiations and multiple amendments to get it across the finish line. The final version allows the county and participating cities to keep control of their own funds, rather than pooling everything together — a major sticking point for the local governments.
The Sacramento region needed this legislation, Ashby argued during a recent committee hearing, because its various agencies have eight boards and nearly 90 board members working separately on homelessness without coordinating. The result is duplicated and inconsistent services, leaving people who are homeless in Sacramento County with no idea where they should go for help, she said.
It’s a problem the city and county have tried to fix for more than two decades. In 2010, the county board of supervisors and city council approved resolutions that supported creating a joint powers authority, but it didn’t happen. Two separate grand jury reports, one in 2019 and another in 2023, said the region’s homelessness response was dysfunctional and recommended better coordination.
It’s hardly an issue unique to Sacramento. Across California, cities typically provide shelter beds, while counties are responsible for the other services homeless residents need, such as mental health and addiction treatment. That’s because counties receive state funding for social services, and cities don’t. So, neither can effectively address homelessness unless they work together. But, frequently, they don’t. Instead, they often squabble over who should pay for what, and who isn’t doing their fair share.
Fighting between neighboring cities is common, too. As unhoused people move across city lines, local governments argue over who should have to provide shelter beds and other resources.
It was a major frustration for former Sacramento Mayor Darrell Steinberg. His constituents saw people on the street in mental health crisis, suffering. Voters demanded he do something, but his hands were largely tied, he said, as he had no control over the county’s mental health services.
“There was just a major gulf between my accountability to the people and my authority to be able to actually make the difference that the people expected,” Steinberg said.
During his time in office, which ended in 2024, Steinberg negotiated a partnership between the city and the county. But it lacked a governance structure that would have forced them to make decisions together. That’s the missing piece that this law brings to the table, he said.
Under the new law, the city and county of Sacramento, as well as Elk Grove, Rancho Cordova, Citrus Heights and Folsom, have until January 2028 to finalize their joint powers authority. They recently convened a joint task force of elected officials, and have started working together on homelessness issues.
But there’s some lingering tension. While the city of Sacramento is on board with the legislation, the county and the city of Folsom are opposed. Neither is against the idea of collaboration, but they don’t like that it’s being forced upon them.
“It’s an unnecessary cost,” county Supervisor Kennedy said. “It’s an unnecessary layer of bureaucracy, it’s an unnecessary burden that’s just going to slow down processes.”
Staffing and running the new joint powers authority is expected to have an annual price tag of anywhere between the mid-hundreds of thousands of dollars, to the low millions, according to a Senate analysis.
Examples in Los Angeles and Solano counties
As the Sacramento region gears up to create this new power structure, it has two main examples it can turn to.
One, in Los Angeles, is a cautionary tale. The Los Angeles Homeless Services Authority, a joint powers authority between the city and county, was the target of recent audits criticizing its handling of homelessness funds. A downward spiral followed. LA County pulled its funding from the authority and the Trump administration now is prosecuting homeless services providers that it alleges misused money from the agency.
Kennedy said the parallels between LA and Sacramento’s new agency worry him “very much,” and clearly show that a joint powers authority is hardly a panacea for homelessness.
But Steinberg believes the new Sacramento agency can do better. The LA agency didn’t have enough authority, and as a result, the city and county weren’t governing effectively together, he said. He hopes that will be different in Sacramento.
The other example Sacramento leaders can turn to is in Solano County, which created the current version of its joint powers authority in 2022. Local leaders pushed for a collaborative agency after hearing reports that other cities were dropping off their homeless residents at parking lots in Fairfield, assuming that services would be available because it’s the county seat, said Doriss Panduro, a Fairfield city councilmember and chair of the joint powers authority.
Now, the authority is made up of two elected officials from each city and the county, and they meet once a month to discuss how to spend money and how many people are receiving services.
“It is a big undertaking,” Panduro said. “We started the work in 2021, 2022, and here we are four years later just getting paid staff on board. It’s been a big lift.”
But, she said, it’s been worth it.
Recently, the county and all the cities involved in the joint powers authority applied together for state funding to clear one encampment along a flood control basin in Vallejo. Even though Vallejo would be the only city to get that money, it arguably would benefit everyone since it targets the largest encampment in the county, Panduro said. And Vallejo wouldn’t have had the resources to manage the state grant without the support of everyone else, she said.
“Homelessness is such a big issue, and I think finding an out-of-the-box way to approach it, for me, I can only say it’s a positive,” she said. “Everyone felt like we had been doing the same things over and over and nothing was changing.”
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