Governor Gavin Newsom stood before lawmakers at the state Capitol on Thursday, January 8, 2026, to deliver a surprising statistic during his State of the State address.
Newsom declared a 9% decline in homelessness across California, touting it as a sign of progress after the state invested over $24 billion in related programs during his tenure, though he provided no updated statewide total for 2025 as federal census data remains unreleased.
Yet, beneath the polished rhetoric, a starkly different picture emerges from the streets of Los Angeles and Santa Monica, where business owners, residents, and local leaders argue the crisis of unsheltered individuals, drug abuse, and sprawling encampments shows no sign of abating.
Critics on the ground are quick to challenge the governor’s narrative, pointing to a disconnect between Sacramento’s numbers and daily life in affected communities.
In areas like Hollywood, Venice, and Skid Row, data from LA LEADS suggests official counts missed the mark by about a quarter in 2024 and nearly a third in 2025.
RAND, a respected nonprofit research group, has also raised alarms in its report titled "Growing Inaccuracies in Official Counts Jeopardize LA Homelessness Wins," noting that volunteer-led tallies often overlook the most vulnerable "rough sleepers" who lack tents or vehicles.
In Sherman Oaks, Rene Ruston, founder of Shelter Transport Animal Rescue, described a recent incident where a homeless individual smashed her nonprofit resale shop’s window with a brick and stole donated clothing before opening hours.
“I feel like I’m held hostage,” Ruston said. Her words ring true for many who face smash-and-grab incidents as a grim routine, while state leaders celebrate supposed victories.
Property owner John Alle echoed similar frustrations, highlighting MacArthur Park in LA as a hotspot for meth and fentanyl abuse that fuels local struggles. “It’s easy to say the number’s down when people are dying,” Alle noted, questioning how a decline can be claimed amid rising overdoses and violence.
In Santa Monica, officials acknowledge fluctuating homelessness numbers year to year, yet the visible presence of tents and vehicles continues to grow despite regional efforts.
Former Santa Monica Mayor and current City Council member Lana Negrete didn’t mince words about the state’s role. “Local governments are doing everything we can, but state policies that fail to prioritize safeguarding, treatment, and accountability — while allowing drugs and untreated mental illness to dominate public spaces — continue to strain cities and harm communities,” she said.
Negrete’s critique cuts to the heart of a broader concern: are flashy percentages masking a refusal to tackle root causes with tough, pragmatic solutions?
Even inside the Capitol, lawmakers greeted Newsom’s announcement with a muted response, suggesting skepticism about whether the reported drop reflects meaningful change.
With homelessness hitting a record high of nearly 124,000 unsheltered individuals in 2024 per federal data, a mere 9% reduction — if accurate — feels like a drop in the bucket to those dodging encampments and open drug use daily. California deserves policies that match the urgency of the crisis, not just optimistic press releases.
