Proposition 1

Yes on Proposition 1

Support IconProposition 1

Authorizes $6.38 Billion in Bonds to Build Mental Health Treatment Facilities for Those with Mental Health and Substance Use Challenges; Provides Housing for the Homeless. Legislative Statute.

Following is a brief summary of Proposition 1, which will appear on the March 5 Primary Election ballot. The California Chamber of Commerce supports Proposition 1 and the reasons for that position are summarized below.

The CalChamber encourages employers to share this information with employees. Businesses are within their rights to do so — just remember: NO PAYCHECK STUFFERS, no coercion, no rewarding or punishing employees (or threatening to do so) for their political activities or beliefs.

For more information see the guidelines on political communications to employees. Note the distinction between internal communications (to employees, stockholders, and their families) and communications to external audiences (such as nonstockholder retirees, outside vendors, customers and passersby).

Proposition 1 does not increase taxes, but rather utilizes existing tax revenue to pay for the mental health services, substance abuse treatment, and debt repayment on the bond.

For more information on Proposition 1, see the link listed below or visit the website of the Secretary of State at

Authorizes $6.38 billion in state general obligation bonds for mental health treatment facilities ($4.4 billion) and supportive housing for homeless veterans and homeless individuals with behavioral health challenges ($2 billion).

Amends Mental Health Services Act to:

  • Allow funding to be used to treat substance use disorders (instead of only mental health disorders);
  • Re-allocate funding for full-service treatment programs, other behavioral health services (e.g., early intervention), and housing programs;
  • Require annual audits of programs.

Placed on Ballot by: Legislature: AB 531 (Irwin; D-Thousand Oaks), Chapter 789, Statutes of 2023; and SB 326 (Eggman; D-Stockton), Chapter 790, Statutes of 2023. Sponsored by Governor Gavin Newsom.

CalChamber Position: Support. CalChamber President and CEO Jennifer Barrera co-signed the rebuttal to the ballot argument against Proposition 1.

Arguments For

Proposition 1 provides an effective and ambitious plan that addresses the three interrelated social crises of homelessness, untreated serious mental illness and drug abuse in California. The measure will provide the resources to help communities across the state recover from what has been an unprecedented mental health and homelessness crisis.

Proposition 1 authorizes nearly $6.4 billion in bonds and directs billions more annually to fix the broken mental health system and move people off the streets, out of tents and into treatment. Proposition 1:

  • Expands community-based mental health and addiction services across the state and will serve tens of thousands of Californians each year.
  • Builds supportive housing where more than 11,000 Californians with the severest mental health needs can live, recover, stabilize and thrive.
  • Prioritizes treatment over incarceration. Today, 1 in 3 California prisoners has a diagnosed mental illness and California spends more than $100,000 per incarcerated person. Research shows incarceration is costly and counterproductive.
  • Helps homeless veterans. Proposition 1 will provide $1 billion to serve veterans experiencing homelessness, mental health and substance abuse issues. More than 10,000 California veterans, many suffering from post-traumatic stress disorder (PTSD), are homeless and on the street.
  • Addresses shortage of mental health workers. Currently, persons with serious mental health issues can wait six months or longer for just an introductory appointment. Proposition 1 will fund additional professionals.
  • Requires strict accountability. The measure includes mandatory audits to ensure that funds are spent as promised.

More Information

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