Shaun Pyles (right) and Rodney Scott, who are homeless, sit in Guadalupe River Park in San Jose, Jan. 12, 2024. Photo by Loren Elliott for CalMatters
Good morning, Inequality Insights readers. I’m CalMatters reporter Wendy Fry.
The U.S. Supreme Court will hear a case that could have huge implications for how California cities deal with homeless encampments, California Divide reporter Jeanne Kuang reports. The case, from the Oregon city of Grants Pass, challenges a 2018 ruling by the Ninth Circuit Court of Appeals that said it was unconstitutional to criminalize sleeping on public property when there was no other legal place to go.
That ruling, known as Martin v. Boise, has been used by homeless advocates to sue cities that try to enforce bans on camping in parks, sidewalks and other public spaces. The advocates argue that such bans violate the rights of the unhoused and do nothing to solve the underlying causes of homelessness. Several California cities, including San Francisco, Sacramento, Chico, and San Rafael, have faced legal challenges or injunctions over their camping ordinances.
“The issue before the Court is whether cities can punish homeless residents simply for existing without access to shelter,” said Ed Johnson, director of litigation at the Oregon Law Center.
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Some city officials and Gov. Gavin Newsom have complained that the Boise ruling has tied their hands and prevented them from addressing the health and safety issues posed by sprawling encampments. They say they need more authority to clear camps and offer shelter or services to the residents. Newsom has joined conservative groups in asking the Supreme Court to overturn, narrow or more clearly define the Boise ruling.
The Supreme Court, which has a 6-3 conservative majority, is expected to hear the case later this year. California had the nation’s largest unhoused population, more than 170,000 people, in 2022.
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Poverty’s Impact. A new study reveals a strong link between poverty, income inequality, and homicide rates in the U.S. from 1990 to 2020. Researchers analyzed state-level data and found states with the highest levels of both poverty and income disparity had the highest homicide rates, especially during the COVID-19 pandemic. The study suggests addressing systemic racism and economic disparities could reduce
violent crime.
Child Tax Boost. A bipartisan group of U.S. lawmakers has reached an $80 billion deal to boost the child tax credit, which would increase the amount of money parents receive per child, while making it available to the poorest families and phasing it out for higher earners. The proposal, part of President Joe Biden’s economic agenda, aims to reduce child poverty and help families cope with the pandemic’s lingering impacts, according to the Washington Post.
Illustration by Miguel Gutierrez Jr., CalMatters
Internet Inequality. California faces a digital divide between urban and rural areas, where hundreds of thousands of residents lack high-speed broadband internet access. The state allocated $2 billion in 2021 to fund broadband projects, but the California Public Utilities Commission plans to spend most of it on areas that already have ample access to the internet, wrote Clint Olivier, CEO of the Business Federation of the Central Valley, in a recent opinion column in The San Joaquin Valley Sun. Olivier urges Gov. Newsom and his CPUC appointees to focus on connecting unserved parts of the state, especially rural Central Valley counties.
Biden vs. Banks. Biden proposed a new rule this week to curb bank overdraft fees, hoping to save Americans billions of dollars. The Consumer Financial Protection Bureau’s proposed rule would cut the average overdraft fee by more than half, saving the typical family who pays these fees $150 a year. Biden calls the fees a form of exploitation that hits the most vulnerable. Banks are preparing to fight back with a multimillion-dollar marketing and lobbying campaign, the Associated Press reports.
Diversity Dilemma. A growing number of lawsuits are targeting corporate diversity and inclusion programs, alleging they discriminate against non-minorities, the AP reports. The lawsuits are fueled by conservative activists who seek to end affirmative action in the workplace, following a Supreme Court ruling that banned it in
college admissions. Some companies have already altered their diversity programs to avoid legal scrutiny, while others are sticking to their policies amid a complex and uncertain legal landscape.
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Immigration Bias. A Fresno-based credit union is facing a lawsuit alleging it denied a loan to a woman based on her immigration status, The Fresno Bee reports. The woman, a DACA recipient, applied for an auto loan with a U.S. citizen as a co-signer but was rejected because of her limited-term driver’s license. The lawsuit, filed by a Latino civil rights organization, claims the credit union’s policy violates state anti-discrimination
laws.
The Cost of Renting. High rent is not only hurting wallets but also shortening life spans. A recent study found people who spent a large portion of their income on rent had worse health and higher mortality rates than those who paid less. The study also linked evictions and eviction threats to increased death risk. Experts say high rent causes chronic stress, poor nutrition, and neglected medical care.
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California Divide is a statewide media collaboration to raise awareness and engagement about poverty and income inequality through in-depth, local storytelling and community outreach. The project is based at CalMatters in Sacramento with a team of reporters deployed at news organizations throughout California.
