We want to see encampments cleaned up, we want to see people housed.”Newsom, who coasted to reelection this month, is on the hook in his second term to show reductions in the growing number of unhoused individuals, some of whom camp out along city sidewalks and under highway underpasses, exasperating even the most politically liberal voters in the country’s most populous state.He stunned the state when he announced two weeks ago that he would withhold $1 billion in spending until cities and counties came up with more robust plans, calling submitted plans “simply unacceptable” as they would collectively reduce the state’s homeless population by just 2% over the next four years.On Friday, he reiterated the record amount of money his administration has spent on housing and homelessness, including a recent commitment by state lawmakers to spend $15.3 billion over the next three years.Newsom said he had no plans on turning his back on local governments, but that “finding new dedicated money as we enter into what could be a recession with the headwinds, one has to be sober about that — just as they’re sober about that with their budgets.”Sacramento Mayor Darrell Steinberg defended Newsom, saying after the meeting that he understood the governor’s need to provoke local governments into action.That possibility of a separate funding stream for homelessness became dimmer this week after state officials announced Wednesday that California will likely have a $25 billion budget deficit next year after a run of historic surpluses."