On Friday, Newsom wrote a letter to the city and expressed disappointment with their decision to reject allocating a single dollar.
But Turlock Mayor Amy Bublak said she decided against approving the letter and dollar until the shelter took accountability.
She said she had received numerous complaints regarding homeless loitering during the daytime. We Care is closed during the day and reopens shortly before 6 p.m.
"There's potential, but probably not. Many are transient by nature. Many aren't from here, so they'll go somewhere else," said Bublak.
"The city refused to put a dollar in to receive hundreds of thousands of dollars in state funding for a shelter," Newsom said. "Those dollars should come back in this case, they don't deserve those dollars. I wonder if local representatives deserve to lead the people of those communities."
We Care told CBS News Sacramento that they've informed members of their program they will likely close by the end of June if nothing changes.
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