I wonder if wrapping the garage just doesn't pencil out very well. It would be primarily a garage so the housing component would be pretty small I'd imagine. Maybe this could have been addressed by having stricter design oversight from the city? A requirement that new garages must have a housing component.
If the state wants to get serious about housing in general I think there are plenty of un and under-utilized lots that the state already controls or could acquire easily, that a funded housing authority could use to have contractors bid on building dense, transit oriented housing, which the state could rent out on a non-profit or subsidized basis and recoup some of the costs. Even charge market rate rents for units, just get more supply built. Of course I don't want to see enormous public sums spent building apartments in pricey Mountain View or West Side LA, but would rather have transit investment to get people to those job centers. I do value mixed income communities though so am mindful of that.
I'm an economics nerd and our monetary policy has been really fascinating this past 12 or so years. You would think that inflation would be roaring (and certain goods are) but generally we've been fighting deflation and the dollar has stayed quite strong. Trillions into the money supply and inflation can't crack 2%, it's upsetting conventional wisdom.
A fiscally prudent budget and policy is of course desirable, it's just achieving a consensus mix is quite hard. We certainly need to enact sweeping reforms of many of our institutions and governmental programs, some of which maybe cost more in the short run but will be beneficial for the long term security and health of the system. Tax policy, criminal justice/policing/prisons, immigration, social safety net programs, mental health policy, infrastructure spending, defense spending, education. The list is long but I believe our country is well positioned and we have the heart and drive to get it done
Sacramento's core was really fun after the last hype bubble popped in 2008 and the recession cooled things down. Now we get a chance to reset a bit, consolidate, shake things off, and shoot for that next level.