The situation is arguably worse in Seattle. We have over 11000 homeless with a smaller total population. We also had a similar story in the news today -> https://www.kiro7.com/news/local/letter-to-seattle-conventio...
Then Reagan happened.
Then Reagan happened.
No, the ACLU happened. Because of their efforts, it's much more difficult today to involuntarily commit someone to an institution who thinks that aliens are controlling their digestive system.
That's not to say that state governments weren't happy to empty out and shut down their mental institutions, however.