LA’s .3B Homelessness Budget: Over 0M Unspent Amid Record Allocation

LA’s $1.3B Homelessness Budget: Over $500M Unspent Amid Record Allocation

November 19, 2024 Catherine Williams - Chief Editor News

Inefficiencies Lead to Unspent Funds in LA’s Homelessness Budget for FY2024

Los Angeles has not spent over half of its $1.3 billion budget for homelessness in Fiscal Year 2024. City Controller Kenneth Mejia reported that of this total, $599 million was spent, and $195 million was committed, leaving at least $513 million unspent.

“Homelessness remains at a historic high,” Mejia stated. He emphasized that the city could have made a bigger impact had it utilized its budget fully. The number of people experiencing homelessness decreased by only 2% from the previous year.

Mejia’s office has started tracking homelessness spending formally, using accounting codes to align budgets with actual expenditures. They verified the spending data with city departments.

The failures in spending were attributed to inefficiencies, such as:

  • A lack of staff
  • Siloed efforts
  • Outdated processes
  • Obsolete technology

The unspent funds included:

  • $185 million from state grants for homeless housing
  • $112 million for the Inside Safe program
  • $80 million from Measure ULA for affordable housing, rent assistance, and tenant protections
  • $30 million from various state, federal, and local grants
  • $16 million for opioid and substance use treatment beds

However, some funds were used, including:

  • $262 million from Proposition HHH for permanent supportive housing
  • $126 million for Inside Safe
  • $70 million from Measure ULA
  • $50 million for Homeless Housing, Assistance, and Prevention Programs
  • $28 million from community block grants
  • $22 million from other grants

For Fiscal Year 2025, the homelessness budget decreased by 25% to $961 million. This drop is mainly due to reduced funding for key programs like Proposition HHH and Inside Safe.

Unspent general funds typically revert to the Reserve Fund unless reappropriated. Unspent special funds roll over into the next fiscal year. Mejia urged the city to utilize its resources fully to address the homelessness crisis effectively.