LA’s FY2024 Homelessness Budget: Over $500 Million Unspent Amid Ongoing Crisis
- The City of Los Angeles has only spent $599 million of its $1.3 billion budget for homelessness for Fiscal Year 2024, according to City Controller Kenneth Mejia.
- Mejia noted that homelessness remains a critical issue, with only a 2% decrease in the number of people experiencing homelessness from the previous year.
- Mejia’s office is the first to track homelessness spending systematically.
Inefficiencies Lead to Underspending in LA’s Homelessness Budget
The City of Los Angeles has only spent $599 million of its $1.3 billion budget for homelessness for Fiscal Year 2024, according to City Controller Kenneth Mejia. This leaves at least $513 million unspent.
Mejia noted that homelessness remains a critical issue, with only a 2% decrease in the number of people experiencing homelessness from the previous year. He stated, “The City had a record budget but failed to spend over half a billion dollars. Imagine how much bigger the drop could have been if the City fully utilized its budget.”
Mejia’s office is the first to track homelessness spending systematically. This includes coding budgets to match with actual expenses and verifying data with city departments.
Several inefficiencies contribute to the unspent funds. These include:
- A lack of staff
- Siloed efforts
- Outdated processes
- Obsolete technology
Specific unspent funds include:
- $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 other state, federal, and local grants
- $16 million for opioid and substance use treatment beds
However, some funds have been utilized or committed, 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 state and federal grants
The budget for Fiscal Year 2025 will drop by 25% to $961 million, a reduction of $317 million. This change results from decreased funding for programs like Proposition HHH and Inside Safe.
Typically, unspent general funds revert to the Reserve Fund, while unspent special funds carry over to the next year. Mejia emphasized the need for the city to fully use its resources to impact the homelessness crisis more effectively.