Los Angeles Homeless Budget Underspent by Millions

A recent audit of the Los Angeles Homeless Services Authority (LAHSA) revealed significant inefficiencies in managing its nearly $1 billion budget, with millions in cash advances unreturned and a lack of performance metrics. In response, County Supervisor Lindsey Horvath announced plans to establish a new county agency for better accountability and transparency in addressing homelessness. Simultaneously, City Controller Kenneth Mejia reported that nearly half of Mayor Karen Bass' $1.3 billion homelessness budget for fiscal 2023-24 went unspent due to inefficiencies, outdated processes, and staffing shortages, leaving over $500 million unutilized. Mejia emphasized that the city’s homelessness crisis continues despite substantial funding, attributing the underspending to operational issues rather than financial constraints. Despite these challenges, LAHSA’s new CEO, Va Lecia Adams Kellum, is implementing changes to improve contract management and performance tracking. The city’s homelessness budget for the upcoming fiscal year has been reduced by 25%, reflecting the ongoing struggles to efficiently allocate resources.