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Nearly half of Los Angeles Mayor Karen Bass’ record $1.3 billion homelessness budget for the 2023-24 fiscal year remains unspent, a City Administration analysis has found.
Administrator Kenneth Mejia found that only $599 million was actually spent. An additional $195 million was incurred, leaving at least $513 million unspent.
Mejia blamed a “slow and inefficient approach” for the spending shortfall, citing factors including a lack of staff and resources, programs that span multiple city departments and council offices, outdated technology and a lack of real-time data. listed as.
Mejia said the city only spent or paid for about 30% of the $262 million in grants from the state’s Homeless Housing, Outreach and Prevention Program to reduce bus Inside Safe encampments. It was 58% of the program’s $267 million budget.
The contribution will probably be spent eventually, but not necessarily.
The city also spent less than half of the $150 million it received from Measure ULA, the so-called “mansion tax” on real estate sales of $5.15 million or more, and paid more than any other federal, state, or federal tax. , they could not even spend the $30 million from the government. $16 million for local grants and substance use disorder treatment beds.
The city administration questioned some of Mejia’s findings. The report said the $100 million in “unused” homeless housing, support and prevention funds includes multi-year grants that are not intended to be spent in a single year.
Inside Safe’s analysis of unspent funds did not include more than $42 million that was used to facilitate the purchase of the Mayfair Hotel to get people off the streets and later reimbursed to Inside Safe. .
Ms Bass’ spokesperson issued a statement defending her spending record.
“While administrators say too much money is being spent one day and not enough the next, Mayor Bass is implementing a smart, comprehensive strategy. “We have reduced overall homelessness for the first time in years, reducing the number of homeless people on our streets by 10%,” said Deputy Mayor for Communications Zach Seidl.
“Even before taking office, she warned that the city’s outdated systems were getting in the way, but as some pondered decades of reporting on the problem, she was at the forefront of tackling the problem head-on. I have been working on it.”
Mejia acknowledged that overall homelessness decreased by 2% in 2024, but said the city missed an opportunity to do more.
“Imagine how much larger that reduction would have been if the city had maximized its homelessness budget,” he says.
The report shows the city is moderately overspending on several categories, including family resource center expansion, short-term housing assistance and rapid response vehicles.
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