LA County proposes major cuts to homeless services for next year. What we know so far

Facing a $303 million deficit next fiscal year, L.A. County officials propose cutting roughly a third of homelessness programs and services.

The plan, which is not yet finalized, would gut prevention, outreach and supportive services to maintain temporary shelter beds and absorb rate increases previously covered by other funding sources.

The new county Department of Homeless Services and Housing is asking for feedback from the public on the plan through the first week of December.

Proposed cuts

The draft spending plan, presented during a virtual town hall on Thursday, proposes eliminating or significantly reducing funding across multiple areas next budget year, beginning in July.

" This is to prioritize funding beds and housing,” said Sarah Mahin, the new department’s director. “And these are very difficult decisions about how to prioritize our limited resources."

The proposal includes:

• Closing down 20 of 30 existing Pathway Home program sites (more than 700 beds).
• Slashing county street outreach staff by half. 
• Eliminating funding for the Los Angeles Homeless Services Authority’s housing navigation program.
• Eliminating all county homelessness prevention funding, which includes case management.
• Eliminating $12 million for programs that provide legal and employment services. 
• Eliminating funding for all four of the county’s existing Safe Parking sites. 
• Reducing funding for DPSS’ benefits advocacy by half — $5 million
• Eliminating  $10 million in direct funding to Glendale, Long Beach and Pasadena.

Why the cuts?

County officials say there's a large projected deficit in funding for homeless services next year.

The shortfall stems from three main factors.

Measure A, the county's sales tax for homeless services, has generated less revenue than anticipated as consumer spending declines.

Additionally, several sources of temporary federal and state funding have expired or are expiring, according to county officials.

Lastly, the rates the county has to pay service providers to operate shelter beds has gone up. The county is proposing to spend 46% more (an additional $86 million) to operate about 6,000 “interim housing,” or shelter beds, next year.

Officials said that new spending would not add any beds, but would maintain existing beds, at increased costs.

Community concerns

The county has been conducting community engagement sessions since July, working with the consulting firm Changewell to gather input.

During the virtual town hall Thursday, frontline workers and advocates raised alarm about the human impact of the cuts. Mahin acknowledged the concern, saying it's why the department wants the Board of Supervisors to approve the plan in January to allow adequate time to “ramp down programs.”

Mahin said the county is trying to be proactive by releasing the draft plan well before the budget deadline and soliciting extensive public comment. She said the plan also attempts to coordinate with the Los Angeles County Affordable Housing Solutions Agency, which administers separate funding for homelessness prevention and affordable housing.

Next steps 

The new county department is soliciting public comment on its website until Dec. 5. Officials will then draft a revised spending plan and present it to the L.A. County Board of Supervisors in January.

The proposed funding changes would take effect in the budget year beginning July 1.