LA County approves homeless spending plan that reflects nearly $200M in program cuts

The Los Angeles County Board of Supervisors voted unanimously Tuesday to approve an $843 million homelessness spending plan that includes nearly $200 million in reductions to programs and services in the next budget year.

Among those programs is Pathway Home, which helps move people from encampments into temporary housing. The county reduced funding for that program by $92 million, which will shrink it from 20 project sites to seven, officials said.

Supervisors also approved $105 million in reductions to other programs, including large cuts to street outreach teams, homelessness prevention programs and other supportive services.

County officials said they had to reduce spending in order to cover the rising costs of operating shelter beds and the loss of tens of millions in temporary state and federal funding, including some COVID-19 relief dollars.

“With federal neglect and state cuts, we have to do more with less,” Supervisor Lindsey Horvath told LAist. “And we will.”

The county’s new Department of Homeless Services and Housing has been warning about the looming shortfall since July. County officials solicited input on how to fill an initial $303 million gap.

Since then, the department adjusted the county’s homelessness spending plan, after finding some one-time state grants and cost-saving measures.

The budget year starts July 1.

Some funding restored

Last month, local homeless service providers urged county officials to restore all of the more than $200 million in proposed reductions to programs and services. Some supervisors raised concerns about specific cuts.

Since then, new revenue projections show the county stands to bring in $21 million more through Measure A than originally anticipated.

Measure A is a sales tax ordinance, approved by L.A. County voters in 2024, that funds homeless services and affordable housing initiatives. It is expected to generate about $1 billion annually, but exact revenues fluctuate with consumer spending.

The county’s slightly rosier revenue projections allowed the homeless department to roll back a fraction of the proposed reductions.

“It’s not a windfall and it doesn’t solve every challenge, but it does give us the ability to restore important programs that were on the chopping block,” Supervisor Janice Hahn said.

The board voted to use much of that $21 million to restore funding for two dozen full-time outreach workers and about 100 shelter beds that were previously on the chopping block.

The plan approved Tuesday also calls for $5 million in Measure A revenue to partially restore funding for interim housing in Long Beach, Pasadena and Glendale. It restored more than $1 million to operate family solution centers — hubs to connect unhoused families with services — and about $500,000 for a program that helps military veterans access government benefits.

Supervisor Holly Mitchell said she wishes Pathway Home funding could be maintained. She said it’s been crucial for helping people living in RV encampments in her district, which spans from Koreatown to much of the South Bay.

"These restorations don't expand encampment resolution operations,” Mitchell said Tuesday. “The services with the greatest impact in the Second District remain reduced, and the current plan does not replace what was cut."

County homelessness officials told supervisors the 100 shelter beds they saved will be prioritized for people living in encampments and will help make up for cuts to Pathway Home.

"The reduction to Pathway Home is not a reduced commitment to encampment resolution,” L.A. County Department of Homeless Services and Housing director Sarah Mahin said Tuesday. “It’s a recognition that it was built on one-time funding and we need to expand strategies to include more cost-effective resolution solutions."

New oversight push

The supervisors also voted 5-0 Tuesday to approve a new motion focused on accountability in homeless service contracting. The motion by Horvath and Kathryn Barger directs the homelessness department to work with the county auditor-controller to create strict oversight procedures for contracts, including random site visits, performance monitoring and provisions for termination.

They said the goal is to prevent the mismanagement that has plagued the Los Angeles Homeless Services Authority, and the fraud that has resulted in recent arrests. Last month, federal authorities arrested Alex Soofer, director of a nonprofit called Abundant Blessings, on suspicion of embezzling tens of millions in dollars meant to serve unhoused Angelenos. Soofer pleaded not guilty to the charges this week.

"Public dollars intended to address homelessness have gone unaccounted for under LAHSA," Horvath said. “That is unacceptable and it ends now with the county.”

Last year, the board voted to divert more than $300 million in county homelessness dollars away from LAHSA and administer the funds itself with a new homelessness department.

“As the department launches, every contract, every dollar, and every outcome must withstand scrutiny,” Horvath told LAist in a statement. “We don’t have resources to waste or time to lose in addressing the homelessness crisis.”

Barger described instances of fraud within the homeless services sector as “moral failures” that cannot be tolerated.

“They represent theft from the most vulnerable people in our community,” she said.

She also argued that ethical service providers “should not have their reputations destroyed by the criminal actions of a few bad actors.”

Barger told fellow supervisors at Tuesday’s meeting it’s their responsibility to monitor how county homelessness dollars are being spent — and to defund programs that aren’t generating results.

“Setting the budget is the easy part,” Barger said. “We have to see results. And if we don’t, we have to have a debate at this board: is that the best use of these resources?”

The department must report back to the board in 60 days with their full plan for monitoring contractors and preventing fraud and misuse of public funds.

Auditor-Controller Oscar Valdez told supervisors his office would submit a plan to county homelessness officials Tuesday.