New analysis by LA city controller says at least $513M meant to help the homeless went unspent 

Los Angeles city officials underspent on addressing homelessness by over a half billion dollars in the most recent fiscal year, according to a new analysis by the L.A. City Controller’s Office.

About the findings

In a news release issued Thursday, the office said it found that the city did not spend at least $513 million in public funds that were budgeted to help with the city’s homeless crisis during fiscal year 2024, out of the total $1.3 billion budgeted.

• The office attributed its findings of unspent funds to “a sluggish, inefficient [city] approach that is incompatible with timely spending.” It said a lack of staff and old technology contributed to the spending problems.
• The office tracks homelessness spending by implementing accounting codes and matching the budget with actual spending with confirmations by departments, according to the news release. 
• The release states that L.A. City Controller Kenneth Mejia’s office is the first-ever in the city to formally track homelessness spending, saying “it was never previously tracked at a methodical, organized level.”
• You can view a full breakdown of what the L.A. City Controller’s Office says was unspent here — see the chart at the bottom of the page.

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Key quote

“The City had a record high homelessness budget at its fingertips but failed to spend over half a billion dollars of it,” Mejia said.

Some context

The city of L.A. has faced scrutiny in recent months for its lack of transparency on how taxpayer dollars have been spent to address homelessness. Auditors overseen by U.S. District Judge David O. Carter have found that much of L.A.’s homelessness spending appears to not be properly accounted for. The auditors, who are from a private firm and being funded by the city, also say they have been denied access to records they need for their review.

Carter has ordered officials from the city, county and Los Angeles Homeless Services Authority to come to his courtroom next Thursday to justify their delays. Just over 29,000 people within city limits live without shelter, according to the latest count.

Response to the findings

In a statement, Zach Seidl, spokesperson for L.A. Mayor Karen Bass, responded to the findings Thursday evening.

"While the Controller is saying there’s too much money being spent one day, and not enough being spent the next, Mayor Bass has been executing a prudent and comprehensive strategy that brought down homelessness overall for the first time in years," he wrote. "Even before taking office, she warned that the city’s antiquated systems would get in the way, but while others ponder reports about the decades- long problems, she has been leading the charge to fix the issues head on. If others want to join in, we welcome that."

Bob Blumenfield, City Council budget chair, did not immediately respond to a request for comment from LAist through a spokesperson.

Bass declared a state of emergency on homelessness her first day in office in December 2022 and has directed an unprecedented level of public money to try and bring more people indoors. She’s said the issue is her top priority.