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In California, Governor Gavin Newsom’s council on homelessness has blamed local governments for a state audit report that found the state has failed to track how billions of dollars have been spent trying to tackle the homelessness crisis. In response to this, the Los Angeles City Council has agreed to pay an outside firm $2.2 million to audit its own programs. This decision comes after a federal judge, U.S. District Judge David O. Carter, requested an independent audit of Los Angeles’ homelessness programs due to the city’s failure to significantly curb the problem in recent years. Additionally, City and county officials are demanding that their lead homeless service provider release data about their efforts.

The $2.2 million agreement for the audit is roughly half of what the independent firm originally requested, though it’s unclear why the amount was reduced. This audit follows a lawsuit filed by the LA Alliance for Human Rights, which claimed that the city had not honored its 2020 settlement agreement to build thousands of shelters and clear out homeless encampments. The coalition urged Judge Carter to sanction the city and pay up to $6.4 million for not meeting the terms of the settlement. The audit is expected to provide insights into the spending and outcomes of homeless services in Los Angeles, with implications for how local, state, and federal dollars are being used to address homelessness in the city.

According to the Los Angeles Homeless Services Authority (LAHSA), there were more than 75,500 homeless individuals in 2023, a 9% increase countywide, with about 46,200 considered homeless in the city, a 10% increase from the previous year. The city council has also introduced a motion to develop an evaluation framework for LAHSA to assess its contracts, expenditures, and other data points. LAHSA’s 2022-2023 budget totaled around $845.4 million, with the majority going to service providers and housing programs. Despite the substantial investment of taxpayer dollars, the homeless population in California continues to rise, with about 181,000 people considered homeless in the state’s last count, many of whom are struggling with drug addiction or mental health issues.

The audit’s findings highlight the progress made at the state level to address homelessness, including a statewide assessment of homelessness programs. However, local governments are primarily responsible for implementing these programs and collecting data on outcomes that the state can use to evaluate program effectiveness. The California Interagency Council on Homelessness has emphasized the need for local governments to track and report on the spending of taxpayer dollars allocated to address homelessness. The audit is expected to provide critical insights into how funds are being used and the outcomes of homeless services in Los Angeles, ultimately aiming to address the worsening homelessness crisis in the city.

With five unhoused individuals dying on the streets of Los Angeles every day, there is a critical need to understand how taxpayer dollars allocated for homeless services are being utilized and whether they are effectively addressing the issue. The audit of the city’s homelessness programs is a response to the growing crisis and aims to hold local governments accountable for their efforts in tackling homelessness. By evaluating the spending and outcomes of homeless services, the audit will provide a clearer picture of the challenges faced and the strategies needed to effectively address the homelessness crisis in Los Angeles and throughout California.

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