California Spent $24 Billion on Homelessness, More Money, More Problems

California has given $24 billion to housing programs for the homeless over the last five years. Things are even worse now.

This came as the homeless population in the state rose by nearly 20% since 2019 to more than 181,000. The highest share of this group is also in California, specifically of “unsheltered” homeless—or people residing outside in makeshift encampments or cars, rather than indoor shelters.

Now, to affirm what many Californians long have suspected, the state auditor issued a report that expresses doubt about the efficacy of all that spending. For instance, it found in its audit that the California Interagency Council on Homelessness has not been able to keep its financial tracking current since 2021.

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“in the” state data system, according to the auditor’s office, the council “neither ensured the accuracy of the information nor used this information in evaluating the success of homelessness programs.

The report casts doubt on whether California can rein in one of its most intractable problems with just more spending. An increase in sales taxes, along with the sale of bonds, has helped the state and localities raise billions of dollars to finance homelessness programs.

California Spent $24 Billion on Homelessness
California Spent $24 Billion on Homelessness

The last one was by Governor Gavin Newsom in March, who won voter approval by a razor-thin margin for a more than $6 billion bond initiative to battle drug addiction and mental illness and build more affordable housing.

The closeness of that vote, at least to many observers, suggested growing public frustration over the state’s expensive efforts to redress the crisis and mixed results.

The audit figured that of the five programs taken in detail, only two were probably effective. One converts existing buildings, including motels, into homes, while another provides financial housing assistance to families at risk. Auditors could not determine three others.

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State Auditor Grant Parks recommended that the California Legislature should require government agencies to report the cost and results of spending on homelessness so as to identify which programs are worth funding and replicating. In a written response to the report, the Interagency Homelessness Council concurred with the recommendations and outlined steps that would be taken to implement them.

Russ Heimerich is a spokesman for the Business, Consumer Services and Housing Agency and oversees the council. He said the council is working with local jurisdictions to make data collection improved, and this would enable it to better measure outcomes.

“The council continues to enhance its ability to ensure taxpayers’ dollars are wisely and effectively used, including providing technical support to local jurisdictions on better alignment of data standards and reporting,” he said.

Learn how California’s $24 billion battle against homelessness faces challenges and uncertainty. Get informed, stay aware, and join the conversation on SilentNews.org. Your awareness makes a difference.

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