Significant LA homeless budget cuts are likely as officials criticize the Los Angeles Homeless Services Authority (LAHSA) for poor management and transparency issues.
The LA City Council unanimously approved a motion on March 25 to explore running homeless services independently. The city aims to contract directly with service providers instead of funding LAHSA.
Councilmember Monica Rodriguez (District 7), who proposed the motion, said, “There’s a point where we just have to call an end to funding the failure.”
Audits prompt LA homeless budget cuts
Recent audits exposed major transparency concerns at LAHSA. The initial audit revealed unclear accounting practices and poorly managed contracts with homeless support groups.
A second audit on March 6 found LAHSA failed to properly track billions in spending meant to address homelessness.
LA County also planning homeless budget cuts
The LA County Board of Supervisors is preparing similar LA homeless budget cuts. On March 25, the board unanimously approved a preliminary $637 million homelessness budget for fiscal year 2025-26. They will vote April 1 on redirecting about $300 million of that budget away from LAHSA.
Facing strong opposition from both City and County officials, LAHSA spokesperson Paul Rubenstein urged continued cooperation. Rubenstein stated, “It is vital that the system remains aligned under one vision to drive regional collaboration required to end homelessness. LAHSA was a central partner in that collaboration.”
Rubenstein also defended LAHSA’s policies, highlighting two consecutive years of decline in homelessness. According to the preliminary “2025 Greater Los Angeles Homeless Count” released March 20, homelessness in the City and County of LA dropped by up to 10% from the previous year. This marked the first sustained decline since 2018.
More steps needed for LA homeless budget cuts
Further council votes are necessary to finalize LA homeless budget cuts. Before that, the city must review a pending report on LAHSA’s financial management.
Some community groups said this crisis was predictable. One local advocate remarked, “It’s a waste of budget to keep funding an agency where it’s difficult to verify if taxpayers’ money is being used properly.”
BY KYEONGJUN KIM [kim.kyeongjun1@koreadaily.com]
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