LA Controller Kenneth Meija: City Left $513 Million of Homelessness Budget Unspent

Inefficiencies Blamed for Underspending Despite Record Allocation in FY2024 

The City of Los Angeles hasn’t spent over half of its record $1.3 billion homelessness budget for Fiscal Year 2024, according to findings announced by City Controller Kenneth Mejia. Of the total budget, $599 million was spent, and $195 million was encumbered, leaving at least $513 million unspent.

“Homelessness is still at a historic high,” Mejia said. “The City had a record high homelessness budget at its fingertips but failed to spend over half a billion dollars of it. The number of people experiencing homelessness dropped only 2% from the previous year. Imagine how much bigger the drop could have been if the City fully utilized its budget.”

Mejia’s office is the first in the City’s history to track homelessness spending formally. The Controller’s team implemented accounting codes to match budgets with actual expenditures and verified the data with city departments.

Mejia attributed the underspending to inefficiencies, including a lack of staff, siloed efforts, outdated processes, and obsolete technology. Specific unspent or unencumbered funds included:

  • $185 million from state grants for homeless housing programs
  • $112 million for the Inside Safe program
  • $80 million from Measure ULA for affordable housing, rent assistance, and tenant protections
  • $30 million from other state, federal, and local grants
  • $16 million for opioid and substance use treatment beds

Despite the underspending, several allocations were utilized or committed, including:

  • $262 million from Proposition HHH for permanent supportive housing
  • $126 million for Inside Safe
  • $70 million from Measure ULA
  • $50 million for Homeless Housing, Assistance, and Prevention Programs
  • $28 million from community block grants
  • $22 million from other state/federal and local grants

The homelessness budget for Fiscal Year 2025 has decreased by 25% to $961 million, a reduction of $317 million compared to the previous year. The drop is largely due to reduced funding for programs like Proposition HHH, Inside Safe, and community block development grants.

Unspent general funds typically revert to the Reserve Fund unless reappropriated, while unspent special funds roll over into subsequent years. Mejia urged the city to fully utilize its resources to make a greater impact on the homelessness crisis.

in News
Related Posts

Man Arrested in Brentwood for Impersonating Firefighter During Palisades Fire

July 18, 2025

July 18, 2025

The suspect faces at least 28 criminal counts—including 23 felonies—spanning incidents from 2023 to May 2025 Federal and local law...

West Coast Premiere of ‘The Opposite of Love’ Opens at Hudson Backstage Theatre

July 18, 2025

July 18, 2025

Produced by Neil Gooding Productions, behind shows like Back to the Future: The Musical, the play runs Thursdays through Saturdays at...

Study Highlights Economic Impact of Cap-and-Trade Extension in Los Angeles

July 18, 2025

July 18, 2025

Governor Gavin Newsom and legislative leaders are pushing to reauthorize the program this year, citing its role in generating 287,000...

Controversial Rebuilding Authority Delayed by Sen. Allen

July 17, 2025

July 17, 2025

The pause follows concerns raised weeks ago when the proposal sought to create an agency run by political appointees to...

Mayor Bass Hails National Guard Withdrawal as Victory for Unity

July 17, 2025

July 17, 2025

The Pentagon’s decision to reduce the troop presence follows weeks of legal challenges and public demonstrations Mayor Karen Bass celebrated...

DUI Checkpoints to be Conducted Across LA This Weekend

July 16, 2025

July 16, 2025

The LAPD selects checkpoint sites based on data indicating high incidents of impaired driving-related crashes and arrests The Los Angeles...

Fire Survivors Urged to Shape Rebuilding Efforts with Digital Feedback Platform

July 16, 2025

July 16, 2025

The initiative, launched in February, marks California’s first large-scale use of a dedicated digital tool to gather wildfire survivor feedback...

(Video) Italian Eatery Finds New West LA Home after Wildfire Displacement

July 16, 2025

July 16, 2025

Cinque Terra, a longstanding Palisadian establishment, has brought its Northern Italian cuisine to Rose Avenue Italian Eatery Finds New West...

Dodgers to Host Back to School Bash for Fire-Affected Families

July 16, 2025

July 16, 2025

The free event will offer free groceries, school supplies, outfits, haircuts, medical screenings, and carnival rides The Los Angeles Dodgers...

Hundreds of Red-Legged Frog Tadpoles Released in Santa Monica Mountains

July 16, 2025

July 16, 2025

Once widespread in California, red-legged frogs vanished from the Santa Monica Mountains by the 1970s Nearly 600 California red-legged frog...

LA Sees Second Straight Year of Homelessness Decline, Leaders Celebrate Progress

July 16, 2025

July 16, 2025

The survey, designed by the University of Southern California, reported a 17.5% drop—the largest two-year decrease on record The Los...

County Launches AI Pilot to Speed Rebuilding After Fires

July 15, 2025

July 15, 2025

The pilot targets early adopters whose homes, located in R-1 residential zones, were damaged by the wildfires Los Angeles County...

Santa Monica Man Arrested for Allegedly Exporting Electronics to Iran

July 15, 2025

July 15, 2025

Ostovari, identified as the CEO of a Tehran-based engineering firm, allegedly orchestrated the scheme since 2018  A 66-year-old Santa Monica...

California Hits Two-Thirds Clean Energy Milestone

July 15, 2025

July 15, 2025

This year, clean energy has powered the state for an average of seven hours daily, with over 90% of days...

ICE Raids Disrupt Labor in Fire Recovery Efforts: REPORT

July 14, 2025

July 14, 2025

Immigrants, comprising about 75% of Los Angeles County’s construction workforce with nearly half undocumented, per a Bay Area Council analysis,...