Despite signs of progress in combating homelessness in the Los Angeles area, the future appears uncertain due to funding cuts and a tightening economy.
Recent data indicate that individuals experiencing homelessness in Los Angeles are transitioning to permanent supportive housing at a faster rate.
City records reveal a 14% decrease in the number of people living on the streets compared to two years ago, according to the latest counts.
However, experts warn that continued advancements may be severely hindered by a slowing economy, which has begun to impact funding for essential homeless services and programs.
John Maceri, chief executive of the nonprofit organization The People Concern, remarked, “Homelessness is an issue that responds well to strategic investment over time. And what we are seeing now is we are digressing.”
This decline in available funds follows years of increased public investment, which officials credit with contributing to the recent drops in homelessness rates.
Almost a year ago, voters approved Measure A, a tax increase aimed at providing more resources to tackle homelessness.
The approval allowed a half-cent sales tax specifically designated for this purpose, increasing from the previous quarter-cent levy.
However, much of the additional tax revenue is earmarked for constructing affordable housing—a process that typically takes time to yield real results.
At the same time, the portion of sales tax allocated to core homeless services has not significantly changed.
Consequently, while total revenue appears to increase, the funding available for critical services such as job training, outreach, and landlord incentives has actually diminished.
The combination of these factors, along with anticipated reductions in state and federal funding, has led to what nonprofit providers and officials characterize as a “perfect storm” for homelessness services.
Maceri highlighted the urgency of the situation, stating, “We are seeing a cliff,” as his organization has been forced to lay off 22 employees due to reduced funding.
A June report from the Los Angeles Homeless Services Authority (LAHSA), a collaborative city-county agency, outlined nearly $92.7 million in budget cuts for the current fiscal year.
These cuts include reductions for rental subsidies and the operation of drop-in centers that provide vital access services for homeless individuals.
Tax revenue designated for homeless services is projected to experience further declines in the coming year, even as the costs associated with providing those services continue to rise.
On Tuesday, Sarah Mahin, the director of an upcoming county homelessness department, which will inherit many responsibilities from LAHSA next year, informed the Board of Supervisors about the resulting tough decisions that lie ahead.
The department is diligently seeking effective strategies to utilize these limited resources.
The impacts of this year’s funding reductions are already being felt on the ground, with several key initiatives facing significant challenges.
A program designed to offer time-limited rental subsidies for formerly homeless individuals has been notably affected.
These subsidies, intended to assist new tenants in securing stable housing while they search for employment or transition to more permanent support, have seen a halt on new applicants due to decreased state funding.
The resulting backlog in the system has caused some individuals to remain in shelters for longer periods, leading to fewer available spaces and forcing others to stay on the streets.
Nonprofit leaders continue to monitor progress towards meeting the significant goal established under Measure A, which aims for a 30% reduction in unsheltered homelessness from 2024 to 2030.
However, many express skepticism about the likelihood of achieving this target amid ongoing funding constraints.
Ryan J. Smith, chief executive of the St. Joseph Center, stated, “The likelihood we are going to be able to house you at this moment is challenging.”
Maceri underscored the importance of not only the Measure A funds allocated for constructing new, affordable housing but also those that support immediate services aiding in the transition from the streets to permanent homes.
He warned, “We can’t keep driving huge numbers in reduction when the resources that drive that reduction are substantially diminished.”
To address these mounting challenges, there is a call for increased funding at both the state and federal levels, although such funding appears uncertain.
In recent years, the state government has implemented cuts to homelessness expenditures due to budgetary constraints, raising concerns among the public and certain elected officials about the effective use of existing funds.
At the federal level, the administration under President Donald Trump has proposed eliminating support for homeless-specific programs that emphasize housing individuals first before tackling associated issues like addiction or mental health.
This strategy, once adopted at the federal level by former President George W. Bush, is considered essential by local officials.
Moreover, anticipated reductions in funding for public housing and the general housing voucher program further complicate the situation.
Emilio Salas, executive director of the county agency overseeing public housing and vouchers, shared his concerns with the Board of Supervisors, stating, “I have been in this industry for over 35 years and have certainly encountered funding or policy shifts, but I’ve never experienced this level of impact as it relates to pressures coming from all sides of the housing ecosystem.”
image source from：latimes
