A shocking new report from the state auditor's office shockingly assesses California's costly efforts to address its homelessness crisis. It raises serious concerns about the effectiveness of the $24 billion spent over the past five years.
Despite this massive expenditure, homelessness in California has risen nearly 20% since 2019 to over 181,000 people, Bloomberg reports.
"The state must do more to assess the cost-effectiveness of its homelessness programs," said California State Auditor Grant Parks in the audit released on Tuesday.
Spending on Homelessness Programs in California Not Tracked
At the center of the auditor's criticism is the California Interagency Council on Homelessness, the key coordinating body overseeing the state's programs.
The audit found the council "has neither ensured the accuracy of the information in the state data system, nor has it used this information to evaluate homelessness programs' success."
The lack of financial tracking and outcome monitoring since 2021 means the state does not have adequate data to judge which programs are succeeding or worth replicating.
As Senator Dave Cortese bluntly stated, "The biggest conclusion that the auditors came back with is there's just inadequate transparency and data and information available."
The audit stated that only two of the five major state-funded homelessness initiatives evaluated were deemed likely cost-effective by auditors: Project Homekey, which converts existing buildings such as motels into housing, and the CalWORKs Housing Support Program, which provides financial assistance to low-income families at risk of homelessness.
The other three programs could not be properly assessed due to the state's failure to "collect sufficient data on the outcomes," according to the audit. This absence of information means "policymakers are likely to struggle to understand homelessness programs' ongoing costs and achieved outcomes."
What's Next?
According to the LA Times, the auditor recommended the state legislature require annual public reporting of all homelessness program spending and a "scorecard" system to track their success or failure.
The council agreed to implement changes, with a spokesman saying it "continues to improve its ability to ensure that taxpayer dollars are spent judiciously and effectively."
With homelessness increasing by over 50% in the state since 2013 despite ballooning expenditures, the auditor's report indicates California's current approach is failing, and radical changes may be required.
"California is facing a concerning paradox: despite an exorbitant amount of dollars spent, the state's homeless population is not slowing down," said Senator Roger Niello.
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