California has invested approximately $24 billion over the past five years to address its homelessness crisis, yet a recent state audit reveals significant shortcomings in tracking the effectiveness of this substantial expenditure. Despite the massive funding, the state’s homeless population has continued to grow, with estimates reaching over 180,000 individuals in 2023, accounting for nearly 30% of the nation’s homeless population.
The audit, conducted by State Auditor Grant Parks, examined five major homelessness programs funded between 2018 and 2023. Findings indicate that only two programs—Project Homekey, which converts hotels and motels into housing, and the CalWORKs Housing Support Program, offering financial assistance to at-risk families—are likely cost-effective. The remaining three programs lacked sufficient data to assess their outcomes, highlighting a pervasive issue of inadequate tracking and accountability.
A critical concern raised by the audit is the role of the California Interagency Council on Homelessness. Established to oversee and coordinate the state’s homelessness initiatives, the council has not tracked spending or program outcomes since June 2021. Moreover, it lacks a consistent method for collecting and verifying data, leading to unreliable information and hindering the state’s ability to make informed policy decisions.
The audit also scrutinized local efforts, particularly in San Jose and San Diego. Both cities have invested hundreds of millions of dollars into homelessness programs but failed to provide clear accounting of expenditures and outcomes. For instance, in San Diego, a $1.6 million shelter contract lacked specific performance metrics, making it impossible to evaluate its success. Similarly, San Jose extended an $8 million homelessness prevention contract based on inflated performance data, according to reports.
In response to the audit, lawmakers and officials have called for enhanced transparency and accountability. Democratic State Senator Dave Cortese, who requested the audit, described the findings as indicative of a “data desert” and emphasized the need for concrete plans and measurable goals at both state and local levels. The California Interagency Council on Homelessness acknowledged the audit’s findings and expressed a commitment to implementing its recommendations where possible.
As California continues to grapple with its homelessness crisis, the audit underscores the necessity for robust data collection, clear performance metrics, and effective oversight to ensure that substantial public funds translate into meaningful outcomes for the state’s unhoused population.
