According to a report presented on Wednesday, the spending for Mayor Karen Bass’ Inside Safe program, aimed at dismantling homeless encampments and providing shelter, has now reached nearly $40 million.
The funds have been allocated towards various expenses such as renting hotel rooms, keeping the L.A. Grand Hotel open for another year, paying service providers, compensating LAPD officers for overtime, and reimbursing the city’s Department of Transportation. The report provides a detailed breakdown of expenses up until June 30.
In January, the City Council unanimously voted to create a fund and transfer $50 million to it. However, the city has yet to use the initial $50 million due to the county’s spending efforts.
A concern was raised by Councilwoman Nithya Raman, Chair of the Housing and Homelessness Committee, regarding the increased spending on service providers when the city had already invested in case management services.
In response, Mercedes Marquez, Bass’ Chief of Housing and Homelessness Solutions, explained that approximately $14 million was spent on service provider contracts to enhance services not previously available under Inside Safe, such as three meals a day and round-the-clock monitoring. Additionally, around $7 million was allocated for LAPD overtime and LADOT expenses to ensure safety and cleanliness during the program’s operations.
Marquez also highlighted the issue of underspending, stating that the county permits contracts for individuals until they enter a motel, at which point a different contract takes effect.
The city anticipates having a clearer understanding of its expenditures soon, as the fiscal year has ended, and accounting processes are underway on the county’s side. In response to a request from Councilman Bob Blumenfield, the committee member and chair of the council’s budget committee, for more detailed information, Marquez agreed to provide a list of contractors, contracted providers, encampment areas, and districts where work has been conducted, ensuring accountability for taxpayers.
While committee members appreciated the overview of Inside Safe spending, they expressed frustration with a lack of specific details. Councilman John Lee emphasized his longstanding frustration with the Los Angeles Homeless Services Authority (LAHSA), as they have not provided reports in a timely manner despite being funded by the city.
Marquez acknowledged that there have been improvements with new leadership at LAHSA, but the accuracy of the data fluctuates due to the constantly changing circumstances of unhoused individuals within the system.
The committee expects to receive the next report on the Homelessness Emergency Account in August and hopes for a more comprehensive and informative document that addresses emerging questions.
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