County Hid Unfavorable Audit Results Until After Vote… “Fragmented Oversight System and Unreliable Financial Records”
LOS ANGELES – A new 0.25% sales tax to address Los Angeles County’s homelessness crisis took effect Tuesday, raising the county’s base sales tax rate from 9.5% to 9.75%. This new tax has drawn significant attention after a federal judge last week highlighted that tens of millions of dollars in public funds intended for homeless services have been improperly managed.
‘Measure A’ Converted to Permanent Tax
The new tax, Measure A, replaces the existing half-cent tax, Measure H, which was approved in 2017 and was set to expire in 2027. Unlike the previous tax, Measure A will remain in effect permanently unless voters repeal it.
Approximately 60% of Measure A revenue is allocated to homeless services, with 35.75% assigned to the newly established L.A. County Affordable Housing Solutions Agency. The remaining 15% will be distributed to cities based on annual homeless population counts.
Hidden Audit Results and Judge’s Strong Criticism
During a hearing last week related to the L.A. Alliance for Human Rights lawsuit, Federal Judge David O. Carter revealed that the Los Angeles Homeless Services Authority (LAHSA) had been audited multiple times over the past 18 years, exposing tens of millions of dollars in improper management. The judge particularly criticized the county for not disclosing the audit results completed last summer to voters until after the election.
This audit, completed in summer 2024, was only made public in November of the same year, after Measure A had passed. Expressing serious concerns about the timing of the audit’s release, the judge stated, “I think the timing of the audit is problematic.”
Shocking Audit Findings: Millions Unrecovered
According to the audit report, since 2017, LAHSA has distributed cash advances totaling $50 million to subcontracted service providers without formal contracts using Measure H funds, of which only $2.5 million (5%) has been recovered. The majority of these funds remain uncollected.
Even more alarming is the finding from a separate court-ordered audit conducted by private consulting firm Alvarez & Marsal (A&M), which examined approximately $2.3 billion in homelessness-related expenditures. The audit discovered unreliable financial records, a fragmented oversight system, and a lack of clarity regarding how tax dollars were being spent.
Agency’s Response and Government Follow-Up Actions
While LAHSA has contested some of the audit findings, they have acknowledged the need for improvement and have initiated reform measures, including the implementation of a real-time service tracking system and data dashboards.
Meanwhile, the Los Angeles County Board of Supervisors approved a spending plan last week totaling $656 million, including Measure A revenue, with additional funds from remaining Measure H money and state grants. Both county and city governments are considering options to bypass LAHSA and manage funds directly.
Although preliminary results from the 2025 homeless count show a 5-10% decrease in the region’s homeless population, public skepticism about whether the financial management system has been adequately improved continues to grow as the new permanent tax takes effect.
맞춤교육 ‘홈스쿨링’ 관심↑
