A City Council committee Thursday called for reports related to proposed funding to the Los Angeles Homeless Services Authority for the 2025-26 fiscal year, as elected officials consider changing its approach to the crisis after a county decision to pull millions of dollars and staff from the agency.
LAHSA officials asked the five-member Budget and Finance Committee Thursday to meet its 15% rate for administrative staff, covering what they described as a $2.3 million gap. They say without additional funding, it would impact the agency’s core functions such as conducting the annual homeless count, managing the homeless management information system and more than 250 city contracts.
“The county’s recent decision to withdraw its Measure A funding will inevitably alter LAHSA’s structure,” said CEO Va Lecia Adams Kellum, who resigned in April but remains in her position while the agency conducts a nationwide search for a new leader. “We’re making preparations for an altered landscape and new ways of operating in the coming months, but business can be conducted as usual.”
Los Angeles Mayor Karen Bass proposed a 4.9% decrease, or a reduction of $46.8 million, in homelessness spending for the 2025-26 fiscal year. The mayor set aside $904.2 million in total funds compared to $951.1 million in the current fiscal year, according to city documents.
Of the $904.2 million, $302.7 million comes from the general fund and the remaining $601.4 million are special funds such as county, state and federal dollars, among other sources.
LAHSA would receive roughly $50.6 million, an increase compared to $42.7 million in the 2024-25 fiscal year. The proposal sets aside $4.6 million to cover administration and operations.
To cover those 250 city contracts, LAHSA officials said they need 140 staff members. These workers would manage procurements, process invoices and payments each month and monitor performance, among other duties. The city’s total administration allocation is the equivalent of 66 staff members, leaving 74 in need of funding.
In previous years, Measure H covered those remaining positions, but that has changed.
The county Board of Supervisors pulled some $300 million generated by Measure A, a voter-approved half-cent tax that replaced Measure H, a quarter-cent tax, for homelessness prevention, related services and initiatives. Additionally, the county will transfer those funds and a number of staff to a new county department of homelessness by July 1, 2026.
That decision came in response to scathing audits detailing LAHSA’s failures in financial accounting of services and a lack of transparency related to performance outcomes.
Adams Kellum said staff identified issues raised in audits and assessments long before. She also touted how the agency made significant improvements in contract administration, program oversight and shared data.
“You have my deep commitment to a thoughtful and clear transition that will prioritize continuity of care with minimal disruption,” Adams Kellum said. “The city cannot afford to lose its momentum, not when your investments are finally showing progress with two consecutive years of reductions in the city’s unsheltered homeless population.”
LAHSA officials also called for more funding to support its city homeless engagement teams, storage program and emergency response programs.
With the county’s timeline in mind, Councilman Bob Blumenfield expressed he wouldn’t want to add “anything back” until the city determines its homelessness structure.
There is a report pending that aims to reduce duplication and enhance coordination across all city-funded homeless outreach programs.
City officials are contemplating whether to establish an in-house homelessness department, bureau or continue with LAHSA. Blumenfield added, “We need to set the policy in council first, and then we can consider increases, decreases and whatnot.”
LAHSA officials noted they expect to meet with county representatives mid-May to discuss transition plans.
The Budget and Finance Committee will continue discussions on Bass’ proposed budget with revisions to come. The city must approve the budget before the start of the fiscal year, on July 1.