California's homelessness spending oversight and accountability issues

In a recent veto, Governor Gavin Newsom rejected Assembly Bill 2903, which aimed to impose stricter reporting requirements on state agencies regarding their homelessness spending. In his veto message, Newsom asserted that similar accountability measures were already in place, referencing existing laws that mandate data collection and reporting on homelessness programs. However, critics, including the bill’s author, Assemblymember Josh Hoover, argue that without more rigorous oversight, California will struggle to address its homelessness crisis effectively. The California State Auditor has highlighted that the state lacks a consistent system for evaluating the outcomes of homelessness spending, leading to concerns about the efficacy of the programs in place.

Legislative Context

The vetoed bill had garnered nearly unanimous bipartisan support in the state legislature, indicating a collective acknowledgment of the pressing need for improved accountability in homelessness funding. Despite this support, Newsom pointed to other legislative measures, such as AB 799, which requires state agencies to compile and publicly disclose fiscal and outcome data by 2027. While some stakeholders agree that the vetoed bill may have been somewhat duplicative, they emphasize the necessity for comprehensive oversight mechanisms to ensure that funds are used effectively.

Audit Findings

A scathing state audit conducted earlier this year revealed that California had failed to monitor the $24 billion spent on homelessness initiatives over the past five years. The audit concluded that without reliable data, the state would continue to lack the information necessary to assess the costs and outcomes of its homelessness programs. This lack of oversight has led to significant increases in the homeless population, with estimates indicating that over 181,000 individuals are currently homeless in California, marking a nearly 60% increase over the last decade.

Political Implications

The political landscape surrounding homelessness in California is complex, with Newsom facing criticism from both sides of the aisle. While some Democratic lawmakers express support for increased accountability, they are also cautious about challenging the governor due to fears of political retribution. This dynamic has contributed to a lack of momentum for overriding Newsom’s veto, despite the overwhelming legislative support for the accountability measures proposed in the vetoed bill.