California's $24 Billion Homelessness Spending Accompanied by 24% Population Increase

California has invested an estimated $24 billion over the past five fiscal years (2018-19 through 2022-23) to combat its pervasive homelessness crisis, yet the state's unhoused population has grown by 24% during a similar period. This significant expenditure and the concurrent rise in homelessness have drawn scrutiny, with a recent state audit highlighting a critical lack of oversight and data to assess program effectiveness. The disparity between spending and outcomes is a growing concern for policymakers and the public.

According to the California State Auditor's report released in April 2024, the state's efforts to address homelessness, involving nine agencies and over 30 programs, have largely failed to consistently track spending and evaluate results. This "data desert," as described by State Senator Dave Cortese, makes it nearly impossible to determine which programs are effective. The audit found that for many programs, there was insufficient data to assess their cost-effectiveness, raising questions about accountability.

The homeless population in California increased from approximately 151,000 individuals in 2019 to over 187,000 in January 2024, marking a 24% increase. This trend persists despite the substantial financial commitment. As one social media user, T Wolf 🌁, observed, "> $30 billion spent in the last five years on "homelessness" in California only to see it rise 31%." While the audited figures for spending and population increase differ slightly from the tweet's estimation, the core concern about rising numbers despite investment remains consistent.

Experts point to several factors contributing to the persistent increase, including California's high cost of living and a severe shortage of affordable housing. The construction of new housing for the unhoused can be exceptionally expensive, with some projects exceeding $1 million per unit. Additionally, the audit revealed inefficiencies, such as unused shelter beds and a lack of comprehensive plans for permanent housing solutions in some cities.

The findings have intensified calls for greater transparency and accountability in how state funds are allocated and utilized. Legislators are seeking to implement measures to improve data collection and ensure that future investments are tied to measurable outcomes. The challenge remains for California to refine its strategies to effectively address the root causes of homelessness and demonstrate tangible progress.