Los Angeles County Seeks More Funding Amid Scrutiny

After investing billions in a struggling homelessness program marked by audits and unclear financial practices, Los Angeles County officials are now asking taxpayers for additional funding.

This week, county supervisors voted to lift the sales tax by half a cent, which would bring the total sales tax rate to 10.25%, the highest in the country. If this measure passes, it could raise costs for nearly everything, from school supplies to electronics and vehicles.

The proposal follows closely on the heels of Measure A, a permanent homeless sales tax that voters approved just two years ago. This measure was anticipated to generate over $1 billion annually for housing and mental health services. However, the county’s financial system has come under fire in federal court for poorly tracking billions in collected funds.

U.S. District Judge David O. Carter has issued strong criticism of the county’s financial practices, particularly highlighting the results of audits spanning nearly 20 years. These audits have found issues such as inadequate oversight and incomplete financial records, raising concerns about the actual allocation of homeless assistance funds.

Auditors reported that the agency struggled to accurately track spending or associate expenditures with the services provided, complicating efforts to evaluate the effectiveness of various programs.

Additionally, findings showed that over $50 million in previous Measure H funding was given to service providers without formal agreements for repayment, with only a small fraction being recuperated.

A recent mandated audit of more than $2.3 billion in homelessness spending revealed significant issues like unreliable data reporting and records, preventing auditors from ascertaining how funds were utilized or whether initiatives were successful.

In light of these concerns, county officials assert that reforms and a new tracking system are forthcoming. The new tax is framed as a measure to counter potential federal healthcare spending cuts that could impact Medi-Cal.

Supervisor Kathryn Berger cast the only dissenting vote, expressing alarm about the county’s credibility crisis. “We are often not dependable when it comes to our commitments,” she remarked.

If the measure is approved, it could mean an increase of about 50 cents on every $100 spent, which, while seemingly small, could accumulate significantly on larger purchases.