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California Lawmakers Want to Know Why Billions in Spending isn’t Reducing Homelessness

The state has spent billions of dollars on homelessness in recent years. So why is the crisis getting worse instead of better? That’s what a bipartisan group of California legislators is trying to get to the bottom of by calling for a first-of-its kind, large-scale audit of the state’s homelessness spending.

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The state has stepped up its involvement and investment in the crisis under Gov. Gavin Newsom's leadership, allocating $20.6 billion toward housing and homelessness since 2018-19, according to the Legislative Analyst's Office. But despite the influx of cash, during that time, the number of unhoused people in the state has increased by nearly a third -- to more than 170,000 as of last year.
The state has stepped up its involvement and investment in the crisis under Gov. Gavin Newsom's leadership, allocating $20.6 billion toward housing and homelessness since 2018-19, according to the Legislative Analyst's Office. But despite the influx of cash, during that time, the number of unhoused people in the state has increased by nearly a third -- to more than 170,000 as of last year.

By Marisa Kendall
CalMatters

The state has spent billions of dollars on homelessness in recent years. So why is the crisis getting worse instead of better?

That’s what a bipartisan group of California legislators is trying to get to the bottom of by calling for a first-of-its kind, large-scale audit of the state’s homelessness spending.

The state has stepped up its involvement and investment in the crisis under Gov. Gavin Newsom’s leadership, allocating $20.6 billion toward housing and homelessness since 2018-19, according to the Legislative Analyst’s Office. But despite the influx of cash, during that time, the number of unhoused people in the state has increased by nearly a third — to more than 170,000 as of last year.

That discrepancy between what’s being spent in Sacramento and what voters see — tent cities in their neighborhoods — has many legislators clamoring for an accounting. They have instructed the state auditor to embark on a sweeping project that will analyze multiple state homelessness programs — as well as focus on homelessness spending in two cities — in an attempt to improve California’s response.

“What we’re doing is not working,” said Assemblymember Josh Hoover, a Republican from Folsom who co-authored the audit request with Democratic Sen. Dave Cortese of Santa Clara County. “And I think it’s important to get to the bottom of that and figure out where are we investing that is not getting a return on investment. And we need to stop spending money on the programs that are not working.”

The $743,400 audit, approved unanimously in the state’s legislative audit committee last month, will take about 5,000 hours of staff time and is likely to be complete by October, State Auditor Grant Parks said during the hearing. It will scrutinize the cost-effectiveness of as many as five state homelessness programs. The auditor has yet to reveal which ones, but Project Homekey — one of Newsom’s signature efforts to create homeless housing — likely will be one. And the audit will analyze spending in two California cities — San Jose and one other yet to be determined.

The analysis will focus on questions such as: How many people received services between 2020 and 2023? How much funding have San Jose and the other city received, and how has it been spent? How much of that money went toward administrative costs instead of services?

Newsom’s office wouldn’t weigh in on the pending audit, except to issue a statement: “This process is still in its early stages, and we will continue to closely monitor any future developments.”

Myles White, assistant secretary of legislation for the California Business, Consumer Services and Housing Agency, defended the state’s track record during the legislative hearing. “A lot of the progress we’ve made provides a really solid foundation for us to continue in the days ahead,” he said.

San Jose officials said they have used state funds effectively and efficiently, and have been transparent in their work. Local officials rallied at the state Capitol last week, demanding that the state give them an ongoing $3 billion a year to address homelessness.

Cortese began pushing for the audit after touring a massive homeless encampment on vacant land near San Jose’s airport. One of the largest in California, the camp was home to more than 400 people during the pandemic. What he saw shocked and appalled him: “Rodents running around your feet. Massive piles of trash. Tons of broken RVs and abandoned cars. Cars turned upside down with people living inside.”

When Cortese brought up the idea of a state audit, he says local officials told him while they had spent local money, they hadn’t used state funding to improve conditions or offer services at that encampment.

“Which to me just really begged the question: ‘What’s going on?'” Cortese said.

That camp has since been cleared; the Federal Aviation Administration had threatened to withhold airport funds from the city because the camp extended into flight paths. But the city couldn’t move everyone into housing or shelter, and some people have moved to another lot just across the street.

Past attempts at accountability

Cortese’s audit isn’t the first time California’s homelessness response has come under scrutiny. Earlier this year, the Interagency Council on Homelessness found the state spent nearly $10 billion on homelessness between 2018 and 2021 and served more than 571,000 people. But despite that effort, most of those people still didn’t get a roof over their heads.

And in 2021, a state audit of five local governments found that they did not always comply with federal regulations or follow best practices when responding to homelessness.

The new audit will be an “entirely different animal,” Cortese said, as it will go deeper into the state’s spending. Legislators hope it also will make specific recommendations as to how ineffective programs could be improved or even cut — something the Interagency Council’s report didn’t do.

The heightened scrutiny comes as Newsom has both ramped up spending and rolled out a series of new homelessness programs since the COVID-19 pandemic began. Those include Project Roomkey, which temporarily put elderly and medically compromised unhoused people up in hotels; Homekey, which gives cities and counties money to turn some of those hotels (and other buildings) into longer-term homeless housing; and the Encampment Resolution Grant program, which gives cities and counties money to clear homeless encampments and move occupants into housing and shelters.

It’s no surprise that Republicans would continue their critique of the liberal governor’s spending. But the recent involvement of Cortese and other Democrats signals the politics have shifted.

For example, Assemblymember Luz Rivas, a Democrat from the San Fernando Valley, is pushing her own accountability bill. Assembly Bill 799 would force the state to set specific goals for reducing homelessness, while also allowing funding to be reallocated away from local agencies that fail to meet their goals.

“We get asked by our constituents,” she said. “They ask ‘Where is this funding going to? Is it really being used effectively?'”

Even Newsom himself has advocated for more accountability. He recently began requiring that cities and counties submit “homeless action plans” before receiving state funding, and he briefly held $1 billion hostage after determining the plans they drafted weren’t ambitious enough.

During last month’s hearing, several legislators advocated for the auditor to choose cities in their own districts. Some made pitches for Los Angeles and Sacramento, while others pushed for smaller cities.

Gail Osmer, a San Jose advocate who led Cortese on the encampment tour that inspired the audit, spoke alongside the senator at the hearing. In an interview, she said she hopes the audit’s findings will be a wake-up call for her city.

Osmer has been critical of how the city cleared the airport encampment. Camp residents were promised services, such as free repairs for their cars and RVs, that many people never received, she said.

“People are not held accountable,” Osmer said. “Where’s the money going?”

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Activism

Oakland Post: Week of June 12-18, 2024

The printed Weekly Edition of the Oakland Post: Week of June 12-18, 2024

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Bay Area

Sen. Wiener, Mayor Breed Announce Bill to Shut Down Fencing of Stolen Goods

On June 3, San Francisco Mayor London N. Breed joined State Sen. Scott Wiener (D-San Francisco) to announce a bill aiming to combat fencing, the sale of stolen goods. Authored by Wiener and sponsored by Breed, Senate Bill (SB) 925 would allow San Francisco to create permitting requirements to regulate the sale of items commonly obtained through retail theft and impose criminal penalties for those who engage in this practice.

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By Oakland Post Staff

On June 3, San Francisco Mayor London N. Breed joined State Sen. Scott Wiener (D-San Francisco) to announce a bill aiming to combat fencing, the sale of stolen goods.

Authored by Wiener and sponsored by Breed, Senate Bill (SB) 925 would allow San Francisco to create permitting requirements to regulate the sale of items commonly obtained through retail theft and impose criminal penalties for those who engage in this practice.

“The sale of stolen items in San Francisco has created unsafe street conditions and health and safety hazards that have negatively impacted residents, businesses, City workers, and legitimate street vendors,” states a statement released by the mayor’s office.

San Francisco Police Department (SFPD) Chief Bill Scott praised the effort.

“I want to thank Mayor Breed and Senator Wiener for identifying new ways to combat the illegal fencing of stolen goods. This will help our hard-working officers continue to make progress in cracking down on retail theft,” said Scott.

Under the legislation, San Francisco can require vendors to obtain a permit to be able to sell items deemed as frequently stolen by asking for documentation that the merchandise was obtained legitimately, such as showing proof of purchase.

The legislation also establishes that those in violation would receive an infraction for the first two offenses and an infraction or a misdemeanor and up to six months in county jail for the third offense.

Under this bill, people can still:

  • Sell goods with a permit
  • Sell prepared food with a permit
  • Sell goods on the list of frequently stolen items with a permit and proof of purchase.

“In San Francisco we are working hard to make our streets safer and more welcoming for all. SB 925 would greatly help us get a handle on the sale of stolen goods, all while taking a narrow approach that specifically targets bad actors,” said Breed.

Wiener says the cultural richness of San Francisco and the livelihoods of legitimate street vendors are threatened when bad actors are allowed to openly sell stolen goods on the city’s streets.

“With this bill we’re taking a balanced approach that respects the critical role street vending plays in our community while holding fencing operations accountable for the disruption they cause. It’s critical that everyone feel safe on our streets, including street vendors and neighborhood residents,” said Wiener.

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City Government

SUSD’s Dept. of Public Safety Achieves Compliance with State DOJ’s Five-Year Stipulated Judgment

California Attorney General Rob Bonta announced that the California Department of Justice (DOJ) has ended monitoring of the Stockton Unified School District (District) and its Department of Public Safety (Department), concluding the five-year term of the stipulated judgment that addressed system-wide violations of the civil and constitutional rights of Black and Latino students and students with disabilities.

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California Attorney General Rob Bonta. Official photo, SUSD Police Chief Mayra Franco. Official photo, Pastor Trena Turner of Stockton’s Victory In Praise Church. Victory in Praise Church photo.
California Attorney General Rob Bonta. Official photo, SUSD Police Chief Mayra Franco. Official photo, Pastor Trena Turner of Stockton’s Victory In Praise Church. Victory in Praise Church photo.

Special to the Post

California Attorney General Rob Bonta announced that the California Department of Justice (DOJ) has ended monitoring of the Stockton Unified School District (District) and its Department of Public Safety (Department), concluding the five-year term of the stipulated judgment that addressed system-wide violations of the civil and constitutional rights of Black and Latino students and students with disabilities.

The District has also committed to implementing a plan to further reduce disproportionalities in law enforcement referrals through school year 2026-2027, which will institutionalize the revised policies and practices and continue the progress made under the judgment.

“Over the past five years, the California Department of Justice and the Stockton Unified School District worked together to successfully implement the corrective actions set out in the stipulated judgment to protect the rights of students in schools,” Bonta said on April 11. 

“Today we can celebrate that the agreement has helped the District take important steps to address concerns regarding interactions between police officers and students and to promote an equitable and positive learning environment.

“This achievement is a testament to the hard work and dedication of our educators, staff, students, and Department of Public Safety, said SUSD Supt. Dr. Michelle Rodriguez. “We reaffirm our commitment to continue the important changes and policies and remain steadfast in our mission to improve services and support for all students, ensuring that each child has the opportunity to succeed academically, socially, and emotionally.”

“The Department is proud of the work that was completed surrounding the DOJ Agreement which has not only made us a better Department but has placed us at the forefront of progressive policing,” said SUSD Police Chief Mayra Franco.

“The consent decree was phase one. Now we must build on this momentum to cement the progress that has been made, and fix policdes and practices that continue to hurt SUSD students and families,” said Jasmine Dellafosse, Director of Organizing and Community Engagement at End Poverty in CA.

“The requisite collaboration that took place with community members and the Stockton Unified School District was an admirable beginning,” said Pastor Trena Turner, Victory In Praise Church. “Continued efforts of transparency and inclusion that outlasts the monitoring period, will be of paramount importance to further strengthen the district and ultimately improve the lived experience of our students.”

In 2019, a DOJ investigation concluded that the District’s policies and practices with respect to law enforcement referrals discriminated against Black and Latino students and students with disabilities. The investigation also found unconstitutional search and seizure practices.

DOJ and the District entered into a stipulated judgment that required significant reforms and a five-year monitoring period. As part of the stipulated judgment, which concluded on Feb. 19, the District:

  • Established clear policies and procedures limiting when school administrators refer students to law enforcement.
  • Created a formal diversion program in lieu of citations and arrests to address minor school-based offenses.
  • Revised policies and procedures relating to treatment of students with disabilities in order to prevent discrimination, including the hiring of a trained Disability Coordinator.
  • Created clear processes for school site administrators to refer students with mental health needs to support services rather than a referral to law enforcement.
  • Instituted mandatory annual training of all officers and staff regarding civil and constitutional rights, disability and special education laws, and elimination of bias.
  • Reformed use of force policies, procedures, and practices, including implementing a comprehensive review process.
  • Updated search and seizure policies.
  • Used data to track and analyze all arrests and referrals to law enforcement from schools; and
  • Established the Community Advisory Group, which collaborated with the District to provide input and review updated policies.

Overall, the judgment led to markedly improved outcomes for students. Total arrests of students dropped significantly; in school year 2018-2019, there were 155 arrests, compared to nine arrests during school year 2022-2023. Calls for service to the Department decreased by 54% and unwarranted calls for service decreased by 52%.

Under the disproportionality plan, the Community Advisory Group and Transformative Justice subcommittee, consisting of community organizations and other stakeholders, will continue to meet regularly to improve and reduce disparities in law enforcement referrals and receive and analyze disaggregated and anonymized District data on use of force, law enforcement contacts, citations, arrests, and calls for assistance.

The media office of California State Attorney General Rob Bonta is the source of this report.

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