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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

Discrimination in City Contracts

The report was made public by Councilmember Carroll Fife, who brought it this week to the Council’s Life Enrichment Committee, which she chairs. Councilmembers, angry at the conditions revealed, unanimously approved the informational report, which is scheduled to go to an upcoming council meeting for discussion and action. The current study covers five years, 2016-2021, roughly overlapping the two tenures of Libby Schaaf, who served as mayor from January 2015 to January 2023.

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Dr. Eleanor Ramsey (top, left) founder, and CEO of Mason Tillman Associates, which conducted the study revealing contract disparities, was invited by District 3 Councilmember Carroll Fife (top center) to a Council committee meeting attended by Oakland entrepreneur Cathy Adams (top right) and (bottom row, left to right) Brenda Harbin-Forte, Carol Wyatt, and councilmembers Charlene Wang and Ken Houston. Courtesy photos.
Dr. Eleanor Ramsey (top, left) founder, and CEO of Mason Tillman Associates, which conducted the study revealing contract disparities, was invited by District 3 Councilmember Carroll Fife (top center) to a Council committee meeting attended by Oakland entrepreneur Cathy Adams (top right) and (bottom row, left to right) Brenda Harbin-Forte, Carol Wyatt, and councilmembers Charlene Wang and Ken Houston. Courtesy photos.

Disparity Study Exposes Oakland’s Lack of Race and Equity Inclusion

Part 1

By Ken Epstein

A long-awaited disparity study funded by the City of Oakland shows dramatic evidence that city government is practicing a deeply embedded pattern of systemic discrimination in the spending of public money on outside contracts that excludes minority- and woman-owned businesses, especially African Americans.

Instead, a majority of public money goes to a disproportionate handful of white male-owned companies that are based outside of Oakland, according to the 369-page report produced for the city by Mason Tillman Associates, an Oakland-based firm that performs statistical, legal and economic analyses of contracting and hiring.

The report was made public by Councilmember Carroll Fife, who brought it this week to the Council’s Life Enrichment Committee, which she chairs. Councilmembers, angry at the conditions revealed, unanimously approved the informational report, which is scheduled to go to an upcoming council meeting for discussion and action.

The current study covers five years, 2016-2021, roughly overlapping the two tenures of Libby Schaaf, who served as mayor from January 2015 to January 2023.

The amount of dollars at stake in these contracts was significant in the four areas that were studied, a total of $486.7 million including $214.6 million on construction, $28.6 million on architecture, and engineering, $78.9 million on professional services, and $164.6 million on goods and services.

While the city’s policies are good, “the practices are not consistent with policy,” said Dr. Eleanor Ramsey, founder and CEO of Mason Tillman Associates.

There have been four disparity studies during the last 20 years, all showing a pattern of discrimination against women and minorities, especially African Americans, she said. “You have good procurement policy but poor enforcement.”

“Most minority- and women-owned businesses did not receive their fair share of city-funded contracts,” she continued.  “Over 50% of the city’s prime contract dollars were awarded to white-owned male businesses that controlled most subcontracting awards. And nearly 65% of the city’s prime contracts were awarded to non-Oakland businesses.”

As a result, she said, “there is a direct loss of revenue to Oakland businesses and to business tax in the city…  There is also an indirect loss of sales and property taxes (and) increased commercial office vacancies and empty retail space.”

Much of the discrimination occurs in the methods used by individual city departments when issuing outside contracts. Many departments have found “creative” ways to circumvent policies, including issuing “emergency” contracts for emergencies that do not exist and providing waivers to requirements to contract with women- and minority-owned businesses, Ramsey said.

Many of the smaller contracts – 59% of total contracts issued – never go to the City Council for approval.

Some people argue that the contracts go to a few big companies because small businesses either do not exist or cannot do the work. But the reality is that a majority of city contracts are small, under $100,000, and there are many Black-, woman- and minority-owned companies available in Oakland, said Ramsey.

“Until we address the disparities that we are seeing, not just in this report but with our own eyes, we will be consistently challenged to create safety, to create equity, and to create the city that we all deserve,” said Fife.

A special issue highlighted in the disparity report was the way city departments handled spending of federal money issued in grants through a state agency, Caltrans. Under federal guidelines, 17.06%. of the dollars should go to Disadvantaged Business Enterprises (DBEs).

“The fact is that only 2.16% of all the dollars awarded on contracts (went to) DBEs,” Ramsey said.

Speaking at the committee meeting, City Councilmember Ken Houston said, “It’s not fair, it’s not right.  If we had implemented (city policies) 24 years ago, we wouldn’t be sitting here (now) waiving (policies).”

“What about us? We want vacations. We want to have savings for our children. We’re dying out here,” he said.

Councilmember Charlene Wang said that she noticed when reading the report that “two types of business owners that are consistently experiencing the most appalling discrimination” are African Americans and minority females.

“It’s gotten worse” over the past 20 years, she said. “It’s notable that businesses have survived despite the fact that they have not been able to do business with their own city.”

Also speaking at the meeting, Brenda Harbin-Forte, a retired Alameda County Superior Court judge, and chair of the Legal Redress Committee for the Oakland NAACP, said, “I am so glad this disparity study finally was made public. These findings … are not just troubling, they are appalling, that we have let  these things go on in our city.”

“We need action, we need activity,” she said. “We need for the City Council and others to recognize that you must immediately do something to rectify the situation that has been allowed to go on. The report says that the city was an active or inactive or unintentional or whatever participant in what has been going on in the city. We need fairness.”

Cathy Adams, president of the Oakland African American Chamber of Commerce, said, “The report in my opinion was very clear. It gave directions, and I feel that we should accept the consultant Dr. Ramsey’s recommendations.

“We understand what the disparities are; it’s going to be upon the city, our councilmembers, and our department heads to just get in alignment,” she said.

Said West Oakland activist Carol Wyatt, “For a diverse city to produce these results is a disgrace. The study shows that roughly 83% of the city contracting dollars went to non-minority white male-owned firms under so-called race neutral policies

These conditions are not “a reflection of a lack of qualified local firms,” she continued. “Oakland does not have a workforce shortage; it has a training, local hire, and capacity-building problem.”

“That failure must be examined and corrected,” she said. “The length of time the study sat without action, only further heightens the need for accountability.”

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Activism

Post Newspaper Invites NNPA to Join Nationwide Probate Reform Initiative

The Post’s Probate Reform Group meets the first Thursday of every month via Zoom and invites the public to attend.  The Post is making the initiative national and will submit information from its monthly meeting to the NNPA to educate, advocate, and inform its readers.

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iStock.
iStock.

By Tanya Dennis

The National Newspaper Publishers Association (NNPA) represents the Black press with over 200 newspapers nationwide.

Last night the Post announced that it is actively recruiting the Black press to inform the public that there is a probate “five-alarm fire” occurring in Black communities and invited every Black newspaper starting from the Birmingham Times in Alabama to the Milwaukee Times Weekly in Wisconsin, to join the Post in our “Year of Action” for probate reform.

The Post’s Probate Reform Group meets the first Thursday of every month via Zoom and invites the public to attend.  The Post is making the initiative national and will submit information from its monthly meeting to the NNPA to educate, advocate, and inform its readers.

Reporter Tanya Dennis says, “The adage that ‘When America catches a cold, Black folks catch the flu” is too true in practice; that’s why we’re engaging the Black Press to not only warn, but educate the Black community regarding the criminal actions we see in probate court: Thousands are losing generational wealth to strangers. It’s a travesty that happens daily.”

Venus Gist, a co-host of the reform group, states, “ Unfortunately, people are their own worst enemy when it comes to speaking with loved ones regarding their demise. It’s an uncomfortable subject that most avoid, but they do so at their peril. The courts rely on dissention between family members, so I encourage not only a will and trust [be created] but also videotape the reading of your documents so you can show you’re of sound mind.”

In better times, drafting a will was enough; then a trust was an added requirement to ‘iron-clad’ documents and to assure easy transference of wealth.

No longer.

As the courts became underfunded in the last 20 years, predatory behavior emerged to the extent that criminality is now occurring at alarming rates with no oversight, with courts isolating the conserved, and, I’ve  heard, many times killing conservatees for profit. Plundering the assets of estates until beneficiaries are penniless is also common.”

Post Newspaper Publisher Paul Cobb says, “The simple solution is to avoid probate at all costs.  If beneficiaries can’t agree, hire a private mediator and attorney to work things out.  The moment you walk into court, you are vulnerable to the whims of the court.  Your will and trust mean nothing.”

Zakiya Jendayi, a co-host of the Probate Reform Group and a victim herself, says, “In my case, the will and trust were clear that I am the beneficiary of the estate, but the opposing attorney said I used undue influence to make myself beneficiary. He said that without proof, and the judge upheld the attorney’s baseless assertion.  In court, the will and trust is easily discounted.”

The Black press reaches out to 47 million Black Americans with one voice.  The power of the press has never been so important as it is now in this national movement to save Black generational wealth from predatory attorneys, guardians and judges.

The next probate reform meeting is on March 5, from 7 – 9 p.m. PST.  Zoom Details:
Meeting ID: 825 0367 1750
Passcode: 475480

All are welcome.

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Activism

Community Celebrates Turner Group Construction Company as Collins Drive Becomes Turner Group Drive

The event drew family, friends, and longtime supporters of Turner Group Construction, along with a host of dignitaries. The mood was joyful and warm, filled with hugs, handshakes and belated New Year’s greetings. Guests enjoyed hors d’oeuvres and a festive display of gourmet cupcakes as they conversed about the street sign reveal. 

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The Turner Construction group members.
The Turner Construction group members.

By Carla Thomas 

It was a family affair on Friday, Jan. 23, at the corner of Hegenberger Road and Collins Drive in East Oakland as community members, local leaders, and elected officials gathered to celebrate the renaming of Collins Drive to Turner Group Drive. The renaming saluted the Turner Group’s 45-plus years of economic development and community investment.

The event drew family, friends, and longtime supporters of Turner Group Construction, along with a host of dignitaries. The mood was joyful and warm, filled with hugs, handshakes and belated New Year’s greetings. Guests enjoyed hors d’oeuvres and a festive display of gourmet cupcakes as they conversed about the street sign reveal.

Special guests included former Alameda County Supervisor Keith Carson, veteran broadcaster Valerie Coleman-Morris, Chevron Senior Public Affairs Representative Andrea Bailey, community leaders Cephus “Uncle Bobby” Johnson and Beatrice “Aunt Bea” Johnson of the Oscar Grant Foundation, and Oakland City Councilmembers Ken Houston, Carroll Fife, and Kevin Jenkins. Members of WEBCORE, the Nor Cal Carpenters Union, the National Association of Minority Contractors (NAMC), Swinerton and Alten construction companies, activists Elaine Brown and David Newton, and many others joined the celebration.

Inside the event tent, an emotional Oakland City Councilmember Ken Houston spoke of his deep connection to the Turner family.

“I grew up on the same street with the Turners,” he said. “When my father passed away, their parents and siblings embraced me like family. This is our city, and it’s an honor to name this street Turner Group Drive because of the love and effort this company and family have given. Many dreams came out of this building. I wouldn’t be where I am today without the Turners.”

Councilmember Kevin Jenkins, whose father once taught the Turner brothers, added, “Len Turner is an amazing person. He’ll help anyone.”

Oakland Mayor Barbara Lee praised the company’s legacy, noting its creation of the Construction Resource Center, which trains and mentors the next generation of builders and developers through partnerships across the region. “This is a great day for Oakland and a profound acknowledgment of the Turner Group’s contribution to our community,” she said.

Fife echoed that sentiment: “This is a day for celebrating Black excellence. The Turner Group has poured into people and the community, showing us what’s possible.”

Among the many family members in attendance was the Turners’ 92-year-old patriarch, whose presence underscored the strength of the family’s legacy.

A touching highlight of the event came when Coleman-Morris was honored for her lasting mentorship of LaTanya Hawkins, now program manager of the Construction Resource Center. In 1979, Hawkins, then a fourth-grader, wrote Coleman-Morris a letter seeking advice. Coleman responded with words of encouragement that inspired Hawkins to pursue her dreams. The two stayed in touch for decades. On stage, they embraced as Coleman reflected on “the power of small acts of kindness to change a life.”

Coleman-Morris also shared reflections on leadership and community spirit, saying, “If we change the way we look at things, the things we see will change.” She then recited the Serenity Prayer, reminding the crowd, “We are a powerful community, we just need to believe it.”

Company leaders Len and Lance Turner closed the ceremony with words of gratitude and humor. Len thanked his mother, wife, family, legal team, and longtime supporters including Carson, Geoffrey Pete, and the late Dorothy King of Everett & Jones Barbecue. He also acknowledged the challenges the company had overcome, saying, “Without all of this support, I wouldn’t be here today.”

Through Turner Group Construction and the Construction Resource Center, the Turners have created new opportunities for underrepresented groups in the construction industry and continue to inspire the next generation of builders.

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