In a recent audit released by the California State Auditor's Office, it has been revealed that the state has failed to sufficiently monitor the outcomes of its extensive spending on homelessness programs. This raises concerns about the effectiveness of the billions of dollars dedicated to tackling the crisis as the number of unsheltered individuals continues to rise.

The audit found that a state council, established in 2016 to oversee the implementation of homelessness programs, has not consistently tracked spending or evaluated the success of these programs. This lack of information hinders policymakers' understanding of the ongoing costs and outcomes of these initiatives, highlighting the need for more robust assessments of their cost-effectiveness.

Over the past five years, California has allocated an estimated $20 billion towards addressing the homelessness crisis. Despite these substantial investments, federal data indicates that homelessness in California grew by 6% in 2023 and has surged by 53% since 2013, leaving the state grappling with an increasingly dire situation.

The audit recommends that the state Legislature mandate the council to annually report spending plans and outcomes of state-funded homelessness programs, making this information accessible to the public. It also suggests the implementation of a "scorecard" system to track the success of these programs.

Among the programs analyzed in the audit, only two were deemed likely to be cost-effective: Project Homekey, Governor Gavin Newsom's initiative to convert hotels into housing, and the CalWORKs Housing Support Program, which provides financial assistance and services to low-income residents. However, the audit was unable to review the effectiveness of other programs, including a state rental assistance program, due to insufficient data collection.

The audit also revealed that a majority of individuals involved in state programs were placed in interim housing, such as shelters, rather than being transitioned to permanent housing. This underscores the need for more effective strategies to address the root causes of homelessness and provide long-term solutions.

Lawmakers, both Democrat and Republican, have expressed their concerns and support for improved monitoring and transparency in homelessness spending. State Senator Dave Cortese further highlighted that the audit's findings could serve as a blueprint for future legislation requiring stricter reporting on homelessness spending.

However, critics argue that this lack of data underscores the failure of Democrat-backed strategies and raises questions about the cost-effectiveness of state-funded initiatives during a time when California faces a significant budget deficit.

The audit also examined the spending by the cities of San José and San Diego, revealing that despite receiving millions in funding to address homelessness, neither city has evaluated the effectiveness of their programs. This calls for a stronger emphasis on transparency and accountability in the use of funds to combat homelessness.

With California's unhoused population continuing to grow, despite substantial investments, the audit's findings serve as a reminder of the urgent need for more effective and comprehensive strategies to tackle homelessness.