Arizona bill mandates audit of $1B homeless services spending amid rising homelessness rates

The Arizona State Legislature's House Government meeting on February 5, 2025, focused on House Bill 2435, which aims to address the growing homelessness crisis in the state. The bill, presented by Representative Matt Gress, mandates the Arizona Criminal Justice Commission to collect comprehensive data on the homeless population and directs the state auditor to conduct a special audit of expenditures related to homelessness services.

Representative Gress highlighted the lack of a centralized system for tracking financial investments and outcomes in homelessness programs. He noted that in 2023, Arizona spent approximately $1 billion to assist around 47,000 individuals experiencing homelessness, yet only 1% of that funding was allocated for substance abuse treatment. Alarmingly, 83% of reported deaths among the homeless in Maricopa County were drug-related, indicating a worsening situation.

Paul Webster, a visiting fellow with the Cicero Institute and former senior policy advisor on homelessness at HUD, supported the bill, emphasizing that despite increased funding and resources—totaling over $300 million from the state and additional federal support—homelessness in Arizona has reached unprecedented levels. He reported a 20% increase in homelessness since 2005, with significant rises in chronic homelessness and unsheltered individuals.

The proposed audit aims to assess the effectiveness and efficiency of current programs, ensuring accountability for public funds. Webster shared insights from a similar audit conducted in Los Angeles, which revealed poor management oversight and a focus on processes rather than outcomes, leading to ineffective homelessness interventions.

The committee did not raise any immediate questions following the presentations, indicating a potential consensus on the need for better data and accountability in addressing homelessness in Arizona. The meeting concluded without a vote, but the discussions underscored the urgency of the issue and the importance of the proposed legislation in guiding future efforts to combat homelessness in the state.