Supervisors press HSH on staffing and Prop C contingencies as budget ramps up

The Budget and Appropriations Committee on Aug. 20 heard extended discussion over the Department of Homelessness and Supportive Housing(HSH) budget as members weighed large proposed expansions alongside staffing capacity and contingency funding.

HSH officials told supervisors they broadly accept the Budget and Legislative Analyst's (BLA) recommendations but reiterated the department's reliance on outside sources to implement the Recovery Plan. "The budget is balanced without Prop C in year 1," HSH said, but continued expansion of permanent supportive housing will depend on Prop C, FEMA and Homekey funding.

Supervisor Rafael Mandelmann said the first-year growth in the HSH budget will be substantial and pressed the department for a clearer plan to meet on-the-ground obligations: "We've requested a $50,000,000 add back," Mandelmann said, acknowledging supervisors understand that the full amount may not be available but stressing the need for funding to address encampments and Boise decision compliance.

Deputy Director Gigi Whitley described how the department and the BLA modeled temporary salaries and attrition, and said staffing remains its primary constraint. "We are literally at our breaking point from a staffing capacity position," Whitley said, describing a combination of pandemic deployments and recruitment shortfalls that leave HSH stretched thin.

Dan Gonchar of the BLA flagged reserve recommendations tied to Prop C allocations: the analysts recommend placing some large Prop C-funded expenditures on the Budget & Finance Committee reserve pending a detailed spending and procurement plan and the results of community consultations led by the Human Rights Commission. Gonchar told the committee the reserve approach is meant to ensure the board can review detailed spending and staffing plans before funds are released.

The committee debated the trade-off between speed and oversight. President Norman Yee, Supervisor Shimon Walton and others warned that placing funds on reserve could delay community-led investments, while supporters of the reserve urged the committee to maintain review authority to avoid bottlenecks and ensure accountability.

By the end of the exchange, Chair Sandra Lee Feuer directed the Controller's Office to note the committee's intention to accept the BLA recommendations for HSH while also asking departments and the BLA to return with additional information on hiring timelines and contingency planning so the committee can make final allocations.

What happens next: Committee members asked HSH and the BLA for written plans showing realistic hiring timelines, position-by-position start dates, and trigger conditions tied to Prop C and other fund releases; the items will be revisited in follow-up hearings next week.