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New homeless services department unveils Measure A spending plan and warns of deep cuts
Summary
HSH director Sarah Mahan told supervisors the FY26‑27 Measure A spending plan must close a $300M+ gap driven by loss of one‑time, federal and state funds; staff identified $45M in efficiencies but proposed curtailments including outreach and prevention, drawing sharp public and provider opposition.
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The Department of Homeless Services and Housing presented a Measure A spending plan to the Board of Supervisors on Jan. 13 that seeks to preserve housing beds and accountability investments while closing a projected deficit of roughly $300 million.
Director Sarah Mahan said the deficit is driven primarily by the loss of federal American Rescue Plan Act funds and state encampment resolution dollars, by higher program costs and by the fact that Measure A is a sales tax whose revenue can fluctuate with the economy. HSH proposed leveraging approximately $39 million in one‑time sources and identified about $45 million in programmatic efficiencies. Nonetheless the draft plan recommends programmatic curtailments that would reduce funding for street outreach and engagement, prevention, regional coordination and some non‑housing supportive services.
Mahan emphasized priorities for the next fiscal year: maintaining interim and permanent housing for families, youth, and survivors of gender‑based violence; funding accountability and research; and retaining programmatic staff focused on housing solutions. She said the county will preserve nearly all Measure A‑funded interim housing beds and maintain investments in permanent supportive housing by leveraging non‑A resources such as HAP and HomeSafe. HSH estimates a Measure A pool of about $544 million for the coming year but warned it must close a $303 million shortfall.
Public comment: More than 60 in‑person and dozens of remote speakers — service providers, unions, advocates and residents — urged the board to restore funding, warning that cuts to housing navigation, family solution centers, youth services and outreach would increase homelessness, shutdown programs and result in layoffs. Providers said zeroing prevention or navigation would keep people homeless longer and erode public trust after voters passed Measure A a year ago.
Board response and next steps: Supervisors pressed HSH on evaluation metrics, legal obligations (including the LA Alliance litigation that affects outreach in the City of Los Angeles), and equity for unincorporated areas. Mahan said HSH will publish dashboards, develop an annual evaluation agenda funded by Measure A’s accountability allocation and return to the board for a final vote on Feb. 3. Board members asked for continued engagement with cities, La Casa and local jurisdictions to coordinate local solutions funding and mitigate impacts.
What to watch: HSH’s Feb. 3 vote on the final FY26‑27 spending plan, follow‑up data and the evaluation agenda that will determine whether program reductions are reversed or adjusted.

