Panel approves special audit of homelessness spending despite city objections

The Appropriations Committee returned HB2532 with a due-pass recommendation after extended testimony and debate (vote: 11 yes, 6 no, 1 not voting). The bill directs the Arizona Auditor General to perform a special audit of homelessness spending and programs across state and local jurisdictions, including law enforcement agencies and federal funds, and appropriates $1,250,000 from the Housing Trust Fund for the audit.

Sponsor Rep. Matt Gress argued the state spends roughly $1 billion annually on homelessness and lacks consistent reporting tying expenditures to outcomes; he said prior reports and studies show gaps in expense reporting and performance oversight. The City of Phoenix's Susie Cannata testified in respectful opposition, saying Phoenix already conducts fiscal reviews, that a new special audit would impose administrative costs on local governments and divert Housing Trust funds from services, and offered to share existing audit materials. Proponents, including Paul Webster of the Cicero Institute, argued broader oversight is needed to connect spending to outcomes and to identify waste and fraud.

Members debated trade-offs: supporters said better data and accountability can improve results; opponents warned about using Housing Trust Fund dollars for oversight rather than housing. The committee advanced the bill with the stated appropriation; sponsor said he would pursue follow-up work and suggested amendments to incorporate existing municipal audits as input.