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CAO Presents Options To Cut Homeless-Services Spending 10–15%; Council Members Warn of Bed Losses and Legal Limits
Summary
The city CAO presented options to reduce homeless-services spending by 10–15%—roughly $42–$62 million on a $417.8 million portfolio—by renegotiating hotel rents, targeting small sites and other program categories. Council members pressed for alternatives that preserve beds because of obligations under the Alliance settlement.
The Los Angeles City CAO on Wednesday delivered a financial analysis showing where the city could find $42 million to $62 million in savings—10% to 15% of a $417.8 million homeless-services portfolio—if the City Council directs reductions in specified program categories.
The CAO framed the document as a menu of options, not final recommendations, saying the report was produced to respond to a prior request from the Council’s Budget and Finance Committee to identify opportunities to reduce spending. The analysis lists categories for further study, including renegotiating Inside Safe hotel rents, reviewing small sites with fewer than 50 beds, examining city‑paid rentals, safe‑parking programs and street‑based outreach…
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