By: Henry Mauriss
The recent audit detailing California’s failure to track the effectiveness of its $24 billion expenditure on homelessness programs over the last five years is a stark indictment of how we, as a society, approach one of the most pressing crises of our time. As someone who has worked in both the business world and philanthropy, especially in supporting initiatives to aid the homeless, these findings are, for me, both unsurprising and deeply concerning. The lack of accountability, transparency, and data collection highlighted in the audit is not just a bureaucratic failure—it’s a moral one.
When we talk about a crisis as severe as homelessness, we are talking about human lives. We are talking about families living on the streets, veterans without roofs over their heads, and individuals battling mental health issues or addiction with no support system in place. Spending billions of dollars without knowing if it’s working is not just wasteful—it’s callous. It means that the lives of the most vulnerable are being left to chance, rather than addressed with the focused, data-driven solutions they deserve.
The Audit’s Alarming Findings
The California State Auditor’s report, which found that the California Interagency Council on Homelessness (Cal ICH) has not consistently tracked spending or the outcomes of its programs, raises fundamental questions about the State’s commitment to addressing the homelessness crisis. The audit revealed that much of the funding has been funneled into temporary solutions like shelters or rent subsidies, yet the homeless population continues to rise. In 2023, homelessness grew by 6%, bringing the total to over 180,000 people. That’s a 53% increase since 2013.
This statistic alone should alarm policymakers and citizens alike. We are not just failing to solve the problem—we are watching it grow exponentially. The lack of tracking and data collection has made it impossible to determine which programs, if any, are truly making a difference. This, in turn, has left us without the necessary insights to make informed decisions moving forward.
The audit’s recommendation for a “scorecard” system to track the success of these programs is a step in the right direction. But let’s be clear: this is something that should have been implemented from the beginning. In the business world, this element is elementary; we track every dollar spent and measure outcomes rigorously. How is it that in the realm of public service, where the stakes are infinitely higher, we are not doing the same?
Temporary Solutions Are Not Enough
One of the most disheartening revelations in the audit is that the majority of people involved in state programs end up in interim housing, such as shelters, rather than in permanent housing. This is, at best, a temporary band-aid on a much deeper wound. Shelters provide short-term relief, but they do not address the root causes of homelessness, such as high costs of living, the living wage, mental illness, addiction, or systemic poverty.
Project Homekey, one of the few programs that the audit found to be cost-effective, aims to convert hotels into permanent housing. While this is a positive step, it is not enough. We need long-term solutions that address not just where people sleep but how they can rebuild their lives. This includes mental health services, addiction treatment, job training, job placement, and affordable housing that marries up with wage parity.
As State Senator Roger Niello pointed out, “California is facing a concerning paradox: despite an exorbitant amount of dollars spent, the state’s homeless population is not slowing down.” This paradox exists because we have been focusing on short-term fixes without a comprehensive, long-term strategy. To truly solve the homelessness crisis, we need to focus on self-sufficiency and cost-effectiveness—two principles that are sorely lacking in the current approach.
The Need for Data and Accountability
One of the most glaring issues raised by the audit is the lack of data. Without proper tracking, it is impossible to know which programs are working and which are not. This lack of transparency also makes it difficult for taxpayers to see where their money is going. As the audit points out, both San José and San Diego have spent hundreds of millions of dollars on homelessness programs, yet neither city has a mechanism in place to track how that money is being used. This is unacceptable.
Data is not just a tool for accountability; it is a tool for improvement. In the business world, we rely on data to make informed decisions, adjust strategies, and measure success. The same should be true for government programs, especially when they involve such large sums of money and such critical human issues. The implementation of a centralized data collection system, as recommended by the audit, is not just necessary—it is long overdue.
A Call for Meaningful Reform
The homelessness crisis in California is a symptom of broader systemic issues, from the lack of affordable housing to the inadequacies of our mental health and addiction services. Throwing money at the problem without tracking whether it is making a difference is not just inefficient—it is negligent.
It’s time for a new approach. First, we need to implement the recommendations of the audit, including the creation of a scorecard system and stronger reporting requirements. But we also need to go further. We need to invest in long-term solutions that address the root causes of homelessness. This includes expanding mental health and addiction services, and providing job training and other support systems to help people regain self-sufficiency. These things need to be addressed, or people removed from the streets will only return to them, and in shorter cycles. Affordable housing, and its development is, to my thinking, more of a myth than a solvable problem. If we can allocate resources instead to absolving mental and addiction disorders, we can elevate the level of employment formerly homeless qualify for and attain, thus making more strata of current housing available to them. And anyway, the State and all its many resources, including private-sector sources, have been wholly unable to unlock the ever-elusive code for “affordable housing” and it remains undefined and unavailable to most.
As someone who has been involved in both business and philanthropy, I have seen firsthand that real change takes time, effort, and, most importantly, accountability. The homelessness crisis is not insurmountable, but it requires leadership that is willing to prioritize long-term solutions over short-term optics. California has spent billions of dollars without knowing if it worked—it’s time we demand better.
Conclusion
The recent audit should be a wake-up call for all of us. The homelessness crisis is not going away, and it will not be solved with temporary fixes or unaccountable spending. We need a new approach—one that prioritizes data, accountability, and long-term solutions. The people of California, both housed and unhoused, deserve better than what they have been getting. It’s time to demand meaningful reform.