By: Henry Mauriss
The recent audit report exposing California’s failure to reduce homelessness despite spending $24 billion over the last five years is a sobering reminder of how much we’ve lost sight of what really matters. As the article “California’s Homeless Folly” from The Wall Street Journal points out, the staggering amount of money funneled into homelessness programs has done little to move the needle. In fact, homelessness has only grown—up from 151,278 people in 2019 to over 181,399 in 2023. These numbers should shock every Californian, but they’re only part of a much larger issue: the lack of meaningful oversight, accountability, and long-term solutions.
The audit conducted by state auditor Grant Parks makes it clear that the state has not effectively tracked its spending or evaluated the success of its programs. This is deeply concerning. As someone who has spent years in business and philanthropy, I know firsthand that throwing money at a problem without tracking outcomes is a recipe for failure. Imagine running a business without measuring profit or performance—it would be bankrupt in no time. Yet this is exactly what has been happening in California’s approach to homelessness.
Wasted Billions and No Tangible Results
The fact that California has spent $24 billion and seen an increase in homelessness is not just disappointing; it’s infuriating. It begs the question: What exactly are we paying for? According to the audit, nine state agencies administer at least 30 programs aimed at reducing homelessness, but the lack of coordination and oversight has resulted in these funds being scattered to the wind. As the report states, only two of these programs “appear” to be cost-effective, and even that claim is tenuous.
One of the programs, Project Homekey, converted existing buildings into homeless housing at a lower cost than building new affordable units. While this might seem like a success on paper, there’s little evidence that it actually helped reduce homelessness. This is emblematic of the problem: short-term solutions that look good but fail to address the root causes of homelessness. Temporary housing is important, but it’s not enough. If we don’t address the underlying issues like mental health, addiction, and joblessness, we’re just perpetuating the cycle.
Another program offered financial assistance to people at risk of homelessness. While it was more cost-effective than leaving individuals on the streets, it again failed to provide any real long-term solutions. What we’re seeing is a pattern of programs that treat symptoms, not causes. This is not a sustainable approach.
Progressives’ Misguided Focus on Spending Over Results
The article makes a critical point that progressives often measure success by how much they spend, not by actual results. Unfortunately, this mindset has led California down a dangerous path. Pouring billions of dollars into housing programs without ensuring that these programs are working is irresponsible, and frankly, it’s disrespectful to the people we claim to be helping. Progress should be measured by how many people we get off the streets and back on their feet, not by how much money we can claim to have spent.
Governor Gavin Newsom’s $6.4 billion bond for homelessness, approved by voters last month, is unlikely to change anything if it follows the same ineffective path. Without serious reform—starting with real accountability and a shift in focus from housing to rehabilitation—this money will go the way of the previous $24 billion: nowhere.
What’s Really Needed: Tough Love and Long-Term Solutions
One of the biggest takeaways from the audit is that California’s homelessness programs do not address the mental illness and addiction that are often at the core of the problem. It’s no secret that a significant portion of the homeless population suffers from untreated mental health issues or drug addiction. Yet, many of the programs California funds focus solely on housing, without offering the necessary support to get people the treatment they need.
This is where tough love comes in. Getting people into treatment, helping them manage their mental health, and providing them with job training and support is the only way we’re going to see real change. I know that “tough love” is not a popular concept among progressives, but the alternative—letting people languish in homelessness while offering them temporary shelters—isn’t working. We need to be willing to do the hard work of addressing the underlying causes of homelessness if we want to see any progress.
For those who are mentally ill or addicted, housing alone is not enough. They need comprehensive services, including medical treatment, therapy, and rehabilitation. They need job training and education programs that will help them re-enter the workforce. And most importantly, they need a system that doesn’t just give them a place to sleep for the night but helps them rebuild their lives from the ground up.
The Role of Accountability
If California is serious about solving the homelessness crisis, it needs to implement real accountability measures. The audit’s recommendation to require annual reports and a scorecard system to track the outcomes of homelessness programs is a good start. But we need to go further. Every program should be evaluated based on how many people it successfully transitions from homelessness into self-sufficiency. And programs that don’t work should be scrapped, regardless of how much money has already been spent on them.
It’s also time to rethink how we allocate resources. Instead of spreading billions across 30 different programs, we need to focus on the ones that show the most promise. This means investing in mental health services, addiction treatment, job training, and long-term housing solutions. And it means being willing to make tough choices when programs aren’t delivering results.
Conclusion: Time for Real Change
The audit of California’s homelessness spending should be a wake-up call for everyone involved—policymakers, taxpayers, and advocates alike. We cannot continue to pour billions of dollars into programs that don’t work and expect things to magically improve. It’s time for a new approach, one that prioritizes accountability, focuses on long-term solutions, and is willing to do the hard work of addressing the root causes of homelessness.
The people of California, both housed and unhoused, deserve better than the system we have now. It’s time to stop wasting money and start investing in real solutions.