California’s homelessness crisis is getting worse every year. Now, one of its biggest cities is pledging hundreds of millions to the effort – but some experts are less than impressed with the plan.
San Diego Homelessness Budget
The annual review of San Diego’s homelessness budget has found that the city plans to spend $230 million to combat its homelessness crisis this fiscal year – tens of millions more than was spent the year before.
“Notable Fiscal Risks”
Independent budget analyst Amy Li reported that the annual homelessness budget had increased by 13%, and could pose “notable fiscal risks” for the state.
More Comprehensive Plans Needed
The report recommended that the city lay out a more comprehensive plan of action regarding the homelessness crisis, to account for where the money will come from and how it will be spent, allowing for better public transparency.
“Uncertainties” for the City Budget
“There are several notable fiscal risks in the City’s homelessness budget that warrant close monitoring,” Li writes. “Additionally, growth in expenditures for existing shelter programs and unknown costs to identify replacement sites in FY 2025 add to the City’s uncertainties.”
Climbing Crisis
The homelessness crisis – which has been felt across the state – has coninued to climb every year in California’s major cities. San Diego County’s latest homelessness census showed another record-high amount of homeless residents this year.
10,000 People Unhoused
Census results released in May showed that as of January 2024, approximately 10,605 homeless residents, including those sleeping in shelters and outdoors.
A 3% Increase
This marks a 3% increase since 2023, which saw an even more dramatic record-high rate compared to the year before.
Most in San Diego City
San Diego County has a population of 3.2 million as of 2020, with nearly half of the population residing in the San Diego city limits, and most homeless residents living here.
New Initiatives Launched
The city has boosted its response to the growing homelessness crisis in recent years. The city has opened new shelters and a Homelessness Response Center to help address the crisis, among many other initiatives.
Problems Keep Growing
However, it has been faced with a number of compounding issues recently, including reduced state funding and the loss of hundreds of beds in city shelters.
New 1000-Bed Shelter
The City Council has scheduled a meeting next month to address these issues, as well as to discuss Mayor Todd Gloria’s proposal to convert a vacant downtown warehouse into a 1,000-bed shelter. This would make it the largest homeless shelter in the city.
New Proposal, New Problems
The report took aim at Gloria’s proposal, which it estimated could cost as much as $30.7 million. Meanwhile, the mayor has yet to provide specific information on funding sources for the initiative, despite publicly proposing it in April.
$8 Million Taken from Affordable Housing Fund
Another risk identified in the three-page report was the city’s decision to shift $8 million from the San Diego Housing Commission’s (SDHC) Affordable Housing Fund toward city homelessness expenditures.
State Funding Not Accounted for
It also noted that the state has not accounted for structural deficits based on short-term grants from state funding. For years, a large portion of the funding has come from annual state grants, such as California’s Homeless Housing, Assistance, and Prevention Program.
Less Funding Coming in
During the 2023 fiscal year close to a quarter of San Diego’s budget for homelessness had been supplied by the state. However, the city is likely to receive less state funding this year, and there is not yet a specific indication of how those deficits will be addressed.
A “Clear, Comprehensive, and Publically Available” Plan is Needed
“Having a clear, comprehensive, and publicly available homelessness spending plan reflecting City and SDHC resources is critical for monitoring program expenses over time, and for providing public transparency,” the report reads.
Designated Funding Areas
Currently, more than 45% of these predicted homelessness expenditures will go to permanent housing, 18% will go to shelters, and the remainder will go to community outreach, designated tent sites, and more.
The Mayor’s Office Responds
Mayor Gloria’s office has responded to the report, defending the budget estimates as a “reflection of priorities” that mattered most to San Diego residents.
“Reflections of Priorities”
“Budgets are reflections of priorities, and Mayor Gloria’s spending plans have consistently reflected what he understands to be important to San Diegans,” said mayoral spokesperson Rachel Liang. “That’s why he has aggressively tackled homelessness, spending at a level that reflects the urgency and magnitude of the crisis.”
Where the Funding Comes from
Gloria previously confirmed that he expected to pull from state grants, city funds, and philanthropic efforts to fund the warehouse shelter initiative despite a $167 million budget deficit reported earlier this year.
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