(IMAGN) Alex Hoxie of Brockton, right, who gives aid to the city's homeless people, hands out supplies under the Crescent Street Bridge on Friday, Feb. 21, 2025.
Los Angeles, California – The Los Angeles Homeless Services Authority (LAHSA) has issued layoff notices to 11 of its more than 700 employees amid ongoing budget challenges, the agency confirmed. The layoffs come as LAHSA faces significant financial pressure following recent funding cuts and organizational scrutiny.
Last week, LAHSA’s human resources department sent an email to all employees encouraging voluntary separations to reduce the number of involuntary layoffs. Employees who volunteer to leave by June 5 could potentially prevent some of the layoffs, which are currently set to take effect on June 30. The agency is also trying to place affected staff in similar roles within the organization when possible.
LAHSA is navigating a complicated financial landscape after Los Angeles County supervisors decided to withdraw approximately $300 million in Measure A funds and plan to transfer both those funds and related staff to a new county homeless department by July 2026. This move follows audits that criticized LAHSA for lapses in financial accountability and transparency. The timing of the layoff notices late in the fiscal year, which ends June 30, has raised questions about the agency’s financial oversight, as budget shortfalls and layoffs are typically identified much earlier in the year.
LAHSA’s approved budget for the current fiscal year stands at about $915 million, with the City of Los Angeles contributing roughly $320 million, or 35% of that total. The agency allocates the majority of its funds—81%—to service providers, while 13% supports internal programs and just under 6% covers administrative costs.
Meanwhile, the Los Angeles City Council recently approved a revised $13.9 billion budget for the 2025-26 fiscal year, which begins July 1. The revised budget addresses a $1 billion deficit through 650 layoffs and program cuts. It includes approximately $904 million for homelessness-related efforts, marking a 5% reduction in funding for homelessness programs, which encompasses LAHSA’s city funding.
Despite requests from LAHSA for an additional $8.9 million to cover administrative costs, the City Council declined to increase funding. The agency stated that it requires 140 administrative employees to manage 250 city contracts, but current funding supports only the equivalent of 66 positions. Officials warn that without additional resources, LAHSA may struggle to fulfill key responsibilities, including conducting the annual homeless count and managing the homeless management information system.
The approved budget also created a new Bureau of Homelessness Oversight within the Los Angeles Housing Department, though no funding was allocated to this bureau. City leaders are debating whether to continue partnering with LAHSA or to form an in-house homeless services department, similar to the approach taken by Los Angeles County. Some council members have expressed reluctance to increase funding for LAHSA until the city clarifies its future strategy for addressing homelessness.
LAHSA Chief Executive Va Lecia Adams Kellum, who resigned in April but remains in her role during the search for a successor, acknowledged that the agency is preparing for significant structural changes as a result of the county’s funding withdrawal.
