In the world of social impact, “uncertainty” is often a constant. However, the homeless service sector in Los Angeles is currently facing a unique set of challenges. United Way of Greater Los Angeles recently hosted a virtual technical assistance webinar entitled “Planning During Funding Transitions” with Wahid Ahmed, United Way of Greater Los Angeles, and financial expert Claire Knowlton, Claire Knowlton Consulting, to discuss how United Way’ homelessness service partners can navigate these tumultuous times.
Understanding Measure A
Last year, LA County voters passed Measure A, a landmark sales tax initiative supporting homelessness services and affordable housing. While this is a significant win for long-term planning, its passage does not eliminate the ongoing fiscal challenges within the public sector.
- What it is: A half-cent sales tax that replaces the expiring Measure H.
- The Benefit: Unlike its predecessor, Measure A does not “sunset” (expire). This allows for long-term bonding and the sustained production of affordable housing.
The Allocation:
- 64% goes to homeless services (outreach, interim housing, rental assistance).
- 35% goes to affordable housing production and prevention.
Projected Deficits for Homelessness and Housing
Although Measure A continues to be a vital resource in LA County, declining sales tax revenue, rising program costs, and significant cuts to state and federal funding have created a significant deficit.
The LA County Department of Homeless Services and Housing needs $865 million to maintain all currently funded efforts in the next fiscal year, but is currently projecting $562 million, leaving a $303 million gap. The LA County Affordable Housing Solutions Agency (LACAHSA) is projected to need $372 million and will have a $10 million deficit.
How We are Leading Through Crisis
When public funding shifts, our community-based partners don’t just wait for the dust to settle. Knowlton shared how organizations are “game-planning” to protect their mission and staff.
1. Scenario Planning
Organizations are looking at multiple potential futures rather than just one. This includes:
- Trigger-Based Planning: Deciding now that “If we don’t raise $X by July 1st, we will pivot Program Y.”
- Boundary Mapping: Exploring “edge cases”, or the absolute best and worst scenarios to find a stable middle path.
- ABC Scenarios: Modeling what services look like with a 10%, 25%, or 50% revenue reduction.
2. Radical Transparency
In times of crisis, information vacuums lead to fear. We are encouraging our partners to be proactively transparent with their staff and the public. By naming what is at risk, we can solve problems collectively rather than in isolation.
3. Advocacy and Action
The scarcity we see is often a result of policy decisions. While we manage the current budget deficits, we remain committed to advocating for government funding that works for the people who need it most.
Why Support Matters
Philanthropy cannot fill the deficit alone. That is the scale only public dollars can reach. However, private donations serve as the catalyst. Donations allow organizations to remain open while they re-strategize. It provides flexible capital that public contracts often lack, allowing for innovation and the retention of a skilled workforce that took years to build.
United Way of Greater Los Angeles is committed to staying close to our partners, understanding their needs, and ensuring every dollar you give is used to sustain the backbone of housing solutions.