Little To Show
Homeless crisis endures with funds unaccounted
By John Frias Morales
April 2025
Sacramento is at a breaking point with 2,000 homeless fires and 55,000 nuisance complaints. The city’s unsheltered crisis is out of control, despite millions of taxpayer dollars poured into so-called “navigation” solutions.
After years of mismanagement, the city faces a perpetual struggle against illegal encampments. We have a budget deficit and lack of trust in local government. It’s time for accountability.
Under the leadership of former Mayor Darrell Steinberg, the city mismanaged $88 million in homeless funds. Only 13% went toward permanent housing. Residents are left with the consequences.
Where did the money go?
Recent reports say 70% of local homeless dollars were absorbed by administrative overhead, coordinated entry systems and assessments—not housing solutions.
Planning managers, attorneys and infrastructure repairs drained $16 million that should have gone to moving people off the streets and into permanent housing. Another $17 million went to security, outreach and cleanups.
Meanwhile, thanks to the city’s flawed 2024 unsheltered count under Steinberg, allocations from the state’s Homeless Housing, Assistance and Prevention Program were slashed by 40%, from $27 million to $16 million.
Steinberg was desperate to show he reduced homelessness, presumably for political reasons. Even a cursory analysis shows the 2024 unsheltered numbers were bogus. Now the reality of losing $11 million in state funds makes the consequences of the count downright dangerous.
And there’s no clear account of how all that money gets spent. No detailed reports. No transparency. Just a growing problem without tangible results.
Consequences of this mismanagement are devastating. At least 1,100 people died on local streets in recent years, the county coroner reports.
Data suggests the city’s “navigation” experience may be toxic. Prior to receiving services, 67% of recipients were unsheltered, while 43% had some form of housing (renting, couch surfing or living with family).
Alarmingly, after exiting local navigation programs, 72% ended up homeless. How can navigation designed to help people escape homelessness create more instability?
This isn’t just a political issue. It’s a matter of life and death. Every dollar wasted on ineffective programs puts lives at risk.
The city’s failure to comply with California homeless housing guidelines could have dire financial impacts. The state threatens to reclaim millions in funds unless the city demonstrates real progress in creating permanent housing and closing encampments.
Residents deserve a full account of where their tax dollars go. We’ve seen no full breakdown of how federal funds, continuum of care money and county homeless dollars are used.
With other citizens, I urge Mayor Kevin McCarty to take bold, immediate action. Sacramento can’t afford another year of inaction, excuses and failure. Here’s an action plan for our mayor:
1. Hold public sessions to provide a full accounting of homeless spending. Prove compliance with state guidelines and demonstrate real outcomes.
2. Release a comprehensive breakdown of all homeless funding sources, including federal, state and county allocations.
3. Overhaul the city’s homeless programs to ensure the vast majority of funds go toward permanent housing solutions and encampment closures, not administrative waste.
4. Establish strict performance benchmarks to ensure every dollar spent makes a measurable impact.
Sacramento residents are fed up with excuses. We deserve leadership that prioritizes solutions over politics, and action over empty promises. McCarty needs to be the leader who brings real accountability and change.
We can’t let failures of the past continue into tomorrow.
John Frias Morales is a Sacramento neighborhood activist. He can be reached at johnfmorales@gmail.com.
