Full Breakdown
Layoffs at LA Homeless Services Authority Amid Budget Cuts
4/23/2026, 1:44:49 AM
Overview of the Layoffs
The Los Angeles Homeless Services Authority (LAHSA) announced plans to lay off 284 employees, primarily due to significant funding cuts from the Los Angeles County Board of Supervisors. This decision comes as part of a broader restructuring effort following the establishment of the new Department of Homeless Services and Housing, which aims to take over many of LAHSA's responsibilities. The layoffs will reduce LAHSA's workforce from approximately 600 to 320 employees, with the final day of employment for affected staff set for June 30, 2026.
Context of Funding Cuts
The layoffs are a direct consequence of Mayor Karen Bass's proposed budget for the 2026-27 fiscal year, which allocates about $788 million for homelessness services, a decrease of 17.3% from the previous year's budget of $953.3 million. While funding for LAHSA is expected to increase slightly from $50.65 million to $52.82 million, the overall reduction in homelessness spending has raised concerns among employees and advocates. LAHSA staff members have expressed fears that these cuts will exacerbate the homelessness crisis in Los Angeles, leading to more encampments and preventable deaths.
Employee Concerns and Responses
In an open letter addressed to Mayor Bass, the Los Angeles City Council, and the County Board of Supervisors, LAHSA employees urged officials to reconsider the funding cuts and halt the layoffs. They warned that the impending job losses would have dire consequences for the homeless population, stating, "These damages to LA's homeless services system will echo throughout our streets and communities." The letter emphasized that many employees are at risk of becoming homeless themselves, as they are "just one paycheck away" from losing their housing.
Official Statements and Future Plans
Interim LAHSA CEO Gita O'Neill acknowledged the dedication of the agency's staff, stating that they have been instrumental in reducing street homelessness by 14% countywide and 18% citywide over the past two years. O'Neill described the restructuring as a necessary evolution for LAHSA, focusing on macro-level governance, data management, and securing federal funding. The agency plans to narrow its role primarily to overseeing the Homeless Management Information System and Coordinated Entry System.
Los Angeles County officials have committed to helping displaced LAHSA employees transition to county roles, with 69 outreach workers already offered positions. However, the exact number of employees who will be absorbed into the county workforce remains uncertain.
Criticism and Opposition
Critics of the budget cuts argue that reducing funding for LAHSA will undermine the progress made in addressing homelessness. Employees have highlighted the potential for increased encampments and unsafe living conditions if the workforce responsible for supporting vulnerable populations is diminished. Union representatives have also expressed frustration over the lack of clarity regarding job security for affected employees.
Conclusion and Next Steps
As LAHSA prepares for significant changes, the future of its workforce and the effectiveness of its services hang in the balance. The agency's restructuring is set to take effect on July 1, coinciding with the start of the new fiscal year. The outcome of the proposed budget and the county's commitment to absorbing displaced workers will be crucial in determining the agency's ability to continue its mission of addressing homelessness in Los Angeles.
