Good morning and welcome to LA on the Record, our City Council newsletter. It’s David Zahniser and Rebecca Ellis, bringing you the latest on city and county government.

Los Angeles elected officials received a stark warning this week about the rising cost of combating the city’s homeless crisis.

He Greater Los Angeles Coalition on Homelessnesswhich represents dozens of homeless service providers across Los Angeles County, said those nonprofit groups have not been paid the full cost of the services they provide at the “temporary” housing facilities. of the city, serving Angelenos relocated from sidewalk encampments.

Unless the City Council significantly increases the amount it pays nonprofits to staff homeless shelters, small villages and other city facilities, some organizations are likely to pull out to avoid lose more money, coalition members said.

That bracing message was delivered Monday in a closed-door meeting with the mayor. Karen Bass equipment. This was repeated two days later at the council’s homelessness committee, where some warned that up to 1,288 homeless beds, in up to 14 facilities, are now at risk.

Rowan Vanslevepresident of the nonprofit Hope The Mission, said homeless service providers are losing so much money that they face the prospect of “demobilizing” certain temporary housing sites. Without a rate increase, “14 sites systemwide are going to disappear,” he told the committee.

“And this is not an isolated incident,” he said. “In fact, this is a clear warning that the homeless services system is on the brink of collapse.”

Vansleve made his comments a day later voters approved Measure Aat the county level half cent sales tax This is expected to generate $1 billion per year for homeless services and affordable housing. That measure, and its recent passage, is now a topic of conversation in the fight over the fees the city and county pay homeless service providers.

“The people of Los Angeles want this crisis to be resolved. They are willing to finance real solutions. That is what the Measure A passage tells us,” he said. Jerry Jonesexecutive director of the Greater Los Angeles Coalition on Homelessness, which represents “55 nonprofits on the front lines of homelessness.”

Jones and the coalition are pushing the city to raise the rate at certain homeless facilities to $89 per bed per night starting Jan. 1, up from a range of $60 to $66. Facilities with fewer than 50 beds should increase even more, he said, to $116 per bed per night.

The coalition has also been pushing for an even bigger increase starting July 1 that would raise the nightly rate to $139. That amount, Jones said, would reflect the true cost of temporary housing services: staff, meals, security, insurance and other expenses. The figure first appeared in a third party analysis released earlier this year by the Los Angeles Homeless Services Authority, he said.

Jones said staff at many interim housing sites are struggling to make ends meet, even as they perform critical work for the city. Their financial problems have contributed to high staff turnover at nonprofits that provide services to the homeless, he said.

City budget officials acknowledge they have not been paying all the costs incurred by homeless services groups and have proposed a series of rate increases over the next nine months. But the increases they propose are smaller than those sought by the coalition.

under the city ​​proposalHomeless interim housing facilities with 51 or more beds would see the nightly rate reach $69 on Jan. 1, then rise again to $89 per bed on July 1. Smaller facilities, those with 50 beds or fewer, would see an increase in the bed rate per night. to $79 on January 1, then to $116 on July 1.

City administrative officer Matt Szabo rejected the $139 fee cited in the study, saying the figure includes some services the city already pays for in other ways. That increase, if approved, would add at least $186 million to the city’s budget in 2025-2026, Szabo said.

When asked about the nonprofit coalition’s warnings, Bass said the city welcomed the passage of Measure A, which doubles the existing quarter-percent sales tax for homeless services.

“I’ll tell you one thing: We have no intention of closing facilities and leaving people on the streets,” Bass said at a news conference in the San Fernando Valley on Thursday. “Fortunately, with Measure A we are not going to have to put people out on the streets.”

Some council members seemed more frustrated with the situation, which comes amid a major financial crisis for the city. Council members are already planning a new round of cuts to balance the budget and replenish the city’s reserve fund.

If the council does not provide nonprofits with the raises they have been demanding, those organizations could end up running “unsustainable deficits” and closing interim housing sites, the council member said. Bob Blumenfieldwho is part of the homeless committee.

But if the council agrees to pay higher rates, there might not be enough money in the budget to keep all of the city’s interim housing sites open, Blumenfield said.

In that scenario, he said, the city would be the one to decide which facilities would close.

To further complicate matters, the city is paying a different, higher rate to nonprofits contracted under the mayor’s Inside Safe homeless initiative, which has moved unhoused residents into dozens of hotels and motels. and currently pays service providers $110 per bed per night.

Councilor Monica Rodriguezwho sits on the homeless committee, expressed frustration that the city is paying one fee for one set of temporary housing units and a higher fee for those overseen by the mayor.

It will be difficult to keep a lid on costs, Rodriguez said, when a city program is already paying a higher rate.

“We are negotiating against ourselves,” he said.

Clara KargerBass spokesperson said rates are higher for Inside Safe because “more is expected” in that program. The higher rate has ensured that homeless services groups have the ability to help “more people than ever get off the streets and stay in their homes,” he said.

“We wanted to raise the level of service and saw the results,” Karger said in an email.

The council must make a decision by the end of the month for the increases to take effect by January 1. City officials are seeking to increase rates in coordination with Los Angeles County, which also pays for interim housing services.

State of play

— NO SURPRISES: The votes are still being counted, but so far there have been no surprises in the city. three council races. Councilor Heather Hutt easily defeated lawyer grace yo in a district that stretches from Koreatown to the Crenshaw corridor. Former state assemblyman Adrian Nazarian I was way ahead of the small business owner Jillian Burgos in the San Fernando Valley. And on the east side, the tenants’ rights attorney Ysabel Jurado Defeated councilor Kevin de Leon, who had been politically wounded by the two-year-old audio leak scandal.

— FINALLY, A CONCESSION: De León conceded the race on Friday afternoon, congratulating Sworn about a “well-fought campaign” and wishing him success at the head of the district. “The future of our district is bright and I remain committed to continuing the fight for equity, opportunity and dignity for all Angelenos,” he said on Instagram.

— GO, GO, GASCON: former federal prosecutor Nathan Hochman deeply defeated Los Angeles County District. Lawyer. Jorge Gascon on Tuesday. Gascón, who came to power in 2020 on the promise of criminal justice reform, attributed the defeat to the “rightward shift across the United States.”

— KNIFE EDGE: Measure G, Los Angeles County’s ballot measure to expand the size of the Board of Supervisors and create a new countywide elected executive, garnered just over 50% of the vote on Friday. Supervisor Lindsey Horvathwho spearheaded the measure, said the latest count “demonstrates what is possible with a new generation of leadership.”

— AVOID PRISON: Was a crucial witness in the federal government’s corruption investigation into City Hall. Now, Jorge Esparzawho served as a former councilor Jose Huizar special assistant, has been sentenced to three years probation. Two other figures in the extortion case, former lobbyist Morrie Goldman and real estate advisor George ChiangHe also received parole this week.

— HEAD IN CHARGE: The Town Hall signed in mayor Karen Bass‘elect a new police chief, vote 11-2 to confirm former county sheriff Jim McDonnell. Councilors cast their votes after questioning McDonnell about strategies to protecting undocumented immigrants during the next Trump administration. Councilors Eunis Hernandez and Hugo Soto–Martinez voted no.

— GET THE MOVING VAN: County Board of Supervisors voted acquire one of the most prominent skyscrapers in downtown Los Angeles for $200 million. Supervisor Janice Hahn He cast the only vote against the purchase, saying that moving county agencies out of the Kenneth Hahn Hall of Administration would devastate the downtown Civic Center.

FAST BLOWS

• Where is Inside Safe? The mayor’s program to combat homelessness was held at an encampment outside the Silver Lake Hotel, which has been used as an Inside Safe facility for more than a year. That site and several others visited by Inside Safe this week are in the Soto-Martínez district. Inside Safe also visited the area around the Shatto Recreation Center in Koreatown, represented by Hutt.

• On the agenda for next week: The City Council canceled next week’s meetings to allow members to attend the National League of Cities conference.