Supervisors Approve $843 Million Homeless Budget with Nearly $200 Million in Cuts

[Editor’s Note: This article originally contained a significant error. Pasadena’s Measure A allocation, rather than being stable, has been cut. We apologize for the error, which has been corrected below.]

Pasadena’s $1.32 million allocation from Los Angeles County’s Measure A homeless services fund is headed towards a significant cut next fiscal year under a new $843 million County Board of Supervisors spending plan approved unanimously Tuesday, a plan that slashes nearly $200 million from county programs including outreach teams serving areas outside the City of Los Angeles.

Pasadena’s direct Measure A CoC allocation is being cut from $1,324,440 in fiscal year 2025-26 to approximately $650,000 in fiscal year 2026-27—a roughly 50% reduction.

The budget, approved 5-0 by the Board, also cuts $92 million from the Pathway Home interim housing program—shrinking it from 20 sites to seven—and reduces $105 million from other services including street outreach and housing navigation. Pasadena is one of only three cities in the county, along with Long Beach and Glendale, that operates its own Continuum of Care and receives direct Measure A allocations rather than relying solely on county-administered programs.

“We have a gap between our projected revenue and what the status quo costs,” said Sarah Mahin, director of the county’s Department of Homeless Services and Housing, explaining that rising shelter operation costs and the expiration of federal and state COVID-era funding drove the cuts.

For Pasadena, the implications are layered. The city’s direct $1.32 million allocation funds Union Station Homeless Services to provide rapid rehousing assistance to 12 to 15 households and housing navigation services to 20 to 25 individuals annually. That funding stream remains intact. But county outreach teams that operate in unincorporated areas and contract cities throughout the region face staffing reductions that could affect response times in neighboring communities.

Shawn Morrissey, vice president of advocacy at Union Station Homeless Services, the San Gabriel Valley’s largest social service agency, said the cuts will force difficult choices.

“When you’re pulling resources from outreach, you’re often pulling from the people who are hardest to reach,” Morrissey said. “These are folks who have been on the streets the longest and need the most persistent engagement.”

The supervisors partially offset the cuts with $21 million in higher-than-expected Measure A revenue, restoring about 100 shelter beds and funding for two dozen full-time outreach workers that had been slated for elimination. Supervisor Kathryn Barger, whose Fifth District includes Pasadena, also helped secure $5 million to partially restore interim housing funding specifically for Pasadena, Long Beach, and Glendale, which totals $10 million in the current annual allocation.

The spending plan includes a motion by Supervisor Lindsey Horvath requiring county staff to report back in 60 days with a fraud prevention plan following an audit that found millions in misspent homeless services funds.

Supervisor Kathryn Barger, who represents much of the San Gabriel Valley, joined colleagues in supporting the budget while acknowledging its limitations.

“No one is satisfied with where we are,” Barger said.

The budget takes effect July 1. Measure A, a sales tax approved by county voters in 2024, is expected to generate about $1 billion annually for homeless services once fully phased in.

“This is a transition year,” Horvath said. “We’re building the plane while flying it.”