A new report identified more than $50 million of unspent money held by the city of Los Angeles in idle special funds, of which $10 million could be used for housing and homelessness functions, according to the City Controller’s Office.
In analyzing $5.43 billion held in 661 different special funds, the controller’s office discovered special funds that have had no activity for at least two years — and 62 have been untouched for more than 10 years.
While there are often specific restrictions on expenditures from these funds, the analysis showed more than $50 million in idle resources that city departments could use to meet the purposes for which the funds were collected.
That $50 million includes more than $10 million earmarked for housing and homelessness expenditures.
“Our commitment to transparency and accountability impels us to continually press for maximizing the impact of public resources,” LA City Controller Kenneth Mejia said in a statement. “Prudent reserves are vital for long-term fiscal sustainability. Yet letting funds sit in obscure accounts for years at a time shortchanges the people of Los Angeles at a time when they are insisting on greater responsiveness from their city government.”
The report includes detailed proposals for utilizing these untouched resources, calling on departments to submit expenditure plans for putting these idle funds to work
Mejia also recommended the termination of a number of these special funds to redeploy their balances — or to return them to the source, including approximately $600,000 to the city’s General Fund or General Fund reserves.
Chief Deputy Controller Rick Cole added that the Controller’s Office will “continue to monitor the use of public resources and work for systemic change that eliminates bureaucratic barriers which slow progress.”
