Los Angeles County has implemented a $1 billion sales tax increase to fund homelessness programs, despite a recent court-ordered audit revealing significant mismanagement of $2.3 billion in homelessness spending by the city of Los Angeles.

The tax increase, which took effect on April 1, was approved by voters in November and is expected to generate an additional $1 billion annually. The funds will be distributed based on the county’s homeless population, with 60% allocated to homeless services, 35.75% for affordable housing and rent assistance, 3% for housing production, and 1.25% for accountability, data, and research.

The tax hike comes as both Democrats and Republicans raise concerns about the effectiveness of Los Angeles’ homelessness programs. The Los Angeles County Board of Supervisors is even considering dissolving the Los Angeles Homeless Services Authority (LAHSA), which manages billions of dollars in funding for homeless services.

Criticism of LAHSA has intensified following revelations that its CEO, Va Lecia Adams Kellum, who earns $430,000 per year, violated conflict-of-interest policies by signing contracts benefiting a nonprofit where her husband works.

Republican leaders have strongly opposed the tax increase. “The definition of insanity is doing the same thing while expecting different results,” said Los Angeles Republican Party Chairwoman Roxanne Hoge.

“We cannot keep electing people who view our pocketbooks as their own personal piggy bank for enriching NGOs and increasing criminal vagrancy in Los Angeles,” he added.

Despite concerns over past financial mismanagement, county officials maintain that the new funding structure will ensure greater accountability and effectiveness in addressing the homelessness crisis.