If these guys are going to break any laws of course they shouldn't be there. Then again they may be just trying to make a point and getting publicity because they think the city should make cuts some where else due to the crime level in their city. It is far more effective than just complaining to the deaf ears of city government who will do what they want even if you vote against it.
Why are they out of money? Stupidity? As long as people spending our money are not held accountable this constant waste will continue.