Multnomah County faces potential cuts for homeless services
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The Homeless Services Department operates dozens of the county's tiny home villages, including this one on North Portland Road. Photo: Courtesy of City of Portland
The homelessness services provider for Multnomah County is facing a $104 million shortfall — a quarter of its entire budget — in the next fiscal year, and officials are calling on the regional and state governments to help avoid drastic cuts to programs.
Why it matters: The Homeless Services Department, formerly the Joint Office of Homeless Services, operates dozens of the region's shelter sites and outreach efforts aimed at getting people off the streets and into permanent housing.
Driving the news: In a news release Friday, County Chair Jessica Vega Pederson said the shortfall stems from "revenue fluctuations due to the volatile nature of the Supportive Housing Services tax."
- Voters approved the regional tax on high-earning households and businesses in 2020, but revenues from it have since dipped, and the future for federal help — to make up for expiring pandemic funds — is unclear under the Trump administration.
By the numbers: Vega Pederson is requesting $30 million from Metro in "unspent administrative funds" and $55 million from the state's upcoming biennial budget, which lawmakers will craft in this legislative session.
Threat level: Without those funds, the county estimates it would have only $316 million available to fund its homeless services agency — down from $395 million in its adopted budget.
- Two adult congregate shelters could face abrupt closure, and an employment program for homeless people could be eliminated entirely, among other outlined cuts.
- Multnomah County makes up nearly 19% of the state's population, but over 30% of Oregon's homeless population — about 13,400 individuals — live here.
What they're saying: Dan Field, director of the Homeless Services Department, told OPB that Multnomah County "is the economic and social center of our region. And it's also where the challenges of homelessness are most pronounced."
- Gov. Tina Kotek said the entire state, not just Portland, is dealing with homelessness and housing affordability. She also questioned why the county "decided to make cuts to homeless services in their general fund."
- "I am not prepared to take a position on whether to send one more state dollar to Multnomah County unless and until my office and the legislature have clear answers."
Between the lines: The City of Portland, Multnomah County, Metro and the state are all facing their own budget constraints this year.
- It is unclear where additional funding for the homeless services agency — and Mayor Keith Wilson's $28 million plan to create 1,500 more shelter beds — will come from.
The intrigue: The new budget woes are a reversal from three years ago, when the agency was criticized for massively underspending the tax dollars it received.
What's next: This week the Portland City Council will review how Wilson's shelter plan fits into its looming financial crisis.
- Meanwhile, Vega Pederson said the county is working with Washington and Clackamas counties on long-term funding efforts if people experiencing homelessness begin to seek out services there.