The City of Austin has pulled the plug on a proposed $2 million study by McKinsey & Company, intended to critique the municipality's handling of homelessness, according to a memo by Interim City Manager Jesús Garza. The study, deemed to be a critical collaboration among Austin, Travis County, Integral Care, and Central Health was canceled on Thursday after it became clear that not all the parties would fully cooperate or fund the initiative, as reported by the Austin Monitor.
Earlier this month, Travis County Commissioners had already backed out of contributing $400,000 toward the effort. "The conditions for the assessment have changed such that we cannot achieve the community-wide impact originally envisioned," Garza stated.
Giving voice to the complications involved, City Council member Ryan Alter expressed to the Austin Monitor a concern that without complete buy-in, the study would result in "a report that would sit on the shelf." Mayor Kirk Watson lamented the situation, stressing the missed opportunity to enhance services and coordination in addressing homelessness, a shortfall that could lead to the squandering of resources meant to aid the community's most vulnerable.
Meanwhile, city leaders are considering alternative approaches to tackling homelessness, especially in light of an expected decline in federal funding, as explained by Walter Moreau, the executive director of the nonprofit Foundation Communities, in his talk with the Austin Monitor. Moreau advocated the use of local taxation powers by the city, county, and Central Health to address the issue, as the end of programs tied to the American Rescue Plan signals a tightening financial future.
Efforts to address the growing issue have been further complicated by the state legislature, which Garza revealed in a KXAN interview signals to pass laws potentially restricting cities' options for supporting the homeless. This deepens an already complex problem for Austin city leaders, who are currently grappling to find an effective strategy to decrease homelessness, a number that has not diminished, but "in fact have increased," Garza told KXAN.
