Multnomah County, which includes Portland, Oregon, is dealing with a $104 million budget shortfall in homeless services. The shortage is due to lower-than-expected revenue from the Supportive Housing Services tax and gaps in the county’s general fund. As reported by KGW, the county may have to reduce shelter beds, slow expansion plans, cut street-to-shelter programs, lower rent assistance, and reduce services for people with severe behavioral issues.
Multnomah County Chair Jessica Vega Pederson has requested $55 million from Oregon and $30 million from Metro’s unspent administrative funds to avoid a 25% cut to homeless services. Oregon Governor Tina Kotek said, "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." Metro is reviewing the funding request and stated, "We owe it to them, and to each other, to make sure they stay housed or sheltered and don’t end up back on the streets – while also working to end chronic homelessness in the Portland region," as stated by KPTV.
According to KATU, the predicted $52 million shortfall from the Supportive Housing Services tax for the years 2025 and 2026 is a primary cause for concern. The Supportive Housing Services tax has previously experienced fluctuating revenues due to its dependence on income from wealthier residents and businesses, which can be unpredictable. Additionally, reductions in funding from the City of Portland's general fund have contributed to the issue. "We cannot let that happen for the good of our region and state. With this grim budget outlook, Multnomah County cannot do this alone," Chair Vega Pederson told KGW.
As noted by KATU, the county may have to cut homeless services by 25% because of a budget deficit. Officials are asking for help from Washington and Clackamas counties. The county has used all its Supportive Housing Services funds, but relying on leftover money from previous years shows the financial problems it now faces.
