In an effort to partially close a significant funding gap, the Multnomah County Board of Commissioners has approved a budget modification for the county's Homeless Services Department. As per a report by Multnomah County News, a $28 million shortfall in the department's FY 2025-26 budget has prompted reallocating $20 million to ensure that over one thousand individuals can maintain their current housing and prevent the closure of 214 shelter beds.
The deficit emerged after state contributions, originally based on Gov. Tina Kotek’s recommended budget, failed to materialize at the expected levels—leaving the Homeless Services Department with about $26 million instead of the forecasted $54 million. The board opted to immediately act and backfill a majority of the deficit; however, it leaves an $8.7 million gap in rapid rehousing funding, equating to approximately 732 housing placements no longer covered for the next fiscal year.
Anna Plumb, the interim director of the Homeless Services Department, emphasized the shift in strategy due to the new budget climate. "We made the decision that our first priority is to sustain folks in their housing. So we're using the funding to do that," she told Multnomah County News. This reallocation aligns with the department's goal to balance immediate shelter needs against longer-term housing solutions.
To cover the $20 million backfill, several sources are being tapped. These include $6.4 million saved from the stalled East County Homelessness Resource Center project and $4.9 million reallocated from other state resources. An additional $3.8 million in unbudgeted carryover funds and $4.4 million in savings from transitioning to a more flexible sheltering model with motel vouchers also contribute to this fiscal patch-up. Despite this maneuver, Plumb cautioned about future challenges that could further strain the budget.
During the board’s discussion, contrasting views emerged. Commissioners Meghan Moyer and Julia Brim-Edwards voted against the budget modification, expressing concerns about the long-term financial implications and the county's ability to fulfill its housing strategy commitments. In contrast, Commissioner Shannon Singleton, who voted in favor, focused on the necessity of streamlining resources toward housing placement as part of a comprehensive strategy to tackle homelessness.
Service providers relayed the impact that budget reductions might have on their operations. "We’re concerned that the proposal from HSD lacks balance and concentrates nearly the entire reduction in contracted services for housing placement and rapid rehousing programs," said Andy Miller, executive director of Our Just Future, in a statement obtained by Multnomah County News.
Nonetheless, the County is proceeding with its plan following the 3-2 vote in favor of the budget modification. The Board also unanimously approved a budget note instructing the department to prioritize available funds for housing placement out of shelter. The engagement with providers is set to continue as these financial adjustments take effect, shaping a path forward amid constrained resources.
