Multnomah County’s homeless services are facing a 25% reduction in the coming months: a $104 million shortfall for this service area alone. The expected shortfall is the result of grim budget forecasts of Supportive Housing Services dollars and County general funds.

Without a solution to this loss of revenue, these cuts will result in increased homelessness and suffering for our community. This would mean closing shelter beds, slowing progress to expand shelter, eliminating programs that move people from the streets to shelter and housing, cutting rent assistance that directly prevents families from being evicted into homelessness, and drastically reducing services for people with severe mental health and substance use challenges.

Earlier today, Chair Jessica Vega Pederson sent letters to Metro and the State of Oregon requesting they each provide emergency resources to prevent devastating cuts to critical services. She also sent letters to Washington and Clackamas counties asking for their collaboration in addressing near-term and long-term regional funding challenges that reflects the impact homeless services have across county lines as we address this crisis together.

“Our state and our region cannot afford to see massive cuts to the services addressing homelessness” said Chair Jessica Vega Pederson. “Multnomah County has done what we said we would by getting money out the door quickly in ways that are improving conditions in every neighborhood we serve – to the benefit of our entire state and region. We’re sheltering and housing more people than ever before – and preventing more people from becoming homeless. We can’t go backward.”

While the County plans for revenue fluctuations due to the volatile nature of the Supportive Housing Services tax, Metro’s most recent forecast y makes clear the impact will be more dire than expected. When spread across the next two fiscal years, the reduction in Supportive Housing Services funding for Multnomah County alone is over $52 million. The FY 2025-26 budget transmittal letter for the Homeless Services Department (formerly the Joint Office of Homeless Services) that will be published today makes it clear how devastating the shortfall will be.

Facts:

Multnomah County has 20% of the state’s overall population, but serves more than 40% of the state’s homeless population.
Multnomah County allocated every dollar of Supportive Housing Services revenue it received from Metro last fiscal year. It has continued that into this current fiscal year — directing funds quickly and efficiently to provide critical services.
Multnomah County is spending down the majority of its reserves and contingencies to maintain as many services as possible.
Multnomah County and the City of Portland now provide nearly 3,000 year-round shelter beds and 200 winter-only overnight shelter beds. On average, these beds are more than 90% occupied on any given night.
In the last three months of 2024 (October through December), Multnomah County providers ended homelessness for about 1,425 people by moving them directly into housing, with the supportive services that are proven to help people stay off the streets.
In the last three months of 2024, 2,214 people newly entered shelter, meaning they left the streets for a safe and stable place to sleep.
Additionally, in the last three months of 2024, 4,367 people were able to avoid eviction with emergency rent assistance.
Most people in permanent housing programs are able to stay there. Data from July through December 2024 shows 90% of people in permanent supportive housing were still housed one year later, and 88% of people in rapid rehousing were still housed one year later.

“While we are making progress, significant work remains. Taxpayers want to see us pick up the pace of progress and work together.” Chair Vega Pederson said. “That will not be possible if we are forced to make drastic cuts. We cannot let that happen for the good of our region and state. With this grim budget outlook, Multnomah County cannot do this alone.”

“We are asking for help from our partner governments to prevent catastrophic cuts and focus our regional resources on the highest needs for homeless services in our community,” said Homeless Services Department Director Dan Field. “We must come together as we are starting to turn a corner after years of hard work. Now is not the time to take our foot off the pedal. When we need more housing and shelter, Oregon can’t afford to lose critical services in Multnomah County.”

This budget shortfall could mean people experiencing homelessness may try to seek services in neighboring counties who are unprepared for the influx.

“Preventing homelessness, increasing our shelter capacity, and ultimately ending homelessness for people through housing placement can’t be competing priorities — even in tight budget times. We need to fund the balance of resources across all three of those pieces, so we are making progress on all fronts,” said Homelessness Response System’s Director Jillian Schoene. “With more resources, right now, where the need is greatest — we can get through and beyond this crisis moment.”

Chair Jessica Vega Pederson is asking for existing resources that have already been raised from taxpayer dollars, and does not request any new taxes.

Request to State of Oregon: Additional $55 million
Request to Metro: $30 million, from unspent existing administrative funds
Request to Washington and Clackamas Counties to work with us on near-term and longer-term funding solutions for the region.

Source: Multnomah County