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Salinas council delays action on shelter contracts as staff detail funding cliff for homeless services
Summary
City staff told the council May 27 that one‑time grant funding has supported most homeless programs but will be exhausted by FY 2026–27; councilors directed staff to return with more detail and the consent items tied to shelter contracts were deferred pending that report.
City staff gave the Salinas City Council a wide‑ranging update on May 27 on homeless response programs that rely heavily on one‑time grant funding and face a funding cliff in coming years.
Assistant City Manager Lisa Murphy and Homeless Services Manager Keishla Lopez told the council the city and partners have received more than $76 million in grants since 2020 and added roughly $8.4 million from the general fund to support emergency shelter, outreach, rapid re‑housing, motel interventions and acquisition/operations for temporary housing. Staff said about $57.6 million has been spent to date and that approximately $18 million in remaining grant commitments will be expended by the end of fiscal year 2026–27, putting many ongoing programs at risk.
The presentation listed program outcomes through 2024: the Chinatown Navigation Center has served roughly 753 individuals and placed 37 in permanent supportive…
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