Portland Solutions budget holds shelter spending, plans outreach expansion; two temporary sites slated for decommissioning

Assistant City Administrator Annie Vonberg said Portland Solutions is the largest and most complex element of the city administrator’s budget and that much of the proposed shelter spending is funded with one‑time or non‑city resources.

“First, a substantial part of the alternative shelter program and the overnight shelter program, are covered by 1 time funds and non city resources,” Vonberg said. She told council the administration anticipates requesting a roughly $4,000,000 carryover of one‑time general fund underspending in a fall budget adjustment.

Vonberg said the proposed budget includes operational changes for alternative shelters and named two sites the administration plans to decommission: Peninsula Crossing has already been decommissioned and the Sunderland RV site is not continued in the proposed budget. Portland Solutions staff said contracting for sites is being tightened as the city gains operational experience.

Council members raised the city’s intergovernmental agreement (IGA) with Multnomah County’s joint housing office. Councilor Smith said the city’s budget appears to assume expanded city‑run homeless services that may duplicate or conflict with the IGA. Jordan and other staff responded that the mayor’s proposed budget is not yet adopted and that conversations with the county are ongoing. The administration acknowledged political and fiscal stress across partners has driven some changes and said the city will continue to coordinate with county partners.

Funding and program details presented to council included: - The administration anticipates asking to carry over about $4,000,000 in one‑time general fund underspending into the next budget year (to be requested in a fall adjustment). The carryover was described as anticipated underspending, not yet confirmed. - The administration said it expects $9,900,000 in state funds but noted the amount had not been voted on and was not guaranteed. - The proposed budget includes just under $1,000,000 in opioid settlement funds to support 50 recovery beds at Bybee Lakes. - The Street Services Coordination Center (SSCC) package requests 10 additional FTE for outreach capacity, including handling 311 outreach requests, high‑impact camp outreach and alternative shelter referrals. - The Public Environment Management Office (PEMO) budget included a package for additional sidewalk cleaning around shelters and high‑impact neighborhoods.

Skyler Barkanoff, director of Portland Solutions, told council the county’s recent cuts to a 25‑person navigation outreach team were a factor in proposing additional city outreach capacity. “The county is cutting basically a 25 person navigation outreach team that actually has worked really closely with our impact reduction program for the last few years,” Barkanoff said. He said Portland Solutions outreach staff are prepared to partner with county outreach coordination, Portland Street Response and other first responders.

Councilors pressed for details about plans for the physical sites: several said neighbors reported improvement where shelter sites had been established and asked for specific transition plans before decommissioning. Councilors also raised questions about backfilling county services with permanent city funds and the long‑term implication of adding outreach positions as county functions diminish.

Why it matters: Portland Solutions’ budget choices determine how the city funds shelter capacity, outreach and neighborhood impacts. The proposed reliance on one‑time funds, pending state funds and settlement dollars affects fiscal sustainability and the need for future council decisions.

No formal council vote was taken; councilors said they would consider amendments and budget notes in coming weeks.