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Board approves series of budget modifications to cover $57.1 million shortfall in Homeless Services
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Summary
Multnomah County approved four budget modifications April 10 to address an estimated $57.1 million shortfall in the Joint Office of Homeless Services for FY25, using a mix of state and federal grants, program pauses, contingency and reserve funds while avoiding cuts to existing shelter capacity.
The Multnomah County Board of Commissioners approved four budget modifications Thursday designed to close a $57.1 million shortfall in the Joint Office of Homeless Services (JOHS) for fiscal year 2025.
The board voted to: accept additional state and federal sheltering funds; reprogram underused program budgets and one-time carryover; authorize use of the regional strategic implementation fund (RSIF) carryover; and draw from the department's stabilization reserve and county contingency to balance FY25.
The shortfall stems from three factors JOHS staff outlined: $26.5 million in spending above plan (carryover drawdown), an $8.5 million shortfall in tax collections versus forecast and a $22 million downward adjustment by Metro in the SHS (Supportive Housing Services) revenue forecast. Finance manager Antoinette Payne summarized the result as a $57.1 million gap that reduces the department's SHS budget from $304.8 million to an adjusted $247.7 million for FY25.
JOHS Director Dan Field told the board the department aimed to —manage resources effectively and prudently— so the county can —achieve the mission and the outcomes— of the homeless services system. The department's plan combined one-time and ongoing measures while prioritizing service continuity.
Key elements the board approved:
- R2 (JOHS 0042530202B): Accept an additional federal/state appropriation to the federal-state fund (stated on the agenda as $2,348,783) to support 61 household placements and related shelter-to-housing connections. The board approved R2 by roll call (Moyer, Singleton, Bridal Edwards, Jones Dixon and Chair Vega Peterson voted yes).
- R3 (JOHS 525): Programmatic adjustments to reduce $17.8 million in planned spending this fiscal year by harvesting underspend and delaying elements of planned expansions that had not yet opened. Antoinette Payne and Deputy Director Anna Plumb told the board these reductions would not reduce current shelter capacity; rather they pause planned new placements, units and tenant-based vouchers that were budgeted but not yet operating this year. The board approved R3 by roll call.
- R4 (JOHS 06/5900B): Use $9.3 million from the Regional Strategic Implementation Fund (RSIF) carryover (a tri-county planning-body set-aside administered by JOHS) to support regional priorities such as the Homeless Management Information System, coordinated entry, landlord recruitment and technical assistance. The Tri-County Planning Body voted earlier to permit the use of those accumulated funds; the board approved R4 by roll call.
- R5 (JOHS 00725300068): Rebalance one-time carryover by authorizing $23,476,045 for stabilization reserve and contingency to balance the shortfall. JOHS warned that using reserves will leave limited buffer for additional shortfalls this fiscal year and the county must adopt a plan to replenish reserves in future budgets; CFO Eric Arellano said county policy requires a restoration plan and suggested replenishment within a three-year window. The board approved R5 by roll call.
Board members asked multiple detailed questions. Commissioners emphasized two priorities: avoid interrupting services to people already in shelter or housing programs and seek more frequent, collaborative forecasting with Metro. Anna Plumb said the programmatic reductions target money committed to units or vouchers that are not yet operational, including 200 tenant-based vouchers planned for FY25 and five delayed permanent supportive housing projects; she reiterated the department is not removing currently operating beds.
Several commissioners expressed concern about the structural FY26 funding gap and asked staff to continue work on FY26 options, to coordinate with other county departments for underspend that could be used, and to press Metro for more frequent and transparent revenue forecasts.
The board recorded the roll call approvals for the budget modifications. Commissioners Moyer, Singleton, Bridal Edwards, Jones Dixon and Chair Vega Peterson voted yes for each item.
Provenance: JOHS budget gap presentation begins at the board item R.2 and concludes after R5 when the final budget modification was approved by roll call.
