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Local shelters warn of a 'fiscal cliff' as state and federal funding wanes
Summary
Community Human Services and Gathering for Women told the council two shelters that serve women and families face a growing funding shortfall. Each program costs about $1.2 million a year; together they achieve high exits to temporary or permanent housing but project a structural deficit beginning next fiscal year without new funding.
Leaders of Community Human Services (CHS) and Gathering for Women briefed the council on a looming funding shortfall for two shelters that serve single women and families in Monterey County, urging city leaders to consider creative options to sustain shelter services.
Robin McCrae, CEO of CHS, said the organization and its partner operate Casa No Buena and Schuman Hearthouse, each serving roughly 35 beds and providing case management, meals, showers and housing navigation. McCrae said the programs have recorded strong housing outcomes: CHS reported that Casa No Buena moves about 50% of clients into permanent housing and an additional 25% into temporary housing; Schuman Hearthouse reported 57% to permanent housing and another 17% to temporary housing. Combined, the programs reported roughly 75% of exits to temporary or permanent housing.
"We are facing a fiscal cliff," McCrae told the council, describing an emerging structural deficit as some federal and state pandemic‑era funds have diminished and other funding streams shift toward capital (shelter infrastructure) rather than ongoing operating costs.
Both organizations said each shelter costs about $1.2 million a year to maintain. They reported declining or uncertain renewal levels for some grants (including HAP/HEAP and ESG funds) and urged cities to help identify partnerships or one‑time resources to avoid reductions in services, phased closures or conversion to overnight‑only shelters.
Councilmember McDonald, who serves on the CHS board, praised the organizations’ outcomes and noted the importance of sustaining case management and operations. McCrae and Gathering for Women offered an open‑house tour for councilmembers so they could see program operations and client supports firsthand.
What’s next: CHS and Gathering for Women will continue seeking government and private funding, and the council said it would consider opportunities to support local shelters and include the issue in upcoming budget and policy discussions.
