Categories: Oregon News

‘Gross negligence’: MultCo’s sudden budget shortfall draws skepticism from state, local leaders

PORTLAND, Ore. (KOIN) – Local government leaders are questioning Multnomah County’s recent request for additional funding to help fill a budget hole that, left empty, could impact the county’s ability to serve its homeless community.

Last week, Multnomah County Chair Jessica Vega Pederson sent letters to the State of Oregon and Metro to provide more resources to help maintain services including shelter beds, rent assistance, and more.

But leaders on a regional and state level were shocked by the sudden ask, which included an additional $55 million from the state and $30 in unspent administrative funds from Metro.

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KOIN 6 News immediately reached out to Gov. Tina Kotek, who said she had “outstanding questions and potential concerns about how the county decided to make cuts to homeless services in their general fund.”

Closer to home, Portland Mayor Keith Wilson said he was surprised, and Metro Councilor Ashton Simpson criticized the request.

“Why the $1.4 million ask on a Friday afternoon when we’ve had a year of conversation, and to drop it on everybody — not even their own commission knew that this was coming,” Simpson said. “To be blindsided like that after, again, having months and months of continued conversation, and to not do that, is again, gross negligence.”

During a press conference on Friday, Vega Pederson publicly announced these budget concerns for the first time — calling it a “catastrophic” funding shortage for programs currently funded by the Supportive Housing Service measure and the Multnomah County general fund.

Then on Tuesday, county leaders shared that nearly 2,500 people in Multnomah County who were homeless halfway through 2024 had successfully found permanent housing by the end of the year thanks to funding that is not at risk in FY 2025-26.

Recently released data from the second half of 2024 reveal that the county’s Homeless Services Department recorded 2,469 people were in housing and were no longer experiencing homelessness by the start of 2025.

“We are providing the right services at the right time for many people who have desperately needed help for so long,” Chair Jessica Vega Pederson said. “We are not close to done — but this last quarter of investment and momentum should give us all hope for the future.”

Data show that 6,288 people found shelter between July and December 2024 through the county’s contracted providers and 7,142 people were able to avoid eviction with emergency rent assistance.

The Homeless Services Department, previously known as the Joint Office of Homeless Services, said these numbers mean that 13% more people have permanent housing, 17% more people have access to shelter, and 22% more people dodged eviction than in the second half of 2023.

Chair Vega Pederson said this is a sign that the county’s programs are moving more people off the streets with shelter and housing. 

“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,” Vega Pederson said. “We’re sheltering and housing more people than ever before — and preventing more people from becoming homeless.”

However, the county claims this progress could be squashed due to an upcoming budget shortfall of 25% overall — with $104 million on the chopping block for housing and shelter assistance.

Department Director Dan Field said last year’s improvements are a sign that these funds should be prioritized by state leaders.

“We’re making difficult decisions right now about how to manage shrinking resources while continuing to serve our community,” Field said. “The pace of progress we’re seeing won’t continue unless we find additional resources to sustain the work.”

Stay with KOIN 6 News as we continue to follow this story.

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