A recent analysis by ECOnorthwest has unveiled the staggering figure of $724 million spent on homeless services in the Portland area during the 2024 fiscal year. This sum encompasses a range of services, including shelter provision, rent assistance, and street outreach, sourced from local, state, regional, and federal governments, along with private philanthropic contributions.
However, attempting to calculate the amount spent per homeless individual by dividing this total figure by the number of homeless residents in Portland is misleading. Approximately half of the $724 million allocated actually goes towards housing initiatives, such as long-term supportive housing and short-term rent assistance, which do not directly account for individuals included in regional homeless censuses.
Many of those receiving housing aid may have transitioned out of homelessness or, in the case of eviction prevention, were never classified as homeless to begin with. This distinction is crucial, as it skews the perceived financial commitment towards the homeless population.
Currently, only Multnomah County maintains an accurate and complete list of individuals receiving homeless services, while Clackamas and Washington counties rely on a federally mandated count conducted biennially, known for its undercounting problems. Multnomah County’s list is relatively new and, despite its publication in April, did not provide sufficient quality data in the fiscal year 2024 to facilitate an accurate assessment.
Adding to the complexity is the alarming trend of increasing homelessness. According to the National Alliance to End Homelessness, the rate of people becoming newly homeless is outpacing those being rehoused. Multnomah County’s regular updates illustrate this trend, suggesting that the monthly distribution of funds is increasingly spread across a growing population of those experiencing homelessness.
Despite the difficulties in calculating a proper per-person spending amount, John Tapogna, one of the authors of the ECOnorthwest report, asserts that the findings offer invaluable insights for local officials. He emphasizes that this report stands out as one of the most comprehensive analyses of homelessness investments in the United States.
Looking ahead, Tapogna suggests that there is a pressing need to evaluate the effectiveness of these expenditures in relation to tangible outcomes for the different populations served. At present, there is a lack of clarity regarding the costs associated with assisting various groups, such as an unsheltered individual struggling with addiction, a mother escaping domestic violence with her children, or an elderly person whose fixed Social Security income is no longer sufficient to cover rising rent costs.
The disparity in the types of aid necessary for different individuals trails into the broader challenge of evaluating homeless services spending. For instance, an individual with addiction issues may require medical care funded by the Oregon Health Plan, which does not fall under the umbrella of direct homeless services. Meanwhile, the older individual might depend on ongoing rent assistance that prevents them from being categorized as homeless altogether.
Tapogna envisions that a more detailed inventory of all those utilizing homeless services—similar to the list released by Multnomah County earlier this year—could facilitate more in-depth analysis moving forward. Nonetheless, he acknowledges the inherent challenges in pinpointing precise spending figures per homeless individual.
“This is a system that is still relatively new,” Tapogna explains. He notes that the homeless services system has evolved rapidly, moving beyond its previous heavy reliance on federal funding, while also indicating that established systems like K-12 education have had decades to refine their methods for measuring funding effectiveness and outcomes.
He emphasizes that this new report should serve as a foundational tool for policymakers trying to determine how best to allocate funds for homeless services. Yet, he also recognizes the gaps in data and understanding regarding specific expenditures and their impact, indicating the ongoing need for further exploration of this complex issue.
In conclusion, while the financial commitment to homeless services in the Portland area is substantial, accurately determining the per-person expenditure is fraught with complications. The ongoing evolution of the system and burgeoning need for nuanced understanding of funding impacts position this topic as a critical area for continued investigation and policy refinement.
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