Oregon Metro Government Slashes Homeless Services Budgets by $51 million

The Oregon Metro Government budget for homeless services in Multnomah, Clackamas, and Washington counties has been slashed by $51 million for the current fiscal year.

The Supportive Housing Services (SHS) tax was introduced in 2020 to fund homeless services following the post-COVID global societal impact. Metro introduced a 1% taxation program for individuals earning over $125,000 annually and couples earning more than $200,000. Businesses generating more than $5 million annually also pay the 1% SHS tax.

The current Metro budget cut will impact homeless services in all three Oregon counties.

Multnomah County

The county failed to use all the tax dollars made available to fund housing programs and homeless shelters for two years. As part of a plan to remedy the situation, officials spent more money last year than allocated by Metro.

Multnomah expected to receive $149 million from SHS taxation but the final figure was closer to $140. At this stage it is not clear how the shortfall on projected income will affect outreach programs and shelters administered by the county.

Washington County

The county will receive $16 million less than its original $115 million budget. County officials have been instructed to cutback motel voucher programs and COVID-era eviction prevention.

According to Department of Housing Services Assistant Director Jes Larson, Washington has already called a halt to contract expansions and new program launches.

Clackamas County

The county has a homeless services budget cut of $10.6 million, forcing it to halt rent assistance vouchers and new program spending, according to county spokesperson Claire Okeke.

Metro Agreement with the Three Counties

Metro has an agreement with the three counties that requires them to place 10% of program funds into a stabilization reserve to help prepare the counties to deal with fiscal shortfalls of projected revenues.

Metro is reviewing updates extending to the 2050 tax year and is considering lowering the services tax rate from 1% to 0.75% by 2031. Metro believes these steps will make tax revenues more predictable.