The county homeless services department is facing a devastating budget deficit, which could require the early closure of two shelters and cut other homeless programs in the upcoming fiscal year, which starts on July 1, Multnomah County Chair Jessica Vega Pedersen said Friday.
The county’s general fund and the amount of homeless services tax revenue that the Metro regional government collects from businesses and high-income earners in the tri-county area would be impacted by the county and region’s declining or stagnant tax receipts over the last year. The issue is made worse by the fact that federal funding from the pandemic has largely dried up. Additionally, under President Donald Trump, federal spending on homeless services, like other federal funding sources, is questionable.
According to her budget consultants, there will be a $104 million shortfall between the county’s available finances and the cost of continuing its present homelessness services. Vega Pedersen called on Metro and the state to cover $85 million of that amount.
To the benefit of our whole region and state, Multnomah County has fulfilled its commitment to expedite the release of funds in ways that are improving the quality of life in neighborhoods throughout the county, according to Vega Pedersen.
In order to establish regional spending priorities moving ahead, she also suggested that representatives from Clackamas County and Washington County agree to hold discussions with Multnomah County officials. Neither county could comment at this time.
“Hundreds of shelter beds and other services currently provided by the county’s homeless services department would disappear if the county is unable to fill the budget gap,” Vega Pederson stated during a press conference. She refused to specify which programs would be discontinued. According to county authorities, a more thorough proposed budget for the homeless services department is anticipated to be released late Friday afternoon.
Vega Pedersen claimed to have discussed her proposal for $55 million from state funds for the budget of the upcoming fiscal year with Governor Tina Kotek. She is making the case that Multnomah County should receive a bigger share of the funding because it bears a disproportionate amount of the burden of aiding the state’s homeless population.
Multnomah County is home to around 18% of Oregon’s population, according to U.S. Census data. Additionally, according to the most recent legally required count, 31% of the state’s homeless population resided in Multnomah County in 2023. This spring, updated figures from a January 2025 count are anticipated.
To help us continue our vital work providing homeless services and averting more crises on our streets, Vega Pedersen also wrote to Metro President Lynn Peterson on Friday, requesting $30 million of the agency’s unused administrative funds. The letter said the county will give Portland $10 million of that.
Speaking on background, several local officials said they were taken aback by the enormous potential deficit.
In an email to The Oregonian/OregonLive, Metro spokesperson Nick Christensen stated, “Our team will be working over the coming days to come up with ideas on how to address this.” Helping individuals find housing and shelter, as well as sustaining our achievements, should be everyone’s primary focus.
For The Oregonian, Lillian Mongeau Hughes writes about mental health and homelessness. For advice or inquiries, send her an email [email protected]. Or follow her on X at @lrmongeau or [email protected].
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