Within the next month, the Metro Council will determine whether to put a revised version of the homeless services levy proposed by the regional administration on the May ballot.
Lynn Peterson, the president of the Metro Council, made her priorities for the proposed measure public on Friday. According to Peterson, she wants to cut the tax rate to 0.75% beginning in 2031, increase the income threshold at which the tax would take effect to account for inflation, strengthen control of county spending, and extend the tax until 2050.
In addition, Peterson wants to begin utilizing a portion of the tax money—beyond the amount pledged to the three counties for homeless services—to construct more reasonably priced homes. When Metro’s affordable housing bond expires the next year, that would assist close the deficit. However, that suggestion has angered the chairs of all three counties, who cautioned last year that the governments’ efforts to combat homelessness may suffer if funds are diverted.
The 1% tax on high-income individuals and companies in Multnomah, Clackamas, and Washington counties was initially passed by voters in 2020.
The tax now applies to individuals who make more than $125,000 and couples who make more than $200,000. According to Metro spokesperson Emily Green, over 10% of tri-county area tax filers paid the homeless services tax in tax year 2022, the most recent year for which Metro has state income tax return data.
In an email to The Oregonian/OregonLive, Green stated that corporations generate 45% of yearly tax income, while individuals generate 55%.
Over the past two years, tax revenues have surpassed $330 million, which has led to a significant expansion of services for the tri-county area’s homeless population. In all three counties, however, more people are reported to become homeless each month than are sheltered.
The present tax is scheduled to expire in 2030, notwithstanding the continued necessity.
Built in part with funds from the soon-to-expire Metro housing bond, the Dr. Darrell Millner building in North Portland, seen here in September, offers reasonably priced rental flats for families that were previously evacuated.One of the Oregonians, Dave Killen
According to Peterson’s statement on Friday, if the program expires, money for assistance for thousands of Oregonians who have been able to maintain or secure stable homes because of voters would no longer be available.
However, regional county and city leaders have voiced concerns that the planned adjustments may reduce their required spending on recently established services.
Julia Brim-Edwards, a Multnomah County Commissioner, stated during a work session on Tuesday that she believes it is critical that any ballot measure Metro refers give the counties a guarantee of the amount of revenue they will receive annually.
“We should have something that gives us the assurance that if we make plans and invest in it, they won’t pull the rug out from under us,” she added, if we’re going to make long-term plans and long-term commitments to providers.
Speaking at the work session on Tuesday, county officials also voiced worries about Metro’s inaccurate estimate of the tax income available for the fiscal year 2024–2025. The three counties will get a total of $51 million less this fiscal year than was anticipated in fall 2023, according to the updated forecast, which was made public in December.
According to Green, the proposed reforms are intended to reduce that kind of uncertainty by precommitting each county to a fixed sum each year.
Whether a majority of voters would approve of the reforms is uncertain.
Just 51% of Metro voters said they absolutely supported the proposition based on the title and caption alone, according to a study done just before Thanksgiving. Another 27% said they were leaning toward or would probably vote yes.
Voters continue to be very concerned about homelessness, and surveys indicate that most of them are in favor of village-style shelters like Kenton Women’s Village. Standing on the porch of her home in the women’s village, which is largely financed by funds collected from the Metro homeless services tax, is Lunette Wimberly in October 2023.One of the Oregonians, Dave Killen
However, according to the poll’s results summary by FM3 Research, the California-based political research firm that conducted the survey, success depends on the inclusion of reforms to program administration and oversight because the majority of voters are dubious of the region’s current progress on homelessness.
Of those polled in November, more than a quarter (28%) said they don’t think the tax-funded programs for homeless services are operating as intended.
Nevertheless, support among surveyed voters increased to 54% when accountability measures were included, such as mandating thorough public disclosures of all measure spending and exposing all measure spending to yearly audits.
With 57% of the vote, the initial homeless services tax proposal was approved in 2020.
The proposed ballot measure’s precise wording has not yet been made public. On January 16, Metro will convene a work session to discuss the measure. January 23 is the day of the proposed measure’s first reading and public hearing. Green anticipates a vote on January 30 on whether to put the language on the May ballot.
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] support is essential to our journalism. Please sign up for a subscription at OregonLive.com/subscribe right now.
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