David Gray, staff lead for the city's Homeless Strategy Office, told a joint meeting of the Audit & Finance and Public Health committees on April 28 that staff had compiled a set of funding and staffing "considerations" totaling just under $101,000,000 to sustain and expand Austin's homeless response system.

"Our total investment consideration package total is just under $101,000,000," Gray said during the staff presentation, adding that roughly one-third of the package would be to convert currently one-time investments into ongoing funding, one-third would be new city investments and one-third would be new investment requests to other system funders.

The staff recommendations respond to a council resolution adopted in January directing staff to examine funding sources, partnerships and opportunities to prioritize ongoing investments in the homelessness response system. Gray said the package reflects four guiding principles: that any recommendation must produce a measurable reduction in homelessness prevalence; that investments should span prevention through permanent supportive housing (PSH); that interventions should be matched to client needs; and that the city cannot fund the system alone.

Key figures and components described by staff include:
- $15.65 million in ARPA-era programs staff recommended the council consider continuing, including an $8 million allocation to keep the Marshalling Yard shelter open and $3 million to move people from bridge shelters into housing.
- A $5 million request to expand street outreach and encampment management (including $2 million for external partners and $3 million tied to bridge-shelter housing), and a $2 million seed fund for community-based emergency shelters.
- A plan to develop roughly 550 new shelter beds by 2029 (the staff analysis cites the State of the Homeless Response System report's recommendation of 550 new beds) and a capital-plus-operating estimate of about $32.3 million to pursue that shelter expansion, with operating costs per shelter bed framed as a range depending on services: roughly $25,000 per bed annually for basic shelter and about $34,000 per bed annually for a housing-focused shelter that provides housing navigation and case management and can serve 33 clients per year.
- Rapid rehousing and PSH investments: staff recommended system-level allocations to produce and operate new rapid rehousing placements (a $23 million system ask with $12 million of that tied to the city) and to convert $4.8 million in one-time funding for PSH supportive services into ongoing support. Staff estimated a well-resourced PSH package at about $35,000 per unit annually ($20,000 for supportive services plus an average $15,000 rental subsidy).
- Staffing and systems requests for the Homeless Strategy Office (HSO): Gray asked the council to consider adding 40 positions to HSO, prioritizing encampment management and street outreach, data and technology staff, shelter support, administrative capacity and executive management.

Gray and staff repeatedly framed the package as a mix of maintaining gains built with ARPA dollars and making targeted new investments so the overall system can respond faster and more effectively. "If you align your investments, when you align your programs, you optimize your success," Gray said, using a Clydesdale-horse analogy during the presentation to stress coordinated funding and operations.

Committee members pressed staff on details and timelines. Council Member Alison Alter and Council Member Vanessa VelE1squez asked about peer-city staff levels and the durability of ARPA-funded programs; Gray said Austin's HSO is lean compared with peer cities and repeated that several ARPA-funded items would require ongoing support if the city wants to preserve current capacity and outcomes.

Staff emphasized that many of the recommendations are designed to be implemented in partnership with other funders, including Travis County, Central Health, philanthropic organizations and corporate partners. Gray told the committees that some funding partners have indicated they are willing to align behind housing solutions and outreach investments.

The presentation did not propose any ordinance, budget adoption, or final vote. Staff said the items would be folded into the city manager's proposed budget later in the spring for council consideration and that the office would continue detailed conversations with funding partners and city departments.

The committees scheduled follow-up meetings and next steps as the council moves into the fiscal-year budget process.

Ending: The staff presentation framed the $101 million package as a mix of sustaining ARPA-era gains, expanding shelter and outreach capacity, bolstering permanent supportive housing and adding HSO staffing. Gray and multiple council members emphasized partnership with other funders and the need for measurable reductions in unsheltered homelessness as a yardstick for any new investment.