The Multnomah County Board of Commissioners voted 3–2 on Oct. 31 to approve a midyear budget modification from the Homeless Services Department that uses about $20 million in one‑time funds and reallocated resources to close a roughly $28 million gap caused by reduced state allocations.

HSD presented estimates showing the reduced state allocation would have produced a $28 million shortfall compared with the county’s adopted FY2026 budget; the department proposed a package that draws $6.4 million from a capital set‑aside previously reserved for the East County Homelessness Resource Center, $3.8 million in unbudgeted supportive housing carryover, $4.9 million in state funding and $4.4 million in cost savings created by converting place‑based shelter funding to a scattered‑site motel voucher program. HSD interim director Anna Plumb told the board the plan is designed to "sustain folks in their housing" rather than expand new shelter beds.

The proposal would sustain roughly 451 households with long‑term rent assistance and roughly 600 households in rapid rehousing. HSD staff said the package preserves the county’s planned community shelter capacity increase at a lower net level than originally adopted but prioritizes keeping households housed rather than adding interim shelter capacity.

The meeting drew lengthy public comment. Representatives of provider organizations including Northwest Pilot Project and Our Just Future urged the board to delay a vote until providers had a chance to see detailed, provider‑level impacts and to participate in designing cuts; they warned that abrupt reductions to housing placement contracts risk reducing exits from shelter, lowering shelter morale and creating layoffs. Multiple speakers representing volunteers and former MCAS staff urged the county to address other community concerns (see separate story on animal services testimony).

During a prolonged board question period, commissioners pressed HSD on several points: whether the $6.4 million reallocation from the East County project would remain in east‑county services (HSD said it would continue funding East County outreach and the Gresham homeless services team but could not dedicate the full $6.4 million to a single jurisdiction), the effect of drawing $3 million from Year‑2 state shelter funds (HSD said this would leave roughly $6–7 million available for Year‑2), and the department’s projected FY2027 fiscal cliff (HSD and budget staff estimated roughly $63 million in reductions would be required next fiscal year if current revenue assumptions hold).

Commissioner Joan Stixson moved a budget note, which the board added when it approved the modification. The budget note directs HSD to: (1) review midyear unspent resources and prioritize those dollars for housing placement out of shelter; and (2) brief the board after state budget rebalance implementation on outcomes including housing placements off the streets and out of shelter and a fuller review of the shelter assessment report. Plumb and HSD committed on the record to engage provider partners in designing contract‑level reductions and to report back.

The board’s action was not unanimous. The recorded roll call on the final amendment and rebalance recorded two commissioners voting no and three voting yes. The board also discussed but did not authorize immediate shelter closures during winter months; commissioners said any such decisions would require a separate, data‑driven process informed by the shelter assessment.

The board and HSD officials repeatedly emphasized that the rebalance holds services steady for this fiscal year while acknowledging the county faces a much larger set of fiscal choices next year due to the loss of one‑time carryover and continuing state/federal uncertainty.