MEAN
STREETS
Struggling
to make the homeless a priority in a city's heart, wallet
BY
ALAN PITTMAN, PHOTOS BY TODD COOPER
While thousands of homeless people shuffle in the
cold rain along local streets as the Christmas spirit fades, the
city's top priority is not people but potholes; not home but new
city offices.
Eugene schools enroll about 1,000 homeless children.
Last January officials counted 2,296 homeless people in Lane County
in a one-night census. Every year, service providers count contacts
with more than 7,600 unduplicated homeless people.
With winter deepening and thousands unsheltered,
the Eugene city staff and City Council sat down Nov. 28 to decide
on the city's top priorities to refer tax measures to voters. The
decision was bold and ambitious. Ask residents, 21 percent of whom
live in poverty, to approve a $81 million tax increase in May for
smoother asphalt, the largest tax hike in the city's history. Break
the record again in 2010 by seeking about $188 million more in taxes
for a new City Hall. The homeless problem wasn't even mentioned.
To be fair, this mayor and
council have done far more for the homeless than previous officials.
The city launched a homeless initiative last year, and last February
helped give more than 1,000 homeless people critical services from
hair cuts to medical care at an event at the Lane County Fairgrounds.
Another Homeless Connect event is scheduled for Feb. 7.
Mayor Kitty Piercy also appointed a Blue Ribbon
Committee to Finance Homelessness and Housing Programs. On Dec.
5 the committee came up with a draft proposal: a $5 million property
tax increase with half spent on building more affordable housing
and the other half divided between homelessness prevention and emergency
shelter.
Many important details of the draft proposal remain
to be decided, and the committee plans to meet again in January
for more discussion. One big issue is whether they even dare to
ask for the homeless to be given a higher priority than potholes
and new city offices for an election slot. "We all compete," committee
Vice-Chair John Van Landingham said of the ballot timing issue.
"I don't know that we should be deciding that."
The $5 million a year isn't nearly enough to end
homelessness. But the committee draft report estimates it will prevent
hundreds of people from becoming homeless, provide some emergency
shelter and put hundreds more in permanent housing. "It's enough
to make a significant impact," Van Landingham said.
The cost of not acting could be much higher, according
to the report. Homelessness increases the costs for schools, health
care and jails. Homeless children struggle in school, taking scarce
teacher time away from other kids in crowded classrooms. Homelessness
exacerbates medical and mental problems, forcing many people to
seek costly emergency room and medical health treatment. Local hospitals
make up for the $858/day for psychiatric ward stays and the $362/day
for emergency room visits by passing the cost on to the insured
in the form of higher charges. Many homeless people find shelter
only in the Lane County Jail, which costs taxpayers about $359 a
day per inmate.
SHELTER VS. HOUSING
But while Blue Ribbon Committee members agreed on
the need to act, they were divided on just what to do.
For example, should the city focus on building permanent
homes or providing emergency shelter? For decades the city has focused
on building permanent low-income housing for people at risk of homelessness.
But that approach has left many hard-core disabled or addicted homeless
people shivering without shelter.
"Our biggest responsibility is you've got people
freezing on our streets," said Committee member Hugh Massengill,
also a member of the city's Human Rights committee. Massengill said
he'd like half the new money to go to emergency shelter rather than
just the 15 to 25 percent proposed.
But most of the local affordable housing establishment
appears to strongly oppose shifting resources. Committee members
Van Landingham, St. Vincent dePaul Director Terry McDonald and ShelterCare
Director Susan Ban argued strongly against shifting resources from
permanent housing programs.
Emergency shelters have "huge costs" and "that takes
every cent a community has" for addressing the homeless problem,
Ban said. She said her numbers show that emergency shelter is "the
single most expensive way to provide the service and has the poorest
outcomes."
"Homeless people don't really want shelter, they
want housing," said Van Landingham.
Massengill appeared unconvinced. "Communities all
over the country have public shelter services." Eugene has the Mission,
he said, but the church-run shelter "has a huge religious component."
McDonald said he'd heard "tension" over the religious
mission of the Mission for decades in Eugene. But he questioned
whether taxpayers would want to foot the bill for a nonreligious
public replacement. He said he'd like a tax vote to resolve the
dispute and say, "You that so strongly oppose such a way of delivering
services have an opportunity to vote on it. Have a good day."
Mayor Piercy cautioned committee members not to
let the fractious shelter vs. housing issue weaken their appeal
to help the homeless. Let's "not approach this as one thing versus
the other," the mayor said. "It just begs people to pile up on sides."
Committee member Ron Chase suggested a compromise
approach could be a voucher system for emergency housing in private
rentals that was linked to programs to help people apply for long-term
benefits.
USING THE HOMELESS
Piercy also cautioned the committee about avoiding
enmeshing itself in another fractious local issue — whether
or not to expand the urban growth boundary (UGB).
Developers have long sought to use homeless people
as a lever to fight regulations against urban sprawl and against
impact fees. They argue that such regulations and fees reduce land
supply and increase housing costs. But environmentalists have long
countered that developers just want to build high-profit expensive
homes on UGB expansions, and that efficient compact growth and ending
developer subsidies reduce housing costs by lowering taxes.
The issue has heated up now after developers successfully
pushed Springfield to fast track a UGB expansion Eugene balked at.
To address the homeless issue, "what I've seen us support as a council
is new development," said committee member and Springfield City
Councilor Hillary Wylie.
Van Landingham and Ban appeared to side with the
developer lobby's argument that a UGB expansion would help the homeless.
Piercy said that made her "worry" about turning
the homeless issue into a "UGB discussion." It would be better if
the committee "put it in a context where you don't invite people
to argue over their basic tenets," she said. For example, the committee
could "frame" the issue differently by recommending that if there
is a UGB expansion, it include affordable housing.
Ban said the UGB was a "big deal" but agreed that
the committee may want to "package" the issue differently.
Van Landingham said that one approach could be to
trade a UGB expansion with developers in exchange for including
a certain amount of affordable housing in the new area.
California and other states often mandate "inclusionary
zoning" for low-income housing in new developments, but developers
here successfully lobbied the Legislature to prohibit the practice
in Oregon.
An affordable housing element in a UGB deal may
be hard to enforce. A decade ago, development interests successfully
pushed for a UGB expansion for new kid soccer fields near Gateway
Mall. Now the UGB expansion is the site of the Royal Caribbean call
center.
POOR TAX
Another undecided issue is whether the new funding
should come in the form of a property tax increase at all.
McDonald cautioned that many would react negatively
to a tax increase. "It's these people that want to get more money
for government," he described the reaction. "In terms of getting
another tax source for the city, I think you lose the game."
McDonald said a better approach may be to ask the
city to dedicate more of its existing general fund to the homeless
issue.
The city of Eugene is more flush with money now
than it has been in years. By reducing services, the city has accumulated
a $30 million fund it has set aside for building a new City Hall
and/or police building. Already the city has spent more than $2
million from the fund for design and PR work to try to sell the
building to voters. The city has also spent tens of thousands of
dollars on PR hyping the pothole issue.
But the homeless may have tough competition for
more general fund money. Conservatives are pushing for spending
millions from the general fund on potholes and a big increase in
police officers, despite falling crime rates.
Another approach may be to lessen the hit on Eugene
taxpayers by having Springfield and Lane County share the bill for
the regional problem. But Springfield has shown limited interest
in social service funding in the past, and Lane County government
is focused on law enforcement and weathering a possible cut in federal
subsidies.
If Eugeneans are stuck with the bill, a more palatable
approach could be a graduated income tax based on the ability to
pay. That could garner more money from the rich Ebenezers while
protecting the poor from having to pay more taxes through high rents
they already struggle to afford.
A county income tax failed recently at the ballot,
but that tax was criticized by progressives for focusing on jails
and imposing the same flat rate for rich and poor.
Another tax approach could be using a real estate
transfer tax to hit up the Realtors and developers who have cashed
in on the housing boom in recent years at the expense of affordable
housing. But Van Landingham warned that such a tax could be harder
to pass. "With a targeted tax, you create an instant enemy."
Whatever the case, the city council plans to take
up the recommendation from the committee in the coming year and
decide where the city's true priorities lie. A homeless shelter
or a new City Hall? Street repair or street people?
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