The COVID-19 pandemic, which has caused widespread unemployment and a corresponding drop in state revenue from personal income taxes, has created a $1.2 billion state budget shortfall that will shrink several Multnomah County programs.
On Tuesday, Oct. 6, Multnomah County Budget Director Christian Elkin and Director of Government Relations Jeston Black outlined the effects of that gap on the Multnomah County budget through 2021. The East Multnomah County Gang Enforcement Team and Veteran’s Services are among the programs expecting budget or staff reductions as a result.
All told, the state expects its budget to shrink about about 3% in the next two years as job losses affect state revenue. Multnomah County, which receives $105 million annually from the state, is expected to see its share reduced $3,663,432 in the next biennium.
Though both state and County budget reductions are significant, Jeff Renfro, Multnomah County economist, says the cuts are much lower than initially anticipated in June. He credits this to a faster-than-expected economic recovery and the federal assistance package that increased the state’s revenue.
“The unemployment picture is still bad. But we’re not at 20% or 25%unemployment like some people thought we would be,” Renfro said.
Representatives from the Multnomah County Sheriff's Office, Department of Community Justice, and Department of County Human Services detailed their plans to address the cuts. Speakers included Multnomah County Sheriff Mike Reese, Department of Community Justice Director of Erika Preuitt, and Interim Deputy Director of Department of County Human Services Lee Girard.
Among the specific department and program reductions:
Sheriff’s Office
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East Multnomah County Gang Enforcement Team where a $544,714 cut will result in the removal of three deputy sheriffs from the team and their return to regular duties. The Multnomah County Sheriff’s office will no longer have dedicated participating staff on the task force.
Department of Community Justice
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East Multnomah County Gang Enforcement Team where a $544,617 pass through grant to Gresham will result in the loss of three officers and one sergeant from Gresham Police.
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Youth Gang Intervention Funding where a $313,480 cut would eliminate three FTE staff positions that work directly with youth who are on formal probation, many of whom are youth of color. The department is proposing making the reductions in other vacant positions in order to retain those juvenile services.
Department of County Human Services Reductions
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Aging and Veteran’s Services Medicaid Operations where a $1,741,720 reduction will be managed by eliminating plans to rent new office space. Without mitigation efforts, 17 positions would have been cut, resulting in longer wait times for customers, higher workloads and slow down the process of clients receiving Medicaid services.
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Older Adults Mental Health where a $322,599 cut will affect three service contracts serving four Metro area Counties for evidence-based mental health to assist older adults. It will continue using carryover funds.
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Case Management and Transportation where a $169,206 reduction will affect case
management services for older adults living in the community. It will continue through CARES Act funding.
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Veteran’s Services where a $27,096 cut will affect a 0.25 vacant FTE and $10,000 Pacific University contract for mental health evaluations for veterans and military connected families. It will continue using money for vacancies.
Commissioner Susheela Jayapal noted that while the economist Renfro characterized the cuts as less catastrophic than expected, “they’re still really, really bad. And I think the other piece that folks don’t completely understand is that it’s also longer term than they think it is. I think there’s a perception that once there’s a vaccine, the effect goes away. And what we saw on your chart, was that it continues for several biennia.”
“That’s an important point,’’ Chair Deborah Kafoury said. “We won’t be out of the woods for awhile.’’
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