SPOKANE, Wash. — The city of Spokane is facing a deficit of several million dollars to fund operations at its homeless shelters between 2023-2024. However, the city is considering a few different options to fill the gap.
This year, the city is facing a $4 million deficit for operational expenses at the Cannon Street Shelter and the Trent Resource and Assistance Center (TRAC). In 2024, that deficit jumps to $10 million.
City Council President Breean Beggs said the Salvation Army runs TRAC at a higher cost compared to its original contract with the Guardians Foundation. The previous contract was approximately $6.5 million, while the new contract with the Salvation Army doubled to $13 million.
The increase is partly due to more people staying at the shelter this winter, with nearly 300 people staying there. According to Beggs, it's also because the Salvation Army's standard operating procedure is to charge 24% in administration costs.
"That is too high and it's not really sustainable in the long term," Beggs said.
At this rate, he said the city can't keep up.
"What's going to happen is we are going to limp along on a patchwork basis this year, and next year, and maybe the year after," Beggs said.
There are options to fill the gap. According to Beggs, the city council is pushing for a new request for proposal (RFP) on TRAC to see if the Salvation Army will lower its operating price. Additionally, the city could find another organization that could run the shelter for a lower cost.
"That's the most urgent thing that needs to happen because that would reduce the price in the long term," Beggs said.
He also suggested temporarily closing the Cannon Street Shelter after the Salvation Army's contract ends at the end of May, then reopen it as a medical shelter using Medicaid funds rather than city dollars. This space would potentially be used to help people with serious physical and mental illnesses.
Budget cuts or tax increases may also be necessary, but that's a discussion Beggs claimed Mayor Nadine Woodward won't have. Still, he's hopeful the city will see additional funding from the legislature.
"I was just on a press conference lobbying for a bill that would increase, by $7 million, that money for permanent affordable housing, every year, going forward," Beggs said. "So we could actually dig our way out of this."
Meantime, he said the city will use revenue from the real estate excise tax to fill this year's $4 million gap. However, Beggs is hopeful the legislature will extend the use of this tax so the city can fill next year's $10 million gap as well.
KREM 2 reached out to Mayor Woodward for comment, but she was unavailable to answer our questions.
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