Like many large American cities, both Portland and Multnomah County rely on partnerships with non-profit organizations to address pressing social challenges, including homelessness and substance abuse. Multnomah County alone allocated a staggering $1.2 billion to these contractors in the 2023 fiscal year. However, unlike cities such as New York, which implement systems to monitor the effectiveness of these organizations, our local government lacks such oversight. Consequently, despite high tax burdens, residents and businesses are not seeing corresponding improvements. The city is grappling with record levels of homelessness and drug overdoses, and crime rates remain stubbornly high. Tragically, the county is experiencing an average of two overdose deaths daily.

A 2015 Multnomah County Auditor report for homeless services found that it was difficult to track program costs and system performance, including how well different systems of care were operating together to support clients. In 2018 the Auditor found that the Joint Office of Homeless Services lacked full evaluation and analytical capacity and did not communicate with stakeholders and the public about the performance of the homelessness system as frequently and extensively as needed. A 2023 report found that contractors who were not meeting performance measures would have those measures changed, which created a conflict of interest for JOHS staff. A 2024 report noted that the county had not implemented the 2023 recommendations to address the conflict of interest around performance measures. 

There simply has not been enough political will to compel our local governments to implement stringent guidelines and performance measures for contractors.

The Current Predicament

Opaque Budget Decision-Making
Many budget decisions are made in early-stage discussions before the public gets a chance to weigh in; once the decisions are made it’s difficult tracking how effectively the money is spent; and with overlapping responsibilities between the city, Multnomah County, Metro, and state funding, it’s often unclear who is accountable ineffective spending

Lack of Metrics for Success
This absence of accountability results in residents and businesses paying high taxes without commensurate benefits. 

Negligence in the Use of Public Funds
Budget shortfalls in essential services while at the same time massive surpluses in programs like Portland Clean Energy Fund (PCEF) and Preschool for All have created significant controversy and accusations of mismanagement.

3 Keys to Progress

Balance the Budget
Before basic services are jeopardized, it is imperative that our city and county leaders demonstrate a commitment to streamlining the budget by removing ineffective programs and wasteful spending.

Contract with Performance Metrics
City and County governments should adhere to a performance-based contracting system that would ensure that tax dollars are spent to yield results.

Strengthen Accountability and Oversight
To ensure fiscal responsibility, the city and county should initiate independent performance and forensic audits of troubled programs.