Homelessness across the American landscape is a problem many choose to ignore. This is not an accident. In fact, psychological studies show that it’s the most common reaction to visible poverty. But it isn’t the only reaction to visible poverty.
There are those of us who, despite the nagging temptation to turn our heads and look away, choose to take off our rose-colored glasses and see the world for what it truly is. Sadly, truth in this day and age isn’t just something you can plainly view. Often, you must dig for it, even if your eyes and ears are open to it.
Have you ever stared out a bus window or looked down the alley of a narrow street and witnessed poverty at its ultimate low? Have you ever seen sidewalks that look like campsites, rusty, weather-worn shopping carts that serve as luggage, or the faces of your fellow human beings sinking with despair and wondered, “why does homelessness still exist”?
Haven’t We Invested Enough Money to End Homelessness?
The short answer to this question is no, and for a lot of reasons. However, from a financial/taxpayer standpoint, it is a perfectly valid question. Opponents stand on opposite ends of the spectrum, with leaders like the Trump administration suggesting budget cuts right and left, and housing advocates suggesting a massive increase by way of approximately $364 million by the year 2020. But before we can decide which side of the spectrum holds the correct opinion, we must carefully examine the budget we already have.
According to the National Alliance to End Homelessness, “HUD’s McKinney-Vento Homeless Assistance Grants program received $2.636 billion in fiscal year (FY) 2019”. Now $2.636 billion certainly sounds like a great deal of the deficit. But before you pull out the celebratory balloons and start toasting to the end of homelessness by 2020, be aware that this number is considerably low comparatively.
To put things into perspective, in the fiscal year of 2019, the US spent approximately $648.8 billion on military defense. This number equates to the defense budget of a combined 144 other countries. While wages and housing have remained relatively stagnant for years, funding for combat has dramatically increased by an astounding 27%. Spending for medical care has also skyrocketed, due largely to our unwillingness to end homelessness.
Unfortunately, “ending homelessness” has gone from national mission to a mere campaign slogan emblazoned on the backs of buses. A good look at the housing budget confirms that the homeless crisis is severely underfunded. But there’s more truth if you dig a bit deeper.
Under-Funding Is Not the Only Problem in Homeless Reduction Efforts. There Is Also A Great Deal of Harm Done When Powerful Leaders Spend Money in the Wrong Places.
The biggest issue we currently face is we stubbornly refuse to connect the homeless crisis to the housing crisis. All evidence screams that lack of affordable housing is the reason most people are homeless. Rhetoric and harmful messaging urge us to ignore this fact. In doing so, we blow the housing budget on basically everything except housing.
Statistical data presented by the National Law Center on Homelessness & Poverty shows, yet again, that it is 2-3x less expensive to give homeless people permanent, supportive houses than it is to resort to homeless management tactics such as criminalization, constructing and operating emergency shelters, and restricting unavoidable living activities. For example, in Seattle, where more than $1 billion is lost annually to the homeless/housing crisis, a study compiling data from hundreds of nonprofits and various government/police logs, concluded that “homelessness is not a resource problem. It’s a communication problem.”
Here’s a breakdown of what the near-billion-dollar 2017 budget went toward:
- Healthcare – Homeless people are at an increased risk for most illnesses; both physical conditions and those regarding mental health. Since many homeless people are uninsured, they must go to the emergency room for care. This happens often and costs about $119 million statewide.
- Policing – An additional $27 million is allocated for the cost of citing, booking, and imprisoning homeless people. This is a costly endeavor that comes at the price of freedom, not to mention millions of taxpayer dollars.
- $746 million for what Bizjournal calls a “disjointed patchwork of programs” – This portion of the budget is allegedly uncoordinated. It accounts for all types of homeless services such as food, clothing, tracking, transport, etc.
The study, which was conducted in 2017, highlighted one very important detail which is this – The budget for public housing that year was cut by a whopping 30%!
This is one shining example that illustrates the truth. No matter how big your budget is, if you’re not providing permanent houses, you cannot end homelessness. You will, instead, waste millions in taxpayer dollars doing things like:
- Managing homelessness
- Hiding homelessness
- Shifting homelessness from one location to the next
What Wrongful Spending in the Homeless Sector Does
Dedicating huge amounts of money to emergency tactics rather than solutions creates a feeling of hopelessness for everyone involved. In the end, what outsiders see is an increase in people living unhoused and a decrease in their bank accounts. Without any background or understanding, the victims of this ordeal catch the brunt end on both sides by experiencing the consequences and shouldering the blame.
Real estate developer Craig Kinzer stated, “People become upset at [homeless people], either consciously or not,” Kinzer said, “and it’s not really their fault.”
When asked about the budget approach, he added, “It would be much better to build mixed-income housing (on the sites), including units that would help people transition out of homelessness.”
What Wrongful Spending in the Homeless Sector Doesn’t Do
It doesn’t end homelessness.
It doesn’t save taxpayer money.
Investments in permanent supportive housing have reduced chronic homelessness by 30% and housing placement reduces taxpayer spending by 49.5%. Oddly, there has been a national shift in attitude and policy. This has caused many homeless sector leaders to lean in the complete opposite direction, placing emphasis on emergency shelters, which leads to more spending and more homeless people.
Talk to your representatives today about saving your money by creating permanent solutions to the homeless and housing crisis by building affordable housing.
Photo by Christine Roy on Unsplash
