Despite Increased Investments, Homelessness Rising And Shelter Beds On The Decline
PHOENIX, Ariz. — More than $1 billion is being spent in the state of Arizona to combat homelessness, but despite this substantial increase in spending, the homelessness population continues to increase and shelter beds are actually decreasing, according to the findings of a new comprehensive report from the Common Sense Institute of Arizona (CSI).
This means that Arizona, through various government and nonprofit providers, spends between 88% and 284% of the median annual rent for a home or apartment in the Greater Phoenix area on every homeless person.
Released today by CSI, the report – which took months to complete – sheds light on one of the most serious public health and humanitarian issues facing the state. It analyzes the total amount of resources policymakers and the public have invested in homelessness, and provides perspective on those dollars within the scope of the total population of individuals experiencing homelessness in Arizona.
The report also provides an analysis of the overall population of individuals experiencing homelessness, including an examination of rising mortality rates and rates at which individuals experience mental health and substance abuse conditions.
To accurately complete this report, the CSI team analyzed annual reports, financial statements, budget documents and IRS informational returns. They also engaged local stakeholders and subject matter experts.
“Homelessness is a growing concern in our communities, and both state and local policymakers are working to find solutions. The public and our leaders have an interest in helping individuals experiencing homelessness, and ensuring dollars have the maximum impact,” said Katie Ratlief, Executive Director of CSI Arizona. “Our report was months in the making. Our team of researchers pored over thousands of documents to account for these investments in a way that had never been done in the state of Arizona, and our fellows bring expertise and a passion for ensuring investments in homelessness reach those in need.”
Key findings of the report:
- All-Time High Spending: Arizona’s annual spending on homelessness ranges between $933 million and $1.1 billion. Despite this, the state’s population of individuals experiencing homelessness has increased, not decreased.
- Disproportionate Spending: Spending per individual experiencing homelessness far exceeds the median annual rent in Greater Phoenix, yet the number of unsheltered homeless has nearly tripled since 2014.
- Increasing Homeless Population: The number of individuals experiencing homelessness Arizona exceeds 14,000, with an additional 9,600 in Permanent Supportive Housing. Over the past three years, the population of individuals experiencing homelessness has surged by nearly 30%.
- Mortality Rates: The rate of deaths among individuals experiencing homelessness is increasing at a faster pace in Arizona than the rate of homelessness itself. An estimated 81% of deaths in people experiencing homelessness were drug-related, versus approximately 21% of overall deaths.
- A Growing Sector: The homelessness sector in Arizona is comparable in workforce size to the state’s entire mining and logging sector and spends about $44,300 annually per homeless person. In fact, CSI identified at least 167 nonprofit organizations – staffed by 52,000 employees and volunteers – and 25 local governments providing homelessness services in Arizona today..
“Our findings reveal a startling paradox in Arizona’s fight against homelessness,” said Glenn Farley, Director of Policy and Research at CSI Arizona. “Despite significant financial investment, we are witnessing an increasing number of unsheltered individuals — the population of individuals experiencing homelessness has surged by 30% in the last three years.”
Tom Simplot, the former Director of the Arizona Department of Housing and former Phoenix City Councilman, who contributed to this report as a reviewer, added, “Our heart breaks for those experiencing homelessness, and so many people in our state have invested their time and resources in prevention and services. The research and analysis presented in CSI Arizona’s report are critical in understanding the complexities and challenges we face in tackling homelessness. This report is a crucial step towards developing effective and sustainable solutions to address homelessness in our state.”
This report serves as a unique window into total spending across multiple levels of government and nonprofits as policymakers, community leaders, and stakeholders debate additional investments and policy solutions in Arizona.
For the full report, or to learn more about the Common Sense Institute Arizona, click here.
