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Our members are the local governments of Massachusetts and their elected and appointed leadership.
The Healey-Driscoll administration continues to look for additional funding to address the state’s growing emergency shelter needs.
Despite an additional $250 million for emergency shelters included in the recently signed fiscal 2023 supplemental budget, the administration is projecting a shortfall of $224 million for the current fiscal year, while projecting that an additional $915 million, over current spending levels, will be needed in fiscal 2025 to meet the system’s demands.
In a Dec. 18 report to the Legislature, the administration shared data about those in the system, while making the case for future needs.
As of Dec. 12, there were 7,532 families enrolled in the system — with 3,516 of them having entered as migrants, refugees or asylum seekers — while 306 families were awaiting placement.
Because most families live in a shelter for more than one year, the state is looking to take a two-year approach.
“That means that even with the system’s capacity level established, deficiency needs for [Emergency Assistance] are a two fiscal year problem, requiring a solution that spans FY24 and FY25” the report states.
The EA update report, authored by Administration and Finance Secretary Matthew Gorzkowitz and Housing and Livable Communities Secretary Ed Augustus, proposes using the state’s transitional escrow account to fund the deficiency. The account was created in 2021 with $1.5 billion in surplus revenue and now has a balance of approximately $700 million.
According to the report, the administration plans to file a supplemental budget to move the account’s remaining balance into an Emergency Housing and Community Trust Fund.
The report proposes spending the money on the following priorities:
• Up to $150 million to support housing production and preservation
• Funding 2024 shelter operational and related costs and continuing 2025 shelter costs
• Additional housing production and preservation
The report estimates there will be a shortfall of approximately $260 million in fiscal 2025 after the account is depleted, but proposes flexibility to address costs in case circumstances changes, such as additional federal supports, work authorizations or increasing exits.
The report also outlines a need for $148 million for shelter support services, such as case management, health services, child care and workforce readiness; $67 million to support school districts and unhoused K-12 students, including special education services and English learner supports; and $10 million for specialized immigration and refugee health and community supports.
The state has seen a steep increase in migration in the past year, with the number of families in the system growing by more than 60% since Gov. Maura Healey took office last January. One hundred communities across the state are now hosting families in shelters, hotels and other temporary placements.