Item B: Update on Homeless Initiative Action Plan

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years, that provides funding for on-going needs in addition to emergency responses. The benefits of a long term, stable funding source include the ability to implement long-range planning and to commit support for long-term solutions. This is not possible with a local option levy. Options for long-term revenue are very limited due to current state laws which severely limit the ability of local jurisdictions to increase taxes. Jurisdictions may consider broad-based options (favored by the committee) such as an income tax or a targeted option such as a tax on a particular commodity (provided it is legally taxable under state law). Both options typically face fierce opposition from tax opponents on principle, regardless of what public benefit the funding will be used for. The Committee reviewed a list of alternative funding options, including ideas presented by staff and ideas raised by members or the community. Some options, such as the transient room tax have a dedicated use due to state law. A car rental tax is currently collected by the County and can be used for general purposes of government. However, most cars are rented at the airport, which is outside City limits. Therefore the potential tax is only available to Lane County and not available to Eugene or Springfield. Other options may be complicated or expensive to collect or would have an inadequate revenue potential. The committee was unable to identify a satisfactory and feasible long-term funding source. If local jurisdictions identify a new revenue sources for the general purpose of government, they should consider dedicating a portion of it to this initiative. Likewise, an additional choice is to fund housing and homeless activities through the current budget by reallocating general fund priorities. Any long-term, dedicated, funding source for this initiative would be most effective if it could be implemented county-wide or at least in the entire metropolitan area. Summary of Arguments Related to 3) Long-term permanent, sustainable funding source Pro Con Adequate funding, over time, to address a There is currently no comprehensive broad range of needs. community analysis blueprint in place to guide revenue expenditures. Unlike the limitations of a local option Politically challenging to pass a measure. levy, it can address a broad range of needs, Broad based options, such as an income tax including long term support for projects. have failed in the past. Targeted options historically Narrow options Capable of implementing the Ten Year Public support is uncertain. There is a need Plan to End Chronic Homelessness to build consensus through community education. Significant opportunity to provide local The public generally dislikes new taxes. match to leverage other funds For instance, one targeted to a specific commodity usually stimulates a well- funded opposition from the industry being 14 Blue Ribbon Committee on Homelessness, Recommendation April 2, 2008 -- Page