Portland city leaders are working to secure more General Assistance money from the state in the upcoming budget year to help make up a $20.3 million budget gap.

The funding is especially crucial this year because of the city’s tight budget, which has to make up for a loss of $7.4 million in one-time General Assistance money from the state.

The General Assistance program provides financial assistance for housing, food and other necessities for people who can’t meet their basic needs on their own. Municipalities are required by state law to administer GA, but it is mostly funded by the state.

Mayor Mark Dion and City Manager Danielle West both say they are doing what they can to lobby the Legislature to again provide supplemental funding this year, and to increase the state’s reimbursement rate to help the city close the budget gap and stave off larger tax increases.

The city’s goals are twofold: One is to bump the GA reimbursement rate from 70% to 90% – the rate the state had in place before 2015 – and the second is to secure another round of additional funding to keep GA programs operating at their current capacity.

“We need at least $7 million to keep things running and not put this state burden onto local property taxpayers,” Dion said.

Members of the City Council’s Legislative/Nominating Committee said Tuesday that the current 70% reimbursement rate covers the cost of the services, but not administrative costs. So while those funds may cover the cost of a housing voucher, they don’t cover the salaries of employees who work to get those vouchers out to the people who need them.

“Getting those administrative costs covered is high up on everyone’s list,” Dion said.

He said the city is supporting a bill sponsored by state Sen. Marianne Moore, R-Lewiston, that would increase the state reimbursement.

The committee is also keeping a close eye on an amendment to the governor’s supplemental health and human services funding bill, which would end GA payments after someone has received support for 30 days in a single calendar year.

Dion says this would be harmful in myriad ways, but especially when it comes to hotel and motel programs that rely on GA funding to house homeless people and asylum seekers. There is no motel program operating out of Portland now, but Dion said the ability of nearby communities to manage the homeless population has a major impact on the city.

He went to Augusta last Monday to urge the appropriations committee not to endorse the amendment.

“If you’re dealing with the unhoused, I want you to keep in mind that the core idea you should hold dear is a commitment to flexibility,” he told the committee. “This 30-day cap, by its very nature, threatens our ability to respond to those needs.”

Dion said that if the measure does ultimately pass, he hopes the state will make an exception for hotel and motel programs.

RISING GENERAL ASSISTANCE COSTS

The GA program has seen dramatic increases in demand because of the COVID-19 pandemic and a higher rate of homelessness. Costs jumped from $12.7 million statewide in 2019 to $37 million in 2022. Of that, the state paid $25.9 million.

In the current budget year, Portland set aside $22.6 million for GA. It’s not yet clear how much the city will budget for next year – West is still finalizing her budget proposal to present to the council next month.

One thing that West is sure about, though, is that Portland will be looking to the state for supplemental GA funding.

“It was crucial last year and the year before; it will be again this year,” West said in a phone interview Friday.

GA reimbursement is one of the biggest funding streams the city receives to support the homeless population, which West says remains a major priority for the city.

“Serving homeless individuals has always been something the city wants to do and wants to do to the best of its ability,” she said.

She emphasized that Portland operates the two largest shelters in the state and serves a large portion of Maine’s homeless population. However, she said, she believes the onus for providing GA money, a state-mandated program, should fall to the state, not to city taxpayers.

West and Dion both said that advocating for higher reimbursement rates and another year of supplemental GA funding will be essential this budget season.

“I’m so thankful for all the help we’ve received from the governor and her team in the past. This is something that weighs heavily on me; it’s something we need support for. Whatever levels of government can step up, we’re always looking for as much assistance as possible,” West said.

At the city’s committee meeting Tuesday, Dion and the rest of the legislative committee discussed the persistent challenge of convincing legislators from rural communities that Portland deserves assistance.

“There have been times when Portland is housing up to 1,000 people, but sometimes, rural legislators don’t see how that’s connected to their experience and why it’s important for us to be able to solve these problems, basically on their behalf as well,” Dion said.

The city is facing a tight timeline to shore up the budget for next year. West is scheduled to present her budget recommendations to the council for approval on April 8. The legislative session won’t end until sometime in late April or early May, and lawmakers often wait until the final days to shore up the budget.

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