By Angela Martin, HereTogether Executive Director

After more than 15 years together, I can count on one hand the number of times my wife and I have held different positions on policy issues. That’s why she was surprised to read a draft article I was writing outlining my organization’s support for a modest reduction in the regional homeless services tax rate on high-income earners. We’ve both always been reliable tax-and-spend liberals, deeply committed to addressing poverty and discrimination.

Her surprise wasn’t unwarranted. She serves as the board chair for Stone Soup, a local nonprofit providing paid job training for low-income adults, many of whom have experienced homelessness. I serve as the board chair of Hacienda CDC, the state’s largest Latino-led affordable housing and community development organization. I’m also the executive director of HereTogether, the organization that championed and passed the Supportive Housing Services (SHS) measure in 2020.

For me and my wife, this work is deeply personal and values-driven. We want everyone in our community to have a safe place to call home. We believe in investing in solutions to homelessness, ensuring our communities thrive, and upholding policies that provide dignity and opportunity for all. 

My support for progressive tax policy hasn’t wavered. I’m proud to represent HereTogether’s coalition of service providers, businesses, faith communities, and individuals who are committed to achieving the best outcomes for our community and for people experiencing homelessness through compromise and collaboration.

Why Collaboration Matters More Than Ever 

Homelessness is one of the most complex and pressing challenges of our time. The SHS tax is a historic measure, creating the largest per capita revenue stream in the U.S. dedicated to homeless services. It delivers millions of dollars for case management, supportive services, and rental assistance. But even with this unprecedented funding, the scale of the problem outpaces available resources.

We are not reducing our commitment to this work.  Instead, our sights are set on securing more resources over a longer period of time through broad, sustainable support.  The proposed reforms to the SHS measure, including a modest tax rate reduction, represent an exceptional opportunity to unite business leaders, service providers, and community advocates in a coalition dedicated to sustained, long-term solutions. 

This is not about reducing our commitment but securing more resources over the next 20 years by extending the measure and ensuring it has broad, sustainable support.

A Stark Reality: Funding Faces a Cliff 

Public support for SHS remains alarmingly low. Voters are more concerned about the program’s overall efficacy than the particular tax rate. They want to see less infighting, more collaboration, and clearer oversight. Without addressing these concerns, there is no viable path forward to extending the SHS measure.

Regional funding for SHS and affordable housing could run out within just a few years, and the consequences would be catastrophic. Thousands of people would lose access to the services and housing that stabilize lives and support recovery. Communities would face greater challenges as homelessness increases, and the economic impacts would ripple across the region.

If we fail to implement reform, this future becomes inevitable.

SHS needs to be restructured to operate with greater efficiency, accountability, and oversight to avoid losing the program altogether. And once the funding is gone, rebuilding it will be almost impossible.

Why Reform is the Only Viable Path Forward 

We aren’t choosing between maintaining the current system and reforming it. We must choose between securing the program’s future through collaboration or allowing it to fail under the weight of voter dissatisfaction and organized opposition. The proposed reforms represent the only viable way to get the broad support needed to extend SHS funding and maintain its critical role in addressing homelessness.

These reforms must include:

Improved Oversight and Accountability

• Establish forward-looking oversight mechanisms, including an independent board with clearly defined roles and responsibilities for both Metro and the county governments that oversee day-to-day implementation to build trust and ensure the program achieves meaningful results.
• Enhancing transparency with consistent reporting and measurable outcomes.
• Creating a citizen-based watchdog group to enhance transparency and accountability while building trust among stakeholders. This group would monitor the program’s progress and facilitate constructive dialogue, ensuring that providers, individuals with lived experience, businesses, and the broader public are informed and meaningfully involved.

Unlocking Housing and Services Investments

• Allowing SHS funds to be used for deeply affordable and permanent supportive housing while prioritizing and maintaining critical services.
• Balancing immediate service needs with long-term investments in housing.

Addressing Voter Concerns About Taxation

• Modest adjustments should be made to the personal income tax rate to address concerns about tax fatigue.
• Extending the SHS measure to 2050, creating stability and predictability for decades to come.

Details of the Tax Adjustment 

The proposed changes focus on balancing robust funding for homelessness services with fairness for taxpayers:

1. No Change to the Business Tax: Large businesses will continue to pay the same rate under the existing tax structure, ensuring steady contributions from this critical revenue source.
2. Adjustments to the Personal Income Tax:
• Threshold Increases: The income level subject to the tax will rise annually with the cost of living to protect middle-income families from paying the tax over time.
• Tax Rate Reductions: Beginning in 2026, the personal income tax rate will be reduced by 10%, followed by an additional 15% reduction starting in 2031.

While the tax rate reduction means the region will collect about 5.5% less revenue during the first five years, and nearly 13% less over the 25-year life of the measure than it would have without the reduction, it’s important to note that revenue is expected to grow year over year.

The Case for Compromise 

Some advocates argue that we cannot afford any reduction in the tax rate, citing the growing need for homelessness services. I deeply respect this perspective. But I also see why a compromise makes sense—and why it achieves a greater good:

1. Extending the Tax Means More Revenue Over Time
   
   Extending the SHS tax for 20 years ensures stable funding, bringing in millions of dollars by 2050. This long-term stability outweighs the modest revenue reductions resulting from the tax rate adjustment.

    

2. Broadening the Coalition for Homelessness Solutions
   
   The business community’s support will ensure that SHS continues to deliver critical resources while maintaining regional competitiveness. Many of the region’s largest employers, advocating for continued funding for homelessness services, have expressed concerns about the impact of local taxes on attracting and retaining talent. The tax rate reduction signals that we are listening and want to partner with them.

    

3. Balancing Immediate Needs with Long-Term Investments
   
   While SHS provides essential services, deeply affordable housing remains a cornerstone of solving homelessness. The Portland Metro Chamber, which supported the last regional affordable housing bond, has signaled its willingness to revisit this funding source with voters in the near future. Together, these measures create a holistic approach to addressing homelessness.

    

A Shared Commitment to Solutions

This is a moment for collaboration, and moving forward on this path is the best way to achieve those goals. It’s not about caving to pressure or compromising values; it’s about securing the resources and partnerships needed to make real, lasting change.

By extending the SHS measure, making a modest reduction to the tax rate, and working together across sectors, we can build a stronger foundation for the future. It’s not the easiest path, but it leads to the best outcomes for the people and communities we serve.

We need your voice to help ensure this program continues to deliver on its promise. You can support these critical reforms by signing our coalition letter. Together, we can shape a future where everyone has a place to call home.