20251114-001: Fiscal Year 2025-26 Budget Recommendation — original pdf

Recommendation

RECOMMENDATION TO COUNCIL Downtown Austin Community Court Advisory Board Recommendation Number: 20251114-001: Fiscal Year 2025-26 Budget Recommendation Date of Approval: November 14, 2025 Recommendation: 1. Retain the $650,000 included in the approved Fiscal Year 2025-26 Budget, and in the Fiscal Year 2025-26 Amended Budget Recommendations, for the six grant- funded clinical case managers who comprise the Rapid Rehousing Program and are vital to sustaining the overall Homeless Services capacity for Austin Community Court. 2. Maintain Austin Community Court’s social service funding at current levels or at least limit reductions to 4% consistent with those recommended for Austin Homeless Strategies and Operations (HSO). Description of Recommendation to Council: The DACC Advisory Board passed Recommendation 20250328-004A, available as an attachment to this recommendation, which justifies the critical nature of this investment. We’re grateful to the City Council for including these staff in the budget passed in August 2025, which remains our top priority, and we write to support their inclusion in the City Manager’s amended budget recommendations. All of the rationale in our original recommendation still rings true, with additional urgency around the needs for these staff and social service resources as follows: • Social Services Contracts are an Integral Part of Community Court’s Service Model - Case management at Austin Community Court includes a portfolio of contracted social service supports to ensure clients receive the wraparound services they need. These services include an array of long- and short-term housing solutions; substance use treatment; mental health services; peer support; and SSI/ SSDI Outreach, Access, and Recovery (SOAR) application assistance and representative payee services. Given that these social service resources are dedicated to individuals served directly by Community Court case managers, significant reductions will risk dilution of the quality and intensity of services needed by the individuals Austin Community Court serves. o The Fiscal Year 2025-26 Amended Budget Recommendations suggest a 10% cut to contracts managed by Austin Public Health, Austin Municipal Court (including Community Court), and Economic Development while recommending only a 4% reduction for contracts managed by HSO. This recognition of the critical and essential nature of homeless services for the Austin community should extend to Community Court given the integral nature social services play in its service model. We therefore urge Council to maintain the current social service funding level or at least to reduce by only 4% consistent with HSO. • Protect Institutional Knowledge of Dedicated Public Servants – The six staff included in the City Manager’s amended recommendation are dedicated and experienced master’s- level clinicians. As the need for homelessness services continues to rise and workforce capacity across the sector is stretched thin, it is essential to protect the knowledge and relationships they have built. o Each case manager currently carries an active caseload of clients who rely on them for housing stabilization, case management, and ongoing support. If these positions are not maintained, services for those clients would be abruptly disrupted, undermining progress toward permanent housing and recovery. o The City has already made a substantial investment in training, integrating, and supporting these staff, who have chosen public service and demonstrated extraordinary commitment to supporting Austinites experiencing homelessness. Retaining them is not simply about preserving positions; it is about safeguarding the trust, expertise, and continuity that sustain effective homelessness response. o Two staff are fully vested with the City, and most of the others bring multiple years of experience at Community Court. Losing these positions would mean losing that expertise and momentum just as the demand for services continues to grow. • Continued Increase in Demand for Services – Austin Community Court’s walk-in case • management services continue to rise, averaging nearly 75 people per day in FY 2024–25. More than 400 individuals remain on the waiting list for ongoing case management to help end their homelessness. Although keeping pace with demand would actually require increased staff and social service resources, we understand this year’s budget constraints and are only seeking to avoid a reduction. Impacts of Staff Reduction – Retaining these staff as recommended would prevent a 24% decrease in Homeless Services staff at Community Court, which would nearly eliminate their Rapid Rehousing Program, be catastrophic to their capacity for walk-in services, and diminish their ability to respond during times of crisis. The structure of robust teamwork that has been so successful at Community Court depends on these 6 staff and their institutional knowledge. This context is particularly relevant as Community Court will again serve as the sole embarkation hub for Cold Weather Shelter operations this winter. • Avoid Creating Service Bottleneck – Various factors, from the City’s welcome investment in outreach this budget cycle to the State’s harmful displacement through encampment sweeps, will only increase demand for accessible services in the near future. To meet this need, Community Court’s staffing and social service resources must at least be maintained, ensuring continuity through walk-in services and the Rapid Rehousing Program. Reducing this capacity amid growing demand would create a detrimental service bottleneck, stranding our unhoused neighbors without the support they need. • Safeguard Local Stability Amid Federal Uncertainty – With federal and state homelessness funding uncertain as COVID-era grants expire and budgets tighten, and with the direction of the federal government and the future of critical safety-net programs unclear, maintaining stable local services is more important than ever. Austin has a responsibility to protect and serve the people who need our help the most. Sustaining these positions and social service resources ensures that commitment is upheld. With other industries reducing employees, the City of Austin should remain committed to retaining valuable staff and maintaining service levels. • Honor the City’s Mission, Vision, and PRIDE Values – The City of Austin states its mission is “to make Austin the best-managed city in the country,” and its vision is “making Austin the most livable city in the country.” Under its P.R.I.D.E. core values, the City commits to high-quality, inclusive services. o Eliminating these positions and greatly reducing social service capacity undermines the City’s stated commitment to being “best-managed” and ensuring Austin remains “most livable.” These reductions diminish the City’s ability to provide a compassionate and effective response to homelessness in a way that reflects public service, accountability, and innovation. Preserving these positions and resources are not only consistent with the City’s vision, but a tangible expression of its values, ensuring the City remains a model of inclusive, responsive, and well-managed government. • Align Investments with Council Priorities – On November 6, 2025, Council passed Resolution 20251106-024, to develop a plan to “prioritize, expand, and align the operations of street and community outreach for individuals experiencing homelessness and should emphasize the importance of vital and mental healthcare services connections and housing.” This Resolution recognizes the “need for compassionate, comprehensive, and multi-departmental homelessness response resources, programs, and street outreach services,” specifically recognizing Austin Community Court as one of these resources. As the City looks to expand efforts to address homelessness, a starting place must be maintaining current service levels at Community Court. • Protect the Progress We’ve Made Together – Over the past several years, the Austin City Council has shown steadfast leadership by investing in Community Court staff and social service resources, helping to build the strong, housing-focused service foundation they have today. Those investments have translated into measurable progress connecting people to housing, thoughtfully coordinated services, and a stronger system of care. Now is the time to preserve and build on this momentum, not reverse the meaningful progress established under Council’s leadership. We want to close our description with what matters most, the concrete human impact of services provided by these staff: • Each Case Manager Drives Real Outcomes: One particular case manager successfully housed 45 clients across 17 households in just under three years. Twelve clients, including five families with young children, qualified for HACA vouchers, and many continue to remain stably housed. Their success is supported by ongoing case management, advocacy with landlords for clients facing barriers, and connections to supportive services. In addition to supporting housing outcomes, this same case manager is instrumental in the operations of Community Court’s walk-in services. • Client Success Amid Chronic Illness: A longtime walk-in client with complex medical, mental health, and substance use challenges was successfully housed through Community Court’s RRH Program in 2024. Once housed, he accessed medical care, underwent major surgery, and even beat his cancer, while stabilizing his income and reconnecting with family. He thrived in his home, pursuing music, bikes, and personal projects, until his cancer returned and he passed in February 2025. His family has expressed deep gratitude for the support he received, and his story reflects the profound impact stable housing can have on someone’s life. • Leveraging Public Benefits and Community Resources: Community Court works to connect people with public benefits to support their long-term stability. After securing housing for one client, her case manager facilitated the reinstatement of her SSDI benefits and her father’s survivor benefits, enrolled her in SNAP, and connected her with an array of supportive services. She received $5,000 in back pay and now receives $1,891 monthly. When her lease ends in December, she plans to move to Community First! Village, where she can maintain stable housing and continue working toward her savings goals. • Achieving Independence and Long-Term Stability: o Since 2022, one client has remained stably housed and maintained sobriety while living independently. After relocating further south due to rising rents, he has balanced a stable job with online college, where he holds a 3.5 GPA and hopes to become a lawyer. In addition, he has launched a local business that's gaining traction. His direct feedback to Community Court: "You have changed my life!" o Successfully housed since 2023, one client navigated challenges with sobriety following multiple family deaths. After completing treatment, he has maintained sobriety and reconnected with his daughter, a major positive influence. He is employed with Capital Metro, purchased a vehicle, and is working to restart his small business that was paused during COVID. He has personally t old Community Court staff, "I couldn't have done it without you." In light of this astounding track record, we respectfully urge you to prioritize $650,000 in funding to hold staffing capacity level at Austin Community Court, and maintain current social service funding levels. Understanding that social service reductions may be necessary, we respectfully request no more than a 4% reduction, consistent with the priority placed on HSO contracts. Rationale: With the results of Proposition Q, Austin is entering a tighter budget era that will likely continue for years. Every budget decision now sends a clear message about our community's values and priorities. Retaining these critical positions and maintaining Community Court's homeless services capacity shows that even wit h limited resources, we choose to protect the programs that give our neighbors a pathway to stability and safety. Preserving these services affirms that Austin is a city that cares, invests wisely, and remains committed to compassionate, best-practice driven efforts to address homelessness. Motioned By: Anu Kapadia, Vice Chair Seconded By: Roy Woody Vote: 6-0 For: Lea Downey Gallatin, Chair, Anu Kapadia, Vice Chair, Roy Woody, Mikaela Frissell, Katy Jo Muncie, Josh Robinson Against: Abstain: Off the dais: Absent: Kergin Bedell, Faye Mills, Amanda Marzullo, Karly Jo Dixon Attest: Lea Downey Gallatin, Chair G,, AD l];±;_, ' - . / V V DOWNTOWN AUSTIN COMMUNITY COURT ADVISORY BOARD RECOMMENDATION 20250328-004A March 28, 2025 Fiscal Year 2025-2026 Budget Recommendations Date: Subject: Motioned By: Kate Garza Seconded By: Nicole Golden Introduction The DACC Advisory Board would like to thank the Austin City Council for its exceptional support of DACC, especially within the last two years. Investments in housing-focused Clinical Case Managers and social service dollars for wraparound supports, expanding DACC’s jurisdiction, and the implementation of DACC’s Mobile Court have had an immense impact for the people DACC serves and the community overall. DACC has made great strides forward this year and also continues to see significant demand for their services. Keeping in mind the anticipated limitations the City faces in the Fiscal Year 2025-26 budget process, and the urgency of top need for DACC, the DACC Advisory Board is focusing budget recommendations this year on one item to continue a critical grant-funded rapid rehousing and case management program that’s at risk of ending without investments from the City. Losing the 6 case management FTEs and associated programmatic funding would have detrimental impacts that would ripple across all of DACC’s Homeless Services and their ability to serve as part of the City’s emergency response system at the current level provided. Recommendations: 1. Fiscal Year 2025-26 Priority: $2,187,348 of ongoing funding in Fiscal Year 2026-27 budget for six grant-funded clinical case managers and programmatic funding to continue connecting clients to long-term, stable housing. 2. Future Considerations: Plan for ongoing funding to augment DACC’s Intensive Case Management capacity by adding two housing-focused case manager FTEs and corresponding programmatic funding to continue connecting clients to housing. Description of Recommendation to Council Category 1: Support for City Council Initiatives 1. $2,187,348 of ongoing funding in Fiscal Year 2026-27 budget for six grant-funded clinical case managers and programmatic funding to continue connecting clients to housing. Six FTEs, including 5 housing-focused Clinical Case Managers and 1 Clinical Case Manager Supervisor, and funding for housing expenses for clients served by these case managers were initially funded by Emergency Solutions Grants – CARES Act funding, which ended in 2022. These staff and programmatic expenses are now funded by the American Rescue Plan Act (ARPA), which was previously slated to end in December 2024. Grant terms have been updated to permit expenditures through the end of 2026; however, there is only enough remaining ARPA funding to cover this program through the end of 2025. Ongoing funding should be identified for these staff and resources to maintain current service capacity of serving approximately 100 individuals per year. If ongoing funds through the City are allocated in the fiscal year 2025-26 budget, continuity for the case management and housing resources would be ensured. Justification for this request includes:  Directly responsive to Council Resolution 20250130-083: This Resolution called for, “Starting with the Fiscal Year 2025-2026 budget,” to, “explore sustainable funding sources, partnerships, and opportunities to prioritize ongoing investments in a balanced homelessness response system,” including but not limited to identifying, “which homelessness programs that are currently funded by ARPA should continue and how they will be funded.”  Longstanding Board consideration: Understanding the need for this service capacity at DACC and for Austin’s broader Homelessness Response System, as well as the planning required for this size of an investment, the Board has identified this upcoming need in our last four budget recommendations as follows: o o o o Item 6 in the Fiscal Year 2024-2025 Budget Recommendation Item 2 in the Fiscal Year 2023-2024 Budget Recommendation Item 3 in the Fiscal Year 2022-2023 Budget Recommendations Item 3 in the Fiscal Year 2021-2022 Budget Recommendations   Fully staffed program with active clients: All six positions with this program are currently filled, with active clients being served on caseloads, some working toward gaining connection to safe and stable housing and others who have been housed and rely on the program for housing expenses and continued case management services. Some case managers with the program have been with DACC for multiple years and bring valuable expertise that benefit DACC clients, as well as the department. Without these staff, capacity to continue case managing the individuals currently served, along with funding for ongoing housing expenses, would drop off abruptly.. Impact to DACC’s Homeless Services Unit and Walk-in Services: All of DACC’s Clinical Case Managers across the Homeless Services Unit, including these grant-funded staff, are masters-level clinicians. To ensure seamless operations, there is cross-training and shared responsibilities across all staff, including helping with coverage for DACC’s Walk-in Case Management Services, which serve over 60 people per day. This avoids soaring wait times and potential clients being turned away due to capacity issues when assigned Walk-in Case Management staff are sick, on vacation, or training. If these 6 FTEs are no longer part of DACC’s team, service availability will be affected across all case managers’ caseloads, reducing the time they have to work with their clients working toward obtaining safe and stable housing.  DACC’s role as part of City’s emergency response system: DACC has proven to be a pillar of Austin’s emergency response system for serving unhoused individuals in times of crisis. DACC was one of the only local services providers for unhoused individuals that maintained in-person services throughout the pandemic, including adjusting services in real time to meet the evolving needs. COVID exposed the immense need for human power as part of our response efforts, and those needs continue today. In addition, DACC plays a vital role in the City’s response to extreme weather events. DACC serves as the sole embarkation hub that coordinates registration, crowd care, and connection to transportation for individuals seeking a safe place to sleep when Cold Weather Shelters (CWS) are activated. Most nights DACC serves 200-300 people, but those numbers can be much higher. For example, DACC served almost 450 people during the CWS activation on February 19, 2025. The Board would like to express deep gratitude for the DACC staff who stay late, and acknowledge that thanks to their services, the community can stay home, safe and warm with their families, and know that our unhoused neighbors are getting high quality care. The Board urges Council to recognize this tremendous contribution by DACC and the urgency of ensuring it is not reduced in future years as our changing climate continues to test the City’s emergency response infrastructure. 2. Future Considerations: Plan for approximately $729,116 of ongoing funding to augment DACC’s Intensive Case Management capacity by adding two clinical case manager FTEs and corresponding programmatic funding to continue connecting clients to housing. Consistent with DACC’s five-year plan to expand staff sustainably each year to address growing needs for services over time, these funds would enable DACC to hire two housing-focused case manager positions, along with an additional vehicle and corresponding social service dollars per case manager. On average over the last several years, DACC has consistently had a waitlist of between 200-300 people wanting to engage in housing-focused Intensive Case Management services, which has increased further in the last year. Council has fulfilled this request the last two budget cycles to help DACC respond to the growing need for services in the community and work toward the five-year staffing plan. Understanding the urgency of continuing the ARPA-funded program identified in item 1, the Board is highlighting this as an ongoing priority for future budget years but asking that priority be given to retaining existing staff and programmatic funding. Please see Item 2 in the Board’s Fiscal Year 2024-2025 Budget Recommendation for more context around this request. Rationale: DACC is serving Austin’s most marginalized residents and stabilizing their lives to the benefit of the entire Austin community. The Downtown Austin Community Court Advisory Board wholeheartedly and enthusiastically supports DACC’s services and its request for resources to continue assisting its clients. The Downtown Austin Community Court Advisory Board urges City Council to allocate funds and explore all available means to avoid setbacks, to maintain and ultimately increase DACC’s efforts over time to address homelessness in Austin. Vote 6-0 For: Against: 0 Abstain: 0 4 Absent: Dr. Anu Kapadia, Vice Chair Attest: ___________________________________