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Let’s Talk Dollars

Sydney LightsIf Taxpayer is your middle name, and if your city or state contains any people experiencing homelessness, you might want to know about some interesting strategies that have been tried over the past couple of years. The stories originate in different places, but they have two things in common: saving tax dollars and improving the lives of the homeless.

The beauty of it is, the steps these cities have taken and the gains they have reaped are outcomes that anyone can get on board with. No matter where a taxpayer resides on the political spectrum, or what opinions might be privately held about the ultimate causes and cures of homelessness, every dues-paying citizen in her or his right mind wants to reduce municipal expenses and save tax dollars.

Let’s pause for a brief disclaimer. The taxpayer addressed here is the homeowner, the apartment tenant, the business owner — anyone whose life is stable and who feels proprietary about the area’s future. It’s a convenient label for the purposes of this discussion.

But we don’t mean to imply that homeless people don’t pay taxes. No, no, no. Everyone pays sales tax for items they buy. More significantly, an astonishing number of homeless people are actually employed and still can’t afford a place to live. Imagine that! It’s called economic homelessness. Yet taxes are withheld from their paychecks, just like anybody else’s.

O Canada

In 2012, Benjamin Gillies published an online piece about a Canadian Homelessness Research Network report. The story was titled “Giving the homeless a place to live costs less than providing shelters and emergency services.” The title could not have been more explicit, and the bottom line is this:

There is now hard data to show funding emergency services, shelters, and day programs is just not as cost-effective as providing homeless citizens with a place to live and the social supports to help them stay there.

Gillies goes on to give a streamlined version of the report:

What author Stephen Gaetz makes clear is that calculating the cost of homelessness must not only account for shelters or soup kitchens, but also peripheral services, such as health care and the justice system, that homeless people come into contact with more frequently than society at large. As they are often poorly nourished, unable to engage in adequate sanitation practices, and live in settings where exposure to communicable disease is high…

In addition, 40 per cent of this population suffers from mental health issues. As a result, they are hospitalized five times more often than the general public during any given year, usually for longer periods.

In Toronto, how much did a month in a hospital cost? Almost $11,000. How much did a month in a shelter bed cost? Almost $2,000. Now, brace yourself for the knockout punch:

Putting a roof over that same person’s head, either with rent supplements or social housing, would require just $701 or $199.92, respectively. In fact, a similar study conducted in British Columbia discovered that province’s homeless population currently costs the public system $55,000 per person per year, but if every homeless person were instead provided with adequate housing and supports, they would require just $37,000 — saving the province $211 million annually.

What American state would not like to save a couple hundred million a year? Plus, being housed has the semi-magical power of keeping people pretty much out of the hands of the criminal justice system. At the very least, they’re not being arrested for public sleeping!

The southern hemisphere

From Australia, news came of the Michael Project, “a three-year initiative to provide homeless men with quick access to a range of support, including dental and mental health services, personal grooming and hygiene, education and personal fitness.”

In hard-cash terms, even after the Michael Project costs were paid, this initiative saved the public purse $3,600 a year for each homeless person it helped. The project actually aided several thousand men during that time, but in the city of Sydney, 106 individuals were carefully tracked and followed up on, to see how their lives worked out. The findings?

Over the course of the year the money spent by governments on services such as ambulances, emergency department care, court and police costs dropped by an average of $8446 for each person…. [O]ver that period they were far less likely to go to hospital for emergency help, relied less on government-funded emergency accommodation, were more likely to find work and were much more likely to find long-term housing.

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Source: “Giving the homeless a place to live costs less than providing shelters and emergency services,” TheStar.com, 10/15/12
Source: “Helping homeless ‘saves $3600 per person’ ,”HeraldSun.com, 04/17/12
Image by Flying Cloud

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