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Report: Arizona spends $1B annually on homelessness

Arizona’s homeless population has reportedly increased nearly 30% over the last three years, data shows
Advocates rush to help those living with homelessness in record heat
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PHOENIX — Arizona spends $1 billion annually on homelessness in the state, according to a non-partisan research organization.

The recently released report from Common Sense Institute Arizona can be viewed in-depth here.

Those costs include things like shelter, treatments, food, and other services, coming to about $44,000 per individual.

Arizona’s homeless population has reportedly increased nearly 30% over the last three years, data shows. Despite the growth, there are 20% fewer shelter beds available than there were in 2007.

"The relationship is clear – an emphasis on treating homelessness primarily as a housing problem has resulted in a massive increase in the population in permanent supportive housing, without reducing homelessness overall," the report states."

Katie Ratlief is the executive director of the Common Sense Institute. She says the billion dollars is mostly spent on housing.

“We broke it down by the kinds of services provided, overwhelmingly the resources are behind providing housing,” Ratlief said. “That's what the bulk of resources are currently going to. A much smaller percentage of resources are going to things like health care, and a very small portion of the resources are going to specifically substance abuse.”

With the bulk of spending going to housing and people experiencing homelessness, a bipartisan group of lawmakers is looking to address Arizona’s housing crisis. Democratic Representative Analise Ortiz (Maryvale) is a longtime advocate for affordable housing and says two bills are making their rounds at the legislature to address the shortage.

“One of those bills would legalize casitas statewide. Another bill would make it easier to build smaller starter homes,” Ortiz said. “What I really want people to understand is that if someone who is struggling and living paycheck to paycheck finds an affordable casita that they can move into, that means that they have now been deterred from potentially becoming homeless.”

The other key numbers the analysis found were that there are 167 nonprofit homeless service providers for more than 14,000 people experiencing homelessness in the state in 2023. An additional 9,600 people are estimated to be in permanent supportive housing, the report states.

Data also shows that the rate of deaths among the homeless population is also increasing, especially those deaths related to drug use.

An Arizona state representative recently introduced a bill that would amend current laws to create drug-free zones within areas around service providers.

Last month, volunteers conducted a Point-In-Time count to assess the number of people living on the streets in the Valley. Those updated numbers will be available in mid-2024.