AUSTIN (KXAN) — It’s back to the drawing board for the City of Austin after a canceled contract with a company that was going to review the services for people experiencing homelessness.
The city expected to sign a contract with McKinsey & Company, but on Feb. 22, Interim City Manager Jesús Garza sent out a memo stating: “…it has become difficult to define a successful scope, so we will not be proceeding”.
During a Feb. 7 Public Health Committee meeting, Garza spoke about the homeless crisis in Austin.
“The number of homeless have not decreased, but in fact have increased,” Garza said.
While addressing the committee, Garza highlighted the importance of everyone being on the same page and working together to end homelessness. He also discussed concerns.
“It is our intent to be able to be able to serve the poor and vulnerable in a more effective way,” Garza said. “I think the current system and the way we approached it has not met those objectives.”
The plan was to hire McKinsey Company for a 2 million dollar review of homeless services in Austin. The city would pay $1 million while Travis County, Integral Care and Central Health covered the rest of the costs.
“But there has been a lot of questions about the review,” Garza stated at the committee meeting.
“My support for the McKinsey contract was based around that this was a joint venture, that Travis County would also be helping fund,” said Austin City Council member Vanessa Fuentes at the same meeting. “Given their change in stance. I have some concerns about the city putting more than one million.”
Council member Mackenzie Kelly raised concerns after the announcement was made.
“I am deeply disappointed by the city manager’s decision outlined in today’s memo regarding the status of negotiations with McKinsey & Company, Inc. for a comprehensive review of our homeless strategies, programs, and services. My ongoing advocacy for an external audit of homeless spending stems from a commitment to ensuring transparency and accountability in how taxpayer funds are utilized, particularly as they impact the most vulnerable members of our community. It is imperative that we safeguard against any possible mismanagement of funds, especially for those receiving critical services. While I understand the complexities involved in this decision, I will continue to push for an external audit and collaborate with all stakeholders to find a path forward in our shared goal of addressing homelessness effectively and compassionately.”
-Council member Mackenzie Kelly.
Council member Ryan Alter said despite the contract being canceled, the focus is still on solving homelessness.
“Unfortunately as the process played out, some of out other partners were not quite in the same place as we were in terms of wanting to go forward,” Alter said. “Even though we are not moving forward with the contract, we are still going to move forward with the mission of making sure everyone knows what each other is doing and building on our efforts and not duplicating”
KXAN also reached out to Travis County after the contract was cancelled.
“The Travis County Commissioners Court remains committed to coordinating and aligning strategies for our unhoused neighbors through a collaborative and transparent process. Providing safe, stable housing and resources for our unhoused population is of the upmost importance. We will continue working with our partners at the City of Austin, Central Health, Integral Care, and other stakeholders to accomplish these goals.”
– Hector Nieto, Travis County Spokesperson.
