PHOENIX — The city of Phoenix is estimated to have a surplus of $76 million in its next budget cycle and officials are hoping to reinvest some of those funds into addressing the Valley's housing crisis.
According to a proposed spending plan released by the city, Phoenix intends to set aside $55 million of the surplus for future expenses and spend the remaining $21 million on various public programs during the next fiscal year.
The $21 million would be allocated to the following departments:
- $6.3 million to public safety and criminal justice
- $3 million for homelessness and refugee support
- $2.7 million to parks and recreation
- $1.6 million for economic development
- $1.5 million for affordable housing
- $1.3 million for climate and sustainability
- $3.7 million for general government
- $600,000 for neighborhood services
- $300,000 for historic preservation
Members of the city council have expressed wishes to prioritize their resources on addressing Phoenix's rise in housing costs as the region's rate of homelessness continues to escalate.
Earlier this year, Maricopa County noted a 35% rise in the number of locals experiencing homelessness.
"To me, this issue is the number one," said Councilmember Yassamin Ansari, "and everyone is looking to Phoenix to lead on this."
The city's proposed plan specifically allocates more staff and vehicles for programs that attempt to provide social services for the unsheltered population.
"The new positions will allow the Human Services Department to better oversee and manage homeless outreach programs with a focus on connecting with individuals and collaborating with social service agencies..." city records state.
The spending plan includes allocating $378,000 to the Phoenix Starfish Place, which provides affordable housing and supportive services to victims of human trafficking.
Other highlights of the budget plan include:
- Add legal staff who can help review Phoenix's police body-worn camera footage.
- Provide staff to operate a bookmobile library.
- Add funding to provide better services for clients in the Phoenix Veteran's Court and the Behavioral Health Court.
- Add funding to the city's cool pavement program, which attempts to reduce urban heat by paving specific streets.
Phoenix is planning to save a majority of the $76-million surplus to see how inflation and the lingering pandemic affect the local economy in the coming months.
"The set-asides will provide budget flexibility and can be used next fiscal year or in future years at council's direction," city records state.
City Manager Jeff Barton said Phoenix purposefully structured the proposed budget to "not overplay" the city's resources and promise projects or positions it can't deliver.
Job vacancy numbers continue to grow, Barton told the council this week, which puts a major strain on how Phoenix can plan for the future.
The city has until this summer to adopt a final budget for the 2022-2023 fiscal year. Phoenix will be holding public meetings on its proposed budget plan in the coming weeks.
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