Latest York City is spending $81,000 per street homeless person, a figure that exceeds the average take-home pay of $40,600 in the city, according to State Comptroller Tom DiNapoli.
Rising Costs and Limited Impact
City Hall projects that spending will increase to nearly $97,000 per person in the coming year. Expenditures on services for the street homeless population have risen dramatically, from $102 million in 2018 to $368 million last year – a 320% increase – while the street homeless population itself has grown by only 26%.
The $368 million figure does not include approximately $500 million spent annually on supportive housing, mental health co-response teams, NYPD homeless-clearing operations, and other related programs.
Comptroller DiNapoli cautioned that the increased spending has occurred without a clear focus on the effectiveness of the services being provided. It is estimated that particularly little of the $81,000 spent per person directly benefits those experiencing homelessness, with a significant portion going towards the salaries of outreach workers tasked with counting and assisting the unsheltered.
This situation, according to reports, exemplifies how New York City’s “nonprofit-industrial complex” has transformed substantial funding allocated to combat homelessness into a system that primarily sustains jobs rather than effectively addressing the issue.
City Comptroller Scott Stringer stated, “It’s a clarion call to make sure every dollar counts.” Mayor Zohran Mamdani’s administration has indicated a preference for increasing revenue—through higher taxes—to address the issue, a position criticized by some as failing to address ineffective programs.
Frequently Asked Questions
What is the current per-person spending on street homeless individuals in New York City?
The current spending is $81,000 per street homeless person, with projections to reach nearly $97,000 in the coming year.
How has spending on homeless services changed since 2018?
Spending has increased from $102 million in 2018 to $368 million last year, a 320% increase.
What does Comptroller DiNapoli say about the increased spending?
DiNapoli warns that the spending increase has occurred without a focus on where resources are going and whether the services are working.
As New York City grapples with these escalating costs, what steps might be taken to ensure that resources are allocated more effectively to address the needs of its homeless population?
