Balancing Act: Fiscal Realities of Lodi's Access Center
February 12, 2024 by J.P. Doucette

In recent developments regarding the construction and operation of the Access Center on Sacramento Street, funding concerns that were raised by the Lodi Chamber of Commerce last fall are already being realized. Last fall, the project design was to accommodate 208 beds along with a workforce education center. Now the project is facing significant revisions due to financial constraints. The original plan, estimated at $14.2 million, has now been scaled down to include 106 permanent beds (with the ability to add temporary cots if needed) and fewer amenities, with a projected cost of $10.9 million. .

One of the primary concerns voiced by the Chamber of Commerce in a letter to city council in September of last year pertained to the sustainability of funding for the Access Center's operations over the proposed five-year contract period. The Chamber emphasized the need for a detailed breakdown of potential future funding sources and raised questions about where the remaining funds required to bridge the financial gap would come from. It was the belief of the Chamber that any funding shortfall would have to be filled with General Fund dollars. Recent updates reveal that operational funding will fall woefully short, jeopardizing the viability of the center. This issue is being exacerbated by recent revenue losses by the City and an expectation of falling sales tax and other revenues in a recessionary environment. 

The Salvation Army was selected late last year to be the operator of the Access Center. This decision was made based on their long track record of serving unsheltered people in the Lodi community. The decision was met with some backlash from some members of the Lodi Committee on Homelessness and proponents of the Inner City organization. These advocates believe the contract should have been granted to Inner City, who are currently operating the temporary Access Center. There was a 25% difference in the operating cost proposals (with Salvation Army being higher), however with either operator, there will be a significant shortfall in funding. Even at Inner City’s reduced operating expense, the Center would only be able to operate a few months longer based on available funds.

The Chamber continues to support efforts to combat the negative effects that the unsheltered population has on public safety and quality of life for all residents. We appreciate the steps taken by the City Council to approve parking restrictions on Sacramento St near the Access Center and the expansion of the city Safety Ambassador program. There needs to be continued transparency on how the Access Center is going to be funded, and the effectiveness of the programs being offered to move people into transitional or permanent housing. Unless something drastically changes, the funding for the Center will be coming from our local tax revenues, and we will have to answer to each other whether we want to continue to support it. 

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