The city of Seattle and King County will be on the hook for at least $16.7 million in previously unreported costs accrued by the King County Regional Homelessness Authority, city and county officials said Thursday afternoon.
And, wouldn’t you know it, none of that $16.7 million actually went to homeless people
The bulk of the shortfall resulted from KCRHA overspending the amount of administrative funding they had coming in. That excessive spending included lavish outlays on high-priced temporary staffing firms like Robert Half, which charges hefty recruitment fees to do work that would more typically be done by regular full-time employees. It also includes the salaries of KCRHA CEO Kelly Kinnison and recently promoted Chief Operating Officer William Towey, who make a combined total above $600,000, according to the union that represents many KCRHA employees.
Oh god, it’s dumber and more infuriating than I thought:
The largest portion of the KCRHA’s overspending resulted from errors in calculating how much money the agency would receive as the result of grants to homeless service providers.
Every dollar of funding the KCRHA receives and sends to service providers in the form of grants comes with an “administrative allowance”—a percentage of the contract amount that enables the KCRHA to administer the contracts. But that allowance is based on how much of the money actually gets spent—if a provider can’t use all the money it receives in a certain year, the amount the KCRHA receives to administer that money also decreases.
What the KCRHA did, according to the report, was assume that 100 percent of every grant it administered would be spent each year, and spent the administrative allowance that would apply if that was true. This resulted, over time, in an administrative “overspend,” based on contractor underspending of $259 million, of $15.7 million by July 2026. On top of that, the KCRHA overspent what it was bringing in by another $3.3 million on top of the amount that resulted from that miscalculation. And the KCRHA owed an outstanding $4.4 million in interest on its debt to King County, which serves as the KCRHA’s bank.
What a clusterfuck.
