Amid a $4.7 million budget deficit for 2026, the King County Regional Homelessness Authority (KCRHA) is cutting 22% of its administrative workforce and facing scrutiny over the recent termination of its “Partnership for Zero” pilot, which laid off direct service providers and sparked concerns about housing stability for staff, many of whom previously experienced homelessness.
The King County Regional Homelessness Authority (KCRHA) is navigating a complex and challenging period, announcing a significant 22% reduction in its overall workforce to address a projected $4.7 million budget shortfall in 2026. This decision comes amidst anticipated federal funding cuts and ongoing budget challenges from local jurisdictions like Seattle and King County. Beyond these administrative adjustments, the agency is also facing intense scrutiny and ethical questions regarding the termination of a direct service program that has left dozens of employees, many with personal experience of homelessness, in precarious situations.
Understanding KCRHA’s $4.7 Million Budget Shortfall
The projected $4.7 million budget shortfall for 2026 is attributed to several critical factors, creating a ripple effect through the agency’s operations. A primary cause is the lapse of one-time federal funding tied to the pandemic, which had provided a temporary boost to resources. Additionally, KCRHA notes its historically low administrative rate, ranging from 5.7% to 8.5%, compared to an industry average of 10% to 20% for comparable agencies. The agency’s reimbursement-based funding model also exacerbates the issue, forcing it to take out high-interest loans to cover operational costs while awaiting reimbursements.
In response to this looming deficit, KCRHA CEO Kelly Kinnison outlined initial actions during a governing board meeting. These measures included a hiring freeze that extended through most of 2025 and will continue, with few exceptions, through the first six months of 2026. The agency also drastically limited travel, reduced its reliance on consultants, and strategically reallocated some staff from less critical roles to more essential operational positions. These internal adjustments aimed to mitigate the financial strain before more drastic steps were taken.
The new plan specifically targets a reduction of approximately $3 million from the administrative budget. This translates to cutting its administrative office staff from 106 full-time positions to 84, directly accounting for the 22% decrease. Kinnison emphasized a focus on eliminating vacancies and streamlining the leadership structure, noting feedback that the agency “felt top-heavy.” Importantly, the employees affected by these administrative cuts were not directly involved in providing services but rather in supporting the administrative functions of the agency, as detailed in the official KCRHA governing board meeting packet from October 2025.
Federal and Local Funding Pressures Intensify the Crisis
The budget challenges are not isolated; they are part of a broader shift in funding landscapes. Kinnison indicated that KCRHA anticipates a significant cap on federal spending for permanent supportive housing. This change stems from an executive order by President Donald Trump, redirecting federal funding priorities from “Housing First” strategies to “treatment first” models. This policy pivot could result in KCRHA losing approximately $23 million in federal funding from the U.S. Department of Housing and Urban Development’s Continuum of Care program, with a likely cap at about 30% of historical spending levels.
Locally, Seattle Mayor Bruce Harrell has also voiced concerns, urging KCRHA to re-evaluate its regional approach to King County’s homelessness crisis. Harrell highlighted that approximately 70% of Seattle’s homeless population became homeless outside the city, yet Seattle shoulders a disproportionate share of resources. The city contributes $110 million to KCRHA in 2025, accounting for 53% of the agency’s total budget. Furthermore, 85% of tiny homes and 63% of shelters in King County are situated within Seattle city limits, according to a report from The Center Square. These statistics underscore the pressure on Seattle and the need for a more equitable distribution of responsibility and resources across the region.
The “Partnership for Zero” Layoffs: A Crisis of Trust and Stability
Adding another layer to KCRHA’s difficulties is the termination of its “Partnership for Zero” program, an effort launched a year and a half ago to combat homelessness in downtown Seattle and the Chinatown International District. Unlike its usual practice of contracting with nonprofits, KCRHA directly hired over 30 “systems advocates” for this pilot program to work on the streets and guide individuals through the housing process. A significant aspect of this initiative was that nearly all these new employees had personal experience with homelessness, bringing invaluable lived expertise to their roles.
However, the program’s conclusion in September, despite being labeled a “pilot” internally, was not communicated as such in job postings or offer letters. Former systems advocate Lisa Byoune, 42, explicitly stated, “It was never ever even in the conversation about a pilot program or temporary.” This miscommunication led to heartbreaking decisions for employees like Byoune and Savannah Jacobsen, 48, who were forced to choose between keeping housing vouchers or accepting the KCRHA job with a higher-than-average wage. Jacobsen let her federal Section 8 housing voucher expire just a week before the layoffs, only to find herself without it when the job ended.
The consequences have been severe, leading to renewed housing instability for some. Byoune, a single mother, made $80,000 a year, allowing her to afford a two-bedroom apartment. However, with the program’s abrupt end and no severance pay, she is now behind on rent and fears becoming homeless again. Adam Rice, 47, quit his job in Los Angeles and moved to Seattle for the position, now burdened by a lease until March. KCRHA Interim CEO Helen Howell acknowledged the agency’s missteps, stating, “leadership should have been more clear from the beginning about the trajectory of the pilot, and more conservative about predictions for the future.”
While KCRHA has rehired 15 of the 38 affected employees into temporary positions to wind down the program or other roles, and is assisting others with job searches and reconnecting to housing vouchers, the damage to trust is significant. Karen Estevenin, executive director of PROTEC17, the union for authority employees, lamented the “dissolution of this program” and underscored “the importance of fully funding and supporting direct service public programs that do not rely on continually fluctuating donors and donations.” The program reportedly ran out of funding, largely from philanthropic foundations, and KCRHA indicated a desire to refocus on its administrative functions rather than direct service provision.
Long-Term Implications and Community Impact
The current situation at KCRHA presents a concerning dual crisis. On one hand, the agency is taking necessary but painful steps to shore up its administrative budget amidst shifting financial currents. On the other, the termination of the “Partnership for Zero” pilot has exposed a critical gap in communication and support for frontline workers, particularly those with lived experience, who are often most vulnerable to housing instability themselves.
The long-term implications extend beyond KCRHA’s internal structure. The reduction in administrative support, coupled with potential federal funding cuts, could strain the agency’s ability to effectively manage its operations and allocate resources to service providers. More critically, the layoffs of systems advocates directly impact the human element of homelessness response. When individuals with lived experience are recruited to provide direct services, the ethical imperative to ensure their stability is paramount. The current scenario risks eroding trust within the community and discouraging future participation from those who can offer invaluable perspectives.
As King County continues to grapple with its homelessness crisis, the coming years will test KCRHA’s resilience and its ability to adapt to complex financial and political landscapes while maintaining its commitment to those experiencing homelessness. The success of its regional approach will hinge not only on sound fiscal management but also on transparent communication and equitable treatment of all staff, especially those on the front lines of service delivery.
