Local
Seattle and King County face $16.7 million KCRHA shortfall as dissolution push returns
An outside financial review estimates the King County Regional Homelessness Authority is short $16.7 million, renewing calls from local council members to dissolve it. Seattle and King County say they are working on repayment while trying to protect homelessness services.
SEATTLE — A financial review of the King County Regional Homelessness Authority found a $16.7 million shortfall after accounting for expected funding, prompting renewed calls from local council members to dissolve the agency and leaving Seattle and King County to determine how to address the loss.
The review, conducted by Turning Point Strategic Advisors for the city and county, reconciled KCRHA’s cash and accounts receivable from the authority’s creation in 2021 through July 2026. The city and county said Thursday they did not yet know how the shortfall would be handled.
Seattle City Councilmember Maritza Rivera and King County Councilmember Rod Dembowski renewed their calls to dissolve the agency after the findings. Rivera said the new information reinforced her position, adding that the city needs stronger oversight of its contracts. “When we don’t perform this critical oversight, we pay for it,” she said.
Dembowski said the findings indicated overspending on administration and millions of dollars in interest. He also said they conflicted with earlier explanations that missing funds might involve services already delivered but not yet billed.
King County Councilmember Reagan Dunn also backs dissolution, arguing that the region should restore accountability for public spending and change its homelessness policies. The authority’s financial problems raise questions about stewardship of public money, while any restructuring must also account for the people who rely on services funded through KCRHA.
King County Executive Girmay Zahilay and Seattle Mayor Katie Wilson said the city and county are working together on repayment while seeking to protect those services. In a joint statement, they called the unrecoverable balance “unacceptable” and described the reconciliation as an important step toward reliable financial accounting.
The officials said they have required corrective action, brought in independent monitoring and imposed additional approval requirements for hiring, discretionary spending and new financial commitments. A plan announced in July calls for stabilizing and narrowing KCRHA’s role, then returning administration of locally funded service contracts to the city and county starting in January 2027. The two governments’ human services departments are preparing for the transition.
Regional discussions about the future of the homelessness response are expected in the coming months. KCRHA’s governing board is also expected to discuss the agency’s finances and staffing at a meeting in early November.