Budget gamble by mayor risks 90 shelter beds that could lose funding this winter

Mayor Josh Morgan’s proposed 2025 Municipal Budget sets a tight deadline for senior governments to fund 90 existing shelter spaces in London — or potentially see them close Dec. 31.

While presenting his budget proposal to councillors, Morgan expressed confidence that the federal government will soon partner with the province on a new funding stream that could cover a $4.22-million request by Ark Aid Street Mission to continue operating 90 shelter spaces that opened last winter.

Specifically, on April 11 the federal government announced $250 million will be cost-matched with the provinces to support a housing-first approach to ending encampments and include supportive and transitional housing, housing-focused services, and rent supplements.

While an agreement with Ontario is yet to be announced, Morgan expressed optimism that senior governments can reach a funding agreement and roll out the funding before year’s end.

Part of London’s application for funding would be operating costs for the 90 spaces operated by Ark Aid Street Mission since last winter.

“We do not know exactly how that money will flow or the level that we would get at London,” Morgan said. “But this is an ideal potential source of financing for a Winter Response-style program, or costs associated with managing encampments and dealing with encampments.”

However, the short timeline and uncertainty worries leadership at The Ark.

“I fully understand the reasons for putting additional pressure on the other levels of government for more funding, we've heard promises made, and we need those dollars to flow,” said Executive Director Sarah Campbell who watched the budget meeting from the public gallery. “But I am disappointed, obviously. Without this being in the city budget, 90 people will become unsheltered and unhoused on Jan. 1.”

Later in the meeting while discussing the same potential funding stream Morgan explained, “Minister [Sean] Fraser said this money needs to flow in time to use for the winter. So, the timing and all of the signals that are being given is that we will have access to a pot of money of some size to assist us with, generally managing encampments and providing supports in that space.”

Campbell was disappointed that there was no acknowledgement in the mayor’s budget that year-round shelter spaces avoid the substantial annual cost of hiring and training staff each winter.

She said The Ark will attend upcoming budget engagement sessions next month to convince council members and the public that the 90 spaces must continue to be funded — even if its from municipal coffers.

On Tuesday, Campbell launched a petition as a place where the public can express their support.

Council deliberates potential changes to the mayor’s 2025 municipal budget on Nov. 21 and 22.

After that, the mayor may choose to accept or veto any of council’s changes to his budget.

Only a two-thirds majority of council can overrule his veto.

The budget will be finalized by Dec. 17 at the latest.