New Homelessness Report Uses Flawed Methodology
Research groups say it results in erroneous conclusions about homelessness
FOR IMMEDIATE RELEASE
DATE: October 21, 2022
Contact: Elliot Goldbaum, 303-990-6691; Alicia Caldwell, 303-810-9909
(DENVER, CO) - October 21 - The Colorado Fiscal Institute and the Bell Policy Center, two locally based research organizations, have serious concerns about the methodology used in the Common Sense Institute’s (CSI) most recent report about homelessness in the metro Denver area.
Released today, the report by the conservative-leaning think tank claims $2 billion has been spent on the issue of homelessness in the past three years.
CSI’s report artificially inflates the amount of money spent in addressing homelessness, and comes to extreme conclusions about the costs associated with people who are unhoused in Denver. It neither serves the public interest nor furthers constructive conversation about how to address the underlying problems.
Chris Stiffler, senior economist with the Colorado Fiscal Institute said Coloradans need context not provided in the report in order to assess homelessness programs.
“The biggest flaw with this report is that the authors didn’t give any meaningful context to their expenditure figures,” Stiffler said. “Just giving a dollar amount without any context is like a doctor telling you a test result without telling you whether the number is a good or bad one.”
Many of the methodological concerns stem from the report’s expenditure calculations. For example:
Many organizations which provide services for those experiencing homelessness also support those who are housed. The report’s primary reliance on agency 990s and reports to the Secretary of State are unlikely to adequately represent the amount of money spent solely on supporting those experiencing homelessness.
The use of health care expenditures from Denver Health significantly, and unnecessarily, inflates total costs. Regardless of their housing status, many of these individuals would likely still have used health care services this provider.
These two expenditures (nonprofit spending and Denver Health) make up a significant portion of the report’s documented expenses. As a result, methodological flaws regarding these two items would significantly impact the findings.
"Coloradans deserve credible research on important issues," said Bell Policy President Scott Wasserman. "Unfortunately, the methodology used in the report produced by CSI is flawed and as a result, the conclusions are distorted, do not serve the public interest and in fact create antipathy when we should be working together to find solutions. Sadly, this isn't the first time they've done this."
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The Colorado Fiscal Institute provides credible, independent and accessible information and analysis of fiscal and economic issues facing Colorado, and advocates for policies that promote equity and widespread prosperity.
The Bell Policy Center is committed to research, outreach and advocacy that advances public policy change to make economic mobility for every Coloradan a reality. We are nonprofit and nonpartisan. Learn more: www.bellpolicy.org