Twin Cities Shelters: Funding Crisis & Winter Demand

by Archynetys News Desk

As the need for shelter rises amid bitter cold temperatures, the people running them are worried about their financial futures.

Several organizations that operate shelters in the Twin Cities have been reporting on the rising demand and overflowing spaces, and some say the situation isn’t sustainable.

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Union Gospel Mission Twin Cities’ men’s shelter continued to burst at the seams on Sunday.

CEO Pam Stegora Axberg converted the chapel on site into extra shelter space weeks before the coldest temperatures of the season set in, and she said even more people have been sleeping in the lobby.

“I moved to having up to 45 men in my lobby,” she said. “In my women and children’s transitional housing, I turn away two for every one that I can accept.”

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She says Union Gospel Mission Twin Cities is 94% funded by donations, and fewer donations have been coming in as the organization has had to step up operations.

“So we’re very fortunate that we have very generous donors who want to give back, especially to people they don’t even necessarily know. But we’ve actually seen with inflation and with the economy that a lot of our donors are also strapped, so they are giving what they can, but at times like this, when the need is so great, we hire extra staff, or hire extra security or provide extra meals, because this is a time for us to lean in during a time of need,” Stegora Axberg said.

The men’s shelter was in the process of a $14 million expansion to better meet demand as of this report. However, it’s keeping up with everyday operational costs that has several shelters concerned.

“The heating costs are more expensive right now, and the numbers that we are serving and the meals, and all of the wraparound care that we provide,” Stegora Axberg said.

Asked, she said she was concerned about long-term sustainability.

“I do. Our community has a lot of concerns,” she said.

Keith Kozerski, chief program officer for Catholic Charities Twin Cities, shared similar worries on Saturday with their Higher Ground Minneapolis shelter open 24 hours a day for the weekend.

“And that’s without additional funding or resources, so it stretches our already tight budget even further,” Kozerski said.

“What I would say is Catholic Charities is a long-term stable organization, but with tightening resources from the government and people having their philanthropic dollars stretched, it is not a sustainable path long term,” he said when asked about financial sustainability.

Interfaith Action of Greater Saint Paul was also searching for additional operational dollars when 5 EYEWITNESS NEWS talked with Project Home Emergency Family Shelter Manager Donna Franklin earlier this month.

The new shelter facility opened in August, and Franklin said it has been operating beyond capacity.

“As soon as we get more operational dollars, we’ll expand. We’ll open up the second floor here,” Franklin said.

Asked if there’s a ‘breaking point’ for the shelter system in the Twin Cities, Stegora Axberg replied, “Well, some people might say we’ve already reached the breaking point… I actually think that we’ve already found that breaking point and we’re trying to find solutions to it, and like, what I want to do, we just aren’t able to do it fast enough.”

“And it impacts all of us,” she added. “So we’ve got to find ways to use what resources we have better and ways to tap into new resources as well.”

Uncertainty around government funding, such as recent interruptions to SNAP benefits, and a tough job market have contributed to more people needing shelter and housing resources, according to Stegora Axberg.

She added that a coalition of shelter organizations, business owners, and local and state officials will be meeting on Monday to strategize for what could be a long winter ahead.

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