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Austin Cancels $1M+ McKinsey Homelessness Study Amid Funding and Partnership Concerns

The decision follows uncertainties around partner contributions and concerns over McKinsey's controversial history, marking a setback in efforts to address the city's homelessness crisis.

  • Interim City Manager Jesús Garza announced the cancellation of the McKinsey contract, initially aimed at reviewing Austin's homelessness services, due to changed conditions and undefined scope.
  • The $2 million study faced funding uncertainties, with Travis County and Integral Care wavering on their financial commitments, leading to a reevaluation of the project's feasibility.
  • Concerns over McKinsey & Company's reputation and the effectiveness of the study prompted several City Council members to reconsider the contract, highlighting the firm's involvement in the opioid crisis.
  • Mayor Kirk Watson expressed disappointment over the cancellation, emphasizing the importance of the review in coordinating homelessness efforts and ensuring efficient use of funds.
  • The city of Austin continues to grapple with a homelessness crisis, with recent budgets allocating record amounts for homelessness services, underscoring the need for effective strategies and collaboration among local agencies.
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