TRAVIS COUNTY, Texas — Editor's note: The above video is from our previous reporting that aired Feb. 5, 2024.
After Travis County commissioners voted earlier this month to not to participate in a third-party review of services for people experiencing homelessness, Austin Interim City Manager Jesús Garza said the review will no longer move forward as planned.
In an internal memo obtained by KVUE, Garza wrote that they would not proceed with the $2 million contract with global consulting firm McKinsey & Company because they "have concluded that the conditions for the assessment have changed such that we cannot achieve the community-wide impact originally envisioned."
County leaders had ethical concerns with McKinsey serving as the consultant on the project following an investigation by the New York Times that looked into McKinsey's role in providing sales advice to drug-makers who manufacture oxycontin.
"It's their pattern and their history of unethical behavior," Commissioner Brigid Shea said. "I could not in good conscience pay to have them do an important analysis of the city and the county and other operations."
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Travis County was also expected to pitch in about $400,000 for the contract, but leaders like Commissioner Jeffrey Travillion declined the request because commissioners did not feel included in the negotiations.
"We need to be involved in the planning process," Travillion said. "Why is that important? Because we have seen a lot of public housing stock go away and before more of it goes away, we need to make sure that not only do we keep the quality high but that we make sure that people have access to it."
Garza wrote that the original vision of the project included participation from the city of Austin, Travis County, Integral Care and Central Health.
Austin's Homeless Strategy Officer David Gray said earlier this month that he plans to return in the near future with a new plan. In his memo, Garza reiterated his support for a comprehensive review with everyone involved.
"The months of good work among representatives with all four entities to help define the scope of the assessment serve as a solid foundation to help us – together – determine a path going forward on our mutual purpose to make homelessness rare, brief, and nonrecurring," Garza said.