Deborah Kafoury

Multnomah County Chairwoman Deborah Kafoury, center, and Commissioners Loretta Smith, left, and Judy Shiprack listen to county staff discuss the location of a proposed $250 million courthouse at the west end of the Hawthorne Bridge on April 16, 2015.

(Oregonian file photo)

Multnomah County Chair Deborah Kafoury put efforts to solve the region's homelessness emergency front and center in her 2016-17 spending plan, set for release Thursday.

Kafoury, in an interview with The Oregonian/OregonLive, made good on last year's promise to spend $10 million in general fund money on housing and homelessness services. To help find that money, she asked departments to take a 2 percent squeeze.

And, in a move that comes in the midst of a leadership crisis involving Sheriff Dan Staton, Kafoury also proposed eliminating 118 beds from the Inverness Jail along with other cuts in hopes of putting more cash into social services programs. Those reductions would eliminate nearly 13 positions and save nearly $1.5 million.

Union leaders this week asked Staton to step down, as he faces a state criminal investigation, allegations of misconduct and unprecedented public criticism.

Kafoury didn't link the cuts to Staton's troubles. She said cutting jail beds ties into a national effort to make changes in the justice system. Her budget document redirects the savings to programs aimed at treating illness, preventing violence and reducing recidivism.

"I believe jail is a tool," she said. "It's an expensive tool. And it doesn't work for everybody."

A citizen panel issued a report last year that found up to 43 percent of inmates in the county's jails may suffer from mental health issues.

Kafoury said putting more money toward social programs, including those serving children, will help stop or prevent the cycles that lead to incarceration.

Reducing disparities in the community is the overall theme of the proposed budget, she said.

Kafoury's $1.87 billion spending plan for 2016-17 marks a 7.9 percent increase over the past fiscal year's budget. But the county's general fund, which makes up its largest pot of discretionary funding, is up just 3.5 percent, to $583.1 million.

That expansion is driven by new rising property and business income tax revenues. Kafoury's budget, however, banks some of that money to help ensure continued surpluses over the next two years.

Some $34 million in one-time general fund revenue will be spent on projects including the planned downtown courthouse replacement project ($19.9 million), a new building in east county ($3 million) and the North Portland Dental Clinic ($1.8 million).

The budget plan's release will kick off a series of public meetings. After the hearings, along with possible tweaks, the Board of Commissioners is expected to adopt a final budget by May 26.

-- Emily E. Smith

esmith@oregonian.com

503-294-4032; @emilyesmith