Downtown Salem dropin center for atrisk youth closes after funding cuts
Feb 25, 2026
A drop-in center that has provided mental health services to thousands of Salem youth closed Friday, Feb. 13, after losing most of its funding.
Salem Drop, run by the Eugene-based nonprofit Youth Era, first opened Salem in 2018 near Riverfront Park. The center provided a safe, after school space
for young people facing mental health challenges, homelessness, addiction and other difficulties.
The center was forced to shutter after PacificSource pulled about two-thirds of its funding for operations, citing financial reasons, according to Youth Era Chief Operating Officer Tia Barnes.
PacificSource, which administers Medicaid in Marion and Polk counties, funded about 90% of the drop-in’s operations, Martin Rafferty, Youth Era chief executive officer said.
The reductions made it “impossible for a small program like the Salem Drop to stay running,” Barnes said in an email.
Salem Drop has served around 3,600 local youth, ages 14-21 since opening. At the time of closing, the center was seeing about 300 youth and family members, according to Rafferty.
The location at 246 State St. had a cozy atmosphere with tables for crafts and projects, comfy furniture and a cafe where teens and young adults could spend time after school, make art or play games.
PacificSource notified Youth Era Dec. 12 that the funding, which covered monthly overhead and other care payments, would be pulled by Jan. 1, Barnes said. Rafferty said the organization’s contract with PacificSource prohibited him from sharing specific funding amounts.
Rafferty went to his board to ask for $33,000 in emergency funding to prevent an abrupt shut down. That money supported the Drop from Jan. 1 to its closure.
Barnes said youth were notified of the closure in early February.
Rafferty said many of them reacted emotionally, while others wanted to fight to keep the center open.
Four employees at the Salem center, all working as peer support specialists, were laid off.
Rafferty described the decision as especially difficult given the vulnerable youth the center served.
“This is the first time where I ever had to go to my board and say, ‘We need to pay for this because there’s no way it’s fair to our staff or to our youth.’ It’s dangerous. Maybe that’s too dramatic, but it feels like that to me when you’re working with like youth with like suicidal ideation,” Rafferty said.
PacificSource attributed the move to financial challenges affecting Medicaid providers across Oregon, including increased enrollment and costs, according to Barnes.
Amber Conger, spokeswoman for PacificSource, did not respond to detailed questions from Salem Reporter about the decision sent Monday, Feb. 23 and Tuesday, Feb. 24.
This is the first drop-in center Youth Era has been forced to permanently close. They operate other drop-in centers in Clackamas, North Bend, Medford and Eugene, funded by local insurers administering Medicaid and counties.
Rafferty, who experienced homelessness and mental health struggles in his youth, said he was “afraid” for the kids and families who relied on the center.
“Those 300 families, I don’t know all of their faces, but I do know the majority of their stories, and it feels no one ever prepared me, in this job, that there would be this fear that you would have,” Rafferty said.
Oregon ranks among the worst states in the country for rates of youth depression and substance abuse disorder.
Youth Era was the only drop-in mental health center for youth in Salem.
Youth Era still has a contract with PacificSource, which could allow a peer support specialist to provide limited, one-on-one support to local kids, Rafferty said. Youth Era will only be able to reach about 10% of the Salem youth they served before with that model.
Stormie’s Place, a resource center for local youth ages 11-18, has seen an influx in drop-ins since the closure of Salem Drop, according to Hailey Hulsey, founder of Punx in the Park, which launched the center.
Stormie’s Place is open Monday, Wednesday and Friday from 2 – 6 p.m. in the basement of the Citizens Bank building at 333 High St. N.E., near the downtown Cherriots transit center. They provide a safe space for local youth to gather and find free resources like clothes, food and hygiene products.
The center has case managers who take appointments Tuesday and Thursday by referral. They help kids get back into school, obtain identification, find support for court appearances, build a resume and get connected to other resources.
Stormie’s Place saw 34 new youth between the start of February and Monday, Feb. 23. In January, the center had 29 new youth and served just over 200 youth total, Hulsey said.
Radness Ensues in Keizer is an all-ages community center offering free art classes, music lessons and regular concerts. It offers a safe space for peer support and resource navigation, but does not offer mental health or related services.
Have a news tip? Contact reporter Hailey Cook: [email protected] .
LOCAL NEWS DELIVERED TO YOU: Subscribe to Salem Reporter and get all the fact-based Salem news that matters to you. Fair, accurate, trusted – SUBSCRIBE
The post Downtown Salem drop-in center for at-risk youth closes after funding cuts appeared first on Salem Reporter.
...read more
read less