Shame on Oregon if this is all true.
We're not a huge state with unlimited resources. And the law should have handled public use. But digging people out of both addiction and homeless is incredibly difficult, and the longer they experience it, the harder it is. And compounding that: the more services we provide, the more people come from other states to use them. It's not something we can do alone.
Reagan repealed the Mental Health Systems Act in 1981, which had aimed to provide federally funded treatment services for the States. With it being very difficult to institutionalize people and no federal money to treat them, where will they go?