In the UK, they are looking at a 20% decline in beds for the homeless, and a 30% budget cut:
http://www.guardian.co.uk/society/patrick-butler-cuts-blog/2011/feb/10/homelessness-charities-funding-cuts
And I could also point to an article here about an increase in homelessness in the United States:
http://www.huffingtonpost.com/2010/12/22/homeless-families-increase_n_800040.html
http://www.pbs.org/now/shows/526/homeless-facts.html
But, the issue isn't now whether or not the problems are that bad, but future trends, based upon budget cuts, and potential economic slowdown and things getting even worse. And it is amazingly presumptive to assume if you cut funding and taxes, that somehow the problems will magically take care of themselves. As someone wrote in the thread, the drive could be to have the homeless sleep under bridges, like trolls.
