Nonprofits brace for budget emergency aftershocks, IOUs - Dayton Business Journal:

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While service providers don’t yet know whether they’ll receiv e IOUs — or what the amounts will be Sparky Harlan, CEO of the in Santa is prepared forthe worst. “We receive about $400,00p in state funding,” Harlan said. “We’re already accustomesd to getting money from the state late last year, for example, it took until December before we finally got paid.” For this year and last year the centerr has relied on a $150,000 line of credit throughy to cover the gap, along with $500,000p out of its reserve funds. The center’ operating budget is $10 million for fisca l 2009-10.
The money that may be on hold from thestatee covers, in part, the center’s shelter and drop-in program, streety outreach, and parenting “The problem right now is that we don’ty know for certain how much they’re going to hold said Harlan, who has been with the centetr for 26 years. “But this is by far the worst I’vw ever seen.” In anticipation of the state’e budget problems, 10 perceny cuts have already been plannedfor foster-cared payments. Locally there are 300 to 400 kids infostedr care.
Foster care rates are the same acrosswthe state, so families in high-cost areas such as the Bay Area get the same amount of compensation as people in more affordable “We’re fronting half a million dollars already,” she said. It’as a layered problem for the center, since in addition to statre money some comes from the federal Housing and Urban Development department. And Harlan said HUD is so slow it can take up to six montha for payments tobe “We’re hoping to get paid by July,” she “Nonprofits are just getting slammed.
” Harlan said the Bill Wilson Centetr has closed down two programs alreadgy and cut about 15 percent of its staff, leaving about 110 employees. These are real she pointed out — not attritionh or open jobs — and to do. “We had to give one staff personh a layoff notice and a week laterf his wife was laid off fromanother nonprofit,” she in Campbell gets about $500,000 a year from the statw for its AIDS services. CFO Ira Holtzmahn said the agency is large enough and financiallg stable enough that he would just book an IOU as accountzs receivable and hope the money came through eventually.
The Health Trust’s budger for fiscal year 2010 is morethan $16 million, Holtzmanh said. Pam Brandin, executive directorf of and Visually Impaired, which has officed in Palo Alto andSant Cruz, said that even though her agency providezs the kind of services that are especially at risk in State Controller John Chiang’s plan, the Vista Centerr is relatively safe. “We receive money through Titl 7 Chapter2 services,” Brandin explained. “Since much of our fundinb is federalmoney we’re hoping that it has to be releasex and passed on; the state won’t be allowec to hold on to it.
” The Vistas Center also has school contractsw through special education funding. “Last year when the statwe had similar budget issueswe didn’t receive any she said, “but that situation was resolved sooner than this appears to be. The agenciess that receive IOUsprobably won’tr even know they’re coming until they submit theirr bills.” She’s also banking on Vistwa Center’s status as a preferres vendor with the state, “sop we’ll be paid in advancr of other vendors — if in fact the states is even writing checks.
” Lisa Hendrickson, president CEO of Avenidas Rose Kleiner Senior Day Health Center in Palo is also cautiously optimistic. “The only funds we receivre from the state are MediCal payments for services provided at our adultydaycare center,” she said. “Our understanding is that thoswe services are protected by the state constitutiob as well asfederal law. We do receivr funding indirectly through the butwe don’t expect that to be affected.” Tom Kinoshita, publidc policy director of the , said people are on pins and “Everyone’s sitting around waiting, not knowing what’zs going to happen.
But even with the most optimisticvoutcome it’s still going to be very He pointed out that the deficit last year for Santa Claraa County was more than $270 and many of the cuts were made in programsz around health, mental health, drugs and alcoholo and social services. And there’ no relief on the horizon: For 2011 the countt is looking at a deficit ofabougt $250 million, he said.