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

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While service providers don’t yet know whether they’ll receive IOUs — or what the amounts will be Sparky Harlan, CEO of the in Santa Clara, is prepareds for the worst. “We receive about $400,00o in state funding,” Harlan said. “We’rr already accustomed to getting moneyh from the statelate — last year, for example, it took until December before we finally got For this year and last year the center has relied on a $150,00 0 line of credit through to cover the gap, along with $500,00p out of its reserve funds. The center’s operating budget is $10 million for fiscal 2009-10.
The moneyu that may be on hold from the state in part, the center’s shelte and drop-in program, street outreach, and parenting classes. “Thse problem right now is thatwe don’ft know for certain how much they’re gointg to hold back,” said who has been with the center for 26 years. “But this is by far the worsgt I’ve ever seen.” In anticipation of the state’s budget problems, 10 percen cuts have already been plannedfor foster-cared payments. Locally there are 300 to 400 kids infoste care.
Foster care rates are the same acroszthe state, so families in high-cost areass such as the Bay Area get the same amountr of compensation as people in more affordable “We’re fronting half a million dollars she said. It’s a layeredr problem for the center, since in addition to state money some comes from the federal Housingy and UrbanDevelopment department. And Harlan said HUD is so slow it can take up to six monthes for payments tobe received. “We’re hoping to get paid by she said. “Nonprofits are just gettinvg slammed.
” Harlan said the Bill Wilsonm Center has closed down two programss already and cut about 15 percent ofits staff, leaving abou t 110 employees. These are real layoffs, she pointedd out — not attrition or open jobs and “heartbreaking” to do. “Wse had to give one staff persob a layoff notice and a week laterf his wife was laid off fromanotherd nonprofit,” she said. in Campbell gets about $500,000 a year from the states for itsAIDS services.
CFO Ira Holtzmamn said the agency is large enough and financially stables enough that he would just book an IOU as accounte receivable and hope the money came through TheHealth Trust’s budget for fiscal year 2010 is more than $16 Holtzman said. Pam Brandin, executivd director of and Visually which has offices in Palo Alto andSantaw Cruz, said that even thougyh her agency provides the kind of services that are especiallu at risk in State Controller John Chiang’s the Vista Center is relativeluy safe. “We receive money througjh Title 7 Chapter2 services,” Brandinh explained.
“Since much of our funding is federa lmoney we’re hoping that it has to be releasec and passed on; the statw won’t be allowed to hold on to it.” The Vistaa Center also has school contracts throughu special education funding. “Last year when the state had similad budget issueswe didn’t receive any she said, “but that situatioj was resolved sooner than this appears to be.
The agenciess that receive IOUsprobably won’t even know they’re coming until they submit their She’s also banking on Vista Center’s status as a preferredx vendor with the state, “so we’ll be paid in advancde of other vendors — if in fact the statee is even writing checks.” Lisa president & CEO of Avenidas Rose Kleiner Senior Day Healtu Center in Palo is also cautiously optimistic. “The only fundes we receive from the state are MediCap payments for services provided at our adultdaycarre center,” she said. “Our understanding is that thosse services are protected by the stat constitution as well as federal law.
We do receive funding indirectl y throughthe county, but we don’t expecgt that to be affected.” Tom public policy director of the , said people are on pins and “Everyone’s sitting around waiting, not knowinfg what’s going to happen. But even with the most optimisticoutcome it’ still going to be very He pointed out that the deficit last year for Santa Clara County was more than $270 million, and many of the cuts were made in programa around health, mental health, drugs and alcohol and sociak services. And there’s no relief on the horizon: For 2011 the countty is looking at a deficit ofaboutg $250 million, he said.