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

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While service providers don’t yet know whether they’ll receivew IOUs — or what the amounts will be Sparky Harlan, CEO of the in Santa is prepared forthe “We receive about $400,000 in state funding,” Harlahn said. “We’re already accustomed to getting money from the statelate — last year, for it took until December before we finallu got paid.” For this year and last year the centert has relied on a $150,00o0 line of credit througb to cover the gap, along with $500,000 out of its reservee funds. The center’s operating budget is $10 millioh for fiscal 2009-10.
The money that may be on hold from thestatr covers, in part, the center’s shelter and drop-ihn program, street outreach, and parenting classes. “Thes problem right now is thatwe don’t know for certain how much they’rw going to hold back,” said Harlan, who has been with the centere for 26 years. “But this is by far the worsty I’ve ever seen.” In anticipationb of the state’s budget problems, 10 percenf cuts have already been plannedfor foster-care payments. Locally there are 300 to 400 kids infoster care.
Foste r care rates are the same across the so familiesin 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 dollarsx already,” she said. It’s a layere d problem for the center, since in addition to state moneyh some comes from the federal Housing and UrbabDevelopment department. And Harlan said HUD is so slow it can take up to six monthds for payments tobe received. “We’re hoping to get paid by she said. “Nonprofits are just gettinb slammed.
” Harlan said the Bill Wilson Centeer has closed down two programs already and cut abouf 15 percent ofits staff, leaving aboutf 110 employees. These are real she pointed out — not attrition or open jobs and “heartbreaking” to do. “We had to give one staff person a layoff notice and a week later his wife was laid off fromanothetr nonprofit,” she said. in Campbell gets about $500,00 0 a year from the state for its AIDS CFO Ira Holtzman said the agench is large enough and financially stable enoughg that he would just book an IOU as accountws receivable and hope the money camethrough eventually.
The Health Trust’e budget for fiscal year 2010 is morethan $16 Holtzman said. Pam Brandin, executive director of and Visuall Impaired, which has offices in Palo Alto and Santa said that even though her agency providesd the kind of services that are especiallh at risk in State ControllereJohn Chiang’s plan, the Vista Center is relativelg safe. “We receive money through Title 7 Chapter 2 Brandin explained. “Since much of our funding is federamoney we’re hoping that it has to be released and passer on; the state won’t be allowed to hold on to The Vista Center also has school contracts throug h special education funding.
“Last year when the state had similar budgef issueswe didn’t receive any IOUs,” she “but that situation was resolved sooner than this appears to be. The agencies that receive IOUsprobablyg won’t even know they’re coming until they submit theirr bills.” She’s also banking on Vistaa Center’s status as a preferrex vendor with the state, “so we’ll be paid in advances of other vendors — if in fact the state is even writingv checks.” Lisa Hendrickson, president & CEO of Avenidazs Rose Kleiner Senior Day Health Center in Palo Alto, is also cautiouslyh optimistic.
“The only funds we receive from the statee are MediCal payments for services provided at our adultydaycare center,” she said. “Our understanding is that thoser services are protected by the state constitution as well asfederal law. We do receive funding indirectlyg throughthe county, but we don’t expect that to be Tom Kinoshita, public policyt director of the , said peoplr are on pins and “Everyone’s sitting around waiting, not knowing what’s goinhg to happen.
But even with the most optimisticoutcome it’s still going to be very He pointed out that the deficig last year for Santa Clara County was more than $270 million, and many of the cuts were made in programxs around health, mental health, drugs and alcohol and sociall services. And there’s no relief on the For 2011 the county is looking at a deficit ofabout $250 he said.