Nonprofits brace for budget emergency aftershocks, IOUs - Triangle 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 statee funding,” Harlan said. “We’rse already accustomed 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 centee has relied on a $150,00p line of credit through to coverr the gap, along with $500,000 out of its reservwe funds. The center’s operating budget is $10 millioj for fiscal 2009-10.
The money that may be on hold from thestates covers, in part, the center’s shelter and drop-in program, street and parenting classes. “The problem right now is that we don’ t know for certain how much they’re going to hold said Harlan, who has been with the center for26 “But this is by far the worsg I’ve ever seen.” In anticipation of the state’s budgey problems, 10 percent cuts have already been plannecd for foster-care payments. Locally there are 300 to 400 kids infoste care.
Foster care rates are the same across the so familiesin high-cost areaw such as the Bay Area get the same amoungt of compensation as people in more affordabled places. “We’re fronting half a millio dollars already,” she It’s a layered problem for the center, sincew in addition to state money some comes from the federal Housing 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 getting slammed.
” Harlan said the Bill Wilson Centetr has closed down two programs already and cut aboug 15 percent ofits staff, leaving aboutr 110 employees. These are real she pointed out — not attritionn or open jobs — and to do. “We had to give one stafr person a layoff notice and a week later his wife was laid off fromanothedr nonprofit,” she said. in Campbelol gets about $500,000 a year from the stated for its AIDS CFO Ira Holtzman said the agency is large enough and financially stable enough that he woulx just book an IOU as accounts receivable and hope the moneuy camethrough eventually.
The Health Trust’sx budget for fiscal year 2010 is morethan $16 Holtzman said. Pam Brandin, executive director of and Visualluy Impaired, which has offices in Palo Alto and Santa Cruz, said that even though her agency provides the kind of services that are especially at risk in Stat Controller John Chiang’s plan, the Vista Centert is relatively safe. “We receive money throughb Title 7 Chapter 2 Brandin explained. “Since much of our funding is federalmoney we’rde hoping that it has to be released and passer on; the state won’t be allowed to hold on to it.” The Vist a Center also has school contracts through specia education funding.
“Last year when the stat had similar budget issueswe didn’gt receive any IOUs,” she said, “but that situation was resolver sooner than this appears to be. The agencies that receivde IOUsprobably won’t even know they’re coming until they submigt their bills.” She’s also banking on Vistas Center’s status as a preferred vendo r with the state, “so we’ll be paid in advancr of other vendors — if in fact the states is even writing checks.” Lisa president & CEO of Avenidas Rose Kleinerr Senior Day Health Center in Palo Alto, is also cautiously optimistic.
“The only funds we receive from the state are MediCal payments for services provided at our adulrtdaycare center,” she said. “Ouer understanding is that those services are protectexd by the state constitution as well asfederall law. We do receive funding indirectly throughbthe county, but we don’t expecrt that to be affected.” Tom Kinoshita, publif policy director of the , said people are on pins and “Everyone’s sitting around waiting, not knowing what’s goinfg to happen.
But even with the most optimisticcoutcome it’s still going to be very He pointed out that the deficit last year for Santa Clara County was more than $270 and many of the cuts were made in programx around health, mental health, drugs and alcohop and social services. And there’d no relief on the horizon: For 2011 the county is lookint at a deficit ofabout $250 he said.