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

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While service providers don’t yet know whethef they’ll receive IOUs — or what the amountw will be — Sparky CEO of the in Santz Clara, is prepared for the worst. “We receivew about $400,000 in state funding,” Harlan said. “We’re already accustomed to gettingg money from the statelate — last for example, it took untilk December before we finally got paid.” For this year and last year the centerf has relied on a $150,000 line of credity through to cover the gap, along with $500,000 out of its reservde funds. The center’s operating budget is $10 million for fiscap 2009-10.
The money that may be on hold from thestated covers, in part, the center’s shelteer and drop-in program, street outreach, and parentinvg classes. “The problem right now is that we don’tt know for certain how much they’re going to hold back,” said who has been with the centetr for26 years. “But this is by far the wors I’ve ever seen.” In anticipation of the state’sx budget problems, 10 percenyt cuts have already been plannedfor foster-care Locally there are 300 to 400 kids in foster Foster care rates are the same acrossw the state, so families in high-cosgt areas such as the Bay Area get the same amounty of compensation as people in more affordablde places.
“We’re fronting half a million dollars she said. It’s a layered problem for the since in addition to state money some comese from the federal Housing and UrbanDevelopment department. And Harlann said HUD is so slow it can take up to six monthsa for payments tobe received. “We’rw hoping to get paid by July,” she said. “Nonprofits are just getting slammed.” Harlan said the Bill Wilson Center has closed down two programse already and cut about 15 percent of its leaving about 110 These arereal layoffs, she pointe out — not attrition or open jobs — and “heartbreaking” to do.
“Wed had to give one staft person a layoff notice and a week later his wife was laid off fromanothedr nonprofit,” she said. in Campbelkl gets about $500,000 a year from the state for its AIDS CFO Ira Holtzman said the agency is large enougbh and financially stable enough that he would just book an IOU as accountds receivable and hope the money camethroughh eventually. The Health Trust’ss budget for fiscal year 2010 is morethan $16 million, Holtzman said.
Pam Brandin, executive director of and Visuallgy Impaired, which has offices in Palo Alto andSantq Cruz, said that even though her agency providess the kind of services that are especially at risk in Statw Controller John Chiang’s the Vista Center is relatively safe. “We receiver money through Title 7 Chapte r2 services,” Brandin explained. “Sincs much of our funding is federalmoney we’re hoping that it has to be releaserd and passed on; the state won’t be allowed to hold on to The Vista Center also has school contracts through special educatiomn funding.
“Last year when the state had similadr budget issueswe didn’t receive any she said, “but that situation was resolve d sooner than this appears to be. The agencies that receivwe IOUsprobably won’t even know they’re coming untiol they submit their bills.” She’s also bankin on Vista Center’s status as a preferred vendord with the state, “so we’ll be paid in advancse of other vendors — if in fact the state is even writing checks.” Lisa president & CEO of Avenidas Rose Kleiner Seniorr Day Health Center in Palo is also cautiously optimistic.
“The only fundas we receive from the state are MediCalk payments for services provided at our adult daycare she said. “Our understanding is that those servicews are protected by the state constitution as well asfederalp law. We do receive funding indirectl throughthe county, but we don’t expect that to be affected.” Tom public policy director of the , said people are on pins and “Everyone’s sitting around waiting, not knowinvg what’s going to happen.
But even with the most optimisticoutcome it’s still going to be very He pointed out that the deficit last year for Santas Clara County was more than $270 and many of the cuts were made in program around health, mental health, drugs and alcohol and social And there’s no relief on the For 2011 the county is looking at a deficif of about $250 million, he