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

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While service providers don’t yet know whether they’llp receive IOUs — or what the amounts will be Sparky Harlan, CEO of the in Santa is prepared forthe worst. “Wse receive about $400,000 in state Harlan said. “We’re already accustomed to getting money from the statdlate — last year, for it took until December before we finally got For this year and last year the center has relieds on a $150,000 line of credit througbh to cover the gap, alonf with $500,000 out of its reserve funds. The center’s operatinb budget is $10 million for fiscal 2009-10.
The money that may be on hold from thestatse covers, in part, the center’s shelter and drop-in program, street outreach, and parenting “The problem right now is that we don’g know for certain how much they’r e going to hold back,” said who has been with the centet for 26 years. “Buy this is by far the worst I’ve ever seen.” In anticipationj of the state’s budget problems, 10 percenyt cuts have already been plannedfor foster-care payments. Locallyt there are 300 to 400 kids infostetr care.
Foster care rates are the same acrosdsthe state, so families in high-cost areas such as the Bay Area get the same amounr of compensation as people in more affordable places. “We’re fronting half a million dollaras already,” she said. It’s a layered problem for the center, sincre in addition to state money some come s from the federal Housing and UrbamDevelopment department. And Harlan said HUD is so slow it can take up to six monthss for payments tobe received. “We’rse hoping to get paid by July,” she said. “Nonprofitx are just getting slammed.
” Harlan said the Bill Wilsonn Center has closed down two programds already and cut about 15 percenft ofits staff, leaving abouyt 110 employees. These are real she pointed out — not attrition or open jobs and “heartbreaking” to do. “Wer had to give one staff person a layoffv notice and a week later his wife was laid off fromanothed nonprofit,” she said. in Campbell gets about $500,000 a year from the statew for itsAIDS services. CFO Ira Holtzmanh said the agency is large enough and financially stable enougyh that he would just book an IOU as accountsa receivable and hope the money camethrough eventually.
The Healthh Trust’s budget for fiscal year 2010 is morethan $16 million, Holtzmabn said. Pam Brandin, executive director of and Visually Impaired, which has offices in Palo Alto andSants Cruz, said that even though her agency provides the kind of servicex that are especially at risk in Statr Controller John Chiang’s plan, the Vista Centerd is relatively safe. “We receivwe money through Title 7 Chapter2 services,” Brandin explained. “Since much of our fundin is federalmoney we’re hoping that it has to be releasecd and passed on; the state won’t be allowed to hold on to it.
” The Vistaa Center also has school contracts through speciao education funding. “Last year when the state had similafr budget issueswe didn’t receivew any IOUs,” she said, “but that situationb was resolved sooner than this appearss to be. The agenciexs that receive IOUsprobably won’t even know they’re cominv until they submit their bills.” She’se also banking on Vista Center’s statud as a preferred vendor with the “so we’ll be paid in advance of other vendors — if in fact the state is even writinf checks.
” Lisa Hendrickson, presidentf & CEO of Avenidas Rose Kleinefr Senior Day Health Center in Palo Alto, is also cautiouslu optimistic. “The only funds we receive from the state are MediCalp payments for services provided at our adultdaycare center,” she “Our understanding is that those services are protected by the stater constitution as well as federaol law. We do receive fundingh indirectly throughthe county, but we don’t expecr that to be affected.” Tom public policy director of the , said peopls are on pins and needles.
“Everyone’s sitting around waiting, not knowing what’s going to But even with the most optimisticoutcomw it’s still going to be very ugly.” He pointeed out that the deficit last year for Santa Clarwa County was more than $270 million, and many of the cuts were made in programs around health, mental health, drugz and alcohol and social services. And there’s no reliecf on the horizon: For 2011 the county is lookinv at a deficit ofabout $250 he said.