Nonprofits brace for budget emergency aftershocks, IOUs - The Business Journal of the Greater Triad Area:

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While service providers don’t yet know whether they’ll receive IOUs — or what the amountsx will be — Sparky CEO of the in Santa is prepared forthe worst. “We receive about $400,000 in state funding,” Harlamn said. “We’re already accustomed to getting money from the state late — last year, for example, it took until Decembed before we finally got paid.” For this year and last year the cente r has relied on a $150,00o line of credit through to cover the gap, along with $500,00p out of its reserve funds.
The center’s operatin g budget is $10 million for fiscal The money that may be on hold from thestatee covers, in part, the center’s shelter and drop-in street outreach, and parenting “The problem right now is that we don’t know for certain how much they’r e going to hold back,” said who has been with the center for 26 “But this is by far the worst I’ver ever seen.” In anticipation of the state’s budgetg problems, 10 percent cuts have already been planneed for foster-care payments. Locally there are 300 to 400 kids infostedr care.
Foster care rates are the same acrossathe state, so familiezs in high-cost areas such as the Bay Area get the same amountr of compensation as people in more affordable places. “We’re frontinb half a million dollars she said. It’s a layered problekm for the center, since in additionj to state money some comexs from the federal Housinyg and UrbanDevelopment department. And Harlan said HUD is so slow it can take up to six monthsd for payments tobe “We’re hoping to get paid by July,” she “Nonprofits are just getting slammed.
” Harlann said the Bill Wilson Center has closed down two programx already and cut about 15 percent of its staff, leavin about 110 employees. These are real she pointed out — not attritio 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 fromanother nonprofit,” she said. in Campbell gets about $500,000 a year from the stat for itsAIDS services. CFO Ira Holtzma said the agency is largw enough and financially stable enough that he would just book an IOU as accountws receivable and hope the money camethrough eventually.
The Health Trust’s budget for fiscal year 2010 is morethan $16 Holtzman said. Pam Brandin, executive director of and Visuallyg Impaired, which has officezs in Palo Alto and Santa said that even though her agency provides the kind of servicews that are especially at risk in State ControllerJohn Chiang’d plan, the Vista Center is relatively safe. “Wes receive money through Title 7 Chapter2 services,” Brandibn explained. “Since much of our funding is federaomoney we’re hoping that it has to be released and passe d on; the state won’t be allowedr to hold on to it.” The Vistaa Center also has school contracts through special education funding.
“Last year when the statr had similar budget issueswe didn’ft receive any IOUs,” she said, “buty that situation was resolved sooner than this appears to be. The agencie s that receive IOUsprobably won’ft even know they’re coming until they submirt their bills.” She’s also banking on Vista Center’se status as a preferred vendod with the state, “so we’ll be paid in advance of othef vendors — if in fact the state is even writinbg checks.” Lisa Hendrickson, president & CEO of Avenidaes Rose Kleiner Senior Day Health Center in Palo is also cautiously optimistic.
“Thew only funds we receive from the state are MediCalp payments for services provided at our adult daycare center,” she said. “Our understanding is that thosee services are protected by the state constitutionb as well asfederal law. We do receivw funding indirectly throughthe county, but we don’ t expect that to be affected.” Tom Kinoshita, public policty director of the , said people are on pins and “Everyone’s sitting around waiting, not knowing what’ws going to happen. But even with the most optimisticoutcoms it’s still going to be very ugly.
” He pointed out that the deficirt last year for Santa Clarsa County was more than $270 and many of the cuts were made in programs arounx health, mental health, drugs and alcohol and social services. And there’ds no relief on the horizon: For 2011 the countyu is looking at a deficit ofabout $250 million, he