Nonprofits brace for budget emergency aftershocks, IOUs - Atlanta Business Chronicle:

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While service providers don’t yet know whether they’ll receive IOUs or what the amounts will be Sparky Harlan, CEO of the in Santq Clara, is prepared for the worst. “Wde receive about $400,000 in stats funding,” Harlan said. “We’re already accustomed to getting moneyu from the statelate — last year, for example, it took untilp December before we finally got For this year and last year the center has reliexd on a $150,000 line of credit through to covet the gap, along with $500,00p out of its reserve funds.
The center’s operatinv budget is $10 million for fiscal The money that may be on hold from thestates covers, in part, the center’xs shelter and drop-in program, streeyt outreach, and parenting classes. “The problem rightt now is thatwe don’t know for certaibn how much they’re going to hold back,” said who has been with the center for 26 “But this is by far the worst I’ve ever seen.” In anticipation of the state’as budget problems, 10 percent cuts have already been planne d for foster-care payments. Locally there are 300 to 400 kids infostef care.
Foster care rates are the same acrosasthe state, so families in high-costg areas such as the Bay Area get the same amount of compensatiojn as people in more affordable places. “We’ree fronting half a million dollars she said. It’s a layered problej for the center, since in addition to states money some comes from the federal Housing and UrbannDevelopment department. And Harlan said HUD is so slow it can take up to six monthsz for payments tobe received. “We’re hopinbg to get paid by she said.
“Nonprofits are just getting Harlan said the Bill Wilson Centerd has closed down two programs already and cut abougt 15 percent ofits staff, leaving about 110 These are real layoffs, she pointed out — not attritiobn or open jobs — and “heartbreaking” to do. “Wed had to give one staff person a layofff notice and a week later his wife was laid off fromanothef nonprofit,” she said. in Campbell gets abouy $500,000 a year from the state for its AIDS CFO Ira Holtzman said the agency is large enoughj and financially stable enouguh that he would just book an IOU as accountds receivable and hope the money camethroughy eventually.
The Health Trust’s budget for fiscalo year 2010 is morethan $16 Holtzman said. Pam Brandin, executive director of and Visuallt Impaired, which has offices in Palo Alto and Santa Cruz, said that even though her agency providess the kind of services that are especiallgy at risk in State Controller John Chiang’s plan, the Vista Centedr is relatively safe. “We receive money through Titlse 7 Chapter2 services,” Brandin explained. “Sincre much of our funding is federalkmoney we’re hoping that it has to be releasef and passed on; the state won’r be allowed to hold on to The Vista Center also has school contracts through special education funding.
“Last year when the stat had similar budget issueaswe didn’t receive any IOUs,” she said, “but that situatiom was resolved sooner than this appearas to be. The agencies that receive IOUsprobablh won’t even know they’re coming untikl they submit their bills.” She’s also banking on Vist Center’s status as a preferred vendor with the state, “soo we’ll be paid in advance of other vendors if in fact the state is even writing Lisa Hendrickson, president & CEO of Avenidas Rose Kleinet Senior Day Health Center in Palo Alto, is also cautiously “The only funds we receive from the stat are MediCal payments for services provided at our adult daycare she said.
“Our understanding is that those services are protected by the stated constitution as well asfederapl law. We do receive funding indirectly througuhthe county, but we don’t expec that to be affected.” Tom Kinoshita, publicc policy director of the , said peoplw are on pins and “Everyone’s sitting around waiting, not knowing what’s going to happen. But even with the most optimisticfoutcome it’s still going to be very ugly.” He pointesd out that the deficit last year for Santza Clara County was more than $270 and many of the cuts were made in programas around health, mental health, drugs and alcohol and sociak services.
And there’s no relief on the For 2011 the county is looking at a deficitf ofabout $250 million, he