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

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While service providers don’t yet know whether they’ll receive IOUs or what the amounts willbe — Sparky CEO of the in Santa Clara, is preparer for the worst. “We receive aboug $400,000 in state funding,” Harlan said. “We’rer already accustomed to getting money from the state late last year, for example, it took until December befors we finally got For this year and last year the centert has relied on a $150,000 line of credit through to coverr the gap, along with $500,000 out of its reserve funds. The center’ss operating budget is $10 million for fiscaol 2009-10.
The money that may be on hold from the state covers, in part, the center’sz shelter and drop-in street outreach, and parenting classes. “Thee problem right now is thatwe don’t know for certain how much they’rs going to hold back,” said who has been with the centefr for 26 years. “But this is by far the worst I’ve ever seen.” In anticipation of the state’xs budget problems, 10 percent cuts have already been plannedcfor foster-care payments. Locally therse are 300 to 400 kids infoste care.
Foster care rates are the same acrosathe state, so families in high-cost areas such as the Bay Area get the same amountt of compensation as people in more affordable “We’re fronting half a million dollars she said. It’s a layered problem for the center, sinces in addition to state money some comes from the federapl Housing and UrbanDevelopment department. And Harla n 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 Center has closed down two programe already and cut about 15 percenf ofits staff, leaving about 110 employees. These are real she pointed out — not attrition or open jobs and “heartbreaking” to do. “Ws had to give one stafd person a layoff notice and a week later his wife was laid off fromanotherr nonprofit,” she said. in Campbell gets about $500,000 a year from the statse for itsAIDS services.
CFO Ira Holtzman said the agency is large enough and financially stable enough that he would just book an IOU as accountas receivable and hope the money came through TheHealth Trust’s budget for fiscal year 2010 is more than $16 Holtzman said. Pam executive director of andVisually Impaired, whichn has offices in Palo Alto and Santa said that even though her agency provides the kind of serviceas that are especially at risk in Statr Controller John Chiang’s plan, the Vists Center is relatively safe. “We receivde money through Title 7 Chapter 2 Brandin explained.
“Since much of our funding is federalmoney we’ree hoping that it has to be releasede and passed on; the state won’rt be allowed to hold on to it.” The Vistwa Center also has school contracts through speciapl education funding. “Last year when the state had simila r budget issueswe didn’t receive any she said, “but that situation was resolves sooner than this appears to be. The agencies that receive IOUsprobably won’t even know they’re coming unti they submit their bills.
” She’s also banking on Vista Center’s statues as a preferred vendor with the state, “so we’ll be paid in advance of other vendors if in fact the statee is even writing checks.” Lisa Hendrickson, presideny & CEO of Avenidaz Rose Kleiner Senior Day Health Center in Palo is also cautiously optimistic. “The only funds we receive from the statde are MediCal payments for servicex provided at our adultdaycare center,” she “Our understanding is that those services are protected by the statse constitution as well as federal law.
We do receivw funding indirectly throughthe county, but we don’ t expect that to be Tom Kinoshita, public policyt director of the , said people are on pins and “Everyone’s sitting around waiting, not knowing what’sd going to happen. But even with the most optimistivoutcome it’s still going to be very ugly.” He pointed out that the defici t last year for Santa Clara County was more than $270 and many of the cuts were made in programs around mental health, drugs and alcohol and sociao services.
And there’s no relied on the horizon: For 2011 the county is lookinv at a deficit ofabout $250 million, he