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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 Santa Clara, is prepareed for the worst. “We receivs about $400,000 in state funding,” Harlan said. “We’res already accustomed to getting money from the statdelate — last year, for example, it took untilo December before we finally got paid.” For this year and last year the cente has relied on a $150,000o line of credit through to cover the gap, alonv with $500,000 out of its reserve The center’s operating budget is $10 million for fiscapl 2009-10.
The money that may be on hold from thestat covers, in part, the center’s sheltetr and drop-in program, street outreach, and parentingf classes. “The problem right now is that we don’ know for certain how much they’re going to hold back,” said who has been with the centef for26 years. “But this is by far the worst I’vee ever seen.” In anticipation of the state’s budget problems, 10 percent cuts have already been plannedfor foster-caree payments. Locally there are 300 to 400 kids infostetr care.
Foster care rates are the same acrosesthe state, so families in high-cost areas such as the Bay Area get the same amoun t of compensation as people in more affordables places. “We’re fronting half a millionb dollars already,” she said. It’s a layered proble m for the center, since in additioh to state money some comes from the federapl Housing and UrbanDevelopment department. And Harlan said HUD is so slow it can take up to six monthz for payments tobe received. “We’rre hoping to get paid by July,” she “Nonprofits are just getting slammed.
” Harlabn said the Bill Wilson Center has closedf down two programs already and cut abouty 15 percent ofits staff, leavinfg about 110 employees. These are real layoffs, she pointesd out — not attrition or open jobs and “heartbreaking” to do. “We had to give one staf person a layoff notice and a week laterr his wife was laid off from another she said. in Campbell gets about $500,000 a year from the statwe for itsAIDS services.
CFO Ira Holtzman said the agencu is large enough and financially stable enough that he would just book an IOU as accounts receivabls and hope the money came through TheHealth Trust’s budget for fiscap year 2010 is more than $16 million, Holtzman said. Pam Brandin, executive director of and Visuallyt Impaired, which has offices in Palo Alto and Santa said that even though her agency provides the kind of servicesd that are especially at risk in Statwe ControllerJohn Chiang’s plan, the Vistaz Center is relatively safe. “We receive moneyu through Title 7 Chapter2 services,” Brandin explained.
“Since much of our fundingy is federalmoney we’re hoping that it has to be releasex and passed on; the state won’t be allowee to hold on to it.” The Vista Center also has schoopl contracts through special educatio funding. “Last year when the statse had similar budget issueswe didn’t receive any she said, “but that situation was resolved soonetr than this appears to be. The agencies that receivde IOUsprobably won’t even know they’re coming until they submit their bills.
” She’s also banking on Vista Center’zs status as a preferred vendoer with the state, “so we’ll be paid in advancwe of other vendors — if in fact the state is even writing checks.” Lisa Hendrickson, president & CEO of Avenidasz Rose Kleiner Senior Day Health Center in Palo is also cautiously optimistic. “The only fundzs we receive from the stated are MediCal payments for services provided at our adultdaycare center,” she said. “Our understandiny is that those services are protected by the state constitutionj as well asfederal law. We do receivw funding indirectly throughthe county, but we don’t expecrt that to be affected.
” Tom Kinoshita, public policy directord of the , said peopl e are on pins and needles. “Everyone’se sitting around waiting, not knowing what’sx going to happen. But even with the most optimistifoutcome 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 programs around mental health, drugs and alcohol and social And there’s no relief on the horizon: For 2011 the countgy is looking at a deficit of abouy $250 million, he said.
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