School supporters push for more cash from city
For the first time in more than two decades, a cash-strapped City Hall may give less to area non-profits which also are suffering from the weak economy.
Social service groups next year are expected to take a slight hit in funding and face even deeper reductions the following year because of the city’s $16 million budget deficit.
The City Council is scheduled tonight to approve a $353.7 budget that fills the deficit by cutting $7 million, raising $5 million in new revenues and saving an additional $2 million through various policy changes.
As a result of a 5 percent across the broad cut in City Hall departments, local groups that serve the homeless, children, seniors, the disabled and other members of the community may receive thousands less in city dollars.
A little over $6 million is proposed to be given to more than three dozen non-profit groups from the city’s general fund. Nearly $6.5 million went to them last year, according to city documents. Children and youth services will receive the most — $2.3 million and homeless services will get $2.1 million.
The organizations were first asked to propose any cost-savings they could enact on their own. Groups that regularly refund unused money at the end of the year were given less and city-funded grants also were reduced for groups that have clients outside of Santa Monica.
Though the cuts were difficult to make, most of the money was saved through routine belt-tightening, said Tracy Scruggs, a supervisor for the city’s community and cultural services department, which oversees the distribution of money to the organizations.
But most non-profit administrators feel fortunate to get any contribution from City Hall, even if it is less than previous years.
2D1,“They’re getting worse news from other funders,” Scruggs said. “So I think the general feeling is ‘Thank you.’”
“They’re getting worse news from other funders. So I think the general feeling is ‘Thank you.’” — — TRACY SCRUGGS Supervisor, community and cultural services
City officials determine how much an organization should get in contributions based on the number of people they serve and their track record of success, which is scrutinized through regular audits.
“(Schools) need an ongoing revenue source... and we don’t even have enough money to run the city.” — — MIKE DENNIS City Finance Director
Scruggs said the situation will get worse before it gets better. City Hall department managers are expected to trim another 5 percent from their budgets for 2004-2005 and defer raises to employees for another year.
In the meantime, school supporters are expected to turn out by the thousands tonight to participate in a “Rally for Education” one hour before the City Council meets to adopt next year’s budget.
Despite the city’s $16 million deficit, school supporters have asked the city to increase its annual $3 million contribution to help the school out of its own multi-million dollar deficit.
Though many council members have expressed the desire to help, they have also cautioned that it may not be realistic for the city to give more.
Last year the City Council found an additional $1.5 million in one-time funds to give the school district.
This year, the city has banked roughly $3.5 million in savings, said City Finance Director Mike Dennis. But $2.8 million has already been earmarked to offset revenue shortfalls due to the bad economy.
And more still may be needed.
Despite the lack of money, Dennis said the problem with giving money to the schools is it puts a temporary fix on a persistent problem.
“I realize it’s very difficult for the schools and I really empathize with them,” he said. “On the other hand, they need an ongoing revenue source... and we don’t even have enough money to run the city.”
Tracy Scruggs
Supervisor, community and cultural services
We would have liked more but it was within the range we expected.
Need to be a long-term solution.
Originally published in the Santa Monica Daily Press print edition on June 17, 2003. Read the original PDF.