While Sorting Out State Budget Issues, Minnesota Halts Grants to Not-for-Profits
Faced with a "serious" economic situation because of declining tax revenues, Minnesota Finance Commissioner Pam Wheelock has "halted indefinitely" about $200 million in state grants to not-for-profits and nongovernmental organizations, including groups that provide health care services, the Minneapolis Star-Tribune reports. In a recent memo, Wheelock announced any grant proposal not completed by Nov. 20 "is now on hold" (Lopez/Hopfensperger, Minneapolis Star-Tribune, 11/28). The grants only may be delayed "a month or two" until it is determined how to balance the state budget. Also, the cuts will not impact state aid to cities and counties (Salisbury, St. Paul Pioneer Press, 11/28). However, state agencies that contract with the organizations are "uncertain" how the funding "freeze" will impact them. At the Department of Human Services, for example, about 80% of its contracts are for programs mandated by the federal government that cannot be halted. However, money for other initiatives, such as substance abuse programs could be withheld, according to Michael O'Keefe, commissioner of the Human Services department. "We're looking at which grants we have statutory discretion to delay. For example, the planning grants to counties to plan for nursing homes could be held up for now," he said. Funding "uncertainties" exist at the following organizations and agencies in the state:
- Health Department: $7 million to "bridge health disparities" between minorities and whites, $9 million for local health programs and $8 million for youth tobacco prevention programs.
- Children's Hospitals and Clinics: A $126,800 contract for a teen reproductive health program and a $50,000 grant for a youth tobacco prevention effort.
- Annex Teen Clinic: A $135,000 grant for low-cost family planning services.
- Minnesota Board on Aging: The board was scheduled on Dec. 15 to announce $4 million in grants for community services for the elderly, such as assisted living and nursing care (Minneapolis Star-Tribune, 11/28).
Provider Reaction, New Budget Plans
While the not-for-profit agencies "understand" the budget shortfall will require cuts, Marcia Avner, public policy director of the Minnesota Council of Nonprofits, said the "across-the-board-freeze" does not take into account the difference between "critical and nonessential services." The grants impact "quality of life," especially for "vulnerable populations," she said, adding that funding priorities must be set "carefully" (St. Paul Pioneer Press, 11/28). "We're outraged that this is being done with no consulting of service providers," she added. State Budget Director Peggy Ingison said some grant proposals will be handled on a "case-by-case basis." The Star-Tribune reports Wheelock will be working to develop budget recommendations after the state budget forecast is released Dec. 4 (Minneapolis Star-Tribune, 11/28).
