Social Agencies May Suffer as Federal Funds Shrink

By CARMEN VALENCIA

Dec. 7, 1986 12 AM PT

Times Staff Writer

NORWALK — Squeezed by reduced federal funds, the City Council is considering apportioning the loss among social service agencies that serve more than 3,000 Norwalk residents.

The council will consider Monday various budget-cutting options for the organizations, which provide services ranging from child care to drug abuse counseling. In some cases, the cuts could force the agencies to close or end services in Norwalk.

The city received word in October that its share of federal revenue-sharing money would be $32,000 less than anticipated. In turn, the city notified the organizations that the shortage could lead to a cutoff of funds as early as the end of December.

Accounts Shrink

The city--which received $295,000 in federal revenue sharing for the year--promised $77,286 of it to the social service agencies during budget sessions earlier this year as long as federal dollars reached anticipated levels. Now that the city has found that its share has shrunk by $32,000, officials said, the city must take another look at social service budgets.

But Councilwoman Grace Napolitano said the city should cut expenses elsewhere.

“If we can subsidize contractors to build stuff, the Chamber of Commerce and the All-City Band, why can’t we subsidize programs that help the needy and poor?” she said. “We should be able to give a helping hand when one is needed.”

Napolitano said she did not object when the agencies were advised in May that their contributions were dependent on the amount of federal money the city received. But she said she sees a need in the community that is filled by these agencies and would like to see them financed through the end of June.

“We can’t just say, ‘Sorry guys, bye.’ Priorities have to be set,” Napolitano said.

Some representatives from the organizations serving Norwalk said they will appear before the council Monday to ask them to continue funds for their programs, even though the city told them money could be cut if federal funds dwindle.

‘Disastrous Time for Us’

“The loss of money comes at a disastrous time for us. We absolutely cannot continue to do without funds,” said Lynne Appel, executive director of the Downey-based Southeast Council on Alcoholism and Drug Problems, which was allocated $7,000 for the year from federal funds. In addition to mental health and substance abuse treatment programs, the anti-drug and alcohol abuse agency runs a youth counseling program out of Norwalk’s social services center that is run entirely with the $7,000 contributed by Norwalk. The agency has a $2-million budget.

Jesse Luera, the city’s social services director, said he is looking at alternative means of financing the agencies.

“Maybe we can work something out” to continue financing, even at reduced levels, he said. “These agencies really depend on cities to survive.”

The total budgeted for the 16 agencies from July 1, 1986, through June 30, 1987, was $77,286, to be paid in quarterly installments. The first payment--$18,721, covering July through September--has gone to the agencies, City Administrator Richard Streng said. In addition to financing social services, the city uses its revenue sharing to help pay for a $4.7-million contract with the Norwalk sheriff’s station.

Payment Held Back

The second payment, covering October to December, was held back while the city waited to hear about its share of federal funds, city officials said.

Streng said it is up to the council to decide whether to discontinue payments altogether, finance the second quarter only or go ahead and finance the entire fiscal year for these agencies.

The city’s social services commission has recommended paying the agencies through the end of June, Commissioner Lillian Sierra said.

“These are all vital organizations we need in this area,” said Sierra, who noted that the cutoff of funds on short notice could cause some organizations difficulty. “It doesn’t give them enough time to find other means of funding.”

Other organizations that receive city funds and may be affected are Su Casa, Helpline Youth Counseling, The Children’s Clinic, We TIP, Community Family Guidance, Disabilities Unlimited, Friends of the Library, Women’s and Children’s Crisis Center, Intercommunity Blind Center, Alondra Library, Lunch with a Friend, Retired Senior Volunteer Program, Rio Hondo Community Action Network, YMCA and Consolidated Youth Services Network.

Because some programs are directed at Norwalk residents and financed solely by money from Norwalk, the loss of money could cause many of the agencies to cut back on these services, representatives said.

Seeking Other Sources

However, the organizations--which have heard indications of similar actions in other Southeast-area cities--will also try to find other sources of money to make up for the shortfall.

“It’s not realistic to say, if we don’t get the money, we’ll shut our doors. We will find some way of continuing our work. It just makes it a little harder,” said John Brown, executive director of Rio Hondo Community Action Network, which was slated to receive $3,000 for the year.

He said he is optimistic that the city will try to seek other alternatives and continue payments to his agency.

“The social service dollar is by far the most cost-effective dollar the city spends,” Brown said.