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Published: Mon, 6 Jul 2009
Description: Sparky Harlan, CEO of the Bill Wilson Center, on why not-for-profits are being overlooked in the I.O.U. process.
Automatically Generated Transcript (may not be 100% accurate)
" I mean could we be -- for the fall of paying all those thousands of Miley is being sent them out to California supposedly made good by October. But what of the state doesn't have the dough will Washington be called in for a bailout. And there's another question why -- California nonprofits even eligible for those lousy IOUs. Sparky Harlan wonders that too she -- security in California she says she needs the money now. Now it's market read over the weekend that nonprofits were supposed to be getting that's what's really going on there."
" Well they changed the rules for nonprofits. It used to be that we would have contracts for three years and we would be getting those I don't use. But a couple of years ago the state got smart and decided to give us annual contracts and they just won't negotiate. Until the budgets -- said they expect me to keep writing my runaway and homeless youth shelter we just hope and promise. After they pass the budget they actually will negotiate a contract. And last year when they did that with us it wasn't until late November -- December we saw any money for back to July. So we're hurting I would love to have and I have you with three point seven by contrast. But I get none of that for my services."
" And what exactly are officials telling you -- what -- when when you when you respond to this what do they tell you."
" They say sorry you're just gonna have to sit and wait and will get back to you when we pass a budget. Now the other thing that's happening is some of those programs may be cut. So I'm sitting here running my program hoping they're going to continue it and they could come back to me and three month saying sorry we decided to cut it 25%. And now I gotta cut back even more. So it really puts us in a horrible situation. And I can't turn to my kids coming MI homeless youth shelter and say sorry don't come in for three months until I get a budget. I gotta keep serving them."
" I have you have to make needed changes so far would your staff have you have to do anything drastic yet."
" Well yes we have we've already made over a million dollars in cuts we have eleven million dollar budget and we run a lean mean machine I've been doing this for 26 years. So I anticipated some of these cuts. But we're getting hit from all sides that county has decided to pull back here. And whether they do they cut nonprofits to keep the money for themselves even though we can do that. Much cheaper than accounting camp for many of these services. But in our local area and Silicon Valley. Two other runaway homeless she felt -- shut down in the last few years so we're at where the only shelter left in this area of almost two million. And we're just flooded with kids and really having a difficult time trying to juggle all these balls."
" Smart you want to thing's going to happen you've got a lot of things after July 10 the big banks have said they're going to stop taking these IOUs. All of the stuff is redeemed in October along with 28 billion dollars in bonds. Is it inevitable that California had to go to the federal government for bailout."
" I hope not I mean you know we have on governor right now who's kind of sitting there pouting because Keating gave his propositions passed then he's basically saying he's going to close all the parks and and all of welfare. Well we know that camped down on people don't want their parts to close so sooner or later he's going to have to sit down. With the assembly and the -- net income to some kind of compromise. I know this will happen it just gets tiring year half the year to be sitting here waiting for them to come to some kind of agreement we've gotta compromise. Or we gonna be stuck paying more and more money out. With interest payments and bonds I'm sitting here waiting right now. I have three million dollars on trying to get for my homeless shelter that I'm eligible for bond money. California hasn't issued these bonds for two years they're behind. So what's happening to me I have -- 28 unit apartment building that's sitting there empty because I'm waiting for the California issued these bonds they've got to do something."
" Well sparky I really hope they do something particularly for causes like yours really appreciate your time."
" I thank you very much all right."
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