The Social Development Commission has formally responded to a state lawsuit seeking back pay for former employees.
Its filing disputes the state’s claims about how much the agency owes.
The agency also raIses the long-standing question about what responsibility the city and county have in ensuring SDC remains equipped to serve Milwaukee’s most vulnerable residents.
How much money is owed?
William Sulton, SDC’s attorney, acknowledged to NNS that some employees remain unpaid for work they’ve done.
But he disputes the amount claimed in the lawsuit – nearly $360,000 in wages and benefits.
The state is seeking double that amount as penalty for what it describes as “willful” failure to pay.
SDC denies this allegation as well, arguing that the state is “well aware that SDC is unable to pay the sums alleged.”
The Department of Children and Families
The filing asks the court to dismiss the lawsuit, which would eliminate it as a means for SDC’s former employees to get paid.
However, Sulton said that if the state’s lawsuit proceeds, SDC plans to bring the Wisconsin Department of Children and Families into it.
According to Sulton, the department failed to reimburse SDC for services the agency provided through contracts with the state.
“Every time they put a hurdle in front of us, we jumped over it,” he said. “And DCF (Department of Children and Families) still told us it wasn’t good enough.”
Sulton said SDC would use this reimbursement to help pay former employees.
Gina Paige, communications director for the Department of Children and Families, said in an email that the department reimbursed the full amount of the agency’s 2024 contract.
SDC requested more than the contested amount, Paige said, but failed to show expenses were eligible for reimbursement. It also failed to meet state and federal audit requirements, she said.
As of June 9, the department had not received notice about the SDC’s complaint against it.
‘This is their agency’
The filing also reminds the court of SDC’s unique origin and status, stating three times that it is a “City and County intergovernmental agency.”
Sulton brings this up as part of his legal defense, as the process for suing a government agency often differs from suing a private nonprofit or business.
But Sulton also uses the idea – that SDC is a city- county agency – when discussing what he believes the city and county owe SDC.
“This is their agency,” he told NNS. “We had a private nonprofit step up and help, but the city and the county haven’t provided any money for over a year.”
“It’s strange.”
City and county officials acknowledge SDC’s origin and status but continue to maintain they are not responsible for its operations or financial stability.
“I do not know of any oversight authority the city has regarding SDC,” said Jeff Fleming, spokesperson for Milwaukee Mayor Cavalier Johnson.
The Milwaukee County Executive’s Office has said it is prepared to help identify an organization – or organizations – to take over the anti-poverty work previously carried out by SDC.
Meredith Melland contributed reporting for this story.
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