The Social Development Commission, or SDC, met in person for the first time in months on Thursday, Oct. 30 in the U.S. Bank Center, 777 E. Wisconsin Ave.
Board members discussed potential funding pathways for SDC, its foreclosed properties and more during the meeting.
Also attending online or in person were representatives of the Wisconsin Department of Children and Families, SDC staff and several members of the public.
Here are some key takeaways.
Chair says moving funding to UMOS would be ‘serious mistake’
Jorge Franco, SDC’s interim CEO and board chair, said in public comment that he has heard “highly reliable” rumors that the Wisconsin Department of Children and Families plans to reallocate SDC’s remaining block grant funding to UMOS to provide anti-poverty services.
The department has been looking for an interim provider since it decided to de-designate SDC as a community action agency in May, although that decision is currently on hold and being reviewed by the federal government.
In August, a spokesperson for the Department of Children and Families said it was prepared to move forward with an interim provider but would not reveal the agency unless the federal government upholds its decision to de-designate SDC.
Franco questioned the ability of UMOS to serve the population and said choosing the agency would be “a serious mistake.”
“The lack of cultural competency in those pathways is unfortunate,” Franco said. “To expect that people from the north are going to be traveling down to the south for services is a travesty.”
UMOS acknowledged applying to assume funds that had been allocated to SDC.
“There have been conversations, but nothing has been confirmed at this point,” said José Martinez, UMOS president and CEO, on Oct. 31. “As always, UMOS would work in partnership and collaboration, as we serve all populations and cultures.”
Exploring credit facility, other financial pathways
Commissioner Peter Fetzer, a partner and business lawyer with Foley & Lardner LLP, presented on the letter of intent from Wings Credit Union to consider providing SDC with a credit facility.
The letter is non-binding, but the goal, according to Fetzer, is to reach an agreement where SDC would be able to use a revolving line of credit of up to $15 million to advance money toward government grant-funded programs.
“One of the problems in the past has been that you have to pay everything up front, you’re not going to get reimbursed until that cycle comes to an end,” Fetzer said. “It can be difficult to ensure that you actually have everything you need to run your operation.”
The board also discussed potential public-private funding avenues and reviewed financial analysis charts that explored how SDC could build funding over the next five years.
“There’s more work to be done there, and it must involve the appointing authorities, the governor, the mayor, and the county exec, because they’re major stakeholders in what’s going on,” Franco said.
A potential buyer for foreclosed property?
SDC’s main office at 1730 W. North Ave, owned by SD Properties Inc., entered into foreclosure following a judgement on Oct. 7 but is in a redemption period until early January.
Franco said that a housing nonprofit is currently interested in buying its main office.
“We’re going to help them get the financing together because it appears they need a little bit of assistance to structure a deal that works for everybody, but SDC will be able to remain in that building and welcome other nonprofits into the building as well,” Franco said.
Additional update
State again asks SDC to voluntarily de-designate
Gina Paige, communications director for the Wisconsin Department of Children and Families, said it issued another letter on Wednesday, Oct. 29, to remind SDC it could voluntarily de-designate.
She said community action agencies are particularly essential and needed as Wisconsin’s FoodShare program braces for the possibility of a pause in funding on Nov. 1, due to the federal government shutdown.
An estimated 233,407 individuals receive FoodShare benefits in Milwaukee, with over 40% being children, said Paige.
“Without an operational community action agency, these community members face an uphill battle in obtaining basic necessities,” Paige said.
What’s next
SDC’s next meeting is scheduled for Nov. 6, but may be postponed, Franco said.
Meredith Melland is the neighborhoods reporter for the Milwaukee Neighborhood News Service and a corps member of Report for America, a national service program that places journalists in local newsrooms to report on under-covered issues and communities. Report for America plays no role in editorial decisions in the NNS newsroom.
Jonathan Aguilar is a visual journalist at Milwaukee Neighborhood News Service who is supported through a partnership between CatchLight Local and Report for America.
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