Publication Date: Friday, December 19, 2003
The trickle-down effect
The trickle-down effect
(December 19, 2003) State's budget crisis could have big impact on local nonprofits
by Bill D'Agostino
If you want to see how the state's massive budget crises may unfold locally, look no further than one resident's healthy triplets.
Three years ago, Patti (not her real name), a Palo Alto mother of 6-year-old triplets, lost her job and health insurance. She eventually found her way to MayView Community Health Center, where the family received care they couldn't otherwise afford.
"It was a lifesaver for me because I had no other options," Patti said.
But California's and Santa Clara county's budget crises threaten the ability of MayView to provide services to all of its uninsured patients. The clinic receives one-third of its funding from Santa Clara County and in February the county will be forced to cut at least $90 million from its budget. But that already-dismal figure could nearly double, if the state does not give the county its share of the car tax.
In his first act as governor, Arnold Schwarzenegger repealed a tripling of the state's car tax, cutting off a crucial local government funding source. On Thursday, the governor was expected to announce a "fiscal emergency" to return a very small portion of the funds already lost, but county officials weren't totally heartened.
"We're counting on absolutely nothing because we don't see that the current administration looks on cities and counties fondly," said County Supervisor Liz Kniss, a former Palo Alto mayor. On Wednesday, the county announced it was suing the state to try to force it to "backfill" the city's portion of the car tax.
Even in the best case scenario, the county will cut legally mandated programs next year. Discretionary programs -- like the social services many Palo Alto nonprofits provide -- could be slashed dramatically.
During the last three years, Santa Clara County has already cut approximately $280 million. So far, funding for the MayView clinic has been left alone.
"This next round of cuts we will be affected," said Executive Director JoAnn Cabrera. "What we don't know is how."
MayView's total budget is approximately $2 million, paying for the 30 doctors who provide services, ranging from basic check-ups to prenatal care.
At worst, the clinic could lose 10 to 15 percent of its entire budget -- a grim prospect that could force layoffs, and dramatically reduce the number of patients the clinic could help on a regular basis.
That would "have a major impact on patient care," Cabrera said. "There's nothing that is luxury. There are very basic services."
Meanwhile, Avenidas Senior Center is expecting to lose $50,000 in county funding that helps low-income elders afford hot lunches it provides in Palo Alto daily.
"I know that we are at the bottom of the list," said president and CEO Lisa Hendrickson. "I hope I am proven wrong."
Avenidas recently began its holiday fund-raising drive. Despite a general upswing in the U.S. economy, Avenidas' donations are only on par to last year's poor showing. Perhaps "this region is still not feeling like it's turning around," Hendrickson said.
"We're looking for new revenue sources," Hendrickson added, noting that the center recently opened a craft shop selling everything from hand-made baby booties to jewelry.
"While we are pleased to be showcasing the work of seniors," she said, "we are also hoping, frankly, to make money."
Bill D'Agostino can be e-mailed at bdagostino@paweekly.com
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