HomeMy WebLinkAboutIR 7305 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7305
July 19 , 1988
To the Mayor and Members of the City Council
Subject: COMMUNITY SERVICES BLOCK GRANT (CSBG) LAYOFF
The Community Services Block Grant (CSBG) is the outgrowth of the
former Office of Economic Opportunity , Community Action Agency
(CAP) . The City assumed control over the operation of the CAP
( renamed the Neighborhood Resources Development Program) in the
early 1980 ' s . The program primarily provides information and
referral services . However, limited direct services are furnished
in the form of bus tokens , short-term day care , and assistance with
utility bills . Service is delivered through nine offices , seven
located in our multi -purpose centers and two outside of the city
limits, (these are primarily for Tarrant County residents) . A total
of 23.25 annualized positions ( 4 .75 administrative and 18.5
programmatic) are currently funded by CSBG.
A number of factors have contributed to the current fiscal crises :
( 1 ) a 7% midyear reduction in the CSBG grant was ordered by the
grantor agency , the Texas Department of Community Affairs , in
March , 1988. This decrease was unexpected , as a contract was in
force since October , 1987 for the full amount of funding. However ,
when Congress finally passed the FY ' 88 budget in February , 1988
the CSBG allocation was reduced retroactive to October 1 , 1987 ; ( 2)
the budget contained several positions that were being funded with
previous years' savings . While it was expected that eventually the
savings would be depleted , the 7% midyear reduction accelerated the
expenditure of the reserves ; ( 3) the Department' s indirect cost
rate increased from 17 . 13% to 23.84% which diverted additional
funds away from direct services .
The net impact of the above is the reduction of the total funding
available for the Neighborhood Resources Development Program from
$812 ,313 to $683,433 proposed for Fiscal Year ' 89 beginning October
1 , 1988. There are no longer any previous years' savings to
insulate the Program from the full impact of the reduction .
Therefore, the decrease in funding translates into the loss of
seven currently budgeted fulltime positions , 2 administrative and 5
programmati c. The remaining 16 .25 employees will be able to
continue to cover the nine service centers , though providing
services at a significantly reduced level .
Mr. Harry Purser , NRDP Chairperson , has requested consideration of
reduci ng the i ndi rect cost by $70,000. Thi s reducti on i n i ndi rest
cost would allow the program to keep two of the five positions
proposed to be eliminated . Mr . Purser has been informed that this
request will be drawn up as a decision package for the 1988-89
general fund budget .
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7305
0 To the Mayor and Members of the City Council July 19 , 1988
200
Subject: CITY SERVICES BLOCK GRANT (CSBG) LAYOFF
14 i9
Should the City Council desire additional information , it will be
provided upon request .
4C"�Dougl as Harman
City Manager
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS