City of Lawrence

City Manager’s Office

 

MEMORANDUM

 

DATE:

7/7/2006

TO:

David Corliss, Interim City Manager

FROM:

Casey Liebst, Budget Manager

CC:

Debbie Van Saun, Assistant City Manager

Ed Mullins, Finance Director

RE:

Social Service Spending

 

Attached is a table showing social services agencies that receive financial support from the City.  The table shows the actual amount of funding received as well as the source for 2005, the amount budgeted for 2006, and the proposed amount budgeted for 2007.

 

How to define social services

One challenge when attempting to provide an accounting of social service spending is how to define “social service”. The dictionary defines it as, “an activity designed to promote social well-being; specifically: organized philanthropic assistance of the sick, destitute, or unfortunate.”  It seems obvious that The Shelter, Inc., Warm Hearts, Douglas County CASA, and similar agencies are social service agencies.  It is agencies like the Lawrence Arts Center and the Health Department that are not as clearly defined. 

 

Staff has provided information on a number of agencies and seeks Commission direction as to the appropriateness of their inclusion.

 

 

Multiple Sources of Funding and Support

There are a number of sources of City funding for social services agencies.  Many receive a direct allocation from the City’s General Operating Fund.    In addition, a number of these agencies are housed in facilities, such as the Community Health building, the use of the City owned building at Fire Station No. 1 by the Douglas County Senior Services,  or the Health Care Access facility on Moodie Road, that are  maintained by City employees with funding from the Building Maintenance division of Public Works.

 

Some social service agencies receive monetary support from the City’ Special Alcohol Fund, made up of the liquor tax received by the City.   These funds are allocated by the City Commission with recommendations from the Alcohol Advisory Board.  In many instances, these agencies receive both general fund and special alcohol fund support. 

 

Another source of city funding for social service agencies is the Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) program.  These funds are not budgeted funds but are administered by the Community Development Division of the Neighborhood Resources Department.  The attached report details the levels of funding provided to social service agencies in Federal Fiscal Year 2005.

 

Some social service agencies receive monetary support from other City sources.  For instance, those agencies housed in facilities owned in whole or in part by the City, such as the Health Department or Lawrence Arts Center, receive monetary support in the form of debt service payments for their facilities.  The Lawrence Arts Center receives liquor tax revenue from the City’s Special Recreation Fund.  Finally, some agencies receive state grant money from the City.

 

Again it should be noted that many social service agencies receive monetary support from more than one City funding source.    

 

Appropriate Level of Funding

Each year during the development of the budget, there is discussion regarding the appropriate level of funding for these social service agencies. 

 

The attached table shows the social services agencies that receive financial support from the City.  The table shows the actual amount of funding they received as well as the source for 2005, the amount budgeted for 2006, and the proposed amount budgeted for 2007.

 

The grand total from all budgeted funds budgeted for 2007 totals $2,855,909.  The Health Department represents thirty-six percent (36%) of expenditures while the Arts Center represents eighteen percent (18%). 

 

The General Fund is the largest source of funding for social service agencies with almost two million dollars budgeted in 2007.  The Health Department represents more than half of those expenditures ($1,034,075); the Arts Center represents twelve percent (12%). 

 

One suggestion has been to budget the liquor tax revenues in the general fund for social service agencies.  In 2007, liquor tax revenues are estimated to be $550,000.

 

Another suggestion has been to dedicate one mill of property tax to fund social services.  In 2007, one mill is estimated to generate $824,213 of revenue.   

 

 

Conclusion

As federal and state resources are becoming limited, it is likely that social service agencies will look to the City for monetary assistance in order to continue meeting the needs of the community.  There are definitional issues for the label “social services.”  There are also important policy issues.  Staff is recommending a needs assessment for social services to ascertain the needs in the community and seek opportunities for cooperation and consolidation.  Funding based on needs and outcomes is more desirable than responding to agency requests without clear program or policy goals. The 2007 recommended budget includes $1,946,174 of expenditures on social services – broadly defined - from the General Fund.  This is the equivalent of 2.36 mills.  It may be necessary to develop a policy, using one of the options mentioned above in order to continue to meet these important community needs.