The nonprofit Center for Self-Sufficiency closed in September as federal investigators audited its use of $750,000 in government funding. 

The organization focused on supporting residents reentering society from the criminal justice system and strengthening families. Services included financial and employment coaching, parenting support and restorative justice. 

The center was based for years out of the Community Advocates headquarters at 728 N. James Lovell St. before moving to the YWCA building on King Drive in May. 

The government audit found that the use of $749,000 of the federal funds was unsupported by documentation.

“It’s kind of shocking because it’s portrayed as if there was no information that backed up spending, and that definitely wasn’t the case,” said Maudwella Kirkendoll, chief operating officer of Community Advocates and former vice president of the Center for Self-Sufficiency’s board of directors. 

Despite the audit, two former employees who were working at the center when it closed said the main reason the organization dissolved was a gradual dwindling of funding opportunities. 

Kirkendoll agreed. 

“The funding,” Kirkendoll said, “was just drying up.”

The employees asked to remain anonymous to avoid any negative impacts to future work opportunities.

The federal audit

The U.S. Department of Justice’s Office of Justice Programs oversees Second Chance Act grants, which are generally meant to support people as they reintegrate after incarceration and help reduce recidivism. 

The Center for Self-Sufficiency was awarded nearly $750,000 to provide case management and employment services to men returning to Milwaukee after incarceration from 2021 to 2024, its third time receiving the grant. 

The office approved an extension to continue the grant with no additional funding until September. 

The Department of Justice Office of the Inspector General launched an audit in May into the center’s program. The office conducted a site visit, interviewed staff, reviewed policy and procedures and requested accounting and financial records.

The audit, which was released in September, indicated the Center for Self-Sufficiency could not demonstrate compliance with certain grant requirements because it did not provide the accounting documentation needed to show how funds were spent to support its program performance. 

“While we determined that a majority of (Center for Self-Sufficiency’s) policies aligned with important conditions of the laws, regulations, guidelines, and terms and conditions applicable to the award, we found critical issues with (Center for Self-Sufficiency’s) grant financial management,” the report reads. 

The audit also found the grant’s financial activity was mixed together with activity from other sources in the organization’s accounting records for most of the time frame that was examined. 

The report recommended that the Office of Justice Programs review and “remedy” the spending, find a better use for the remaining $1,000 that was not used and make sure the Center for Self-Sufficiency has proper systems in place to track how it spends grant money before receiving any future funding. 

According to the report, the center notified the office that it was considering dissolving in July and that its board ultimately voted to close the organization by Sept. 30, 2025.

What former staff and board member are saying

Kirkendoll and the two former employees said the Center for Self-Sufficiency did not misallocate any funds.

It could verify grant program expenses with receipts and paper and computer records, but it had a past accounting system that was not clear, they said. 

When Dafi Dyer became president and CEO of the Center for Self-Sufficiency in late 2022, she and the board implemented a review of the center’s outside accounting firm after noticing some problems and switched to a new accounting firm and system in mid-2023, according to Kirkendoll.

During the audit, the center provided the records from its updated system, as well as the records from the previous accountant, according to Kirkendoll and the former employees. 

“So all that stuff is substantiated, it was there, it just wasn’t in the format that they would have expected from the accounting firm,” Kirkendoll said. 

The audit also reported that the center did not complete single audits for 2021, 2022 and 2023.

The Department of Justice Office of Public Affairs did not respond to questions about the services and documentation provided by the Center for Self-Sufficiency. 

The Office of the Inspector General did not attempt to collect the spent money, according to the former employees and Kirkendoll.

Shutting down

Kirkendoll said the board was having conversations with the center’s leadership about potentially dissolving the organization in the first quarter of 2025. 

As limited-term grants ended, according to Kirkendoll and former employees, leadership and the board were not sure if the organization would be able to receive enough funding from other grants to support its operations. 

“When we dug deeper, it just got to a point where, as a board, we decided having even one or two grants remaining just didn’t make sense,” he said. 

The center moved out of the Lovell Street building into the YWCA Southeast Wisconsin building at 1915 N. Martin Luther King Drive in May.

The Center for Self-Sufficiency made efforts to downsize by reducing employee hours and salaries, according to a former employee. It cut its staff of 10 in half in June.

The organization’s total public support dropped from $3.46 million in 2015 to $2.2 million in 2019 to $1.3 million in 2023, according to the center’s tax filings.

It also did not have much private funding – in 2023, it reported $55,054 in other gifts or contributions. 

Kirkendoll said concerns about grant funding are not specific to the Center for Self-Sufficiency. 

“Over the course of the last five-plus years, I think this funding overall for organizations that are doing the work has decreased substantially,” he said.

Impact

Both former employees said the center had a great working environment and a staff dedicated to the people they served. 

One former employee said success stories from past clients, such as staying at a job for two years or having relationships with their children or families that they couldn’t maintain before, might not be reflected in data reports but can make a big difference in a person’s life. 

Another former employee said they gave their contact information to the final participants in the reentry program and still tries to connect them with other resources. 

“They did great work, and this is the nature of nonprofits,” Kirkendoll said. “It’s, of course, always my hope that the work continues, whether it be with another organization, because there’s definitely a need in the community.” 

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.

Milwaukee’s Center for Self-Sufficiency closes after federal audit finds unsupported grant documentation is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

When the Social Development Commission stopped running its anti-poverty programs and services in 2024, it left many employees and contractors unpaid for completed work. 

Nearly two years later, some have received a partial payment, while others are still waiting.   

Deja Allen, a former housing intake specialist for SDC, is owed $2,518.09 in gross wages, according to her wage claim. 

She said she was out of work for eight months and the unpaid wages affected her tremendously as she figured out how to pay her rent and bills. 

“I am thankful for my family being able to assist me while I looked for other employment,” Allen said. 

SDC stopped running its anti-poverty programs and laid off staff in April 2024. Since then, the agency has dealt with board turnover, lawsuits and the loss of access to community action funding.

What’s happening with the wage claims lawsuit?

The Wisconsin Department of Justice filed a lawsuit on behalf of the state’s Department of Workforce Development that claims SDC owed nearly $360,000 in back wages and benefits to former employees.

Sarah Woods, former youth and family services staff, was laid off when the agency paused services in April 2024. She filed a wage claim with the Wisconsin Department of Workforce Development, which informed her that she is owed $4,756. 

Woods said she last received an update from the state in May 2025, when a representative said SDC would not have more information until the legal process is completed. 

Department of Justice attorney Michael D. Morris said at a status conference last month that William Sulton, SDC’s former legal counsel, is still working behind the scenes with him on reaching a resolution and requested additional time. The next status conference is scheduled for 10:30 a.m. on March 26. 

A spokesperson for the Department of Workforce Development said the department isn’t able to provide additional details on the lawsuit’s status or outcomes while litigation continues. 

Jorge Franco, interim CEO of SDC and chair of the SDC board, said that paying employees and contractors what they’re owed remains a major priority for SDC. He advised former employees to follow the legal process closely. 

“It’ll be upon the attorneys for the claimant to determine what and how they proceed through next steps,” he said.

Contractors still owed

In his more than 40 years providing weatherization services in the Milwaukee area, Jaime Hurtado said SDC had one of the best and most robust weatherization divisions. 

Hurtado is the owner and president of Insulation Technologies Inc., or Intec, and worked with SDC for more than 20 years.

SDC received funding for the work through Wisconsin’s Weatherization Assistance Program. The Wisconsin Department of Administration suspended SDC’s participation in the program in March 2024 and began a forensic accounting after it reported a misallocation of funds. 

“They had built a professional, top-tier delivery service, a program to deliver these services in weatherization for people who need it the most,” Hurtado said. “It’s a heartbreak to see that go out of existence.”

Franco has said the department refused to reimburse SDC for nearly $490,000 in weatherization work and let it continue accumulating expenses before shutting down the program.

Intec and two other contractors, Affordable Heating and Air Conditioning Inc. and DMJ Services LLC, otherwise known as Action Heating & Cooling, sued SDC on claims that it failed to pay for weatherization work completed under contract in 2023 and 2024.

A judge granted the contractors a money judgment of $186,517.03 plus statutory costs and interest in October. About $112,500 of that would go to Intec, but it hasn’t been collected yet.

Jon Yakish, owner of Micro Analytical Inc., said his asbestos-testing laboratory has not been paid for 90% of the contracts it had with SDC before it closed. 

“It wasn’t that big of a deal,” he said, estimating the remaining unpaid work cost around $2,300. “And I know there’s other people out there where it was a much bigger deal, so it’s hard for me to complain.”

Loss of work

More than the missing payments, Yakish and Hurtado’s businesses have felt the sustained impact of losing a loyal customer. 

Intec continues to perform work in the state’s weatherization program, Hurtado said, but at a reduced level. He said other providers have brought in a smaller volume of business than SDC. 

“We just move our attention to other parts of the market,” Hurtado said. 

Yakish said Micro Analytical also hasn’t received the same amount of business it had from SDC from the other organizations that have taken over the weatherization program services in Milwaukee.

“We don’t want to rely on the government, but it is a baseline of work that’s always going on, that kind of, in a way, helps us be recession-proof,” Yakish said. 

Moving on

Hurtado said the lawsuit was the only way to secure Intec’s rights to collect the money that it’s owed, though he acknowledged that SDC owes other lenders and suppliers.

“Who knows if they’ll have enough money to pay our balance, but at least we’ll be in the list,” he said. 

The $112,500 amount is about 25% of the total amount Intec was owed from SDC, Hurtado said. He said the state worked with other weatherization service agencies to pay Intec the other 75%, which helped the company. 

“Thank God we’re diversified enough, and we’re a strong company,” he said. 

Yakish said he submitted invoices and data on work performed at the state’s request in order to get paid, and a few contracts were paid. He became frustrated after the companies that had taken over SDC’s weatherization contracts kept asking for the same information.

“I kind of told them, ‘Look, I’m throwing my hands up.
This is the last time I’m doing this,’” he said. “So I don’t know if they took that as I was unwilling to work with them or whatever, but it just seemed really clear that nothing was actually going to happen.”

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.

Nearly two years after SDC shutdown, former workers and contractors still seek payment  is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

The Social Development Commission spent 2025 trying to restore services and funding in the face of legal challenges, board friction and government audits and reviews.

Commonly known as the SDC, the organization has a long history of providing services for low-income residents in Milwaukee County, including tax help, job training and rental assistance.   

Since it stopped running its programs in April 2024, SDC has been trying to create a path to resume its anti-poverty work. 

Here are some of this year’s major stories on the SDC. 

March/April

State holds public hearing   

In March, the Wisconsin Department of Children and Families scheduled a public hearing on SDC’s status as a community action agency. 

The community action agency designation allows SDC to receive a federal block grant to support its anti-poverty work. 

Jorge Franco, interim CEO and chair of the SDC board, said at the board’s next meeting he felt the department had not been transparent with SDC about its concerns on SDC’s ability to restart services and meet other requirements while they had been meeting and providing documents over past months. 

In early April, the Department of Children and Families held a hearing in Milwaukee on SDC’s community action status to get public comments from members of the community, who spoke in favor of SDC. 

May/June

State files wage claims lawsuit 

The Wisconsin Department of Justice, on behalf of the Department of Workforce Development, filed a lawsuit in May that alleges the SDC failed to pay $360,000 in wages and benefits owed to former employees, according to court records. 

William Sulton, SDC’s attorney at the time, acknowledged SDC owes workers wages, but said the lawsuit would not be the most effective way to get them paid. 

Franco has said SDC is committed to repaying employees for wages and benefits. 

State’s community action decision held for review

After reviewing materials from the public hearing, Secretary Jeff Pertl of the Department of Children and Families decided in May that it would remove SDC’s community action status in July.

However, SDC leaders said they had concerns that the state did not follow the proper decision process, so they requested a review from the U.S. Department of Health and Human Services in June. 

The department agreed to take up the review, which suspended the state’s decision. 

September 

Weatherization vendors win lawsuit 

Three vendors filed a money judgment lawsuit against SDC in an effort to collect reimbursements for weatherization work completed for the agency. In September, a judge granted a total judgment of $186,500 plus statutory costs and accrued interest. 

October 

Credit facility proposed

The SDC board received a letter of intent from Wings Credit Union indicating it is interested in providing the SDC with a credit facility, or a type of loan, of up to $15 million. In SDC’s case, the credit facility would be used to cover upfront expenses for government-funded programs that are paid through reimbursements. 

Foreclosure decision 

In March, Forward Community Investments Inc. filed a foreclosure lawsuit against SD Properties Inc., which owns SDC’s buildings, alleging it defaulted on mortgage payments for the main office and warehouse buildings on North Avenue. 

At an October hearing, a judge ordered a judgment of foreclosure against the North Avenue buildings and ruled that Forward Community Investments was entitled to a money judgment of approximately $3.1 million. 

SDC moved out of the buildings and started a three-month redemption period.

Sulton resigns

Sulton, SDC’s attorney and legal counsel since late 2022, resigned from his volunteer position in mid-October. 

Sulton represented SDC in lawsuits, served as a spokesperson and advised the board.

November 

Board members make failed attempt to remove Franco  

Some members of the board attempted to call an emergency meeting to vote on removing Franco as the board chair and interim CEO, but they ultimately did not vote on anything because of a disagreement on meeting procedure. Franco opposed the meeting and called it “out of order.” 

State releases community action decision

The Department of Children and Families notified SDC on Nov. 21 that it believes the federal review period ended as of Nov. 18 and would be moving forward with removing SDC’s community action status. It selected UMOS to be an interim provider of block grant-funded services. 

SDC commissioners raised questions about the timeline of the federal review at a board planning session in November. 

December 

Federal office releases letter

The director of a division in the federal Office of Community Services found that the Wisconsin Department of Children and Families’ process of removing SDC’s community action status was compliant with federal law, according to a letter it sent to the department on Dec. 5. 

SDC is seeking further clarity from senior leadership at the Department of Health and Human Services, Franco said in a statement.  

What happens next  

Building sale or foreclosure auction  

The three-month redemption period for the North Avenue buildings expires on Jan. 6, according to SDC, although they technically can be redeemed up until there is a hearing to confirm the sale of the properties at auction. 

Ongoing legal cases

Lawsuits filed against SDC from TriShulla, an information technology company, and the Department of Workforce Development are still ongoing. 

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.

A year of challenges for Milwaukee’s Social Development Commission is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

Several groups in Milwaukee saw a need in the community for a space to grieve and receive healing services. So, they created it. 

LaPorche Kimber, founder of Butterfly’s Sacred Journey, and Kewannee Allen, founder and CEO of the Amareon Allen Foundation, are organizers of the Grinding & Grieving Bootcamp. 

The boot camp was held with and at The Missing Peace Community Collective, 3248 W. Brown St., Milwaukee, on Sept. 27. 

“I just hope that we’re able to help someone get through the grief process because it is a journey,” Allen said. 

Her son, Amareon Allen, was shot and killed in 2021. 

Processing loss and moving forward

Gathered outside on a warm morning in late September, boot camp participants received small envelopes and carefully opened them. 

Butterflies emerged.

Each butterfly moved at its own pace, some eagerly taking off while others clung to the envelopes, grass, clothing or hands of the people releasing them. 

The activity symbolizes the act of releasing lost loved ones but also overcoming challenges, according to Kimber. 

When Kimber lost her son, Maurice Grimes Jr., to gun violence in 2019 and went through a divorce, she said she felt angry and like she had nothing to live for. 

“I found healing in spaces where I could connect with people that experienced some of the grief that I did,” Kimber said.  

Trying to stay strong

The boot camp combines the sharing of personal experiences with speeches and resources about mourning and financial planning. 

“I’m here to turn my tragedy into triumph and to be around other people that’s going through something,” Kamid Everett said. 

Everett’s 14-year-old son, Bryant Triplett, was shot and killed in December 2024 at North 21st Street and West Concordia Avenue in Milwaukee while she was already recovering from her mother’s death from lung cancer. 

She said she tries to stay strong for her family, but things like the back-to-school season and trying Bryant’s favorite food, sushi, remind her of him. 

“He didn’t get a chance to leave his mark on the world,” she said. 

Techniques and tools for navigating grief

During the boot camp, participants used art therapy techniques to express their emotions, including coloring a mask to reflect how the outside world sees them versus how they actually felt inside. 

Some of the speakers created affirmations or “I” statements to comfort and empower the audience. 

Monette Harmon, a funeral director apprentice and certified death doula with Neka’s Funeral & Cremation Services, led a mock funeral in front of a casket adorned with flowers, candles and photos.  

She reminded attendees they had the right to grieve, to rest and practice self-care and to not lie about their feelings. 

“People can’t help you if you can’t be honest,” she said. 

Daniel Harris, a gospel and rap artist, wrote a book about grief and asked participants to record audio on their phones as they repeated messages like “I am a storm survivor” after him. 

“There’s going to be times when you’re going to need words of encouragement when no one is around,” he said. 

Everett said Harris’ message of surviving the storms of grief resonated with her. 

“His whole message was just everything to me because you got to keep going, and then people don’t know what you’ve been through because we always try to hide what we’ve been through,” Everett said. 

The organizations plan to continue to provide grief services and offer their own events. 

Babett Reed, executive director of The Missing Peace Community Collective, said she hopes to open a rage room in the space. She thinks the community needs more events like the boot camp. 

“Every month, we need to have a place where we can go and be healed and be able to talk to someone,” Reed said. 

Butterfly’s Sacred Journey offers resources and events using art therapy, books and journals to support grieving children. 

The Amareon Allen Foundation’s Next Chapter Resource Hub & Healing Circle meets from 11 a.m. to 1 p.m. every fourth Saturday of the month at rotating locations. It also hosts Thanksgiving and Christmas givebacks for families impacted by gun violence. 

Click here for a list of resources to help interrupt violence

How three Milwaukee organizations help residents ‘grind’ through grief is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

A Milwaukee County Circuit Court judge has ruled that the Social Development Commission’s property corporation defaulted on mortgage payments for its North Avenue buildings and faces foreclosure in the coming months.

This judgment, which was issued Monday, Oct. 6, is the latest development for the Social Development Commission as the anti-poverty agency attempts to reconcile its budget and secure funding amid lawsuits, board tensions and government reviews.  

The properties will now enter a redemption period for three months before the court can take further action, including selling the properties at auction. 

“I can tell you that (SDC) is working tirelessly to be able to secure and redeem the properties,” said Evan P. Schmit, an attorney with Kerkman & Dunn representing SDC and SD Properties. 

Millions owed

Forward Community Investments, a community development financial institution, filed a foreclosure lawsuit in March against SD Properties Inc., the tax-exempt corporation that owns SDC’s buildings. The lawsuit claimed SD Properties defaulted on mortgage payments in 2024 and lists SDC as a guarantor.

On Monday, Milwaukee County Circuit Court Judge J.D. Watts granted a summary judgment for Forward Community Investments, which included a judgment of foreclosure against SD Properties and SDC and declared that Forward Community Investments is entitled to a money judgment. 

This judgment allows the foreclosure process to advance, according to Ryan Zerwer, the president and CEO of Forward Community Investments.

The total judgment amount owed by SD Properties was just over $3.1 million, as of June 16, according to court records. 

The lender’s complaint outlines that this includes $2.42 million in principal, interest and other costs for a construction mortgage SD Properties entered into in 2020 and $687,000 for an additional mortgage started in 2023. 

Additional accrued interest and other costs may be added to the tally before the properties are redeemed or sold. 

SDC moves out

SDC voluntarily vacated the 1730 W. North Ave. office and removed personal property, said Laura Callan, an attorney with Stafford Rosenbaum LLP, which is representing Forward Community Investments. William Sulton, SDC’s attorney, confirmed the agency moved out of both the office and the warehouse building at 1810 W. North Ave. 

SD Properties still owns a property on Teutonia Avenue that is not included in the lawsuit. 

Watts said that both parties have been cooperative. 

“This is, of course, a major event in the community, so I’m aware of the importance of this case,” Watts said.  

What’s next?

Wisconsin foreclosure laws require a redemption period, which will be for three months in this case. 

During this period, SD Properties has the chance to redeem the mortgaged premises by paying the total amount of the judgment and other attorney fees, costs and interest. 

“The board is gonna have to decide whether they want to try and redeem the building or not,” Sulton said.  

SDC is awaiting responses from the federal government on its status as a community action agency and Wisconsin departments on their audits. This is preventing the board from making decisions on the agency’s future direction and services, Sulton said. 

If the properties are not redeemed after three months, the Milwaukee County Sheriff’s Office will arrange a public auction or sale.

Schmit said a hearing to confirm the sale will be held after the redemption period, which would be the final opportunity for SD Properties to maintain the buildings.

“We will wait for the procedure for the confirmation of the sheriff’s sale, just to be clear,” Watts 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.

Social Development Commission buildings in Milwaukee face foreclosure is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

The Social Development Commission, or SDC, is facing new developments with its funding, board and lawsuits. 

Here is what you need to know. 

Questions raised about vendor payments, leadership at board meeting

Amy Rowell, executive director of COA Youth and Family Centers, attended the SDC’s board meeting on July 17 to ask the board about the status of an unpaid invoice. In March, NNS reported programming changes at COA, which serves families in the Amani, Riverwest and Harambee neighborhoods of Milwaukee.

Rowell said SDC owes more than $153,800 in reimbursements related to the Workforce Innovation Grant, which COA has requested from the agency multiple times since last August. 

“It’s been putting a pretty significant hardship on the organization because we paid the invoice and now we’re just waiting for reimbursement,” Rowell said. 

Jorge Franco, chair of the board and interim CEO of SDC, told Rowell that SDC would follow up with her but did not have an estimate of when the invoice would be paid.   

SDC Commissioner Pam Fendt thanked Rowell for her comments and voiced concern about Franco’s leadership.

“I would like to make a public statement at this time that I do not feel that the board has been staffed by the interim CEO in a way that allows me to have input on budget or funding decisions,” Fendt said. 

Commissioner Walter Lanier agreed, adding that the board should focus on how to govern more effectively. 

“I think it’s extremely high priority, top priority, for us to do that and I think we need to make some changes to make that happen,” Lanier said. 

Federal review of community action status

The Wisconsin Department of Children and Families in May planned to remove the SDC’s community action agency status, effective July 3. Removing that status would make SDC ineligible for millions in Community Services Block Grant funding and hinder the organization’s path to relaunch services and secure other funding. 

However, that decision is on hold while the U.S. Department of Health and Human Services, or HHS, conducts a review of the state’s hearing and decision-making process and evaluates if it followed federal guidance. 

The Department of Children and Families has sent documentation to HHS to examine for the review, according to Gina Paige, communications director for the department.

State moves forward with plans to replace SDC

The Department of Children and Families continues to look for agencies in the state that could possibly use the remaining block grant funding to be an interim provider of anti-poverty services in Milwaukee County if the state’s decision is upheld. 

“DCF has received applications from interested community action agencies and is currently in discussions with relevant parties,” Paige said. 

The state is preparing to move quickly to resume services if HHS upholds its decision and the de-designation is completed, she said.

“I think we’re likely going to see more of, like, the food services turned back on, probably some of the rental housing assistance, just because there’s some established networks there that folks will be able to leverage to get those turned back on,” Paige said. 

The department is requesting applications from existing community action agencies to serve the unserved county because of the Wisconsin CSBG State Plan, which requires the state to see if an existing agency can take over services before creating a new community action agency.   

Additionally, the future of the program is uncertain because President Donald Trump proposed eliminating CSBG funding in his budget for 2026. 

If Congress decides to continue CSBG funding, the state will consider starting a process to select one or more permanent community action agencies to serve Milwaukee County, Paige said.

Foreclosure hearing scheduled

A new motion in the foreclosure lawsuit against the Social Development Commission’s property corporation could result in a judgment by October. 

Earlier this year, Forward Community Investments Inc. filed a lawsuit against SD Properties Inc., the tax-exempt corporation that owns SDC’s buildings. The lawsuit resulted from SD Properties defaulting on mortgage payments on its North Avenue buildings, and it now owes over $3 million in loan obligations, interest and other costs, according to court records. 

In June, the attorneys representing Forward Community Investments filed a motion requesting a summary judgment hearing, which has been scheduled before  Circuit Court Judge J.D. Watts for 11 a.m. on Oct. 6 in Room 414 at the Milwaukee County Courthouse, 901 N. 9th St.

A summary judgment hearing asks the court to grant judgment in favor of a party based on the law without a full trial, according to William Sulton, SDC’s attorney. 

“That is something that is common in foreclosure cases and other cases,” Sulton said. “It’s not something that surprised us or alarmed us.” 

Before the summary judgment, there will be a scheduling conference in the case on July 24 at 9:30 a.m. in Room 414 of the courthouse. 

Board changes and vacancies

Milwaukee Area Technical College appointed Michael Rogers, MATC’s vice president of student engagement and community impact, to its seat on the SDC board. 

Commissioner Vincent Bobot’s term expired on June 1, but he remains as the chair of the SD Properties board. 

Bobot was serving his third term as an elected commissioner for SDC’s District 6, in the southern portion of the county, and briefly served as the agency’s CEO and board chair last fall. 

He said on July 17 that he is not sure if he plans to run for re-election.

Many appointments have been made to the SDC board in the last few months, but the board now has vacancies in all six elected board seats.

Lanier focused on filling vacancies, board consistency

Before the meeting, Lanier, the SDC commissioner, said he believes that working on the board’s governance, such as filling vacancies and holding elections to get community representation, will put the board in a better position to address the organization’s challenges. 

“​​I think once we finish some of our transitions and get the board fully active, the board will be able to be moved forward in a more effective way,” he said. 

SDC’s next board meeting is scheduled for Sept. 4. 

Money owed, pending reviews and lawsuits: the latest on Milwaukee’s Social Development Commission is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

The Social Development Commission, or SDC, is asking the federal government to reverse a decision made by the state that could alter the anti-poverty agency’s funding options. 

Here’s what we know.

The community action decision 

The Wisconsin Department of Children and Families decided in May to remove the SDC’s community action agency status, effective July 3.

Although the department believes SDC has not been operating anti-poverty services since it shut down in April 2024, despite reopening in December, SDC’s leaders have said the state did not follow the proper process to make this decision.

Without this designation, SDC will not be eligible for a Community Services Block Grant, which is a small portion of its budget but significant to its efforts to pay back employees and rebuild its service programs.

How does a federal review work? 

When a state decides to rescind community action status or the related block grant funding from a local agency, the agency can request a review from the U.S. Department of Health and Human Services within 30 days. 

SDC submitted a request for a review of the state’s community action decision to the department on June 9, citing concerns about due process. 

The Department of Health and Human Services, or HHS, will evaluate if the state’s determination process followed the guidance on the termination or reduction of funding for entities eligible for the Community Services Block Grant, according to a spokesperson from the department. 

The Division of Community Assistance, which is part of the Office of Community Services within the federal department, oversees block grant funding for community action agencies. 

“I think that HHS is concerned about the process that was used to de-designate SDC, and so my expectation is that they will be talking to the state about the process,” said William Sulton, SDC’s attorney.

The Department of Children and Families received notification on June 11 from the Office of Community Services that SDC requested a review, but did not receive the request itself, according to Gina Paige, communications director for the department.

The review will be completed within 90 days of receiving all required documentation from the state, according to federal law. If not completed in the 90-day time frame, the state’s decision will be upheld. 

As part of the request, SDC is asking the Department of Health and Human Services for direct financial assistance. 

According to the CSBG Act, if a state violates the de-designation process –  by terminating or reducing funding of an eligible entity before the state hearing and the secretary’s review – the Health and Human Services secretary is authorized to provide financial assistance to the entity affected until the violation is corrected.

SDC’s concerns 

SDC raised two main concerns with the state’s determination process in the request, based on state and federal laws.  

The first concern is that the public hearing on SDC’s community action status, held by the Department of Children and Families on April 4, did not meet the legal requirements of a “hearing on the record.”

“You’re supposed to be permitted to call witnesses and present evidence,” Sulton said. “… We were given seven minutes to make a speech, and that was it.” 

SDC also says that both the Department of Children and Families’ secretary and the legislative bodies of the city of Milwaukee and Milwaukee County would have to sign off on the decision, based on a state statute that requires the legislative body that initially granted the agency community action status to approve rescinding it. 

“They didn’t go out and get position statements from the city and the county’s legislative bodies,” Sulton said. 

The department did not comment on these claims. (Paige previously said it has worked closely with the Office of Community Services and Milwaukee County to determine the process needed to move forward with de-designating SDC.)

Although Milwaukee County’s Office of Corporation Counsel submitted a letter to say it found no records of the Board of Supervisors taking action on SDC’s status as a community action agency, Sulton said that doesn’t mean there are no records. 

He argues that this provision of the law, added in 1983, was put in place to protect SDC from arbitrary state action.

Funding deadline

In May, three state lawmakers asked SDC to consider voluntarily de-designating, which would allow the state and Milwaukee County to more quickly find an interim service provider to use SDC’s allocated funds in Milwaukee County. 

The $1.18 million in 2024 block grant funding could be recouped by the federal government if not spent by Sept. 30, 2025, according to the Department of Children and Families. 

However, Sulton said when he reached out to the Department of Health and Human Services before filing the review, an employee told him the 2024 funds had to be obligated by 2026.

“To the extent that anybody has the impression that this money has to be obligated by September or it’ll be lost, HHS says it’s not the case,” he said. 

States and subrecipients usually have two years to distribute funds, but it depends on state-specific policies, according to HHS.

The state’s Sept. 30 deadline marks two years after the beginning of the 2024 fiscal year in October 2023, according to Paige. 

Though Paige said that SDC’s request for review is perpetuating the lack of services in Milwaukee County, she added that the department plans to seek a six-month liquidation extension from the federal government.

“It’s quite possible that we’re gonna be on a really tight timeline to get that money out the door, so that’s why we’re hoping that we can work with the federal government and see if they can allow us an extension to expend it a little bit longer,” Paige said. 

Board member changes

The SDC board added two commissioners in May – Milwaukee Public Schools appointed Michael Harris, and the Interfaith Conference of Greater Milwaukee appointed Peter Fetzer, an attorney at Foley & Lardner LLP. 

In the last seven months, the SDC board has expanded from three to 10 commissioners, thanks to several appointments to vacant seats. The board is designed to have 18 members at full capacity. 

Commissioner Lucero Ayala’s term has ended, according to Sulton. Ayala was nominated and selected last year to fill the remainder of Serina Chavez’s term as an elected commissioner.

Milwaukee Social Development Commission wants feds to reverse state funding decision   is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

The state of Wisconsin is rescinding the Social Development Commission’s status as Milwaukee County’s community action agency, a move that puts the SDC’s ability to offer critical services to the community in jeopardy.

The anti-poverty agency has held that designation for over 60 years. Without the status, SDC is not eligible for key federal block grant funding for its services.

In a letter sent Friday to the SDC board, Wisconsin Department of Children and Families Secretary Jeff Pertl wrote that as of July 3, SDC’s status as Milwaukee County’s community action agency will end and that the agency will no longer be eligible for federal Community Services Block Grant funding.

“SDC has been a beloved institution in Milwaukee, positively impacting community members through a long history of programs and services,” Pertl said in a statement. “As such, the decision to de-designate them as a community action agency was not taken lightly, but it is clear that we must turn the page to resume these vital services.”

The decision comes after representatives of Milwaukee County said earlier this month that they planned to move from SDC as its community action agency.

However, SDC board members had seen maintaining the community action status as a vital part of keeping the agency open and resuming social services.

“The most important thing is to make sure that Milwaukee County residents are served, and this missive from DCF ensures that they will not be served,” said William Sulton, SDC’s attorney.

Now, the SDC board can request a review with the federal government within 30 days or choose to voluntarily de-designate.

The decision

The department decided to terminate SDC’s designation because it believes SDC has not been operating anti-poverty services since it abruptly shut down in April 2024, despite reopening in December.

According to the letter, SDC has not completed its federally required audit, verified sustainable funding sources, addressed outstanding financial obligations or corrected other deficiencies the department identified.

Board members and current and former employees of SDC advocated for the agency to keep its community action status at a hearing last month.

SDC was created by state, county and city governments but functions outside of them.

Pertl acknowledged the commitment of former staff members who performed unpaid service in support of SDC’s work and the board’s desire to restore SDC in his letter.

“There is also an array of community members and leaders who contend SDC is unable to carry out its vital mission in light of the financial mismanagement, pending foreclosures, outstanding debts, eroded infrastructure and lack of urgency in finding resolution to these practical service delivery challenges,” Pertl wrote in the letter.

SDC provided a range of services to help low-income residents, such as tax support, career advancement, senior companionship and rent assistance.

What happens next?

Going forward, SDC has the option to request a review by the secretary of the Department of Health and Human Services within 30 days.

It could also voluntarily relinquish its community action status, which would allow the department and Milwaukee County to more quickly find an interim service provider to use SDC’s allocated funds for the year.

The letter noted that President Donald Trump’s administration proposed eliminating block grant funding to community action agencies in his fiscal year 2026 budget, making the program’s future uncertain.

The Department of Children and Families can now start conversations with other eligible entities, but cannot take over the funds intended for SDC until SDC’s de-designation is effective, according to Gina Paige, communications director for the department.

Sulton said the board will have to meet to determine SDC’s next actions, but he is concerned that the state, Milwaukee County and the city will choose to stop funding anti-poverty services.

“Really what this act amounts to is a withdrawing of their commitment to pursue anti-poverty programming,” he said.

Board members could not be reached for comment.

SDC faces more funding upheaval after state removes its Milwaukee County community action status is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

It appears that Milwaukee County is ready to work with the state to find a new community action agency to replace the Social Development Commission, the embattled agency that has provided anti-poverty services for more than 60 years.

In an email to NNS, a spokesperson from the press office of Milwaukee County Executive David Crowley stated: “Given the urgent need for supportive services in Milwaukee County, and in light of SDC’s ongoing challenges, we stand ready to work with the Wisconsin Department of Children and Families and other local partners to identify another eligible entity or entities who can receive (Community Services Block Grant) funds and provide needed services to county residents.”

The Social Development Commission, also known as the SDC, is eligible to receive these federal block grant funds administered by the state through its status as a community action agency, which the state is considering rescinding.

The email from the county was sent in response to a question about whether the Milwaukee County Board of Supervisors and the Milwaukee Common Council are required by state law to approve any decision to rescind SDC’s designation as a community action agency.

The background

The Wisconsin Department of Children and Families, or DCF, is scheduled to make a final decision on SDC’s community action status in the coming months.

DCF held a public hearing on April 4 to discuss SDC’s designation and future. At the meeting, some SDC board members and current and former employees testified about the crucial need to maintain the agency.

The department’s leadership said SDC has not created a realistic financial plan to restart services and perform its community action duties under the law, and it continues to have financial, programmatic, operational and service delivery concerns.

SDC reopened in a limited capacity in December after abruptly shutting down in April 2024, when problems included failing to pay employees and contractors on time and using grant dollars for one program to cover costs for another.

The agency has since missed state deadlines to pay employees their owed wages and also still owes some contractors for completed work.

 In addition, SDC’s property corporation, SD Properties Inc., is facing a foreclosure lawsuit and owes nearly $3 million in mortgage payments on its North Avenue buildings, according to court records.

Who’s responsible?

Jorge Franco, interim CEO of SDC and chair of its board, said Wisconsin law requires both the Common Council and County Board of Supervisors to approve a decision to de-designate SDC as a community action agency before the state can take that action. 

Franco is referring to Wisconsin Statute 49.265, which states the following: “The approval of a community action agency may be rescinded but only if there is good cause and if the decision to rescind is made by both the legislative body of the county, city, village or town that granted the approval and the secretary.”

According to the organization’s former website, SDC became a community action agency in 1964, shortly after the Economic Opportunity Act created the Community Action Program.

Because SDC was established through a collaboration that involved the city, county and other organizations, there is a lack of clarity over which legislative body actually granted SDC’s approval as a community action agency.

It’s also unclear which legislative body must weigh in on the commission’s potential de-designation based on state statute.

According to a spokesperson from the Milwaukee County Executive’s Office, a review of records found that the county board and the city of Milwaukee enacted an ordinance establishing SDC as a commission, but not specifically as a community action agency. 

“We have not found any records indicating that the County Board ever took any action relative to SDC’s status as a CAA,” an email from the Milwaukee County Executive Press Office said.

Because the county board did not approve SDC’s status as a community action agency, it does not have the authority to rescind that status, the Milwaukee County Executive Press Office’s email said. 

Jeff Fleming, a spokesperson for Mayor Cavalier Johnson, said the city’s responsibility in the potential de-designation of SDC as a community action agency has been a topic of discussion.

“The first impression from the city side is that it was the county that ‘granted the approval,’” Fleming said in an email, referring to SDC’s status as a community action agency. 

NNS also reached out to Milwaukee City Attorney Evan Goyke for comment on the issue, but he hasn’t responded. 

The Department of Children and Families was also questioned about which legislative body granted SDC approval to be a community action agency. 

“This is the first time the Department of Children and Families has sought to de-designate a community action agency,” said Gina Paige, communications director for DCF.  “As such, we are working closely with the federal Office of Community Services and Milwaukee County to determine what the process would need to be should we move forward with de-designating SDC.”

According to Franco, the state operates under a federal mandate to provide the types of anti-poverty services that SDC had provided for decades.

He said without SDC, those services could be delayed by several years.

“The bottom line point is that infrastructure is there. It must be activated immediately,” Franco said. 

Money, Franco said, is needed to help the agency climb out of debt and, more importantly, relaunch vital services to low-income residents in the county.

“SDC intends to pay every dollar it owes. First things first. Get anti-poverty services ready to go through SDC, which is ready to go today and that should not be delayed any further,” Franco said.

Some elected officials weigh in. Most stay silent.

State Sen. LaTonya Johnson said that she’d like to see SDC rebound from its troubles.

“SDC has been in the community for many years providing pivotal services for the community and this community can’t afford to lose those services,” she said.

Still, she said, given the significant mismanagement of funds at SDC, she understands that the Department of Children and Families will make a decision it feels is in the best interests of residents.

“Whatever decision they make, I’ll have to back it just like other elected officials will because we have to believe that they’re making the choice that’s best for taxpayers,” she said. “I’m hoping that the state will have a way to make sure that services will be provided, whether it’s SDC or not.”

Ald. Sharlen Moore also hopes to see SDC survive.

“They provide a critical need to our community, and so what I would hope is that they would find the necessary help or support that they need in order to get back on track,” Moore said. “It’s such a huge void.”

Like Johnson, she also acknowledges the challenges of providing funding to an organization with an uncertain future.

“It’s hard giving someone money without knowing how they are going to move forward,” she said.

Rep. Gwen Moore said it is important to center the people who have been majorly affected, like residents who lost services and former employees who are still owed pay.

“The serious concerns raised by the state must be addressed, and I hope the result of this process moves us closer to resuming these vital services to my constituents,” she said.

NNS reached out to more than 20 elected officials from the city, county and state government for comment on SDC’s future, including Common Council President Jose Perez and Milwaukee County Board Chairwoman Marcella Nicholson. Only three elected officials chose to speak.

What’s next?  

Despite the current challenges, Franco said that he is confident SDC will bounce back and that the history of the organization is proof of its effectiveness in fighting poverty.

“SDC has a legacy of generations of people who’ve been helped by SDC, and they still live in the community,” he said. “Whatever its issues were in recent times, the long-standing legacy and the number of people who have been helped must not be forgotten.”

Milwaukee County appears ready to find replacement for Social Development Commission is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

Adults who plan to fly within the U.S. or visit a military base or federal buildings on or after Wednesday, May 7, will need a Real ID or other Transit Security Administration-approved documentation.

Here’s what you need to know to get a Real ID in Wisconsin before enforcement begins.

What is a Real ID?

A Real ID is a state-issued driver’s license or identification card that meets security standards of the federal REAL ID Act, which Congress enacted in 2005.

Wisconsin-issued Real IDs are marked with a star in the upper right corner. You can check if your Wisconsin ID is a Real ID here.

Over 64% of Wisconsin residents now have a federally compliant driver’s license or ID card, according to the Wisconsin Department of Transportation Division of Motor Vehicles.

Can I still use another ID?

Starting May 7, a Real ID-compliant driver’s license or identification card, or another TSA-acceptable form of identification, will be required for domestic air travel or visiting U.S. military bases or federal buildings.

The Wisconsin DMV offers both Real IDs and non-compliant IDs.

You do not have to apply for a Real ID if you have no plans to fly or visit a federal building, or if you have another accepted form of identification, like a valid U.S. passport.

You can continue to use your current driver’s license or ID for other identification purposes until its expiration date.

How to get a Real ID

You can apply to get a Real ID online or through a local branch of the Wisconsin DMV.

Using the DMV’s interactive driver licensing guide, you can start an application online, print out a checklist of required documents and schedule an appointment.

Appointments are not required, but the DMV is seeing an increase in visitors as the Real ID enforcement deadline approaches, a department spokesperson said.

What documents do I need to bring?

When you apply, you must provide additional documentation in the form of an original document or certified copy (not a photocopy, fax or scan) from each of the following categories, according to the Department of Transportation.

Some documents can apply to multiple categories, but others may only meet the requirements of one category.

The document categories include:

• Proof of name and date of birth.
• Proof of legal presence in the U.S.
• Proof of identity.
• Proof of name change (only if your name is different from what’s on your birth certificate).
• Proof of address (two forms)
• Provide your Social Security Number.

How to get a copy of your birth certificate or name change documents?

If you were born in Wisconsin, you or an immediate family member can request a copy of your birth certificate online through the Department of Health Services..

This process also requires forms of identification. The cost of the certificate is $20, plus $3 per additional copy.

If you are a U.S. citizen born outside Wisconsin and need a birth certificate, check this guidance.

The simplest way to provide proof of a name change is to bring a valid, unexpired U.S. passport in your current name when you apply for a Real ID. If you don’t have that, you will need to provide documents to support each name change from birth to the current date.

How will the TSA enforce the deadline?

Travelers planning to fly within the U.S. without compliant identification could face delays, additional screening and possibly not be allowed into an airport security checkpoint, according to the Transportation Security Administration.

TSA accepts some other forms of identification.

Minors are not required to have a Real ID, but it is required of adults accompanying them to travel. 

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.

Here’s how to get a Real ID in Wisconsin as new requirements start May 7 is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

The Social Development Commission’s property corporation faces a foreclosure lawsuit for owing nearly $3 million in mortgage payments on its North Avenue buildings in Milwaukee, according to court records.

SD Properties Inc. is the tax-exempt corporation that owns the buildings of the Social Development Commission, or SDC.

Forward Community Investments Inc., a community development financial institution with Madison and Milwaukee offices, filed a complaint March 27 against SD Properties and SDC with the Milwaukee County Circuit Court.

SD Properties owes Forward Community Investments approximately $2.3 million in principal and interest for a 2020 construction mortgage and about $679,000 for a 2023 mortgage, for a total of just under $2.98 million, according to the complaint.

“FCI would be thrilled to see the critical services provided by CR-SDC return to the community,” said Ryan Zerwer, president & CEO of Forward Community Investments, in a statement. “However, the past 12 months, communication from SD Properties, Inc. has failed to provide sufficient information on actionable plans to fully resume operations and start meeting their financial obligations.”

SDC has been in turmoil since last April after it abruptly stopped operations and laid off staff. The agency reopened in December and is now preparing for a public hearing on its community action agency status.

William Sulton, SDC’s attorney, confirmed that SD Properties is in default on its mortgage payments.

“SDC has been in discussions with FCI about what kind of remedies they intend to pursue, so I guess it’s not a complete surprise,” Sulton said.

“I think the impact of the foreclosure case is it puts the North Avenue building at risk, and if there is no North Avenue building, then that is the majority of programs that SDC had in ’23.”

SDC also is listed on the lawsuit as a defendant as a guarantor for SD Properties.

Background and timeline

Forward Community Investments has been a lender to SD Properties since 2015 through its Community Development Loan Fund, which provides “financing to nonprofit organizations and community organizations for mission-focused projects that will work to reduce racial and socioeconomic disparities across the state of Wisconsin,” according to the complaint.

SD Properties entered into a construction mortgage on Jan. 22, 2020, of approximately $1.98 million plus interest, and then modified the agreement on July 22, 2020, to increase the total amount to $2.36 million.

In March 2023, SD Properties entered into a separate agreement in which it would owe about $665,000 and interest for a mortgage of five property parcels, which include the main office at 1730 North Ave., a warehouse at 1810 North Ave. and parking lots, according to court documents.

SD Properties defaulted on a “significant loan” in April 2024, according to Zerwer.

SD Properties also defaulted because it did not pay the entire amount of debt and interest owed for 2020 mortgage by the end date, or maturity date, of Dec. 22, 2024, according to the complaint.

Forbearance action stalled

Before the legal filing, Forward Community Investments presented SD Properties in the fall with a forbearance agreement, in which it would refrain from immediately collecting the obligations due from SD Properties, and revised it several times. 

However, Zerwer said revisions on the agreement reached an impasse in March.

SDC board members discussed a “time-sensitive” resolution related to SD Properties at an emergency meeting on March 24 and decided to postpone taking action.

“We’ve been doing many strategic moves to prevent the foreclosure of this building and possibly a deficiency judgment against our Teutonia (location),” said Vincent Bobot, an SDC commissioner and chair of the SD Properties board, at the meeting.

“If there’s not a foreclosure, it means it’s still going to be drawn out and still take quite some time, but nevertheless, we want that time,” he said.

Board members planned to return to the item at a later meeting so they could discuss it directly with Sulton, who was not at the meeting.

The forbearance agreement would allow SD Properties to keep the North Avenue main office and the 18th Street warehouse, Sulton said, but SDC’s main issue now is having no funding.

“Even if we win the lawsuit, without any funding, we’ll just end up with another lawsuit down the road,” Sulton said.

Legal proceedings

SD Properties has retained attorneys from Kerkman & Dunn to represent it in the foreclosure case, Sulton said.

SDC and SD Properties have 20 days to respond to the summons and complaint before the case proceeds in court.

“We feel we have been patient and extended every opportunity to the leadership of SD Properties, Inc. to work in partnership with us to resolve the loan default,” Zerwer said. “In fact, we call upon SD Properties, Inc. to once again work with us on a forbearance plan.”

Public hearing Friday on SDC

The Wisconsin Department of Children and Families is hosting a public hearing on SDC’s designation as a community action agency from 11:30 a.m. to 1 p.m. on Friday, April 4.

The hearing will be held in the Milwaukee State Office Building, 819 N. 6th St., in Conference Rooms 40 and 45 on the first floor.

Milwaukee Social Development Commission buildings face foreclosure risk is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.

Some Milwaukee organizations are starting to feel the effects of federal funding cuts, the result of Trump administration efforts to shrink the federal government and make it more efficient.

Although many attempts to roll back funding face legal challenges, and the federal and state budgets are under review, neighborhood and advocacy-focused organizations in Milwaukee are making difficult decisions around staffing, program planning and fundraising as they wait for answers.

“I think the biggest challenge for us is just the uncertainty of the situation,” said Bill Schmitt, executive director of Rooted & Rising, a social service agency based in Washington Park.

Uncertainty impacts staffing

Uncertainty around funding led the Hmong American Women’s Association to cut its staff from 11 to four people. 

Vina Xiong, education and outreach director at HAWA, said 63% of the organization’s budget relies on federal funds.

“We had to do this because a lot of the federal grants covered our staff pay, and without us really knowing if we’re going to be getting the funds, we couldn’t allow to keep anyone on our team without paying them fairly,” Xiong said.

HAWA receives funding to advocate for domestic abuse and sexual assault survivors through the Victims of Crime Act, or VOCA, and other grant programs administered by the state Department of Children and Families or End Domestic Abuse Wisconsin.

Schmitt said the first funding cut to directly impact Rooted & Rising is tied to Section 4, a capacity-building and community development grant program from the U.S. Department of Housing and Urban Development.

The Associated Press and Bloomberg CityLab reported that HUD terminated awards in February to at least two of three national organizations that distribute Section 4 grants to local community organizations, including Local Initiatives Support Corp., or LISC.

LISC Milwaukee distributed $225,000 in Section 4 grants to four local organizations with contracts ending between February and May, according to Theodore Lipscomb, executive director of LISC Milwaukee.

Lipscomb said the grants are foundational to LISC’s efforts to help other organizations become prepared to develop new work and pull in other investments, especially with affordable housing projects. 

“It can include a portion of staffing,” Lipscomb said.

“It also can be about organizational capacity, like making sure that you have good, strong financial oversight and governance and that sort of thing to make sure that you’re successful long term.”

LISC plans to appeal the Section 4 cancellations.

Rooted & Rising used its $50,000 community development grant, ending in March, to support neighborhood engagement. Losing that funding would impact the work, Schmitt said, but it is not fully reliant on one grant.

“But if it’s a sign of things to come, it certainly becomes a much bigger problem for us,” Schmitt said.

Supporting projects and programming

VIA CDC, a community development corporation serving the neighborhoods of Silver City, Burnham Park and Layton Park, also received a $50,000 Section 4 grant from LISC Milwaukee that it used to pay staff salaries.

“My fingers are crossed that there will be a resolution that comes forward that allows us to apply for this funding or some version of it,” said JoAnna Bautch, executive director of VIA CDC.

Bautch said she doesn’t think the grant changes will cause VIA to make staffing changes, but it may have to reallocate some other funding.

VIA’s Section 4 contract ended at the end of February, but Bautch said LISC offered support to the organizations for 30 days after the grants were halted.

LISC Milwaukee had planned to distribute another award of $420,000 to extend contracts to four organizations and provide contracts to five additional organizations – all of which are currently suspended, according to Lipscomb.

“Then what that really means is that there’s a project somewhere that’s going to stall because someone’s not going to be working on it,” Lipscomb said.

Thinking about funding alternatives

At HAWA, Xiong said the organization has been able to submit reimbursements to cover pay and services so far this year, but that the organization’s leadership team is thinking about ways to pursue other funding.

“I think this current situation makes us really think about where else we need to look, in terms of more stable funding or funding that can also help support advocacy work that doesn’t rely on federal state funding so much,” Xiong said.

Bautch and Schmitt both said they are working to identify alternative sources of funding.

“I see our philanthropic funders wanting to step up to the plate,” Bautch said. “I had a brief conversation with folks at Zilber Family Foundation who give us a lot of support, and they are trying to strategize on how they can support us.”

How you can help

HAWA, Rooted & Rising and VIA recommend following their social media accounts and newsletters for updates, contacting your senators and representatives, or donating to their programs to show support for their work.

“For the most part, what we’re talking about here are really essential services for our community that are being provided by agencies like ours, that are mission-driven and meeting real needs for the community, and it’s really vital that those programs continue,” Schmitt said.

News414 is a service journalism collaboration between Wisconsin Watch and Milwaukee Neighborhood News Service that addresses the specific issues, interests, perspectives and information needs identified by residents of central city Milwaukee neighborhoods. Learn more at our website or sign up for our texting service here.

How Milwaukee’s community organizations are responding to federal funding cuts is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.