Inside Out at City Hall

by Annise D. Parker

MONEY HUNT 2

In these times, even cities scramble after funds

Caroline Kennedy may be the most visible example of the ways cities, school districts, and states now struggle to find money in this economy. John F. Kennedy’s daughter recently began her job as the director of the New York City School District Office of Strategic Partnerships. Compensation: $1 a year.

Houston ISD has joined about 4,000 other U.S. school districts that have hired professional fundraisers. I don’t know of any cities that have hired full-time fundraisers, but I wouldn’t be surprised. New York City, whose city government oversees its school district, is hurting far more than other cities because of 9/11, the economy, and war fears.

Houston is in relatively good shape compared to many cities. We face only a $40–$60 million shortfall in the current budget that ends in June. That’s a substantial amount of money this far into a $2.5 billion budget. We’re considering employee furloughs to supplement departmental budget cuts. Next year Council will look at numerous long-term options, early retirement incentives, and layoffs, hopefully focusing on mid and upper management.

Some city departments are consolidating their own strategic partnership offices to pursue record private grants to offset shrinking budgets. As I discussed in the first part of this grants series, the city received $147.5 million in federal, state, and private grants in 2002. While many federal and state grants are virtually automatic—albeit shrinking—winning our fair share of a record $29 billion in private foundation grants requires organization, good grant writers, and compliance with often complicated tiers of regulations.

What kind of job is Houston doing compared to other cities? That’s tough to answer without comparing specific grant applications. We’re definitely accelerating our grant application efforts. Although a bit slow getting out of the gate in the flush ’90s, I believe our efforts will soon rival that of any city.

There’s nothing like a bad audit to get things moving. An outside 1994 grants acquisition and management report found numerous problems:

• Lack of coordinated and focused effort

• Little grant writing training

• Poor accounting system

• Slow legal review.

Cheryl Murray, leader of the mayor’s office grants team, cringes when she recalls a grant presentation meeting of the Houston-Galveston Area Council a few years ago. “The anti-gang task force and parks [department] showed up in the same room to present summaries for the same state grant.”

That could still happen, but Murray and the city’s other grant writers are doing a much better job of letting each other know about their applications and grant opportunities. She would also like to put more information about grants on the city website and formally network with the growing number of grant writers by getting together quarterly.

The extensive website of the New York mayor’s grants administration office may set the standard. Created in 1995, the office uses its site to inform city government grant writers. The page includes the office’s quarterly summary of grants that have been identified for city agencies, other grant sources, notices of grant-writing training and assistance, a city grants newsletter, and an FAQ section. City agencies are asked to notify the mayor’s office if they want to apply for certain grants.

Murray was appointed in 1999 to apply for public safety, juvenile delinquency, and, later, after-school grants for the mayor’s office. She has been quite successful, with about $5 million in current grants.

The fact that the $430 million police department—exempt from any budget cuts until this year—has long sought some of the same grants points out the continuing need for coordination. With four or five grant writers (including some uniformed officers), HPD focuses on the huge array of public safety/criminal justice grants. Their track record: 2002, $5.1 million (16 grants); 2001, $8.7 million (17); 2000, $9.4 million (16).

Program materials for the controversial anti-drug DARE program, which city council has come close to killing a couple of times, is funded by the police department’s asset forfeiture fund. I would hope it could be funded with a grant, not money that could be used for proven programs.

The parks department recently reorganized development under the director’s office and shifted toward corporate and foundation dollars as both state and federal grants begin shrinking. Case in point: Last month the federal government eliminated Urban Park and Recreation Recovery Program grants, which gave $800,000 last year to renovate Settegast Park. Three staff members write grants and deal with important corporate sponsorships, such as Minute Maid support of T-ball and baseball leagues.

With virtually half its budget funded by grants, the health department may have the city’s most organized grant application effort. Two full-time employees review grant applications produced by about 25–30 employees who juggle grant writing with other duties. The department created a grants manual used by some other departments as well as a grants manual for community organizations that receive grants through the department.

As firefighters became heroes after 9/11, the catastrophe opened up vast new grants opportunities for the fire department. In the past year, $492,000 has been awarded for firefighter tracking devices with another $750,000 for a firefighter wellness program and equipment.

Following the 1994 report, the city set up a grants compliance division in the finance department, and in 1996 division director Harold Jackson began quarterly roundtables to discuss compliance issues. On a daily basis, his three-person team deals with cash management of grant funds and makes sure grants comply with the sometimes complicated and conflicting federal, state and city rules.

In addition to the $147.5 million in direct grants, Houston is fortunate to have some very generous organizations that donate money, apply for grants, and provide volunteers to lift certain city programs far above the level of “basic services.” These include Adopt a Fire Station; Friends of the Clayton Library; Friends of Hermann Park; Friends of the Houston Public Library; Friends of the Texas Room (Library Department); Houston Library Board; Houston Parks Board; Memorial Park Conservancy; Miller Theater Board; numerous park advisory councils; and Zoo Friends.

When a request for general funds appears on the council agenda or during budget workshops, one of the first questions should be: Can a grant pay for this? Have we exhausted every opportunity for a grant? Thorough answers only, please.

Annise Parker is serving her third term in Houston City Council At-large Position 1 and has announced her candidacy for city controller. To receive her bi-monthly e-mail newsletter, contact annise.parker@cityofhouston.net or call 713/247-2014. Her website is www.ci.houston.tx.us/citygovt/council/1

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