CITY OF LOS ANGELES INTER-DEPARTMENTAL CORRESPONDENCE. er( \t1 o A) {A X \.I(:) STATE BUDGET IMP CT ON LOCAL SENIOR PROGRAMS

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1 FORM ~EN. 160' (Rev. 6-80) CITY OF LOS ANGELES INTER-DEPARTMENTAL CORRESPONDENCE Date: To: From: Subject: September 21, 10 Honorable City Council Member er( \t1 o A) Laura Trejo, General M~n Department of Aging {A X \.I(:) STATE BUDGET IMP CT ON LOCAL SENIOR PROGRAMS The State's budget impasse has resulted in the withholding of $18,491,1 in federal Older Americans Act funds for senior programs from the City of Los Angeles. The Los Angeles Department of Aging (LADOA) is currently using $1,700,000 in general fund bridge loans to maintain services, but they are insufficient to compensate service providers for such a prolonged period. The loans were originally established by the City Council and Mayor to enable LADOA to provide advance payments to contractors while waiting on reimbursement from the California Department of Aging. The loans have provided year round stability by preventing service interruption and cashflow problems, but they were never designed to compensate for fiscal problems created by a State budget impasse. Once the loans are exhausted, the City can no longer advance payments to maintain services. The most critical senior programs impacted are the senior nutrition programs and job training program. The senior job training program, Senior Community Services Employment Program (SCSEP), was suspended after the pay period ending September 11, 10. There are 326 low income seniors in this program currently. LADOA had reduced training hours to extend the program operation under the existing $350,000 bridge loan. The program's average training stipend cost is $104,3 per pay period. To maintain the program through December, $834,560 would be required for eight pay periods. The congregate and home delivered meals programs served 1,622,276 meals to 22,789 seniors last fiscal year and currently provide 6,813 meals each weekday. The home delivered meals program currently serves 3,312 seniors each weekday. In addition to the bridge loans, the nutrition programs also receive General City Purpose funds. The $1,798,845 GCP budget allocation is anticipated to be exhausted by the end of October. The home delivered meals program's monthly average expenditure by the contract service providers is $4,772. The congregate nutrition program provides funding for the 87 dining centers citywide (Attachment #1 ). The dining centers provide 3,501 meals each weekday. The $106,000 GCP budget allocation was exhausted in July. The congregate meals program's monthly average expenditure by the contract service providers is $415,754. The sixteen senior Multi-Purpose Centers (MPC) provide social support services for various Title Ill programs and have the busiest dining centers in their service areas. The $1,350,000 bridge loans for the MPCs and other social service providers is sufficient for less than two months of operations and LADOA anticipates only being able

2 Honorable City Council Members September 21, 10 Page 2 of 3 to reimburse contractors for July and part of August expenses. If a State budget is not approved by early October, contractors will not be reimbursed for their September expenses. The MPCs provide social activities, support services (legal, health, insurance counseling, caregivers, etc), and usually hosts the largest dining centers in their service area. The LADOA's senior service contractors who are able have indicated that they would seek lines of credit or other temporary financial resources to maintain services. However, these measures are limited and programs will begin closing if the State fails to adopt a budget soon. Some providers will have exhausted their reserves and loans by the end of September. Some anticipate maintaining services until December. An additional burden for the agencies is that interest costs are not reimbursable. Attached is a list of the senior multipurpose centers and the anticipated date they will have to close their programs (Attachment #2). As of September 21, 10 some of the providers have reported that they could not secure additional lines of credit and have changed their projected date of closure. Recommendations TheCLA and CAO have identified $3,600,000 available as a temporary loan to be used to maintain services. The $3,600,000 is to be repaid as soon as the State budget is adopted and the OAA funds released to LADOA. This amount is short of the $5,600,000 needed to maintain all programs without the need for the nonprofits to take out lines of credit. However, based on information from the providers the $3,600,000 loan is sufficient when used in conjunction with their reserves and lines of credit to prevent program closures before December. The loan will be allocated to the each program as follows: Senior Community Services Employment Program Home Delivered Meals Program Cqngregate Meals Program Senior MPC and other OAA programs (38, 3D, 3E, 7, HICAP) $834,560 $808,778 $794,059 $1,162,603 $3,600,000 These temporary loans would be repaid once LADOA is reimbursed with federal OAA funds by the State with the adoption of a State budget. The department recommends that Council authorize the $3,600,000 loan to maintain senior services. The department further recommends consolidating the bridge loans to the extent possible so that LADOA will have access to all of its existing resources to provide coverage to any of its programs in the future. The LADOA loans were originally created by program and restricted to their use. In the current situation, $0,000 from two loans for the community based services providers grants can't be used for the senior services and nutrition grants. The state funding portion of these programs was cut this year so they are temporarily available for this fiscal year. Making this available will increase the total bridge loans from $1,700,000 to $1,950,000.

3 Honorable City Council Members September 21, 10 Page 3 of 3 LADOA recommends that the Council instruct CLA to work with the department in pursuit of adding language to the OAA that prevents States from withholding these funds during a budget impasse. L T:JD:kclzlstate budget impact on local senior programs Attachments cc: Brian S. Currey, Office of the Mayor Andrea Galvin, Office of the Chief Legislative Analyst Elaine Owens-Sanchez, Office of the City Administrative Officer

4 AgencWMeal Sites WLCAC Central (101) Theresa Lindsey Center (101) Japanese Pioneer Center ( 1 01) Angelica Lutheran Church (101) Slauson Recreation Ctr (101) Kilgore Manor (101) Villa de Ia Esperanza (101) St. Barnabas (102) Angelus Plaza Senior Housing (102) Crescent Arms (102) The Golden Dragon Rest. & Dining Ctr. (102) St. Barnabas MPC (102) Steel Plaza (102) Sol Bart Rest. & Dining Ctr. (102) SFVIC East Valley (103) East Valley MPC (103) Van Nuys/Sherman Oaks Sr. Ctr. (103) Valley Storefront (103) Sunlight Senior Center (103) International Institute (104) International Institute MPC (104) Boyle Heights Senior Center (104) Costello Senior Center ( 104) El Sereno Senior Center( 1 04) Glassell Park Community/Senior Center (104) Highland Park Senior Center (104) Lincoln Heights Senior Center (104) Monecito Heights Senior Center (104) Yosemite Senior Center (104) Wilmington Jaycees (105) Anderson Memorial Center (105) Am Vets Hall (105) Wilmington Senior Center ( 1 05) Normandale Reo. Center (105) San Pedro Service Center (105) Harbor Towers (105) SFVIC MIDVALLEY (106) Bernardi Senior Center (106) Mid-Valley Senior Center (106) Casa Panorama (106) Simpson Apartments ( 1 06) SFVIC N. VALLEY (107) Sunland Senior Center (107) Alicia Broadus Duncan MPC (107) Olive Manor ( 1 07) Nikkei Village (107) ASSISTANCE LEAGUE (108) Atwater Park Baptist Church (108) Las Palmas Senior Center (108) Braille Institute (108) Lithunian Cultural Center (108) Triangle Square (108) Assistance League of So. Cal. (108) Chevy Chase Recreation Center (108) Griffith Park (108) SITE ADDRESS 429 E. 42" Place, L.A., CA E. Third Street, L.A., CA S. Burlington Avenue, L.A., CA S. Compton Avenue., L.A., CA S. Central Avenue., L.A., CA S. Hope Street, L.A., CA S. Hill Street Los Angeles, CA W. 8'" Street Los Angeles, CA N. Broadway Los Angeles, CA S. Carondelet Street LA, CA W. 3" Street LA, CA West 8'" Street LA, CA Hesby St., No. Hollywood, CA Van Nuys Bl., Sherman Oaks, CA Victory Bl., No. Hollywood, CA Tujunga Av., No. Hollywood, CA S. Boyle Ave., Los Angeles, CA East 3" Street, Los Angeles, CA E. Olympic Blvd., Los Angeles, CA Klamath St., Los Angeles, CA Verdugo Rd., Los Angeles, CA N. Figueroa St., Los Angeles, CA Workman St., Los Angeles, CA Homer St., Los Angeles, CA Yosemite Drive, Los Angeles, CA South Mesa St. San Pedro, CA West E. Street Wilmington, CA N. Eubank Ave. Wilmington, CA Halldale Ave. Torrance, CA West 3'' Street San Pedro, CA South Mesa St.San Pedro, CA Sylmar Av., Van Nuys, CA Kester Av., Panorama City, CA Osborne, Panorama City, CA Simpson Av., No. Hollywood, CA Fenwick, Sunland, CA Glenoaks, Bl., Pacoima, CA BromontAve., Sylmar, CA Laurel Canyon, Pacoima, CA Perlita Ave. LA CA North Las Palmas Ave., LA CA North Vermont Ave., LA CA Glendale Blvd., LA CA lvar Ave., LA CA North St. Andrews Place, LA CA Chevy Chase, LA CA Riverside Dr., LA CA Attachment #1 DAILY BUDGETED ~

5 Rec & Parks- NW VALLEY. (109) Robert M. Wilkinson MPC (109) St. John Baptist Church (109) Community Integrated Services (109) St. Stephen Church (109) WLCAC -South Central (110) Bernice Watkins Center (110) Estelle Van Meter (110) Watts Senior Center (110) Wadsworth Place Sr. Apts. (110) P & P Housing (110) O.N.E.generation (111) Owensmouth Gardens ( 111) ONEgeneration Senior Enrichment Center ( 111) Canoga Park Senior Center (111) Reseda East (111) Mark Taper lntergenerational Center ( 111) People Coordinated Services (PCS) (112) Baldwin Villa ( 112) St. Mark's United Methodist Church (112) Jim Gilliam Senior Center (112) People Coordinated Services MPC (112) Venice Japanese Center (112) Westchester Senior Center (112) PCS- West Adams (113) George & Helen Thomas Center (113) West Adams MPC (113) Independent Square (113) Seinan Recreation Center (113) Ward Villa (113) Jewish Family Services (114) Claude Pepper Senior Center (114) Gardner/W. Wilshire Rec. Center (114) Westside Jewish Comm. Ctr. (114) Hirsch Family Cafe (114) Pica-Wooster Apartments (114) Fairfax Senior Center (114) Rec & Parks- WESTSIDE (115) Felicia Mahood Senior Center (115) West Los Angeles Japanese Center (115) OPICA Adult Day Care Center (115) Oakwood Rec. Center ( 115) Penmar Rec. Center ( 115) Israel Levin Senior Center (115) Stoner Rec. Center (115) Westminster Senior Center (115) Single Room Occupancy (8) James Wood Community Center (8) Ellis Hotel (8) CITYWIDE TOTAL 8956 Vanalden Ave. Northridge, CA HayvenhurstAve., Granada Hills CA Balboa Bl. Granada Hills, CA Devonshire Blvd., Chatsworth, CA S. Central Avenue, L.A., CA E. 76th Street, L.A., CA E. Century Blvd., L.A., CA W. 1'" Street, L.A., CA W h Street, L.A., CA Owensmouth Ave. Woodland Hills, CA Victory Blvd., Reseda, CA Jordan Ave., Canoga Park, CA Ingomar St., Reseda, CA Victory Blvd., Van Nuys, CA Marlton Avenue, Los Angeles, CA S. Gramercy Place, Los Angeles, CA S. La Brea Ave., Los Angeles, CA S. Crenshaw Blvd., Los Angeles, CA Braddock Drive, Los Angeles, CA Lincoln Blvd., Los Angeles, CA West Washington Blvd., LA CA West Blvd., LA CA South St. Andrews Place, LA CA W. Jefferson Blvd., LA CA West Adams Blvd., LA CA S. La Cienega Blvd., LA CA S. Gardner Street, LA CA West Olympic Blvd. LA CA N. Fairfax Ave., LA CA S. Wooster Street, LA CA Melrose Ave, LA CA Santa Monica Bl., LA CA Corinth Los Angeles, CA Missouri Ave. Los Angeles, CA California Ave. Venice, CA Lake Street Venice, CA Ocean Front Walk Venice, CA Stoner Ave. Los Angeles, CA Pacific Ave. Venice, CA East Fifth Street, Los Angeles, CA E 6th Street, Los Angeles, CA Attachment # ,501

6 Attachment #2 ESTIMATED PROGRAM CLOSURES FOR SENIOR SERVICES AND DINING CENTERS (EXCLUDES HOME DELIVERED MEALS PROGRAM) Estimated closure by end of September (needs 4 months) Wilmington Jaycees Foundation: Will close programs after thirty days of nonpayment. Wilmington MPC Mr. Gary L. Kern, Exec. Director Wilmington Jaycees Foundation Inc North Eubank Ave. Wilmington, CA Estimated closure by end of October (needs 2 months) International Institute of los Angeles: Will use reserves through October. International Institute of Los Angeles MPC Ms. Vicky Gutierrez, Director of Senior Services Division/MPC Director International Institute of Los Angeles 435 South Boyle Avenue Los Angeles, CA ONEgeneration: Will use reserves through October. ONEgeneration MPC ONEgeneration Victory Boulevard Reseda, CA St. Barnabas: Will use reserves and seek line of credit to cover programs through October and perhaps mid-november. St. Barnabas MPC Mr. Rigo Saborio, Executive Director St. Barnabas Senior Services 675 South Carondelet Street Los Angeles, CA Single Room Occupancy, Inc: Will seek temporarily funding through October. James Wood Single Room Occupancy 354 South Spring Street, Suite 400 Los Angeles, CA 90013

7 Watts Labor Community Action Committee: Will use reserves and seek line of credit to cover programs through October. Bradley MPC Watts Labor Community Action Committee S. Central Avenue Los Angeles, CA Theresa Lindsay MPC Watts Labor Community Action Committee 429 E. 42nd Place Los Angeles, CA Estimated closure by end of December Assistance League of Southern California: Will use reserves to cover through December. Hollywood MPC Ms. Barbara Linski, Executive Director Assistance League of Southern California North St. Andrews Place Los Angeles, CA As of the date of this report. the status of the following agencies do not include a definitive closure date (needs 2 months): Jewish Family Services of Los Angeles: Will seek line of credit. Freda Mohr MPC Jewish Family Services of Los Angeles 3 N. Fairfax Avenue Los Angeles, CA People Coordinated Services (PCS): Will cover September, and go forward on a month-to-month basis if their Board authorizes at each monthly meeting. PCSMPC People Coordinated Services 5133 S. Crenshaw Blvd. Los Angeles, CA West Adams MPC People Coordinated Services 28 West Boulevard Los Angeles, CA 90016

8 San Fernando Valley Interfaith Council: Secured other funds to provide services on a month-to-month basis. Alicia Broadus Duncan MPC San Fernando Valley Interfaith Council 110 Glenoaks Boulevard Pacoima, CA Bernardi MPC San Fernando Valley Interfaith Council 6514 Sylmar Avenue Van Nuys, CA East Valley MPC San Fernando Valley Interfaith Council 5000 Colfax Avenue North Hollywood, CA 91601

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