Clay County cuts funding for home repair programs: ‘We can’t play political favorites’

The Clay County Commission recently cut off one stream of funding for several local nonprofits, which had previously been included in the county budget, citing property tax cuts as the reason.

A handful of nonprofits were affected by the ordinance, including Northland Neighborhood Inc. and Rebuilding Together Kansas City, which both provide free home repairs for low-income families, seniors and veterans. Northland Health Care Access and the University of Missouri Extension Service will also face cuts in county funding because of the decision.

The move will save Clay County about $300,000 — around the same amount it has cut in taxes in the past year.

“I think they’re all great organizations. They do great work,” said Jay Johnson, Eastern commissioner, who championed the tax cuts.

Earlier this month, the commission lowered its property tax levy after its annual budget review. To make up for that, Johnson pointed to a portion of the county’s general fund that went directly to several nonprofits under the line item “appropriations to outside agencies,” calling it a “slush fund” for those organizations.

Those same organizations also receive funding from other property and sales taxes in the county through avenues like the Senior Citizens’ Services Fund.

Johnson said it was unfair that the same select few nonprofits receive additional taxpayer funding every year when the county has over 140 nonprofits.

“We can’t play political favorites,” he said. “I don’t think (the commission) should be making those decisions.”

Instead, Johnson said the appropriate way for nonprofits to access taxpayer money from the county is through review boards run by community members appointed by the commission.

These appointed boards — such as for the Children’s Services Fund, the Senior Citizens’ Services Fund and the Developmental Disabilities Resources Board — manage the county’s money for specific causes and vet nonprofits through an application process.

He said nonprofits affected by the county’s cut should look into applying for private funding to make up the difference.

Jason Withington, the Western commissioner at-large, said he’s been curious specifically about Northland Neighborhoods, Inc. and how it uses its funds since before he was elected earlier last year. Prior to running for office, Withington spearheaded a years-long, resident-led campaign questioning the county’s management, which prompted a state audit that started in 2018 and resulted in a scathing 2022 report detailing a litany of financial abuses in Clay County. The residents also pushed to restructure the county government in 2020, expanding the commission from three to seven members.

While serving as president of the Ravenwood-Summerset Neighborhood Association, Withington said he requested funds from NNI for a playground but was denied. The nonprofit responded by saying they do not support individual neighborhoods, Withington said, which he thought contrasted with what the organization advertised on social media.

Since then, Withington has had questions about how NNI uses its resources.

Northland Neighborhoods, Inc. is a community development corporation “dedicated to neighborhood improvement and revitalization.” Last year, 89% of the organization’s revenue came from government grants. The vast majority of its spending went toward contracts for minor home repairs.

When describing a county contract for an organization with the same mission for the same annual amount that NNI got, the 2022 state audit said, “County personnel did not obtain sufficient documentation to ensure that a not-for-profit organization used county funds in accordance with contract terms.”

In the almost 10 years that Clay County has funded NNI through its general fund, Withington said he could only recall two presentations from the organization. He said neither of them answered his questions about how spends every dollar it gets from the county.

Deb Hermann, the executive director of NNI, said the organization is disappointed to lose the $75,000 it has been getting from the county’s general fund annually to help seniors in the Northland, but she said they will make do.

“We will do as they’ve told us: We need to raise the money from private entities,” Hermann said.

Scott Hickox, the executive director of Rebuilding Together KC, attended the County Commission meeting to give a report and thank the commission for its funding over the past few years. However, he did not know his organization’s funding was at risk.

In his report, he shared that the nonprofit has helped 76 Clay County families achieve over $400,000 in home improvements within the last year. Rebuilding Together KC used $52,000 from Clay County‘s general fund to help the families, according to Hickox.

“We’ll feel it,” he said. But his job is to look for additional funding. “We’re wanting to serve more folks in need already, so we would be doing that anyway. Now we just have to fill a gap here to sort of make up for that.”

The county also previously cut its funding for the Economic Development Council, a nonprofit that aims to connect business owners to local and state stakeholders and residents in Clay County.

This story was originally published October 22, 2024 at 6:00 AM.