Local nonprofit agencies that receive city and county funding are bracing for another tough fiscal year as city leaders pare spending requests to match reduced revenue.
The present city budget reduced the amount of money given to several agencies jointly funded by the city and Hamilton County. More cuts in the fiscal year that starts July 1 could hurt the agencies' abilities to provide services, one executive director said.
"It's hard to run a membership-associated association of 500 businesses with two people," said Sherrie Gilchrest, executive director of the Tennessee Multicultural Chamber of Commerce, which lost $75,000, or half its city funding, this year.
As the process begins to formalize next year's budget, it's not clear whether these agencies will receive more, the same amount or less city money, officials said.
Dan Bowers, president of Allied Arts of Greater Chattanooga, said any budget that does not restore funding would hurt.
His organization divvies out money to 14 agencies across Chattanooga, including the Chattanooga Theatre Centre, the Hunter Museum of American Art, Chattanooga Boys and Girls Club and the Chattanooga Symphony & Opera.
"We end up giving less money to the organizations," he said.
City leaders are contemplating three budget scenarios: a $197 million budget that fully restores all services and needs, a $172 million budget that maintains this year's level of spending and a budget that cuts spending by 5 percent overall.
Mayor Ron Littlefield, who has suggested a property tax hike might be needed, is expected to present his proposed budget to the council May 18.
Richard Beeland, the mayor's spokesman, said the $197 million budget would mean more money for area agencies.
However, the mayor's proposed budget likely will not restore fully all department and agency requests, he added.
Councilman Peter Murphy said that, when evaluating needs of jointly funded agencies, the council should favor those that primarily serve the city rather than the larger region.
Mr. Murphy said he will not support restoring funding to agencies that weren't funded this year and cutting others that previously were fully funded.
"I don't think we can look at it as, 'They got whacked this year, now it's their turn to get whacked,'" he said.
Dawn Weber, executive director of Senior Neighbors, said her organization requested the same amount as last year, even though that was 25 percent less than in past years.
"We didn't think we could get it all restored," she said. "It was a peace offering."
With less money, the organization had to cut one job and some programming this year, she said.
The United Way also reduced its spending to Senior Neighbors, she said, so any less money would mean further cuts to staffing or having some people shift to part-time status.
FEELING THE PINCH
Several agencies that receive money from Chattanooga and Hamilton County had their city funding cut last year. Those losses included:
* Allied Arts of Chattanooga: 25 percent cut, received $191,000 from city
* Tennessee Multicultural Chamber of Commerce: 50 percent cut, received $75,000
* Senior Neighbors: 25 percent cut, received $22,000
* Bessie Smith Cultural Center: 8.6 percent cut, received $64,000
Source: Chattanooga