Latest news with #SocialDevelopmentCommission
Yahoo
24-05-2025
- Business
- Yahoo
State sues SDC, claiming the anti-poverty agency has not paid nearly $360K in wages, benefits
The state Department of Workforce Development is suing the Social Development Commission, claiming the anti-poverty organization has failed to pay its employees nearly $360,000 in wages and benefits. The civil lawsuit filed May 23 in Milwaukee County Circuit Court seeks twice that amount, the second half "as penalty for the defendant's wrongful withholding of the wages," according to a five-page complaint. The agency's attorney, William Sulton, told the Journal Sentinel that SDC was aware of the outstanding payments owned to employees, but did not believe the $359,609 figure was correct. He also accused the Wisconsin Department of Children and Families of refusing to provide the reimbursement SDC needs to pay its employees. "We think that's wrong and beyond unfortunate, but that is the reason why employees have not been paid," he said. Sulton said he would be filing a third-party complaint against the Department of Children and Families "asking them to make the payments they committed to." The lawsuit is the latest blow to the anti-poverty agency, which once had a $30 million operating budget to support dozens of programs. The lawsuit was first reported by Milwaukee Neighborhood News Service. SDC has been under scrutiny since its misallocation of more than $100,000 in state funds surfaced last year. The agency abruptly shut down in April 2024 but reopened in December to offer four programs. In early May, the Department of Children and Families announced it was terminating the organization's status as a community action agency, the Journal Sentinel reported. Without the designation, the agency will lose access to millions of federal Community Services Block Grant funds, effective July 3. Gina Castro of the Journal Sentinel staff contributed to this story. Alison Dirr can be reached at adirr@ This article originally appeared on Milwaukee Journal Sentinel: State files lawsuit accusing SDC of failing to pay wages and benefits
Yahoo
04-04-2025
- Politics
- Yahoo
'This agency deserves to be forgiven': Ex-employees, community members advocate for SDC at hearing
After a hearing Friday, the Social Development Commission's future as a community action agency remains uncertain, but the anti-poverty agency still has the support of community members and former employees. The Wisconsin Department of Children and Families held a public meeting Friday afternoon to determine if it should end SDC's designation as a community action agency, which makes it eligible for millions in federal funds. Jeff Pertl, the state department secretary, will make a final decision in the coming weeks after reviewing additional documents from SDC and comments from the public, he told the Milwaukee Journal Sentinel. He said it was clear that SDC was supported by employees and community members and that programming needs to return as soon as possible. "What I care about is turning back on services," Pertl said. All 10 community members at the hearing advocated for SDC to keep its status as a community action agency. Antonio Butts, the executive director of Walnut Way Conservation Corp, one of SDC's community partners, said SDC losing this designation would "destabilize the entire safety net of the community." He urged the Wisconsin Department of Children and Families to give the community more time to voice its support for SDC. "The public just hasn't had this opportunity to speak up," Butts said. "There are thousands of people who will want to know about this today." Former employees shared stories of how the agency's many programs benefited the community. Lasonda Buck, a former housing division manager at SDC, said her department disbursed over $90 million in rental assistance, taught people how to budget and helped homeowners keep up with their mortgages. "Because of a mistake, you would take that away from a community?" Buck said. "Who else would run it better than SDC? I don't believe there's an agency that could do it." SDC closed its doors and halted services last April. It opened again last December, but the Wisconsin Department of Children and Families says SDC hasn't resumed the services it is responsible for providing as a community action agency. As a result, the department said SDC is out of compliance with state and federal law and its contract. The department also alleges SDC has continually given state officials inaccurate information about its financial health. SDC is the only community action agency in Milwaukee County. This designation makes the agency eligible for the federal Community Services Block Grant, which provides funding to hundreds of local agencies around the country to reduce poverty. William Sulton, SDC's attorney, was skeptical about the state agency's ability to find another organization to fill SDC's shoes. "SDC is truly the city and county's best chance at dealing with poverty," Sulton said. Nearly a year after the anti-poverty agency shut its doors, Thomas Hines, a former manager for youth and family services at SDC, says he still gets calls from parents. He says some of the children who received mental health and substance abuse services from SDC are now incarcerated. "We have to somehow salvage this organization," Hines said. SDC board members, including Jorge Franco, Dessie Levy and Walter Lanier, defended SDC at the hearing. Levy, who was introduced as SDC's newest commissioner during an emergency board meeting Thursday night, grew up using SDC's services, she said at the hearing. Her family used SDC's free tax preparation services, and the agency once filled a hole in her family's roof, she said. "SDC's services are extremely valuable," said Levy. "This agency deserves to be forgiven." Lanier also stood by SDC on Friday. He declared there had been "no scandal at SDC," just "mismanagement." He added that SDC's now seven-member board is "a sufficient size" and echoed Levy's calls for forgiveness. "One of the challenges, particularly for Black organizations in Milwaukee and across the country, is where the majority of organizations are given second and third chances, even where there has been scandal," Lanier said. "I'm encouraging you to allow us to move forward." Franco, who is the chief executive of both SDC and the Hispanic Chamber of Commerce of Wisconsin, shared a statement from the chamber's board of directors encouraging the state agency and SDC to work out their issues. "We urge DCF to do what is right in immediately re-establishing antipoverty services to Milwaukee County through SDC and its infrastructure while the details of SDC's recent woes are worked out with you," the chamber's letter read. "We also urge SDC to do whatever is necessary to immediately establish these federal mandated antipoverty services now." Sulton, SDC's attorney, has said that losing the grant won't be the end of SDC, which had a $30.5 million operating budget last year. The public can still share comments with the state Department of Children and Families by emailing The Wisconsin Department of Children and Families raised more questions about SDC's financial standing in a letter on Wednesday. According to the letter, SDC has not provided sufficient documentation to support expenses that it is asking the state department to reimburse. The department says it came across more than $3.8 million in "outstanding payments," according to a note in SDC's March 2024 bank reconciliation. "It is unclear to DCF as to what portion, if any, was reimbursed previously by DCF," the letter says. "DCF is concerned about this unresolved issue which could result in SDC needing to repay DCF for previously reimbursed amounts that were never received by the intended recipients." The letter confirms that SDC has provided "various financial files" to DCF since December 2024, including employee timesheet reports, monthly bank statements and vendor invoices, according to the April 2 letter. However, the state department says it still hasn't been able to "entirely identify" records that substantiate expenses SDC reported in contracts with the department. This isn't the only trouble SDC is facing. The agency is also at risk of losing its main office at 1730 North Ave., a warehouse at 1810 North Ave. and several parking lots to foreclosure due to unpaid mortgages. SD Properties Inc., the real estate arm of SDC, is facing a $2.98 million foreclosure lawsuit. Forward Community Investments is suing SD Properties for $2.3 million for a 2020 construction mortgage and about $679,000 for a 2023 mortgage, according to the complaint. This article originally appeared on Milwaukee Journal Sentinel: Ex-employees advocate for Milwaukee's Social Development Commission
Yahoo
02-04-2025
- Politics
- Yahoo
SDC could lose millions in federal funding. What to know about its upcoming hearing
Just months after reopening, the Social Development Commission is at risk of losing its status as a community action agency, putting millions in federal funding on the line. The Wisconsin Department of Children and Families will decide whether to terminate the anti-poverty agency's status after a public hearing this week. Here's what to know. The hearing is on Friday, April 4, from 11:30 a.m. to 1 p.m. on the first floor of the Milwaukee State Office Building at 819 N. 6th Street in conference rooms 40 and 45. The purpose of the hearing is for the Wisconsin Department of Children and Families to determine if it should end SDC's designation as a community action agency. Without this designation, SDC is ineligible for the federal Community Services Block Grant, which provides funding to hundreds of local agencies around the country to reduce poverty. SDC is the only agency in Milwaukee County with this designation. SDC suddenly suspended operations last April after financial difficulties. Despite reopening partially in December, the agency has not provided any meaningful Community Services Block Grant programming since its initial closure, according to the Wisconsin Department of Children and Families. As a result, the department said SDC is out of compliance with state and federal law and its contract. The department also alleges SDC has continually given state officials inaccurate information about its financial health. SDC officials said they were blindsided by the department's decision and have been transparent and communicative with the state about SDC's finances. Yes. First, the Wisconsin Department of Children and Families will explain the reasons it wants to terminate SDC's status. Then, community members will have the opportunity to sign up to share comments at the hearing. People can also email written comments to the state department at The deadline to send written comments is April 3. The Wisconsin Department of Children and Families will share its final decision after the meeting in a formal letter. The department has not set a date for issuing its decision. No. The agency's attorney, William Sulton, said that losing the grant won't be the end of SDC, which had a $30.5 million operating budget last year. SDC was created by state statute in 1963 as a "community relations-social development commission," charged with studying, analyzing and recommending solutions to poverty. The Wisconsin Department of Children and Families will work with Milwaukee County officials and other local partners to identify nearby agencies eligible for the Community Services Block Grant that can provide services to county residents, said department spokesperson Gina Paige. If those agencies decline, the state department will solicit applications from other organizations. Applicants would have to meet Community Services Block Grant requirements and gain the approval of Wisconsin Department of Children and Families, the county and city, Paige said. This article originally appeared on Milwaukee Journal Sentinel: SDC could lose millions in federal funds to fight poverty in Milwaukee
Yahoo
21-03-2025
- Business
- Yahoo
State moves to cut SDC from federal anti-poverty program, citing 'serious deficiencies'
Three months after reopening, the Social Development Commission is once again under fire. A stern letter from the Wisconsin Department of Children and Families released on Friday says SDC has continually given the department inaccurate information about its financial health and hasn't been compliant with state and federal requirements since the agency closed its doors in April last year. As a result, the department is declining to fund SDC in 2025 and aims to remove its designation as a 'community action agency," which will destroy the organization's ability to receive federal Community Services Block Grant money in the future. "It is clear to DCF that, despite the efforts of many, SDC is currently unable to perform its duties" as a community action agency, says the letter from Connie Chesnik, an administrator with the department. "DCF did not arrive at this decision easily," the letter continues. "It is with heavy hearts that DCF takes the necessary steps required by law to ensure that (Community Services Block Grant) services are provided to Milwaukee County residents." Community action agencies, which are defined by federal and state law, were created decades ago to address poverty. As the only designated community action agency for Milwaukee County, SDC oversees millions of federal tax dollars meant to assist low-income residents. Some of SDC's key programs include income tax assistance, career services, child care and housing assistance. The agency's attorney, William Sulton, said Friday that the agency disagrees with "a lot" of what is said in the letter. Losing the grant won't be the end of SDC, which had a $30.5 million operating budget last year, he said. "It's not fatal, but is it disappointing? Yeah," Sulton said. "I think it's the wrong decision." In the letter, the Department of Children and Families said it has been unable to verify the overall financial health of SDC despite nearly a year of working closely with the organization. According to the department, SDC's reports have serious deficiencies and include unverifiable information about its funding and staffing levels. For example, SDC reported it anticipated funding from external partners that the department later verified had neither been requested nor committed for 2025, the letter said. The organization also reported it had 28 staff members but failed to show documentation to back that up, according to the department. More: SDC's interim CEO Jorge Franco says he can get the anti-poverty agency back on track. Here's how. In addition, SDC hasn't provided a "realistic plan" to resume services in Milwaukee County, the letter says. Despite providing "extensive" technical assistance to SDC, the department said the organization was unable to show "any meaningful return" of Community Services Block Grant programing since reopening in December. The organization's quality improvement plan was out of compliance in all nine categories, the letter adds. In addition, SDC has not yet submitted its 2023 audit report that was due last September. As a result, the department has been 'unable to verify the overall financial health of the organization, including a comprehensive picture of income, assets, debts, and/or liens,' the letter said. SDC is also operating with fewer than half of the required number of board members, according to the Department of Children and Families. State statute requires at least 15 members. The board must include a mix of people from the public sector, private sector and low-income community, according to state and federal law. The letter says SDC failed to prioritize finding board members to represent low-income residents. More: 'We're not prepared': SDC's sudden closure leaves people scrambling for alternatives According to the Milwaukee Neighborhood News Service, the Department of Children and Families originally planned to allocate about $2.2 million in block grant funding to SDC in 2025. Sulton, SDC's attorney, previously told the Journal Sentinel that the Department of Children and Families was the only state agency that confirmed it would give SDC funding. At the time, SDC had planned to use the Community Services Block Grant money from fiscal year 2024 to pay the majority of the outstanding wages and paid time off benefits it owed its employees. Without that money, it is unclear how SDC will pay back what it owes to former staff. A public hearing will be held on April 4 at 11:30 a.m. at the Milwaukee State Office Building to consider the agency's future as a community action agency. The department will share its final decision in a letter after the hearing. Sulton encouraged community members to come out and advocate for SDC. "This is an opportunity for the public to tell the state what they think about SDC not being a community action agency," Sulton said. This article originally appeared on Milwaukee Journal Sentinel: Milwaukee anti-poverty agency SDC rebuked for 'serious deficiencies'
Yahoo
05-02-2025
- General
- Yahoo
Public Investigator reporter Gina Castro chases readers' tips, wherever they lead
Gina Castro is one of the Milwaukee Journal Sentinel's newest reporters, but her work has already made its mark on the city. As a Public Investigator reporter on the watchdog team, her job is to investigate readers' tips and find answers to their questions. She's relentlessly covered the fallout of the closure of the Social Development Commission, found answers for tenants clashing with landlords over evictions and air conditioning, and helped save a south side youth homeless shelter from near-certain closure. She's also brought fresh angles and perspectives to the Journal Sentinel's coverage of the Latino community, from the ongoing discussions about how people choose to identify to the lack of historical landmarks commemorating Latino settlement in the Wisconsin. Get to know more about Gina Castro here: Reporting was my ticket out of the service industry. I was quite fed up with working late hours and weekends waiting tables, but I didn't know where else I could work while working on my English literature degree. Sometime during my junior year, a professor forwarded a job posting to the entire class. It was for a part-time general assignment reporter position at a small newspaper in Alabama. I hadn't dabbled in journalism much, but the gig paid a little more than my two restaurant jobs. So, I applied. I figured this experience would inch me closer to my dream of being a science fiction author. Instead, I fell in love with journalism. I added it as my second major. I still haven't given up on fiction writing though. I've never taken a Latino history class. My high school and undergraduate school didn't offer it. Whatever I knew about Puerto Rican history came from stories my mom told me. Sometime in college, I started to feel hungry for my own history. A friend from poetry club told me about Miguel Piñero, a Nuyorican poet. I remember that night diving into his poetry, like "Seekin' the Cause." In between Piñero's words, I saw glimpses of my family's story of leaving Puerto Rico for Brooklyn and the challenges they met there. Then it just became a passion of mine. I wanted to know what growing up in Puerto Rico was like, so I read Esmeralda Santiago's memoir "When I Was Puerto Rican." I wanted to better understand the U.S. policies that affected Santiago's family, so I read the "War Against All Puerto Ricans: Revolution and Terror in America's Colony" by Nelson Denis. I think it's important to know the past to understand the present. History is a crucial foundation that I rely on to report on issues impacting the Latino community. I start with going where they are. And then I just listen. The first investigation I reported stemmed from conversations I had at Voces de La Frontera's annual assembly last winter. I chatted with William Horlick High School students who were organizing to reinstate cash payment for after-school events. Some students said they were missing out on football games and school dances because they didn't have access to bank accounts. At the time, it was my first month in Wisconsin. I didn't even know where Racine was. I don't think I would have ever heard their story if I hadn't gone to the assembly. I used the same approach for reporting on the homeless encampments at Guest House and the closure of the park-and-ride lots this past summer. For those stories, it's important to call Guest House, the Milwaukee County Housing Division and the Wisconsin Department of Transportation for their perspective. But it's equally important, if not more, for me to see the encampments myself and hear from the people living there. As a Public Investigator, I'm always hopping from topic to topic. One day, I'm following a tip about contractor theft. The next day, I'm tracking down the owner of a truck that dumped debris in the Borchert Field neighborhood. Then there are the days I'm answering readers' questions, like whether Milwaukee is a sanctuary city or not. It's exciting to dive into something new each day. In the future, I'd like to report on more housing stories. I was flabbergasted when I registered my car at the DMV and learned Wisconsin charges a $75 annual fee for hybrid electric vehicles. I had no idea there were states that would penalize me for wanting to use less gas. On the bright side, I'm mind blown by the cream puffs. I had never heard of such a thing until I randomly picked one up at Mid-Way Bakery. Now, I look for cream puffs at every bakery I see. I think Wisconsin should brag about them more. This article originally appeared on Milwaukee Journal Sentinel: Q&A: Get to know Milwaukee Journal Sentinel reporter Gina Castro
