SUPPORTS
   ITEM NO. 4
                                           CS&B COMMITTEE AGENDA
                                           MARCH 13, 1997
                             ADMINISTRATIVE REPORT

                                           Date: February 21, 1997
                                           Dept. File No. 
                                           CC File No. 2152-1

   TO:       Standing Committee on City Services and Budgets

   FROM:     Director of Community Services - Social Planning

   SUBJECT:  1997 Community Services Grants Budget


   RECOMMENDATION

        THAT Council approve a 1997 Community Services Grants budget of
        $2,854,000.

   GENERAL MANAGER'S COMMENTS

        The General Manager of Community Services RECOMMENDS approval of
        the foregoing.

   COUNCIL POLICY

   Council established the annual civic grants program in March 1978. 
   Budget ceilings for the Community Services Grants program, as well as
   the Cultural, Childcare and Other grant programs, are established
   annually, prior to the development of recommendations for specific grant
   allocations.

   PURPOSE

   The purpose of this report is to establish a budget ceiling for the 1997
   Community Services Grants program.  Applications for Community Services
   Grants are currently under review, and the total value of recommended
   grants will come within the budget limits established with this report.

   BACKGROUND

   Community Services Grants (CSG) are given by the City to support
   non-profit organizations which are working with each other, the various
   levels of government (including the City) and residents to address
   social problems and to bring about positive social change.  CSG's
   represent an important and necessary tool which helps the City to
   achieve its goal of ensuring that accessible, equitable and appropriate
   social services are available to all residents.

   On September 30, 1993, City Council adopted a set of new and amended
   principles, criteria and priorities for Community Services Grants. 
   These changes resulted in significant differences in the number and
   types of applications received and, ultimately, in the grants approved
   in 1994.  This degree of change did not occur in 1996, and we anticipate
   no significant changes again in 1997.

   The criteria and priorities established in 1993 will continue to be used
   in 1997, with some minor amendments, adopted in 1994 and 1995, that were
   intended to simplify and clarify the grants process. 

   Table 1, below, shows the number and types of applications received over
   the past 4 years.


               Table 1 - Community Services Grants Applications

                               1994       1995       1996       1997

   Total applications:          140        116        100        113
     Total organizations:       122         90         86         89

   Types of applications:
    -Previously funded          102         91         85         87
    -Applied the previous year,
      but not funded              5          7          3          3
    -New applications            33         18         12         23
                         __________ __________ __________ __________

   Total requested:      $5,042,000 $3,992,600 $3,555,400 $3,879,700

   DISCUSSION

   As we continue with our review of grant applications, staff are noticing
   continuing improvements in the services and the manner in which they are
   provided.  In particular, almost all of the applicants are responding
   favourably to the City's direction that they work more closely together
   and that they be more inclusive, both at the internal organizational
   level and in terms of the people they are serving.  This kind of
   influence on the non-profit sector would not be possible without the
   ability to fund the organizations where we want to see changes.

   In a report to City Council on February 4, 1997, which looked at the
   effects of funding changes from other levels of government to the
   non-profit sector, we reported that there is no evidence of massive
   funding cuts, at this time.  The individual budgets submitted with the
   grant applications reflect that, for the most part, no such cuts are
   anticipated for 1997.

   This relatively optimistic view of short-term stability does not carry
   over to the long term.  All levels of government are re-iterating the
   need to cut back on expenses, and there is a sense that this will wind
   up at the doorsteps of the non-profit sector, sooner or later.  Also,
   the reorganization of the health sector and the creation of the new
   Ministry for Children and Families is causing considerable uncertainty
   and concern - both at the funding and service provision levels.

   We also reported that almost a quarter of the grant applicants have had
   or anticipate a reduction in gaming revenues.  These reductions have not
   translated into requests for more City funding, but if the trend
   continues, the groups will have to turn to all their other funders for
   more support, or face the necessity in cutting services.

   The Director of Finance advises that 1997 budget figures are to include
   a 1% adjustment for inflation.  The recommendations for specific grant
   allocations are based on a number of factors, including financial need,
   and may or may not include an inflation adjustment for each particular
   situation.  However, the inclusion of an inflation adjustment on the
   overall budget provides us with the ability to maintain the current real
   value of services base.  Therefore, the recommended 1997 grants budget,
   with the inclusion of an inflation adjustment is $2,854,000.

   CONCLUSION

   The on-going process of changing and updating the Community Services
   Grants program, begun in 1993, makes it more responsive to community
   need and more reflective of the City's and community's priorities.  By
   maintaining a constant overall budget (with an inflation adjustment) we
   can continue to direct funding to emerging high priority programs and
   strengthen existing ones.


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