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. * * * * * *