The Social Development Commission is dealing with delays in a federal review of its community action status, foreclosure on its North Avenue buildings and more. (Photo by Jonathan Aguilar / Milwaukee Neighborhood News Service / CatchLight Local)
By Meredith Melland
This story was originally published by Milwaukee Neighborhood News Service, where you can find other stories reporting on fifteen city neighborhoods in Milwaukee. Visit milwaukeenns.org.
The Social Development Commission is still waiting to hear from the federal government regarding its community action status.
In May, the Wisconsin Department of Children and Families planned to rescind SDC’s status as a community action agency, which would have taken away the agency’s eligibility to receive certain federal block grants that support anti-poverty work.
However, SDC requested a review of the state’s decision process from the Office of Community Services within the U.S. Department of Health and Human Services in June, pausing the de-designation.
The office informed the Department of Children and Families that a final decision would likely be reached mid-November, but that was before the federal government shutdown began on Oct. 1, according to Gina Paige, communications director for the department.
Block grant funds return to federal level
The federal government recouped $1.18 million in unspent block grant funds that had been allocated to Milwaukee County for the 2024 fiscal year, according to the Department of Children and Families and first reported by the Milwaukee Journal Sentinel.
The Department of Children and Families requested a liquidation extension, but the Trump administration told the department in late September that it could not be granted, according to Paige.
“For reallocation to be possible, and an extension to be granted, the de-designation process would have had to be complete,” Paige said.
The department expected the funding to expire after Sept. 30, although SDC has disputed this timeline. SDC continues to seek block grant reimbursements from the department to pay past employees who are owed wages and other benefits.
State Sen. LaTonya Johnson, who represents the Sixth Senate District and is one of three state lawmakers who asked SDC to voluntarily de-designate earlier this year, said in a statement that Milwaukee’s families cannot afford to lose this funding.
“The SDC owes this community answers and accountability for letting vital resources go to waste,” she said.
Jorge Franco, the interim CEO and board chair of SDC, said in a previous interview that no other structure has the capacity to operate anti-poverty services at the level SDC delivered. He said the state is failing to provide federally mandated programs needed in Milwaukee County.
“My concern is for the children and the families who aren’t getting the services that are mandated to be delivered,” he said.
Interim provider updates
The Department of Children and Families still has $2.1 million in block grant funding for 2025 that was intended for SDC.
The department said in August it was prepared to move forward with an interim provider to use the remaining funding for anti-poverty services in Milwaukee County if the federal review upholds the state’s decision.
Representatives of seven of the state’s community action agencies said they did not apply to be an interim provider in Milwaukee County, including Racine and Kenosha Community Action Agency, Newcap, Couleecap, Southwestern Wisconsin Community Action Program, Lakeshore CAP, West CAP and Central Wisconsin Community Action Council, Inc.
UMOS applied but had not received any notification as of early October from the state about selecting an agency, according to Andy Tarnoff, director of communications for UMOS.
COA invoice
COA Youth & Family Centers is still seeking about $153,900 in reimbursements from SDC related to the Workforce Innovation Grant.
Amy Rowell, COA’s executive director, attended the SDC board’s July and September meetings. During public comments, she asked for an update on the invoice, which she said her organization has followed up on multiple times.
“That partnership agreement with SDC is what allowed us to do pretty significant continuing education work for our early education teachers,” Rowell said.
After both meetings, SDC requested some additional documentation about the invoice, which COA provided, according to Rowell.
She said trying to communicate and get next steps from SDC’s leadership has been confusing, like when she talked to three different people from the agency after the September meeting.
Since then, she said she has not received any updates.
“I’ll continue to show up at the meetings until someone says, in writing or publicly, this is not happening,” Rowell said.
In the meantime, SDC has had other challenges to deal with. Its voluntary legal counsel resigned, a board member called for a vote on removing the interim CEO and board chair; and the North Avenue buildings entered foreclosure in recent weeks.
The next board meeting is scheduled for 5:30 p.m. on Thursday, Oct. 30.
Jonathan Aguilar is a visual journalist at Milwaukee Neighborhood News Service who is supported through a partnership between CatchLight Local and Report for America.
Meredith Melland is the neighborhoods reporter for the Milwaukee Neighborhood News Service and a corps member of Report for America, a national service program that places journalists in local newsrooms to report on under-covered issues and communities. Report for America plays no role in editorial decisions in the NNS newsroom.