Will the Money Come in Time?

By: Jessica Aspiras Email
By: Jessica Aspiras Email

"Summertime has always been a slow time. Turnaround on checks have been slow, notoriously in July."

What scares Eve Inc. executive director, Susan Shoultz, is the added 45 day moratorium on grants that Governor Granholm issued in early April -- to help with the budget deficit.

"That was our concern when we began this. Is it really going to be 45 days, was it going to be longer than 45 days."

Eve Inc. is a non-profit organization that helps victims of domestic violence. It has a total of three state-funded grants. The one from the Department of Community Health was given an exemption from the moratorium. But the other two grants, from the Department of Human Services, are not exempt.

"Basically it would fall back to our donations if they're not there. Then we have to exercise the line of credit that we've taken out."

Shoultz bills DHS at the beginning of each month for the previous month's expenses. Before the moratorium was set, Shoultz says reimbursement checks would come in in about three to four weeks. Now the wait is at least 45 days. As a back up, Shoultz increased the organization's credit line by three-fold just in case it had to draw money from that.

"That is not a situation we want to encounter, because that means we're incurring debt for something we shouldn't have to incurr debt for."

News 10 spoke with Maureen Sorbet of the Department of Human Services. She said if there is a delay, it should only be on the arrival of the first check. As long as non-profits bill consistently every month, the money should arrive within the 45 day moratorium.

"Hopefully what they've said would be true, that it'll be a one time occurrence, and we'll have the money on a regular basis. But until that happens I think we have a right to be skeptical."

The moratorium is scheduled to last until the end of the fiscal year -- September 30th.

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