City Hall: Tight budgets have nonprofits on edge
By SCOTT BROOKS
New Hampshire Union Leader Staff
Monday, Feb. 8, 2010 Share on Facebook
Scott Brooks has been covering Manchester politics since 2007. His
column can be found every week in the New Hampshire Sunday News.
E-mail Scott Brooks at sbrooks@unionleader.com
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Doran runs a local nonprofit agency called the New Hampshire Minority Health Coalition, one of dozens of charitable organizations in the area that look to the city every year for thousands of dollars in grants.
This year, the city is clamming up. Mayor Ted Gatsas has recommended holding back a big chunk of the city's usual contributions to nonprofits, leaving Doran to contemplate a possible $9,000 hole in his budget.
"That's going to hurt us bad," Doran said.
The reasons behind the mayor's recommendation are part financial, part philosophical. Financially, of course, the city isn't as flush as it used to be, which is one reason why Gatsas' predecessor, Mayor Frank Guinta, decided a year ago the city would not be using local tax dollars to prop up area nonprofits.
More than that, though, Gatsas said he does not think it's the city's job to finance nonprofit agencies. It's just not what city homeowners pay taxes for, he said.
"I certainly believe the taxpayers of this community have the opportunity -- if they want to make contributions to nonprofits, they can do that," Gatsas said.
The city does still get buckets of grant money from Concord and Washington, which is one reason why even after Guinta cut off the pipeline supplying nonprofits with city tax dollars, the agencies did not have to go without. The other reason, according to the city's community improvement manager, Sam Maranto, is the city was able to tap into other accounts, like the city arts fund.
For a year, at least, the nonprofits were spared.
What's happened, though, is those other accounts have dried up. And though the supply of state and federal dollars hasn't fallen off, according to Maranto, the mayor has recommended the city keep more of that money for itself, rather than dole it out to nonprofits.
"The mayor's key consideration here was, 'I want to put a budget together that has minimal impact on the tax rate,'" Maranto said.
More than 20 local agencies would receive less money under the mayor's proposal than they did last year. That list includes the American Red Cross, the Boys and Girls Club, Child Health Services and New Hampshire Legal Assistance. A few agencies, such as the New Hampshire Small Business Development Center, would receive no money at all.
Dick Dunfey, who heads the Manchester Housing and Redevelopment Authority, was caught off guard last week when told Gatsas' proposal provides nothing for the agency's after-school tutoring and recreation programs. For years, the city has been supporting the programs with an annual contribution of $60,000.
"I certainly never contemplated going from 60 to zero," Dunfey said. He said the cut would "put the program in jeopardy, no doubt about it."
Doran's agency, the New Hampshire Minority Health Coalition, is slated to get $10,000 this year, compared with $19,000 in each of the past two years. The money helps pay for the agency's team of outreach workers who teach pregnant women -- most of them immigrants and refugees -- how to care for their child.
"Everybody's cutting right now. Cutting us," Doran said. "And the problem I'm having is, every time we think we're adjusting to what's been done, somebody else is cutting us."
Gatsas said he worked on his recommendations with Aldermen At-Large Mike Lopez and Dan O'Neil. None of the numbers will become final until the aldermen vote on them.
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Bowen, the city's Water Works director, had two suggestions for the Task Force on Efficiencies and Consolidations.
Suggestion 1: Eliminate term limits for city commissioners.
Suggestion 2: Eliminate the city's new policy requiring department heads to live in Manchester.
"The residency requirement for Department Heads is not efficient," Bowen wrote in his response to a survey the task force sent out. "It has the potential to discourage highly qualified candidates from applying due to the financial burden particularly in the current housing market."
Aldermen approved the residency requirement last fall, largely at Gatsas' urging. Bowen, for the record, lives in Manchester.
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The mayor was one of a handful of local and state officials who greeted Obama at the airport Tuesday, before the President made his way to Nashua. An Associated Press photographer snapped a photo of the two of them, shaking hands. Gatsas, wearing a beige trench coat, is smiling. The President is blinking.
Gatsas said he "jokingly" told the President he has asked Sen. Jeanne Shaheen "about getting money for some projects in Manchester."
He strained to remember Obama's response. "I think he said, 'Thank you very much,'" Gatsas said. All he remembers after that is the Secret Service grabbing Obama by the arm and leading him away.
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"I was perfectly serious," Sanders said.
Sanders wasn't saying the city should go ahead and put up a "For Sale" sign. Mainly, he said, he was trying to make a point, which was that the current City Hall complex makes it difficult for departments to work together.
Departments that ought to be side by side, he said, are instead far apart. Others aren't even in the building. Information Systems, for instance, is in the basement of the Merrimack Street fire station.
Sanders was serious enough about the idea that he told the Task Force on Efficiencies and Consolidations he believes the complex would generate more than enough money in a sale to cover the cost of a box store.
We checked with City Assessor David Cornell. City Hall, according to his records, is worth $3.3 million. The annex is worth an additional $2.4 million.
"I didn't know you got your real estate license," Alderman At-Large O'Neil told Sanders in the aldermanic chamber Wednesday night. The finance officer smiled bashfully.
"I've got a showing tomorrow," he said.
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Read Scott Brooks' coverage of Manchester City Hall during the week in the New Hampshire Union Leader. E-mail him at sbrooks@unionleader.com.
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Scott Brooks has been covering Manchester politics since 2007. His
column can be found every week in the New Hampshire Sunday News.


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When spending cuts are made, somone's Ox will be gored; the only bone of contention is the ownership of the ox
- Jim_NH, Madbury
One addendum too. The voter in speaking to Davey Crocket said, ...the poorer he is the more he pays in proportion to his means." This was true when taxes where levied evenly. It is no longer true with respect to our Marixist progressive income tax system.
- Michael Layon, Derry
Mike, your wrong. Many times, I've paid more in Federal Income tax than the late Edward Kennedy paid.
I'm just a lowly working person too. They published what he paid, twice I almost paid two times more than him. Don't kid yourself about these kind of people. They say one thing , then do another.
- Steve, Raymond
Nobody can seriously question the good that many charities and not-for-profits do. You can, however, question the efficiency in which those services are delivered. Just like the business world, in tough times not-for-profits need to take a hard look at the cost-benefits of the services they deliver and perhaps own up to the fact that with so many not-for-profits out there, some consolidation might be in order.
- Paul, Bedford
Non-Profits in this community fill the gaps where nobody else wants to fill them. I am not saying they should rely on local government funding. Instead, all the happy do-gooders who want their name llisted in the Santa Fund list every year should donate some of their money to the local non-profits. While it is nice to see the big banks and other corporations donate their tax write offs to the Santa Fund, maybe they could be generous year round and donate to Non-Profits who truly fill the gaps.
I love how the donations dry up right after Christmas. Well, people who need help from non-profits need help all year long, not just Christmas.
- Jeff, Manchester
Well said Steve!
If you want to support a particular non-profit, take out YOUR checkbook, not your neighbors. No one is holding you back from using your money to do with as you wish. Please do not use the government to spend your neighbors money as you wish.
One addendum too. The voter in speaking to Davey Crocket said, ...the poorer he is the more he pays in proportion to his means." This was true when taxes where levied evenly. It is no longer true with respect to our Marixist progressive income tax system.
- Michael Layon, Derry
Well James, that's a poignant zinger you've unleashed, fresh on the heels of your brilliant "Bonneville & Sons" observation earlier. You're an adept individual, and what more can be said - you're the perfect representative of the people I'm talking about. Thank you for making my point.
Yes James, The Red Cross, The Boys and Girls Club - both frivolous and unnecessary drains on our society. Why would we want to subsidize such ignoble ventures. Time to clue in - we need these things.
- Floyd, Manchester
Floyd.....you know the number....give them a call and make a donation. That or keep it shut
- James, manchester
In these economic times Non Profits should not be getting unearned income from public funds all tax revenue should be used strictly for government expenses and services, let the Non-profits get out their and work for their money from the private sector. I personally check to see of a non-profit is getting a government handout if they are I don't give to them any donation, let them spend more time on beg-a-thons
- Richard L. Fortin, Manchester
No one here, including our hapless mayor, really understands how much nonprofits do for the community. It's so easy to say how frivolous these contributions are unless you or know someone who has used their services. When they disappear, you'll be clamoring for government to fill their role, and be asking why they stopped receiving support.
- Floyd, Manchester
I think Bonneville should have more advertisement on this page......THANK YOU for allowing us to read City Hall
- James, manchester
OK. So how much are these Department heads making to come up with the lame ideas they are coming up with for efficiencies? Sounds to me like they aren't really willing to take a hard look at their spending or ways to make the City run more efficienctly - maybe term limits would be better served for Department Heads!
- Amy G, Manchester
Thank you Mayor Gatsas!
- Bill, Manchester
Please give me as the tax payer the opportunity to decide to which non-profits I so choose to support. Taxes are high; this is fact. Cut out the non-profits and give people like me a tax break and opportunity to support the organizations of my choosing. This will force organizations to clean up their own act to compete for charitable donations.
- Randall, Manchester
If the non-profits want to use their money to help parents take care of their children, that is fine, but why is it the government's job to help pay for it. I'll take it one question further: if they are parents, shouldn't they know how to do it themselves? If not, maybe it's time to hold off on having children.
- Melvin, Keene
For too long the non-profits have been in on the gravey train by not paying their fair share of taxes and or a payment in lieu of taxes. But take a look at the salaries these people are taking home. Time to have the Board of Assessors revisit the property values of these non-profits and the amount of taxes they aren't paying.
- Robert J. Pariseau, Cocoa Beach, FL
Indeed, this is the silver lining in the very dark cloud of recession: it gives we the people the chance to prune back the overgrown weed that is our government, to get it back to its essential legitimate missions of public safety and infrastructure, and out of the areas that properly belong to the private sector, including all charity and business development.
Whether or not we the people choose to exercise that option or instead face bankruptcy as a city, state, and nation, we are in the process of finding out. Electing Ted Gatsas was a good start. Replacing John Lynch, Shea-Porter, and Hodes with principled fiscal conservatives this November will continue that positive trend.
- Keith Murphy, Bedford NH
It cannot be said that the money provided to non-profits by the city serves no helpful service. Clearly, some services are desparately needed within the community. No dispute there. The larger problem is the life non-profits take on when municipalities become a funding source. Non-profits showing up at the city door with its hand out for the taxpayer dollars increases exponentially and at some point we run the risk of funding narrow interests at the cost of the taxpayer. Non-profits become lazier and work less in terms of raising revenue needed to fund their missions.
I support the Mayor in his decision. Since Ray Weiczorek left office and Baines took the helm, the Manchester Taxpayer, every single year has been hit with a tax increase. When the economy is good: tax increase; When the economy is bad: tax increase. ANd tax increase after tax increase, we were still funding non-profits? How does that make good sense?
- Rick Olson, Manchester
Great post from Steve in Raymond. This is exactly what governments do not get. Thank you UL and Manchester.
- John D, Danbury
The practice of using tax money for charitable purposes had been around for a long time. There is an interesting book called "The Life of Colonel David Crockett". In this book there is mention of this practice. During a journey to campaign to get re-elected to the House of Representatives, Davy Crockett came across a voter who didn't want to vote for him because he voted tax money for charity. Here is what he was told by the voter.
"In the first place, the government ought to have in the Treasury no more than enough for its legitimate purposes. But that has nothing to do with the question. The power of collecting and disbursing money at pleasure is the most dangerous power that can be entrusted to man, particularly under our system of collecting revenue by a tariff, which reaches every man in the country, no matter how poor he may be, and the poorer he is the more he pays in proportion to his means. What is worse, it presses upon him without his knowledge where the weight centers, for there is not a man in the United States who can ever guess how much he pays to the government. So you see, that while you are contributing to relieve one, you are drawing it from thousands who are even worse off than he. If you had the right to give anything, the amount was simply a matter of discretion with you, and you had as much right to give $20,000,000 as $20,000. If you have the right to give to one, you have the right to give to all; and, as the Constitution neither defines charity nor stipulates the amount, you are at liberty to give to any and everything which you may believe, or profess to believe, is a charity, and to any amount you may think proper. You will very easily perceive what a wide door this would open for fraud and corruption and favoritism, on the one hand, and for robbing the people on the other. No, Colonel, Congress has no right to give charity. Individual members may give as much of their own money as they please, but they have no right to touch a dollar of the public money for that purpose." Needless to say, Davy Crockett repeated this on the house floor the next time he was asked to vote for charity. When he did, the measure before the house, was defeated. Unfortunately for us, today, we have no "Davy Crocketts"!
- Steve, Raymond