April 12, 2012

States Holding onto CSBG

I was surprised to hear that there are a handful of CAPs in a couple of states that have laid off staff because their funds are stuck at the state level. Some agencies told me they have not received CSBG money in about six months. If that is the case, I want to hear about it. It should not happen. There are protections in the program. I don’t know the circumstances that would allow states to sit on federal money. I had not heard much about it until last week when someone casually mentioned it. I am concerned about CAPs that would be on life support if they were not able to generate non-federal dollars. They are teetering on going out of business as their state capital sits on money they owe them. I wonder how widespread this problem is. I need to hear about it.

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