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The city of Ely could step in and help a community service agency alleviate a massive budget shortfall.
After a brief discussion Tuesday, council members opted to have their budget committee consider an additional contribution to Ely Community Resource, which is grappling with a deficit as large as $200,000.
City council member Paul Kess suggested that the city step up to the plate.
“Budgets are complicated and any money we contribute now they can leverage to larger things, but I’m inclined to go to the level of $25,000 to help them through this crisis,” said Kess. “It’s a big chunk, a big ask, but I think we showed through our budget process and through our audit that we can absorb this.”
The suggestion didn’t take hold this week, but others on the council seemed willing to devote more city funds to the agency, which provides numerous services and programs to local youth and families.
“As a teacher I see first hand all the good things that ECR does,” said mayor Heidi Omerza. “As a mayor I reiterate we can’t do this all by ourselves as a city. We need to do our part. I have no problem saying that.”
Julie Hignell, longtime ECR executive director, warned school officials during the spring that the agency faced a budget crunch after losing two key sources of grant revenue.
ECR has five full-time staff and assorted part-time help, but Hignell warned that staffing could be cut back in the fall if more money didn’t materialize.
One grant, from the U.S. Department of Education, fell from $150,000 over two years to just $44,000, while Hignell said that state action “to redirect much of its youth program into a newly funded department,” the Minnesota Department of Children, Families and Learning, meant that grant awards from that agency would not be available until July 1, 2025.
That further widened the budget gap and Hignell wrote to the council that “if this gap is not filled it could lead to ECR reducing much of its programming in the school this fall.”
Thanks to expanded grant funding, ECR has offered a “Wolf Pack” after-school program for students from kindergarten through fifth grade, after school on weekdays from 2:50 to 5:30 p.m.
About 50 students participated in that initiative, which included help for reading and math, indoor and outdoor interactive games and field trips.
ECR also helps staff the city’s recreation center, provides homework help to middle and high school students, coordinates the Key Club leadership program and a youth mentor program, hosts reading programs and special interests clubs, and provides a family resource facilitator to work with students and families.
The organization regularly wins the praises of elected officials for the work it does within the community.
Jerome Debeltz, who has served on Ely’s council for over 30 years, voiced his support for the agency and said “I think it’s really important that something get done.”
Council member Al Forsman added “I heard there were some issues with funding there but I had no idea the extent of it.”
Forsman said he reached out to area legislators, while Hignell has contacted officials at both the state and federal level.
The city currently provides about $5,000 to ECR each quarter, and Forsman said “it would be an insurmountable task” for the city to step in and cover the current shortfall.
He called for widespread support among area units of government.
“I do think it’s important we involve all of the entities in trying to make this happen,” said Forsman.
ECR has made a direct appeal for funding and has received good response since word of the budget issues first emerged during the spring.
Contributions to the nonprofit may also be made online, via a Paypal link on the group’s website at www. elycommunityresource.org.
