Urban Neighborhoods Alliance faces slashed funding

Urban Neighborhoods Alliance faces financial trouble from multiple angles.

The organization, devoted to developing "vibrancy, security, health and ... a true sense of community" in five downtown Springfield neighborhoods, faces the loss of nearly $42,000 in city funding beginning in July as a result of cuts the city is making in funding to its nonprofit service partners. Springfield City Council is expected to vote on the city's 2009-10 budget, which is based on a $3.2 million drop in general sales tax revenue, at its June 15 meeting.

UNA Executive Director Bob Horton said the cut means the group is losing nearly two-thirds of its annual funding. Combined with declining corporate and individual donations, which make up the bulk of the organization's remaining funding, UNA is in a tough spot.

"The work we do is important not only to the neighborhoods we serve but the overall quality of life for the city of Springfield as well," Horton said. "And with the rough economy, demand for our services is greater now than ever. What a time to be losing funding, when demand for your services is higher than it's ever been."

The group is getting a small reprieve from a federal Neighborhood Stabilization Program grant, created by the U.S. Department of Housing and Urban Development to help neighborhoods affected by foreclosures and abandoned homes. But Horton said that money comes with specific rules on how it can be used.

"What that does is change the whole focus of our staff time, so that we can't do what we've been doing for the neighborhoods," Horton said.

He also said UNA is preparing to launch a new fundraising effort, dubbed Campaign for the Community, through which the group hopes to find 500 donors at $100 each.See SBJ's June 15 issue for more on the funding issues local nonprofits are facing.