Heated Debate At Council Meeting Over Non-Profit’s Funding

Project Arriba asked El Paso City Council on Tuesday to drop a requirement that forces them to match city-issued funds with private sector donations. The non-profit said they have always and still plan to raise funds, but they want access to the city money before they match the funds, in an effort to cover expenses.

“We are in constantly fundraising mode, that has always been, by necessity, part of our operational procedure,” said Rev. Dr. Roden-Lucero, a Project Arriba board member.

During budget hearings about two months ago, El Paso city council awarded Project Arriba $250,000 to get people out of poverty. The money came with a condition: that the organization match $125,000 in private sector donations.

Council member Steve Ortega said he did not want to get rid of the requirement just two months into the fiscal year. He, and other city council members said they were concerned the non-profit relied too much on government funding.

“When you’re talking about sustainability and you have an over reliance on government, one of the first things to get cut during tough economic times, are programs like Project Arriba. The city is going to take care of its police and fire, it’s going to take care of its parks, it’s going to take care of its engineering, of its sanitation,” said Ortega.

Roden-Lucero said he expected the city to be more willing to end poverty in El Paso.

“By design, these economic development initiatives do depend in part on government assistance because we believe government has a role in reducing poverty. We’ve always understood our obligation to raise money from the private sector.

The organization pays for job-training and tuition for people living in poverty so they can get jobs in industries with shortages, like the medical field.

“I’ve voiced very strong support for your organization. I see how good it is. I see it myself with my work, I work with these nurses all the time. I believe this is a work force issue,” City Rep., Dr. Michiel Noe told Roden-Lucero.

But City Rep. Eddie Holguin, who has raised concerns with the organization in the past, said Project Arriba does not raise enough funds and is too reliant on the city.

“This just shows the inefficiancy and uselessness of this organization. And how they cannot survive without government intervention and sucking money from the people of El Paso,” he said on Tuesday.

Project Arriba board members said that’s not the case. “The evidence that city and county monies have been invested wisely, and yes, it does come from general revenue, we understand that, but we also recognize what has happened in the lives of over 800 El Pasoans,” said Roden-Lucero.

He added a UTEP study shows that for every dollar the city invests in Project Arriba, they get $26.00 back in tax dollars because the non-profit adds people to the workforce and out of poverty.

During the presentation on Tuesday, Project Arriba’s CEO, Roman Ortiz, did not give a clear answer as to why the non-profit needed the money up front. “I don’t know why Rep. Lilly and Rep. Noe would propose this if the CEO cannot give you a reason. It’s mind-boggling to me that you all would make a recommendation when they cannot even justify what they’re asking for,” said Holguin.

City Rep. Ann Morgan Lilly said she had tried to raise funds for the company. It’s a hard task in these tough economic times, she said.

City Rep. Emma Acosta said Project Arriba’s board members needed to find more efficient ways to raise money,

“If they strongly believe in this organization, then they need to step up to the plate as well, because the tax-payers of this community are footing the bill, you’re asking for $250-thousand now from the community, from the property tax payers. We can use that money for other sources in the city,” she told board members

The non-profit’s CEO said they had reduced administrative costs by 20% last year. A city economic development staff member told city council Project Arriba had raised $183,000 in 2011. $25,000 of that had been raised since the fiscal year began two months ago, said board members.

“It’s unjust to say that we haven’t invested wisely, the moneys of general revenue that the city has generously put into Project Arriba,” said Roden-Lucero.

Holguin grew frustrated on Tuesday. “I’m not going to waste anymore breath on this organization, I think everyone here knows where I stand,” he said.

Council granted Project Arriba’s request. Ann Morgan Lilly, Susie Byrd, Dr. Michiel Noe and Carl Robinson voted for the funding, along with Mayor John Cook, who broke a 4-4 tie.

Representatives Emma Acosta, eddie Holguin, Steve Ortega and Cortney Niland voted against relaxing the matching funds requirement.