Willow Glen Resident

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Council votes in favor of new project funding caps for nonprofits

By Monica Heger

A change in funding strategy for nonprofit groups will set caps on new projects. The San Jose City Council voted 9-2 on Sept. 26 to change the way programs receive money from the healthy neighborhoods venture fund.

The fund assists nonprofits in the areas of education, senior services and programs that promote a tobacco-free community. The fund was established after San Jose won a $250 million lawsuit in 1998 against the tobacco industry. Each year the city allocates approximately $10 million to eligible nonprofits that apply for the grant money.

The city reviews its funding strategy annually and makes changes where necessary.

This year the major change made was capping the amount of funding programs could receive. Last year, new programs were capped at $25,000. This year, that cap remains, and increases to the amounts of funding are also capped. Programs in their second year of funding can ask for a maximum of $37,500, a 50 percent increase, and ongoing programs can ask for a 5 percent increase.

One organization not happy about the funding caps was the International Children's Assistance Network, which serves the Vietnamese community. More than 20 representatives of the organization spoke against the funding caps and also said the Vietnamese community in San Jose is underserved.

Councilwoman Madison Nguyen and Councilman Chuck Reed, the two council members who voted against the changes, saw problems with the new regulations.

"Capping a new or pilot program is just something I cannot support," Nguyen said.

The majority of council members, however, supported the caps and changes to the funding strategy because they believed it the best way to ensure that the highest number of groups received some amount of funding.

"It is a difficult process," said Councilwoman Linda LeZotte, who sits on the healthy neighborhoods venture fund committee. "There's simply not enough money to go around."

"We're not funding anyone sufficiently to meet their needs," said Councilwoman Judy Chirco, chair of the committee. "It's a harsh truth, and we all wish for something different."

Vice Mayor Cindy Chavez agreed with the changes but asked staff to do an analysis to ensure no particular ethnic group was being excluded from the process.

"We need to make sure we are serving those who need it," Chavez said. "I'd rather have a debate over types of services to fund and not that we're missing whole communities."