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Health director warns federal grant freezes could force service reductions; council reviews HIV/AIDS subrecipient contracts
Summary
The Newark Department of Health told the council that federal and state grant funding totals roughly $99 million after absorbing homeless program funds and that a potential federal freeze could affect about $1.7 million in monthly expenses; the council also reviewed contracts with subrecipients to provide HIV/AIDS-related services.
Caitlin Allsbrook, director of the Newark Department of Health, told the City Council the department is heavily reliant on federal and state grants and is assessing the impact of possible federal funding freezes on city services.
Allsbrook said the department receives approximately $60,000,000 in federal and state grants in its baseline budget and that the absorption of the homeless program raised the total to about $99,000,000. "In our assessment of what a federal freeze would look like and how it impact our department, we recognize about $1,700,000 in expenses that cover personnel costs, supplies, and other essential, services that we provide on a monthly basis," Allsbrook said. She added the department recently received a stop-work notice on one grant that is affecting projects such as website development, renovations to a health center and added employee parking. The department is reviewing contingencies that could include reductions of services and personnel and said it would provide more detailed information to council as needed.
Council members referenced state-level budget warnings; Allsbrook cited a recent statement from Governor Murphy about a $350,000,000 cut to the New Jersey Department of Health and Human Services and said the city must prepare for further reductions that could affect immunization, STD and other grants that support local public-health programs.
Separately, the council reviewed agenda items 7R5 A–E: contracts with subrecipients to provide HIV/AIDS-related health and support services. The items named the subrecipients on the agenda as: A) Rutgers State University START program; B) Rutgers State University Special Services Dental Clinic; C) Zuffal Health Center Inc.; D) Iris House, a center for women living with HIV Inc.; and E) Newark Community Health Centers Inc. The council asked for more information about federal funding trends and whether continuing changes at the U.S. Department of Health and Human Services would affect local subrecipient grants; the director committed to follow-up briefings.
