11-18-2009, 10:42 AM
NEWS-SUN
November 18, 2009
By DAN MORAN <!-- e --><a href="mailto
MORAN@SCN1.COM">DMORAN@SCN1.COM</a><!-- e -->
WAUKEGAN -- Former Waukegan Main Street executive director Susan Miller said Tuesday that she resigned this month "because the organization had run out of money."
"I had to lay myself off," Miller said. "There was no money left in the account. It was really that simple."
Miller, who took the job in September following the July departure of Maureen McGrain, added that "we were in crisis mode since I got there, (and) there was no long-term plan to make money."
On Monday night, James Donovan, president of the Main Street Board of Directors, told the City Council that Miller had decided to leave on Nov. 2, but didn't offer details beyond that.
Responding to Miller's assessment on Tuesday, Donovan acknowledged that Main Street had a cash-flow problem after the city delayed an annual grant payment of $40,000 during the budget crisis. But he added that he and another board member had pledged to cover operating expenses, including Miller's paychecks, until the funds came through.
"Did she have to lay herself off? I can answer that with one syllable: No," Donovan said. "The city's grant was later than usual (because of) its financial situation. We usually receive the first installment in the late spring or early summer, and this year, by October, we hadn't received it yet."
Donovan added that an installment of $20,000 was received last week, and he noted that the city's total contribution generally represents between a third and a quarter of the nonprofit organization's operating budget.
Eighth Ward Ald. Rick Larsen, who represents the city on the Main Street board, said the delay in funding was a direct result of budget scrutiny that went on all summer and into the fall.
"We had to do that so we could take care of other things financially, and we didn't want to fund anything that wasn't critical," Larsen said. "The city is intent on keeping Main Street alive, and the aldermen support that ... As we move forward, I hope we can continue to fund it. Everything is still in flux."
Miller said that as she was being interviewed for the job last summer, she was shown a 2008 annual report. "I wasn't aware of where we were financially" for 2009, she said.
Upon taking the job and finding out that operating funds were being depleted, Miller said, "I was upset. I said, 'Why did you hire me?' ... They talked about the grant from the city, but for them to hope that money is going to come in isn't realistic."
Donovan said that city officials kept Main Street informed about the situation. "We knew it was going to be late, but we knew it was coming, so it was a cash-flow issue, not a solvency issue."
By the end of October, Miller said, she felt something had to be done.
"I told them if there was some kind of plan to stabilize the organization financially, I'd be happy to come back," said Miller, adding that about two weeks before she resigned, "I also offered them two options -- I'd be willing to take a furlough (or) work part time ... Nobody wanted to discuss it with me."
As Main Street launches another search for a new executive director, Donovan was asked to assess the organization's financial status in light of the recession and its effects on Waukegan.
"In terms of giving and participation by individuals, I would say it's as good as normal," said Donovan, adding that the group's two major fund-raisers -- Mardi Gras in the winter and the Mayor's Lunch in the spring -- did "as well or better than any other year" in 2009.
But Donovan also said that "it's the business donations that are down. The recession has affected their bottom lines ... So we are pulling in our belts. Are we in a crisis? I'm calm about it."
Now undergoing a job search of her own, Miller said she wished the organization had been more up-front with the community about its funding shortfalls as the summer went on.
"What's wrong with saying, 'Our organization is running out of money, and we need support from the community?'" she said. "I don't think it was handled very professionally."
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November 18, 2009
By DAN MORAN <!-- e --><a href="mailto
MORAN@SCN1.COM">DMORAN@SCN1.COM</a><!-- e -->WAUKEGAN -- Former Waukegan Main Street executive director Susan Miller said Tuesday that she resigned this month "because the organization had run out of money."
"I had to lay myself off," Miller said. "There was no money left in the account. It was really that simple."
Miller, who took the job in September following the July departure of Maureen McGrain, added that "we were in crisis mode since I got there, (and) there was no long-term plan to make money."
On Monday night, James Donovan, president of the Main Street Board of Directors, told the City Council that Miller had decided to leave on Nov. 2, but didn't offer details beyond that.
Responding to Miller's assessment on Tuesday, Donovan acknowledged that Main Street had a cash-flow problem after the city delayed an annual grant payment of $40,000 during the budget crisis. But he added that he and another board member had pledged to cover operating expenses, including Miller's paychecks, until the funds came through.
"Did she have to lay herself off? I can answer that with one syllable: No," Donovan said. "The city's grant was later than usual (because of) its financial situation. We usually receive the first installment in the late spring or early summer, and this year, by October, we hadn't received it yet."
Donovan added that an installment of $20,000 was received last week, and he noted that the city's total contribution generally represents between a third and a quarter of the nonprofit organization's operating budget.
Eighth Ward Ald. Rick Larsen, who represents the city on the Main Street board, said the delay in funding was a direct result of budget scrutiny that went on all summer and into the fall.
"We had to do that so we could take care of other things financially, and we didn't want to fund anything that wasn't critical," Larsen said. "The city is intent on keeping Main Street alive, and the aldermen support that ... As we move forward, I hope we can continue to fund it. Everything is still in flux."
Miller said that as she was being interviewed for the job last summer, she was shown a 2008 annual report. "I wasn't aware of where we were financially" for 2009, she said.
Upon taking the job and finding out that operating funds were being depleted, Miller said, "I was upset. I said, 'Why did you hire me?' ... They talked about the grant from the city, but for them to hope that money is going to come in isn't realistic."
Donovan said that city officials kept Main Street informed about the situation. "We knew it was going to be late, but we knew it was coming, so it was a cash-flow issue, not a solvency issue."
By the end of October, Miller said, she felt something had to be done.
"I told them if there was some kind of plan to stabilize the organization financially, I'd be happy to come back," said Miller, adding that about two weeks before she resigned, "I also offered them two options -- I'd be willing to take a furlough (or) work part time ... Nobody wanted to discuss it with me."
As Main Street launches another search for a new executive director, Donovan was asked to assess the organization's financial status in light of the recession and its effects on Waukegan.
"In terms of giving and participation by individuals, I would say it's as good as normal," said Donovan, adding that the group's two major fund-raisers -- Mardi Gras in the winter and the Mayor's Lunch in the spring -- did "as well or better than any other year" in 2009.
But Donovan also said that "it's the business donations that are down. The recession has affected their bottom lines ... So we are pulling in our belts. Are we in a crisis? I'm calm about it."
Now undergoing a job search of her own, Miller said she wished the organization had been more up-front with the community about its funding shortfalls as the summer went on.
"What's wrong with saying, 'Our organization is running out of money, and we need support from the community?'" she said. "I don't think it was handled very professionally."
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