Deficit stymies EDC
Economic Development Corp. giving up control of Head Start program
By Andy Paras
Overview
What's the issue? The financially-strapped agency that runs Head Start is giving up control of the federally-funded program and state-run programs that benefit low-income students and residents.
What's next? An interim agency will start taking over the federal Head Start program on Monday while a Charleston agency is expected to take over the state program in coming weeks.
Past stories
EDC out of state money; Agency aids low-income citizens with energy bills, published 08/20/08
Head Start: Broke by October? Parents, board members upset with leadership, published 08/08/08
Head Start issues simmer, published 07/31/08
Head Start chief to vacate post, published 07/30/08
Deadline looms for Head Start, published 01/13/08
Agreement could be near on Head Start funds, published 01/22/08
MONCKS CORNER — The agency that runs the local Head Start program will relinquish control of it by Sept. 1 rather than try to overcome a budget deficit of more than $1 million.
Officials say the decision by the Berkeley-Dorchester Counties Economic Development Corp. to surrender the program will allow the federal Head Start and Early Start programs to serve 1,650 children in Berkeley, Dorchester and Charleston counties without interruptions.
The change can't come soon enough for some. As of Thursday night, officials with the financially struggling corporation were scrambling to make sure a few dozen state and federally-funded employees will receive paychecks today.
Julia-Ellen Davis, director of the Head Start and Early Start programs, said she was optimistic the management and family service employees would get their checks. "I believe it's going to work out," she said
The problem won't affect Head Start teachers, bus drivers and other staff who aren't expected to start until Monday. The employees will, however, be required to interview for their respective jobs with a federally-appointed interim agency preparing to take over the programs and nearly 30 Head Start centers until a new agency is chosen.
The Economic Development Corp. also agreed to relinquish control of about $4 million in state programs that it administered to help people pay for medical, food and utility costs as well as make household improvements to help save on energy costs. Those programs are expected to be taken over by a Charleston agency in the coming weeks.
The chairman of the board, Levy Berry, said the EDC's board had little choice. "We didn't have any money," he said.
The agency has incurred debt of at least $1.2 million by repeatedly violating regulations governing how state and federal grants are spent, according to a state report released early this month. It found that some employees, including former Executive Director Patsy Gardner, who resigned this month, received large checks from the agency without justification.
Gov. Mark Sanford's office said Thursday that the report has been referred to the FBI and the U.S. Attorney's Office in Columbia for a possible criminal investigation. An FBI spokesman confirmed the report will be reviewed for possible violations of federal law.
Without any programs left, it was unclear what will happen to the Economic Development Corp., a 40-year-old agency that has struggled to manage funds and administer programs for the better part of a decade.
"We'll just have to see," Berry said.
The Economic Development Corp.'s decision to give up Head Start was welcomed by its Policy Council, a group of parents and community members who must sign off on the corporation's budget every year for it to receive about $12 million in federal Head Start funding.
The Policy Council nearly cost the agency its funding this year after it complained that the Economic Development Corp. was keeping it out of the loop with budget matters.
"I am pleased the executive board took this opportunity to finally do the right thing regarding the program," said Val Patrick, Policy Council chairwoman. "There is no need to rehash what wasn't done to protect the program by the board. That is evident."
Patrick said her group looks forward to working with the Community Development Institute, the interim agency appointed to manage the Head Start program until a new agency is chosen to manage it.
An official with the U.S. Department of Health and Human Services, which made the appointment, said the interim agency will begin the transition Monday, with full operations beginning Sept. 1. Part of the transition includes requiring all employees to interview for their own jobs.
Patrick said not all employees are guaranteed to keep their jobs.
She said most of the employees went through the process in 2005, when the Economic Development Corp. lost control of Head Start for two days over concerns that it was endangering the children and staff in its preschool programs by exposing them to health and safety risks.
The Economic Development Corp. eventually reached a settlement with the federal Department of Health and Human Services.
It was the second time in a year that it nearly lost its contract. In 2005 the federal Head Start bureau attempted to terminate the Economic Development Corp.'s contract because of finances, a lack of board oversight and poor facility upkeep.
The agency also was entangled in several state and federal investigations, including an FBI probe and grand jury investigation.
Gardner was brought in and credited early on with helping straighten out the corporation. The board asked her to resign July 27 after Berry said the board was kept out of the loop and given inaccurate information.
Reach Andy Paras at aparas@postandcourier.com.
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zoomru (anonymous) says...
EVERY.....county, state, and federal official that serves South Carolina and running for ELECTION this November should be called on the CARPET for this fiasco!!!
You mean to tell me that ANOTHER agency is stepping in to take over?? How can they afford to do this? This was not in THEIR BUDGET ???!! You mean they have that much SLUSH ??
Uh ...OH? Can you SMELL the payola?? Everyone's running for cover on this??!
WHOEVER..."Sponsor's" this funding at the state or federal level is staring at a political "TITANIC". WILL the truth ever be published? DID anyone at any level;.. EVER?...
scream "ICEBERG Ahead"??
WE hear these whiney LIBERALs scream about "WINDFALL Profit TAXES" on the oil industry. Well...how about the "WINDFALL Head Start ...ROBBERY?" !! WE hear the right wing NARCO NUTZ scream about "UN-Funded Government MANDATES"?!!
MY BACKSIDE ..!!
Both sides need to be strung up for this ...!
August 22, 2008 at 2:19 a.m. ( permalink | suggest removal )
DoaMM (anonymous) says...
Yeah, but even then if they got those "personal" checks and the FBI can't find anything illegal on a Federal level, does that mean these people, who resigned Soooo conveniently, get to go scott free? Surely the State of local government will take action on them.
August 22, 2008 at 7:14 a.m. ( permalink | suggest removal )
WhoCares (anonymous) says...
"As of Thursday night, officials with the financially struggling corporation were scrambling to make sure a few dozen state and federally-funded employees will receive paychecks today."
Sounds like a bunch of rats scrambling to find the last few pieces of cheese after they have entirely raided the pantry!! Don't worry about their clients, just grab the last little bit they can and run for cover!!!
August 22, 2008 at 7:29 a.m. ( permalink | suggest removal )
MP (anonymous) says...
As the crooks attempt to crawl under rocks and escape.
August 22, 2008 at 8 a.m. ( permalink | suggest removal )
oldglory (anonymous) says...
Coming to SC from VA a few years ago, I have found it mind-boggling that we have no audits (or checks and balances) in government agencies. Then one day our chins hit the floor when it's announced that omg they are outta those millions. Like grandma used to say, "Where there's smoke,there's fire."
I too noticed that the Governor has looked to federal investigations in some situations. Wish he would do it more often.
August 22, 2008 at 8:13 a.m. ( permalink | suggest removal )
bigwhip (anonymous) says...
Quite interesting to say the least. They are doing all they can to make sure everyone gets paid........those that put this ship on the rocks will get paid after running it aground. Another program designed to help those in need being robbed by those in charge. Not hard to do when there is no oversight, no accountability, and no ethics. It is as if these programs are designed to be looted by the managers.
August 22, 2008 at 9:55 a.m. ( permalink | suggest removal )
ysillyme (anonymous) says...
Folks aren't we forgetting Gov. Sanford is responsible for picking qualified personnel to audit, refer charges, and handle a state level prosecution? The fish rots from the head down and though I am a conservative republican, I'll be happy to bid him bye-bye.
August 22, 2008 at 10:18 a.m. ( permalink | suggest removal )
cu214 (anonymous) says...
The recipient of Federal grants and awards are required to be audited to ensure the funds are used according the appropriate laws, regulations and statutes. One major area is to ensure adequate internal controls are in place.
The underlying question is who "owns" Berkeley-Dorchester Counties Economic Development Corp (EDC). If EDC is part of either Berkeley and/or Dorchester County it should have been included in the respective counties single wide audit. If EDC is part of the state then it definitely fell under the single wide audit conducted by the SC Auditors Office.
So who was responsible for the prior year's audit?
August 22, 2008 at 11:42 a.m. ( permalink | suggest removal )
eyfigueroa (anonymous) says...
bigwhip, I wholeheartedly agree with your assessment. This entire ordeal has a sordid HBO series feel about it.
The purpose of Head Start was and still is to prepare young children with socio-economic disadvantages for school. As much as we all like to denigrate the lazy government-dole grabbing parents, the children of these good-for-nothings still need our help. I don't mind my tax dollars helping the wee ones, it's the adult fools I no longer want to support.
I'm hoping that a true audit finds irregularities and that some indictments come down for the bigwigs who have lived large on our hard-earned tax dollars.
August 22, 2008 at 11:48 a.m. ( permalink | suggest removal )
GreenvilleGirl (anonymous) says...
CB, I like Sanford. He has tried to do so much to help our state. Unfortunately the good ol' boy system(aka GOBS) is alive and well in SC. I met with the judiciary committee several years ago and came away knowing that we have many, many idiots in office. Some of these people are less qualified and have less intelligence than my dog.
It's a shame we have term limits for the governor, but no limits for our legislature. I don't know what it will take to restructure SC's government, but something HAS to be done, and SOON. Otherwise, we'll become last/worst in everything that's important for our prosperity and well being.
August 22, 2008 at 3:23 p.m. ( permalink | suggest removal )
ifyousayso (anonymous) says...
"The purpose of Head Start was and still is to prepare young children with socio-economic disadvantages for school. As much as we all like to denigrate the lazy government-dole grabbing parents, the children of these good-for-nothings still need our help. I don't mind my tax dollars helping the wee ones, it's the adult fools I no longer want to support."
eyfigueroa just because a parent uses headstart does not mean they are abusing the system. I know some are and to be honest most of them probably are. But for you to call all of them these names. My son was supposed to start this yera and with all of this going on I probably wont put him in it. My husband works hard and the only reason he was gonna be in is because he needs the interaction with other children because he has a serious speech delay. We are not good for nothings.
August 22, 2008 at 5:21 p.m. ( permalink | suggest removal )
jeff61 (anonymous) says...
Deficit stymies EDC
Stymie from Our Gang (Little Rascles) must have been running this program.
August 22, 2008 at 6:32 p.m. ( permalink | suggest removal )
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