Why does the Greater Erie Community Action Committee need taxpayer dollars when the foundation that has backed it for four decades is sitting on $16 million of assets?
Why has GECAC used county dollars to pay for administrative costs?
And why doesn’t Erie County have a formal grant-application process or a process for ensuring that public monies are being used as they are intended?
Those were among a laundry list of questions and issues raised by Erie County Councilman Jay Breneman this week.
In a detailed, 10-minute speech, the text of which he has since posted to social media, Breneman accused GECAC of using unrestricted gaming revenue funds from the county as a “slush fund” to pay for administrative costs; for lunches, gifts, conference registration fees for staff and board members; for donations and sponsorships; for its annual dinner; and to cover other overhead expenses.
Breneman said he requested information from 19 grant recipients as part of the 2018 budget review process. The findings led the county to restrict funding for GECAC for the coming year, which means the funding has been allocated but that it cannot be paid unless a majority of County Council votes to do so.
Now Breneman is asking the Erie County Board of Tax Assessment Appeals to withdraw the tax-exempt status of GECAC’s foundation, the Greater Erie Economic Development Corp., which owns buildings where GECAC operates, including its main office at 18 W. Since 2007, after the opening of the Presque Isle Downs & Casino, that money has come from county government’s share of gaming revenue.
The county gave GECAC two grants in 2016: A $258,000 grant for GECAC’s administrative division and a $364,000 grant for its Area Agency on Aging division. Breneman to claim otherwise has no basis in fact or logic.”
Another point of contention involved the GEEDC, which has $16 million in reserves, according to a 2015 tax filing.
When asked why GEEDC has such a large reserve Friday, GECAC solicitor Tom Pendleton said, “That’s a question for GEEDC.”
Gerald Blanks, a GEEDC board member, deferred comment to the nonprofit’s chief executive, Barbara Drew. Erie City Councilman Mel Witherspoon, another GEEDC board member, did not return a call for comment Friday.
On Friday, Breneman said his comments are just as much a criticism of the county as they are of GECAC. Her examination of the documents found that there were “no financial deficiencies as far as their reporting” because county council placed no restrictions on how funds should be used.
County Councilman Fiore Leone said GEEDC should be “taking care of” GECAC financially “if they have a substantial amount of money.”
Even as he disputes many of Breneman’s accusations, Jones said he is trying to make changes at the agency.
