After Squabble, CAA Loses State Money
by Melissa Bailey | October 26, 2006 8:13 AM | Permalink | Comments (9)
Just when it seemed like progress was coming to the city’s scandal-plagued major social service agency, a power struggle involving board Chairman Michael Smart (pictured) and the state has once again plunged Community Action Agency into crisis.
Michael Smart was given a choice Wednesday: Let the state help pick a new board of directors for the Community Action Agency, or lose $10 million in state funding next year. Smart chose the latter, leaving the city’s major anti-poverty agency “ruined.”
The conflict had been brewing ever since the state Department of Social Services found out, apparently in this Independent news article that Smart, chair of the CAA transitional board, was interviewing candidates for a new board of directors.
“I was very surprised recently to read in the newspaper that Mr. Smart appears to have violated the agreed-upon process by interviewing fifteen (15) board members on his own without the agreed-upon assistance of DSS and CAFCA,” said DSS Commissioner Patricia Wilson-Coker in a letter to CAA CEO Amos Smith Wednesday.
Smart’s method of selection, said Wilson-Coker, undermined the effort to break away from the “embarrassments” of the past and regain public trust.
“The community needs a board that is not connected with the errors and oversights of the past board. The new board needs to be constituted in a manner that engenders public trust and confidence.”
Not involving DSS and CAFCA (the umbrella group of Community Action Agencies) in the process was a violation of a February Corrective Action Plan and a “refusal to participate in corrective action to move CAANH from a history of corruption,” said Wilson-Coker in the letter.
The commissioner offered CAA another chance, a 30-day extension to get on board with the action plan.
Smart and the two other transitional board members, Dave Eliscu and Latrice James, declined the offer Wednesday. Instead, they voted to appoint themselves and six other members to the board. (Click here for a report on the meeting by the Register’s Angela Carter.)
The action prompted DSS to announce it would withdraw state funding at the end of December. Smart said that amounts to $10 million, funding the agency relies on to offer its popular meals-on-wheels and energy assistance programs.
Smart confirmed Thursday that they’d voted in new appointees, but said he hadn’t heard from DSS about losing funding. DSS spokesman Matthew Barrett confirmed the bad news: “The contracts will be terminated at the end of the year.”
Asked earlier this week how the loss of state funds — the agency’s major funding source — would impact the agency, Smart replied: “It would totally ruin it. A hundred and four people would be fired.” DSS would divert the contracts away from CAA to other agencies, Smart said.
What was Smart’s rationale in risking the loss of funds?
“DSS said we were supposed to pick the board,” he said. Smart produced a copy of an amendment to CAA bylaws approved by the outgoing board in June that gives the three members of the transitional board power to select new members.
Wilson-Coker acknowledged that amendment in her letter, but said the agency had to also consider the Corrective Action Plan, which also gives DSS and CAFCA a say in who gets picked.
Smart said he has done a lot of good work with the agency in the last few months. “Now the commissioner’s saying step down and let her pick the board, and you guys get lost.”
“Mike Smart and this committee have guided this agency through some very troubled waters,” said CAA board’s attorney, Mike Jefferson, defending Smart’s decision to appoint himself as a permanent board member. The attorney opined the new board appointments were in keeping with agency bylaws.
Smart made an offer to let DSS pick nine seats on the 18-member board, an offer DSS declined Wednesday. Smart knew the agency risked losing state funding, but felt DSS commands were “confusing and unfair,” he said Tuesday. Smart and colleagues refused to be swayed by DSS’s harshly rebuking letter, and went ahead and appointed new board members.
“I don’t think we should be playing politics with people’s lives,” said Smart.
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Comments
Posted by: sandstorm | October 26, 2006 9:56 AM
The Commissioner's action is long overdue.
Her patience and financial investment in the
agency seemed inexhaustable. In fact, all members
of that board were supposed to have resigned
months ago. The arrogance that has characterized
their responses to their constituents, the community and the Commissioner have finally caused their demise.
Meals on Wheels will be funded. A responsible agency
will, undoubtedly, replace CAA as service provider.
Posted by: A. Lessing | October 26, 2006 11:36 AM
It seems to me that "playing politics with people's lives" is precisely what Mr. Smart and his colleagues did. Rather than find an amicable middle ground (yes, they did try to make some concessions) or, in the worst case, relinquishing control of the selection process for the benefit of the program is nothing short of selfish and self-preserving. Yes, the loss of state funds is a crushing blow to the agency, as it was known it would be. Who then, has gained anything by Mr. Smart standing his ground? Confusing, unfair, or otherwise, the consequences of the actions of the board were clear and obvious. They chose to proceed without the blessing of the State at the peril of the people they serve. Now, who is playing politics?
Perhaps those who depend on CAA can comfort themselves in the knowledge that Mike Smart won't be taking any guff from the State!
Posted by: concerned in ct | October 26, 2006 12:34 PM
Let's be real about what "good work" Mike Smart has done for CAA
1. He appoints himself and his sister to the Board, conflict of interest
2. His daughter works at the agency
3. His tenants have gotten special grants
4. Mike Jefferson, the new attorney, is his campaign manager, and his personal attorney
5. His other sister works at the agency
6. He was a part of the whole mess from before
7. If you read the commissioner's letter, nothing positive has happened, and he was a part of the board that she says was an "embarrasment"
8. The debt still remains
9. Fires longest serving staff member, Morris Moreland
10. Moral at a all-time low.
What good?
Posted by: LDR | October 26, 2006 12:59 PM
All: Please reread the last comment in this article, which was stated by Smart himself! "I don't think we should be playing politics with people's lives." Odd. What did HE do last night? Mr. Smart, Not only are YOU (and the other three board members who remained) playing with the lives of others and their families but you are also playing with the lives of the people that the agency is ultimately trying to assist. You were also asked earlier this week how the loss of state funds — the agency's major funding source — would impact the agency. To which Smart replied: "It would totally ruin it. A hundred and four people would be fired." DSS would divert the contracts away from CAA to other agencies, Smart said. (excerpt taken from above article)
Was this all a big joke? To see if you could call their bluff? To see if DSS would really stand their ground and withdraw millions in funding? What were you thinking? It is obvious to this reader that you were not thinking nor are your services warranted any longer. YOU sir should do the right thing and step down from your post.
Besides...last I knew you were a volunteer...a volunteer should report to someone and does not have the power to appoint, never mind appoint himself.
Posted by: LDR | October 26, 2006 1:19 PM
Hey Mr. (Not-so) Smart. Quoted by DSS Commissioner Patricia A. Wilson-Coker on October 20, 2005; "Again, let me state in very clear language: the interim management and financial team will report first to CAFCA and DSS."
http://www.newhavenindependent.org/archives/2005/11/post_15.html
So there it is. A year ago she warned Darrell Brooks and the board yet still the remaining three must-be-ousted interrim board members chose to stay. They do not chose to step down on their own then they have to be removed and DSS (and CAFCA) should do just that rather than remove the $10 million in funding that will ultimately hurt more people than just the few three.
Posted by: Kat | October 26, 2006 2:12 PM
Is Mr. Smart truly risking $10M, one hundred jobs, and the services many of our poorest community members rely on just because "DSS said they were supposed to pick the board"?
Posted by: nfjanette
| October 26, 2006 11:38 PM
"I don't think we should be playing politics with people's lives," said Smart.
Mr. Smart, Irony is calling on line #1 - please pick up and take the message.
Posted by: just us | October 27, 2006 11:58 AM
When will we stop using the plight of poor people in our city as a vechile to advance personal, often wrong minded political agendas? It would appear that Mr. Smart has done very little since the hiring of the new CEO that has advanced the interest of the people who depend on CAA for energy assistance, elderly services and the like. There is a legacy of combative, short sighted and self-serving action that has plagued the city's cap agency. This legacy appears to be alive and thriving in Mr. Smart. New Haven's poor are getting poorer and their needs continue to exceed the not for profit sector's ability to effectively address. Turning the seating of a board into a battle field is offensive to right minded people and does not serve the interest of the recipients of CAA services. I hope people have not forgotten what happened to the Dixwell Community House. An historic institution closed because the seated Board placed its own needs above those of the community and the youth it was in business to serve. Let's end this. There are no members on the existing transitional board that bring irreplaceable skills, knowledge and abilities to this process. Act in the best interest of this city and resign.
Posted by: Ned | October 27, 2006 1:08 PM
Makes one kind of skeptical about all quasi-public social service agencies; do they exist primarily for "community leaders" to dole out money to their friends and families, boost egos and grow political power? Washington has the military/industrial complex, and New Haven has the poverty/social welfare complex... These agencies need to be audited on a regular basis, and funding needs to be stopped before the rot sets in.
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