Funding for THE GARAGE in Question

Saturday night THE GARAGE marked its 12th anniversary with a full slate of bands and a full house. The celebration functioned as a fundraiser for the popular youth gathering spot that is mostly known as a music venue. But it will take more than a one-night gig to solve the financial problems THE GARAGE could be facing.

The facility's financing is cobbled together with a mix of grants, fees and an annual city appropriation of $74,000. But with the extended economic downturn, 2012 may be pivotal to the center’s future. 

The financial challenge

Since opening in 1999, THE GARAGE has weathered several financial challenges, said the center’s manager Eric Billiet. But next year’s outlook is bleak, because funding from its major grants are in question. And as the Burnsville City Council crafts its 2012 budget, council members may need to take a hard look at whether taxpayers should do more to keep the facility going.

The Council learned that a major funding source for THE GARAGE’S $389,739 projected cash outflow for 2012 could be, at best, limited. With an anticipated 16.6 percent cut to the city’s Community Development Block Grant allocation, a decision on THE GARAGE funding will need to be made sooner rather than later, noted City Manager Craig Ebeling during a recent Council meeting.

According to the city’s five-year financial plan, “Either more revenue is needed to support spending, which will need to either come from an increase in the General Fund tax levy support, or from non-city revenue sources such as grants and other funding, or program scope (spending) will need to change.”

City documents show that in 2011, projected funding sources include:

• $6,500 from rental fees;

• $35,000 grant from the McKnight Foundation;

• $57,500 Community Development Block Grant;

• $72,338 admissions and program charges;

• $74,000 annual subsidy from the city; and

• $82,000 in federal or state grants (a grant from the Minnesota Department of Public Safety).

For 2012, most of the grant money is in question.

“There isn’t any stability from any of our funding sources,” Billiet said.

The center has consistently received a federal crime prevention grant that passed through the Minnesota Department of Public Safety’s Office of Justice. The current state government shutdown and the state’s projected $5.4 billion deficit have imperiled these funds. Billiet is still waiting for word on whether these dollars will be available in 2012.

Then there’s the $35,000 annual grant from the McKnight Foundation. While Billiet is hopeful that some money will be available, he said the Foundation has shifted its focus to more regional programming.

What about the city? Can Billiet expect more funding from Burnsville?

“Most likely no,” he said.

Council Member Dan Kealey agrees. He serves as the council liaison on THE GARAGE Advisory Board, which oversees its operations. He is optimistic about the future, if the board and staff can “think outside the box.”

He said that a larger general fund contribution is most likely out of the question, but that new grant opportunities could come into play, if THE GARAGE could expand its participation numbers.

“On a day-to-day basis, they draw from a very narrow segment in the city. It must expand to incorporate a lot more kids,” he said.

For the past year, they have been in talks with the Boys and Girls Clubs of America to incorporate more of their programming. Kealey thinks this could open the door to more funding opportunities. “As participation at THE GARAGE grows, I believe the funding will, too,” he said.

Financial ebb and flow

The GARAGE began with enough funding to help build a fund balance over the years. According to city information, in 2008 the fund balance sat at $289,190. But its financials “ebb and flow,” Billiet said.

A closer look at its 2011 budget and four-year projections shows a murky road ahead.

With an annual 2011 projected cash outlay of around $348,000, the cash intake, including the city appropriation, is expected to be $337,000, creating the need to tap the reserves once more. Projections into 2015 layout more bad news, when the fund balance could be completely used up, according to the city’s 2011 budget document.

More than loud music

The Garage has a solid reputation among south-of-the-river youth for its music venue. Any given Friday or Saturday night local youth bands are showcasing their talents. (Yes, parents are welcome at the events). While admission is kept low, the events pay for themselves and in good years, there is money left over for general operations.

But there’s always been more to the GARAGE than loud music.

“Underneath there’s serious stuff going on,” Billiet said. And that serious stuff, after-school and summer programming, could be in jeopardy.

Much of the grant money supports the after-school and summer programming that is drawing researchers’ attention to the center, Billiet said. In cooperation with the University of Minnesota and the University of Illinois, the center serves as resource for the Pathways Project, a study focusing on the best ways to help young people to be successful, specifically among Latinos and Caucasians.

THE GARAGE has about 500 members participating in various programs. Weekday attendance, especially during the school year, has been increasing as word got out that kids could get help with their homework, and the economy was pushing parents to seek low-cost alternative activities.

Last year, there was a successful push to get community members to volunteer with homework help.

“We mandate that kids complete a half-hour of homework before taking part in activities. Once we started that, the number of kids doubled. The word got out that we would help with homework,” Billiet said.

Survey results show those participating in weekday programming hail from low-income families, and again that demographic has increased as the economy stagnates.

The July 2009-2010 survey shows that parents report the GARAGE had a positive impact on their child’s self esteem, and their behavior.

“We are very deliberate about what we do here,” Billiet said.

But for now, Billiet said, “Everything is up in the air.”

Download the movie