As grant money runs out, Gilroy’s employment training group
working toward non-profit status
The Mujeres Pueden program, designed to put low-income women to
work, often in non-traditional jobs, is in danger of running out of
money as it transitions from a city agency to a non-profit one.
The Mujeres Pueden program, designed to put low-income women to work, often in non-traditional jobs, is in danger of running out of money as it transitions from a city agency to a non-profit one.
The group was begun with a pilot HUD grant designed to help revitalize the city’s low-income downtown by helping welfare recipients find jobs. Now because of its successes and a failing economy, it has grown to the point where it needs more money – something it could more easily seek through grants and fundraisers as a non-profit agency.
“There is a lot of funding out there that we are missing out on as a governmental agency,” said Gilroy’s Housing and Community Development Coordinator Marilyn Roaf who oversees the Mujeres Pueden (Women Can) program. “Right now, there is no more money coming from our current government source.”
In September, the grant money runs out.
“That’s when we’ll be out of the business. But this is just the natural progression of what was envisioned five years ago,” said City Administrator Jay Baksa. “The city was to be the catalyst for this until it was time to break away. But at the same time we feel a responsibility to help the program find another home. Right now, we are working on it becoming a non-profit. That’s when the city will give up all the files and documentation for everything to do with the business.”
At a special study session Monday night, administrators of the program presented the city council with updates on its success and future goals. While most of the news was positive, officials from the agency also let the council know that the need for additional funding is a concern as their status changes.
“We’re part of the city right now,” said Mujeres Pueden Program Manager Lorraine Bursese on Tuesday. “We’re waiting for IRS approval on our application for (independent) non-profit status.”
While everyone expects the IRS to approve the change to non-profit status, program officials realize that finding money in a tight economy won’t be easy as demands on the program increase.
“We’re trying not to feel frantic, but yes we are,” said Bursese. “And that’s why we came to the city, to update them on our established record and find ways to get additional funding, including more money from the city.”
Currently, Gilroy budgets roughly $400,000 annually for Mujeres Pueden.
“We’re submitting grant applications,” said Bursese. “I submitted a couple this fall. But right now they have to be submitted to entities that are available to the city.”
In September 1999 the U.S. Department of Labor awarded the City of Gilroy a $1.4 million grant to launch the welfare-to-work program. In addition to helping women achieve traditional employment, it was also designed to help women find jobs in construction trades and to help them start their own businesses.
Under the program’s guidelines, 70 percent of the funds have to be used on long-term welfare recipients. The remaining 30 percent can be used on people who are currently on welfare or on those who meet current Health and Human Services poverty levels of income.
“We have to find ways to sustain ourselves,” Bursese said.
Bursese took over the program in August 2001. Under her guidance the program has served more than 266 families and helped more than 142 clients find jobs. Of those, 88 have retained employment for more than six months.
Nearly 95 percent of the women who participate in the program are Hispanic. All of them are grateful for the help in getting on their feet.
“We receive a lot of thank you notes,” said Bursese. “Our clients have various problems and challenges.”
The program became a reality when city staff realized that Gilroy could qualify for a grant because many of the residents lived near the city’s impoverished downtown and fell within the Housing and Urban Development’s census track.
As part of the downtown revitalization effort, the city set a goal of helping people in the area find employment. Eventually, Bursese would like to see the program expanded so that more can participate.
“In the future, I would like to see our services expanded to serve more families,” said Bursese. “Right now, many people need help but don’t qualify for the program. We have to turn back a lot of low-income people.”
Bursese said that Santa Clara County’s comparatively high-income levels prevent a lot of people from qualifying for the program. Locally, the median income for a family of four is $96,000. Under federal poverty level guidelines, 80 percent of that figure is considered low income. In contrast, the current poverty level for a family of four in the 48 contiguous states is $18,100.
