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OTTAWA COUNTY - The House budget called H.R.1 contains line items that cut funding to two Ottawa County-based organizations: Ottawa County Michigan Works! (OCMW) and Ottawa County Community Action Agency (OCCAA). Both receive primarily federal, not state funding.

Michigan Works! and Community Action are not unique to Ottawa County. They are both part of a national network. Michigan Works! is Michigan’s federally-funded workforce development organization, and every state has its version of Michigan Works!. Community Action is also part of a national network of Community Action Partnerships that provide home and housing-related programs.
A primary funding stream for Michigan Works! and the national workforce system is called the Workforce Investment Act (WIA) and it provides the bulk of the monies used for such activities as training when an individual has been approved to pursue a certificate or degree. WIA funds are also used to help people who have lost jobs find new jobs. OCMW has helped hundreds of job seekers get new jobs with scores of companies throughout Ottawa County.

Locally in Ottawa County WIA funding has assisted over 1,700 people through training since the current recession began in 2008. Since 2008 Ottawa County Michigan Works has had over 240,000 visits to its two service centers in Holland and in Grand Haven.

In Ottawa County WIA funds have helped Michigan Works! innovate in a system where implementing change can be difficult. “WIA dollars were used in bringing workshops to our service centers that reached out to white collar workers, like IT professionals. That was an area that workforce in general often neglected but we knew it was a key ingredient in our local economy that we had to reach out to. We did that successfully. WIA funds helped us innovate and implement new ideas,” said Joel Westmaas, program supervisor. “Without WIA funding our services would be severely impacted and our ability to serve the public and local businesses could wind down to a trickle.”

Ottawa County Community Action Agency (OCCAA) is also federally funded and is a partner agency with Ottawa County Michigan Works, sharing the same Executive Director, Bill Raymond.

OCCAA supports housing-related programs to qualified households that need temporary assistance in moving to financial independence. The threat to OCCAA contained in the House bill is a line item for the Community Services Block Grant (CSBG). The national Community Action network is partially funded by CSBG dollars. CSBG is the most flexible and one of the largest grants that OCCAA receives.

Current language reads that CSBG will be cut by $305 million nationwide. This number represents the largest percentage of flexible spending that OCCAA receives. If CSBG were to be cut by $305 million, OCCAA services locally would potentially cease.

“Without CSBG funding we would not be able to qualify people for utility assistance and then distribute the funds,” said Mark Kornelis, program supervisor. “That would leave over 600 households cold, without receiving utility assistance. The frustration would be having the funds from, say Walk For Warmth, but no means of distributing the funds to the people who need them. CSBG allows us to do that.”

CSBG funding allows the continuation of the free tax assistance program that Ottawa County Community Action and other CAAs administer each year for low-income households. Last year OCCAA provided the service for both Ottawa and Allegan counties. OCCAA was able through state and federal returns, to recoup over $2.5 million for low-income households, and bring that money back into the local economy. Through its various programs, OCCAA assisted over two thousand families last year.

“Both Ottawa County Michigan Work!s and Community Action are integral to the success of our communities and the local economy,” said Raymond. “It’s not just about the potential loss of jobs at the agencies, but by extension the sheer numbers of people we help stay on their feet through CAA so they don’t become a drain on the state’s system, and those we help through Michigan Works regain or retrain for employment. These two agencies play a key role in the success of our communities.”

The Michigan Works! and Community Action agencies in Ottawa County are not the only organizations that would see change. Every Michigan Works! throughout Michigan and the workforce system throughout the country would be affected by a $3.6 billion cut. The services of every Michigan Works! in West Michigan would be drastically reduced. This would directly impact the Michigan Works! service centers of Ottawa County, Muskegon/Oceana, Kent/Allegan, and every Michigan Works! along the lakeshore - as well as every Michigan Works! in Michigan. The hundreds of thousands of clients these service centers serve would be directly affected since they would no longer be able to receive the bulk of MW services.

Community Action agencies throughout Michigan and the country would be severely impacted if $305 million is cut from CSBG dollars. Collectively in Michigan Community Action assists hundreds of thousands of people to stay on their feet before they become a financial drain on the state. The loss of a federally-funded CAA has the potential to ripple into a larger drain on the state’s budget.

Since 2008, the Michigan Works! service centers in both Kent and Ottawa counties have been visited over 650,000 times, qualifying people for training, providing one-on-one job search assistance, holding workshops and more. The Michigan Works! Business Services units of both agencies have had over 35,000 contacts with employers, posting job orders, making community connections, collaborating with education and training centers, and providing other services.

Currently there are 2,450 qualified Michigan Works! participants in Kent and Ottawa counties enrolled in training. If the House budget passes as it reads today, each of these participants will need to either quit their training program or find another immediate source of funding.

Since 2008 Community Action of both Ottawa and Kent counties has provided 30,000 rides to seniors and the disabled. More than 540 homes have been weatherized, saving residents up to 30 percent in utility costs. In Ottawa County this program has allowed 18 crews comprising over 40 employees to leave unemployment and find work in an economy unfavorable to construction. Over 3,400 households have received utility payments – including money from Walk For Warmth. Free tax service to low-income residents have brought $11 million back into the Ottawa and Kent communities.

These services and many others would virtually disappear if the House bill passes as it currently reads.

Key funding streams for both Ottawa County Michigan Works! and Community Action Agency are listed in the current House budget H.R.1 as potentials for major cuts. If these cuts run too deep services at both Ottawa County Michigan Works! and Ottawa County Community Action Agency - and their national counterparts - could be severely curtailed. This would have an immediate and long-lasting impact on our local and regional community.