Milwaukee's Social Development Commission trying to re-open

MILWAUKEE - The agency meant to help people get out of poverty, which then ran out of money itself, is trying to make a comeback. The Social Development Commission abruptly shut down in April 2024.

"We are excited to announce that SDC is in a position to begin its path forward and restart services and programs that are so desperately needed in the community. There’s 150,000 or so people who live in poverty in Milwaukee County and that is the primary constituency of SDC," said Jorge Franco, SDC chairperson and interim chief executive officer.

Unpaid bills

Dig deeper:

At the time of the closure, the group's attorney said it needed to shut down because it couldn't make payroll and needed to review finances. That abrupt closure left hundreds of people with uncompleted tax returns.

The SDC estimates its net deficit this year is $3.4 million. It’s saddled with hundreds of thousands of dollars in unpaid wages and hundreds of thousands in unpaid bills. 

"That’s painful. That’s why it’s my position that every one of those dollars needs to be repaid," said Franco.

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Given the financial scandal, FOX6 questioned Franco why the agency would not re-launch with a new organizational name and a fresh start.

"When living in crisis, we are very selective at who we allow into that crisis space of ours. And because there’s so much legacy in regards to SDC, it is the right entity to restore and deliver services that people often won’t accept otherwise, because they know their mother or father, grandparent was served by SDC," Franco said.

The backstory

The Details:

For 60 years, the SDC helped people in poverty. The SDC was set up in 1963. It once served as the city and county's community action agency. That means federal law mandated it help bring people out of poverty.

The commission was a quasi-government entity authorized by state, county and city legislation. It also received federal, state, county and city funds. 

It says it helped with roughly $90 million dollars in emergency rental aid that kept more than 10,000 families in houses.

The SDC says it provided more than 1.75 million hot meals a year for children and their families.

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It also says it helped people file their taxes, with more than $300 million dollars in tax refunds and the earned income tax credit. 

"The earned income tax credit has been called the most effective solution against poverty. But, I promise you, $30-40 thousand for a low-income family earning $18,000 a year with dependents, children, is transformational. It’s God-gifted transformation."

Now, the SDC itself needs the help.

What's next

Timeline:

The SDC board is meeting on Thursday. On the agenda, they’ll hear about finances and restructuring.

The SDC board is now smaller, as two board members resigned. 

Portions of this article were formatted using A.I. FOX6's Jason Calvi and an editor reviewed it for accuracy and tone prior to publishing.

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