Community groups left in dark over funding

Thousands of cash-strapped community groups across B.C. are in financial limbo as at least $36 million in provincial lottery funds remains frozen.

None of the groups polled by The Vancouver Sun have been told whether they are getting any grants at all this year.

The ministry of housing and social development revealed in late July it had frozen the funds as part of a review of grant programs as the government scrambles to trim budgets.

A wide range of gaming grants provided $156 million to 6,800 charitable and community groups last year, including $40.5 million to 779 groups in Vancouver, among them the Trout Lake Little League, Vancouver Symphony Society and the Burnaby Canoe and Kayak Club.

Most receive money through "direct access" grants to community sports, arts and service groups, as well as parent advisory council (PAC) grants.

Parent advisory councils that applied for grants to build playgrounds were supposed to be notified whether they would get a grant by March 31. But more than four months later, they still haven't heard.

Little league sports, seniors' clubs, school parent associations, softball teams and soccer clubs are supposed to hear back by Aug. 31 and are growing anxious.

More than 1,700 organizations that applied before May 31 haven't heard back from the government, according to a Vancouver Sun analysis of the applicants' list.

A spokesman for the ministry, which distributes the B.C. Lottery Corp. grants, told The Sun the review would be completed soon.

Premier Gordon Campbell and finance ministry officials did not return calls.

B.C. Association of Charitable Gaming president Susan Marsden said that while the funds are in limbo, charities are still providing services in the sports, arts and social services sectors.

"If the government extends this freeze beyond August 2009 or, unthinkably, refuses to disperse the funds they have committed, then long-term effects may mean program cancellation and organization collapse in addition to legal action," Marsden said in a news release Friday.

The association speaks for 2,000 non-profit groups that benefit from gaming revenues.

Charities were not informed of the government review, Marsden said.

Steve Baker, an executive member of the Vancouver district PAC, said the Hastings PAC received a grant for a playground at an elementary school but "that was long before the [provincial] election."

"My best guess is the ministry is taking a hard look at what they're doing with any of the grants out there in trying to do their fiscal diligence in balancing the budgets," Baker said.

Larry Hayes, executive director of the Burnaby Minor Hockey Association, said his group relies on gaming grants. This year, the association applied for an $80,000 grant, and counted the funds in its budget, which its members approved in May.

"With our [2009-10] minor hockey season now getting underway, we would be faced with a real hardship if the grant was not forthcoming this year," Hayes said.

Only two of 456 parent advisory and district parent advisory council applicants that applied before May 31 have heard about the status of their financing.

Any decision to slice into gaming-funded programs would constitute "a massive breaking of a contract" with the people of B.C., said Spencer Herbert, NDP MLA for Vancouver-West End and tourism, culture and the arts critic.

Victoria gained the trust of charities with its commitment to gaming funds as gambling expanded across B.C., he said.

"This affects every person in B.C. There hasn't been one person who hasn't benefited from these investments."

He said he fears the Liberals will bury the cuts in the provincial budget scheduled for Sept. 1.

"If school PACs come back [in September] and discover they can't buy textbooks or help needy families in schools, there'll be some mighty angry people."

The government admitted earlier this month it was unlikely to meet its target of a deficit of $495 million in 2009-10.

The freeze comes at a time when the B.C. Lottery Corporation has netted record profits.

Profits for the year ending March 31 reached $1.091 billion, up slightly from the $1.089 billion a year earlier. Revenues dropped by just $9 million to $2.55 billion.

The BCLC was able to increase profits despite falling revenue by trimming expenses without cutting back on employees, said Kevin Gass, BCLC's vice-president of corporate affairs.

The 65-member Vancouver Philharmonic Orchestra gets about $20,000, or half of its annual operating budget, from a gaming grant, according to VPO president Cathy McCashin.

"We might have to slice [our budget] and rely more on donations. But to be in jeopardy like this is worrisome," McCashin said.

Just over half of BCLC's revenues come from casinos, 37 per cent from lotteries, and the rest from community gaming centres.

Slot machines made up the bulk of revenue at casinos (almost 72 per cent) followed by table games (27 per cent) and poker.

mfhill@vancouversun.com

rdalton@vancouversun.com