Council Finance Committee Wants To Review Grants
The 2009-11 Common Council is working their way through the first months of committee meetings and already there are changes afoot. The Finance Committee chair wants all grant applications to run through that council committee before they are voted on by the Common Council.
On the surface, the issue is about identifying what the financial impact of grant applications are to the City. Most grants require matching funds, and in some budget areas, it should be clear that the matching funds exists in existing budget allocations and are reserved for those expenditures associated with the grants. In most cases, that is easily determined at the department level, since grant applications originate at that level in the first place. With some grants though, the projects that they are allocated to extend past fiscal years, and so determining whether matching funds exist or not becomes more complicated. Having a look at long term financial impact is a good thing. But is it the purview of the finance committee of the Common Council?
There’s the practicality of having the finance committee review grant applications or awards too. Typically council committees meet once a month, so depending on the cycle, a grant could take months to make it’s way through council committees before moving onto the full council for a vote. That would fall under the unitended consequences of trying to understand the financial impact, and in turn create a financial impact of decreased revenues.
With State grants, and Connecticut in a precarious budget state, this could mean that grant funds dissapear during the process. Not a good outcome for Norwalk in the end. It would be interesting to see if the finance committee discusses the ramifications of making this process change and addresses the potential negative impact.