The Shasta County Health and Human Services Agency announced that it will ask the Shasta County Board of Supervisors to close the Opportunity Center in Redding because of "financial instability."
That's after financial assessments predicted the center's expenses will exceed its revenue by more than $1 million during the 2022-2023 fiscal year, Deputy Branch Director Julie Hope said in the announcement, issued Friday.
"Relinquishing the OC would allow a state-funded regional agency to assign the program to a new provider," the announcement said.
The Opportunity Center at 1265 Redwood Blvd. provides job training for Shasta County residents with disabilities.
Health and Human Services Agency administrators will report on the Opportunity Center's financial situation at the next Shasta County Board of Supervisors meeting (Tuesday, Feb. 28). At that time, presenters will ask the supervisors to shut down the program by June 30. "After closely examining the OC’s lack of client referrals and increased costs, it is Shasta County’s best financial option," Hope said.
Hope gave a list of reasons for the agency's deficit: Among them "mismanagement due to poor financial oversight"; minimum wage increases; rising costs for staff salaries, benefits and administration; fewer referrals during the COVID pandemic; disinterest in blue collar jobs and other issues.
In January, Health and Human Services Agency leaders requested supervisors approve a county general fund loan to cover the center's $1.05 million negative cash flow. But "continued loans are not feasible," Hope said. "They would draw general-fund money from other crucial county services."
Since last August, Health and Human Services Agency administrators discussed transferring the center to a non-profit provider, "the most common model of operation statewide," according to the announcement.
More:County program that gets Shasta residents with disabilities jobs could shift to nonprofit
In an Oct. 4 meeting, supervisors voted 5-0 to continue looking into the idea of transitioning the center to a private nonprofit ― after discussing questions and concerns voiced by stakeholders. "We just need to know a lot more about how we’re going to do this, how would this transition work, how would these clients be impacted,” District 1 Supervisor Joe Chimenti said.
“Regardless of how we got here, we are working together for a smooth transition, making sure to take care of staff and clients,” Hope said.
See a copy of the HHSA's report with financial details in the Board of Supervisors Feb. 28 meeting agenda at bit.ly/41sCijR.
David Benda contributed to this story.