The Sconi

The Social Development Commission (SDC), Wisconsin’s largest anti-poverty social services agency, closed abruptly in late April following a series of scandals that spanned over three decades. The future of the SDC remains uncertain as its most recent board chair, Elmer Moore Jr., and its chief executive officer, George Hinton, have left their positions after the recent misallocation of $100,000 in federal home-weatherization program funds and non-payment to contractors.

The closure has brought renewed attention to an agency that has operated more than two dozen social programs funded by up to $60 million in annual federal grants. However, the SDC lacks direct state, county or local supervision. Its sole oversight comes from an 18-member board of directors that has struggled with attendance issues over the past year.

According to a review by the Badger Institute, no fewer than three board members were absent for every meeting. Half of these monthly meetings lasted less than 45 minutes. Since the agency’s closure and subsequent resignations, the board has met weekly for lengthy discussions, most of which took place behind closed doors.

William Sulton, the SDC’s outside legal counsel, revealed this information to the Badger Institute. He also noted that some problems were inherent in what was thought to be an idealistic and inclusive board structure for community action agencies created by the Economic Opportunity Act of 1964.

In addition to elected officials, board members include representatives from various organizations such as the African American Chamber of Commerce and Milwaukee Public Schools. Individuals representing low-income families are elected in six Milwaukee districts.

Ken Harris, host of Truth in the Afternoon on 101.7 The Truth radio station criticized this process stating it "makes absolutely no sense." He believes this leads to mismanagement as agencies often hire friends and family instead of seeking out qualified individuals.

Robert Miranda, a longtime community activist expressed concern about lack of oversight leading to wastage of taxpayers’ money. He cited lax control over weatherization and lead-abatement work funded by federal grants.

The Badger Institute has traced a pattern of board struggles, mismanagement and lack of accountability at the SDC that goes back more than 30 years. The latest scandal unfolded quickly in recent months when it was revealed that some contractors hired by the SDC weren’t getting paid for weatherization services.

The state Department of Administration and the City of Milwaukee have begun a review of SDC spending, including $10.4 million received from the federal American Rescue Plan Act. While they found no evidence that the money spent by the SDC was misused, it owes contractors at least $219,647.

As a result of these issues, thousands of area residents have lost access to many programs offered by the group. An unknown number of contractors reportedly haven't been paid and several employees still haven't received their last paychecks.

Despite these challenges, Sulton stated that the SDC intends to reopen with support from Gov. Tony Evers' office and heads of several state agencies through which federal community action funding flows.