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NonprofitsTuesday, November 3

Community Action Duluth appeals the state's push to strip its Community Action Agency status

The Daily Duluth teamFrom today’s edition · 1 min read · 2 sources

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is fighting the state's push to strip its Community Action Agency status. The Minnesota Department of Children, Youth, and Families confirmed Friday that the nonprofit filed a formal appeal before the Oct. 31 deadline, sending the dispute to an administrative law judge. The Minnesota Court of Administrative Hearings will handle the proceedings.

$700,000in state and federal funding the de-designation threatened

The appeal halts the de-designation process, at least temporarily.

Earlier in the week, CAD had said it was prepared to accept de-designation if the state met conditions in writing. Board member Tim Meyer said the state didn't address four of them, so the board decided to appeal. The state says it would reimburse eligible expenses only if CAD stays in compliance.

“As of October 30, CAD has not received that clarification.”

Classie Dudley, executive director, Community Action Duluth
  • Owed, per Meyer: over $300K in reimbursements for completed work
  • Hearing: Minnesota Court of Administrative Hearings
  • Status: de-designation halted, at least temporarily

CAD moved from a conditional exit to a formal appeal

  1. Aug. 17CAD begins asking DCYF why payments remain withheld
  2. Oct. 26CAD tells DCYF it is prepared to accept de-designation, with conditions
  3. Oct. 28DCYF says it has not yet received a formal appeal request
  4. Oct. 30CAD files a formal appeal, and DCYF confirms it
  5. Oct. 31The state's deadline to appeal, set for 5 p.m.

Sources: WDIO.com, northernnewsnow.com

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