DENVER — A nonprofit working with Denver's STAR program was unable to spend hundreds of thousands of dollars the city allocated last year, according to city documents.
The city approved a $2.3 million dollar contract with the nonprofit Servicios de La Raza to connect people who interact with STAR program responders with culturally appropriate, longer-term services.
The nonprofit's CEO, Rudy Gonzales, told Denver7 last year he hoped to also bridge gaps that had developed between the STAR program and certain communities.
"There are some gaps, and I think those gaps are most specifically within our communities of color,” said Gonzales.
According to a memo sent from the Denver Department of Public Health and Environment (DDPHE) to the city council, the nonprofit is projected to have about $700,000 in unspent funds when its contract expires Nov. 1.
Tristan Sanders, the director of the community and behavioral health division at the Denver Department of Public Health and Environment explained the situation in a memo to the city council.
"Since it took longer than expected to on-board the network of providers and staff, identify the specific services needed, and build the referral pathways from STAR Emergency Response Teams to Servicios de la Raza, there is still approximately $700k projected to be remaining at the end of October," Sanders wrote. "In discussions and overall agreement with Servicios de la Raza staff and leadership, we feel the best approach would be to execute a no-cost extension of the contract to 2/29/24 at which time the full $700k would be expended. This will give an additional four months to evaluate how services are being provided and work with Servicios de la Raza on a new contract starting 3/1/2024. We expect to bring a revised contract before the Mayor’s Office and City Council in early 2024."
They're now asking the council to extend the contract’s expiration date by four months, which they say will give the nonprofit enough time to spend the money, evaluate its services, and negotiate a new contract.
The mayor's budget allocates over $6 million for the STAR program next year, which his office noted was an increase from this year.
Council members on the city’s council housing and safety committee shared concerns about whether STAR will be able to spend all the money.
"We are in a very tight budget year,” said Denver City Councilwoman Amanda Sawyer, who represents District 5. "The fact that you didn't weren't able to utilize your entire 2023 budget and us wanting to give you more money in 2024 is a tough one. Because if you can't use that money in 2024, then we can't give that to you, even though we want to."
City officials indicated they need to get more information from Servicios de La Raza.
The committee went ahead and approved the extension.
The matter now goes to the full city council for consideration.
Since STAR’s expanded program with Servicios de La Raza launched in April, it’s been able to connect nearly 230 people with a variety of support services, according to city officials.
Denver7 reached out directly to Servicios de La Raza to ask about its unspent funding, but messages were not returned on Sunday.
