NORWALK, Conn. – Norwalk Economic Opportunity Now (NEON) can expect more involvement coming from Norwalk City Hall – but that involvement is not likely to have any money attached to it in the current budget cycle.
Incoming Mayor Harry Rilling said Monday night that there is no money available even if something could be worked out to satisfy the city that it would be spent and accounted for properly.
“The money (Mayor Richard Moccia) did not give to NEON no longer exists,” Rilling said. “It went to keep the 4 percent-plus tax hike from being even higher.”
Moccia stopped the NEON funding, budgeted at $1.3 million annually, after a federal audit showed NEON was misspending grant money and not keeping proper financial records. Moccia originally insisted that the money would be withheld until the agency removed then-President and CEO Joe Mann from office. Mann left, but the spending and accounting problems continued and Moccia refused to restore funding.
Rilling said Monday night that he had a 90-minute conference call Sunday with the Rev. Tommie Jackson, NEON’s interim president and CEO; state Sen. Bob Duff; state Rep. Bruce Morris; NEON Board of Directors Chairman Michael Berkoff; and board member Jack O’Dea to discuss the situation that has left dozens of families without needed social services, including Head Start.
“We are at a point in time to make some tough decisions and work together closely to quickly restore services provided to so many people, both in Norwalk and the other towns and cities served by NEON,” he said. “I’ve reached out to Stamford Mayor-elect David Martin to see what we can do together” to help the situation.
Rilling, who met Monday afternoon with Duff and U.S. Sen. Chris Murphy, said NEON and Community Development Institute (CDI) — the Colorado-based company named to run Head Start on an interim basis — were close to an agreement to allow CDI to get Head Start open again this week. The two agencies have been working with the federal Administration for Children and Families (ACF) to come to an agreement on the use of the Nathaniel Ely and Benjamin Franklin schools.
Rilling said it was his impression that the NEON board is ready to take action to restore the agency’s credibility in order to resume services and get people back to work. In the past two weeks, the board named Jackson to turn the agency around, laid off about 100 employees to cut payroll and moved to mend fences with the South Norwalk Community Center, and to make good on overdue electric bills.
Rilling emphasized there is a partnership between the city, state and federal government to help right the ship. He said options were discussed for moving forward, but declined to reveal what those might be. He said he had hoped that a federal receiver might be appointed that would allow for Norwalk to make money available on a month-by-month basis as long as a detailed, to-the-penny accounting was provided. But, he said, even if a receiver were appointed, Norwalk just does not have the money to offer.
Rilling said he was made aware of some agreements that were made between NEON and the city for certain payments the city would make regarding the buildings. He said he would meet with Finance Director Tom Hamilton to find out about that issue.
“The most important thing is to restore services to the children and families who depend on them, and to help the employees who were laid off just before the holidays, some of whom are in danger of losing their homes.”
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