Local Nonprofits, Hospitals Brace for Shutdown

“All non-profits always have contingency plans.”

That’s the approach to a pending state government shutdown that Cathy Maes has.

Maes is executive director of Minnetonka-based , and like so many non-profit agencies and organizations throughout Minnesota, ICA is bracing for the repercussions if Gov. Mark Dayton and the legislature cannot agree on a state budget by midnight June 30.

ICA would not be hurt by a shutdown directly because it does not depend on state money. But Maes does expect more demand from residents who are individualy hurt by the shutdown. 

“We anticipate people then coming into our locations who normally have not used us,” she said.

Other nonprofits are more vulnerable. Kathie Prieve, co-executive director of Vail Place, said her agency receives a lot of state and county financial aid. Located in Hopkins and southwest Minneapolis, Vail Place assists about 1,800 persons affected by mental illness.

“If after three months, the budget impasse still exists, we would then have to start using our reserve funds,” she said.

Fairview Hospitals, including , wants to continue serving all of its patients, including those that receive assistance from the state, said spokesman Ryan Davenport. The hospital has approached the attorney general’s office to see if it can still be reimbursed for those services but hasn't heard back yet.

“We certainly have been talking about, and planning for, a possible shutdown,” Davenport said. “Regardless of the situation, we are encouraging people who need to use one of our hospitals or clinics to do so. People who need care should do so and not just automatically go to the emergency room which is not a good use of our resources.”

Park Nicollet in St. Louis Park declined to comment.

ICA’s Maes says her agency, on average, serves about 700 households per month—or about 2,100 people who reside in an area from Hopkins to Shorewood.

“Historically, we have had great support from the local communities and we expect that to continue,” she said. “However, we also assist people on issues related to housing needs and get state and county support for that, which amounts to about one-fourth of our budget."

At Vail Place, many of the people served receive some sort of public housing assistance or subsidies as well as medical assistance.

 “If this stretches out, we would probably have to make cuts, such as not replacing a staff person who may leave,” said Prieve. “Obviously, we are in a time where we really will appreciate any donations."

 She said Vail Place is going ahead with plans for a July 16 fundraising event at Lake Calhoun.

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Want to know how a shutdown would affect other government entities?

•  to find out how it would affect city services.
•  to find out how it would affect students.
•  to find out how it would affect Hennepin county.
•  to find out how it would affect Minnehaha Creek Watershed District.
•  to find out how it would affect the DNR.