The Social Development Commission has about $2,770 in cash and a preliminary 2026 net deficit of nearly $3.5 million, its leaders said Tuesday as the Milwaukee anti-poverty agency weighs bankruptcy options and works to restart services that have been largely shut down since April 2024. The financial outlook was presented at a news conference at the NAACP Milwaukee Branch. SDC board chair and interim CEO Jorge Franco said the agency is beginning a process to restore its work, while emphasizing that its debts must be addressed. The board is considering bankruptcy and other ways to manage what it owes. “We’re looking at bankruptcy alternatives,” Franco said, adding that the agency is also working on management and other steps needed to move forward. The agency’s crisis has also prompted two board resignations. Commissioners Pam Fendt and Richard Diaz submitted their resignations Tuesday. United Way of Greater Milwaukee & Waukesha County, which appointed Fendt, said it will not nominate a replacement, citing concerns about SDC’s management and governance and a lack of meaningful progress toward securing funding to provide community services. Diaz, the Milwaukee Area Labor Council’s representative, said he was leaving because of concerns about Franco holding both the board chair and CEO roles, the board’s response to community concerns and the absence of a clear strategic plan. He said he joined the board hoping to help restore services but no longer believes current leadership is likely to do so. Franco said he continues to serve at the request of commissioners who believe he can turn the agency around. He said he was not concerned about vacant seats and expected United Way to appoint a representative and fund SDC again in the future. SDC, founded in 1963, has provided career, education, food, housing, youth and senior services. Weak internal financial controls contributed to the agency’s inability to pay employees and its shutdown in April 2024. A limited reopening attempt in December 2024 did not lead to a full restoration of services. Leaders said they hope to reestablish the Social Development Foundation, a separate nonprofit that could receive unrestricted private donations while SDC works to rebuild trust with community members and government funders. They are also exploring a return to free tax preparation. Franco said the IRS invited SDC to reapply for the Volunteer Income Tax Assistance program, which previously helped low- and moderate-income residents file returns and access tax credits. Any application would be subject to IRS review, and SDC says it would not accept funding until it has an appropriate management structure in place. Franco also raised the possibility of reviving a proposed credit facility of up to $15 million from Wings Credit Union. The financing could help cover expenses while the agency waits for reimbursement-based grants, he said. The lender remains interested, according to Franco, though the board declined to advance the proposal in December. The board was scheduled to meet virtually at 5:30 p.m. Thursday, Oct. 15. Its agenda included a presentation from Foley & Lardner on bankruptcy restructuring options under Chapters 7, 9 and 11.