Local
SDC has six board members as debt cases move through court
The Social Development Commission’s board has fallen to six members, while lawsuits over unpaid wages and vendor bills leave key financial questions unresolved. A planned presentation on bankruptcy options has not been rescheduled publicly.
The Social Development Commission is down to six board members as it faces court claims over unpaid wages and vendor bills, and the public is still waiting for a presentation on possible bankruptcy options for the troubled anti-poverty agency.
An SDC board meeting expected to include attorneys from Foley & Lardner LLP discussing debt-management alternatives did not take place. The law firm had originally been scheduled to present at an Oct. 15 meeting, but only three board members attended—too few to establish a quorum. No new meeting date had been posted as of Oct. 21.
SDC once provided Milwaukee County residents with services including tax assistance, home weatherization and job training. It halted operations amid financial turmoil about two years ago.
A lawsuit brought by information technology contractor TriShulla LLC was dismissed Oct. 15, according to court records. TriShulla had sought about $472,000, alleging SDC failed to pay for contracted work that included a software platform and mobile app.
The parties had been discussing a settlement. At a Sept. 17 board meeting, interim CEO and board chair Jorge Franco said SDC was negotiating to reduce the claimed liability to $207,000. The court had set an Oct. 2 deadline for the parties to file documents or indicate they wanted to proceed with the case; otherwise, it would be dismissed. It was not clear whether the dismissal followed a resolution, and representatives for SDC and TriShulla did not respond to questions about whether the claims could be filed again.
A separate lawsuit filed by the Wisconsin Department of Workforce Development concerns wages and benefits allegedly owed to former SDC employees. The state’s attorney general’s office requested a $370,658 summary judgment on Oct. 7. At a status conference, the state said negotiations had reached an impasse. A summary judgment hearing is scheduled for 10 a.m. Dec. 16.
At the Sept. 17 board meeting, Franco said SDC would pay former employees, including for accrued paid time off, when it had the resources to do so.
The board also lost another commissioner Oct. 15, when Michael Harris resigned. Harris, chief of staff and interim deputy superintendent of operations for Milwaukee Public Schools, had been appointed to the SDC board by the district in May.
In a resignation letter, Harris said he remained committed to serving county residents living in poverty and was grateful for the opportunity to serve. The following day, MPS Superintendent Brenda Cassellius told Franco the district would not appoint a replacement at this time, citing its commitment to students and families through its own programs and partnerships.
Harris was the third commissioner to leave within a week. Pam Fendt and Richard Diaz resigned Oct. 13, and their appointing agencies have said they do not plan to fill those seats amid concerns about SDC’s management and governance. The board is now one-third of its intended 18-member size under the agency’s bylaws and local ordinances, further complicating its ability to meet and address the organization’s financial future.