DEI Commission could ‘cease to exist’ in 2024 without another round of funding, its leader says

Expectations were notably high when Erie County Council voted to create the Diversity, Equity and Inclusion Commission in the fall of 2021.

Former councilmember Carl Anderson, who served as chairperson at the time, called the commission an investment of “historical significance,” one that could “change the trajectory of Erie County.”

Former vice chairperson Kim Clear said she hoped the commission would help empower minorities, not just in the aftermath of the COVID-19 pandemic but “for the next four years, the next 40 years and the next 400 years.”

But just two years later, as council prepares to adopt the 2024 budget, the commission’s future is in doubt.

The commission, which goes by Diverse Erie, is expected to run out of money by the middle of 2024.

Diverse Erie Chief Administrative Officer Gary Lee said the commission has a remaining balance of $700,000 out of its $3.5 million allocation of American Rescue Plan funds.

While the commission was originally allocated a second round of $3.5 million, Erie County Executive Brenton Davis re-allocated those funds and has not included a second round for the commission in his proposed 2024 budget.

County Council members, in turn, are wary about adding new expenses to a budget poised to include a 14.3% tax increase, which, according to Davis, is required to raise $12.1 million in revenue to fund higher expenses than in 2023.

“If County Council decides for whatever reason not to approve more funding, then the commission would cease to exist as we know it,” Lee said.

The nine-member commission, which was formed in the wake of County Council declaring racism a public health crisis in 2020, has sought to empower and invest in historically disadvantaged — in particular, Black and brown — populations affected by the COVID-19 pandemic.

In its first year, the commission hired staff, wrote bylaws and crafted grant programs aimed at lasting change. Throughout its second year, the commission has awarded several of those grants.

Davis, a Republican, recently told the Erie Times-News that funding the commission, either with ARP funds or the general fund, would be a "hard no," given what he described was the commission's inability to leverage its $3.5 million in funds.

"DEI has not raised a single dollar," Davis said. "So, I mean, to me, it just shows they're not willing to raise the funding."

Davis pointed to the county's recent ARP investments in projects for Penn State Behrend and Gannon University, and how both schools leveraged those dollars, brought in more money and allowed for a better return on investment.

"If we gave (the commission) $3.5 million, they should have had to have raised $3.5 million," Davis said. "I mean, they're not even meeting the basic dollar-for-dollar match that everyone else is required to do."

Lee, however, said the commission has attracted $1.1 million in outside investments to support its mission, with contributors like the Erie County Redevelopment Authority, the Erie County Gaming Revenue Authority, the Erie Community Foundation and the Enterprise Development Fund.

Lee said the commission has also leveraged $500,000 to launch a sustainable $1.6 million fund that will support the creation and growth of minority-owned businesses in the county.

“I think the question that Erie County leaders have to ask themselves is what type of Erie County do we want to create?” he said. “We talk about being ‘open for business.’ We should also make sure people feel welcome to come here to do business.”

‘It would definitely be a huge loss for Erie County’

Lee stressed that the mission of Diverse Erie is to invest in initiatives that advance equity in the county.

He pointed to the commission’s two hallmark grant programs: the Small Business Mini Grant program and Generational Impact Grant program.

In July, Diverse Erie awarded more than $300,000 in grants to 29 minority-owned small businesses.

Lisa Heidelberg, owner of Dinner is Served by Lisa, said her $15,000 grant was a “blessing” that allowed her to pay for rent, furniture, inventory and higher wages for her employees.

“Generating revenue is a challenge for small businesses,” she told the Times-News. “That grant was definitely needed. It’s a program that needs to continue.”

The Youth Leadership Institute, which aims to empower young people and alleviate generational poverty, was awarded a $100,000 Generational Impact Grant in June.

Edison Nicholson, founder and CEO of the Youth Leadership Institute, said the award is helping him renovate his headquarters at 1306 East Lake Road, improving accessibility and delivery of services.

“It would definitely be a huge loss for Erie County,” Nicholson said about the potential loss of Diverse Erie. “More people need to take a serious approach when it comes to looking into diversity and inclusion. It’s very important for these types of initiatives to be planted right here in our community.”

The commission has awarded roughly $1.5 million in Generational Impact grants.

Lee said a second round of funding will help the commission launch homeownership and educational initiatives.

County Council still undecided on commission’s fate

As council prepares to adopt the 2024 budget before Nov. 30, it remains uncertain whether Diverse Erie will be given a lifeline ― or be placed on the chopping block.

Lee said at a recent commission meeting that Democratic Councilman Andre Horton would be introducing an action sheet ― essentially a proposed amendment ― to add funds to the commission.

Horton, however, said he hasn’t made any commitments.

“The action sheets that I’ll offer up will be to take from the budget. They probably won’t be adding to the budget,” Horton said at a Nov. 14 public hearing. “I may offer some to restore some funding. But it doesn’t look good. It looks like it’s going to be a tough budget.”

Republican council members Ellen Schauerman and Charlie Bayle, along with Democrats Jim Winarski, Terry Scutella and Tom Spagel, said they also haven’t made any commitments and would like more deliberations on the matter.

After two day-long budget sessions on Nov. 4 and Nov. 18, council has yet to introduce any action sheets to inject funds into the commission.

“I support the organization and I support the mission,” Spagel told the Times-News. "But $3.5 million is an awful lot of money, especially when everybody sees taxes are not going down.”

A worthy county investment?

Council Chairman Brian Shank said he would not support funding the commission further, insisting council should focus on county investments and that the commission has been centered almost exclusively on the city of Erie.

"The city is part of us but we need to break that bad habit of going to county government to get financing for the city of Erie," he said.

By re-allocating the ARP funds, Shank said the county has been able to provide much-needed GAP funding for municipalities that have long been neglected.

These include a $250,000 check to North East township to extend a sewer line and spur future development; and a $250,000 check to McKean Township to help replace a sewage plant near a residential area.

Lee countered by telling the Times-News that the city is part of the county and "the stronger the city becomes, the stronger the county becomes."

“The Diverse Erie team is pursuing external funding opportunities, many of which require the commission have at least a five-year track record of operating successfully,” he said. “This work is just beginning and requires an opportunity to succeed.”

Staff writer Ed Palattella contributed to this report.

Small business grants awarded: Diverse Erie awards $300K in 'mini grants' to minority-owned small businesses

Diverse Erie awards GIG grants: Diverse Erie awards grants to Erie's Black Wall Street, Center for Arts and Technology

A.J. Rao can be reached at arao@gannett.com. Follow him on X @ETNRao.

This article originally appeared on Erie Times-News: Diverse Erie will ‘cease to exist’ in 2024 without more funding