On July 1, the ELRA will join other youth, recreational and art programs under authority of the city’s Department of Parks and Recreation.
The city council voted unanimously Tuesday to allow the merger, which some consider a big improvement.
“It was way overdue,” Councilmember Bill Sharp said. “ELRA was going to go bankrupt anyway. It was time the city took over.”
ELRA has been experiencing financial problems during the past few years said Tim McCaffrey, director of East Lansing’s Department of Parks and Recreation.
“What has occurred over the years is that ELRA has experienced some tough times, most significant is the acquisition of the Health Core Fitness Center. Unfortunately, the facility did not generate sufficient revenues,” he said.
ELRA Board Chairman Bruce Baker said everyone knew the takeover was coming.
“It is now just harder for ELRA to be economically sufficient,” he said. “It’s a different world from when ELRA was formed.”
Last September, the city loaned ELRA $50,000 and the East Lansing school board donated $50,000 to help pay salaries for its six staff members and more than 40 contracted employees.
Even that wasn’t enough to keep the programs out of trouble.
“ELRA had a general fund to support downturns, but the fitness center drained this fund,” McCaffrey said. “It was left with an over $300,000 debt.”
This debt will be taken in by the city and although it may seem problematic, McCaffrey said the city is not worried.
“There is some risk for the city, but we are confident we can over time create a plan to generate efficient operating revenues,” he said.
But not everybody sees the takeover as a good thing. Some fear the city’s takeover means programs will be cut.
Okemos resident Antoinette Tessmer said those teaching at Bailey Community Center, 300 Bailey St., are uneasy about the prospect.
“Teachers seem to be anxious. It’s like they see this is not changing for the better,” said Tessmer, who attends an ELRA yoga class. Her son takes a youth tap class through the program.
“Since we aren’t sure what’s going on, it’s hard to schedule for the fall,” she said. “It’s hard wondering what is going to happen and how things will affect the programs with my kids.”
Despite its financial troubles, many see ELRA as a benefit to the community.
“My daughter has been with ELRA for three years,” East Lansing resident Cindy Mannon said. “I think it is a great program for kids and I am very happy with ELRA.
“I guess things can only get better for them financially.”
McCaffrey said he wants to set straight any kind of worries students and teachers may have about classes at the Bailey Center being cut.
“It is premature to make a determination,”he said. “We will take a close look at fees and determine as best we can at what expenses we need to recover. We will make this economically feasible for East Lansing.”
And ELRA officials say the programs’ home isn’t going anywhere.
“No changes will come to the Bailey Center,” Baker said. “The city should use it just as it is being used now.”
With fears and uncertainty still hanging overhead, Baker said he is optimistic about programs move to city government.
“ELRA sees this as a real growth opportunity for ELRA programs,” he said.
Brandon Bennett can be reached at benne218@msu.edu.
