Category Archives: Jeri Hughes

Trans group struggles with financial crisis

Earline Budd, transgender activist, Washington DC

Longtime activist Earline Budd is reportedly among THE staffers experiencing problems getting paid. (Blade file photo by Michael Key)

Transgender Health Empowerment, a non-profit group that has provided a wide range of services for D.C.’s transgender community for more than a decade, is struggling with a financial crisis that has prevented it from paying its employees on time and has triggered staff layoffs and resignations, according to multiple sources familiar with the organization.

Public records at the D.C. Recorder of Deeds office show that the IRS filed at least 10 liens against THE over the past three-and-a-half years. Most are due to THE’s failure to pay employee payroll taxes, the records show.

Sources familiar with the situation say the liens prompted the D.C. Department of Health to suspend some or all of its funding for THE for HIV/AIDS-related services. The funding suspension reportedly was triggered by a procurement rule that restricts city funding for vendors or contractors that are in violation of the law, including federal tax law, the sources said.

A former THE employee and current client said they each were told by THE staffers that a delay in city funding forced the group to cut back on its drop-in services at its headquarters at 1414 North Capitol Street, N.W., and to limit services to clients by appointment only.

“The whole month of March we didn’t get a paycheck,” said the former employee, who was laid off in April because of THE’s financial problems, the former employee told the Blade.

Among THE employees not getting paid or getting paid late are THE official and longtime transgender activist Earline Budd, THE Director of Programs Brian Watson, and transgender activist Jeri Hughes, sources familiar with the group said.

Top officials with THE and the Department of Health have not responded to repeated requests by the Blade for information about the cause of THE’s financial problems and the status of city funding for the group.

“At this particular time, there’s no comment,” Brian Devine, THE’s finance manager, told the Blade. Devine said THE Executive Director Anthony Hall also had no comment.

“We just had a board meeting and that was one of the issues we spoke of,” said Devine, adding that the board decided not to issue a statement about the situation at the present time.

DOH spokesperson Najma Roberts said she would make inquiries about the THE funding status when contacted by the Blade last week. As of press time this week she had not responded.

The Blade filed a Freedom of Information Act request with the DOH deputy general counsel, Phillip Husband, on April 3 seeking the information that the department has yet to release through Roberts, the press spokesperson. Husband said the department usually takes up to 15 business days to respond to a FOIA request.

“My biggest concern is THE’s clients,” said transgender activist Ruby Corado, director of Casa Ruby, an LGBT community center in Columbia Heights that caters to the Latino and transgender communities.

Corado said some of THE’s clients have been coming to Casa Ruby after being told that THE’s drop in center had curtailed its services.

Corado and other transgender activists called THE the D.C. area’s preeminent service provider and advocate for the transgender community.

They note that THE also operates the city’s only housing facility dedicated to homeless LGBT youth. The facility known as the Wanda Alston House has been nationally recognized as an innovative resource for LGBT youth that offers counseling, employment and vocational training, and other services.

Among THE programs funded by DOH is its highly acclaimed Comprehensive Risk Counseling Services or CRSC program, which offers risk reduction interventions for preventing HIV infection among transgender people, especially transgender women, whom experts say are at high risk for HIV. THE also offers HIV testing and counseling.

“THE is a transgender institution for D.C.,” Corado said. “There are a lot of people counting on its services, especially those living with HIV. It is an organization that cannot go away,” she said.

“So the question I have is what is the Department of Health doing about this,” Corado said. “Why aren’t they talking about what happens to those clients? Are those clients OK?”

Transgender activist Alexandra Beninda, who serves on the D.C. Human Rights Commission, was among those who praised THE for its work in the transgender community but said she was unaware that the group was having financial problems.

She said she hoped the community would rally in support of THE but expressed concern that news of the group’s problems had not gotten out to those who might be willing to help.

Mara Keisling, executive director of the D.C.-based National Center for Transgender Equality, said she, too, was unaware of the THE financial problems.

“They are the centerpiece for local transgender efforts,” Keisling said.

Records of the IRS liens against THE filed with the D.C. Recorder of Deeds show that between March 2010 and earlier this year the group owed the IRS a total of $260,075. The records don’t show how much of that amount was for unpaid taxes and how much, if any, was for interest and penalties.

The records show that THE has since made payments of $91,912 to pay off the back taxes and currently owes the IRS $168,163.

As a non-profit, tax-exempt organization, THE doesn’t pay taxes on its income from donors or from government grants and contracts. The records indicate that most of the money owed is for employee payroll taxes.

Due to THE’s refusal to comment on the matter it couldn’t immediately be determined what caused the underlying financial problems that prevented THE from paying its employee payroll taxes.

Ron Simmons, executive director of the D.C. AIDS service group Us Helping Us, which also receives city funding, said smaller community based groups like THE sometimes encounter cash flow problems when the city takes too long to reimburse the group for its services. He said DOH in the past has taken 90 days or longer to reimburse vendors and service providers.

“Among other things, they are the only LGBT homeless shelter for youth,” Simmons said. “We absolutely can’t let them go under,” he said of THE.

THE’s most recently filed IRS 990 finance report that is available for public viewing is for the fiscal year of Oct. 1, 2009 through Sept. 30, 2010.

The report shows that THE’s income for the year was $960,834 and its expenses came to $1,093,816, with a deficit of $132,982.

Stein Club special meeting upholds election of new officers

Gertrude Stein Democratic Club, Washington Blade, gay news

(Washington Blade photo by Michael Key)

More than 70 members of the Gertrude Stein Democratic Club voted by an overwhelming margin Wednesday night to uphold the election two weeks ago of three new officers who gained control of the club in an upset victory.

The vote came in a special meeting called one week earlier by the club’s current officers to consider whether to invalidate the Dec. 3 club election of Martin Garcia, 27, as president; Angela Peoples, 26, as vice president for legislative and political affairs; and Vincent Villano, 26, as vice president for administration.

“We were all very excited to reaffirm the election of Marin Garcia and his slate,” said outgoing Stein Club President Lateefah Williams, who lost to Garcia by a vote of 47 to 45.

“And I’m very happy that we’re going to be moving forward as a united Stein Club,” Williams told the Blade after the meeting.

In a gesture aimed at avoiding a rift between the club’s old and new members, Williams withdrew from contention for the club presidency in the event that the special meeting voted to invalidate the election of the new officers and called for a new election.

“The new members have a hill to climb here with the old members,” said Stein Club treasurer Barrie Daneker, who won re-election unopposed after Garcia and his supporters chose not to run candidates for the treasurer and secretary’s position.

Berrie Daneker, Gertrude Stein Democratic Club, Washington Blade, gay news

Berrie Daneker (Washington Blade photo by Michael Key)

“But I’m confident that once they see their leadership and if they produce, then Gertrude Stein will be stronger than we’ve ever been in our 37 years of existence,” Daneker told the Blade.

Some feared that a bitter argument would erupt at the special meeting over a proposed challenge to the validity of 17 of the 46 new members who joined the club less than a week before the election.

The new members, who Garcia and his supporters recruited, are believed to have given Garcia, Peoples, and Villano their razor-thin margin of victory over Williams and her slate of candidates seeking the two vice president positions.

But during nearly two hours of discussion, no one moved to take action against the 17 new members, who came under question during the past week when the home addresses for eleven of them couldn’t be verified. Others questioned the qualification of six of the 17 new members who joined under a special membership category with a reduced fee of $15 restricted to students, senior citizens, and limited income people. The club’s regular membership costs $35.

Although many expected the special meeting to divide along the lines of the longtime club members and the new insurgent members who gained control of the club, those speaking in support of upholding the election and withdrawing the challenge came mostly from the ranks of the old members.

Gay Democratic Activist and longtime Stein Club member Bob Summersgill said no one presented any evidence or valid rationale for disqualifying any of the new members.

“There is nothing in the bylaws that says anything about where you have to live,” he said. “There is nothing in the bylaws to define low income.”

Gay activists Lane Hudson and Steve Gorman, who are also club members of longstanding, said they were impressed with Garcia and his supporters’ political organizing skills that enabled bring in close to 50 new members.

Garcia told the meeting that he and the new members that supported him have been involved in local and national politics and Democratic Party activities. He said his objective are to strengthen the Stein Club by bringing in more members with diverse backgrounds so it can do more in its longstanding role as the city’s largest LGBT political organization.

Transgender activist and longtime Stein Club member Jeri Hughes, who was one of the members who challenged the club election, surprised some at the special meeting when she said the meeting should not vote on the question of invalidating the election or challenging memberships.

Instead, Hughes proposed bringing up the invalidation question at the club’s next regular meeting in January.

As she has in Facebook postings and in a Blade commentary, Hughes called the election a “farce,” saying the winning side “stacked” the election meeting with people who were “strangers” to the club.

While the new members acted within the club’s rules and bylaws, “that doesn’t make what they did right,” she said.

However, when fellow club member Ed Craft told her later that he planned to withdraw from the club because of his objection to the new officers’ takeover, Hughes urged him not to do so.

“I don’t think these are bad people,” she told Craft in a Facebook message Wednesday night. “I think they did something wrong…and foolish, but the club does good work and has done good work. We can still do good work. Leaving serves no purpose.”

Martin Garcia, Gertrude Stein Democratic Club, Washington Blade, gay news

Gertrude Stein Democratic Club President-elect Martin Garcia (Washington Blade photo by Michael Key)

Former club president Kurt Vorndran, who was among the longtime members who called for letting the election of the new officer’s stand, introduced a resolution calling for changing the club’s bylaws to restrict the ability to vote in the election of club officers to people who have been members for at least 30 calendar days.

The club voted to table Vorndran’s motion, with the intent to bring it up at the next regular meeting in January.

Craft told the Blade he believes many of the old members will withdraw from active participation in the club due to the flap over the election and for what he said was the failure of the special meeting to enable longtime members to raise concerns and ask questions.

“I feel the meeting tonight was a complete farce,” he said. “I feel it was staged, that Lane Hudson through his motions made it impossible for the meaningful exchange of information that was the purpose of this meeting to take place.”

Craft was referring to a set of rules governing the meeting that Williams and the existing Stein Club officers proposed at the beginning of the meeting. Nearly everyone president voted to approve the rules, which, among other things, limited the time people could speak on a specific issue to two minutes.

While Craft spoke to the Blade immediately after the meeting adjourned, club member Robert Brannum shouted to the members collecting their belongings and leaving the meeting room that he was outraged he wasn’t allowed to speak during the closing session of the meeting. When Brannum, who spoke earlier in the meeting, requested to speak at the closing session, Hudson and other members objected, saying the rules adopted at the start of the meeting prevented him from doing so.

“The whole purpose of having an orderly meeting is to achieve the objectives of the meeting, and that’s what we did,” Hudson told the Blade. “People had their say, they came together and we’re in a much better place than when the meeting began.”

In a statement she sent to the Blade Thursday morning, Williams said more effort will be needed to heal the rift between all of the old and new members.

“I think the meeting was successful as an initial first step at dialogue between long term and new members and bringing both groups together,” she said. “Unfortunately, due to some motions that ended the dialogue early, some members still feel that they did not have an opportunity to have their questions addressed.”

Williams added, “I think the key is to look at this meeting as the beginning of the process of healing and not the culmination of it. I hope that all members continue to engage one another to work through any concerns that may still exist. I wish the new board well and I hope that they continue efforts to help bridge the gap between long term and new members.”