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Last year, youth in Maupin had the opportunity to join a summer program that brought them on field trips across the state. It was run by South Wasco Youth Programs, a nonprofit serving about 110 students in north central Oregon. 

鈥淲e鈥檙e in a rural, impoverished area, so to do that was pretty amazing,鈥滵irector Amber Anderson said,

Anderson was able to pay for those trips last year through a $45,000 summer learning grant from the state.

This year, she got nothing. 

鈥淚鈥檓 really upset, I鈥檓 not going to lie,鈥� she said about having to cut field trips for kids.

The reason: a new requirement from the state that grant recipients have additional insurance coverage for sexual abuse and molestation claims. 

In 2021, the State Legislature approved $40 million to go toward summer learning programs offered by community-based groups. More than 500 took advantage of the money. This year, the state approved nearly $48 million for the grants, but because of the insurance requirement 376 groups were able to receive grants this year, a 25% decline. 

The insurance requirement

During the summer of 2021, the Oregon Community Foundation was in charge of distributing grants. It required grantees to have insurance, but did not require they specify the different types of coverage. The foundation is a nonprofit unaffiliated with any state or government agencies, and it issued the grants as donations. 

This year, the Oregon Association of Education Service Districts was in charge of awarding the grants to community groups. Because it is a quasi-government agency 鈥� its fiscal agent is the Clackamas Education Service District, a taxpayer-funded public entity 鈥� the Oregon Department of Justice had to review the application process. The department found that the additional sexual abuse and molestation insurance would be required for community groups as it is for schools. 

In March, Jennifer Brenden, program administrator at the Oregon Association of Education Service Districts and the Oregon Department of Education, learned the additional coverage would be required and tried to do everything possible to get it changed.

“To have this process play out in the middle of summer was unnecessary. It鈥檚 not insurance that鈥檚 necessary for our operations, it鈥檚 insurance that鈥檚 necessary to meet a requirement that鈥檚 outdated and misplaced by the Legislature.”

Matt Boulay, executive director, Salem Art Association

Oregon school districts and many large nonprofit community groups such as the YMCA and Boys & Girls Club already have coverage for sexual misconduct and molestation claims, but small community groups and nonprofits have not needed it to operate. It can be difficult to secure and be prohibitively expensive, Brenden said.

鈥淭he Department of Education worked really hard to figure out workarounds and how to provide support. Together we tried everything, turned every stone,鈥� she said.

In the end, getting rid of the requirement would involve changing state law, and there was nothing that could be done fast enough. 

Many groups learned in the middle of filling out grant applications in June that they would no longer be eligible. It disqualified the South Wasco Youth Programs.

鈥淚 run a very small nonprofit,鈥滱nderson said. 鈥淲e bring in maybe $95,000 a year. So to buy $10,000 worth of insurance? That鈥檚 not even reasonable.鈥�

A few weeks later, the education service districts鈥� association announced it was able to allow groups to use grant money to pay for the insurance. This set Anderson on a quest to find insurance. 

鈥淏y the time I then submitted the application all the money was gone,鈥� she said. 

Brenden said groups were emailing and calling asking her what had happened.

鈥淭here were some real tough conversations after that,鈥� she said. 鈥淚t鈥檚 a limited pot of dollars. It鈥檚 not available forever. We went back to ODE and asked: 鈥楢re there any more dollars for these organizations?鈥� And we were told there wasn鈥檛,鈥� she said.

Matt Boulay, executive director of the Salem Art Association, was able to secure the extra insurance for his group by mid-July and finish submitting his grant application in time to get funding. But because it all came through so late, the group will use some of the grant money to continue funding activities through the rest of this year. 

鈥淭o have this process play out in the middle of summer was unnecessary,鈥� Boulay said. 鈥淚t鈥檚 not insurance that鈥檚 necessary for our operations, it鈥檚 insurance that鈥檚 necessary to meet a requirement that鈥檚 outdated and misplaced by the Legislature.鈥�

Fewer groups got more money

Average grants increased from $75,000 in 2021 to $150,000 this year because fewer groups received money. In Multnomah County, 165 groups received grants last year. This year, 96 did. But the total amount of the awards for the county was nearly $1.2 million higher this year than last year. 

Woodburn-based nonprofit CAPACES received $385,000, almost double its 2021 award. The additional money allowed the group to offer programs in Salem, Turner and the MacLaren Youth Correctional Facility, as well as Woodburn, said Executive Director Jaime Arredondo.

CAPACES ran a youth job training academy, took students on field trips to the coast and hired parents and community members to teach culturally specific programming about cuisine, language and indigenous medicine.

鈥淭hat鈥檚 kind of an added value, giving the state a workforce of people that can provide back to their communities,鈥� Arredondo said.

Larger grants also helped cover the increased costs of programs due to inflation for many community groups, Brenden said. 

鈥淲hen we looked at cost inflation, transportation alone was four times more expensive than it was last year,鈥� Brenden said. 

Next summer

Brenden said the Education Service District鈥檚 association would consider being the grant distributor again next year, but she would hire more staff and get started earlier.

She said the state should consider setting aside additional funds to help community-based groups pay for the insurance required by the state.

Because grantees were not required to report how much of their allotted grant budget went to paying for the added insurance, Brenden is unsure how much of the state鈥檚 total summer learning funding went to covering insurance costs.

Brenden said the state should also require the insurance industry to make it easier for small groups to get the sexual abuse and molestation claims coverage. 

鈥淚f that is what nonprofits are required to do now to do business, then we need to tell the industry this should be the standard.鈥� 

She said the state needs to commit to long-term funding of summer programs not to decide on a year-by-year basis as they have the last two years.

鈥淭hey need to make a decision to make it sustainable,鈥� she said 鈥淎nd tell them this is going to happen for five years in a row. Community-based organizations right now can鈥檛 build programs.鈥� 

Despite attempts to find a legislative fix, state Sen. Michael Dembrow, D-Portland, said it鈥檚 proving to be difficult. Dembrow championed the summer learning money and asked the Legislative Policy and Research Office to look into what could be done to change the rules around the insurance requirement. 

鈥淚 don鈥檛 think there鈥檚 anything we can do to eliminate their need for insurance, but we will make it clear that their grant can cover the cost,鈥� Dembrow said in a text. The Senate Education Committee will begin planning discussions in October to try to get issues resolved before next year鈥檚 legislative session. Dembrow said the goal will be to get summer learning grants funded for the next two summers to provide some consistency for community organizations that want to continue providing robust programming.

鈥淭he goal will be to get next year鈥檚 funding nailed down early in the legislative session so that they can plan with certainty earlier than in the past,鈥� he said.

is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Oregon Capital Chronicle maintains editorial independence. Contact Editor Lynne Terry for questions: [email protected]. Follow Oregon Capital Chronicle on and .

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