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\ ' \ \ ATlANTA VROAN CORT'S I '- 30 COURTLAND STREET, N .E . / PH O N E ( 4 04 ) 5 24-809 1 / ATLA N T A , GEORGIA 30303 ME MO R A N D U M TO: FROM: George Berry, Governmental Liaison Charles Davis , Director of Finance DATE: November 12, 1969 Ken Millwood , Director SUBJECT: Urban Corps 1970 Budget Proposal There seems to be some question as to the derivation of the request for $139,693 that the Urban Corps has made of the City of Atlanta. The budget was derived on a cash income - outflow b asis without assig ning specif ic usages of income to specific sources. In deriving this budget, we used income sources represented as the following: (1) College Work-Study - 80 % of salaries of eligible students (2) Agencies - (3) City of Atlanta - 50 % of salaries of interns they employ (4) City o f Atl a nta - Supportive Gr a nt 30 % of salaries of interns they employ This plan was s u ggested by Mr. Berry a s a method o f deriving t he City 's financial p articip ation based on services rendered . The pr ivat e a g encies were a sked to p a y o n l y 30 % becaus e o f t heir l imit ed financia l po s it i on and in an e f f ort to keep t h e Urban Cor p s in a non- competit ive situa tion with t he colle g e s and u niversities . The Ci t y o f Atlant a h as been a nd is now an a c t ive s p onsor o f the Ur ban Corps conc ept . Th e summer Urban Corps p rogram was regarded oS a succe s s by b o th loc al a n d national f i gures . We requ ested the Citj of Atlant a to s h a re a larger part o f the c ost o f defraying a dministrative expens e s because it is the typ e of community activ ity a Ci t y g overnme nt should b e involved in . Al s o, qu ite f r a n k l y , the City can afford it . Th e City gains ben efit thr ough communi t y service, publicity ,_ and student involvemen t f rom the Urb an Corps pro gram in total , not onl y from the s tudent s who work directly with Ci ty department s . The reque st of $1 3 9, 69 3 c a n be vi e wed i n a different l ight than t he 50% -grant combination ou t l ined above . The administrative costs of the 1970 program will be $75,3 4 9. Being a City sponsored prog ram, the City could reasona bly e xpect to a bso rb ~ t h i s t otal cost. The remaining $64,344 can t hen be viewed as representing the City's �Memorandum George Berry & Charles Davis November 12, 1969 matching share of interns used by City departments. This cost represents 34% of the salaries of interns assigned to the City for 1970. ~n using this $64,344 in computing cost per man year, the result is: $64,344 for 44.1 man years= $1,459.02 per man year (The 52 man years quoted by Mr. Dan Sweat in his memo of November 5, 1969, is inaccurate because it does not allow for part-time employment. Using 52 man years, the cost is $1,237.39 per man year.) The cost to the private agencies participating is: 93 man years for $116,808 = $1,256 per man year. Accepting the algument that the City truly benefits from all the interns in the Corps, the cost per man year would be: \~1 man years-$139,693 = $1,042 per man year (This figure does not include the 31 staff members who in total will contribute some 17 full man years to the operation.) I believe these computations make the City's involvement more reasonable in compasison to that of the non-profit agencies. I feel the key point is not one of finance, but one of purpose. The Urban Corps, although it has involved financial ties, is not based on percentages of cost, cost per man year, or who pays how much. It is based entirely on service to the community and educational enrichment of the students. It would seem to me that it is worth at least $140 , 000 to the City to continue such an enterprise. - 2 - �