How Milwaukees anti-poverty agency unraveled: weak controls, little oversight [Video]

The Social Development Commission was reeling from a scandal in 2013.

The federal government had flagged numerous deficiencies in how the Milwaukee anti-poverty agency managed the city’s Head Start early childhood development services. Federal officials picked another vendor to run the program, costing SDC a $22 million contract that cut its budget by more than half, eliminated 154 jobs and prompted the CEO to resign.

SDC would survive that blow. State, federal and local agencies over the next decade entrusted it with millions of dollars for services such as emergency furnace installation, tax support, career advancement, senior companionship and rent assistance. Over time, SDC absorbed other poverty-fighting initiatives, going on to earn more revenue in 2022 than 46 Wisconsin counties.

About a decade later, another scandal leaves SDC’s future in doubt. The organization’s leaders this spring acknowledged having “misallocated” funds for its home weatherization program, costing SDC a $6.7 million …