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Metro Detroit groups scramble after nearly $650 million in state funding pulled

Hamtramck Fire Department loses $800,000 for new engine while nonprofit faces unexpected costs for children's wigs
Metro Detroit non-profits and public safety groups deal with funding clawback
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HAMTRAMCK, Mich. (WXYZ) — Nearly $650 million in state funding has been pulled back by Michigan House Republicans, leaving nonprofits and public safety agencies across Metro Detroit scrambling for answers after being blindsided by the decision.

Watch Demetrios Sanders' video report:

Metro Detroit non-profits and public safety groups deal with funding clawback

The Hamtramck Fire Department was among those affected, having an $800,000 state grant canceled that was earmarked to purchase a new fire engine.

"Both of our front-line engines, they're at 13 and 14 years, so they're approaching that time when we need to move them over to reserve status, and that'll allow us to retire our reserve rig, which is almost 30 years old," Hamtramck Fire Chief Wyszczelski said.

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The city had already contracted to buy the new fire truck in February, making the funding pullback particularly problematic.

"We didn't even get a call from the state or anything. It was just, we saw it on a website, had to scroll through the list until I found our project in there," Wyszczelski said.

Now Hamtramck is responsible for covering the cost of the crucial equipment on its own.

"We're going to have to find some way to pay for the rig," Wyszczelski said. "If it has to come from the fund balance or appropriations, God forbid we have to take this to the citizens and ask them for a tax levy for something that should've been awarded already. Actually, it was awarded and taken back."

In St. Clair Shores, Maggie's Wigs for Kids has been helping children struggling with hair loss for more than 20 years. The nonprofit was awarded a $125,000 grant in the last budget to help purchase custom wigs.

"The impact is amazing, it allows them to be a kid," said Maggie Varney, founder of Maggie's Wigs 4 Kids.

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Varney said her organization had ordered wigs based on the expectation that the funding was secure. Due to delays, around $56,000 worth of wigs hadn't arrived yet when the state funding was slashed, leaving the organization responsible for the cost.

"We thought for sure the funding was there, so we ordered wigs accordingly," Varney said. "We were shocked because those wigs now have been processed. You have to pay them."

The situation is forcing Varney to use cash that was set aside for next year to cover the unexpected expense.

"Will that affect next year? I pray not," Varney said.

As discussions over state spending continue, there remains hope that lawmakers will reconsider the cuts given their impact on local communities.

"Hopefully, rational heads will prevail, and these important funds will be restored," Wyszczelski said.

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