Editorial: Decision time for the EOB

Friday, April 14, 2006 | 7:21 a.m.

State and federal audits over the past four years have revealed gaping holes in the way the local Economic Opportunity Board accounts for its taxpayer-provided money. So much money is missing - millions - that the 42-year-old nonprofit social-service organization has lost large contracts with Nevada and the federal government.

Its $12.6 million annual contract to run the federal Head Start program was canceled in February, and its $5.5 million annual contract with Nevada to run a child-care program was canceled this month, effective April 30. Additionally this month, Clark County canceled a planned $250,000 emergency grant to EOB, also because of the organization's poor record of accountability. We believe all of those moves were necessary.

EOB now finds itself mired in debt as it tries to continue with its other social programs for impoverished Southern Nevada residents. The only real chance of recovering from this debt, estimated at $3 million, is for EOB to sell its 33-year-old public radio station. Four offers have been received, and they range from $4 million-plus to $6 million.

A consequence of the turmoil over the federal and state audits has been massive turnover in EOB board members. Mass resignations have made it impossible in recent weeks for the board to assemble the quorum needed to act on any of the offers.

Meanwhile, at EOB's public meetings, many people have been voicing strong support for the station and asking that it not be sold. Also bearing on the issue is an audit of the station conducted by the federal Corporation for Public Broadcasting.

The audit revealed the same type of bookkeeping problems that plague the rest of EOB. The station, which has a music and talk format, has also been criticized for straying from EOB's mission, which is to help people rise from poverty.

Should the public radio station be sold? Should it remain as is or with a changed format? Is EOB worth saving? Should the organization be dissolved and its social-service programs be contracted out to other, more accountable agencies?

As the EOB itself is dysfunctional, we believe the time has come for federal, state and local governments to address these questions in a public forum and then quickly resolve them.