Dallas leaders review stipends given to private organizations

City of Dallas reviewing funds given to private groups

Dallas leaders are looking at stipends the city gives to private organizations for public purposes. FOX 4's Lori Brown has more.

DALLAS - The city of Dallas is taking a closer look at the stipends it gives out to private organizations. One organization under the spotlight is paying its chief executive officer more than the Dallas city manager.

What we know:

Stipends are a way for the city to give public money to private organizations for a public purpose. 

For example, Downtown Dallas Inc. received more than $1 million in stipends this fiscal year. The organization’s website states it works to improve the quality of life downtown, steward public spaces, and advocate for development.

Unlike a contract, a stipend does not have any strings attached, like a set of clear deliverables.

What they're saying:

During a government efficiency committee meeting on Monday, Dallas City Council members said they wanted to make sure public purposes are still being served.

Councilman Adam Bazaldua questioned giving tax dollars to Downtown Dallas Inc. since the organization is now well-established.

"I think that there is substantial evidence that what we did to contribute to help that as a seed has served its purpose. And when you have an organization like this specifically that is essentially able to pay the executive director half of what we’re giving them a year, it speaks volumes to, I think we’ve gotten our return and then some. And they’re self-sustaining," he said.

By the numbers:

According to Downtown Dallas Inc.’s 2024 990 form, CEO Jennifer Scripps received $495,000 in salary and benefits. By contrast, the Dallas city manager earns a $450,000 base salary.

The other side:

Downtown Dallas Inc. released the following statement to FOX 4's Lori Brown:

"Downtown Dallas, Inc. does not receive a stipend from the City of Dallas. Instead, the organization operates under a management agreement, with all services outlined in state code and with payments based on property values and spelled out in our service agreement with the City’s Office of Economic Development. For more than 30 years, Downtown Dallas, Inc. has delivered essential services such as security, cleaning, and city-supported operations to help maintain and enhance Downtown Dallas. As the largest property owner in Downtown, the City has participated in the PID."

What's next:

Other council members said they could think of stipends not included on the list provided during Monday’s meeting, including $1 million given to the North Texas Food Bank with no contract or prior history of stipends.

They asked city staff to provide a more comprehensive list of stipends given, and will seek direction from the committee on June 8.