Children’s Legacy Center Part 2: $20 Million Spending and Cash Flow Crisis
Written by Chriss W. Street
Redding based Children’s Legacy Center just disclosed that the local charity was terminated mid-contract by the California Department of Social Services and “have experienced” allegations to federal agencies of illegal activity involving financial mismanagement of $11.1million to build a 22-county collaborative called “The Pilot.”
Children's Legacy Center under Agreement 22-3074published its first Annual Report titled: ‘Addressing Exploitation Through Multi-Systems Partnership: A Rural Partnership’ to comply with reporting requirements for the management of federal health and welfare funds administered by the California Department of Social Services.
Children's Legacy Center described the bright and admirable goal of the contract as “Piloting a Regional Model for a Placement and Services Continuum to Serve Commercially Sexually Exploited Youth in Rural Northern California.”
It is an accepted fact by law enforcement and advocacy groups that the fight against child sexual exploitation has traditionally been hindered by the limited ability of local law enforcement to fight against organized sex trafficking gangs that van seamlessly move enslaved children across city, county, state, and national borders. The Children’s Legacy Center promised to build“connectivity” with a 22-county rural network to strengthen prevention and address the needs of children coming out of sexual exploitation.
The project that was primarily funded by at least $11.1 million in public funds, was initially embraced by the County of Shasta; Shasta County Board of Education (SCOE); Shasta County Sheriff Office; the Shasta County District Attorney; and the Redding, Anderson and Shasta Lake Police Departments.
The participation of highly-respected public officials gave the Children's Legacy Center as a 501C-3 start-up, the credibility to tap large amounts of local charitable giving, including taking over 'Dancing with the Stars, Shasta County' that since 2008 has raised large amounts of donations to fund One Safe Placedomestic violence shelter, before the shelter was acquired by the Children’s Legacy Center last year.
That reputational clout also served as justification for the Children's Legacy Center to receive $7 million in cash as the second largest recipient of the Shasta County settlement with PG&E for Zogg Fire criminal liability. Children's Legacy Center CEO Kimberly Johnson told KRCR reporter Tyler Van Dyke last year that: “I think it's really important that we honor and hold space for and acknowledge the fact that these funds are coming as a result of loss of life and homes for so many people impacted by the Zogg fire.”
But the artistically produced multi-color Annual Reportto the California Department of Social Services admits to a dark series of operational and financial mismanagement failures that the bloated Children’s Legacy Center’s highly-paid executive staff dismiss as the result of unforeseen “Challenges such as licensing intricacies, regulatory processes, and negotiating specialty mental health contracts have sparked dialogue focused on solutions.”
Despite what appears to have been over $20 million in funding over the last three years, the Children’s Legacy Center disclosed to the State of California that: “we’ve faced cash flow challenges that have shifted our finance team’s focus away from strategic planning and forward-thinking initiatives, instead requiring them to devote attention to “managing working capital on a daily basis.”
While giving legal notice to the State of California that one of their seven operating units was closed after a major assault on staff and is still “operating at a loss of more than $90,000 per month, the Children’s Legacy Center complained it is a major burden that: “We have experienced false allegations of illegal activity made to federal agencies.”
Despite dazzling media coverage that included Children’s Legacy Center CEO Kimberly Johnson being selected Grand Marshall for the Redding Lighted Christmas Parade”, the Children’s Legacy Center told the state their financial and operational crisis was due to:
“Sadly, a polarizing local political climate initially disrupted the path to CLC entering a contractual relationship with Shasta County. The opposition from certain members of the local Board of Supervisors and their supporters has created significant concerns for our leadership and CLC Board of Directors. We have experienced false allegations unwarranted, inaccurate and inflammatory scrutiny, reports of pending media attacks with conspiratorial messaging, and disruptive behavior from politically affiliated groups at our locations with clients onsite.”
It is the understanding of the Mountain Top Times that Children’s Legacy Center did not give a copy the Annual Report 2023-2024: Funding provided by California Department of Social Services Agreement 22-3074 to the County of Shasta; Shasta County Board of Education (SCOE); Shasta County Sheriff Office; the Shasta County District Attorney; and the Redding, Anderson and Shasta Lake Police Departments.
The Annual Report was published at
without comment on October 22, 2024 as Children’s Legacy Center Part 1. The Mountain Top Times intends to write a continuing series of articles regarding the Children’s Legacy Center. Please comment below if you have information regarding Children’s Legacy Center issues.
The Mountain Top Times has reached out for further information and/or to Children’s Legacy Center CEO Kimberly Johnson and its Treasurer Erin Resner.
22023 - 2024Addressing Exploitation Through Multi-Systems Partnership: A Rural Pilot
Great information! Where is the local media!
The emphasis on PR marketing reminded me of the Red Cross CEO, during Hurricane Sandy, having empty trucks driving back and forth, for the optics. I hope you get more readers on this.