Government funding cut fears have put nonprofits in limbo

Many north country nonprofits depend upon government money. But in a time of economic stress, governments are cutting appropriations while donors cannot afford to give more.

Sister Donna M. Franklin, director of Catholic Charities of the Diocese of Ogdensburg, calls government funding a "shifting tide." The matching grants offered through the state or federal governments usually are not enough to keep up with the need. And that will only worsen with the economic downturn.

"The private and public sectors have always had a partnership," she said. "If the government pulls back, the private sector becomes the safety net, and we don't have the resources to keep up."

She cited the New York Constitution, which in Article 17 requires the state government to support the needy. But how much support there will be in the future is in question.

"Nonprofits need the state to be in partnership with them," Sister Donna said. "Nonprofits are in danger of not being able to continue to serve and keep their doors open."

Part of the problem for public charities is the greater need for their services. Many "bridge the gap," serving those who can't afford food, housing or transportation. And the line for those who qualify is getting higher.

"Your working person is the one who falls between the cracks," Sister Donna said.

As the north country economy moves away from industry, people face smaller incomes, she said. That creates economic depression and family stress.

"That's where we're seeing major change," she said. "But that's the same exact story you're going to hear across the nation."

Car seats are indicative of how the local economy is doing, said Scott P. Mathys, executive director of Lewis County Opportunities. In tough times, more clients seek out the Child Passenger Safety program, in which Lewis County Opportunities provides a car seat or booster seat and shows proper installation.

Mr. Mathys said more people are looking to the nonprofit for housing vouchers, food and house weatherization. The nonprofit weatherized 61 units last year and would do more, but the funding lags behind.

"The working poor can't make general bills. And for many, having to ask for housing vouchers and food pantry visits are new things to them," Mr. Mathys said. "The bar has been raised for what it means to be low-income."

Watertown Urban Mission's food pantry has served more than 600 households every month except February.

"We've seen an increase in the over-65s coming to the food pantry," Executive Director Mary M. Morgan said.

And the critical needs program, which gives vouchers for clothes, furniture and other necessities from the mission's Impossible Dream store, has served about 300 people each month.

"Twenty-five to 30 percent of them have never been here before," Miss Morgan said.

During this lag time, when government grants don't meet local needs, local donors have to fill the gaps.

Sister Donna of Catholic Charities said that despite a slight decrease in the number of donors, many are giving a little more.

"The parish community has been very generous," she said.

"We rely on local contributions as startup when the need increases," Mr. Mathys said.

Urban Mission has seen only slight declines in contributions from donors.

"They have still been giving while they pay more for food and gas," Miss Morgan said. "We have people that every month give us a little bit; a lot of folks have had to cut back."

So far, businesses, churches and the Food Bank of Central New York have not cut back in donations to the mission.

"We couldn't do it without them," Miss Morgan said.

Watertown Urban Mission has several programs that depend on state grants. The Bridge Program is an alternative to jail time for those convicted of drug crimes or driving while intoxicated. The program has outgrown its funding by the state Division of Probation and Correctional Alternatives, which runs between $32,000 and $34,000.

Jefferson County has contributed about $10,000 a year and the rest of the funding comes through a fundraiser and the mission's general revenue of donations and proceeds from the Impossible Dream thrift store.

"We now spend about twice as much as the state funds for the Bridge Program," Miss Morgan said.

If state and local sources drop their funding, Miss Morgan said, the result could be fewer clients served through the program.

The Wheels to Work program takes and repairs donated or purchased vehicles and then sells them at low cost to families under the national poverty level in which a primary wage earner works 30 hours or more each week.

The state grant is a matching grant, which means agencies first must find a match for the grant and then spend the money before the government will reimburse the cost.

"That's always the problem with government grants," Miss Morgan said. "You can't go out and buy cars because you don't have the money to do that."

Government grants also come with severe restrictions.

Wheels to Work is only for families — no singles or couples without children. And the applicant needs to have a job.

"The problem is that we have to watch for a consumer caste system to develop," Mr. Mathys said. "The grant ties our hands somewhat."

Catholic Charities has focused on its Bridging the Gap program, which gives support and counseling to those going through financial difficulties.

"The need far exceeds our resources," Sister Donna said. "We're turning people away. And we're using every penny."

She said the program is seeing a lot of self-employed people and "working people who just can't make ends meet."

Sister Donna said she expects senior programs to be high on the potential cut list, such as the organization's Foster Grandparent Program, which recruits senior citizens to work with youths at sites such as area hospitals and schools.

Karen Y. Richmond, executive director of the Children's Home of Jefferson County, said her nonprofit, which relies on contract fees with the state, sees in the future a growing loss of state funding.

"People are asking us to do more for less," she said. This "is going to be a tough year for all nonprofits across the state."

The nonprofit's Wings program was eliminated in Jefferson County after it lost state and local funding. Wings worked through schools to improve students' behavior academically and in the community, increase parental involvement and reduce absences from school. The program includes homework help, summer programs and family advocates, who work with parents and siblings.

Other organizations, such as the Disabled Persons Action Organization, are waiting to see what the state Medicaid reimbursement cuts will be. DPAO provides services to physically and developmentally disabled children and adults in Jefferson and Lewis counties. The services are geared toward those who live with their families and are heavily dependent on reimbursements from the state.

John M. Turongian, chief executive officer of United Helpers Care Inc., Ogdensburg, said his organization receives about 75 percent of its funding from Medicaid reimbursements. United Helpers offers homes and services to seniors and developmentally disabled and mentally ill people and their families.

"Every time the budget is cut back, we get concerned," he said. "Large populations of people we care for are on Medicaid, as are most other providers in the area."

Jefferson Rehabilitation Center serves the developmentally disabled through vocational programs, residential services and advocacy. Michael C. Capone, community relations manager for Jefferson Rehabilitation Center, said federal and state cuts hurt the nonprofit's work force training.

"We didn't reduce staff, just spots of training," he said.

But the organization has reduced four staff positions by attrition and reduced the administration costs to 7 percent of its overall budget.

"That's well below the average for our type of organization," he said.

Nonprofits also are facing the same cost increases as everyone else.

Many nonprofits raised their mileage reimbursement rates in the spring or summer. They're paying more utilities and health insurance. Some have pensions they support.

"Our board believes if we can't take care of our employees, they can't take care of our clients," Mrs. Richmond said.

While United Helpers froze its pension in 2005, it still has to pay into it for those who were employed at the time.

"Certainly, the economy has had an impact on our ability to forecast projections and pension system," Mr. Turongian said. "For example, if we project 8 percent growth in the pension fund, but if it only makes 4 percent, we have to make up the difference."