Chicagoland

State’s budget crisis impacting Catholic Charities, other faith-based agencies

By Daniel P. Smith | Contributor
Sunday, April 25, 2010

At a time when calls for help are rising and a supportive, charitable spirit is necessary, Springfield’s budget woes threaten to derail a host of faith-based services throughout the Chicago area.

Many local charities and service providers who receive state funding report significant holes in the state’s payments, a reality that has many scrambling for alternative funding sources, seeking creative solutions, and learning to do more with less. The nonpayment has prompted concerns about service cuts and, in some cases, agency livelihood.

As of March 19, Catholic Charities was owed more than $13 million by the state for services provided to seniors, including adult day care and Meals on Wheels. Some of the outstanding money dates as far back as June 2009.

“We are struggling to serve our clients and pay our bills. Times are tough,” said Father Michael Boland, president of Catholic Charities of the Archdiocese of Chicago.

“We are by no means the only agency impacted, yet we feel compelled this year to advocate even more clearly about the needs of those who might be affected by hard choices in the very near future,” Boland said, acknowledging that a number of partner agencies have been forced to close their doors or deny new clients.

Despite the situation, Catholic Charities, which served more than 1 million people in the Chicago metropolitan area last year, has not cut its services — yet. In recent months, the Chicago- based agency has tapped a line of credit to make payroll. But the 92-year-old organization does not know how long banks will continue to grant the short-term solution should the state’s failure to pay persist, placing the agency in a weakened position to deliver on its mission.

“Our board of directors is analyzing various scenarios for the upcoming year, and none of them look good, but we are committed to continuing to serve all those in need in Cook and Lake Counties,” Boland said.

Generating initiatives

Throughout its history, Catholic Charities has taken the challenge upon itself to develop new, innovative programs that support the ideals promoted by Catholic social teaching, forming numerous public-private partnerships to extend its services to as many people as possible and stretching its dollars to the optimal degree. Illinois’ fiscal woes and failures, which remain in limbo, leave Catholic Charities battling for survival and thankful for donor generosity.

“Every day we are fighting to generate new initiatives to continue serving our clients,” Boland said, specifically citing the agency’s recent monthlong “Have a Heart, Help Your Neighbor” campaign aimed at gathering donations and food for the agency’s 10 Chicago-area food pantries.

“If we didn’t have so many generous people helping us, we could not meet the continually increasing needs at our food pantries.”

Others impacted

The dire situation is impacting other local faith-based institutions that rely on state contract dollars as well.

At St. Mary of Providence, 4200 N. Austin Ave., a care and education center for women with developmental disabilities run by the Daughters of St. Mary of Providence, state funding finances about 90 percent of the institution’s expenses. Failure on the state’s part to deliver on its contractual obligations places a perilous cloud over the institution, which is also battling budget cuts that could affect the programs and services it has been providing since 1925.

“Insufficient funding means difficult decisions must be made that affect our clients, our staff, and ultimately, our community,” the St. Mary of Providence Web site said in response to the challenging environment created by Illinois government’s fiscal tumult.

In most cases, impacted agencies like Catholic Charities and St. Mary of Providence have ramped up efforts to solicit private donations and created spirited development campaigns to grasp much-needed dollars. With the need for services growing, faithbased institutions remain committed to assisting their clientele and prodding the state to deliver on its promises.

“It’s very important for us to persevere through this economic downturn, despite the situation with outstanding receivables, and continue to serve the community in innovative ways,” Boland said.

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