Published Tuesday, June 28th in the Erie Times News; by Gerry Weiss
Community Shelter Services officials will propose to the agency’s board of directors that its homeless shelter close during the day, possibly as early as Friday.
The nonprofit group, established in 1973, has a budget shortfall of about $300,000, and can no longer afford to keep the 24-hour shelter open during the day, officials said Monday.
Kathleen “Kitty” Cancilla, executive director, and Pat Herr, associate director, said they would make their proposal to the directors at a meeting Wednesday.
The 2011-12 fiscal year begins Friday, and Cancilla said the 70-bed shelter may need to close from 8 a.m. to 8 p.m. beginning that day. It would continue to operate from 8 p.m. to 8 a.m. seven days a week.
Five jobs, including three full-time positions, would be eliminated if the shelter, 655 W. 16th St., closed during the day, Cancilla said.
Three daily meals made at the shelter also would no longer be served.
Community donations to the agency are down by more than 40 percent this fiscal year, officials said. Herr said an anonymous gift of $240,000 in 2010 helped the agency limp through the year without service cuts like those he and Cancilla said are now necessary.
A partial closure of the shelter would strain the safety net for the Erie region’s growing homeless population. The area also has some of the highest poverty rates in Pennsylvania.
“The impact will be devastating. People will be out on the street, wandering around, looking for somewhere to go,” Cancilla said.
The 70-year-old executive director has worked at Community Shelter Services for the past 30 years.
“If we close now, and not in the freezing cold of winter, maybe by the grace of God someone will get a grip and help us meet our costs,” Cancilla said. “We’ll ask for more from every funding source we have, but that doesn’t mean we’re going to get it.”
The agency, which has an annual operating budget of about $1.6 million, receives money from a dozen sources, including area nonprofit groups, the United Way of Erie County, and state funding through the Erie County Department of Human Services.
Government money to Community Shelter Services has been slashed over the past few years, Cancilla said, and could soon be cut further, as lawmakers are scheduled to vote on the state budget this week.
The agency receives about $37,000 a year from the county’s Human Services Department. Cancilla and Herr said they’ll continue to pursue increased funding from the department’s Office of Mental Health in order to balance the spike in people they serve who suffer from mental illness.
Community Shelter Services in late 2007 was awarded $2 million as part of the historic $100 million anonymous gift left to 46 local organizations.
That endowment has earned about $300,000 in interest, Herr said. He added that $270,000 was used from the gift to pay off a line of credit the agency recently established.
Walter “Stormy” Deacon, president of the agency’s board of directors, said Community Shelter Services will not tap into the gift to pay for operational expenses of the daytime shelter.
“You don’t use the principal up. The feeling is, if we start using the money, it will be gone in six or seven years,” Deacon said on Monday. “You want to keep an endowment like that in place. We’re going to need to make it through by cutting costs somewhere.”
Deacon said the board of directors on Wednesday will aim to finalize their budget for the coming fiscal year. He said cuts will be made to the agency’s marketing efforts and elsewhere.
Deacon also said the nonprofit may sell a three-unit house on West 26th Street that it operates for low-income and homeless adults.
“The shelter has been having major fundraising issues since the recession hit,” Deacon said. “If you operate a homeless shelter where there’s increased needs and a decrease in funds, it comes to a point where you have to cut costs.”
Cancilla said she understands the board’s reluctance to draw from the $2 million gift’s principal and put the agency’s financial future at risk.
“But we need to take care of the people now,” she said. “It’s the way this agency has run for years.”
Herr said many of the Erie area’s nonprofit agencies “run this balancing act” when it comes to operating a social-service group during a recession when demand is up and funding is down.
“Our board is very concerned with that (anonymous donor) money lasting and augmenting what we bring in,” Herr said. “That money was set aside for a rainy day. Well guys, it’s raining.”