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Chicago Nonprofit That Helps Needy Families Narrowly Avoids Massive Layoffs

By Mina Bloom | July 3, 2017 2:47pm | Updated on July 5, 2017 9:28am
 Family Focus, which has provided services for needy children and their families for decades, was almost forced to lay off 70 percent of its staff due to the state budget impasse.
Family Focus, which has provided services for needy children and their families for decades, was almost forced to lay off 70 percent of its staff due to the state budget impasse.
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HERMOSA — A Chicago-based nonprofit that has provided support for needy children and their families for more than 35 years was in danger of losing about 70 percent of its staff due to the state budget impasse before the office of state comptroller Susana A. Mendoza stepped in to help late last week.

Merri Ex, CEO and president of Family Focus, issued a statement on Friday saying the state budget impasse has created a "severe cash flow crisis" at the nonprofit and many similar organizations across the state.

Despite adjusting its "expectations to allow for longer gaps in payment," the nonprofit had reached a point where it simply couldn't afford to keep most of its staff without the $2.7 million owed from the state, Ex wrote.

She said the nonprofit had no choice but to lay off all 100 direct program employees, or 71 percent of its staff, effective July 1. 

"Families who count on us for critical services and help ensuring their children are ready for pre-school are being left behind," Ex wrote.

Ald. Carlos Ramirez-Rosa, whose 35th Ward includes the Hermosa center at 4145 W. Armitage Ave., published the statement in his weekly email newsletter.

He slammed Gov. Bruce Rauner for his failure "to live up to his constitutional responsibility to send a budget to the Illinois General Assembly.

"As a result of Rauner holding our state budget hostage, yet another nonprofit serving our community is facing layoffs, layoffs that will impact local families that rely on these services," Ramirez-Rosa wrote.

But mere hours after the newsletter went out, Ex published an update on the nonprofit's website, explaining that Mendoza's office would be "releasing enough payments to avoid immediate layoffs.

"We are grateful to the State Comptroller's office for the ability to keep our staff working and for our centers to continue providing critical programming in the Chicago region," the update reads.

Abdon Pallasch, spokesman for Mendoza's office, said Mendoza and her staffers sprung into action after receiving a "hardship letter" from Family Focus.

The state comptroller ended up giving Family Focus $1.08 million, which, though far less than the $2.7 owed, will allow the nonprofit to avoid layoffs through August, according to Pallasch.

"After our office had paid the state’s core priorities in June, we worked with Family Focus to be able to bring them up to speed with enough of the state’s past-due payments to them that they will be able to avoid layoffs through August. The hope is the state will have a budget by then," Pallasch wrote in an email.

Pallasch said the nonprofit provides "crucial services."

"Family Focus, like other social service agencies around the state, has performed the crucial services the state asked them to perform and they absolutely should be paid so they do not go the route of the Wells Center in Jacksonville or domestic violence shelters that have had to close around the state," Pallasch wrote in an email.

"The small amount the state pays Family Focus now to set children on the right path saves state taxpayers far more in the long run."

Ex didn't immediately respond to a request for comment Monday afternoon.

Founded in 1976, Family Focus supports needy children and their families through early childhood, youth and career programming, home visits and crisis services.

The nonprofit runs seven direct service centers across the Chicago area, including Hermosa, Englewood, Lawndale, Aurora, DuPage, Highland Park and Evanston.

According to its website, the nonprofit provided family support services to 17,000 individuals last year.

On Saturday, Illinois entered its third straight year without a budget — an unprecedented stalemate between Gov. Bruce Rauner and Democrats who control the state legislature.