Title: Lutheran Social Services of Illinois Reduces Programs
ELCA NEWS SERVICE

August 22, 2002

LUTHERAN SOCIAL SERVICES OF ILLINOIS REDUCES PROGRAMS
02-199-FI

     CHICAGO (ELCA) -- Lutheran Social Services of Illinois (LSSI),
based in Des Plaines, Ill., phased out five programs across Illinois in
the past two months, affecting 200 of its 2,000 employees. "Intouch"
services for seniors were discontinued in East Hazel Crest, Carol Stream
and Rock Island; counseling offices closed in Peoria; and Hispanic
Connections/Project Success ended in Chicago.
     Employees received notice on or before June 24 if their positions
were being eliminated on Aug. 23, said the Rev. W. Paul Brinkman, LSSI
vice president for resource development. He said many found jobs in
other LSSI programs or with other service providers, and those served by
the programs were referred to other providers.
     "LSSI is a strong, healthy organization providing the highest
quality of service," said Brinkman. "We were strong before we announced
these cuts. We are strong now."
     LSSI reports that it operated in fiscal year 2000 on $95,779,000 -
- about 35 percent on children's programs, 26 percent on senior
programs, 16 percent on behavioral health, 9 percent on housing, 9
percent on administration and fund raising, 4 percent on developmental
disabilities services and about 2 percent on "other."
     Fees and grants from government sources accounted for about 68
percent of its income, program service fees provided 28 percent, and the
rest came from contributions and public support.
     When 2002 began, "state government leaders were focusing solely on
what program cuts would need to be made to overcome the looming budget
deficit," said the Rev. Daniel J. Schwick, director, Lutheran Advocacy
Network of Illinois. LSSI took part in an advocacy effort of almost 200
organizations that changed the state leaders' attitude from one of
budget cuts to one of finding new sources of income, he said.
     "In the end, the budget was balanced -- somewhat perilously -- by
a balance of program cuts and revenue enhancements, most notably an
increase in taxes on cigarettes and casinos. Without the revenue
increases, the program cuts would have been even more severe than those
that were imposed. Even more people in need of government assistance
would have lost or been denied service," said Schwick.
     LSSI's program cuts were "not a knee-jerk reaction" nor from "a
position of being in trouble," said Brinkman. The LSSI board looked at
all the services the organization provides through years of strategic
planning and set goals that emphasized developing viable programs and
good stewardship of available resources, he said.
     LSSI undertook three processes -- cost containment, cost cutting
and development of revenue streams, said Brinkman. Management took
measures to reduce spending, making programs more effective and
efficient, to eliminate certain programs or expenses and to inform the
state government and the church of its situation, he said.
     "We report to the state, to the church and to our donors," said
Brinkman. "Above all, we stand before God as good stewards of what has
been entrusted to us," he said.
     "It's not as though LSSI is faced with something that other social
ministry organizations are not," said Brinkman. Most are making the
same tough decisions "choosing not to serve some in order to serve as
many as we can."
     LSSI is an active member of Lutheran Services in America, said
Brinkman, putting it in direct conversation with 280 Lutheran agencies
across the United States and Caribbean. He said LSSI may be an example
to other social ministry organizations, providing services to people who
can rarely afford them in an economic environment that is always
changing.
     Founded in 1867, LSSI is a statewide, not-for-profit social
service agency of the three Illinois synods of the Evangelical Lutheran
Church in America (ELCA). The ELCA is organized into 65 synods across
the United States and Caribbean. There are about 278,000 Lutherans in
549 congregations of the ELCA Central-Southern Illinois, Metropolitan
Chicago and Northern Illinois Synods.
     In a June 24 memo to ELCA pastors, parish leaders, LSSI volunteers
and staff across Illinois, the Rev. G. Frederick Aigner, LSSI president,
said staff at six sites were informed "their positions are being
eliminated due to program closings."
     The sixth program -- four residential treatment programs for youth
at the 99-year-old Nachusa Lutheran Home in Nachusa -- was spared after
LSSI found alternative state funding for two of the four programs. The
maximum capacity of the program will be 24 youth, instead of 48, and
less than half of the 66 employees will remain on the payroll.
     "We appreciate the large outpouring of support and concern for the
youth we serve," said Brian Smith, director, Nachusa Lutheran Home. "I
am especially appreciative of the Nachusa youth and their families for
the supportive statements they've made regarding the impact of our
services on their lives."
     In addition to the five program closures, LSSI reduced services
and staff of several private counseling and private adoption programs.
The central services office in Des Plaines cut administrative expenses
by $800,000.
     "LSSI management and the board of directors have concluded that it
is no longer possible to meet the needs of clients in these ministries
in a cost-effective manner," said Aigner. "We have reduced expenses
wherever possible. We have consolidated offices, including moving our
Oak Park office for foster care and adoption programs to an existing
office in Chicago," he said.
     During the fiscal year that ended June 30, Brinkman said LSSI
phased out counseling centers in Champaign, Rockford and Joliet, as well
as the Fox Hill Group Home for girls in Aurora. A "leave of absence
without pay" program has been worked out for employees, he said, and a
salary freeze is in effect for the fiscal year that began July 1.
     LSSI served about 200,000 people in 2001. About 3,450 children
were in foster care homes through LSSI, and about 750 children were
adopted. About 1,000 children visited their incarcerated mothers
through LSSI's prisoner and family ministry.
     "Intouch" services include older adult day service, care
management, elder abuse intervention and prevention, and home care
service. LSSI provides behavioral health services that include
substance abuse treatment, child and adolescent residential homes, and
mental health programs.
-- -- --
     Lutheran Social Services of Illinois is at http://www.lssi.org/ on
the Web.

For information contact:
John Brooks, Director (773) 380-2958 or [log in to unmask]
http://listserv.elca.org/archives/elcanews.html