Hastings CAS projects $2.1M deficit
Lack of provincial support blamed

http://www.intelligencer.ca/ArticleDisplay.aspx?e=1243442

The Hastings Children's Aid Society is projecting a $2.1 million deficit by the end of this fiscal year -- a fact it attributes to a ck of provincial support.

While the shortfall won't stop the agency from delivering essential services, executive director Len Kennedy said it will put more pressure on staff who oversee hundreds of kids in care.

"On a couple of occasions this year we've not replaced a person or delayed the replacement to save a few months of salary," he said.

"We'll continue to exercise all diligent measure to try and reduce the deficit, but there isn't a whole lot we can go after because we are delivering mandatory services."

At a board meeting Thursday, finance director Mark Stevens presented a report showing that the agency's projected expenditures for the 2008-09 fiscal year are $32.5 million. Yet, based on the number of children it cares for, the agency is only eligible for $31.1 million of provincial funding -- resulting in a $1.4 million deficit for the year.

However, the CAS is still carrying deficits from the previous two years -- nearly $266,000 from 2006-07 and nearly $468,000 from 2007-08.

It adds up to $2.1 million, a number that is significant, but not surprising, Kennedy said, given the province's flawed funding formula.

He said the province provides Children's Aid Societies with $87 a day for each child in its care. But additional money is needed to pay for such things as therapy and counselling for children, who often come into its care following reports of abuse.

During the meeting, Kennedy noted to board members that 38 other Ontario children's aid societies sent first-quarter financial reports to the province. Together, those agencies were expecting an accumulated deficit of about $38 million.

"Our scenario is in keeping with what other agencies are reporting at this time," he said.

Last March, the province provided an extra $800,000 to the Hastings CAS to reduce a previously anticipated $1.3 million deficit, just before the fiscal year ended.

Kennedy does not know whether a similar rollout will be offered this spring, but said the agency is talking with the province about raising the funds.

"We're hoping there will be some relief again," he said. "Our position is these are the costs of delivering the mandatory service of child welfare in Hastings County. Those costs continue to be above the level of funding we receive, but we don't have any choice about the service that must be delivered."

He stressed, however, that the $2.1 million figure is only a projection.

If more kids come into its care over the course of the year, the CAS would be eligible for more funding, Kennedy said, but the money won't be enough to erase a deficit.

CAS can't expect quick cash MPP says
Posted 2 days ago

The province will work with the Hastings Children's Aid Society to help erase a projected $2.1 million deficit for the current fiscal year, the Prince Edward-Hastings MPP said.

But Leona Dombrowsky could not say whether an influx of cash is expected to help the agency get close to the break even point, as was the case last year.

"The CAS continues to be in discussions with people from the Ministry (of Children and Youth Services)," she told The Intelligencer. "They're looking for ways to address their deficit issue and .. opportunities to access more resources."

"I think that's the appropriate action at this time. It's not come to my attention that they've exhausted all efforts with ministry staff."

At a board meeting earlier this month, CAS officials announced they were expecting a deficit of $2.1 million by the time the current fiscal year ends next spring.

Its projected expenditures for the year are $32.5 million, but based on the number of children it cares for, the agency is only eligible for $31.1 million of provincial funding -- resulting in a $1.4 million deficit for the year.

However, the CAS is still carrying deficits from the previous two years -- nearly $266,000 from 2006-07 and nearly $468,000 from 2007-08. That adds up to $2.1 million.

The number, however, would have been higher had the province not come through with $800,000 for the Hastings CAS last spring -- a grant given to address the growing deficit.

While Dombrowsky couldn't say whether another grant is in the works, she said her government has a history of working closely with Children's Aid Societies to address deficits.

"Do I foresee the government picking up the entire tab? I'm certainly not able to say that today. What I can say is -- and I think the record demonstrates this -- we want to work with people on the ground, we want to support them as much as we can."

CAS clarifies its position
Posted By
Posted 2 days ago


On behalf of Hastings Children's Aid Society, I am writing to express our concern with the headline, "Lack of provincial support blamed," in the article, "Hastings CAS projects $2.1 M Deficit," which appeared on the front page of last Saturday's Intelligencer.

The article comments on our cumulative deficit of $2.1 million and some of the challenges within the current funding model for the child welfare sector. We feel it does not represent the essence of the discussion at our recent board meeting dealing with our deficit.

Our board is committed to working collaboratively with the Ontario Ministry of Children and Youth Services towards the resolution of funding issues, particularly those arising from shortcomings in the current funding formula.

We have provided input to a review of the funding model, currently underway, which we hope will reduce our shortfall over the longer term.

The society engages in regular dialog with ministry officials and with our local MPPs to enhance their understanding of pressures related to our geography, demographic factors in our area, and overall shortage of services.

The society would like your readers to understand our commitment to ongoing dialogue in our efforts to advocate for solutions to the serious financial issues we face.

P. Len Kennedy Executive Director

Hastings Children's Aid Society Jan Richardson Board Chair

Hastings Children's Aid Society