Media Center
Related Topics
Related Stories
Even with the budget deal announced Friday by state leaders, Community Action Program of Lancaster County may have to slash its services and lay off up to 90 of its 350 employees, the social services provider announced Saturday.
The cutbacks will go into effect Monday, Sept. 28, unless CAP gets a substantial infusion of cash from the state or receives an additional line of credit, said Mark Esterbook, the agency's CEO.
Esterbrook said he's "delighted to hear" that a budget agreement was reached, but that doesn't help CAP in the short term unless money arrives by Friday.
Gov. Ed Rendell was quoted as saying that he wants the budget signed as quickly as possible so funds can flow immediately to groups and organizations that desperately need them.
Since the budget stalemate began more than 2½ months ago, CAP has been relying on a line of credit from Fulton Bank. "They've been absolutely fantastic," Esterbrook said.
But now that credit's been stretched to the limit. "We knew we couldn't ride that train forever," he said.
CAP receives state and federal funds, and much of the federal money goes through the state first, Esterbrook said. Pennsylvania's budget gridlock has tied up those funds, too, he said.
The programs that could be affected are Child Care Information Services; Domestic Violence Services; Family Center; employment and training; outreach (emergency services); and Women, Infants and Children.
The agency administers a $45 million annual budget and serves more than 30,000 people a year through 34 programs.
Among the services not impacted are Head Start; CAP's Child Care Center; and the Energy Conservation Center.
Head Start, for example, receives money directly from the federal government, so that's been untouched by the budget impasse, Esterbrook said.
In addition to the layoffs, CAP employees could be hit with other belt-tightening measures, such as reduced hours, he said.
There are 43 Community Action Programs in the state, and the vast majority have either shut their doors or curtailed services because of the state's failure to adopt a budget, Esterbrook said.
Paula Wolf is a staff writer for the Sunday News. She can be reached by e-mail at pwolf@lnpnews.com.
(480)
