FACS facing major budget shortfall

Staff

Negotiations are underway between the province and Family and Children Services of the Rainy River District, which is facing a budget shortfall that could see it run short of cash before year’s end.
“Family and Children Services of the District of Rainy River is currently in dialogue with the Ministry of Children and Youth Services regarding funding issues,” noted Bob McGreevy, who is president of the board of directors for FACS.
“Declining provincial revenues has led to funding reductions to child welfare agencies across the province, McGreevy said.
“FACS is working closely with the ministry to address the funding shortfall and to ensure that child welfare services continue without interruption,” he added.
While declining to give an exact figure, McGreevy said the shortfall is a “significant amount” of money.
McGreevy said the current situation at FACS is a result of several factors, “most all of which essentially we feel are beyond our control.”
This includes ministry-imposed caps on the amount of money that can be spent on “infrastructure”—really considered administrative costs—such as its building on Scott Street and even telephone lines.
“Because we’re a very small board, our administrative costs, as a percentage of our budget, are higher than they are in larger agencies within the province,” McGreevy explained.
“Large agencies have economy of scale that allow them to reduce their infrastructure cost.
“Because of our size, that’s much more difficult for us to do,” he stressed.
As well, for the first time FACS has children in its care who require “very expensive, intensive care in an institution,” of which the organization is paying for out of its existing budget, McGreevy added.
Part of the negotiations with the ministry include working with the province to find an agreement to fund the needs of these children.
McGreevy said FACS is looking into what it can do to reduce costs, but admitted the measures they are looking at won’t “generate too much money” to reduce the shortfall.
Meanwhile, negotiations are continuing with the province, with FACS hoping to have a solution before the end of November.
“I think that it’s important that the public understand that both the ministry and FACS are deeply committed to providing uninterrupted service to our children and their families,” McGreevy stressed.
“And above all else, we are hopeful, and at times even optimistic, that this can be taken care of fairly soon.”
“I want to assure the public that we will do everything we can, the ministry will do everything it can, to ensure that the service continues as it has,” he pledged.