Peggy Revell
Negotiations are underway with the province as Family and Children Services of the Rainy River District is facing a budget shortfall that could see it run low 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,” Bob McGreevy, president of the board of directors of FACS, said last week.
“Declining provincial revenues has led to funding reductions to child welfare agencies across the province,” he noted.
“FACS is working closely with the ministry to address the funding shortfall and to ensure that child welfare services continue without interruption,” he stressed.
While he declined to give an exact amount of how short FACS may be, McGreevy said it was a “significant amount.”
“We’re hoping to have worked out something before the end of November. So that’s our hope, and that depends on many things,” he said, noting the ministry is the only source of funding for FACS.
The shortfall comes as a result of several factors, McGreevy said, most all of which the board sees as being beyond its control.
One of these factors is limitations the ministry has placed on the amount of money agencies can spend on infrastructure, which are a part of administrative costs.
“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.
“That’s because we need a building, whether we’re large or small, we need telephones,” he remarked. “All of theses things that make up infrastructure have a certain cost, and 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.”
While FACS traditionally has managed to provide service to the children “relatively cheaply,” McGreevy also noted that for the first time this year, they have a couple of kids in care who require “very expensive, intensive care in an institution” that has had to come out of the existing budget.
Ordinarily in other years, the board would be eligible for mitigation funding from the province, which is received at the end of the budget year. But with the current shortfall, FACS may not even make it until the end of the year.
Negotiations with the province include working on an agreement so FACS is able to cover the cost of these high-needs children, McGreevy said, noting these expenses also are only temporary since eventually these children will be able to move once they can function in other environments.
“But having said that, there’s no guarantees that we wouldn’t have other children who have high needs who would have to be placed in facilities, too,” he added.
Several solutions also are possible, McGreevy said, such as an adjustment to the funding formula to enable smaller agencies to function better.
He also pointed out they aren’t the only child welfare organization facing these type of issues.
In the meantime, FACS also is making cuts to reduce costs.
“Over the short-term, we’re looking at elimination of training, over the short-term reduction in travel, reduction in meetings,” McGreevy explained.
While they have not made any decisions yet, the board also is considering some staffing allocations.
FACS also has, to this point, been providing services to other organizations free of charge, added McGreevy, so it has imposed some fees and is looking at other user fees to increase revenue.
“But that’s not going to generate too much money,” he stressed.
While the province and FACS haven’t reached an agreement yet, McGreevy said he’s optimistic they can arrive at an understanding.
“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,” he remarked.
“And above all else, we are hopeful, and at times even optimistic, that this can be taken care of fairly soon.
“But 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,” McGreevy pledged.
