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Tuesday, May 21, 2013

By Nelson Sigelman
Published: July 9, 2009

Martha's Vineyard Community Services (MVCS) will cut staff salaries, benefits, and hours as part of a strategy meant to address a drop in revenue, 2009 and 2010 budget deficits totaling about $400,000, and uncertainty over future government reimbursements for a range of social programs.

"The Vineyard is not immune from what is going on in the rest of the country," Julia Burgess, MVCS executive director, told The Times in a telephone call yesterday. Ms. Burgess said the cuts followed much soul searching and discussion in an effort not to hurt clients and minimize the impact on staff she described as "highly committed and highly qualified."

Ms. Burgess said she hopes that by taking these steps MVCS, the multi-agency social service organization that has been on the Vineyard for almost 50 years, will weather the economic storm.

MVCS staff members learned of the cuts in a two-page memo from Ms. Burgess received Monday and titled, "Fiscal year 2010 budget."

"On July 2, 2009, the board of directors passed the fiscal year 2010 budget for MVCS," the memo began. "It was a process which required difficult choices, but it was unanimously felt that at this time the options chosen are the best for ensuring services for the island community and for preserving the future of MVCS."

On June 30, MVCS ended the FY 2009 year with revenue of $5,229, 324, expenses of $5,461,764 and a deficit of $232,440 that is expected to grow once the books are officially closed.

The MVCS FY 2010 budget projects $4,814,299 in revenue, $4,964.275 in expenses and a deficit of $150,976.

The memo identified increasing revenue as an overriding concern as it addresses three goals: maintaining programs and services; keeping staff as whole as possible as expenses must be reduced; and stopping or at least slowing down the rising deficit.

Cuts planned

MVCS announced the cuts in a press release sent yesterday.

"We knew we were facing reductions in our overall budget, but it took considerable analysis in making what were hard choices, as well as patience," said Susan Wasserman, MVCS board president, in the release. "The State, with whom we have a number of contracts, was slow to give us definitive information. This made our decision making even more difficult."

Ms. Burgess said, "Approaching its fiftieth anniversary in 2011, MVCS is fortunate to have some reserves and therefore, while having to cut back, has been able to address this climate in a planned and thoughtful way. Our Board has worked hard this year to secure additional private donations; the staff has significantly cut expenses, and we are facing the future with renewed optimism."

Cutbacks include a combination of program and salary cuts.

Most staff members will see salaries cut from one to five percent, depending on salary level. Management will receive a five-percent cut. Some staff will have hours reduced but not receive a salary reduction. This year MVCS will not contribute towards retirement, vision insurance, or dental insurance.

Unionized employees, who met with management yesterday, have yet to agree to the cuts.

In addition, there will be program cutbacks. MVCS said Family Day Care, operated by MVCS's Early Childhood Programs as a home-based childcare program, will be discontinued in September. MVCS said this was anticipated due to the low reimbursement from the State and all of the families will continue to be served.

MVCS will also suspend its annual fall conference for health care professionals and staff, and in-house agency events such as the Thanksgiving party and Valentine's Day party.

On the positive side, Ms. Burgess said federal stimulus finds could provide funding for a Head Start program. The agency also expects to hire a fulltime psychiatrist that would increase billings for services that are reimbursable by private and government insurance programs.

In the meantime, the board is looking forward to the 31st Possible Dreams Auction scheduled for August 3 in Ocean Park in Oak Bluffs. The powerhouse event annually attracts celebrities and seasonal visitors and remains a funding mainstay that provides hundreds of thousands of dollars.

Board was prudent

In a telephone conversation on Monday, Mrs. Wasserman, a West Tisbury resident, said that despite the board's best efforts community services has had deficit budgets in the past three years. She said in a year with so much uncertainty MVCS needed to be conservative and adopt a worst-case scenario in its budget planning.

"What we tried to do was be very conservative about our estimates and be as realistic as we could based on this year's and what we foresee for next year's," she said. "But it's been tough because there are so many unknowns."

Mrs. Wasserman said the board thought it was very important not to eliminate any jobs and accomplished that goal. "We have such loyal and dedicated employees," she said. "We are really very, very fortunate."

Mrs. Wasserman stressed that the budget is based on conservative projections. Foundations and individuals have suffered losses in the economy and that makes the fund-raising climate particularly challenging she said. "Money that was available to us 12 months ago isn't there," she said.

Mrs. Wasserman said MVCS has reserves to cover a larger deficit. "The board just felt it was incredibly important to be very prudent and very conservative, both for our employees and the community at large," she said.

She said the board was unified in its decision.