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Rising costs, dwindling allocations create ‘perfect storm’

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Message: If you are having trouble reading this email, you may view this article online at: http://www.jweekly.com/20478/full/20478/rising-costs-dwindling-allocations-create-perfect-storm/ Rising costs, dwindling allocations create ‘perfect storm’ Friday, September 5, 2003 | by JOE ESKENAZI Ron Mogel feels like he's been getting rained on these days, even when he's indoors. Last month the executive director of the Osher Marin Jewish Community Center received a pair of disturbing notices almost on top of one another: The JCC's worker's compensation costs were to be hiked $50,000 while its allocation from the S.F.-based Jewish Community Federation would be $50,000 lighter. "In a week, we lost $100,000," said a dazed Mogel. "We're going through a complete review of our entire budget. All the fat has been cut out already, so we're looking at a reduction in programming." Mogel glumly notes that he anticipates personnel cuts as well. The combination of reduced federation allocations, increased overhead costs—and, in many cases, increased community demand—have been described by agency heads as "perfect storm conditions." "Our hope would be that in a crisis, you could go to the federation and they, hopefully, could help you. They haven't been able to do that," said Anita Friedman, executive director of San Francisco's Jewish Family and Children's Services. After receiving $538,000 last year, the JFCS was allocated $455,600 this year. In a perilous economy, however, demand is up, and money from both the government and JCF is down. And, like the Osher Marin JCC in San Rafael, worker's comp, insurance and security costs have jumped. Friedman predicts "Lots of belt-tightening, cutting staff, cutting staff back to part time and continuing to do fund-raising…. Federation cuts coming in combination with a difficult economy and an increase in caseload couldn't come at a worse time." When it comes to reduced allocations, however, federation officials said their hands were tied. Gail Zucker, the JCF's director of planning and agency support, noted that the federation is facing the same increases in fixed costs that are plaguing the agencies. The JCF's annual campaign finished $875,000 short of last year's, and more money than in the past must be set aside to counter unpaid pledges. "I think federation is really proud it raised the kind of money it raised this year in difficult economic times," Zucker said. "With regard to allocations, it's never easy to be in the situation of reducing funding to agencies." The federation had instructed its beneficiary agencies to expect 10 percent reductions months ago. In an April interview, JCF CEO Sam Salkin referred to the instructions as a "planning exercise," and strenuously avoided using the term "cuts." Virtually every agency has been cut, however, and some by more than 10 percent. Palo Alto's Albert L. Schultz JCC received $415,000, down from $475,000 last year; Brandeis Hillel Day School received $299,300 after an allocation of $335,600 last year; the Peninsula Jewish Community Center received $304,300 after an allocation of $342,000 last year and the Israel Center was granted $182,100 after receiving $204,200 last year, to name several agencies. The JCF distributed roughly $8.7 million to local organizations, down from last year's total of nearly $9.8 million. The federation sent $625,000 to the United Jewish Communities, also down from $888,000 last year. Incidentally, across the bay, the Jewish Community Federation of the Greater East Bay noted a 9.2 percent decrease in local allocations, though some agencies were bolstered by donor-directed funds. Even with funding similar to last year's, Penny Sinder, the JCF of the Greater East Bay's acting director, acknowledged that agencies will have to struggle to make up for rising fixed costs. The East Bay federation's own fixed costs were 20 percent higher this year than last. As part of a phasing out of emigre settlement dollars, San Francisco's Jewish Vocational Service did not receive $70,000 in funds that it got last year. Though the emigre funds were long earmarked as temporary, JVS Executive Director Abby Snay had fought unsuccessfully for an extension. Minus the emigre funds, the JVS received $466,100 this year, after an allocation of $538,000 last year. Shrinking allocations have forced many agencies to fund-raise for themselves or contract with governmental or philanthropic agencies. For example, The Israel Center is receiving $100,000 from a partnership with the Jewish Agency for Israel. The JVS has been contracted by the Employment Development Department and will receive about $200,000 over the next 16 months. "We're going to have to make up for cuts through energetic fund-raising," said Mogel. "I think federation tried to be fair in terms of its allocation cuts. And any contribution from federation is useful. Further cuts will basically mean for us that we have to pare down all of our programs that don't bring in revenue."

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