Jewish Family Services sees directly what the current economic crisis is doing to people.
As JFS president and chief executive officer Sylvan Leabman said in a recent telephone interview, the “family care caseload” has increased by “more than ten percent” over last year; and “we’ve seen a fairly large increase in requests for emergency assistance for individuals who can’t meet basic needs for food, clothing and shelter.”
But individuals and families are not the only ones hurting. Community Jewish agencies are being affected, as endowments suffer from investment downturns, and charitable givers and leaders of foundations feel they have less to give.
As one result, the Milwaukee Jewish Federation has made a 20 percent across-the-board cut in allocations to agencies. To this and other shortfalls, these agencies have had to respond.
JFS is typical. “As we’ve been meeting with foundations and funders, we are very concerned about next year and the impact of potentially reduced funding on our ability to meet demands,” said Leabman.
“Our board will be looking at service reduction options in June as it reviews our budget for next year.”
Nevertheless, the agency persists in its work. “We continue to serve clients who need service and their families as best we can, tightening our belt as much as we can, because it is our mission to do so,” said Leabman.
Struggle to serve
Leabman’s remark about providing services while “tightening belts” was the common motif of officials at all agencies interviewed for this article.
Paula Simon is executive director at the Milwaukee Jewish Council for Community Relations and the agency’s only full-time staff member. She said that some “80 percent of our regular operating budget” comes from its MJF allocation, which was $186,300 last fiscal year.
Its “two major expense categories” are staff salaries and occupation charges for its suite in the Helfaer Jewish Community Services Building, she said.
“What people need to realize is that without the staff, there is no council program,” said Simon. “In terms of developing policy positions, relationship building, programmatic and educational initiatives, we need people to be meeting and talking with elected officials, civic leaders and law enforcement officials.”
MJCCR lay leaders are “looking at our budget carefully,” said Simon. She said the staff will be taking a 10 percent salary reduction and, in addition, Simon will take “an additional reduction in my benefit package” of 3 percent. Moreover, “we are looking at reducing some of the things we do.”
Leaders of Milwaukee’s Jewish day elementary/middle schools — The Academy (Hillel), Milwaukee Jewish Day School and Yeshiva Elementary School — say they are striving to maintain their educational offerings.
B. Devorah Shmotkin, principal of The Academy and director of the Jewish Beginnings Lubavitch Preschool, said, “The boards of both organizations have taken a long, hard look at our budgets and have charged us to cut them,” but in ways that do not affect “the quality of educational services directly affecting students.”
At The Academy, which had 92 students this past year, staff members have taken 3 percent pay cuts, said Shmotkin. Moreover, the school is “giving out more scholarship funds” to families.
Nevertheless, “because of their deep commitment to Jewish education, families have stepped up in ways beyond their means to keep the school operating at the high level it does,” said Shmotkin, adding that the school is “not anticipating a decline in enrollment.”
At MJDS, which enrolled 260 students this past year, head-of-school Judy Miller said the school held Web seminars and a “town meeting” to inform parents of the financial situation.
Miller said the school “will probably have to make some difficult decisions” to maintain a balanced budget. However, it will not raise tuition because an anonymous donor made a gift that forestalled that, she said.
Moreover, Miller said that any changes will not be aimed at educational services for the children. “We are not changing our program at all,” she said.
Some program changes will take place at YES, said school president David Becker. That school, which had 214 students enrolled this school year, will combine its boys’ sixth- and seventh-grade classes next year and may cut some extra-curricular activities, he said.
“We’re only spending on essentials,” he said. Moreover, the school is trying to explore new sources of funds, which is difficult this year, he said.
Still, the school does run a balanced budget and has not laid off any staff members, Becker said.
Sense of optimism
About five months ago, the Harry & Rose Samson Family Jewish Community Center created an “economic impact committee,” a subcommittee of its board, “to address those issues new to the center based on the economic times,” said JCC executive director Mark Shapiro.
“The agency as part of its annual budget process and with the help if the economic impact committee is identifying all ways to streamline the agency’s operations,” Shapiro said.
Last Thursday, May 21, the JCC reduced its staff by eight full-time positions, including three positions that were currently not filled. Five employees were laid off.
The JCC also instituted an across-the-board salary reduction of 3 percent plus a temporary suspension of the pension plan, Shapiro said.
“The JCC remains solid and strong,” he said. “These decisions are being made to ensure the long-term viability of the center.”
Nevertheless, the agency, which had a budget of approximately $10 million for the past fiscal year, is “holding steady” on its membership, which numbers 2,950 “membership units” or about 8,800 individuals, Shapiro said.
Members are purchasing less at the center – dropping upgrades in health center membership and enrolling in fewer classes – and center staff members are projecting a 30 percent increase in requests for scholarships to send children to JCC camps, he said.
But membership “continues to be a value,” Shapiro said. “It’s all about making sure people feel they are getting value for the money they spend and that we are ensuring that we continue to be guided by Jewish value in how we make our decisions.”
Mina Tepper, president of the Jewish Home and Care Center, said her organization is not as dependent on an MJF allocation as other agencies are in the community.
However, “our major sources of revenue are from Medicare and Medicaid” — which are federal and state government programs, respectively — “and some private pay,” she said.
The government programs pay only a fraction of the costs of care, she said. Deficits are covered by the JHCC Foundation, she said.
Out of its capacity of 160, the JHCC currently has about 155 residents, Tepper said. “Since our facility could have 65 to 70 percent of its residents on Medicaid, you can see that in order to perform our mission, somebody has to help us do that,” she said.
However, not only are foundations affected, but the state and federal governments’ budgets “are in trouble,” said Tepper. “We are looking to that with some concern.”
“The needs of the frail elderly don’t change because the economy changes,” Tepper said. “I have to focus on making sure we optimize revenue and that we run a very tight operation by joining buying consortiums to reduce costs, renegotiating agreements for services that we contract for.… We are looking at things much more carefully, [seeking] not only big dollar savings, but small dollar savings as well.”
The economic crisis is affecting local youth programs also. The Wisconsin Region of the B’nai B’rith Youth Organization is seeing a rise in requests for scholarships to enable members to attend such events as the regional convention, which took place over Memorial Day weekend at Camp Beber.
“We have a lot more kids whose parents are affected by the situation,” said Wisconsin Region director Rachael Frydman. “We’re adjusting for that.”
The organization’s local lay leaders said in a statement that they are more dependent than ever on individual donors.
“Between the B’nai B’rith divestment and the [Milwaukee Jewish] Federation difficulties, we have looked at making some cuts but we have ramped up our Friends and Alumni Network to help make up the difference.
“Thankfully there are many alumni who still feel strongly about the BBYO experience. We have very much relied upon institutional support for BBYO…. We now need to cultivate individual support from those who have benefited the most. And there are generations to cultivate.”
However, Frydman said she does not expect a decrease in the membership, which at present stands at 350 teens. “It’s a great program and kids still want to be involved, and parents still want their kids to be involved,” she said.
“We have a very positive attitude over here,” she said. “We think times are tough, but we see a bright future” and “it is still going to be a great program year.”
Formerly op-ed editor, Leon Cohen has written for The Chronicle for more than 25 years.
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