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A tipping point | Oak Hill’s funding plight hints change is needed

Oak Hill's funding plight hints change is needed

Patrick Johnson has seen the difference the past 30 years have made. He’s witnessed the special needs children who’ve been mainstreamed into public schools, for instance, and watched adults acquire the skills needed to live independently.

He’s proud that today, people with developmental disabilities — and their families — have options beyond an institution. But Johnson fears that if the current economic environment and flat state funding continues, three decades of progress and the safety net to protect the state’s most vulnerable citizens, may be in jeopardy.

As president of Oak Hill, the largest non-profit provider of services to people with developmental disabilities in Connecticut, Johnson argues that 20 years of chronic under-funding by the state — with average annual increases of less than 1 percent, according to the Connecticut Community Providers Association, a trade association of private nonprofits — have left many organizations that serve the disabled struggling to survive.

In fact, according to a 2009 independent audit of community providers by the Commission of Health and Human Services, 75 percent of providers have less than one month of available financial reserves and more than one-third have a negative financial balance. In large part, that’s because while state funding was essentially flat-lined over the past decade, fixed costs like health care (up 135 percent), utilities (up 90 percent) and fuel and insurance (up 77 percent) have skyrocketed during that span.

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“We’re heading for a financial cliff,” Johnson contends.

He points to his own organization — which receives 90 percent of its funding from the state — as an example. Like many nonprofits in Connecticut these days, Oak Hill has made financial cutbacks to increase efficiencies — from staffing cuts and reducing benefits to revising staffing patterns. But unlike many nonprofits, Johnson’s organization serves more than 400 clients who require skilled, round-the-clock care. “We still need to abide by our mission to provide quality care,” Johnson says. And as many elderly parents in the state find themselves unable to continue caring for their disabled children, Johnson fears even more people will look to providers like his for service.

Although Oak Hill — with an annual budget of $79 million — may be financially healthier than some community partners, it ran a $4.6 million deficit last year, a gap it had to fill by dipping into reserves.

“We’ve squeezed all the efficiencies we can,” said Johnson, whose organization’s operations include a school and 59 group homes across Connecticut. He’s particularly concerned that the next state budget may represent the fifth straight year of zero percent increases for community providers like Oak Hill. “The governor recognizes our challenges — and is working with us — but the current trends are not sustainable,” Johnson said.

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While Deb Heinrich, the governor’s cabinet-level liaison to the nonprofit community, notes that the Malloy administration has not made cuts to the nonprofit sector, his 2012-2013 budget — with $758 million in planned spending reductions — may not allow much by way of funding increases for nonprofits, putting added pressure on organizations like Oak Hill to raise funds elsewhere.

And while Oak Hill has made some progress in raising money privately from corporations and foundations — raising an estimated $750,000 last year from these sources — Johnson says the biggest challenge is finding funders that can relate to the need for his organization’s unique services.

“Unless you have a family member that’s severely disabled, it’s hard to fully understand and appreciate how much our services mean,” he said.

The families that Oak Hill serve seem to understand the situation, Johnson explained, noting that individual giving has increased significantly, although still remains a small portion of the organization’s overall budget. “We’re unique in that [unlike many nonprofits] we often serve our clients for 30 or 40 years.”

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And Johnson sees changes for disabled clients now entering the care system in Connecticut. “I think in the next five to 10 years, we’ll see a transition to foster-like care for some clients,” he said. “It’s been an effective model in other states and is less expensive.”

But he still worries about what funding cuts will mean for those who need skilled group home care. “We don’t want our group homes to become mini-institutions,” he warns. “Our clients aren’t widgets in a factory; they’re human begins who deserve a quality of life.”

But quality care takes quality funding, Johnson said.

Grant aids VNA

A $185,000 grant from the Hartford Foundation for Public Giving has moved the Farmington Valley Visiting Nurse Association within reach of its goal of purchasing and renovating the building in Granby where it has housed programs for more than two decades.

The building at 248 Salmon Brook St. in Granby has been “home” to the Farmington Valley Visiting Nurse Association’s Community Programs Department, the Granby Food Bank and the Granby School Nursing program. The building has been leased from the Town of Granby, which decided to sell the building in 2010.

In May 2011, the agency began a Keep Us at Home campaign to raise $350,000 for the project. Approximately $42,000 remains to be raised.

 “This grant will help secure our long term presence in the Farmington Valley and assure the uninterrupted delivery of our important illness prevention services, school nursing program and vital Food Bank,” said Incy S. Muir, VNA executive director.

 

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