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HomeMy WebLinkAboutAgenda - 06-07-1993 - VIII-B 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item N0.4 31I-8 -,3 ACTION AGENDA ITEM ABSTRACT Meeting Date: June 7, 1993 SUBJECT: Orange Enterprises-Additional Funding Request DEPARTMENT: County Manager PUBLIC HEARING YES: NO: X ATTACHMENT(S) : INFORMATION CONTACT: Albert Kittrell Correspondence From Orange Enterprises, Inc. TELEPHONE NUMBER- Hillsborough -732-8181 Chapel Hill -968-4501 Mebane -227-2031 Durham -688-7331 PURPOSE: To consider additional funding request from Orange Enterprises, Inc. II BACKGROUND: Orange Enterprises, Inc. is experiencing a large deficit in funding this current fiscal year. Most of the deficit is related to reduced contract revenue from private companies that subcontract with Orange Industries. Along with the attached information, Kathryn Turner, Executive Director of Orange Enterprises, Inc. , will present more specific budget figures. RECOMMENDATION(S) : As the Board decides. Orange Enterprises, Inc. 499,1 2 April 7, 1992 500 Volley Forge Rood Hillsborough, NC 27278 919-732-8124 Mr. John Link, County Mgr. Orange County P. O. Box 8181 Hillsborough, North Carolina 27278 Dear John: As you and I discussed, Orange Enterprises is facing a significant loss of revenue this year. As of the end of February we are $19,000 in arrears. Since our expenses are fixed, additional revenue is our only recourse. State funding traditionally never covers the full cost of any program and we rely heavily on our contract income to make up that difference. This year has been a discouraging year for contracts. Most of the blame can be laid to general economic condi- tions. As you know, many companies are laying off workers and in this climate, businesses do not subcontract work. To complicate matters the very heart of our mission (our community placement program) is a costly one. This year the state is only reimbursing us at a 20 per cent level of funding. If we can't make up the impending deficit this year, we will have to limit personnel involved in placement--which will translate into a drastic reduction in placements. So far this year we have had twenty people leave Orange Enterprises to work in the community. The ramifications of such a limitation will be twofold: 1. Persons with disabilities who now have the opportunity to exercise their rights to work in a community setting will no longer be able to do so. 2. Community placement opens up a space for someone else to access Orange Enterprises. Right now, we have a waiting list of nine. That waiting list will increase. While the County has been generous to us in the past, I would like to request an additional $10,000 allocation for this year. Orange Enterprises provides excellent services and is well respected throughout the state for our rehabilitation 3 Mr. John Link 2 April 7, 1992 program. In fact, we frequently are asked by state officials and university training programs to serve in a consulting capacity to other agencies who want to upgrade their programs. This year we received a grant to provide transition services to school students; and we are actively involved in developing plans to assist aging developmentally disabled adults as they make the transition into retirement. We also received national recognition for excellent delivery of services when we were awarded certification by the Commission on Accreditation of Rehabilitation Facilities. Orange Enterprises has established an outstanding reputation for Orange County at both local and state levels--a reputation which will be difficult, if not impossible, to maintain without additional funding. But, much more importantly, individuals will lose opportunities to maximize their vocational potential. Some will have to stay in a sheltered setting that is no longer appropriate for them and others who really need our services will have to remain at home. I appreciate you past generosity and also your consideration of this additional funding request. Sincerely, Kathryn Turner Executive Director KT:pw Orange Enterprises, Inc. 4 500 Valley Forge Rood Hillsborough, NC 27278 919-732-8124 April 23, 1993 Mr. Albert Kittrell 200 South Cameron Street Hillsborough, NC 27278 Dear Albert: : In response to your request for more specific figures concerning Orange Enterprises' anticipated shortfall, I am you the following comparisons between last year and this year. These figures are through March of 1991 and 1992. 1991 1992 Difference Contract Income $197,532 $167,444 $30,088 Vocational Rehabilitation $ 22,094 $ 9, 458 $12, 636 (Supported Employment) Total Difference (shortfall) in revenues compared to last year = $42,724 Contract Income is currently $27,568 less than budgeted and Vocational Rehabilitation Supported Employment is $10, 792 less than budgeted. These two items alone account for a $38,360 deficit in revenues. Thank you so much for your consideration of our one-time request for an additional allocation. Sincerely, Kathryn Tur r Executive Director KT:js •