Family Services President & CEO Calls for Quick End to State Budget Impasse

Monday, August 31, 2015

For Immediate Release

Pittsburgh, PA (August 31, 2015) Family Services of Western Pennsylvania President and Chief Executive Officer, Stephen Christian-Michaels, today called on the Governor and state legislators to end the state budget impasse quickly before more financial harm is inflicted on the state’s nonprofits. On September 1st, the state will enter its third month without a signed budget. 

“Entities like Family Services that contract with the state are now experiencing considerable cash flow problems”, said Christian-Michaels.  “This agency has now had to make two withdrawals from our recently increased line of credit totaling almost $700,000. Without a quick resolution of the budget impasse, we anticipate our line of credit being depleted by the third or fourth week of  September. “

Even if Governor Wolf and the General Assembly come to some agreement by September 7th, “the funds are not likely to begin to be distributed until the first week of October”, added Christian-Michaels. “We will then have to consider taking out loans with high interest rates, or other steps that may include the cutback of some services or furloughing of some staff until funding is restored.”

Further, Christian-Michaels stated that negotiators need to develop a budget “that keeps human service agencies whole and develop a mechanism in the future that prevents payment delays when there is a similar budget impasse.  It simply is not fair to hold human service agencies and education hostage in budget impasses.”

###

Family Services of Western Pennsylvania, established in 1885, impacts the lives of more than 30,000 individuals and families each year. We deliver innovative and integrated care through more than 40 programs in the areas of behavioral health, intellectual and developmental disabilities and family life solutions. No matter the program, one thing is constant: Our mission to empower people to reach their full potential.

### ###