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Late state payments prompting one agency to close doors

Posted January 10, 2008 10:00 pm

Adriana Colindres

Attention Homes for Youth, which provided academic assistance and social activities for underprivileged children, closed this week because of financial problems that officials there blamed on inconsistent and late payments from state government.

The closure is planned as a temporary one.

In April, the not-for-profit organization at 829 S. Fourth St. will reopen "as a leaner machine," said Lindy Seltzer, a counselor who also was serving as co-executive director in recent months.

For now, though, about eight staff members, including Seltzer, are out of a job.

"The whole thing is just a nightmare," said Linda Langenbahn, president of the board of Attention Homes for Youth.

The agency contracts with the Illinois Department of Children and Family Services to provide up to 16 youngsters at a time with enrichment programs. The offerings include academics, counseling and social and cultural activities.

"This program is of such value to the community and has been around for decades," Seltzer said.

Langenbahn said the main problem is the timing of payments from the state.

Allan Woodson, who also serves on the agency's board, agreed.

"In the recent past, the state has not provided anticipated funding to the agency on a scheduled monthly basis," he said in an e-mail response to questions. "As a result, the board has been unable to satisfy many, if not all, of its monthly financial obligations in a timely manner."

According to records from state Comptroller Dan Hynes' office, Attention Homes for Youth received four state payments totaling $9,045 for transportation costs from April 1 to July 31, 2007.

In addition, the agency received five payments totaling $104,100 for other provided services from July through the end of November. But the comptroller's records show that a $32,283 payment, for services rendered in July, was not issued until Oct. 3. On that same day, the state sent a $26,805 payment for services rendered in August.

A state payment of about $14,500 was issued in November to cover the services provided in September. Then, separate payments of about $18,000 and $12,500 were issued on Dec. 26 and Dec. 27 for services provided in October and November.

"After that happens month after month after month, we've depleted everything we have," said Langenbahn.

DCFS spokesman Kendall Marlowe declined to comment about the situation at Attention Homes for Youth.

But it isn't the only service-provider enduring tardy payments from state government.

"We have maxed out our line of credit at the bank and are going to have to apply for a larger credit line," said Carlissa Puckett, executive director at SPARC, 232 Bruns Lane.

SPARC, which serves the developmentally disabled, has borrowed almost a half-million dollars, "all because the state is behind on payments," she said.

At present, the state owes SPARC for December and January. The payments vary in size, but average about $647,000 a month, she said.

Puckett said her agency has not cut programs or staff so far, but she cannot rule it out.

Janet Stover, executive director of the Illinois Association of Rehabilitation Facilities, said agencies that are part of her organization also are extending and maxing out lines of credit because of late state payments.

Adriana Colindres can be reached at (217) 782-6292.

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