United Way to cut funding by as much as 10 percent-WEB ONLY

The United Way of Central Indiana announced this morning that it plans to cut funding to the agencies it supports by as much as 10 percent in the wake of steep endowment losses.

Further, the organization is putting a one-year halt on certifying new agencies to protect existing agencies from further reductions, it said.

The organization, which helps support more than 100 human services agencies in six counties, will begin implementing the cuts July 1.

The United Way came up just 1-percent short in its recently completed annual fund-raising drive, missing its goal by about $300,000. But the real losses are coming from its endowment.

CEO Ellen Annala said the United Way projects a $2.9 million loss in revenue this year, brought on by a 28-percent loss in endowment earnings. The value of the endowment has slipped to $55.9 million from $77.5 million a year ago.

United Way said it also would reduce its own operating costs and the costs of its education programs by about 10 percent. It has eliminated 12 positions in the organization, resulting in the layoffs of seven staff members, Annala said. Before the reduction, United Way had 98 full- and part-time employees.

The group is also offering employees voluntary furloughs and curtailing business travel.