By Emily Monacelli, Truth Staff

emonacelli@etruth.com

ELKHART -- One agency cut from United Way of Elkhart County's funding Thursday is seeing more clients coming in, and now has fewer resources to help them.

"We have an increase in clients because of the economy," said Paula Michalos, executive director of Elkhart Legal Aid Services Inc. "There are people who wouldn't have qualified for our services and because they're unemployed now, they do qualify and need our assistance."

Elkhart Legal Aid provides legal services for Elkhart County residents living 125 percent above the federal poverty index.

It was one of seven agencies dropped from United Way funding after the organization's 2008 campaign garnered $1.7 million, 32 percent less than expected. United Way cited a drop in workplace campaigns, which delivers 60 percent of its funding. The seven agencies -- Big Brothers Big Sisters, Center for Community Justice, Elkhart Legal Aid, Girl Scouts, Life Treatment Centers, Mental Health America and YMCA -- were funded for the first quarter of 2009, but will no longer receive funds from United Way.

Two other agencies -- the Cystic Fibrosis Council and the Elkhart Child Development Center -- were dropped earlier this year for different reasons, according to the organization.

The remaining 17 organizations took 30 percent funding cuts.

United Way officials met with nine organizations in February to warn them of possible cuts, said Darren Bickel, vice president of community investment. United Way had to balance its priorities of education, income and health with the county's immediate needs of food and shelter, he said.

Lost funding from United Way could mean 44 fewer child and mentor matchups through Big Brothers Big Sisters, according to president Tami Maier. Last year, 170 children and mentors were connected.

"It's bad enough to lose that in a good year, but when you lose it in a lean year, it can throw your whole program into a tizzy and almost force programs to go under," she said.

About 85 percent of the agency's families live in poverty and can't pay the program's fees, she said.

United Labor Agency for Community Services will still be supported by United Way, but has leaned more on outside funding, including writing several grants, said Linda Rothrock, executive director.

She, along with executive directors from the other 16 remaining agencies, met with United Way officials Friday morning. The agencies will have to build coalitions and use them to bring people together, she said.

"I came out of it feeling like we're going in a new direction and it's going to be a positive direction," she said.

But the dropped agencies are trying to figure out how to fill that funding gap.

Last year, 1,200 people turned to Legal Aid for help. United Way's funding comprised about one quarter of the agency's budget. That money won't be in its coffers come April 1.

If Legal Aid has to cut services, Michalos said she will try to find lawyers who will work for free for her clients.

Michalos said she would have liked to see all agencies receive the same funding cut instead of some receiving a 30 percent reduction and some getting axed.

While Legal Aid's board is considering fundraisers, they realize it's tough for people to donate right now.

"I don't know how we can raise that much money," Michalos said.

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