KidsPeace lays off 79 employees ( PA )

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$20 million budget cut prompted by state's decision to halt new admissions.   KidsPeace Corp. has laid off 79 workers and slashed its 2008 budget by $20 million, following the state's decision last month to halt new admissions because youths had been injured while being restrained.

Most of the workers who were shocked with pink slips Thursday afternoon worked at the organization's national headquarters in North Whitehall Township. Another 64 positions now empty will not be filled, according to KidsPeace Vice President of Communications Mark Stubis.

The Department of Public Welfare last month cut off new admissions until KidsPeace, which treats troubled youths, changes policies that this year resulted in injuries to the seven youths, including broken bones. ''With every kid that gets better, our census drops because the state has put a hold on new admissions,'' Stubis said. ''That has forced us to lay people off. This is a very sad day at KidsPeace.''

KidsPeace is a $170 million-a-year operation that has been treating youths in crisis for 125 years. It now has 5,000 children and teenagers in 50 centers in 10 states, and in foster care programs. Its North Whitehall campus has 330 residents, and 80 more live at its center in Salisbury Township. Before its troubles this year, KidsPeace had quietly become the Lehigh Valley's 13th largest employer with 1,600 local workers.

The 79 employees with lesser tenure were asked to pack up and leave with only the contents of their desk and a two-week severance.

Since KidsPeace's doors were closed to new youths, the number of residents in its Pennsylvania programs has dropped from 500 to 450, and unless admissions are reopened, they'll fall by another 100 youths by year's end, Stubis said. With the average reimbursement for each youth about $275 per day, that reduction adds up to the loss of $1.2 million in revenue per month.

Stubis said 80 percent of the layoffs were administrators and their staff, with most counselor positions preserved to keep programs strong.

Stubis did not escape unscathed. His New York office has been closed, largely because his two-person staff was laid off. He now works from his home.

''The cuts are painful, but we believe they'll keep us strong until we can work with the state to reopen admissions,'' Stubis said. ''Obviously, this has been very difficult for our staff, our kids and our families.''

State officials are taking no blame for that.

''We had to take action to protect the kids'' said Anne Bale, deputy press secretary for the Department of Public Welfare. ''Any action they've taken in response is on them.''

In early September, DPW officials stepped in and cut off new admissions until KidsPeace adds policies that better protect its young residents.

Though state officials say several aspects of the KidsPeace operation are now under closer scrutiny, at the heart of the state's concern is the seven injuries that residents suffered, including broken legs, arms and ankles, while being restrained by KidsPeace staff this year.

Because some of the youths have been abused and are severely emotionally disturbed, it is sometimes necessary to restrain a youth who is trying to harm themselves or someone else. According to KidsPeace, roughly 2,000 of the 5,000 youths it treats are either suicidal or prone to self-injury.

KidsPeace counselors are trained in a specific method, called Professional Crisis Management, that first tries to calm a youth, but as a last resort calls for three staff members to use a series of wrestling holds to restrain an out-of-control teen. KidsPeace is trying to alter those methods to reduce not only the number of times it has to restrain youths, but the number of injuries that occur when it does.

''We're working through this process and KidsPeace has been very cooperative in working with us,'' Bale said. ''But right now, there is no timetable on when admissions may be reopened.''

KidsPeace is hoping that changes soon.

''We're trying to look at this from a positive view,'' Stubis said. ''I'd expect to be accepting kids again by the end of the year. If not, well, I'd rather not think about that.''