I want to share with the community the affects the economy has on non-profit organizations in Winona, and in particular, Winona ORC. As like most of you, things are tough.  Winona ORC provides jobs and training to over 320 people with disabilities on a daily basis. Our business operations include packaging, assembly, and cleaning services for area businesses and other organizations.  We get about half of our operating budget from business operations and the other half from governmental agencies, the state and counties.

Last year our organization suffered by $309,000 as several of our customers were severely affected by the housing crisis and the downturn on the economy. We had to cut four staff positions to balance the budget. In turn, more pressure has been added on existing staff as they have taken on the additional responsibilities to make up for the staff cuts. This is happening statewide with 25.6% of non-profits surveyed in MN reporting staff cuts in 2008, and 54.5% reporting decreases in total revenue.   Business continues to be down, and now we are slated to receive reductions in governmental funding because of the state’s fiscal crisis.  If that happens as currently planned, we will have to cut more staff positions and serve fewer people (85% of our budget is payroll for staff and workers with disabilities). When we make cuts, we add to the vicious cycle that is affecting everyone, and in addition, the government’s costs go up because they have to pay for more expensive programs to help the people we can no longer serve.  More importantly, the must vulnerable people in our community suffer. The “non-profit sector” makes up about 10% of the Winona business market and we can not afford to see governmental cuts in 2009 when slow business operations are already a major concern for revenue.

We are asking the state legislature to make wise choices, to not cut programs that will actually increase costs, and also not to cut other programs for people with disabilities any more than absolutely necessary. While we thank the state for all that has been provided in the past, we ask for them for their understanding and support now for the long term viability of Winona ORC and other non-profit organizations. We also want to thank the people of Winona for all of the business, support and donations we have benefited during our 36 years in the community, and we hope to see your continued support for many years to come.