Catholic Charities of the Diocese of Arlington will cut services at two of its well-known outreach centers as part of a sweeping program of budget cuts, Executive Director Steve Luteran announced this week.

Christ House, a homeless men’s shelter in Alexandria, will temporarily suspend its overnight program and cash disbursements under the Emergency Assistance program. Reduced staff will continue to operate the food pantry, evening meal program, thrift shop and referral services.

Hogar Hispano, a Falls Church facility offering services to immigrants, will temporarily suspend the Emergency Services program while other Hogar Hispano programs will continue to operate with reduced staff.

The cuts come in response to an unprecedented budget shortfall projected for the agency’s new fiscal year that begins July 1.

"Without taking drastic steps the agency would’ve faced a deficit of more than $750,000," Luteran said. "Although Arlington Bishop Paul S. Loverde continues to provide over $500,000 of funding support to Catholic Charities, the precipitous decline in United Way funding, donations and fees makes these cutbacks unavoidable," he said.

In addition, the Western Regional Office (formerly known as the Winchester Office) that had closed temporarily will not re-open, though the services of an agency social worker will continue to be available to the community on a limited basis. The Fredericksburg Office will remain open.

The service reductions are effective July 1. The agency tried to confine the deepest program cuts to services available from other agencies in the community, Luteran said.

Like many social service agencies in the region, Catholic Charities of Arlington saw revenues drop sharply in the last 12 months due to a weak economy, consumer belt tightening and reduced income from United Way in the wake of that group’s management problems. Revenues from special events, direct mail, and other solicitations fell significantly below expectations.

Catholic Charities had to dip into cash reserves to meet its budget for the fiscal year ending June 30, Luteran said. "As responsible stewards we could not operate at a deficit for two consecutive years. Thus we’ve been forced to slash expenses and look for new ways to raise money," he said.

In a cost-cutting move Luteran said he regretted most deeply, the agency is laying off staff in addition to attrition and the hiring freeze. Fifteen positions are being eliminated at a savings of $500,000. A number of these are part-time slots.

Catholic Charities will freeze new hiring and pay raises across the board. Staff openings in Children’s Services and Family Services will not be filled but services will continue to be provided.

The staff cuts will have a significant and unfortunate impact on the agency, Luteran said. "It pains us beyond words to lose these dedicated people. But we already spend almost 90 cents of every dollar we raise on program services, so there was no other place to make the significant cuts we needed to make," he said.

Three other areas will not be affected by the budget reduction:

• Elderly Services / St. Martin de Porres Senior Center in Alexandria;
• Prison Ministry;
• Loudoun Satellite Office at Christ the Redeemer Catholic Church in Sterling.

These services are already thinly staffed, while the senior center and prison ministry rely heavily on volunteers.

"I hope and pray that the cuts we are announcing today are only temporary, and that we can restore services as soon as our financial picture improves," Luteran said.

Catholic Charities seeks donations to help offset the current budget crisis. Contributions may be made by credit card on the Website or sent by mail to: Emergency Appeal, Catholic Charities of Arlington, 200 N. Glebe Road, Suite 506, Arlington, VA 22203.