Hard times hit Wilder Foundation; jobs, services being cut

The Wilder Foundation plans to cut 260 jobs and end programs affecting about 5,000 individuals and families.

By JEAN HOPFENSPERGER, Star Tribune

Last update: October 14, 2009 - 10:57 PM

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The Wilder Foundation will end its home health services for the elderly, close the doors on its residential treatment centers for troubled children and end several other programs as part of a budget-cutting strategy announced Wednesday.

Notices went out to the nearly 5,000 individuals and families in the east metro area who will be affected by the changes, as well as government officials. The foundation, a nonprofit health and human services organization that has served the St. Paul area since 1906, hopes to find other nonprofits to pick up some of the programs so clients will have a soft landing.

Wilder President Tom Kingston said the foundation has been hit hard by reduced government reimbursements for health and human services, reduced ability of clients to pay, and weaker revenues from its investments.

"We came to the conclusion that things were not going to change in the near future,'' Kingston said. "We needed to adjust our spending so we don't erode our endowment for future generations.''

The foundation's spending cap has long been 5 percent of the value of its endowment, which is about $190 million, he said. But as economic pressures hit and its own earnings dropped, the foundation began pulling down an extra $5.4 million a year to cover the gap, said Kingston.

The Wilder Foundation operates more than 70 health and human services programs in the east metro area, where it is the largest private, nonprofit human services provider.

Kingston said about 260 jobs will be eliminated over the course of the next year.

Perhaps the most significant casualties are three residential treatment programs for deeply troubled youth -- the Bush Memorial Children's Center for children ages 5 to 14, and Holcomb and Spencer Houses for older children.

Wilder officials and parents at the centers say they are unique in the metro area because they specialize in abused children with severe attachment disorders.

Kirsten Grunnet, a St. Paul nurse, had just finished celebrating her daughter's birthday at the Bush Center yesterday when she received a call saying it would shut its doors in April. She and her husband have two adopted daughters at the facility, and fear the future without its support.

"They [the girls] came from a horrific situation,'' Grunnet said. "People see these kids and want to lock them up and throw away the key. Bush [Center] gives them a chance to heal. We're praying that some millionaire comes along and picks this up.''

Other services slated to end include:

• Housing: Wilder will discontinue managing 1,100 apartments in 12 locations in the St. Paul area. It will sell the six apartment complexes that it also owns.

• Home services for the elderly: Roughly 600 senior citizens who receive services from visiting nurses and home aides through Wilder will be transferred to another nonprofit program.

• Jobs First program: About 3,000 inmates at 10 Minnesota correctional facilities will no longer get help from Wilder as they transition into society.

• Neighborhood Leadership Program: The program that grooms about 60 emerging community leaders each year will end.

"Every one of these services does a really good job,'' Kingston said. "But we can't keep overspending.'' They will be eliminated during the course of the next year or so, ideally as new providers take over the work, he said, adding that the majority of services to children, families and the elderly will not be affected.

"This is a big deal for us,'' said Kingston. "But Wilder is always trying to adjust to the times.''

Jean Hopfensperger • 612-673-4511