Southmountain tightening belt in response to cuts

The cuts to social programs proposed as part of the federal budget — like the Medicaid cuts contained in the so-called “Big Beautiful Bill” — may not have a major effect on Southmountain Children and Family Services.

But other reductions in funding for the 122-year-old charity headquartered in Morganton have already taken a heavy toll, Executive Director Chris Jernigan said.

Southmountain, which provides foster care and other resources for children suffering from abuse and neglect, has seen an 80% decrease in federal funding over the last five years.

Jernigan explained Southmountain once received substantial funds from the federal government’s Victims of Crime Act (VOCA), which awarded grants with fines generated from white-collar, corporate crimes.

The VOCA grant was the primary source of federal dollars for the organization. But Jernigan said a drop in the number of those types of prosecutions beginning about five years ago — during the height of the COVID-19 pandemic — dried up the revenue stream.

Last Friday, Jernigan talked about those cuts and the possibility of more looming ahead as he was driving back to Morganton from Washington, D.C., where he was attending a conference with a group asking legislators for an increase in federal assistance.

“Right now, we’re not caught up in these federal fund cuts,” Jernigan said, adding Southmountain has not had a reduction in services. “But the lack of federal crime money has really put a damper on us.

“That’s actually why I’m up here in D.C. I’m up here for a conference, but we’ve been meeting with our representatives and senators because there’s a bill we’re trying to get passed that would take excess crime money out of a different fund and put it back in our crime fund.”

The loss of federal money has forced some staff layoffs at Southmountain, including the organization’s grant writer. Jernigan said he and others are now sharing that work. He added Southmountain hasn’t had to cut any members of the staff who work directly with the children.

Still, the charity is asking more of the community than it typically does.

“We just sent out our second appeal letter for the year,” he said. “We always just send out one appeal letter. This year, we’ve done two. We’re writing more grants than we’ve written in the past, that kind of thing. And we’re obviously tightening our belts. We’re just asking our faithful public to help us more than they’ve ever helped before.”

Jernigan said the State of North Carolina has helped defray some of the costs, but can’t make up for all of them, especially in recent months.

The state allocates an equal amount to all children’s advocacy centers such as Southmountain. Jernigan said Raleigh had begun ramping up its contributions when Hurricane Helene wrecked Western North Carolina last September.

“They (N.C. General Assembly) really have done a good job of supplementing this loss that we’ve been feeling,” he said. “The problem is that we were anticipating getting even more to help supplement this loss, but when Helene hit, that wiped out our chance of getting any more state funds.

“(Helene) was the big hurt for a lot of folks,” Jernigan continued. “Our funds need to go to Helene recovery and rightfully so. There’s no question about that. But it’s going to take us years to overcome that, and we need all the federal and state help we can get.”

As for the federal budget, which includes $800 billion in proposed Medicaid cuts over the next decade, Jernigan said he’s choosing to remain optimistic that lawmakers will opt for a less damaging compromise.

Otherwise, he said the charity may lose its mental health therapists, who are largely funded via Medicaid.

“Without Medicaid funding, it might be impossible to keep mental health therapists, but I’m not going to go there yet,” he said. “I’m not going to think that yet, because I really believe nobody wants to see services cut.

“I don’t think they’re going to cut services to abused children.”