State money slow to come for Larkin Center

Friday was supposed to be payday for the employees at the Larkin Center.

But because of delays in state funding, it's been pushed back to at least Tuesday, a top official said.

The state owes the Elgin organization $1.5 million in aid, money that dates back to May, money that center officials thought they'd have in hand by now.

Of that, $200,000 was slated for staff salaries, said Executive Director Dennis Graf.

"Because money is not flowing from the state agencies because of the late budgets, everything is in a state of confusion," Graf said. "It's created a perfect storm - and it's not just us. It's agencies all across the state."

Officials used the center's reserves and credit line to cover the May and June salaries for its 200 employees.

But leaders have since exhausted those options and turned to donors for the $200,000, with the final dollars rolling in Friday morning, Graf said.

"Fortunately, we have some wonderful people who believe in our cause and have been helping us get through," Graf said. The 110-year-old organization offers family counseling for people with mental and behavioral issues, operates a therapeutic day school and houses up to 70 troubled youths between the ages of 8 and 18 all across the city.

Over the past three years, the center has taken drastic moves to stay in business.

Those measures have included freezing raises for the nine top executives, laying off roughly 20 staffers, shortening the work day and cutting certain programs, Graf said.

As for the next payroll, Graf is hopeful state funds will begin flowing in August so this problem doesn't happen again. "That's what we're counting on," he said. "This is the most difficult time we've ever seen."