UNITED WAY TO CUT AID, DEBT; CHARITIES TO GET 30 PERCENT LESS THAN PREVIOUS ALLOTMENTS.

Byline: David Greenberg Daily News Staff Writer

Seeking to erase a $900,000 debt within three years, the United Way of Ventura County is cutting its allocation to five dozen local charities by more than 30 percent, officials said Friday.

The umbrella agency will distribute a shade over $2 million to a variety of nonprofit agencies countywide. This compares with $3 million it planned to distribute, and $2.6 million that it actually contributed, in the face of a financial crisis last year.

United Way officials said that in determining this year's allocation, they had to balance the requests of member agencies against the need to eliminate a deficit, which stood at $1.2 million just 10 months ago.

``We feel that the community as a whole benefits when the United Way is a financially strong organization,'' said Sheryl Solomon, president of the county chapter. ``We want donors to feel confident that we are fiscally responsible and will always be here in the community to serve the needs of our member agencies.''

Initial projections call for the deficit to be reduced by at least $200,000 this fiscal year, she said.

Interface Children Family Services will lose about $100,000 from the $284,000 it normally receives for 10 of its 29 programs.

``Obviously we're disappointed, but we understand why (cuts) are necessary,'' said Chris Rutter, community services director. ``We've always been very pleased to be a United Way agency. It has been a big help to us.''

Rutter said her office hopes to make up the difference through endowments and fund raising and is not planning any layoffs.

The United Way has received $3.44 million in pledges for fiscal 1998-99, which began July 1, with $601,000 earmarked for its initiative programs: Ventura County AIDS Partnership, Children's Services Network and the Ventura County Leadership Academy.

More than $784,000 in pledges have been designated to nonmember agencies in and outside of Ventura County at the request of donors.

United Way also funds four Los Angeles-area hospitals that provide services not offered by medical institutions in this area.

``We do not offer these specialized services in Ventura County, so we list them on our pledge card for donor designations,'' Solomon said. ``If Ventura County residents come to them with special medical needs, they agree to provide the service.''

The agency, under a new financial plan, will also earmark about 14 percent of its pledges to cover unforeseen revenue shortfalls.

The United Way received roughly 90 percent of its funding from its ``workplace campaign'' where money pledged was automatically taken from workers' paychecks countywide.

In compiling previous budgets, United Way didn't take into account donors who moved outside the county, were laid off, or reduced or eliminated their contributions due to a personal emergency.

``That's where United Way (made mistakes),'' Solomon said. ``We have given away more dollars than we had available. If we don't calculate our designation flow accurately, we will not have an accurate net allocation amount to distribute to our member agencies.''

When the fiscal crisis was discovered in September, United Way's 42-member board of directors implemented a $7.5 million cut in funding through this April.

Board members hiked the reduction to 30 percent for May and June when they realized the deficit was worse than expected.

They also passed a resolution to eliminate the agency's debt by June 2001.

Solomon called upon the public to contribute to United Way, stressing that if revenues are more than anticipated, the final allocations to charities will increase and more of the deficit will be chipped away.

``If for some reason they stop giving, then everybody hurts, everybody loses,'' she said.