FORT WAYNE, Ind. (AP) — The state is further cutting the budget of a successful program that provides counseling to families at risk of child abuse and neglect, leaving it with about a third less of the annual funding that it received just a few months ago.

Funding for the Healthy Families program, slashed from $42 million to $35 million earlier this year, will drop to $27.9 million for federal fiscal year 2011 that begins Oct. 1 and to $24.7 million in 2012, Director Jim Payne of the Department of Child Services told program managers Monday.

“We can still do good work for those most in need,” Payne said.

Program managers, however, said the budget cuts likely would hurt children at risk of abuse or neglect.

“I don’t know how quality isn’t hurt,” said Pat Zakula, executive director of the Children First Center, which runs the Healthy Families program in northeastern Indiana’s DeKalb, Noble, Steuben and Whitley counties. Its funding has fallen from $824,000 to $511,000.

The program works, according to recent statistics Payne provided: Only 1 percent of children in the program suffered abuse, and only 6 percent were neglected.

The program relies on state and federal funding, but both sources face budget constraints. In Indiana, tax revenues for the 12-month period that ends June 30 have come in nearly $900 million less than projected.

DCS also is changing the formula for distributing program funds. Payne said an analysis showed spending ranged from $800 per family to $8,000 per family. A new formula based on county demographic data — including the number of live births and the percentage of children living in poverty — will seek to balance the spending better.

Some eligibility rules also have changed, Payne said. Agencies now can serve only families earning no more than 250 percent of the federal poverty level — for example, $55,125 for a family of four — and services can last for only three years.

Posted 4/20/2010