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Insurance crisis hits home

By ANNE LINDBERG
Published March 21, 2007

Pinellas Village was founded 16 years ago with a lofty goal - help low-income, single parents become self-sufficient within five years.

The program has helped many people throughout the years, but now it's facing hard times courtesy of the state's insurance crisis.

"We got hit with a $70,000 insurance increase," said Jackie Tatsak, Pinellas Village executive director. "It's had a major impact on us as a nonprofit."

The higher insurance rates have been a double whammy, Tatsak said. Not only did Pinellas Village have to dig into its $50,000 capital reserve account to pay the increase, the amount of donations also decreased as insurance costs and property taxes climbed higher.

"We rely on money coming from individuals, but (now they) have less money to put into philanthropy," Tatsak said.

"That's money out of their pocket that they can't give. ... I would never want to say we are going to close our doors, but there's always the possibility of anything."

Pinellas Village is not the only nonprofit facing difficulties because of insurance rate hikes.

Girls Inc. in Pinellas Park, which is funded entirely by donations, got hit with a 20 percent increase in property insurance rates, from about $16,000 to about $20,000, said executive director Renee McInnis. The dollar amount of the increase was less than for Pinellas Village because Girls Inc. has a lot less property, McInnis said.

Even so, the rate jump hurt, McInnis said. The money used to pay the insurance premium increase had been earmarked for supplies for the agency's ceramics program. With no money, she said, the program could not be enhanced.

The difficulties faced by Pinellas Village and Girls Inc. do not surprise Gay Lancaster, executive director of the Juvenile Welfare Board, which provides much of the funding for Pinellas Village. The JWB also helps fund other agencies across Pinellas County that provide services to children.

"It's not a single agency, it's a multiple-agency issue," Lancaster said. "We are hearing from programs that this is a tremendous issue. We are gathering data to talk to the board."

Of the 28 agencies that had responded to the JWB survey by last Monday, only three expected their insurance to decrease. Those were Operation PAR, Big Brothers Big Sisters and the Tarpon Springs Housing Authority.

Even though the housing authority expected a decrease in rates, that agency still expected to devote 8.67 percent of its $1.3-million budget to property insurance. Pinellas Village estimated it would spend 7.01 percent of its $1.05-million budget on property insurance.

Lancaster said the increase has been especially hard on Pinellas Village, which is facing other issues.

"They have been struggling financially because of inability to raise significant outside funds," Lancaster said. "Their support has become more and more dependent on organizational funding - foundations and the typical tax funding."

Thus far, Pinellas Village has not had to cut back on services. But the program has increased its rents by $25 a month. Now, a two-bedroom apartment runs $593 a month; a three-bedroom, $747. The 10-acre site at 8384 Bayou Boardwalk in unincorporated Pinellas on the eastern edge of Seminole has 120 apartments.

The program is designed after Warren Village in Denver. Warren Village and Pinellas Village are two of three such programs in the United States. The other is Wilson Commencement Park in Rochester, N.Y.

It targets single parents who were on government assistance and had no way off. Once accepted to the program, the parent is given support in the way of child care, parenting classes and cheerleading. The parent must pay his or her way while attending school or another training program. The parent has five years to turn his or her life around, move out and into a job and a home of his or her own.

Yolanda Ortiz, 30, and her 12-year-old daughter have been residents of Pinellas Village for 31/2 years. She is a full-time student at St. Petersburg College and plans to transfer to the University of South Florida next year. She is studying political science.

"My life before I got here was pretty bleak," Ortiz said. "Coming in, it was rocky the first few months."

Ortiz said that she is certain she will accomplish her goals in life. Referring to the fact that all residents of Pinellas Village watch out for each other, she agreed, "It takes a Village. ... You have 118 other people looking out for your kid."

Pinellas Village

By the numbers

As of January the following numbers indicate the success of Pinellas Village:

294 Residents who received a specialized certificate or degree

151 Residents who found full-time employment in their field after completing their final educational goal

89 Residents who continued their education after leaving Pinellas Village

70 Residents who purchased a home after leaving Pinellas Village

Source: Pinellas Village

Fast Facts:

. insurance costs

Property insurance for select agencies

Source: Juvenile Welfare Board

How to help

For information or to donate, call 399-2500 or go to www.pinellasvillage.org.

The requirements

All potential residents must meet the following qualifications:

- Be a single parent older than 18 with children younger than 18

- Work or attend school full-time (or a combination of both)

- Have three months' job stability if not enrolled in school

- Have school-age children enrolled in a local school

- Every single parent must complete a rental application and submit it with a nonrefundable application fee, copies of pay stubs for one month, and any other proof of income documentation.

The preliminary application process includes a credit check and background check, and each applicant must financially qualify to reside at Pinellas Village.

Once applicants have met all these qualifications, they will be interviewed by the case management team to determine their commitment to become self-sufficient.

Participants must be motivated and have the mind-set to achieve their goals and dreams.

The program

All residents must participate in the Self-Sufficiency Program which includes:

- Working or attending school on a full-time basis (or a combination of both)

- Meeting with an on-site case manager on a monthly basis for the first six months and quarterly thereafter

- Establishing an Individual Training Service Plan that includes a five-year goal and is reviewed annually

- Attending four parenting and four life skill classes annually

- Volunteering 24 hours annually to Pinellas Village

Source: Pinellas Village

[Last modified March 20, 2007, 22:53:00]