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Spending To Grow
The Jewish Community Center is moving forward, despite its deficit.
LONNY GOLDSMITH
Staff Writer
hree years ago, the 70-year-
old Jewish Community
Center of Metropolitan
Detroit found itself in a
new position: in the red.
Up until then, the JCC was
operating with a surplus, albeit a
small one, as a result of hosting the
Maccabi Games in 1990.
"In 1995, nothing exciting was hap-
pening, and that money [$100,000 in
excess contributions from the Maccabi
Games] was running out. Now, we are
just getting by," said JCC Executive
Director David Sorkin.
A few reasons for the deficit: a loss
of members, static Jewish Federation
allocations and lower allocations from
United Way. Sorkin said the 1995 bud-
get showed that expenses had otherwise
grown at a normal rate, but revenues
were down. In 1995, the Center lost
500 Health Club members.
"We weren't keeping up with main-
tenance, and we cut some staff posi-
tions and didn't give raises," he said.
"That equaled less services, less updated
equipment and less quality"
United Way allocations are down at
many area agencies, Sorkin said. He
speculated that unemployment, special
needs programs and the homeless are
taking more of the dollars.
The 1997-98 JCC budget includes a
$528,160 general operations allocation
from the United Way. That's down
almost 7 percent from 1995.
But there is good news:
In the current fiscal year, which runs
from June 1, 1997, to May 31, 1998,
the Jewish Community Center budget-
ed for a $391,109 deficit, down from
$531,183 in 1996.
The 1998 JCC Maccabi Games,
hosted by metro Detroit, will generate
an estimated $50,000-$100,000 sur-
plus for the Center, which will be fac-
tored into the 1998-99 JCC budget.
Even with the 9-percent reduction
in this year's JCC deficit, no other con-
stituent agency of the Jewish Federa-
tion of Metropolitan Detroit is operat-
ing with a deficit, according to Howard
Neistein, the director of planning for
Federation.
Out of this year's $8.2 million JCC
1/30
1998
8
budget, more
than half goes to staff salaries, and
around $2 million goes for upkeep of
the buildings, including electricity, gas
and maintenance. Building operational
costs increase at 2.5 to 3 percent per
year, according to Sorkin. The approxi-
mately $2 million in remaining dollars
in the budget are for miscellaneous
supplies, from typewriters to exercise
equipment.
The Center has 75 full-time and
100 part-time employees.
This year's budget shows a 9-percent
increase in expenditures from 1996,
which represents some raises for first
time in three years, and some much-
needed maintenance repairs, Sorkin said.
The repairs include repainting 85
percent of the Maple/Drake facility,
and updating the tiles and plumbing at
the Health Club.
The JCC also hired Jim Karshina,
its first chief financial officer, and Stu-
art Wachs, the sports and recreation
director.
The JCC, according to Sorkin, gets
became the director of development,
and the position of chief administrative
officer (CAO) was created and filled by
Karshina.
The Federation has been supportive
Employee Compensation
of the progress the Center has been
$4.8 million
making. "Over the past couple of years,
the Center's operations have improved
Building Operating Costs-
dramatically," said Mark Davidoff, Fed-
$2.9 million
eration's chief operating officer. "There
is a brighter picture painted today than
Professional Fees, Outside Set-vices,
a couple of years ago when the deficit
Household, Food and Office Supplies
started.
$818,000
"There has been a concentrated
effort by lay leadership and improved
management structure, specifically
coming from Sorkin."
When Sorkin came on board, the
decision was made to spend rather than
reduce the budget. "We need to spend
money to make money," he said.
"Increased support for Jewish program-
ming is coming from donors, but also
from [the Center] just spending money.
This is an investment in the future, and
this is where we need to be spending
the money."
The major difference, according to
Sorkin, is the addition of the Judaic
enrichment program, which was a new
venture for the JCC.
"We're developing the quality of
core programs, and refocusing dollars
more money in gifts, grants and contri-
to this."
butions then any Center in the coun-
Sorkin is projecting a $200,000
try. But it also has the least amount of
budget
deficit for the 1998-99 fiscal
money coming in from program service
year,
and
a deficit increase in the 1999-
fees of any Center in the country
2000
budget
year.
because of the lack of programs and
"We expect that during renovations
quality in the programs that are
(the JCC is planning a physical restruc-
offered.
turing of the Maple/Drake building),
"In part, we had depended on the
there will be a downturn in growth,"
Health Club," Sorkin said. "We had
he said. "The year after it finishes
been so strong in that area that we did-
(2001), we expect slow growth and
n't have to depend on our other pro-
then
break even by 2003."
grams like day care and camp.
According to the Federation's Neis-
"Once massive competition started,
tein, the deficit does not necessarily
Health Club membership dues went
mean the Center will get a dramatic
down, and we realized we needed to
increase in its Allied Jewish Campaign
diversify and put more than one prod-
allocation for next year.
uct on the shelf," he said. "In this case,
"Money doesn't have to come from
the product was there, but we hadn't
allocations,"
he said. "There are multiple
been concentrating on it."
ways
in
which
dollars can go: capital
However, since the Center began
campaigns, endowments and loans.
renovating its health clubs, the JCC has
There are other ways that the Federation
seen a net increase of 300 members.
and United Jewish Foundation can help.
Sorkin has changed the way the JCC
"We won't do something that will
is run since his arrival from the
negatively
impact other agencies." 111
Delaware JCC in June 1996. Then-
Executive Director Mort Plotnick