Texarkana Gazette

Others to try to fill SWADC void

- By Jim Williamson

The mood was sad as employees and the executive director inventorie­d vans Wednesday at Southwest Arkansas Developmen­t Council.

The vans were used to provide the elderly and people with limited income with transporta­tion to medical appointmen­ts and senior citizen events. That all changed July 21, when the council, which had served

12 counties, ceased operations.

“The programs providing vans were part of President Lyndon Johnson’s War on Poverty started in the mid-1960s. … We’ve served thousands of people in 48 years,” said Jim McPhaul, SWADC executive director.

However, SWADC’s customers will not be left in the lurch.

“The good news is the sister agency, Central Arkansas Developmen­t Council in Benton is one of 16 community-action centers in the state and will assist and assume the functions of the agency,” McPhaul said.

SWADC also will reach out to other agencies for assistance.

The closure of SWADC, a nonprofit organizati­on, culminates a decade of challenges, including the loss of several major programs.

“The loss of Southwest Arkansas’ Head Start early education program, as well as the Department of Energy’s Weatheriza­tion program several years ago, were primary among the causes of the agency’s ultimate closure,” said McPhaul. “Coupled with changes to payment methods in its Medicaid-funded NonEmergen­cy Medical Transporta­tion program, as well as increasing competitio­n from for-profit entities in its Home Health Program, the agency could no longer afford to operate.”

The resultant inability to pay the agency’s 166 employees was an especially devastatin­g blow.

“We can’t miss a payroll. It’s not acceptable to miss a payroll. That’s why we ceased operations,” he said.

McPhaul, who was hired by the Board of Directors in August 2015, said he inherited a agency severely strapped for cash and with declining revenue. It was a “very difficult situation at best and a herculean task at worst.”

“We tried everything possible with very limited resources. Unfunded, government­ally mandated minimum wage increases also were a significan­t cost for us. With no off-setting increases in our revenue stream, we found that we were unable to meet our ongoing responsibi­lities to our suppliers on a timely basis.”

In an effort to curb losses at the agency’s 17 senior centers, the board directed McPhaul to terminate the agency’s contract with the Area Agency on Aging of Southwest Arkansas in October 2016.

“Despite this cost-saving initiative, our revenues continued to decline, making it impossible to stay open,” McPhaul said.

On July 21, the agency laid off everyone except “a few administra­tive employees” tasked with closing the agency’s facilities and consolidat­ing all of its remaining assets for eventual sale and dispositio­n.

“It is important to note that SWADC will eventually meet all of its current financial obligation­s,” McPhaul said. “However, this is a process that will take time to dispose of the agency’s assets and collect all of its remaining accounts receivable.”

Vendors will be contacted individual­ly to discuss account settlement­s, he said.

Overall, “morale is good,” McPhaul said. “Employees are optimistic another entity will come in and they will get a job.”

 ?? Staff photo by Evan Lewis ?? n LaVera Webster, medical billing specialist at Southwest Arkansas Developmen­t Council, files claims Tuesday afternoon. After 48 years SWADC is closing its doors. Webster and her supervisor are the only employees left in the finance department.
Staff photo by Evan Lewis n LaVera Webster, medical billing specialist at Southwest Arkansas Developmen­t Council, files claims Tuesday afternoon. After 48 years SWADC is closing its doors. Webster and her supervisor are the only employees left in the finance department.

Newspapers in English

Newspapers from United States