UPDATED: Massive Layoffs at Troubled ProCAP
Friday, December 16, 2011
The embattled Providence Community Action Program (ProCAP) will lay off 20 employees, GoLocalProv has learned.
The taxpayer-funded nonprofit, which provides low-income residents with heating assistance, weatherization and several other programs, filed for receivership this week. The organization is currently under federal investigation and Mayor Angel Taveras has said "staggering mismanagement" has led the program into a troubling fiscal situation.
The organization's Executive Director Frank Corbishley is currently suspended.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST“The layoffs announced today were unavoidable and a direct result of the enormous financial strains on ProCAP,” said Frank Shea, ProCAP’s interim executive director. “It is truly unfortunate that we were forced to deliver this news at such a difficult time of year. Regrettably, the former management failed to deal with the harsh financial realities facing the organization for some time and in doing so, missed an opportunity to restructure staff in a more timely and orderly process.”
ProCAP received about $12 million in federal funds during the 2011 fiscal year. On Wednesday, spokesman Bill Fischer said the organization currently has a $2.2 million deficit.
As of November, the organization had 58 employees with a payroll nearing $2 million.
The layoffs come just weeks after the state eliminated a $1.7 million weatherization contract with the organization. The state has also warned that without substantial changes to the organization, funds for the Low Income Home Energy Assistance Program (LIHEAP) could be cut.
