By KALEY CONNER

kconner@dailynews.net

One month into a new year, staff members at Developmental Services of Northwest Kansas are clinging to hope.

But they're also facing the grim reality that an additional $665,000 needs to be trimmed from an already lacking budget this fiscal year -- between January and June.

"That is the reality," DSNWK President Jerry Michaud said. "And I do not want to convey a message that we are in a hopeless situation, because I do not want our staff to feel any more challenged by the circumstances.

"I don't convey that to create more anxiety, because there certainly is enough of that to go around."

News of the most recent state-imposed budget cut came in November, following several rounds of staff layoffs and service reductions.

A cut of $496,000 was handed to the private, non-profit organization in July, prompting the elimination of 22 full-time equivalent positions, which affected 32 people.

The January allotment resulted in the loss of an additional 20 full-time positions, which affected 25 employees.

A group home for individuals with developmental disabilities was shut down in Hill City, with a second Hill City home set to close in March. While some of those residents were able to be placed in another Hill City home, four will have to relocate.

Another home was closed in Hays.

"We don't want this. But we're forced to be responsible stewards with the resources we have at our fingertips, but it's becoming a more ...," Michaud paused. "Almost an impossible task."

The organization also has eliminated more than half of holiday benefits for employees, reduced hours for home educators in infant and toddler services, and respite care nearly has "dried up," he said.

DSNWK is dipping into insurance reserves and using private donations for general operations. Faced with the inability to keep paying rent for administrative office space, their landlord reduced monthly costs to give them a break, Michaud said.

And the cuts might not be over. These changes have cut about $487,000 from the operating budget, leaving about $200,000 yet to be eliminated to meet the most recent allotment.

The latest cycle of cuts follows drastic changes made in 2008, when 14 full-time equivalent positions were eliminated, affecting 19 employees, and services were reduced throughout the region.

Wheatland Development Center in Colby was shut down, as well as a ceramics studio and shop in Atwood. The Oakley office was downsized by two-thirds.

Another group home was closed in Hays in 2007.

The organization has been lobbying for an increase in state funding since at least 2007. While the shortfall isn't entirely due to the economic downturn, the current state deficit is exacerbating the problem, Michaud said, noting DSNWK is required by state contract to provide services to individuals in crisis.

Michaud encourages people affected by these services to contact their legislator, and added he hopes the state will begin to look at a revenue increase.

"I'm a taxpayer as well, and I don't like to have any more taxes like the next guy," he said.

"But I do know ... we have to meet our basic obligations. And I believe, fundamentally, meeting the needs of our most vulnerable is at the core."