RED CROSS LOCALLY FACES BUDGET CRISIS

Red Cross regionally and locally is facing a budget crunch. Providing help for victims of fires, tornadoes and floods has drained its bank accounts, and donations have been slow coming in.

The Cape Girardeau County chapter has donated an additional $1,000 to help the national organization. In turn, they hope to raise $3,500 locally in July.

"The national organization is experiencing some real hard times right now," said Charles Stotz, chairman of the Cape County chapter Board of Directors.

"The Red Cross is on the verge of going into the red," said Michael Shannon, field service manager for the Midwestern Operations headquartered in St. Louis.

Officials in each of the three regions of the country are asking local Red Cross chapters to step up donations to the national effort, as the Cape County chapter has done.

"We are trying to avoid a major national campaign," said Shannon.

He said the budget situation is serious. The Midwestern Operations of Red Cross have a $25 million budget for the fiscal year which began July 1. The regional organization has just $2 million in the bank.

Stotz said: "That $25 million budget is for the little disasters, the things we know will happen every year. Then, if a Hurricane Hugo rolls in, it throws the whole thing off the scale. One Hugo can cost $25 million."

In the last fiscal year, more than 70 major disasters happened in the Midwest alone.

Red Cross has a cooperative agreement with its member chapters. Shannon said: "If Cape Girardeau had a disaster, the national organization would respond to this area. In return, we ask Cape Girardeau to support the national organization."

When Cape Girardeau was deluged by a flood, the national Red Cross organization pumped millions of dollars into the community, Stotz said. "It's pay back time now," he said.

Shannon said: "Every chapter pays into the national fund. There is no limit on what can come back.

He said: "The Red Cross National sends volunteers to a disaster area, but they also send big bucks. After the disaster is cleaned up, Red Cross is still sending money to help families."

This year, he said, Missouri has "lucked out."

Louisiana and Texas and Indiana have had it bad, he said.

In Louisiana alone, 10,000 people have been forced out of their homes because of floods since April. Red Cross assistance to these people cost $6 to $7 million.

Shannon said, "Normally, individuals not affected by the disaster give money to help their neighbors, but that hasn't been the case.

"We spend so much time on disaster recovery, we don't spend the time we should raising money," Shannon said.

Much of the money spent on disaster relief is spent for "little disasters" like home fires. Stotz said, "Little disasters are disasters too."

In the last eight months, the Cape County chapter has helped 33 families as a result of 31 fires in the Cape Girardeau area. A total of 137 people received food, clothing and housing through Red Cross.

Red Cross was also on the scene at the train derailment in Bell City where a chemical spill forced residents from their homes. The chapter also provided help for firefighters in Scott City at a chemical plant fire.

The Cape Girardeau chapter has a disaster relief budget of $6,000 and about $2,000 in the bank.

"We know where some of that money is coming from," Stotz said. But he said they need to raise $3,500 this month. The chapter gave $1,000 to help the national chapter. They need to make up that money and raise an additional $2,500 to meet their anticipated needs.

Stotz said the Red Cross chapter will raise money in July only so it doesn't interfere with the annual United Way campaign. Red Cross gets money from United Way.

Donations can be mailed to Cape Girardeau County Chapter, 2610 Gerhardt, Cape Girardeau, Mo. 63701. For more information, call 335-9471.