Layoffs, Pay Cuts Announced at San Francisco AIDS Foundation

San Francisco AIDS Foundation said Tuesday it was laying off 28 employees and that managers were taking a 10 percent pay cut in the face of a $2.5 million budget shortfall. Managers broke the news to employees yesterday after weeks of discussions with staff about the need for belt-tightening and layoffs. The cutbacks are effective June 30. Executive Director Pat Christen, whose $185,000 salary will be reduced 12 percent, blamed the cutbacks on the post-September 11 economy and the costly launch of a new AIDS charity ride.

"People expressed a lot of sadness, but also understanding of the need to make the decision," said Christen. "They're very committed to this work."

All salaries will be frozen for the foundation's remaining 82 employees. The foundation's budget will be reduced to $20.7 million for the coming fiscal year, down from $24 million. Most of the organization's core services -- including housing assistance, needle exchange, benefits counseling, client advocacy and treatment information -- will be preserved, said Christen. Clients may face longer waits for services, however.

About 68 percent of the foundation's budget comes from private donations. The balance comes from city, state and federal funds. Added to the dwindling donations after September 11 was a protracted and costly legal battle over the California AIDS Ride, of which the foundation was a longtime beneficiary.

In October, the foundation and the Los Angeles Gay and Lesbian Center severed ties with Pallotta TeamWorks, organizer of the AIDS Ride, and announced they were starting their own charity event, the AIDS LifeCycle. The nonprofits said Pallotta failed to return enough of the money raised to client services. In March, the L.A. Gay and Lesbian Center cut 60 jobs and underwent a major restructuring for reasons similar to those foundation officials cited yesterday.

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