THE WIRE · UPDATED 11:12 PM MDT No story is too small.
NewsSalt Lake City

Salt Lake City Nonprofit Furloughs 110 Workers After City Funding Cuts

Utah.News 1 source cited Details

How this story was published

Published automatically from one public source cited; not yet reviewed by the desk. Tell us if something is wrong ↗

Source

hoodline.com

Utah.News publishes every story with the sources it was built from. Questions or a correction: corrections@utah.news.

AI-written from public sources Written by Utah News AI and quality-checked before publishing.
Salt Lake City Nonprofit Furloughs 110 Workers After City Funding Cuts
Photo via hoodline.com
A Salt Lake City nonprofit has furloughed 110 employees following a significant reduction in municipal contract funding and rising operational costs. The organization reported it was unable to cover one-third of its payroll this month.

Key takeaways

  • Advantage Services furloughed 110 workers starting October 12 due to payroll shortfalls.
  • The city reduced the nonprofit's largest contract from $2.165 million to $1 million.
  • Rising insurance costs increased by more than 300%, contributing to the financial crisis.
  • The nonprofit's annual revenue of $3.2 million relies on contracts for over 97% of its funding.

Advantage Services has furloughed 110 employees after the Salt Lake City nonprofit was unable to cover one-third of its payroll this month, according to a report published October 19. The organization provides employment for individuals facing barriers such as disabilities, addiction, and homelessness.

The three-week furlough began on October 12, impacting workers who perform duties including landscaping, snow removal, biohazard cleanup, and shelter transportation. The organization has already seen a significant reduction in staff, having permanently lost 50 positions in the six months prior to the furlough. According to The Salt Lake Tribune, the nonprofit had 160 employees during that period.

Financial pressures stem from Salt Lake City cutting the organization's largest municipal contract from approximately $2.165 million to $1 million. This reduction, combined with fuel expenses and insurance costs that rose by more than 300%, created the current shortfall. CEO Robert Ferris, who has led the organization since 2014, also co-chairs the Employment and Education Core Function Group on the Salt Lake Valley Coalition to End Homelessness.

Advantage Services operates on a business model relying almost entirely on fee-for-service contracts. Utah Gives reports that less than 3% of the organization's $3.2 million annual revenue is derived from donations or grants. The workforce includes a high percentage of individuals with specific needs, as the organization's 2024 Employment Report states that at least 70% of employees have physical or mental disabilities and 80% live at low-to-moderate income levels.

The stability of the organization remains uncertain as it awaits potential contract renegotiations with Salt Lake City or assistance from other municipalities. The impact of the furlough affects services such as the free shuttle operated in partnership with Shelter the Homeless, which delivered 38,499 rides in 2025.

Article details

CategoryNews
CitySalt Lake City
ToneNeutral
ProductionAI Generated
Report a problem with this story
What's off? Pick any that fit, or just write below.

Every report is read and checked against the story's sources. Your email, if you give one, is used only to contact you about this message and is never shown publicly. Please keep other personal details out of the text. Privacy