Salt Lake City’s recent reduction of its contract with Advantage Services, a nonprofit that employs people facing homelessness, disabilities, addiction and criminal‑record barriers, has led to a three‑week furlough affecting 110 employees. The organization, founded in 1992, provides cleanup, biohazard removal, landscaping, snow removal and transportation for homeless service providers, as well as kitchen staffing for supportive‑housing sites.
Contract cut triggers furlough
According to CEO Robert Ferris, the city lowered the contract’s value from roughly $2.165 million to $1 million. “Advantage Services began a three‑week furlough Oct. 12 after it could not cover a third payroll in October,” Ferris said. “The nonprofit had 160 employees six months ago and has since permanently lost 50 positions.” He added that insurance costs had risen more than 300 % and fuel expenses were also climbing, making it impossible to keep the organization financially stable.
City’s rationale
Salt Lake City officials explained that the reduction came after the municipality moved much of its cleanup work to an internal Urban Services Division created in spring 2025. The division reported diminished demand for outside contractors, prompting the city council to approve a $1 million cut in spring 2026. City leaders say they continue to seek additional work for Advantage Services, including projects in parks and along city streets.
Impact on workers and residents
Furloughed employees describe the loss as a threat to their housing and basic needs. Alexander Adam, who was hired after losing a custodial job, said, “It kept my home. It kept me off the street. Without the job I would have definitely drowned.” Becky V., a cook at Valley Woods Bistro inside permanent supportive housing, worries about residents who rely on her team for their only daily meal. “What do I say when they ask me what’s for dinner tonight? We’re closed for three weeks now and I just heard it might be forever,” she said.
Future outlook
Ferris estimates the nonprofit needs about $500,000 to operate through the end of the year. Advantage Services is pursuing additional contracts, fundraising efforts and possible partnerships or a merger with another nonprofit to preserve jobs and services. While Ferris believes the organization’s executives will find new employment if the nonprofit cannot reopen, he emphasized concern for the 107 remaining employees who depend on the agency for their livelihoods.
Community response
Local advocates for homeless services argue that the city’s cost‑saving measure overlooks the broader societal value of providing work to those most in need. “The real cost is helping people, working with those who are the most vulnerable, getting them back into society,” Ferris said. “Our company could provide the service at a lower cost and were making an impact with the homeless.”
The situation highlights the tension between municipal budget constraints and the mission of nonprofits that serve Utah’s most vulnerable citizens.
Original reporting: FOX 13 KSTU (Scripps) – Salt Lake City — read the source article.
