Week in Review : MAJOR EVENTS, IMAGES AND PEOPLE IN ORANGE COUNTY NEWS : COUNTY : United Way Falls $2.5 Million Short of ’86 Fund-Raising Goals

Suffering from a sagging economic climate and controversy surrounding its counterpart in Los Angeles, the United Way of Orange County fell $2.5 million short of its campaign goal and will have to cut funding to its charitable agencies by 10.5% for the first six months of 1987, officials announced.

Merritt L. Johnson, president of the local United Way, said the 123 agencies would receive $681,727 less funding than the same period last year. Three agencies that joined United Way in 1985 and have two-year funding contracts with the organization will not be included in the across-the-board, 10.5% cutback, he said.

United Way had hoped to collect $19 million this year, an 8.6% increase from the $17.5 million raised last year. But a shift in the economic climate and a tainted public image created by the Los Angeles United Way’s action in lending contribution money to five of its top employees contributed to this year’s shortfall.

The Orange County agency was the fastest growing United Way in the country from 1975 to 1985. However, last year only $17.5 million of the $18.4 million pledged was actually collected. This year, only $16.5 million was collected, 14% less than the goal.

This is the first time Orange County United Way agencies will suffer a net decrease in their funding. Last year they got a 7% increase, but a 5% cut was initiated at mid-year when expected contributions fell off.

David Carroll, Pacific Bell area vice president and chairman of the 1987 fund-raising drive, said United Way would devise new formulas for next year’s campaign in order to stem the two-year tide in which contributions have been short of the goal.