File illustration
This drawing by former Chattanooga Times artist John Wood illustrated the Neediest Fund campaign in 1990.

The state of the economy and unemployment this year have brought a new group of people to local charities -- those who've never asked for help before.

"The greatest needs we see on a regular basis are utilities and rent because people are in pretty desperate situations and they are having to make very difficult choices, 'Do I pay my rent or do I pay for my medicine?'" said Sandra Hollett, chief executive officer of the Partnership for Families, Children and Adults.

Partnership case managers have traditionally helped people with these types of emergency needs with money raised through the Chattanooga Times Free Press Neediest Cases fund-raising campaign, which kicks off today.

From Thanksgiving until the end of the year, the Times Free Press asks readers to donate to the fund, which this year already has helped 368 people, 17 more than last year. The Partnership uses the Neediest Cases fund throughout the year to fulfill needs that cannot be met through other sources.

The campaign is a holiday-time tradition for the newspaper, said Tom Griscom, publisher and executive editor of the Times Free Press.

"The beginning of the holiday season is an appropriate time to remember those who may be in need," he said. "(It) brings together contributions from the community that allow the Partnership to provide support throughout the year."

Linda Rath, family financial counselor at the Partnership, said about 25 percent of all Americans have seen a drop in their income this year for a number of reasons, including not getting overtime, pay cuts, lay-offs and furloughs.

"And about half of Americans tell you they don't track their income and spending at all. They get the bills and they pay the bills," she said. "But when the money stops coming, the bills become more than the income and they just can't afford it anymore."

The unemployment rate in Hamilton County jumped from 5.9 percent in September 2008 to 8.7 percent this September this year, the latest data avail, with more than 14,000 people without jobs, according to the latest figures from the Tennessee Department of Labor.

In neighboring Murray and Whitfield counties in Georgia, the unemployment rate was 12.4 percent in September, according to the Georgia Department of Labor. That rate is among the highest in the state.

To help these families, including some Neediest Cases beneficiaries, learn how to manage budgets battered by the economy, the Partnership has launched a family financial counseling program.

A $50,000 grant from an anonymous donor helped start the family financial counseling program, officials said, but also will serve as a bridge to help them access other social services.

The program -- which is free -- will use the funds for outreach efforts, to cover costs associated with equipment and supply needs, as well as staffing, occupancy costs and other expenses for the startup.

Mrs. Rath said she hopes to serve between 300 and 400 families through the program, but the ultimate goal is to work with people over the next year and help stabilize their finances so they won't need resources such as the Neediest Cases.