The agency later slashed its budget by $20 million and laid off 79 workers.
The Washington School closed for the academic year in June, but KidsPeace officials this week decided not to reopen it for the fall. A spokesman says the programs will be moved to KidsPeace's main campus nearby.
KidsPeace serves 10,000 youths with behavioral problems in hundreds of foster homes and 65 centers in 10 states.
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Information from: The Morning Call, http://www.mcall.com