East Lyme - The pink slips have been handed out, and next week, someone from the state will be picking up the computers and phones from a child-welfare law firm that has become a casualty of the budget crisis.

Created three years ago as a model firm for the state, the Southeastern Connecticut Center for Juvenile Justice expanded steadily and thrived. The attorneys, child-welfare advocates and office staff competed, in fun, to see who could visit the most children each month.

"We had something special here," said attorney Michael Miller, who founded the firm with attorneys Priscilla Hammond and Tammie Gildea.

It was just over a month ago that Hammond received a terse email saying their $1.1 million contract would be terminated as of June 30. During this year's painful budget season in Hartford, the agency that funded them, the Commission on Child Protection, was merged into the Division of Public Services in a cost-cutting measure. Though the firm was willing to talk about cutting its budget, the public defender's division decided not to renew their contract, which is the firm's only source of funding.

The decision is unrelated to the state employee unions' probable rejection of the governor's budget demands.

Their clients are kids from birth to age 16 who are involved with the Department of Children and Families because they are abused and neglected at home or have other serious problems. The 1,200 files in the firm's caseload - previously handled by a staff of 15, including child advocates - will be divvied up among a few of the attorneys. They have clients in juvenile courts in Waterford, Willimantic and Hartford.

Hammond said she and Miller have reached an agreement with the state regarding the active cases and will be reestablishing their solo practices. They'll miss being able to work together on cases, and with the staff who made the firm successful.

"We just had such a chemistry in this office," Hammond said.

What made the firm unique, she said, was that each child was assigned an attorney and a child welfare advocate. The advocate visited the kids and attended administrative hearings with DCF staff while the attorneys went to court.

"The times our paths have crossed I've found them very helpful, very knowledgeable and toally committed," said Lonnie Braxton, a prosecutor in Waterford's juvenile court. "They always have taken the best interests of the child very seriously."

While they traveled to the children's foster homes or schools most of the time, the staff had set up their Boston Post Road office to be kid-friendly. There were toys and stuffed animals for the little ones and comfortable chairs with foot rests for the teens. On Thursday, a stuffed Elmo doll sat in a space age spinning chair, waiting to be carried out with the files.

Sheila Perry, the first child welfare advocate hired by the firm, had offered to take a cut in pay. Learning she would be laid off, she volunteered to continue helping the attorneys with their caseloads without pay.

"I'm just heartbroken," Perry said. "The kids are losing half of their support system. I formed a relationship with these children. I did what the attorneys were unable to do."

When a 15-year-old runaway refused to speak with her attorney or social worker, "she was able to reach out to me," Perry said.

The attorneys trusted the advocates to know what was best for the kids.

"If Sheila or Kristine (Johnson) say something to me, I don't second-guess it," Miller said. "I go into court, and I advocate for it."

The firm members said they wanted to dismantle their office with dignity, but couldn't help but feel sad to walk away from something that worked so well. Most of the firm employees will be collecting unemployment compensation until they find other work, Hammond said.

k.florin@theday.com