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Budget Impasse Affects All

Tuesday, 1 September 2009 08:43 by brian

Pennsylvania’s budget impasse is making the news as often these days, but the stalemate goes on in Harrisburg. Hidden from view (until now) are the affects of the budget impasse on hundreds of nonprofits and social service agencies and their clients throughout the state. As of the end of August, a United Way of Pennsylvania survey showed that over $114 million was owed to these agencies for services already delivered. Among other results from the survey of nearly 600 area nonprofits:

· Almost one-third (31%) of the agencies responding reported that they had no sources of money remaining to help them through this crisis period.

· One-third (33%) of the agencies responding reported that they had drawn funds from credit lines or other loans in order to continue delivering services.

· 45% of the agencies responding report that lack of government reimbursement for services has hindered their ability to provide regular paychecks to their employees.

· 27% of agencies responding reported that they had already initiated staff layoffs, and another 20% indicated that they would have to do so if reimbursements are not received by September 30th.

· Half of the agencies responding reported falling behind in payments to vendors.

· Only 27% of agencies reported that the lack of reimbursement has not yet impacted their ability to deliver services.

Nonprofits make up approximately 15% of the Pennsylvania economy. The lack of funds coming from the state is affecting their ability to provide vital services, pay their mortgages, and pay vendors like us.

Area agencies recently held a rally in Media to draw attention to the very real impact of the stalemate. Here are links to some of the coverage we helped generate for the event:

Pennsylvania Impasse Hits Schools, Services

Wall Street Journal - Kris Maher

Nonprofits call on state to end impasse

Philadelphia Gay News - Jen Colletta

Pa. Budget Crisis Has Area Non-Profits on Brink of Collapse

KYW1060.com - Steve Tawa

Service agencies in crisis over Pa. budget impasse

Philadelphia Inquirer - Joelle Farrell, Amy Worden

Social service agencies protest budget deadlock

Delaware County Daily Times - Vicky Thomas - ‎

Coalition plans rally at courthouse

Delaware County Daily Times - ‎Aug 26, 2009‎