Issue #1 for 2009: The PA Budget impasse directly impacts Latinos!

“Pennsylvania lawmakers announced agreement Friday on a budget ‘framework’ that could end an impasse that has made the state the last to pass a spending plan,” said news reports on Friday, September 11th

This sparked confusion and even outrage among non-profits organizations who are implementing contingency plans to prevent internal budget cuts. Some non-profits have already closed due to lack of funding. One 30-year-old organization, Centro Claver, is closing down soon due to the lack of funds to run their programs and pay their staff.

“In Pennsylvania, a survey of 585 nonprofits in the southeastern part of the state concluded that the agencies were owed a total of $114 million by the state. A third had exhausted all of their ready cash, including savings and credit lines. Many said they are expecting to close by September” The Wall Street Journal

Governor Rendell quickly voiced opposition and threatened to veto it, stating that such temporary solution will do more damage than good to many organizations waiting for funds as well as public services (education and health care). He also expressed concern that with this “framework” the state will be back in the same position next year. On Monday September 14th, legislators were back to the table to resume budget discussions. The last draft of the budget states an increase in spending for education and health, but not as Gov. Rendell had expected. Part of the state budget also includes an increase in tobacco and sales taxes.

This situation is not limited to non-profits in Pennsylvania. A reporter from The Nation writes about the financial woes that the ACLU (American Civil Liberties Union) has experienced since the presidential campaign. ACLU saw a large number of funders and donors pour their money into the democratic presidential campaign. When ACLU reached out to their usual donor base, they were surprised to find that many donors no longer had money to give – it was invested in the Obama campaign:

“’The most expensive presidential campaign in history and the cataclysmic financial meltdown of the past few months combined to produce a perfect storm,’ Romero told me recently. The storm blew a $19 million hole in the ACLU's budget, resulting in a hiring freeze and the cancellation of various projects, followed by the announcement, in January, that 10 percent of the national staff was being let go. Employees with decades of experience were told to clear out their offices; no department was left unscathed.” -The Nation

While the ACLU’s case is not directly related to the PA state budget delay, it does demonstrate the non-profit sector's clear dependence on funds (public AND private) for basic operation.

The state budget must be approved soon. But it must also be a strong, comprehensive budget that covers the needs of many non-profits and public services. A temporary solution is simply delaying the inevitable.

You can find the entire text of the budget here.

Please comment and share your story about how the PA budget impasse effects you, your organization, and community!