| FOR IMMEDIATE RELEASE 6/11/2010 |
Contact: Nikki Keller 570-343-1267 nkeller@uwlc.net |
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DON'T REPEAT 2009 BUDGET FIASCO; KEEP FUNDS FLOWING TO NONPROFITS Timely adoption of a budget is the most important task state lawmakers and the governor have each year. State budget negotiators are hopeful that a 2010-11 budget can be finalized by the end of month. However, reality and recent history indicate budget negotiations may drag on for days or weeks past the June 30 deadline. Similarly to last year, all concerned are proclaiming a desire to enact a budget before the statutory deadline. But it appears that the process has not gained serious traction and policy differences that have caused previous stalemates are emerging. Last year's 101-day state budget showdown was a disaster for the residents of Lackawanna and Wayne counties, the human services system and the commonwealth as a whole. Throughout Pennsylvania, human service agencies struggled for almost four months without state funding. From July 1 through Oct. 9, state aid to entities such as day-cares, drug and alcohol treatment services, emergency shelters, food banks and others was delayed. In fact, the crisis was so severe that our United Way took an unprecedented step and, literally overnight, organized and implemented a massive community food drive just to ensure bare shelves would be stocked, and our growing population of needy would at least have some food to put on the table. Our region is still dealing with the collateral damage from the 2009 stalled budget. Significant numbers of human services workers lost their jobs and thousands of families, individuals, children and seniors in need suffered unnecessary hardship. Agencies are still rebuilding financial reserves and providing reduced levels of services. This year United Way of Pennsylvania released the results of a statewide survey that documented the long-term impact of the 2009 state budget impasse on the nonprofit sector and social services system. The survey of nearly 350 agencies from across Pennsylvania indicated 61 percent of the agencies surveyed cut services during the impasse. The study also revealed that significant numbers of nonprofits were forced to activate millions in lines of credit, with significant interest rates, to maintain services during the budget impasse. Our United Way, also faced with limited resources due to a downturn in our local economy, advanced many of our agencies temporary funding just to keep their doors open for a few weeks longer and stave off a possible loss of vital services to residents. During recession, the need for services grows and every one of those dollars translates to a person or family who could be served. In addition, the additional and unplanned costs of interest repayments, which were not the fault of agencies to begin with, often have caused unanticipated organizational deficits. Given these realities, we encourage state leaders to support budget stopgap legislation to ensure that state funding to nonprofits continues if a budget deal is not reached by June 30. Similar stopgap measures were used last year and in 1991 to allow the commonwealth to use previous fiscal year's budget allocations to pay the salaries of state employees who would be furloughed. It is critical that our leaders put partisan politics aside so that nonprofits in Lackawanna and Wayne counties, and more important those whom we serve, are not used as "bargaining chips" in yet another budget battle. One more go-round like 2009 may certainly deliver the death blow to many needed services. The 2009 impasse hurt real people, real agencies and real businesses. Our leaders should act now to prevent another and potentially far greater crisis. |