Budget and Contracting Issues

Government Contracting

The Pennsylvania State Budget process ran eight consecutive years beyond the constitutional deadline for approval. This created tremendous hardships on community benefit organizations. It caused them to run up large lines of credit with no assistance to pay the interest debt. There is a new administration and there is some expectation that the budget preparation season may become shorter - that allows less time for you to make your mark. PANO Provides training on lobbying and addresses the budget preparation calendar. Consider attending one of the trainings to become a more valued partner in the process.

2011 will be an extremely challenging year for the budget. We start the year with a $2 billion dollar restrictions per the lost stimulus money. The Corbett administration also vowed no new taxes. Community benefit organizations across the board will be feeling the pinch. PANO advises that charities start to seek other ways to build capacity and generate revenue. At the same time, we cannot allow government to shirk their responsibilities. PANO expects the 2011 budget to be signed into law prior to June 30.

Pennsylvania, like many other states, partners with community benefit organizations to provide essential services to the community. In many cases, Pennsylvania contracts with nonprofits do not cover indirect cost or incorporate cost of living adjustments. The lack of modification to the contracts can make it difficult for nonprofits to operate. PANO will be working in collaboration with the state government to address the contract issues.