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  PANO
  777 East Park Drive, Suite 300
  Harrisburg, PA 17111

  Telephone: 717-236-8584
  Fax: 717-236-8767

PANO Nonprofit State Budget Information Center

Federal Updates  
News articles on Budget Impasse Affecting Nonprofits
State Updates- Current
State Updates- Archive
PANO Action Alert about the budget impasse  
United Way of Pennsylvania Report on the Budget Impasse impact on human services
Report released by the United Way of Southeastern PA
Report on the employment of nonprofit organizations in PA


The PA FY2007-08 PA Budget General Fund is $27.3 Billion, (plus $17.5 Billion in Federal Funds for a total PA operating budget of $59.1 Billion)

The PA FY2006-07 PA Budget General Fund is $26.1 Billion

Making Sense of PA Taxes and Spending (2009)
Governor’s Budget Office
Governor’s Revised 2009-10 Budget: All Line-Item Appropriations (June 26, 2009)
Governor’s Revised 2009-10 Budget: $500 Million in Cuts Announced June 26, 2009

 

State Updates

3/5/10 The Budget Crisis and You: Participate in Landmark Survey on Government Payments to Nonprofits

Pennsylvania nonprofits: PANO needs to learn your insights – to let government and the public know the extent to which government contracting actions are helping or adversely impacting nonprofits and the communities we serve.

Virtually every day we read another story about a cash-strapped state or local government withholding or delaying contract payments to nonprofits, altering terms of contracts, or taking other actions that hurt nonprofits. To document the extent of the problems, the National Council of Nonprofits (to which members of the PANO belong through your membership with us) is working with the Center on Nonprofits and Philanthropy at the Urban Institute to conduct special research.

To do our fair share in this national effort – and to collect important state-specific data that we can use here in Pennsylvania – PANO encourages all Pennsylvania nonprofits to:

1. Complete the Survey! The National Council of Nonprofits and the Center on Nonprofits and Philanthropy at the Urban Institute, working with researchers at Washington State University , have sent out a first-of-its-kind national survey that explores how nonprofits are being impacted by government budget cuts, late payments, and other contracting challenges. The survey results will raise awareness among policymakers and the press, plus give nonprofits a valuable tool for fixing problems that prevent us from providing core services. Questionnaires are being sent to nonprofits on a random basis over the next few weeks. Only some organizations will receive questionnaires, so it is especially important that those who are selected respond. Your voice matters!

• SPECIAL NOTE: Please forward this request to everyone in your organization that might receive the survey so they don’t overlook its importance!!

2. Supply Information! Even if your nonprofit is not one of those randomly selected to respond to the survey, you can still help in a major way. Please send Chris Conkey, Policy Research & Public Affairs Specialist at the National Council of Nonprofits (cconkey@councilofnonprofits.org),  any information about your experiences with government contracts and grants – late payments, late contracts, changed terms, or anything else (even positive experiences so they can be replicated elsewhere) – so we can document and better understand the type and size of problems. It’s MOST important to complete the survey … so to help everyone in our sector – both across the country and here in Pennsylvania – please view completion of the survey as “mandatory” to produce the highest response rate possible, and giving additional information to Chris as very helpful but at this time, secondary.

The best way to help your organization, PANO, and the National Council of Nonprofits work with our government partners to solve these fiscal challenges is to share your information. You are our eyes and ears about what is happening. The results of the national survey will tell us the scope of the problem, who is being adversely affected, and what is and is not working. We ask that you help yourself and all of us by filling out the survey questionnaire. Thanks!

1/23/10 Complete the United Way Survey on Impact of Budget Cuts and Impasse. United Way of Pennsylvania has released a new survey to measure the long-term impact of the state’s 2009 Budget Impasse and continued funding cuts on nonprofit organizations. They need everyone’s help to document the impact to make the case that funding health and human services is vital. The 2010 state budget negotiations ahead are expected to be extremely difficult. State revenues are well below what was projected only a few months ago, and the legislature is showing little interest for expanding current revenue sources or increasing taxes to maintain funding levels for nonprofit services. Please complete this important yet brief survey http://www.surveymonkey.com/s/7CBTTVJ and share it with the organizations in your network.

1/21/10 State Budget Hearings Announced. Pennsylvania’s Governor is scheduled to release his FY2010-2011 budget proposal on February 9, 2010. To avoid a repeat of last year’s 101 day budget impasse, the Legislature has agreed to scheduled budget hearing much earlier than in prior years. Budget hearings will begin on January 28 in the House, and February 16 in the Senate. Whether this is enough to deliver a budget on-time remains to be seen. It wasn’t the hearing schedule that held up last year’s budget. Lawmakers waited until after the deadline passed to begin negotiating in earnest. Getting an early start may help, but it’s what happens from May through June that counts. For more information go to: House, Senate To Begin Budget Talks Early, WGAL.com News 8, January 15, 2010, http://www.wgal.com/news/22252277/detail.html. 

Update on Budget Process Reforms: Pennsylvania's 2009 budget stalemate devastated nonprofits and the communities they serve. Organizations that receive funding through grants or contracts at the State of county level were forced to take out loans for months just to keep their doors open. Nonprofits, especially smaller ones, cannot absorb the cost of late government payments and budget cuts. The budget impasse was not just about the size of line-items, but about the increased costs to their operations due to the impasse. Loans must be paid back with interest; furloughed workers may never return; and late fees really do add-up. If nonprofits are to continue contracting with the state, the relationships must change and there must be some reasonable expectation that the state will make good on its contracts.

PANO has a solution for reforming the state budget process. We have developed a package of reforms that would make another budget impasse less likely. These reforms include interim budget deadlines, a requirement that the standing committees issue their budget recommendations to the House and Senate Appropriations Committees, and the creation of the Legislative Fiscal Office. Most importantly, we are looking for a way to ensure that the prior fiscal years’ appropriation remains in effect until a new budget passes—and without requiring a Constitutional amendment. We plan to submit our proposal to the Pennsylvania Charitable Nonprofit Caucus. The Nonprofit Caucus is a bipartisan, bicameral forum of approximately 30 legislators (advised by another 30 charities and foundations), who are dedicated to collaborating on legislative and regulatory issues impacting charity and philanthropy in Pennsylvania. Our goal is for the Caucus lawmakers to introduce legislation based on our proposals.

Nonprofit Quarterly Releases Special Report with PANO’s Pennsylvania Article. This week, Nonprofit Quarterly (a national print magazine and online news source for nonprofits) just released its special Report “The State We’re In: How Bad is it Out There?” to be published in the Winter 2009 edition of NPQ. The first installment in this series features articles from 14 states about the importance of key economic drivers to the sustainability of America’s 1.4 million nonprofit organizations and the services they provide. Featured prominently among these articles is analysis and commentary on Pennsylvania’s nonprofit sector, by PANO’s former Public Policy Officer David Ross.

“Pennsylvania: Virtue, Liberty, and Independence” chronicles Pennsylvania’s 101-day budget impasse of 2009 and the administrative cost to nonprofits that were already stretched thin. The impasse, forced nonprofits to act as unwilling lines of credit for the state. Many organizations that contracted with the state or counties to provide human services, actually lost money on these contracts due to the impasse. The state however earned interest on the money it withheld. The Special Report and the state articles show clearly that Pennsylvania’s nonprofits are not alone. This practice was repeated – throughout the country. Together, they demonstrate a compelling need for increased nonprofit advocacy to prevent social–safety net services, K–12 education, and other program areas that many take for granted, from evaporating as mere budget-balancing fatalities or collateral damage.

1/17/10 HSDF Funding: On January 17, 2010 State officials announced a 13% cut in the Human Service Development Fund (HSDF). This is in addition to steady funding cuts throughout the past several years. All of Pennsylvania's 67 counties rely on money from the rapidly deteriorating HSDF. The HSDF is designed to aid organizations such as food pantries, homeless shelters and help lines that provide services to Pennsylvania’s poor and underprivileged communities that fill in the gaps between formal county-run social services. The loss of this funding will be devastating. For more information visit http://www.pennlive.com/midstate/index.ssf/2010/01/pennsylvania_services_for_poor.html.  See also: Services for poor slashed amid cuts, by Emily Opilo, The Patriot-News (Harrisburg) 1/18/10 http://www.pennlive.com/news/patriotnews/index.ssf?/base/news/1263786910115550.xml&coll=1. 

1/14/10 State Announces Midterm Funding Cuts. On January 13, 2010, the State announced its latest round of budget cuts. To save $161 million, the state cut 33 programs that were included in the FY2009-2010 and reduced funding for another 244 programs in this year’s budget. Because the state’s revenue fell short of projections, the state cut funding for services to county child welfare, mental health services, autism intervention, children's health insurance, and Pre-K Counts. More than a third of the cuts are programs within the Department of Public Welfare. These cuts are in addition to $524 million in funding cuts that were announced in October when the State finally passed its $27.8 billion FY2009-2010 budget. At that time, the state completely eliminated 142 programs and slashed hundreds more. As the need increases however, funds to meet these needs are decreasing. Nonprofits that provide these services are facing impossible constraints.

Perhaps the right question has not yet been asked, such as where else in the state’s $60 billion annual budget could it come up with funding for these programs? What other functions of State government are less worthy than helping those less fortunate to become more productive members of society? To put this into perspective, according to a December 15th Capitolwire news article, the state legislature had to dip into its $200 million reserve fund by $87 million to get through the 101 day budget impasse of it’s own creation. Maybe it is a matter of priorities.

For a list of FY2009-10 Mid-Year Spending Reductions (1/14/10) go to http://www.portal.state.pa.us/portal/server.pt/document/746625/10-01-14_2009-10_budgetary_reserve_pdf 

For the Pennsylvania Budget and Policy Center’s mid-year budget cut analysis visit http://www.pennbpc.org/governor-announces-mid-year-budget-cuts-revenues-dwindle 

12/15/09 A proposal to expand casino gambling in Pennsylvania passed in the State House of Representatives on Monday 12/14/09. The bill would legalize table games such as poker, blackjack and craps at Pennsylvania casinos (which are currently slot-machine only) and raise the state's number of casino licenses from 14 to 15. Most importantly, the gaming bill would help state government raise $320 million over the next two years ($200 million in the first year) , and give 2% back to local governments. The gaming bill was agreed to, but still requires a final vote in the House and approval from the Senate before it can become law. This bill now frees-up more than $730 million for “non-preferred” appropriations to the 4 state-related universities, (Pitt, Penn State, Lincoln and Temple) as well as funding for private universities, cancer centers and museums. This bill is essential to balance the state budget which was passed on October 9, 2009. The universities accused the Governor and House Democrats of holding them hostage by stalling their schools' subsidy until the Legislature approves a gambling expansion- sound familiar?

Casino-expansion bill clears hurdle, State House measure OK's table games, additional license, by Marc Levy, The Associated Press (12/15/09)

House approves state-related university aid, table games, by Brad Bumsted, Pittsburgh Tribune Review (12/15/09)

12/14/09 State House Fails to Pass Table Gaming Bill; Leaves for Pennsylvania Society Weekend in New York. On October 9, PANO and a coalition of nonprofits and human service providers helped to bring an end to the budget impasse after 101 days. More than two months later, legislation to legalize table games, and $700 million in non-preferred appropriations bills to fund Penn State, Pitt, Lincoln and Temple universities are still unresolved.

On December 10, the House adjourned without approving either legislation instead, leaving Harrisburg for the Pennsylvania Society weekend in New York. The delay could result in a supplemental tuition increase at state-related colleges. With only a handful of session days remaining before the Legislature’s winter break, table games and the non-preferred appropriations must be passed this week. The state needs the $320 million per year of gaming revenue to balance its budget. As of December 1, the state’s revenue fell $217 million below estimates. At that rate, table gaming revenue becomes necessary to avoid budget cuts.

For details on the State House delay read:

• 12/10/09 The Pittsburgh Tribune-Review, by Brad Bumsted: http://www.pittsburghlive.com/x/pittsburghtrib/news/state/s_657162.html

• 12/10/09 The Daily American (Somerset) by Michelle Ganassi at PA): http://www.dailyamerican.com/articles/2009/12/11/news/local/news273.txt

12/14/09 PANO’s Continues to Work to Reform the State Budget Process. Since September 15, nearly a month prior to the passage of the State budget (10/9/09), PANO has been working hard to identify reforms that might either prevent another budget impasse or limit its impact on nonprofits. With in the next 10 days, we will be releasing a proposal to reform the state budget process. The 101 day budget impasse needlessly cost thousands of Pennsylvania nonprofits combined perhaps millions of dollars in operating expenses. These are expenses that nonprofits would not have otherwise incurred, such as interest payments on bridge loans, and penalties for late payments or penalties for liquidating investments.

PANO’s proposals will include interim budget deadlines, a requirement that the standing committees issue their budget recommendations to the House and Senate Appropriations Committees, and the creation of the Legislative Fiscal Office. Most importantly, we need to ensure that the prior fiscal years’ appropriation remains in effect until a new budget passes.

On December 9, PANO led a group of 16 Nonprofit Caucus Charities who met with the Governor's Chief of Staff for an off-the record discussion about potential non-legislative solutions to the 2009 budget impasse and what nonprofits can do to avoid another impasse in 2010. Also on December 9, PANO met with PA Rep. Glenn Grell (R-Cumberland) about his bill to establish a Commission to reform the State budget process. PANO has had several meetings with legislators and staff about these reforms and we expect to release our proposal shortly.

11/9/09 Nonprofit Research Group Releases Budget Analysis of FY2009-10. Now that the dust has settled, we can finally get a clear view of the FY2009-10 state budget from the Pennsylvania Budget and Policy Center (PBPC). On October 9, Pennsylvania’s Governor signed the $27.8 billion state budget for FY2009-10, 101 days after the start of the fiscal year. The total package included $25.2 billion in state spending PLUS $2.6 billion in federal stimulus money. This $27.8 billion represents a $524 million drop (-1.8%) from the prior year’s budget. Nearly every department saw their budgets slashed. 142 line items were totally eliminated, and hundreds more were cut. DPW lost 7%; DCED lost 54%. So what was actually in the budget and what will it mean for nonprofits in 2010? According to PBPC, the state budget compromises many human service programs aimed at children, elderly, poor and Pennsylvanian’s with special needs. Check out the Pennsylvania Budget and Policy Center’s budget analysis for FY 2009-10. http://www.pennbpc.org/2009-10-Budget-Analysis.

10/10/09 The Senate just passed HB1416 (the General Appropriations Bill) by concurring in the House amendments (42-7) and HB1614 (the Fiscal Code bill). The General Appropriations Bill now goes to the Governor for signature. The Fiscal Code Bill now goes to the House for concurrence—then to the Governor for signature. Both bills must be signed by the Governor before we have a complete budget. The Governor stated earlier today that he plans to sign the bills as soon as he received them, and that check will probably be sent out on Tuesday, October 13. (Monday is a bank holiday)

The budget is moving forward, but our work is far from over (see news article pasted below). We face great challenges in the days ahead. 101 days with no state budget, has devastated nonprofits and the communities they serve. Thousands of nonprofits servicing state and county contracts and grants laid-off staff, cut services or closed their doors. Children, the elderly and people with special needs lost vital services, and precious time. Nonprofits must still receive payment from the state or counties, restore their infrastructure, pay back their loans – with interest, and rebuild shattered lives.

(10/8/09) Prompt Payment Resolution Introduced in the Senate: Also on October 8, the Senate introduced a resolution SR 200 (PN1487) “Memorializing the State Treasurer, upon the enactment of the General Appropriation Act of 2009, to release funding for nonprofit and charitable services as quickly as possible.” It demonstrates the will of the Senate that funds be released as quickly as possible. Even the governor is on-board with it. He even stated that checks are already cut and ready to go out as soon as the budget is passed. We pursued this because there is a concern that funding will get tied up at the county and municipal level. Sponsored by Senator Brubaker co-chair of the Pennsylvania Charitable Nonprofit Caucus, and cosponsored by Senators Ward, Ferlo, O’Pake, Washington, Erickson, Boscola, Rafferty, D. White, Musto, Alloway, M.White, Gordner, Tartaglione, Folmer, Baker, Pippy, Stack, Dinniman and Greenleaf, the Resolution emphasizes that waiting until Christmas to receive payment for services already rendered is not acceptable. The Resolution was referred to the Senate Appropriations Committee. According the Governor’s statements, funding will be rushed to nonprofit service providers as soon as the budget is signed. Priority cases could see checks within six days after the budget is signed.

Thank you everyone for your participation and attendance in Thursday’s press event marking the 100 day of the Budget Impasse. Our goal was to (1) draw attention to the hardship caused by the payment delays to citizens and community organizations; (2) call on the legislature to end the budget impasse, and (3) call on our lawmakers to enact budget reforms to prevent this type of delay from occurring in the future. With your help, we accomplished our goal and then some.

Thank you to our presenters Tony Ross, United Way of Pennsylvania; Joe Ostrander, MCC, Community Action Association of Pennsylvania; Rev. Bonnie Camarda, Salvation Army of Greater Philadelphia; Pete Biasucci, Catholic Charities of the Diocese of Harrisburg; Andrea Morató-Lara, M.A., Pennsylvania Association of Latino Organizations; Doug Hill, County Commissioners Association of Pennsylvania; Barry Kauffman, Common Cause of Pennsylvania. Special thanks to Chris Lilienthal for coordinating the media, the media alert and press release. Attached is the press release. Thank you also to Sharon Ward for keeping us on track and on time. And thanks to all of you who reached out to your constituents and shared your stories with reporters. Your hard work drew attention to the plight of, nonprofits, human service providers, and our counties as partners in this ongoing effort. Your efforts highlight that a coalition is truly greater than the sum of its parts.

Media: Approximately 10 members of the media were in attendance. PCN filmed the press conference, and aired it that afternoon. We also had a follow-up interview with WITF Radio Smarttalk. Here are some of the news stories. Please post them on your website and share them with your network.

(10/9/09) Nonprofits say PA budget may be too little, too late (Harrisburg) -- Leaders from both parties say Governor Rendell could sign a budget into law as soon as tonight. But for many nonprofit agencies that have been going without state dollars for months now that may be too little, too late. In the 100 days since the budget was due, the plight of nonprofit agencies that rely on government funding has gotten a lot of attention. A signed budget will come soon and Governor Rendell has vowed to rush money to those groups within weeks. Joe Ostrander, a spokesman for the Community Action Association of Pennsylvania, says it will begin a long struggle for operations that had to scale back services and lay off staff. He says paying off interest on loans will be the main challenge. "To rebuild their communities and rebuild their agencies. Some will be able to do that with time, but unfortunately I really do believe that some of our member agencies are going to have a difficult time rebuilding portions of their agencies," he says. The Senate is expected to pass an appropriations bill and send it to Governor Rendell’s desk this morning. That leaves fiscal code legislation and a measure legalizing table games as the only unfinished pieces of the budget package. http://www.witf.org/news/regional-and-state/2173-nonprofits-say-pa-budget-may-be-too-little-too-late. 

(10/9/09) Harrisburg Patriot News, covered the press conference. (Tony Ross of the United Way of Pennsylvania was pictured with David Ross on Page A2 of today’s Harrisburg Patriot-News. http://www.pennlive.com/midstate/index.ssf/2009/10/nonprofit_groups_hold_capitol.html 

(10/8/09) Nonprofits Mark 100th Day of Budget Impasse. Several nonprofit organizations gathered in the Capitol Rotunda today to mark the 100th day of the budget stalemate. The impasse has caused nonprofits to cut services, layoff employees, take out loans, and forced some to permanently shut down. David Ross, Public Policy Office for PANO, said the lack of a state budget is a “man-made disaster, it must end now.” The organizations called on lawmakers to release funding as quickly as possible once the budget is signed and urged the Legislature to take steps to ensure that this does not happen again. “We cannot let nonprofits become collateral damage of future budget negotiations.” Check the PLS Capitol Toolbox later today for the full story. [PLS, October 8, 2009, 2:47 pm] http://blog.lobbytracpa.com/2009/10/08/nonprofits-mark-100th-day-of-budget-impasse/

(10/9/09) Pa. budget pieces start to fall into place, by Mario F. Cattabiani, Amy Worden, and Suzette Parmley, The Philadelphia Inquirer, Oct. 9, 2009, (Philadelphia, PA) http://www.philly.com/philly/news/pennsylvania/20091009_Pa__budget_pieces_start_to_fall_into_place.html.

(10/9/09) STATE BUDGET AT 100. Organizations representing more than 41,000 non-profit groups in the state came together this week under the Capitol dome to mark the 100th day without the passing of a new state budget. Led by David Ross, of the Pennsylvania Association of Nonprofit Organizations, the group again urged the legislature to pass a new budget. And, acknowledging reports an agreement may be near on a new spending plan, the group also urged legislators to make certain funds for nonprofits are released in an expedited manner to aid what they said are a number of nonprofits near shutting down due to the funding impasse. “Nonprofits are caught in the middle,” Ross told the crowd of about 30 people gathered in the rotunda. “It is vital funding be released as quickly as possible. ”Tony Ross, not a relative of David, president of the United Way of Pennsylvania said a survey by his organization found 88 percent of its nonprofits will have to cut or eliminate services if state funding is not received by the end of the month. Sources say the revised budget could be on Governor Ed's desk by today. But I'll believe it when I see it. (The Lu Lac Political Letter, Ed. #970 by David Yonki) http://lulacpoliticaletter.blogspot.com/. 

Philadelphia Event: A simultaneous event with a similar message was held yesterday in Philadelphia emphasizing the importance of nonprofits to the communities they serve. For the nearly four months, this coalition has been our partner in the fight to end the budget impasse. http://www.philly.com/philly/news/breaking/20091008_Protestors_rally_to_mark_100_days_without_state_budget.html.  Check out photos. Thank you and congratulations to Jennine Miller of the Greater Philadelphia Coalition for Essential Services and all of the organizations and individuals who organized that event.

10/8/09 Press Release from Harrisburg 100 Day Rally.

10/7/09 100 Day Rallies

Philadelphia
Harrisburg

10/6/09 Update: This past weekend, House Democrats challenged the 3-Caucus budget deal with a new proposal of their own. This new proposal would not tax nonprofit arts events or small games of chance, but would cut another $100 million in funding from the budget. TODAY- the House disbanded the Budget Conference Committee and plans to send the budget to the House Rules Committee immediately. If there is a compromise, it could take a week to pass the budget. If not, it could be weeks before we have a budget. House Democrats blame Senate Republican. Senate Republicans blame the Governor. Rank and file lawmakers blame leadership. There is more than enough blame for all to share. As we approach 100 days without a state budget, Pennsylvania lawmakers continue to receive their paychecks and per diems, while nonprofits close their doors. This is unacceptable. Join us at the Capitol: Press conference – Thurs, Oct. 8, 2009. Help us mark the 100th day without a state budget. Plan to join us (tentatively 1pm). Watch for details.

10/1/09 Joe Geiger interviews Tina Nixon of the YWCA of Harrisburg regarding her agency and also the negative impasse of the budget impasse.

 

9/24/09 Budget Impasse Update The Governor and the Legislature reached a compromise deal on a state budget last week, but we still have no budget, and we haven’t even seen the actual language of the deal. Legislators spent the week refining the general appropriations bill, and drafting the legislation needed to raise the taxes being spent in the budget, authorize casinos table games, and tap into the reserve fund.  What details we have on the budget, has caused sharp reaction from many groups.  A final vote on the budget is not expected until next week. In the meantime, organizations continue to lay-off staff, cut services, and max-out their lines of credit.  For those with credit left, operating under those lines of credit adds to the cost of doing business, which limits available resources for future services. As the Legislature continues to drag its feet, the risk increases that the budget deal itself could start to unravel.

The Issue: The lack of a state budget is hurting Pennsylvania's nonprofits and those they serve. Many nonprofits are laying-off staff and cuttings services.  As nonprofits close their doors, thousands of children, elderly and Pennsylvanian's with special needs will no longer receive the services they depend on. Pennsylvania needs a budget now; a fair budget that will allow nonprofits to continue their important community work now and next year.  Urge lawmakers to end the budget impasse now! Expedite payments, and work to ensure that this never happens again. 

What can you do?

  • Contact your State Legislators & share this with your network!

  • Take Action NOW! Budget Impasse Hurts Nonprofits, Children, Elderly & Needy:  Urge PA Lawmakers to Pass State Budget & Preserve Community Resources.      

  • Complete the Survey: Help the United Way of Pennsylvania measure the impact of the budget impasse on PA nonprofits.  

  • Send us your stories: Send us a one-page written statement on how your organization has been hurt by the budget impasse; how many people were laid-off and whether your organization cut services or close its doors.  Send your vignettes to joe@pano.org.

  • Follow us on twitter: http://twitter.com/PANONonprofits

9/16/09 Faith Based Response to Budget Impasse

 

9/10/09 The Southeastern Pennsylvania Coalition for Essential Services is looking for Southeastern PA regional contacts who will work with them to end the budget impasse and get a good budget for Pennsylvanians!  They especially need groups in Bucks and Montgomery Counties to sign-on to the effort, but all groups in the Southeastern PA region are welcome. Download the form at http://www.pano.org/publicpolicy/documents/coalition.doc.

 

The next Southeastern PA Coalition for Essential Services conference call is Monday, September 14, 2009 @ 1:00 pm.  Conference Call Number: 1-866-740-1260; Access code:  2811137.  Help them plan their next steps!  They are developing a plan to get their legislator to sign a pledge for a fair budget.


9/4/09 PRESS CONFERENCE & LOBBY DAY IN HARRISBURG on TUESDAY, SEPTEMBER 8, 2009 

Join the Better Choices Coalition, the Pennsylvania Budget and Policy Center, the Pennsylvania Association of Nonprofit Organizations, the Education Policy and Leadership Center, the Pennsylvania PTA, the Pennsylvania Coalition Against Domestic Violence, the PA Association for Adult Continuing Education, and a host of others in Harrisburg to urge our lawmakers to get back to work on a state budget that adequately funds community services.

THE MESSAGE:

  • Pass a budget that adequately funds public services and investments
  • End the budget impasse
  • Raise the revenue necessary to preserve our services and protect our communities

THE THEME:

  • Cuts Hurt!  The goal is to make sure lawmakers and the public understand the impact of lack of funding for services.
  • Don’t Duck Your Responsibility! Pass a budget that adequately funds services.

WHAT YOU CAN DO:

  • Join us on September 8: People will be coming from across the state. This is not a mass turnout event but we would like to have 150 people.
  • E-mail ward@pennbpc.org if you plan to attend.
  • Endorse this event: send an email Herrera@keystoneresearch.org to add your organization to the list of endorsers, even if you can’t send a representative.
  • Send us your stories: we want to have one example of an individual or organization affected by the budget from every county in the state.  If you can send a picture (set digital camera on high resolution) and an email with a few lines to lilienthal@pennbpc.org.
  • Contact your legislators: send an email to your elected officials: http://capwiz.com/pano/issues/alert/?alertid=13898481&queueid=%5bcapwiz:queue_id%5d.   

WEAR A BAND AID TO PROTEST BUDGET CUTS!!  PIN A BANDAID TO YOUR SHIRT OR LAPEL.  HAND THEM OUT TO STAFF, FAMILY, CUSTOMERS AND URGE FOLKS TO JOIN IN THE PROTEST.  IT’S SIMPLE AND CHEAP.  TELL PEOPLE THAT YOU ARE AN EXAMPLE OF A SERVICE THAT RECEIVES STATE FUNDS AND IS THREATENED BY CUTS.

Pennsylvania is now the only State in the country without a State budget for FY2009-10. Now in its 66th day, Pennsylvania’s budget impasse is having a devastating impact on children, families, seniors, people with disabilities, and the organizations that serve them.  Thousands of nonprofits that provide vital community services under state or local government grant or contract, have not received payment in months. Without a budget in-place, the state is unable to pay for the vital services that nonprofits provide.  These nonprofits are now faced with the difficult choice of laying-off staff, cutting much-needed programs, or closing their doors altogether.  Closing libraries, clinics, and daycare centers, and laying-off thousands of workers is destroying our nonprofit infrastructure, and plunging our vulnerable neighborhoods further into distress and deepening the recession’s impact for everyone. At the request of our members, PANO is working with hundreds of state and region partners to encourage legislators to end this impasse and pass a good budget now.  

On Tuesday, September 15 (tentatively 8:30am-10:00am) the Advisory Committee to the Pennsylvania Charitable Nonprofit Caucus will hold its legislative breakfast at the Capitol in Harrisburg.  Caucus Legislators and staff are invited. Organizations and their staff are invited to register. Tentatively, we plan to discuss the impact of the budget impasse on nonprofits and how to prevent it in the future, vote to approve the basic operating rules of the Caucus Advisory Committee, and discuss the possibility of expediting the State’s payment process so it doesn’t take three or four weeks for an organization to receive payment for services rendered. This is a unique opportunity to engage in a conversation with Caucus legislators and nonprofit leaders about the issues affecting nonprofits and the communities we serve. The event will cost $59 per attendee. Registration will be available through PANO’s website after Labor Day. PANO is looking for approximately 8 sponsors at $500 each to cover the cost of this event and Caucus Advisory Committee expenses and overhead. An organization who sponsors the event will receive their logo on the event sign, a quote in the press, and brief comments before the group.

9/1/09 Budget Impasse Hits Day 64; Nonprofits Close Doors; Cut Services.  As Connecticut reaches a deal on its budget, Pennsylvania becomes the only State in the country without a State budget for FY2009-10. Now in its 64th Day, Pennsylvania’s budget impasse is having a devastating impact on children, families, seniors, people with disabilities, and the organizations that serve them.  Thousands of nonprofits that provide vital community services under state or local government grant or contract, have not received payment in months. Without a budget in-place, the state is unable to pay for the vital services that nonprofits provide.  These nonprofits are now faced with the difficult choice of laying-off staff, cutting much-needed programs, or closing their doors altogether.  Closing libraries, clinics, and daycare centers, and laying-off thousands of workers is destroying our nonprofit infrastructure, and plunging our vulnerable neighborhoods further into distress and deepening the recession’s impact for everyone. (read http://www.goerie.com/apps/pbcs.dll/article?AID=/20090901/OPINION01/309019996/-1/OPINION)

 

Summer has ended, students are back in school, and the state still has no budget.  Though the amount of disputed funding has decreased, legislators still remain hundreds of millions of dollars away from a compromise budget.  The Governor has lowered his proposed total funding from his original $28.8 billion, to $27.9 billion. HB1943, introduced by Representative Civera (R164), calls for $27.5 billion in funding for FY2009-10. While SB850 proposed a stark $27.1 billion, HB1943 merely increases funding to libraries and basic education. While many remain opposed to broad-based tax increases, legislators on both sides of the debate have expressed support for drawing new revenue from higher taxes on cigarettes and table games.

 

On Tuesday, September 1, the House-Senate Conference Committee met for the first time in weeks. Representative Sam Smith (R-Jefferson, Armstrong, Indiana) put HB1943 front and center. The $27.5 billion budget has received the support of the House and Senate Republicans, while Democrats and Human Services view this bill as an SB 850 re-tread—still $400 million short of the Governor’s $27.9 billion proposed compromise. The Conference Committee did not vote on the bill, but may consider it when they meet next after Labor Day. The impasse continues. 

 

As negotiations continue to press on into September, it becomes increasingly clear that whatever budget is passed will contain severe cuts to the nonprofits and the services they provide.  Yet without a budget many nonprofits are in danger of closing due to total lack of funding.  Nonprofits across the state are struggling to remain viable without state funding. Some organizations are still owed funding from last year’s budget. According to a recent United Way of Pennsylvania Survey 69% of respondents said they have or will need to reduce or eliminate services sometime before September 30; 33% of the respondents reported that they had drawn funds from credit lines or other loans in order to continue delivering services; 45% report that lack of government reimbursement for services has hindered their ability to provide regular paychecks to their employees; and 31% of the nonprofits responding reported that they had no remaining sources of money to help them through this crisis.

 

PANO has brought together hundreds of state and region partners to help end this budget impasse. On Wednesday August 26, PANO joined the Southeastern Coalition of Essential Services in a 500 person rally at the courthouse in Media, PA to urge lawmakers to end the budget impasse quickly and pass a good budget that fully funds vital community services.  PANO will continue to convene events, share resources, and build the coalition necessary to draw this stalemate to an end.  

HB1943

SB850   

 

Greater Pittsburgh Nonprofit Partnership Holds Budget Press Conference.  The Greater Pittsburgh Nonprofit Partnership is holding a press conference on Thursday, September 3, at 10am in McKees Rocks PA to address the budget impasse. The event will focus on the stalemate’s effect on nonprofit organizations, the community safety net, and Pittsburgh residents.

 

In times of hardship, nonprofits are expected to provide more services with less funding. Yet without a budget, nonprofit organizations in Pittsburgh are in dire need of relief. According to a survey published by the Greater Pittsburgh Nonprofit Partnership, the budget impasse will cut off critical services to at least 30,000 individuals. In Alleghany County, at least 925 (23%) staff of child care programs has been laid off, as well as 3,698 children who lost child care on August 10. 

 

A strong turnout to the press conference is vital to creating awareness of this pressing issue. Without a sizable audience, nonprofits’ voices will continue to go unheard, leaving the fate of communities across the state in severe jeopardy. Please plan to attend.

 

  * Location: Focus on Renewal, 701 Chartiers Avenue, McKees Rocks, PA 15136.

  * Contact: (412) 771-6460

 

Please fill out the GPNP’s survey on the impact of the budget impasse on nonprofits: http://www.surveymonkey.com/s.aspx?sm=cbNqY_2fWC1jJMNDz41_2f99eg_3d_3d

 

Harrisburg Press Conference on Budget Impasse. On Tuesday, September 8, the Pennsylvania Budget and Policy Center will hold a press conference in the Capitol Rotunda in Harrisburg from 1 pm to 1:30 pm.  Email Sharon Ward at ward@pennbpc.org if your organization will be represented at the event. The event will launch a week of local events to protest the budgetary stalemate. PANO will provide dates and locations of rallies updated on the location and times of these local events as they are planned. It is vital that nonprofits across the state remain unified and advocate the passing of a responsible budget as quickly as possible.

The House-Senate conference committee met today –September 1- and made very little progress towards resolving the state budget.  They will not meet again until AFTER LABOR DAY. Another week ticks by while lawmakers sit idle – and nonprofits close their doors. 

 

House and Senate negotiators are far apart on spending—more than $500 million apart― and have not agreed to find the resources to preserve services this year, and for the next two years.   Help us greet lawmakers when they return from their Labor Day holiday – and urge them to resolve the budget impasse and secure the resources necessary to avoid cuts to education, children’s services, health care and for services for communities and vulnerable Pennsylvanians that are delivered by non-profits and local governments.  We are looking for a significant presence- 150 to 200 people -- to press for action on a good budget.

 

The press conference is scheduled in the Capitol Rotunda from 1 pm to 1:30 pm.  Email Sharon Ward at ward@pennbpc.org if your organization will be represented at the event. Lobbying visits following the press event are strongly encouraged.  Please join us from 11 am to 1 pm at the Pine Street Church (corner of Pine St. and Third St.) to receive your information packets and assistance with lobbying visits. For budget information check out www.pennbpc.org.

 

Artless Wednesdays Begins September 9.  Beginning on September 9 and ending with the passage of a state budget, Citizens for the Arts in Pennsylvania is asking arts organizations across Pennsylvania to demonstrate, each Wednesday, ways they will be affected if funding for Pennsylvania Council on the Arts is drastically reduced.  Examples of activities might include darkening galleries in arts museums, covering artwork with a shroud or screen, giving curtain speeches, adding a web sticker on home pages directing viewers to go to the Citizens for the Arts in Pennsylvania’s e-advocacy center.  For more information, contact: Jenny Hershour, at 717-234-0959 or at jlh@citizensfortheartsinpa.org.  For information on Artless Wednesday’s go to http://www.citizensfortheartsinpa.org/artlesswednesdays.asp.  Help save the Arts in Pennsylvania visit http://capwiz.com/artsusa/pa.

8/31/09 Budget Impasse Threatens Community Safety Net. The Greater Pittsburgh Nonprofit Partnership to host press conference Thursday, September 3 at 10am
Location: Focus on Renewal 701 Chartiers Avenue, McKees Rocks, PA 15136 (412-771-6460)

Nonprofits across the state are facing budget crisis due to the state budget impasse. Some nonprofits have closed, others have had to lay off staff and cut programs. Those who are able to utilize their lines of credit or cash reserves have done so and some employees are working without pay; needless to say, nonprofits are exhausting all options to keep their doors open to provide services to those in need.

The Greater Pittsburgh Nonprofit Partnership will host a press conference on Thursday, September 3 at 10am at Focus on Renewal to address how the budget impasse is threatening the community safety net and the implications on Pittsburgh residents.

For example, we know that…
• At Focus on Renewal – a critical community organization in McKees Rocks, 28 staff members were laid off and 4 programs were cut this week.
• In the Pittsburgh region, early survey result shows that close to 30,000 individuals will lose critical services due to the budget impasse.
• In Allegheny County, at least 925 (23%) staff of child care programs have already been laid off; and as of August 10, 3,698 children have lost child care services.
• Statewide, 69% of respondents to the United Way of Pennsylvania Nonprofit Budget Impasse Survey have already or will need to reduce or eliminate services sometime before September 30. What can you do?

1. Let us know how your organization is doing – complete the survey today!
2. Join us at the press conference on Thursday.*
3. Write and/or call your legislators – talking points and a list of legislators critical to the budget process will be provided at the press conference.
4. Join us in Harrisburg – a number of organizations are coordinating a statewide rally in Harrisburg.

Once the date and time are confirmed, the GPNP will send out an alert. The press conference will begin promptly at 10am. Please understand that it is crucial to have a strong turnout to show legislators and the public that this is an important issue and one affecting us all. We encourage you to invite your staff, board, volunteers, clients, & legislators.

*Please note that the McKees Rocks bridge is closed, be prepared to take an alternate route to Focus on Renewal.

8/24/09
Community Forum for Children’s Services to Discuss State Funding Crisis - Find out what options are available for at-risk children and youth

WHEN: Tuesday, September 1, 2009, 12:00 pm to 2:00 pm
WHERE: Wesley Spectrum Services, 221 Penn Avenue, Wilkinsburg, PA

WHAT: Forum to alert the media, elected officials, and citizens of the detrimental impact the absence of a finalized state budget including adequate funding allocations is having on Pennsylvania’s abused, neglected, delinquent and at-risk children and youth. The state budget stalemate is putting approximately 20,000 children living in out of home placements (foster care, group home care and residential care), as well thousands of children and youth receiving services aimed at keeping them safe in their homes, at risk of losing these vital, mandated services. Without a state budget, county children and youth agencies cannot pay for purchased services, including reimbursements to private, charitable organizations responsible for the direct care to these children, youth and their families.

FOR MORE INFORMATION, INTERVIEW AND PHOTO OPPORTUNITIES: PCCYFS Harrisburg Office 717-651-1725 hbgoffice@pccyfs.org. 

Rally in Media on 8/26.  Public Policy Officer David Ross's comments.

The Southeastern Pennsylvania Coalition for Essential Services Action AIDS PA, Calcutta House, Chester Education Foundation, Children and Youth Services of Delaware County, Coalition for Essential Services, Community Interactions Inc., Crime Victims Center of Chester County, Delaware County Communities That Care Network, Dignity Housing, Episcopal Community Services, Freedom Valley Disability Center, Greater Philadelphia Coalition Against Hunger, Greater Philadelphia Cultural Alliance, Greater Philadelphia Urban Affairs Coalition, Horizon House of Philadelphia, Housing Alliance of Pennsylvania, Joshua Achievement Center, Maternity Care Coalition, Mental Health Association of SEPA, Mid-County Senior Services, New Choices/New Options, PA ACORN, Pennsylvania Association of Nonprofit Organizations, Pennsylvania Budget and Policy Center, Philadelphia Alliance, Philadelphia Association of Community Development Corporations, Philadelphia Coalition for Essential Services, Project H.O.M.E., Public Citizens for Children and Youth, Resources for Human Development, The Arc of Delaware County, United Way of Chester County, United Way of Southeastern Pennsylvania, Vote for Homes Coalition, Zhang Sah (as of 8/20/09)

Join Pennsylvanians From Around the Region in the Fight for Essential Services

WHO NEEDS TO BE THERE: EVERYONE!
WHEN: Wednesday August 26th at Noon
WHERE: Media Courthouse, 201 West Front Street, Media PA
WHY: Because everyone around the state is Impacted by Inaction on the State Budget

WHO IS IMPACTED? Police, teachers, case mangers, caretakers, firefighters, pre-k teachers, artist, park employees, library employees, caretakers, peer support, chief executive officers, janitors, accountants, receptionist, trash collectors, operators, nurses, doctors, day care centers, single parents, human resources, recreation centers, senior centers, support staff of all kind, outreach workers, social workers, ambulance drivers, sectaries, IT staff, facilities, residential advisors, grocers, emergency room workers, hospital workers, AIDS Services, Mental health, Homelessness and Housing, Developmental Disabilities, Cultural Program, Food Programs, Centers for Independent Living, United Way of Chester County, Foster Care, Youth Services, After school Programs, Libraries, Senior Services, Immigrant Services, Home Health Care and Waiver Services, Hospice, Legal Services, Child Care, Domestic Violence, Victim Services, Education, Disabilities, Workforce Program, Adult Literacy, Out of School Programs, and Violence Prevention.

Sponsored by the Southeastern Pennsylvania Coalition for Essential Services.  For more information or to add your name as a rally sponsor, contact Jennine Miller jmiller@projecthome.org  or 215.232.7272.

8/19/09 ACTION ALERT!

Budget Impasse Hurts Nonprofits, Children, Elderly & Needy. Urge Lawmakers to Pass State Budget & Preserve Community Resources

 

8/19/09 Southeast Community Forum for Children’s Services to Discuss State Funding Crisis.  Find out what options are available for at-risk children and youth.

WHEN: Thursday, August 20, 2009, 1:00 pm to 3:00 pm
WHERE: Methodist Services for Children and Families is located at 4300 Monument Road, Philadelphia WHAT: Forum to alert the media, elected officials, and citizens of the detrimental impact the absence of a finalized state budget including adequate funding allocations is having on Pennsylvania’s abused, neglected, delinquent and at-risk children and youth. The state budget stalemate is putting approximately 20,000 children living in out of home placements (foster care, group home care and residential care), as well thousands of children and youth receiving services aimed at keeping them safe in their homes, at risk of losing these vital, mandated services. Without a state budget, county children and youth agencies cannot pay for purchased services, including reimbursements to private, charitable organizations responsible for the direct care to these children, youth and their families.

This forum is being hosted by Pennsylvania Council of Children, Youth & Family Services (PCCYFS). We have asked them to keep us posted about similar forums to be held in other regions of the state.  For more information, please visit www.pccyfs.org. 

8/18/09 SURVEY REQUEST The lack of a state budget is having a devastating impact on nonprofit organizations and those we serve. As you are aware, budget negotiations have stood at an impasse since the passage of the Governor’s Stopgap budget. State workers are now receiving paychecks, but State contractors (often nonprofits and human service agencies) are still not being paid for their services. At a time when public contributions and foundation grants are growing scarce, most nonprofits are facing severe economic stress. For nonprofits with state contracts, especially health and human service providers, the lack of a state budget is having a devastating impact- and growing worse each day.

Many counties are lending money to their nonprofits so they can continue to provide essential human services. Others counties have no money to lend. Their nonprofits have been operating on lines of credit since June 30. In some cases, and local United Ways have even advanced allocations to organizations in need. We have been told that if Pennsylvania still has no budget within three weeks, many agencies will close their doors or cut services. If this happens, many Pennsylvanians will go without needed services, and thousands of nonprofit workers would become unemployed.

What can you do? Please complete the United Way survey http://survey.constantcontact.com/survey/a07e2k5bmidfybx466f/start  by Thursday, August 20. Please also share this email with other organizations in your network. It is critical that we document the impact of the budget impasse in your community and across the state. If you participate in the survey and you wish to gather data on your respective geographic region, the United Way of PA is willing to share the survey results with you as a word document.

8/17/09  RALLY for the Swift Passage of a Complete State Budget. Community Providers May Be Forced to Limit MH Services in September if Budget Impasse Continues Governor Rendell's "bridge-stopgap" budget is a "bridge to nowhere" as this  temporary budget does not include billions of dollars that would normally fund health care and social services.

Come gather with members of the mental health community as we take our message to the streets urging our legislative leaders and Governor Rendell to move swiftly in their efforts to pass a full and complete budget while protecting mental health funding as lives depend upon these ESSENTIAL and crucial services and supports.

Tuesday, August 18, 2009 12 noon - 1:00 PM On the sidewalks in the front of the Pittsburgh State Office Building, 300 Liberty Avenue, Pittsburgh PA 15222, Rally sponsored by: NAMI (National Alliance on Mental Illness) Southwestern Pennsylvania, The Pennsylvania Community Providers Association (PCPA), DRN (Disabilities Rights Association)-PA, MHA (Mental Health Association)-PA, and the Consumer Health Coalition

8/14/09 URGENT! Charities in Southeast Pennsylvania, please join us for a conference call on Monday, August 17, at 3 pm to develop plans for a rally in Media, PA on August 26. Together we can help bring the legislature back to the budget negotiating table.

The lack of a state budget is having a devastating impact on nonprofits throughout Pennsylvania. Many nonprofits are starting to lay-off staff and cuts services. As nonprofits begin to close their doors, thousands could become unemployed --- within the next two weeks. Some counties are lending money to their nonprofits so they can continue to provide essential human services, other counties can no longer afford to float them. Their nonprofits have been operating on lines of credit since June 30. But time is running out, and so are their lines of credit.

At the request of our members, PANO has been working with the Pennsylvania Budget and Policy Center, United Way of Pennsylvania, an existing budget coalition led by PCCY, and members of the Pennsylvania Charitable Nonprofit Caucus Advisory Committee in order to find a solution. On Thursday, August 13, we held a conference call to plan mobilization around the budget impasse. The response was overwhelming. 140 nonprofits were on the call. Hundreds more are anxious to find a way to be involved in this effort. An action alert, a survey, a social impact template and other resources are on their way. We are also identifying a contact in each county to serve as a communications coordinator to help arrange and stimulate events.

There are emerging plans in a number of counties and the United Ways have been encouraged to play a leading role. There is opportunity for significant grassroots action in nearly every community in the Commonwealth. We are working with them to ensure that the messaging is consistent and focuses on resolving the budget impasse – and getting a good budget that allows nonprofits to continue their work and protects community investments.

Your help is needed in Southeastern Pennsylvania: Ad hoc coalition of organizations from Southeastern Pennsylvania are coming together to figure out how to effectively influence Pennsylvania’s legislative leadership.

They have proposed holding a rally in Media, PA (Senator Pileggi’s district) on August 26th at noon (exact location and details to be determined). They need your help to hammer-out the details.

Please join them on the planning call on Monday, August 17, 2009 at 3:00 pm

Please call-in with ideas for speakers and invite other allies and groups from the Southeastern Region (especially Chester and Delaware Counties which is Senator Pileggi’s district).

For more information, please contact:

8/13/09 Nonprofits Held a Conference Call on State Budget.  Minutes from this call.   Since the passage of the Governor’s Stopgap budget, State budget negotiations have stood at an impasse. State workers are now receiving paychecks, but State contractors are still not being paid for their services. At a time when public contributions and foundation grants are growing scarce, most nonprofits are facing severe economic stress. For nonprofits with state contracts, especially health and human service providers, the lack of a state budget is having a devastating impact- and growing worse each day. Since Monday, we have received numerous calls from nonprofits with state contracts that are now considering lay-offs or service cuts. Here is an example.

Many counties are lending money to their nonprofits so they can continue to provide essential human services. Others counties have no money to lend. Their nonprofits have been operating on lines of credit since June 30. Time is running out. I have been told that if Pennsylvania still has no budget within three weeks, the remainder of the State’s 67 counties will no longer be able to cover the lack of state funding. Thousands could become unemployed quickly.

At the request of our members, PANO has been working with the Pennsylvania Budget and Policy Center, United Way of Pennsylvania, an existing budget coalition led by PCCY, and members of the Pennsylvania Charitable Nonprofit Caucus Advisory Committee to resolve this problem. Minutes from this call

8/12/09 State Passes Stopgap Budget Leaving Nonprofits Without Funding. On August 5, the PA General Assembly passed a barebones, stopgap budget to ensure that most state workers are paid. The Governor signed into law an amended version of Senate Bill 850, but exercised his line-item veto on $12.9 billion of what was originally a $23.9 billion bill. This $11 billion stopgap budget contains funding for payroll and essential public protection, healthcare, and cash and supplemental grant payments. The Governor also vetoed $905 million in Federal Stimulus money, but accepted the remaining $1.8 billion. SB850 provides a mechanism for most state workers to be paid, but a final FY 2009-10 budget could still be weeks away.

Despite the temporary bridge budget, state legislators remain $1.7 billion apart on a final budget. Until a compromise can be reached, social services and nonprofits throughout the state will be left unfunded. Many of these nonprofits continue to serve their communities, without funding.

Check out http://pennbpc.org/look-bridge-budget-signed-governor  for an analysis of the Bridge Budget. Check out http://pahousegop.com/uploads/8-5-09-VetoedLines-SB-850.pdf  for a list of items vetoed by the Governor.

7/27/09 PA Governor Considers Stopgap Budget as Budget Pressure Mounts. The State budget is now 27 days past its Constitutional deadline with no immediate end in sight. Nearly 80,000 state employees have received only partial paychecks since June 30. Court employees however, have already been receiving no pay. Without a FY2009-10 budget, the state is unable to pay its employees for days worked after June 30, the end of its fiscal year. But this Friday (July 31) the situation will grow from bad to worse, when some 33,000 state workers will face a payless payday. The Governor's possible budget stopgap proposal would ensure that at least state employees would be paid for the hours they are working. It is unclear how this will effect payments to nonprofits with State contracts.

Unfortunately, even if a stopgap budget passes this week, state workers won't actually be paid until August 14, which is some 45 days after this budget impasse started. As the budget sits in conference committee, pressures begin to mount for the Governor and the Legislature to reach a compromise- whatever that budget contains. Senators appointed to the Conference Committee include Sen. Dominic Pileggi (R-Chester, Delaware), Sen. Jake Corman (R-Centre, Juniata, Mifflin, Perry, Union) and Sen. Jay Costa (D-Allegheny). House members appointed to the Committee include Rep. Dwight Evans (D-Philadelphia), Rep. Todd Eachus (D-Luzerne) and Rep. Sam Smith (R- Armstrong, Indiana, Jefferson). Once the Conference Committee agrees to a final budget bill, both houses and the Governor must approve the bill for the budget to pass.

7/15/09 State Budget Impasse Continues, Further Threatens Nonprofits. As legislators remain locked in a budgetary stalemate, the state has only 4 days until thousands of state employees will start receiving partial paychecks. Regardless of the eventual outcome of the budget crisis, nonprofits statewide will face severe funding cuts for the 2010 financial year. The proposal of an increase in the Personal Income Tax has been a source of contention for both parties. This has resulted in the drafting of budget proposals which favor further social spending cuts, rather than higher taxes. The Pennsylvania House Appropriations Committee has approved two competing budget proposals to be sent to the floor for voting, House Bill 1416 and Senate Bill 850.

House Bill 1416, drafted by Representative Evans (D-203) and introduced May 4, has been amended to account for more recent revenue figures. In an attempt to circumnavigate increase in the Personal Income Tax, the bill now calls for $29.1 billion in spending for the 2010 fiscal year. This budget proposal is considered to be the most lenient plan so far for children’s health programs, state aid to libraries, and hospitals. The plan calls for the creation of a $1.2 billion Higher Education Fund, separate from the rest of the spending. Legislators have not released any official information on how this separate program would be funded.

The House Appropriations Committee also approved Senate Bill 850, the $27.3 billion Senate-proposed budget. However, the Committee has given the proposal a negative recommendation, severely hurting the bill’s chances of passing. SB850 has been amended by House minority leadership (Amendment 2617) to account for more recent revenue declines. However, the amendment does little to help organizations in the service sector. The amendment keeps many of the previously proposed cuts, as well as levies additional cuts in Pre-K and educational assistance programs. The bill calls for $1.6 billion less than the Governor’s $28.8 billion proposal, and taps into the state’s Rainy Day Fund to balance the budget.

Read the House Appropriations Committee’s overview of the Amended SB 850
House Bill 1416
Comparison of Governor’s budget, SB 850, and Amended SB850
SB 850 (bill)

7/1/09 State Budget Deadline Expires: Still No Budget. With the state budget deadline passed, lawmakers have until July 17 before 68,000 state workers stop showing up for work. The situation is further complicated for those who rely on payments from state contracts. Some expect the stalemate to last until August- but this is unlikely.

The governor’s latest compromise would cut an additional $500 million from his original $28.8 billion budget proposal. (Bear in mind that it costs over $7 million just to run the Governor’s office.) These cuts would essentially accept 53% of the Senate’s proposed budget cuts (proposed in SB850 which passed the Senate but failed in the House Committee earlier last month). Though the Governor claims to stay firm on funding for education, social services, and economic development programs, the cuts would essentially eliminate funding for arts and culture, sharply reduce funding for libraries, job training programs, and Pennsylvania Higher Education Assistance Agency grants to students.

In addition to these funding cuts, the Governor has proposed raising the state’s personal income tax (PIT) by one half a percent (from 3.07% to 3.57%) for the next three years. The governor argues that this PIT hike would prevent local governments from having to increase taxes later to pay for mandatory services that are no longer receiving state subsidies. State Republicans (and some Democrats) are taking a hard-line against the Governor’s tax proposal insisting that the budget can be balanced through spending cuts and the elimination of tax incentive programs such as the $75 million Earned Income Tax Credit Program (EITC).

The Governor and state Republicans are considering a stopgap budget to maintain state operations until a compromise on the budget can be reached.

Governor’s budget cuts
Pennsylvania Library Association’s revised budget comparison 

7/1/09 PA Legislators Propose Online Database of State Spending. In a hearing June 24, 2009, Representatives Jim Christiana, Bill DeWeese, Mike Vereb, and William Kortz voiced support for the creation of an online database, entitled the Pennsylvania Web Accountability, Transparency and Contract Hub (PennWATCH), which would provide information on state expenditures, making them available to the public. The database would provide a central location for detailed state budgeting and contract information, decreasing government wastefulness by creating greater spending transparency. House Bill 1460 would establish this database and is currently before the House State Government Committee. Similar legislation is being drafted by other legislators like Rep. Rick Mirabito (D-Lycoming) calling for the creation of a new PennPortal website. Watch the hearing at http://media2.pahousegop.com/Generator.asp?videoname=793304372.wmv. 

6/17/09 State Budget Update.  With the state budget deadline looming, legislators have 13 days to introduce and pass a balanced budget.  On June 8, the Senate Republicans version of the state budget bill failed in the House Appropriations Committee. SB850 would have cut $1.35 billion from the Governor’s proposed $28.9 billion budget for FY2009-10, but   eliminate hundreds of millions of dollars from human services, education, arts and cultural programs.  These cuts include $35 million from the Educational Improvement Tax Credit (EITC) and $4.4 million in grants for arts and culture. The Governor is expected to meet with his Cabinet on June 17 to discuss a compromise – cutting $500 million from his budget proposal and possibly increasing the state’s personal income Tax by between 0.5% and 1%.  A compromise bill to replace SB850 is expected shortly. The cuts will not be as severe as in but given the recession, and the growing budget deficit, any new bill will include significant cuts.

6/3/09 State Revenue Shortfall Hits $287.5 million; Funding Cuts Severe.  As the state’s May revenues fall to $287.5 million below projections, the total shortfall for the year has reached nearly $2.84 billion. This conclusion led Pennsylvania House Appropriations Committee staff to adjust the predicted budget deficit to $3.2 billion for the current fiscal year.  If not brought under control the deficit could reach $6 billion by this time next year.   

Senate Bill 850 cuts $1.35 billion from the Governor’s $28.9 billion FY2009-10 budget proposal. This bill eliminates hundreds of millions of dollars from human services, education, arts and cultural programs.  More specifically, the Senate bill zero’s-out arts funding.  Grants for arts and culture are completely eliminated. According to the Pennsylvania Council of the Arts, the Senate proposed a $4.4 million cut in funding in addition to the reductions already submitted in the Governor budget. The budget of the Pennsylvania Historical and Museum Commission (PHMC) was cut by 25% loss. PHMC and PCA urge your action on their behalf.   SB850 also cuts $35 million from the $75 million Educational Improvement Tax Credit (EITC) program (completely eliminating its Educational Improvement Organization (EIO) side of the program, while reducing funding for higher education, Pre-K, community development programs, libraries, and programs for job growth.)  While the House version of the budget is not expected to be as severe as the Senate’s version, considering the current economic climate, any compromise will include significant cuts. 

For the past two days, the House has heard debate on the budget.  At a June 2 press conference Governor Rendell announced that he would cut an additional $400 to $500 million from his proposed $28.9 million state budget.  Also that day, House Appropriations Chairman Dwight Evans, (D-Phila) announced on the House floor that he would allow the Senate’s $27.3 billion budget bill to come up for consideration in his committee next week.  Most doubt Evan’s willingness to move the Republican bill forward, but leaders of the House and Senate will meet with the Governor on Wednesday, June 3 for further negotiations.  

5/20/09 House Appropriations to Hold Public Hearing on State Budget Bill. On Friday, May 22, 2009, the State House Appropriations Committee will hold a public hearing on the recently passed state budget bill (SB850) in the Majority Caucus Room, Room 140 Main Capitol Building, Harrisburg. The hearing will begin at 10am and continue through the afternoon. The Committee plans to talk to experts on the various programs and the general spending direction. PA Rep. Dwight Evans (D-Philadelphia), House Appropriations Chairman, has stated that he wants to make certain that there is some public (taxpayers) review at this hearing. The hearing will be open to the public for comment on Senate Bill 850.

Senate Bill 850 cuts $1.35 billion from the Governor’s $28.9 billion FY2009-10 budget proposal by zero’ing-out arts funding, and many programs important for job growth, education and protection of our most vulnerable citizens. According to PA Senator Jake Corman (R-Centre) Appropriations Chairman, a decision must be made to raise revenues with tax increases or to cut expenditures. Either way, the State Constitution requires a budget balance be passed before July 1.

The Senate passed SB850 in its current form on May 6, by a vote of 30-20. The House then referred the bill to Appropriations. The House budget proposal is not expected to be as severe as the Senate version. But given the current economic climate, any compromise bill will include significant cuts. The State Senate returns from recess on June 1 to tackle the budget. The Senate vote on SB850 is posted here.

4/17/09 State Budget Standoff in the Billions. In a rare conjunction of the State’s House and Senate Appropriations Committees, Republican and Democrats agreed last week that the Governor’s budget projections overestimate the State’s expected revenue by as much as $300 million. Worse yet, the General Assembly believes that their projected $2.6 billion deficit, if not brought under control could reach $5.3 for the 2011-2012 fiscal year, or $9 Billion the year after. With only 11 weeks remaining until the State Legislature must pass the State’s FY 2009-2010 budget, there is bipartisan agreement that the Governor’s budget projections are wrong, but no bipartisan agreement over how to handle the deficit.

The Governor’s 2009-2010 budget calls for $29 billion in spending while the GOP in the House and Senate want $1.5 billion less. The stimulus funds that the state is receiving are complicating the budget further. The Governor, with limited bipartisan support, is proposing to spend some stimulus funds on government operations while others oppose this use. The opposition has asked how to continue the funding once the stimulus money runs out. More information.

11/5/08 Nonprofits Feel Sting of Economic Downturn. On 10/30/08 Pennsylvania’s Governor announced $350 million in cuts from the state’s budget due to tax revenues falling far below expectations.  Last month the Governor directed both State agencies and independent entities, including the legislature, judiciary, treasurer, attorney general, auditor general, SSHE and PHEAA to cut 4.25 percent from their enacted budgets. According to the Governor’s Press Release the fiscal restraint plan is designed to make up for declining revenues while preserving crucial services like health care, education and safety net programs for our most vulnerable citizens.

 

With the sinking stock market depleting endowments and savings nonprofits throughout the country are facing economic pressures from other sources including individual and foundation contributions.  See Nonprofits worry about ’09 budgets as economic concerns linger in the Pittsburgh Business Times (11/3/08)  http://www.bizjournals.com/louisville/othercities/pittsburgh/stories/2008/11/03/story4.html.

 

News articles on Budget Impasse Affecting Nonprofits

 

State Updates- Archive

3/7/08 Budget hearings on Pennsylvania’s $61.3 billion FY2008-09 budget ($28.3 billion general fund budget) wrapped-up this week. The General Assembly is Constitutionally required to pass a balanced budget before July 1. For the Governor’s FY2008-09 Budget and financial reports go to http://www.budget.state.pa.us/budget/cwp/view.asp?a=3&q=167632.  For details on how the State budget process works go to http://www.budget.state.pa.us/budget/lib/budget/budgetprocess/budgetprocess.pdf.  The Pennsylvania Senate and House of Representatives are currently in recess, and are scheduled to reconvene at 1:00 pm on Monday March 10, 2008.

7/18/07 Governor Approves State’s $27.5 Billion Budget for Fiscal Year 2008. After 17 days beyond their constitutional authority, state lawmakers finally passed the $27.16 billion Budget for Fiscal Year 2008, and on Tuesday, July 17, the Gov. Ed Rendell approved it as Act No. 8A. This $27.16 billion budget represents a modest 3.2 percent growth rate, or a 4.4 percent increase ($27.48 billion) if you include the Governor’s $317.7 million for a separate Public Transportation Trust Fund. The budget includes $9.4 billion for Pre-K-12 and related programs, $75 million for the EITC (a $16 million increase), $41 million to help communities fight drugs and related crime, and $1.4 million to fight child predators. All of this was passed with no new taxes, $150 million of the state’s $650 million surplus deposited into the Rainy Day Fund, and $300 million carried forward for FY2008-09.

7/16/07 State Budget Expected to Pass This Week. After a 16-day State Budget stalemate, the State House and Senate announced this morning that that they have reached a budget deal. The proposed $27.2 billion FY2008 budget, as approved by the joint House-Senate committee will increase total state general fund spending by 3.2 percent, or 4.4 percent if we include the $300 million separate mass transit funding. Regardless, this budget requires no new broad-based tax or fee increases.

The bill increases funding for education by 5.8 percent to $10.5 billion; expands the pre-kindergarten grant program by $75 million, and expands the laptops in high schools program by $70 million. In Public welfare, the budget will increases spending by 3.7 percent to $9.7 billion, and services for the mentally retarded will increase by $78.5 million. Additionally, the Department of Corrections which will see an increase of 13 percent to $1.6 billion, and payments on general obligation debt will increase by $22 million.

Even with a surplus this year, the legislature still managed to keep spending in check for FY2008, demonstrating that fiscal responsibility is possible without adopting mandatory TABOR type spending caps.

Unfortunately, the premature announcement of last week’s budget deal, the furlough of 25,000 State workers and their immediate return, followed by a flurry of legislative activity on everything but the State Budget, left voters and lobbyists alike, scratching their heads. In every annual budget there are both winners and losers. It’s still too early to predict how charities will fare in this budget. What is certain though is that after 5 months of discussion and 16 days beyond its Constitutional authority, the General Assembly as an institution lost some credibility this year.

The latest version of HB1286.  (PN2346)

7/3/07 State Budget Negotiations Go Into Extra Innings; Transportation Funding Causes Impasse. For the third day in a row, State lawmakers fail to pass the State budget for Fiscal Year 2007–08, by the Constitutionally required June 30 deadline. Lawmakers are confident that missing the deadline will not cause significant problems, but 78,000 State workers and those who rely on receiving a paycheck are not so confident. At issue is how to fund mass transit, highways, and the Governor’s education plan. With the July 4th holiday falling mid-week, budget passage is not expected before Thursday, July 5.

During an unusual Saturday evening session (June 30), the House voted not to concur on the Senate amendments, which forced SB1286 back to Committee for further negotiations. Since January only thirty-one bills have passed the State legislature of over 3141 bills introduced. On Saturday night, the State legislature sent another 17 bills to the Governor, several were for bridge namings, but none was the state budget bill.

The key issues still being debated include where funding for highways and mass transit will come from, and how much of the Governor’s education plan will actually be funded.

The House of Representatives adopted the Governor’s proposed $27.3 billion spending plan on May 25, and on June 20th the Senate passed its version of the spending plan, reducing or eliminating funding for initiatives in health care, child nutrition, child care, education, and workforce development.

The Governor budget proposed in February balanced through an increase in the state’s sales tax rate from 6 cents to 7 cents, with $1.2 billion in revenue allocated to general fund spending ($820 million) and property tax relief ($420 million.) The sales tax increase (from 6% to 7%) is likely a dead issue this year.

While Pennsylvania will end FY2006 with a $409 to $500 million surplus, (as it has the last two years). additional funding will be necessary to fund the Governor’s proposed health care, education, and transportation initiatives. Workforce development programs will be scaled back or eliminated.

Detailed analysis on the State budget is posted at http://www.pennbpc.org/budgetwatch/budgetwatch4.php.

6/19/07 PA State Budget Stalemate Broken As Deadline Approaches; Senate Appropriations Committee unanimously reported HB1286 (PN1983) out of Committee as amended. The bill is now placed on the Senate Calendar for Wednesday June 20. If enacted, this bill would become Pennsylvania’s annual general appropriations act for FY2007/08. The proposed spending plan would reduce the Governor's proposed General Fund budget by nearly $260 million. All Special Fund appropriations are funded at the levels requested by the Governor. The bill with the Armstrong amendment (A1709) represent a 2.7% increase in last year's budget, still below the level of inflation. Prospects for a government shutdown are now less likely.

6/13/07 Senate Appropriations Committee Cuts Budget Bill and Moves Bill Forward. On Wednesday June 13, the Senate Appropriations Committee amended the State budget bill and reported the amended bill out of Committee by a vote of 17 to 9. These amendments cut an additional $329 million from the Governor’s proposed $27.3 billion spending package. Senate Democrats expressed concerns over the $123 million cuts to economic development grant programs (which included $49 million for the Opportunity Grant Program, $22.5 million for infrastructure development and $29 million for community conservation and employment). Other cuts include $15 million from job training programs and $7.5 million for promoting Pennsylvania businesses in the global economy. Ultimately the desire to prevent future tax increases proved paramount. The Legislature returns to session on June 18 and will take–up the budget immediately. The State Constitution requires the General Assembly to pass a balanced budget by June 30. For analysis on the State budget go to http://www.pennbpc.org.

5/30/07 State Budget Moves Forward: 15 Scheduled Session Days Remain. On May 23, the State House of Representatives Passed the Democrat proposed FY2008 State Budget bill HB1286 (PN1543) along straight party lines (102-97). House leaders bypassed the 245 amendments (as agreed) and moved the bill forward to the Republican-Controlled Senate where the real horse-trading will take place.

HB1286 is based on the Governor’s Budget proposal of $27.3 billion (7.3% increase over 2007) to fund the operations of State government for the next fiscal year. The Republican Caucus alternative is a proposed $26.8 billion (2% increase over 2007- below the inflation rate). The Republican proposal basically a scaled-back version of the Governor’s budget, but for two key areas- safety and security.

Both sides claim they can balance the budget without a tax increase, but the Governor favors a 1% sales tax increase to offset property tax relief. The State Constitution requires the General Assembly to pass the budget bill by June 30. HB1286 was referred to the Senate Appropriations Committee on May 29, and will dominate the legislative agenda for the next 30 days.

HB1286: http://capwiz.com/pano/issues/bills/?bill=9828096. 

The PA House will reconvene at 1:00 pm on June 4, 2007. For the PA House Legislative Calendar for Monday June 4 go to http://www.legis.state.pa.us/WU01/LI/SC/HC/0/RC/CAL.HTM. 

The PA Senate will reconvene at 1:00 pm on June 4, 2007 For the PA Senate Legislative Calendar for Monday June 4 go to http://www.legis.state.pa.us/WU01/LI/SC/SC/0/RC/CAL.HTM.

3/14/07 State Budget Hearings for FY 2007-08 Conclude This Week. The final budget hearings of the House Appropriations Committee are scheduled for today and March 15. Today and tomorrow, individual lawmakers will have the opportunity to present their priorities regarding how to spend the proposed $59.1 billion state budget for FY2007-08. 

The final Committee hearings include:
Wednesday, March 14 9 AM Judiciary 10 AM University of Pennsylvania
Thursday, March 15 9 AM Member Presentations

To watch next week's hearings live go to the House Access Center at http://www.pahouse.com/AccessCenter/

2/21/07 Administration’s Proposal for PA FY2007-08 Budget. If passed, Rendell’s budget would leave 5300 Pennsylvania students without state grants next year and subsequently lead to cuts in other related programs. The proposed budget would freeze aid at $386.2 million a year.

Overview of the Governor’s FY2007-08 Budget.

For analysis on the State budget go to http://www.pennbpc.org/ 

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Photos from budget rallies.

Making Sense of PA Taxes and Spending (2009)  Are Pennsylvania’s taxes too high? Not according to a new handbook on state and local taxes released by the Pennsylvania Budget and Policy Center. Among the 50 states, Pennsylvania actually ranks 32nd in state taxes and 30th in state spending measured as a share of the economy. Using this measure, state taxes and spending have held steady for the past three decades.

Pennsylvania did less well in two other areas—tax fairness and local tax burden. The state’s tax system takes a significantly larger share of the incomes of the poorest earners than those of more affluent Pennsylvanians. Pennsylvania’s flat income tax fails to offset regressive sales and property taxes and leaves the wealthiest paying substantially less than their counterparts in surrounding states.

Pennsylvania also passes the cost of many public services onto local taxpayers, creating inequities across school districts that have resulted in higher taxes in poorer communities. On education funding alone, the Budget and Policy Center found, 46 other states contribute more toward public education than the Keystone State.

The center’s new handbook, The Common Good: What Pennsylvania’s Budget and Tax Policies Mean to You, makes the case for sustainable public investments in education, workforce development, transportation and other core services as a way to grow the state’s economy – especially as Pennsylvanians struggle with the effects of a national recession. To learn more about the new tax handbook, download or request a copy of it at  or call 717-255-7156.

 

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