In Illinois and across the country, the jobs of nonprofits just got harder, as a result of the Aug. 1 bipartisan deal in the U.S. House of Representatives to reach a debt agreement.
“While it is always good to see legislative bipartisanship, we are more than a little worried about how this deal will affect the already-struggling nonprofit sector in Illinois,” said Laurel O’Sullivan, Donors Forum's Vice President of Public Policy. “This deal represents a withdrawal of government from the social compact that has historically provided care for all its citizens.”
And, as a result of Illinois' struggling finances, ongoing debt, and persistent deficits, the ability of Illinois' nonprofit sector to provide many of the services delivered on behalf of the state has grown shakier.
After vetoing $376 million in spending approved by the Illinois General Assembly, the budget for FY 2012 stands at $32.99 billion and carries $8 billion of unpaid obligations to service providers into the new fiscal year. Deep -- and in many cases avoidable -- cuts to education, human services, and other areas translate into devastating community impact and serve as a call to action for the nonprofit sector, commented O’Sullivan.
“Right now, as a cost-cutting measure, the state is more interested in providing services that are covered by Medicaid because they represent much-needed federal dollars. While this deal proposes not to impact recipients but providers, it translates into Illinois providers having less incentive to provide care in Illinois,” O’Sullivan said. “So whether or not the deal was intended to impact our communities, the unintended consequence is that nonprofits that traditionally serve the most vulnerable will no longer be able to do so. We anticipate seeing the need increase exponentially as nonprofits decide it’s no longer feasible for them to operate in the state of Illinois.”
Currently, the Illinois nonprofit sector employs almost half a million people and provides nearly 10% of the state’s GDP.
-- Delia Coleman, Manager, Public Policy Communications and Outreach
Image: http://www.flickr.com/photos/dcjohn/2960356/sizes/m/in/photostream/ via Creative Commons
It's important not to forget about the non-profit sector, although it may not seem as important as mainstream industry and commerce the non-profit sector provides a huge number of employment for people and therefore makes it an invaluable source of income for the people of this great nation.
Posted by: VC Independent | September 06, 2011 at 12:12 PM