PA Nonprofits May Want to Prepare for a Rough 2017-18 Budget Process

A few years ago, a study from the Forbes Funds, The Pittsburgh Foundation and the United Way of Allegheny County examined the impact of nonprofits (minus the health care systems and institutions of higher education) on Pittsburgh’s economy. It found that nonprofits, ranging from human service agencies to animal rescue organizations, provided over 75,000 jobs for local residents and spent $4.4 billion in the local economy – supporting over 31,000 jobs in other industries.  Preventive factors associated with such community–focused programming resulted in both lives and tax dollars saved. The state-wide data for nonprofits (including healthcare organizations) confirms the strength of the sector. In 2015, Pennsylvania nonprofits employed over 15% of the state workforce and generated $132 billion in annual revenue.

Unfortunately, even with this proven social and economic impact, there is concern that Pennsylvania nonprofits may once again face a serious threat to their operations during the upcoming budget process. First, the 2016-17 budget was never really balanced, and the expected revenue shortfalls are a reality (first quarter revenue collections were $200 million short).  Second, a pension reform bill supported by Governor Wolf failed to pass in the PA House earlier this week after opposition from unions, including the Pennsylvania State Troopers Association, pushing that debt issue further down the road.  Third, our decaying infrastructure issues, already underfunded, are not going away in 2017-18 and the gas tax residents pay to fund repairs and improvements is being spent on state police. Also, 2018 is a gubernatorial election year in Pennsylvania. Could we see the sequel to the 2015 impasse?

You can stay up to date on nonprofit-focused policy and budget news at the Greater Pittsburgh Nonprofit Partnership (GPNP) website’s weekly summary page. The Pennsylvania Association of Nonprofit Organizations (PANO) is another resource for news out of the General Assembly.

2 thoughts on “PA Nonprofits May Want to Prepare for a Rough 2017-18 Budget Process”

  1. Pension reform is a farce and should be fought against by every socially aware nonprofit committed to the advancement of social conditions. Good for the employee collectives! Shame on the short-sightedness and greed of the so called “leaders” of these human service organizations. When your employees have completed dedicating their lives for the strategic directives developed by the “leaders,” they have earned security from degradation and poverty in their golden years. If the leadership are truly committed to sustainable budgets, cut leadership salary in equal proportion to the sacrifice expected of nonprofit employees forced to the realities of insecure retirements. Nonprofit leadership is not a business venture, it is the advancement of the human condition.

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