As states face the continuing economic uncertainty and in some cases, budget crises, layoffs are occurring, budgets are being slashed, waiting lists for services grow and nonprofits are expected to meet this increased need with less than ever before. When it comes to the impact of the recession on nonprofits the news is indeed, “terrible, horrible, no good, and very bad”.
- According to a brief at Stateline.org, mental health budgets are being cut for the first time in over thirty years. Emergency rooms, shelters and the justice system may not be able to provide adequate or appropriate coverage for the lack of access to services.
- The Center on Budget and Policy Priorities Off the Chart blog reports that 46 states faced budget shortfalls for fiscal year 2011, and for 2012, it is projected that states will face approximately $120 billion in shortfalls. There’s more – next year they will not receive American Recovery & Reinvestment Act (ARRA) assistance.
- The ability of nonprofits to deliver needed services or provide programming has been seriously limited by the recession according to a report by the John Hopkins Center for Civil Society Studies . However, the paper indicates that there is a silver lining to the recession cloud of gloom and doom – human services organizations have suffered somewhat less due to ARRA funding and remain resilient in the face of a bumpy future by utilizing coping strategies and flexibility.