Fiscal Challenges Come Home to Roost Locally

April 15, 2011 | By Liza Casabona | Post a Comment

Lest we forget that the federal government isn’t the only one facing budget challenges, news reports this week carried some gloomy reminders that increased fiscal pressure is creating a spring freeze in many local backyards as well.

Reuters detailed the greatest threats for local and state governments in a story this afternoon. The list of risk factors included pensions for public employees, weak revenues and federal mandates.

According to a Washington Post article today, Virginia’s attorney general notified state officials that some of the state’s payments to nonprofits were unconstitutional, effectively cutting off funding for a number of organizations, including free clinics and childhood health groups. Names of the affected groups were not immediately released.

And yesterday, The Nonprofit Quarterly featured a story about a proposal by Oregon’s Governor John Kitzhaber to cut $16 million in funding for prison-based programs that have helped Oregon become a “national standout” for keeping people out of prison.

This appears to be only the tip of the economic iceberg for state and local governments and nonprofits, whether due to local issues or trickling down from federal budget constraints.

What programs are at risk where you are?


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