Wednesday, January 12, 2011

State Budget & Nonprofits

As reported by the Contra Costa Times, the new budget proposed by Governor Brown may result in less money to nonprofits.

An excerpt.

“Local nonprofit groups stretched thin by the recession could be hard-pressed to meet increased demand if nearly $4 billion in proposed cuts to programs for the poor become part of the final state budget.

“The need for food, housing assistance and other services has grown 30 to 40 percent in Contra Costa County since the economic downturn began in 2008, said Larry Sly, executive director of the Concord-based Food Bank of Contra Costa and Solano.

“Food banks, food pantries and housing services have been struggling to keep up with demand, Sly said.

“An influx of clients cut off or with reduced checks from state programs might drastically reduce agencies' ability to offer aid, he said.

“Gov. Jerry Brown's proposed budget released Monday calls for a nearly 25 percent reduction to CalWORKs, which provides income and child care subsidies to low-income families with children.

“The proposal would also eliminate child care grants for 11- and 12-year-olds, for a savings of $750 million.

“Those affected by the cuts likely would seek free food and other services from nonprofit groups, Sly said.”