What do you know about your state’s budget cut priorities? Most state legislatures have adopted a number of budget cuts that will affect nonprofits, and most have prioritized the budget cuts. Many have just finished their sessions, and department secretaries and bureau chiefs are working to allocate budget cuts. Some departments are spreading budget cuts across a range of programs and services. Others are cutting whole programs. However, state government cuts are anticipated to be approximately 11% this fiscal year, and 12% next fiscal year.
Nonprofits need to be proactive about managing what may be significant budget cuts. When looking at government budget cuts, nonprofits should be aware that programs like Medicaid and Medicare, some education initiatives, and some childrens’ programs are entitlements and not subject to the normal government budget cut process. Therefore, state cuts to grants and contracts with nonprofits will come to what are called discretionary programs.
Here are some things you can do to respond to the state’s budget cut priorities:
- Check to see what part of your agency’s funding comes from the entitlement or discretionary side of the house.
- Then, check to see what the legislature has passed, and whether there are actions that could affect your budget for the next fiscal year. The budget cuts will come from discretionary programs.
- Manage the budget cuts: plan how to adjust your budget.
- Look to raise more funds from donors. Mobilize the board and volunteers to raise funds from donors. Make this a top priority, and begin work right away.
- Make the contacts you need, and work collaboratively with other nonprofit leaders when that would help make a case for support for certain types of services. Regular checking on state budget cuts and their impact on your nonprofit’s budget will provide you with more time to develop strategies for sustainability.
Take care. More later. Anne Hays Egan <h1>State Budget Cuts and Priorities<h1> <h1>state budget cuts<h1> <h2>state budget cuts and priorities<h2> <h2>budget cuts<h2> <h3>budget cuts<h3>
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state’s budget cut priorities
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