Pennsylvania Nonprofits Face Crisis as Budget Impasse Threatens Jobs and Services
Pennsylvania's nonprofit sector is facing a dire situation due to the ongoing state financial plan deadlock. A survey by the Pennsylvania Association of Nonprofit Organizations (PANO) reveals that around 80% of respondents will exhaust their reserve funds by the end of October, with many already reducing jobs and services. Dozens of advocates gathered in the Capitol to warn lawmakers of impending layoffs and service disruptions.
The PANO survey of 200 members found that organizations have already cut or laid off more than 1,700 employees statewide, with some workers already going without pay and health care. If the budget stalemate continues, nearly 241,000 Pennsylvanians will experience service reductions or disruptions by the end of October. The situation is urgent, with more than 21% of surveyed organizations already depleting their savings by early October. Interest payments on loans taken out to keep operations running are expected to cost over $1.9 million, further straining resources.
Representatives of service providers sent a letter to Gov. Josh Shapiro and members of the General Assembly last week, pleading for a swift budget resolution. Despite months of pressure from critical service providers, counties, and school districts, lawmakers have made little progress on budget negotiations. The organizations affected include sexual assault crisis centers, food banks, and programs for youth, elderly, and individuals with intellectual disabilities, which have been without state funding since July 1.
The budget impasse is pushing Pennsylvania's nonprofit sector to the brink, with job losses, service disruptions, and financial strain mounting. Lawmakers must act swiftly to enact a budget and prevent further harm to critical community services and the people they serve.
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