Article: PA. State Budget Cuts Causing Real Harm to People in Need

[JPZenger]

http://www.pennlive.com/editorials/index.ssf/2012/01/state_budget_cuts_harm_people.html

Excerpts:

"Of the 800 nonprofits that responded to the recent United Way survey, 69 percent said their state funding has been reduced. Of those organizations, 45 percent said the reductions have been 10 percent or greater.

The cuts in funding meant that 27 percent of nonprofits trimmed programs, 32 percent canceled programs and 52 percent furloughed staff...

In another United Way survey, we learned funding problems that year led agencies to take out a line of credit at an average interest rate of 3.5 percent. On a $100,000 loan, agencies needed to repay $3,500 — money not in their budgets that year. Many agencies also exhausted 50 percent of their reserves."