Save the estate tax 12/22/09

The Senate could still act to extend the estate tax past its scheduled expiration on December 31, "Don't Let the Estate Tax Die," co-written by Rev. Larry Snyder of Catholic Charities USA and Diana Aviv of Independent Sector points out that "allowing the estate tax to disappear at a time when millions of Americans need help is unconscionable and irresponsible --surely not a message that Senators want to send to their constituents." For the latest news on the estate tax and why it matters to you and your organization: http://www.independentsector.org/programs/gr/estatetax.html

Jobs Bill Provides Boost to Nonprofits 12/17/09

The House of Representatives has passed a $154-billion jobs bill that includes $200-million in fresh money for AmeriCorps, the national-service program, whose members conduct services for nonprofits and communities including financial counseling, disaster response, housing support, and after-school programs. The money, provided in the Jobs for Main Street Act, H.R. 2847 http://www.rules.house.gov/111/LegText/111_hr2847hamndsamnd.pdf, would allow AmeriCorps to add 25,000 members. The Senate is not expected to consider the jobs bill until early next year.

Nonprofit Fundraising Exempted from New Oversight Proposal 12/16/09

Congress is considering the creation of a new Consumer Financial Protection Agency (CFPA) to restrict predatory lending and other improper financial practices. As initially written, it appeared that a variety of nonprofit fundraising activities might be swept into the broad definition of "financial services" that would be regulated under the legislation. But as passed by the House on December 11 "The Wall Street Reform and Consumer Protection Act" (HR 4173) would establish a new CFPA but exempt charitable-giving advice from the new agency's jurisdiction. Details: http://www.independentsector.org/programs/gr/Consumer_Financial_Protection.htm

Local Outreach Key to Success of Census

U.S. Census Bureau Director Robert Groves said yesterday that he is much more confident in the bureau's ability to pull off an effective count than he was when he came into the job in July. Nonprofits are key to increasing local outreach to communities of people that have been undercounted in the past. Groves believes that coordinated outreach efforts by local leaders and groups will more effectively communicate "that for the good of the country everyone needs to participate." To get involved: www.nonprofitscount.org

Congress Agrees to $50-Million for Social Innovation Fund, Cuts Volunteer and Capacity-Building Fund 12/10/09

Congressional negotiators have agreed to allocate $50-million in the 2010 fiscal year for the new Social Innovation Fund, which will provide grants to help promising nonprofit groups expand effective programs - the full amount requested by President Obama. However, in a deal http://appropriations.house.gov/pdf/FY10_LHHS_Conference_Summary.pdf yesterday on the Corporation for National and Community Service budget, a House-Senate conference committee decided to trim spending on two other programs designed to help nonprofit groups - the Volunteer Generation Fund and the Nonprofit Capacity Building Program. The Capacity Building program will begin its first year with $1 million in funding, well below what was hoped for by nonprofit advocates, including CAN, who have lobbied for several years to create the program, but nevertheless a new step in the right direction for government support of nonprofits.

Congress to act on charity giving incentives today 12/9/09

House Ways and Means Committee Chairman Charles Rangel (D-NY) introduced December 7 the Tax Extenders Act of 2009 (H.R. 4213), and the bill is expected to go to the House floor today. The $31 billion package of 49 tax incentives would extend for one year the IRA charitable rollover, deductions for food donations, and land conservation giving incentives. Take action! See http://www.independentsector.org/programs/gr/IRArollover.html

Major giving incentive threatened 12/8/09

The House of Representatives has passed legislation to extend the estate tax permanently at 2009 levels. Now is the time to contact Senators Boxer and Feinstein to urge the Senate to pass identical legislation before they complete work this year. Without it, legal authorization for the estate tax will expire and this important incentive will be lost for people of great wealth to give back to communities through charitable contributions and tax revenues. Take action http://www.independentsector.org/media/20091204_estatetax.html

California nonprofits included at Obama's jobs summit 12/4/09

The leaders of two Oakland-based national nonprofits - Angela Glover Blackwell, PolicyLink and Phaedra Ellis-Lamkins, Green for All - were among the 135 invited participants in President Obama's jobs summit held yesterday at the the White House. Joining them were California business people - including Joni Marie O'Neil, Mission Viejo Florist, Inc. and Eric Schmidt, Google Inc. - and government officials - including former California congressmember and now Secretary of Labor Hilda Solis and Ashley Swearengin, Mayor of Fresno. Diana Aviv, CEO of Independent Sector, whose members include a number of California nonprofits, also participated. Obama said at the summit that he would present some details of his administration's preferred ideas next week. Details: http://www.washingtonpost.com/wp-dyn/content/article/2009/12/03/AR2009120304731.html?wpisrc=newsletter&wpisrc=newsletter&wpisrc=newsletter

Health care reform unlikely to relieve burdens on nonprofits 11/30/09

The Senate is scheduled to begin debate on its $849 billion health care bill (HR 3590) today after clearing its first procedural hurdle before the Thanksgiving holidays. However, no matter what health care bill emerges from Congress, roughly one in six uninsured Californians will be excluded because they are not legal residents. According to a story in the San Jose Mercury News (11/29/09), “none of its provisions are likely to be available to the nation’s estimated 12 million undocumented immigrants, a group that typically receives no insurance at work and lacks the means to buy it on their own,” and which often needs to turn to nonprofit clinics and hospitals for medical services. Details: http://www.mercurynews.com/breaking-news/ci_13892103?source=rss.

Congress plans action on giving incentives 11/23/09

The “Tax Extenders Act of 2009” includes $1.2 billion in incentives to encourage charitable giving, such as the IRA charitable rollover, deductions for food donations, and land conservation giving incentives. It may be taken up as early as the week of November 30 by the House Ways and Means Committee. To support this bill: http://www.independentsector.org/programs/gr/irarollover_signonletter2009.html

Taxes, government and nonprofits 11/20/09

Congressional Research Service (CRS) released a report this week with recent data on the size and scope of the nonprofit sector, how charities are funded, the charitable sector’s relationship with the government, and related policy issues such as the tax treatment of charitable donations, health care reform, responses to the economic downturn, and the federal government's new social innovation initiative. Details: http://cts.vresp.com/c/?IndependentSector/e0344f76f2/cf0f76a79b/db09543d8b

Congress urged to create youth jobs in nonprofits 11/18/09

Congress should provide close to $1.5-billion in extra spending on national-service programs over the next two years to provide jobs for young people who have been hit hard by the economic crisis, a new report <http://www.americanprogress.org/issues/2009/11/national_service.html> by the Center for American Progress argues. The report suggests that the effort could help both young people who are experiencing the country’s highest unemployment rates in years and nonprofit groups that could use youth workers to help meet the rising demand for antipoverty services.

Tax law proposals threaten nonprofit funding 11/12/09

The Congressional Budget Office estimates that repealing the estate tax would decrease donations to charity by 6% to 12% a year and reduce bequests by 16% to 28% a year. Estate-tax reforms passed at the start of the decade call for no tax at all in 2010, followed by reinstatement the subsequent year. Many state and natinal nonprofit associations, including CAN, are urging lawmakers to maintain the tax at 2009 levels, including a 45% rate and a $3.5 million exemption. Lawmakers also are proposing a cap on the deductibility of charitable contributions that could make a donor's deduction worth less. Under current law, taxpayers earning more than $200,000 annually can take itemized charitable deductions at a 33% rate (35% for families earning more than $250,000). A number of proposals aim to cap the value of itemized deductions at 33% or 35% for taxpayers whose tax brackets would increase to 36% or 39.6% in 2011. Source: Wall Street Journal. Info: <http://www.independentsector.org>

House passes health care reform, restricts support for abortions and undocumented immigrants 11/9/09

The House has passed its version of comprehensive health care legislation (HR 3962), setting the stage for what is expected to be a difficult debate in the Senate. The bill includes a public health insurance option, insurance exchanges, individual and employer mandates, and assistance for both individuals and small businesses – but not nonprofits - to obtain coverage. A last-minute amendment restricts the availability of coverage for abortions, which many insurance plans now offer, limiting abortion coverage even for women paying for it without government subsidies. Both the House and Senate bills deny subsidies to undocumented immigrants, but the Senate version goes further by also barring them from buying coverage on the new marketplace with their own money.Details: http://edlabor.house.gov/newsroom/2009/11/house-makes-history-on-health.shtml.

State reopens applications for fundraising opportunity 11/4/09

State reopens applications for fundraising opportunityCalifornia nonprofits now have the ability to link together electronically to play Remote Caller Bingo, recently authorized by state law and offering the opportunity for players in number of different locations to play in a single game, increasing the size of the prizes for the players and the fundraising potential for nonprofits conducting the game. The California Gambling Control Commission recently reopened applications to conduct remote caller bingo. Details: http://www.cgcc.ca.gov/bingo.asp

Reform Groups Unveil Initiatives 11/3/09

Two reform groups have submitted ballot measure language to the Attorney General for review as a first step to putting initiatives on the November 2010 statewide general election ballot. The California Forward Action Fund has submitted a pair of initiatives that they say would bring comprehensive reform to California's broken budget process. Repair California, turned in measures that would select 465 people to conduct "limited" redrafting of the state's basic laws through a constitutional convention. Once they receive the attorney general's approval, supporters will have until mid-April to gather 694,435 registered voters' signatures for each of their initiatives.

New House health reform bill still excludes nonprofits 10/30/09

House Democratic leaders yesterday introduced the Affordable Health Care for America Act (HR3962) that would extend health coverage to 96 percent of all Americans once it is fully implemented. Among its key components, the legislation would create a health insurance exchange through which individuals and many nonprofit and other employers could purchase health coverage, provide a government-run public insurance option, and impose individual and employer mandates. The small business credit was not revised to provide support for nonprofit organizations, despite a strong lobbying effort, but, according to Intendpendent Sector, tax staffers report that the House is “positively predisposed” to address the issue in a House-Senate conference. Details: http://edlabor.house.gov/blog/2009/10/affordable-health-care.shtml.

Health reform floor debate begins soon, nonprofits fight for fair treatment 10/28/09

House Democratic leaders want to bring their massive health care overhaul legislation to the floor next week, if they can line up a majority behind a single 'public option' proposal. As the vote approaches, the National Council of Nonprofits and Independent Sector are urging nonprofits to get involved in their campaigns to help ensure that any health care reform measures provide incentives to nonprofit employers that are equivalent to those provided to for-profit employers.

Governor Acts on Legislation 10/21/09

Governor Arnold Schwarzenegger has completed action on the 872 bills passed by the Legislature this year, the fewest in more than 40 years. Schwarzenegger set a record for signing the fewest bills in a single year, approving only 632 of the measures that reached his desk in the 2009 regular session (three special sessions are scheduled for this fall). Schwarzenegger vetoed 240 bills, 27.52 percent of those sent to him – a sharp drop from last year’s record of 414 vetoes.

Are you fundraising online? 10/20/09

In the past, it wasn’t necessary for many groups to file registration papers outside of their home states. But with the advent of online fund raising, many organizations are probably violating laws in some states because they are collecting donations without letting state authorities know. Details: http://philanthropy.com/news/government/index.php?id=9876

Nonprofits excluded from health care reform 10/16/09

Health care reforms currently pending in the House help only small for-profit businesses with a tax credit, a solution that provides zero relief to nonprofit employers that bear the same burden of rising health care costs. By excluding nonprofit employers, the three versions of the House bill place a greater burden on nonprofits than on for-profit businesses. To help turn this situation around, contact klarsen@canonprofits.org.

Legislators pass funding bills for nonprofits and local government 10/15/09

The California State Senate passed measures Wednesday to restore funding to domestic violence shelters and help cities and counties borrow money to balance their budgets. Senators voted unanimously to approve a measure restoring $16 million cut from the budget for 94 nonprofit domestic violence shelters, forcing half a dozen shelters to close and others to reduce their services. The Senate vote also was unanimous on a measure to make it easier for cities and counties to borrow against future funding from the state to plug budget holes created when the state took $1.9 billion from local coffers this summer. Details: http://www.csac.counties.org/.

Help preserve nonprofit giving incentive 10/13/09

The IRA Charitable Rollover – which allows older Americans to make tax-free distributions to nonprofits from IRA accounts - expires December 31, 2009 unless reauthorized by Congress. California are key players in this decision. To find out more and take action. http://www.independentsector.org/programs/gr/IRArollover.html.

Legislators honor nonprofit workers 10/7/09

State Senator Carol Liu (D-La Cañada Flintridge), Assemblymember Paul Krekorian (D-Burbank) and Assemblymember Anthony Portantino (D-La Cañada Flintridge) included two “outstanding nonprofit executive directors” and two “outstanding nonprofit employees” among the awards they recently presented to 25 “exceptional businesswomen” from their respective districts. The women were honored for their contributions “to the economic growth and well-being of Southern California.” Details: http://dist21.casen.govoffice.com/index.asp?Type=B_BASIC&SEC={010596EB-8442-4018-8FB9-D959D30D47F4}.

Nonprofits face pension crisis 10/5/09

Independent Sector, a national coalition public charities, private foundations, and corporate giving programs, has renewed its call for Congress to ease rules that require charities and other employers to make certain payments to “defined-benefit” pension funds. Many employers, including nonprofit organizations, that sponsor defined benefit pension plans will soon be required to make large catch-up contributions into their pension funds due to the decline in the financial markets and new pension funding rules that require the losses to be repaid within seven years. Details; http://www.independentsector.org/programs/gr/Pension_Plan_Funding_Relief.htm.

Rising Costs and State Cuts Threaten Medi-Cal's Future 9/30/09

Medi-Cal provides health insurance for 6.8 million people — one in six Californians — and is a major source of funding for safety-net providers. A newly updated report from the California HealthCare Foundation reveals how the continuing rise of health care costs and increased demand for services — at a time of declining state revenues — are putting the squeeze on the program, health care providers, and beneficiaries. Details: http://www.chcf.org/topics/almanac/.

State budget may hold steady until mid-January 9/29/09

According to a story in the San Jose Mercury News, “the state's fragile revenue and spending projections ought to hold up until at least mid-January — and maybe even beyond, analysts and economists say. If true, it would mark the longest stretch in more than a year when deficit-slashing wasn't the topic du jour in Sacramento...Still, problems with the budget — taped up with accounting tricks and other one-time fixes — are probably due to hit after the first of the year.” Details: http://www.mercurynews.com/ci_13422566?source=most_emailed.

State Government Reform Proposals Take Shape 9/24/09

Repair California, a coalition of proponents of a constitutional convention to change how the state is governed said today they plan to submit language for two related ballot measures to the state attorney general's office in mid to late October. Meanwhile, another reform group, California Forward, is also in the late stages of drafting formal proposals intended to fix the state’s budget and management problems.

New nonprofit provision proposed for health care reform 9/23/09

Several Senate Finance Committee members have proposed that nonprofits be eligible for tax credits designed to help small businesses offer health insurance to their employees in legislation to overhaul the health-care system. The bill <http://finance.senate.gov/sitepages/leg/LEG%202009/091609%20Americas_Healthy_Future_Act.pdf> unveiled last week by the committee’s chairman, Democrat Max Baucus of Montana, offers federal tax credits to small businesses, but it would benefit only employers that pay income tax — a category that excludes most nonprofit groups. Details: <http://philanthropy.com/news/government/9568/senators-propose-nonprofit-eligibility-for-health-insurance-tax-credits> .

Nonprofit voices needed in health care debate 9/17/09

As the national debate on health care reform moves forward, it’s important that congressional offices and administration officials hear their constituents about the role of nonprofits as employers and the importance of providing incentives to small nonprofit employers that are comparable to those offered to for-profit employers. For tools and information to assist you with this effort: Independent Sector and the National Council of Nonprofits.

New health care proposal has key nonprofit provisions 9/16/09

Senate Finance Committee Chairman Max Baucus (D,Mont.) today introduced the “America's Healthy Future Act,” his long-awaited health care reform legislation. The Finance Committee will meet to begin voting on this proposal next week. Included in the bill are provisions for nonprofit consumer owned and operated health care plans as well as requirements for nonprofit hospitals “to conduct a community health needs assessment at least once every three years and adopt an implementation strategy to meet the community needs.” Details: http://www.insurancejournal.com/news/national/2009/09/16/103810.htm.

New Data Shows Rise in Poverty, Fall in Job-Based Health Coverage 9/14/09

Census Bureau data released late last week shows that more than 5.3 million Californians had incomes below the federal poverty line in 2008, a substantial increase from the previous year. In addition, the share of Californians under the age of 65 with job-based health coverage slipped to 56.2 percent, continuing a multiyear downward trend. Details: http://www.cbp.org/.

Mayors , Entertainment Industry Promote Volunteerism 9/11/09

LA Mayor Antonio Villaraigosa, Sacramento Mayor Kevin Johnson and 15 other mayors from around the nation today announced a new coalition to promote volunteerism as a way to help cities combat their most pressing problems. The mayors hope to persuade their colleagues to join the coalition by signing the coalition’s Declaration of Service. Details: http://www.citiesofservice.org. At the same time, the Entertainment Industry Foundation announced a separate multi-year campaign to enlist television networks and the wider entertainment industry in an effort to promote volunteerism.

Health care speech provokes wide range of reactions 9/10/09

Nonprofit organizations and leaders responded to President Barack Obama’s address on health care to a joint session of Congress last night with views ranging from relief and enthusiasm to doubt and scepticism. For liberal viewpoints, see http://www.huffingtonpost.com/ ; for conservative reactions, see http://www.cato.org/For text of the President’s remarks: http://www.whitehouse.gov/. For a video of the speech and responses from elected officials: http://www.c-span.org/.

The Hidden Health Care Crisis for Nonprofits 9/9/09

New data generated by the Johns Hopkins Nonprofit Listening Post Project reveal that health care costs are also producing a so-far hidden crisis for America’s nonprofit organizations and the nearly 13 million workers they employ. The impact is already being felt in organizational decisions to stop offering, or reduce coverage of, health benefits, in higher employee co-pays and shares of insurance costs, and in pressures to hold down wages, shift to part-time employees, and even reduce mission-critical services. Details: http://ccss.jhu.edu/.

California Issues Last of IOUs 9/4/09

As the state issued its final IOU yesterday, two of California's leading banks have announced they'll resume honoring the notes. The state began issuing IOUs on July 2 in order to conserve cash as the state Legislature wrestled with a $26 billion deficit. Wells, BofA and other leading banks refused to accept IOUs after July 10, creating a cash flow crisis for many nonprofits and other state vendors. Details: http://www.sacbee.com/politics/story/2159610.html?mi_rss=State%2520Politics.

Attorney General Cautions Donors to Wildfire Victims 9/3/09

California Attorney Jerry Brown has urged Californians who want to help wildfire victims to avoid "sham charities.” In a news release, Brown warns "Californians should give only to reputable organizations so their donations don't end up lining the pockets of criminals and opportunists." Details: http://ag.ca.gov/newsalerts/release.php?id=1794.

Getting California Back on Track 8/31/09

California Forward – the statewide nonprofit government reform organization - recently unveiled a comprehensive plan to overhaul our budget and fiscal systems, bring government closer to the people and make elected officials more accessible and accountable. To sign up for a webinar on TU 9/1, 2:30 3:30 PM PDT that will provide an in-depth overview of CF’s plan, paste into browser: https://www2.gotomeeting.com/register/905085906

Nonprofits May Take Over LA Schools 8/26/09

The Los Angeles City Board of Education adopted a resolution that could turn a third of schools in the nation's second-largest school district over to nonprofit charter school organizations and the mayor's group that already oversees 11 schools. Involved are 50 new schools that will open over the next four years, as well as 200 existing schools that are chronic underperformers. Superintendent Ramon Cortines has 60 days to develop a plan. Details, including video of the Superintendent’s response: http://abclocal.go.com/kabc/story?section=news/local/los_angeles&id=6984184.

How safe is the safety net? 8/24/09

Significant funding cuts and policy changes targeting safety-net programs in the state’s newly-revised budget are the topics of a just-released report by the California Budget Project. Details: http://www.cbp.org/pdfs/2009/090821_Post_Webinar_Slides.pdf.

Budget Reform Proposals Take Shape 8/20/09

With less than a month left in the legislative session, proponents of change urged a state Senate panel this week to quickly adopt ideas for budget reform that have bipartisan support while continuing to push for solutions to tougher problems -- or risk having voters do it for them. CAN is working with California Forward - one of the major reform proponents - to make sure nonprofits are heard in the debate.

Details: http://www.latimes.com/news/local/la-me-calif-reform19-2009aug19,0,2837667.story

What's in the state budget? 8/5/09

If you - like many others - are confused by the flurry of state budgetproposals over the last few weeks, check this out: A new analysis onthe website of the California Budget Project(http://www.cbp.org/) compares major features of GovernorSchwarzenegger's May budget proposals, the actions approved by theLegislature's Budget Conference Committee, and the budget agreementsigned into law on July 28.

Local government cuts 8/4/09

The state's new budget calls for borrowing $2 billion from cities and counties, and takes another $1.7 billion from local redevelopment agencies. A new database — compiled by The Sacramento Bee -- lets you see how much the state will borrow or take from each local government this fiscal year: http://www.sacbee.com/latest/story/2048655.html.

What’s in the State Budget? 7/30/09

The nonpartisan Legislative Analyst's Office and the nonprofit California Budget Project have released clear and concise summaries of the state budget revision package signed into law Tuesday. Meanwhile, several lawsuits are expected soon contesting the governor’s legal authority to cut from a budget revision.

Details: http://www.sacbee.com/static/weblogs/capitolalertlatest/024234.html

Governor vetoes $656 million, predicts more cuts may be ahead 7/28/09

Gov. Arnold Schwarzenegger signed a package of budget bills this morning, adding $656 million in line item vetoes to the already drastic reductions made in the 2009-10 state budget revision sent to him by the Legislature late last Friday. "We are not out of the troubled waters yet," he said."We are ready if our revenues drop further to make the necessary cuts to again live within our means." Many of the items he blue-penciled will further shift unfunded responsibility for critical community needs from government to nonprofits.

Details: http://www.ebudget.ca.gov/Enacted/BudgetSummary/BSS/BSS.html

Feds Act on Nonprofit Funding 7/23/09

The Corporation for National and Community Service has posted a fact sheet about the new Social Innovation Fund. If funded by Congress, the Fund will provide grants to help nonprofit groups expand successful social projects. The House Appropriations Committee last week recommended $35-million for the fiscal year beginning October 1. The Committee also acted on a wide range of other funding for nonprofits. For details on the Fund, see http://philanthropy.com/news/government/index.php?id=8941. For details on Appropriations Committee actions, see http://appropriations.house.gov/.

State Budget Deal Faces Lawsuits and Protests 7/22/09

California's proposed state budget deal is taking hits on multiple fronts, with local government groups prepared to sue the state to stop the taking of transportation and redevelopment funds and Republican lawmakers accusing the Legislature's Democratic leaders of reneging on a pledge to avoid prison inmate releases (for details, see http://www.rtumble.com) Meanwhile, health and human services advocates are planning demonstrations protesting safety net cuts in Sacramento and Fresno on Thursday (for details, contact Kim McCoy Wade 415-531-3222, <kim@mccoywade.org>.

State Budget Deal Shfits Burdens to Nonprofits 7/21/09

If the Legislature approves the $26 billion budget deal announced by legislative leaders and the governor last night, significant burdens will be shifted to thousands of nonprofits already suffering from the recession and previous government funding cutbacks. Included in the deal are cuts of $9 billion in education, almost $2 billion in safety net programs, and $1.3 billion in state worker furloughs, all of which leave Californians with nowhere else to turn other than nonprofits when they need health and social service assistance previously offered through state-funded or state-run providers. On top of that, the state is proposing to take billions from local government in the form of gas taxes, property taxes and redevelopment money. For L.A. County alone, it could mean losing about $850 million in revenue. The Legislature is expected to act on Thursday.

Details:
http://latimesblogs.latimes.com/lanow/2009/07/after-months-of-negotiating-californias-government-leaders-announced-an-agreement-today-to-plug-the-states-263-billi.html

Action Needed to Secure New Federal Dollars for Nonprofits 7/14/09

The House of Representatives is acting over the next two weeks on the budget for the Corporation for National and Community Service (CNCS) as a part of the FY 2010 appropriations bill. This includes a $169 million increase to implement the new Edward M. Kennedy Serve America Act, including millions of new dollars for nonprofit capacity building and innovations, but falls short of the President's requested level by $90 million.

Take Action: Now is the time to contact your Representative and Senators to urge them to fund the Serve America Act at the level requested by President Obama, or better. For talking points and sample letter: http://www.independentsector.org/programs/gr/National_Community_Service.htm.

Actions Planned to Protest Social Services Cuts 7/9/09

Campaigns are underway to organize call-ins and demonstrations at the governor’s local offices around the state to oppose proposed reductions to CalWorks, In Home Support Services and other safety net programs. Contact: Kim McCoy Wade, Western Center on Law and Poverty/Health Access, 415-531-3222, <kim@mccoywade.org>.

Banks to Suspend IOU Payments 7/8/09

Some of the state’s largest banks say they would stop accepting California's IOUs as of this Friday, adding pressure on the state to close its $26.3 billion annual budget gap. Not all banks have set a July 10 deadline, and dozens of nonprofit credit unions(see http://www.ccul.org/01consumers/) in the state will keep accepting IOUs. For details: http://online.wsj.com/article/SB124692354575702881.html#mod=todays_us_page_one.

Counties Fight Major Hits in Budget Crisis 7/8/09

California’s 58 counties are fighting with a barrage of information the negative impacts of proposed cuts to social services and the issuing of IOUs. Details: http://www.counties.org/default.asp?id=235.

Nonprofits Face Fear and Confusion in State's Fiscal Emergency 7/2/09

According to today’s Chronicle of Philanthropy, “California charities that depend on state money to survive are facing a mixture of confusion and fear after Gov. Arnold Schwarzenegger declared a fiscal emergency and the state said it would start paying many of its bills with IOU’s.” CAN supplied contacts and information for this story, which you can read in full at http://philanthropy.com/news/updates/index.php?id=8769.

Last-Minute Demand Stalls State Budget 7/1/09

While thousands of nonprofits and businesses await the IOUs that the state will start issuing tomorrow, state budget negotiations are still at a stalemate. According to Dan Walters of The Sacramento Bee, one of the most significant hangups is “an 11th-hour demand by Gov. Arnold Schwarzenegger that Democrats agree to an overhaul of the state's pension system and health benefits for retired state workers.” For more information: http://www.sacbee.com/walters/story/1991083.html?mi_rss=Dan%20Walters/

State Will Pay with IOUs (6/30/09)

The state controller's office says it will begin issuing IOUs on July 2 for the first time since 1992 if the governor and Legislature haven't come up with a budget fix.Many nonprofits with state contracts will be impacted. Details: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/06/30/BUT618FP50.DTL

Court Upholds Health Care Budget Cuts 6/29/09

A judge’s ruling allowing the state to eliminate “optional” Medi-Cal benefits for federally qualified health centers and rural health centers nullifies gains made by clinics as part of the federal economic stimulus package and will result in loss of nearly $130 million in services, including adult dental, acupuncture, audiology and speech therapy, chiropractic, optometry and optician, podiatry and psychology. For details: http://www.pressdemocrat.com/article/20090628/articles/906289973

Governor’s Workers Comp. Proposal May Drive Up Rates 6/26/09

The governor wants to help reduce the state’s $24-billion budget deficit by giving private insurers a chance to buy about half of customers' policies at the State Compensation Insurance Fund, which covers175,000 nonprofits and small businesses. Opponents fear that selling the nonprofit company's least risky policies could cause the price of workers' comp coverage to skyrocket for employers that stay with State Fund. Details: http://www.latimes.com/business/la-fi-statefund25-2009jun25,0,5797085.story

Budget Fix Fails; IOUs Expected Next Week 6/25/09

State lawmakers have rejected a budget plan intended to tame California's $24-billion deficit. In response, Controller John Chiang announced that he would have to start paying many of the state's bills with IOUs on July 2 if a budget package is not passed by then. Details: http://www.latimes.com/news/local/la-me-budget25-2009jun25,0,1060005.story

Health Care Reform Agreement Closer 6/25/09

US Senate Finance Chairman Max Baucus announced today that his panel was close to producing a health-care reform bill: Details: http://voices.washingtonpost.com/health-care-reform/?wpisrc=newsletter&wpisrc=newsletter&wpisrc=newsletter

Budget Vote Expected this Week 6/22/09

The State Legislature is expected to vote this week on plans to fix a cumulative $24 billion hole in the budget they already approved last February for the coming fiscal year, and the current year ending June 30. A 10-member, two-house legislative committee (three Democrats and two Republicans from each house) took about a month to overhaul the governor's latest budget proposal released last month.

For highlights of the differences between the governor and the conference committee, see http://www.sacbee.com/capitolandcalifornia/story/1965211.html.

For a detailed comparison, see http://www.cbp.org/.

Proposals in the works to overhaul taxes and restructure state government.
Radical new blueprints for revenue-generation and fixing the California Constitution are being circulated in Sacramento.

To find out more about tax plans, see http://www.sacbee.com/walters/story/1959553.html.

To find out more about the campaign for a Constitutional Convention: http://www.newsreview.com/sacramento/content?oid=1015956.

Grand Jury Recommends Nonprofit Support

A just-released Nevada County Grand Jury survey found “a sharp increase in the number of people applying for short-term assistance with food and shelter. Every agency interviewed indicated that its resources are stretched to the limit..... There is a waiting period to enter the county’s social service system to receive aid. Non-profit agencies provide prompt and ongoing support....These organizations are in need of continued and increased community support.”

For the full report: http://court.co.nevada.ca.us/documents/gjreports/0809-HEVHomelessnessinNevada.pdf

Today! White House Conference Call on Service/Volunteerism 6/17/09

Please join us TODAY, Wednesday, June 17th at 3:00pm EST for a conference call with Obama administration officials regarding the launch of United We Serve, Presdient Obama's call to service that was just launched today.

Title: Service Call *use this in lieu of a passcode*
Participant: (800) 230-1766
Please RSVP to public@who.eop.gov <mailto:public@who.eop.gov>

New Fundraising Opportunity 6/11/09

By linking a number of sites electronically, remote caller bingo allows a large number of people to play at the same time. Recently legalized by legislation co-sponsored by CAN, remote caller is intended to generate larger prize pools and revive interest in charity bingo, which has been a source of significant income for thousands of nonprofits for generations. Further information is available from the California Gambling Control Commission ( http://www.cgcc.ca.gov/). And if you think you might use remote caller bingo, please let us know by contacting CAN Public Policy Director Ken Larsen klarsen@Canonprofits.org so that we can track the impact of this fundraising tool and assist you with any problems you may experience.

Public Policy Update 2/20/09

Government actions with multi-billion impacts on nonprofits have been made this month. Here are details and links to additional information. Keep checking this space for more as implementation and advocacy efforts get underway.

State budget plan adopted after more than three months of negotiations

California Senate Democrats successfully renewed their push early Thursday, February 19 for the needed vote to pass a plan to fix a multibillion dollar budget deficit after even after their efforts were dealt a setback when Senate Republicans in a late-night coup ousted their leader over opposition to tax increases.

Many of the provisions in final package of 27 bills strain already-stressed community services:

Increasing nonprofit expenses

• Raises the state sales tax by 1 cent on the dollar.
• Raises the fee for licensing vehicles to 1.15 percent of market value, up from the current 0.65 percent. A portion of the fee will be dedicated to law enforcement.

Redirecting nonprofit funding

• Asks voters to shift for two years $227 million in voter-approved funding from Proposition 63, the state mental health fund, to pay for the Early Periodic Screening, Diagnosis and Treatment Program for low-income children
• Asks voters to redirect for five years $608 million in First 5 money for early child development to other children's programs

Transferring safety net responsibility from government to nonprofits

• Eliminates the state's annual cost-of-living increases for CalWORKS recipients to save $79 million.
• Eliminates the state and federal cost-of-living increase for seniors and disabled people receiving Supplemental Security Income/State Supplementary Payment for a $594.1 million savings.
• Unless the federal government provides extra state aid, almost a billion dollars of reductions to Medi-Cal, in-home support for seniors, and other social service programs
• Reduces funding to regional centers, for a savings of $181 million
• Asks voters to impose a limit on the amount the state can spend each year based on revenue growth over the previous 10-year period.

For more details on the state budget, visit California Budget Project (http://www.cbp.org/) and California Department of Finance (http://www.dof.ca.gov/). In the coming weeks, CAN will be analyzing the impact of the state budget plan on nonprofits, working for nonprofit-friendly budget reforms, and developing positions on the budget-related ballot measures scheduled for a May special election.

Economic Recovery bill passes Congress, gets Obama’s signature

• The Senate approved the $787.2 billion economic recovery package by a 60-38 vote on January 13, wrapping up weeks of contentious debate and sending the measure to President Obama, who signed the bill on January 17. The Senate action followed an earlier House vote of 246 to 183 with no Republican votes in support.
• The final American Recovery and Reinvestment Act (HR 1) includes a mix of roughly 65% percent spending and $35% tax cuts with sizable investments in infrastructure projects, science and energy, Medicaid assistance, healthcare, and support for vulnerable populations and communities. The bill also includes funding for education and $50 million a piece for the National Endowment for the Arts and for an initiative similar to the Compassion Capital Fund, both of which were missing from the final Senate version.
• The bill does not include requirements for recovery fund recipients to use the E-Verify system, nor the language prohibiting the use of funds for theaters, museums, and arts centers as outlined in an amendment by Senator Tom Coburn (R-OK). A ban, however, does apply to funding for aquariums and zoos, among other entities. Source: Congress Daily, Congressional Quarterly, Tax Analysts, BNA Daily Tax Report, CBPP, as compiled by Independent Sector)

CAN will continue to work with Independent Sector (http://www.independentsector.org/) and the National Council of Nonprofits (http://www.councilofnonprofits.org/) to monitor implementation of economic stimulus legislation to ensure that it strengthens nonprofits and helps our communities.

Highlights of plan to close Calif. budget deficit, The Associated Press

By The Associated Press
7:10 p.m. February 16, 2009

Here are key provisions of the proposal to close California's $42 billion budget deficit through June 2010:

Revenue
The plan would raise up to $14.4 billion through June 2010 by imposing a variety of temporary taxes. The higher taxes would be in effect for two years. However, Republicans would allow taxes to remain longer – two more years – if voters approve a state spending cap during a special election in May.

Here are the specific taxes:
– Increases the state sales tax by 1 cent on the dollar, generating $5.8 billion through the next fiscal year.
– Raises the fee for licensing vehicles to 1.15 percent of market value, up from the current .65 percent. The move is projected to generate $1.5 billion. A portion of the fee will be dedicated to local law enforcement.
– Adds a 12-cent gasoline tax, raising $2 billion.
– Imposes a one-time, 5 percent surcharge on people who owe personal income tax at the end of 2009 to generate $3.2 billion. If the state receives more than expected from the federal government, the surcharge would be reduced to 2.5 percent.
– Reduces the amount taxpayers can claim on a dependent care credit to the federal level of $100 instead of $300, adding $1.4 billion.
– Redirects $201.6 million of tribal gambling revenue from the state Department of Transportation to the general fund over the two-year period. The money is intended to offset the effects of increased traffic around Indian casinos.

Cuts
Reduces state general fund spending by $15.1 billion through the end of June 2010 by forcing education and social service programs to absorb much of the pain. Among other cuts, the budget proposal:

– Reduces education spending by $8.6 billion over two years, likely forcing schools to lay off teachers, slash salaries and postpone spending on construction and textbook purchases. The proposal also would give districts greater flexibility in spending money that is normally dedicated to specific programs.
– Imposes a 10 percent across-the-board cut to the University of California and California State University systems, saving $264.4 million.
– Continues a two-day-a-month furlough for 238,000 state workers, trims overtime pay and eliminates Lincoln's Birthday and Columbus Day as paid state holidays, saving $1.4 billion.
– Cuts the medical budget for the state prison system by 10 percent, saving $181 million.
– Eliminates annual cost-of-living increases for recipients of the state's welfare-to-work program, known as CalWORKS, to save $79 million.
– Eliminates the state and federal cost-of-living increase for seniors and the disabled who are receiving Supplemental Security Income/State Supplementary Payment, saving $594.1 million.
– Depending on whether the federal government provides additional aid, the budget compromise would make further reductions to the courts; Medi-Cal, the state's health insurance program for the poor; CalWORKS; in-home support for seniors; and other social service programs by $948 million.

Borrowing
– Approves a $5 billion plan to borrow against the value of the lottery's future revenue. Voters must approve changes to the lottery to make it more marketable in the hope that it will bring in more money, and then the state would have to entice investors to buy the bonds.
– Authorizes the state to take out $6 billion in bonds to cover bills that will not get paid in the current fiscal year. Lawmakers hope to avoid this loan by using federal aid.
– $432.6 million transferred from various special funds.

Ballot Questions
– Spending cap: Asks voters to impose a limit on the amount the state can spend each year based on revenue growth over the previous 10-year period. Money above that amount would be saved in a rainy day fund. That fund would be capped at 12.5 percent of revenue, and any amount above that could be used to pay debt or for one-time purposes. If voters approve the cap, then temporary taxes that are part of the budget would be extended for an additional two years.
– Education: Asks voters to modify Proposition 98, the voter-approved minimum school funding guarantee, to protect education funding when state revenue rebounds after lean budget years.
– Mental health: Asks voters to shift $227 million in voter-approved funding from Proposition 63, the state mental health fund, for two years to pay for a low-income child development program known as the Early Periodic Screening, Diagnosis and Treatment Program.
– Child development: Asks voters to redirect $608 million in First 5 money for early child development to other children's programs for five years. Voters approved Proposition 10 in 1998, adding a 50-cent tax to each pack of cigarettes.
– Lottery: Asks voters for permission to hand out larger lottery jackpots as a way to sell more tickets. Also grants the state permission to stop using lottery proceeds for education programs. Instead, school funding would be paid through the general fund.

Economic stimulus
– Grants up to $400 million in tax credits for companies with 20 or fewer employees that hire new workers over the next two years. Allows businesses to claim a credit of up to $3,000 per full-time job created.
– Provides up to $100 million a year for five years in tax incentives for movie studios to film in California, known as the runaway production credit.
– Reformulates taxes for corporations that operate in multiple states. Republicans say the tax break would encourage investment in California while critics called it a giveaway that could cost the state $690 million a year.
– Allows unlimited public-private partnerships on state transportation projects through 2017.
– Speeds up construction on 15 state public works projects, 5 local transportation projects and 10 redevelopment agency projects by allowing one company to do both the design and construction.
– Removes environmental hurdles and accelerates permit approval for 10 road projects in seven counties through 2010. Allows the state to expand partnerships with private companies to build projects from design to construction.
– A 2007 off-highway diesel regulation requires bulldozers, airport baggage trucks and ski resort snowcats to begin reducing emissions from their fleets in 2010. The rule phases in the regulation through 2020 for fleets of large vehicles. The budget proposal would delay the initial phase-in requirements, requiring fewer vehicles to comply in the early years.
– Exempts environmental reviews for selling surplus state property.
– A state grant program offers funding to companies that take steps to reduce harmful emissions from their vehicles before state air pollution requirements go into effect. The budget proposal would allow farmers to access that money even if the requirement has already taken effect.
– Exempts some rural communities from paying prevailing wage on public work projects.

© Copyright 2007 Union-Tribune Publishing Co. • A Copley Newspaper Site

What’s happening with the state budget?

As the state begins withholding $3.5 billion in state payments, much of it owed to nonprofits, here’s resources that can help you stay informed:

• Go to the State Controller website for details on payment delays for state contracts and grants.
• Go to the California Department of Finance website for a list of suspended environmental, community center, school and other public works projects.
• Go to California Budget Project and Office of the Legislative Analyst website for alternatives to the governor’s budget proposals that provide better support for services while still moving the state closer to fiscal solvency.
• Go to California Forward website for long-term fixes to California’s governance and fiscal problems.

New Charity Bingo Laws

The California Gambling Control Commission has posted updated FAQs on implementation of the changes in charity bingo laws that took effect on January 1. The update clarifies that mitigation payments to nonprofits that are no longer allowed to operate eletronic bingo are NOT a loan and do NOT need to be repaid. Click here (PDF) to view the document.

SB 1369 was co-sponsored by CAN, which makes major changes in California law regarding charity bingo.

For further information, including forms and regulations, visit http://www.cgcc.ca.gov/bingo.asp