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/