Public Money Coming Slower, and in Smaller Amounts

Nonprofits are experiencing delays in public funding as a number of states struggle to approve budget plans in the face of massive revenue shortfalls, the Wall Street Journal reported Aug. 31.

States currently owe nonprofits $15 billion in back payments, according to Independent Sector. Payments from states like Rhode Island, Pennsylvania and Connecticut have been delayed because lawmakers failed to pass budgets on time, while other states — like New York, California, and Colorado — have slashed funding to nonprofits because of budget problems.

The total state budget shortfall for 2010 is about $165 billion, according to the Center on Budget and Policy Priorities. Independent Sector has called on the Obama administration to help address the shortfall by giving nonprofits money directly from the Troubled Asset Relief Program.