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WILKES-BARRE — Following the passage of the state budget this month, area nonprofits seem to be able to breath a bit easier for now, but their leaders continue to remain concerned for the future.
Ron Evans, executive director of Wyoming Valley Catholic Social Services, said the organization is in good financial shape, having continued to provide services without interruption despite the budget impasse.
He credits Luzerne County with fiscal policy that provided continued funds during the stalemate of the state budget.
And yet, as the drafting of the 2017 looms, Evans said he’s already getting anxious.
“We need some kind of mechanism that will ensure the passage of the state budget in a timely way,” he said. “Perhaps legislation could be enacted that would ensure that.”
Bipartisanship slows process
Evans said he believes posturing by politicians on both sides of the aisle has been done on the backs of those most at risk.
“Always in jeopardy are programs that serve children, the elderly and veterans,” he said.
With a $1.5 million line of credit, the agency has been able to continue to provide a multitude of social services.
Still, Evans said, interest paid on funds drawn from that line are funds not available to better the lives of those the organization serves.
Evans said he doesn’t fault Gov. Tom Wolf for the continued challenges faced by nonprofits.
“This has happened again and again under different governors,” he said. “It’s the system that needs to be fixed.”
Evans said the organization, with a $12 million budget, gets its funding from a variety of sources, including Luzerne County, Housing and Urban Development and the Department of Health and Human Services.
“Because we’re so big, we’re able to absorb some these challenges,” he said. “But still, again and again, we feel that continuing funding is threatened. This has to stop.”
Zimmerman emphasizes need for funds
Michael Zimmerman, chief executive officer of Family Service Association NEPA, agrees with Evans.
Although it continued to operate with all of its programs intact because funds were released to the organization during the stalemate, Zimmerman said there is still continuing organizational anxiety about the future.
Zimmerman said the organization did need to utilize its line of credit during the stalemate, with interest accruing as a result.
And although this year that interest was only $8,200, he said that was money that could be spent on programs that help people.
Zimmerman, like Evans, doesn’t blame Gov. Tom Wolf, but a bipartisan system that frequently breaks down.
Wolf, he said, wanted to restore the Corbett-era cuts to the county-run human services fund, but has been thwarted by the legislature.
Zimmerman emphasized that a non-profit organization, no matter how laudable their goals are, only work if they are funded. He said thinks there’s lack of understanding of the need for funding of nonprofits and not-for-profits.
“The needs are enormous and the funding is simply not there,” he said. “We need to change the way we think about nonprofit programs.”
CEO director looks to the future
Gene Brady, executive director of the Commission on Economic Opportunity, said that despite some challenges, its programs were up and running despite the budget impasse.
Still, it’s not an experience he’s eager to repeat. “This can’t happen again next year. I hope the legislature has learned something,” he said.
With a budget of $16 million, Brady said about $5 million of that is affected by the state budget.
Although federal monies with a delayed “pass through” are certainly challenging to the organization, Brady said money that comes directly from the state evokes the most anxiety.
“Before finalization of the budget, we were, in effect, spending money that weren’t sure that we had,” he said.
The organization’s motto, “People Helping People,” emphasizes the importance of the funds that maintain its programs, which include a food pantry, veterans assistance, and housing assistance.
“We’re dealing with people that really need help,” he said.
Its annual budget, with revenues from multiple public and private funding sources, exceeds $18 million.
United Way leadership chimes in
United Way’s executive director Bill Jones said the financial challenges of nonprofits are sizable, and budget delays make the task of helping the homeless, feeding the hungry and equipping young people increasingly complex.
“Nonprofits need to raise money, use it efficiently, and remain accountable to those they serve,” Jones said in a phone interview.
Jones, whose organization partners with many nonprofits, said funding for those entities is multi-faceted and complex.
With many funding sources looking for outcomes, those outcomes are often not measurable in the short term.
“We’re not going to change things in one funding cycle,” Jones said. “For example, generational poverty is not going away overnight.”
Despite the unpleasant financial realities facing nonprofits, he said he’s still ever mindful of what he described as the bigger picture.
“We’re trying to help families build better lives in the long term,” he said.