Liza Andrews, public policy director of Connecticut Association of Nonprofits

It’s been a year unlike any in recent memory. Connecticut’s budget impasse effectively lasted nearly nine months. The debate kicked off in January 2009, with the state facing an $8 billion deficit over two years (FY 2010–FY 2011)—this with an annual budget of approximately $18 billion—and would not ultimately be settled until October 2009. Nonprofit executives and activists cannot recall the last time Connecticut had such a large deficit or the last time they encountered such difficulty agreeing on how to fix it. It was an excruciatingly long session filled with uncertainty and frustration.

In Connecticut, at least $2 billion is spent annually on health and human services provided by nonprofits on behalf of the state. During the course of the budget battle, nonprofits were subject to budget rescissions and deficit mitigation reductions for FY 2009. When the start of FY 2010 came and went on July 1 without a budget in place, nonprofits were then subject to the governor’s executive orders and reduced monthly budget allotments. Nonprofits’ payments decreased from 99 percent of their monthly contract amount to 40 percent and, in some cases, to 0 percent. And now that the budget has finally passed, our governor has already begun making budget rescissions to deal with a projected FY 2010 deficit between $388 million and $624 million.

Time and time again, nonprofit providers in Connecticut are asked to do more with less. Throughout the process, nonprofits that contract with the state have stood no chance of receiving a cost-of-living adjustment on their contracts for FY 2010 or FY 2011, even though the state did not give them one in 2009 either. As a result, nonprofits have been asked to provide services with the same amount of money they received the year prior even though inflation has increased the cost of providing these services significantly. And along with so many other states, as the economy fell deeper and deeper into recession, service demand shot up.

Unfortunately, increased demand with less funding has not been the only challenge facing nonprofits in Connecticut. The sinking economy caused a whole new group of consumers—the middle class—to appear. Families with advanced degrees living in the suburbs began seeking nonprofit services ranging from heating assistance to food stamps to mental health and addiction services. Nonprofit providers were not prepared for this level of demand.

But, as with any situation, challenges are what you make of them. Over the past year, nonprofits in Connecticut have shown their true strength and resilience. It was not easy;​ along the way, nonprofit directors had to make difficult decisions, from laying off staff to closing down programs. But through it all, they demonstrated true leadership. They worked with one another, forming new partnerships and collaborations that will result in better opportunities for those they serve. Nonprofits in Connecticut showed its residents what it means to be true to a mission, holding the safety and well-being of its communities above all else.

Nonprofits in Connecticut offer high-quality, efficient, and cost-effective services to residents at a great savings to taxpayers. Over the next year, as more difficult budget decisions are made, it will be critical for nonprofits to be more vocal about cost-effectiveness. We need to be a leading voice in advocating smart spending, showing that $1 spent on nonprofit services can save $2 down the line.

Nonprofits employ approximately 11 percent of Connecticut’s workforce, and we need to highlight our role as an employer for many residents. Nonprofits are not only a partner with the state in providing for the health and well-being of its citizens but also a vital contributor to Connecticut’s economy. We deserve to be recognized and treated as a significant economic force. Nonprofits are a part of the solution to Connecticut’s continued budget woes, and Connecticut Association of Nonprofits stands ready to ensure that the public and elected officials recognize the value of the nonprofit sector.

Liza Andrews is the public policy director of Connecticut Association of Nonprofits.