Sign up for NPQ's FREE e-newsletters
Follow @npquarterly on Twitter! Follow NPQ Friend NPQ on Facebook! Friend NPQ LinkedIn Linked In Grab the RSS Feed

Web User Login              | 

The State We're In

States are still neck deep in economic crisis, and the federal stimulus money will soon run out.

 

USABack in January on our Web site and in our winter 2009 issue of Nonprofit Quarterly, we profiled fiscal and economic conditions in 14 states from Arizona and California to Pennsylvania and South Carolina. Now we’re proud to introduce our second installment to this ongoing series covering seven new states—Georgia, Hawaii, Massachusetts, Maryland, Minnesota, Nebraska and Oregon.

The recession may be over, but states will continue to face high unemployment and lower revenues well into the next decade. The good news is that state economic forecasts over the past two years have been consistent. The bad news is they’ve been consistently bad. This article published with permission from The February 2010 issue of State Legislatures, the magazine of the National Conference of State Legislatures, sets the stage for our series, The State We're In, which describes state by state the extreme challenges facing the sector nation-wide.

The daily news reports of state government budget impasses, deficits, and cuts hit nonprofits right where it hurts: that is, in their ability to deliver on the programs and services relied on by their constituents and communities across the nation.

The longest, deepest economic downturn since the Great Depression brings a cruel irony. Just as people’s needs increase dramatically, the money states have to pay to meet these needs plummets. Even vastly reduced state budgets have slipped out of balance; so what’s the remedy?