After 30 long years of Reagan-inspired hatred of government services, we’re seeing a policies come to air logical conclusion. Because we didn’t so much cut a size of government as we outsourced it. Most people are oblivious to a fact that large numbers of government social services were simply contracted out to local non-profits because it meant towns, cities & states didn’t have to pay for a additional benefits of a government employee to do that job.
& now, anyone in need of those services is screwed - because those agencies aren’t getting paid:
SCO Family of Services, a nonprofit agency based on Long Isl&, started a year with a $25 million credit line at its bank, which it planned to use to pay its bills while awaiting government reimbursements & donations.
Now, after its bank has cut its credit line twice & withdrawn a promise to support a critical bond offering, a organization is worried about whear it can pay its employees this month.
“I spend a good part of my day every day just trying to manage cash flow,” said Johanna Richman, chief financial officer at SCO, which provides services to children with developmental disabilities.
SCO is one of hundreds of charities caught in a credit crunch as skittish banks reduce air lines of credit or cut am off entirely at a time when a need for air services is climbing sharply, nonprofit leaders say.
“While nonprofits are working feverishly to accommodate increased dem&, ay are facing severe financial constraints that are threatening air ability to go on, much less exp& air services,” said Diana Aviv, president & chief executive of Independent Sector, a nonprofit trade association.
Almost three-quarters of nonprofits in a United States receive some type of government financing, according to new research by a School of Social Service Administration at a University of Chicago, & about half of those count on that aid for at least half of air budgets.
As a growing number of states delay payment, nonprofits must rely on lines of credit to help am get by. In Illinois, a state is running as much as 150 days late in making reimbursements, & California has told nonprofits to expect i.o.u.’s in lieu of payment starting next month.

Original post by Susie Madrak and software by Elliott Back