Guest Post: Texas Nonprofits Must Fight for Their Survival

Editor’s Note: Jason Sabo, senior vice president of public policy at United Ways of Texas, submitted the following post about the impact of a budget shortfall in Texas on nonprofit organizations.

Texas nonprofits are waking up fast to the potential impact of $27-billion in proposed cuts to critical state services for the coming two-year budget cycle. That’s a huge chunk of a $99-billion general-fund budget.

Facing an unprecedented budget shortfall—thanks to a $10-billion structural deficit, lower sales-tax collections, and the end of federal-stimulus money—state legislators have proposed massive cuts to all state agencies. If the preliminary budget numbers hold through the end of the session in late May, the state’s nonprofit infrastructure will be decimated.

In a recent speech to philanthropists, a foundation president asked which group of our state’s citizens was most vulnerable to deep and debilitating cuts. Is it children, seniors, or perhaps the disabled? My answer: Texans.

Texas has experienced budget shortfalls before. Nonprofits and their clients have felt the impact of previous cuts, but the majority of middle-class Texas voters did not. This year is different. No person, no community, and no nonprofit will escape unharmed.

Both legislative chambers have proposed eliminating discretionary grants for organizations providing support services to students and high-need school districts. Rates for doctors, dentists, and nursing homes supporting the poor and elderly would also be slashed past the breaking point. Gov. Rick Perry has proposed the wholesale elimination of the Texas Commission on the Arts and the Texas Historical Commission—crippling efforts to support arts and other cultural institutions. Demand for services will grow. The ability of organizations to meet these demands will decrease alongside dwindling public and private dollars.

Texas nonprofits are caught in the political crossfire of a horribly contentious budget debate. While polling clearly shows strong voter support for individual programs and issues, the public backs off when asked how to pay for the services they hold so dear. Because tax increases have been put far off the table by most political observers, nonprofit advocates have concentrated their fire on the state’s Rainy Day Fund, which tops out at about $9.5-billion.

Now is the moment for nonprofit organizations to step to the fore, not only to protect their own interests and survival but also to represent most effectively the people we purport to serve. If nonprofits are committed to the change articulated in their missions, they must put all timidity aside and engage the political game. The future they save very well could be their own.

Tell us what’s going on in your state. Contact Suzanne Perry to share your story.