Nonprofits go into debt without state funds

It’s been more than two weeks since legislative leaders and Governor Ed Rendell announced a breakthrough agreement to end Pennsylvania’s more than three-month old budget impasse. In the meantime, nonprofits and social service providers continue to layoff workers and take on more debt.

It’s been more than two weeks since legislative leaders and Governor Ed Rendell announced a breakthrough agreement to end Pennsylvania’s more than three-month old budget impasse. Yet as of today, no deal has been approved. In the meantime, nonprofits and social service providers continue to layoff workers and take on more debt.

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[audio: 091005spbudget.mp3]

Three weeks ago, the workers at Avenue Childcare in south Philadelphia were pooling their resources to buy food. They had not been paid since July. Today, they still have not been paid, and are holding beef and beer fundraisers to keep the daycare center open. The parents of 54 out of 57 kids at the center rely on state subsidies, which are on hold as long as the state has no budget.

Nicole Regalbuoto helps run the center with her mother.

Regalbuoto: Angry, upset, sad, heartbroken. Very frustrated especially when I heard on Saturday that the budget was falling through.

Regalbuoto says some utility companies have given workers a break on paying bills when they explain they are victims of the state budget impasse. But she says she won’t be able to keep the center open for long. At least five daycare centers across the city have closed because of the budget stalemate.