• Jane Arsenault

    The new normal is the scenario you describe. Almost 2/3’s of all states have substantial operating deficits that are projected to continue for at least the next two fiscal years. While the stimulus funding provided a brief respite, the real contraction will take place over the next two years, and it will be painful, particularly for health and human services. The sector has already undertaken the “easy” outs: cutting salaries and benefits, dropping programs, raising eligibility for services, creating waiting lists, spending down reserves,etc. as reported by the recent Urban Institute study: Human Service Nonprofits and Government Collaboration: Findings from the 2010 National Survey of Nonprofit Government Contracting and Grants. Most of our clients are preparing for substantial changes in how they operate..smaller, leaner organizations, a variety of strategic partnerships, altered administrative structures, some mergers, though not as many as one might think… at least not yet.