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March 3, 20100; RJG.com | The economy has put the public sector and nonprofits into a joint spiral. In most states and localities, K-12 education funding is being whacked by rolling budget cuts, only partially allayed by Department of Education stimulus dollars. So public schools (and public school teachers) are turning to nonprofits for help in purchasing books and supplies. But nonprofits that raise money to support teachers’ and schools’ requests are also hurting for dollars. In Nevada, thee nonprofits—the Education Alliance and the Assistance League of Reno-Sparks, among others—report declining charitable donations and increasing levels of teacher requests. Many suburban districts are setting up local education foundations to supplement the resources available in their local schools. But for many school districts in poorer inner city and rural communities, the economy has undermined the ability of these nonprofits to attract new contributions. The crisis in state budgets is hitting a financial wall or cliff that will not be filled by nonprofits dependent on dwindling charitable and philanthropic donations.—Rick Cohen