Funder Role in Mitigating Impact of Human Service Budget Cuts
AGF's March Program
March 25, 2010
With tax revenue declining as a result of the recession and budget reserves largely drained, the vast majority of states are making spending cuts that hurt families and reduce necessary services. These cuts, in turn, will make the recession worse because families and businesses have less to spend in their local economies. Federal recovery act dollars greatly reduced the extent, severity, and economic impact of these cuts in 2009, but are an unlikely resource for 2010 and beyond.
Arizona is facing one of the most severe budget crises in the nation with many human service programs taking big hits. For example:
* Nearly 10,000 working parents in Arizona lost health care coverage that they received through KidsCare, the state’s CHIP program, due to a lack of funding for the parental component of the program.
* The state also reduced its Medicaid rolls by requiring some adult beneficiaries to reapply for benefits more frequently.
* The State reduced TANF cash assistance grants for 38,500 low-income families, eliminating substance abuse services for 1,400 parents and guardians, and decreasing homeless shelter capacity by 1,100 individuals.
* The state also stopped accepting new families in its child care assistance program in February 2009, thereby denying assistance to at least 10,000 children.
Proposed cuts in the 2010 budget, if adopted, will result in even more severe impacts to Arizona’s most vulnerable citizens. Many funders are wondering what funders can/should do to mitigate the impact of these budget cuts. Some are exploring what role they might play in encouraging the generation of additional revenues. In this session, our panel members conveyed the full extent of the crisis and shared thoughts about the role funders can play.
Panel Members:
° Jacky Alling, V.P., Arizona Community Foundation, Moderator
° Steve Alley, CEO, Community Foundation of Southern Arizona
° Judy Mohraz, CEO, Piper Charitable Trust
° Dana Naimark, CEO, Children’s Action Alliance
° Merl Waschler, CEO, Valley of the Sun United Way
Thanks to the F2 Family Foundation for sponsoring this session.
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