The real-life impact of the budget impasse

The real-life impact of the budget impasse

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According to the study prepared by Pennsylvania Association of Nonprofit Organizations, along with Greater Pittsburgh Nonprofit Partnership and United Way of Pennsylvania, more than 17,000 Pennsylvanians served by 22 organizations received no services or reduced services throughout the budget standoff. Then there were 90 organizations that had to find ways to compensate for $80 million that was supposed to come from Harrisburg, but was delayed or never arrived.

There are other grim numbers in the report: More than $170 million was collectively borrowed by 135 organizations to keep the lights on during the budget debacle, with half of it coming from cash reserves, 39 percent borrowed from lines of credit or banks, and 8 percent of vendors were just not paid in time – cash they essentially “borrowed” from them.

For good measure, 45 of the organizations surveyed incurred more than $500,000 in interest they will have to pay back, 18 percent said their credit rating took a hit and 88 programs reduced their hours of service or closed entirely.

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