In the face of yet another year of multi-billion dollar budget shortfalls in most states, governors and state legislatures are facing the same sorts of decisions that, unfortunately, challenge many nonprofits. Here in Washington, for example, the Governor has proposed that the state:
- Consolidate scores of boards and commissions,
- Consolidate several departments with similar missions,
- Cut a number of programs, including many that provide vital services, and
- Raise fees for services in many departments such as colleges and universities.
This is only a partial list of the draconian changes needed to balance Washington State’s budget for 2011-2012. Yet it serves as a strong reminder of the sorts of difficult choices facing nonprofit leaders. Leaders in all sectors are making decisions that are emotionally gut-wrenching. Governor Gregoire’s voice shook with emotion as she unveiled her proposed budget. “I hate my budget,” she said. These tough decisions are a sign of our times. They put both government and nonprofits in the uncomfortable position of delving deep into the question of priorities. Said one Washington legislator: “It’s going be very hard for members to cut programs they helped to create.”
These are precisely the sort of tough decisions that all too often nonprofit leaders put off, running down reserves and hoping for a better year next year. There is a lesson to be learned here from state governments that are constitutionally mandated to balance their budgets. For nonprofit leaders, it’s a reminder to have the courage to make those tough decisions – they may well be what helps your organization survive.
All the best,
Jan
