July 22, 2009 | Read Time: 1 minute
While California lawmakers reached an agreement this week to close the state’s $26-billion budget gap, some legislators want foundations to support social services facing the ax — a suggestion that makes nonprofit leaders balk.
According to a New York Times article, the state’s health-insurance program for children was cut by $144-million, and some lawmakers hope that grant makers will make up the balance.
On her blog, Lucy Bernholz, a foundation consultant in San Francisco, writes that she nearly spit out her coffee when she read the article.
“How can we expect to run a state on hope?” she asks. “For all the important opportunities there are for public-problem solvers, private corporations, philanthropists, and social entrepreneurs to work together to address our shared challenges, what kind of democracy depends on philanthropy?”
Daniel Zingale, senior vice president of the California Endowment, a foundation in Los Angeles, agrees. In a Chronicle article about how state budget gaps are hurting charity efforts, Mr. Zingale says, “The first response for some of the foundations is to try to backfill the gutting of the safety net.” But with California’s massive deficit, “we couldn’t sustain that safety net for more than a few minutes.”
Instead, the endowment has awarded $750,000 to California Forward, which is pushing for changes in the state’s tax system and other measures to improve the way the state is governed.
What do you think? How should foundations react to state budget shortfalls?
