California Charities Facing Economic Pinch

The Chronicle of Philanthropy reports that “California charities that depend on state money to survive are facing a mixture of confusion and fear after Gov. Arnold Schwarzenegger declared a fiscal emergency and the state said it would start paying many of its bills with IOU’s.

While charities are used to California’s regular budget impasses, the magnitude of the state’s deficit — more than $26-billion — and the drawn-out battle between Democrats and Republicans on how to plug it have created an especially tense environment.”

The Chronicle interviewed nonprofit insiders for the article, including Cynthia Carmona, a policy specialist at a community clinic association based in Los Angeles.  Ms. Carmona said, “Everyone has resigned themselves to that fact,” . . .  and “[t]his year is the worst we’ve ever seen it.”

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AMT