How could sequestration affect your nonprofit? Colorado Nonprofit Association is a member of the National Council of Nonprofits who is collecting stories about the effects of sequestration on nonprofits throughout the nation.
Click here to view the National Council of Nonprofits’ information about sequestration’s impact on the nonprofit sector including a sequestration infographic.
Click here to share information on what these reductions in federal spending mean for your nonprofit and the people you serve.
Colorado Stories on Sequestration
Federal: The IRS recently announced that sequestration could increase health care costs for some employers. This is due to an 8.7 percent reduction in the amount of the small employer health credit available to small businesses and nonprofits.
Click here to find out more about the small employer health credit.
Click here for an article from Forbes about the cut.
Statewide: The sequester would affect, among others, the people who maintain Fort Carson; breast-feeding and nutritional support for poor mothers; immigration and border control; and the hours national parks are open. Almost 4,000 fewer Colorado special-education students would receive support, 700 Colorado kids would lose access to school-readiness programs, and more than 100 teachers funded by Title I money could lose their jobs.
Statewide: The largest impact sequestration will have on Colorado will be in our local municipalities, all the federal funds that come to the state and then we ship them out and they affect people locally.
Statewide: Sequestration will pare millions of dollars from Colorado Medicare payments, medical research, pure lab science and doctor education in coming months, local health officials said Friday. As a result, there could eventually be longer waiting times for elderly hospital patients, fewer childhood vaccinations, and roadblocks for groundbreaking research proposals. State substance-abuse programs will lose $1.3 million. The Colorado Hospital Association estimates a loss of $35 million at state hospitals in the first year if cuts remain.
Statewide: Federal health and medical research could be cut 5 percent, from $59 million in annual spending at the University of Colorado at Boulder and $211 million at the CU Denver and CU Anschutz campuses.
Statewide: Around 1,170 fewer low income students in Colorado would receive aid to help them finance the costs of college and around 430 fewer students will get work-study jobs that help them pay for college. Head Start and Early Head Start services would be eliminated for approximately 700 children in Colorado, reducing access to critical early education.
Statewide: Colorado will also see funding cuts in: law enforcement and public safety funds for crime prevention and prosecution, job search assistance to help those in Colorado find employment and training, child care, and the STOP Violence Against Women Program.
Statewide: Federally funded job training and search assistance programs that helped 9,579 Colorado citizens, including lower-income youth, will take a ten percent budget cut because of sequestration next year.
Statewide: State health officials will offer 5,300 fewer HIV tests thanks to the sequester, which could potentially shift those who would have been tested by the state into the arms of local nonprofits.
Denver: According to the Denver Post, Mi Casa Resource Center reported losing 10 percent of its federal funding due to sequestration. Mi Casa helps Latino families- particularly Latinas- with business and entrepreneurial skills. The organization assisted 650 businesses, from food trucks to cleaning services, that generated over $10 million in revenue in 2012.
Denver: Cuts to medical education programs mean fewer interns and residents to help reduce waiting times for underserved populations at state hospitals’ emergency rooms.
Denver: 4,000 fewer Colorado students enrolled in special education programs would receive support, 700 young children would be denied access to school-readiness programs, and up to 100 teachers could be laid off due to sequestration.
Lakewood: The Hospice of John experienced a $250,000 cut of federal funding. Combined with other funding challenges, it announced its closure in July 2013 after 35 years of community service.
Brighton: The Metropolitan Denver Homeless Initiative, a local nonprofit, fears that cuts of $16 million in U.S. Dept. of Housing and Urban Development assistance under the sequester will adversely affect its ability to provide services, despite counting more homeless citizens this year than ever before.
Colorado Springs: Faced with sequestration cuts meaning the loss of 142 Head Start slots, the nonprofit Community Partnership for Childhood Development began raising funds privately by selling hand-decorated preschool chairs to make up the gap. They currently have raised enough to reinstate six spots.
Since the Supercommittee did not reach agreement on a plan to reduce the annual deficit, the 2011 Budget Control Act requires that Congress reduce mandatory, defense, and non-defense discretionary spending by $1.2 trillion over ten years. The first $110 billion of annual cuts is scheduled to take place in the 2013 fiscal year.
In Dec. 2012, the passage of H.R. 8 delayed these automatic spending reductions – also known as “sequesters” – until March 1, 2013. Click here for more detail on H.R. 8 and the January fiscal cliff deal.
As of March 1, 2013, Congress failed to adopt a policy to replace sequestration with a different plan for budget reduction.
In February 2013, The Washington Post developed a state by state website of key cuts due to sequestration. Click here to view the website.
In Fall 2012, the White House released a report of anticipated spending cuts due to sequestration. Click here to view the Fall 2012 White House report.
Based on an initial review of the 2o12 White House report, cuts to a number of the federal programs listed could also affect nonprofits’ federal grants and contracts. Also, many programs that serve nonprofits’ clients could be impacted, such as the following few examples:
– National Institutes of Health
– Homeless assistance grants
– Federal student aid
– Veterans employment and training
– Children and family services programs
– Disaster relief
– Low-income home energy assistance
– National Endowment for the Arts grants
– National Endowment for the Humanities grants
Click here to view a larger list of program cuts that could affect nonprofits.
The Colorado Fiscal Policy Institute released a detailed analysis of sequestration cuts, how they affect Coloradans, as well as a listing of spending exempted from sequestration.
JVA Consulting released a report in November 2012 outlining the impact of the fiscal cliff on nonprofits.