January 15, 2009
Economic-Stimulus Package to Help Nonprofit Groups Meet Social Needs
By Suzanne Perry
Washington
Note: The Chronicle originally reported that the House proposed money for YouthBuild USA, a nonprofit group in Somerville, Mass. In fact, the money would go to YouthBuild, a program operated by the U.S. Labor Department that provides grants to groups that train low-income young people in construction skills. YouthBuild USA supports the federal program—for example by offering training, setting quality standards, and raising private money—but will not directly receive any stimulus money. This item has been corrected to omit the error.
House Democrats unveiled an economic-stimulus package today that proposes billions of dollars in spending on Medicaid and other federal programs that will help nonprofit groups in cash-strapped states meet spiking demand for social services.
It also proposes spending $200-million to allow AmeriCorps, the national-service program, to expand by 16,000 members to help vulnerable people during the recession, and $50-million to allow the National Endowment for the Arts to provide grants to struggling arts groups.
It would also grant $50-million to YouthBuild, a federal program that provides grants to groups to train low-income young people in construction skills.
The package, the “American Recovery and Reinvestment Bill of 2009,” calls for $825-billion in tax cuts and spending in areas including clean energy, education, health care, and road and bridge projects. President-elect Obama endorsed the measures, saying in a statement that they would save or create 3 million jobs and offer a “significant down payment on our most significant challenges.”
Many nonprofit leaders and experts have proposed that the stimulus package include billions of dollars of spending to help charities both weather the recession and put people to work solving the country’s problems.
More than 1,000 people signed a letter asking Mr. Obama and Congress to greatly expand the country’s national-service programs and create 175,000 new jobs over two years.
It also asked for a “nonprofit stimulus fund” to distribute government and private money to innovative nonprofit groups. Mr. Obama endorsed both of those ideas on the campaign trail.
Money to the States
This package does not take up those ideas, although many of the measures to bolster the social safety net and state finances would trickle down to charities that rely on government revenue. The proposed new spending includes:
- $87-billion to temporarily increase the federal portion of Medicaid, the health program for poor people that is managed by the states. This will help states that are experiencing deep budget shortfalls as tax revenues fall. (See The Chronicle’s story on state budget woes.)
- $2.1-billion to Head Start, the early-education program, to allow it to serve 110,000 additional children and create 50,000 jobs.
- $1-billion for Community Services Block Grants, which help states provide social services to low-income residents, and $1-billion for Community Development Block Grants, which helps them provide housing and antipoverty projects.
- $1-billion for Child Care and Development Block Grants, which help states provide child-care services to low-income families.
- $1-billion to the Low-Income Home Energy Assistance Program, which provides money to states to help low-income families pay for heat and air conditioning.
- $1-billion to help community health centers renovate their facilities, and $500-million to help them provide care to uninsured and underinsured patients.
- $120-million to the Community Service Employment for Older Americans program, which would allow charities and other groups to add 24,000 participants. The program pays low-income older people to take part-time community-service jobs.
- $100-million to the Compassion Capital Fund, which provides grants to religious and other charities to provide social services. The money would be directed to groups that provide job training, energy conservation, and other services for low-income families.
The package also includes new money for food stamps and jobless benefits. Mr. Obama is scheduled on Friday to discuss the proposals — which must now be considered by several House committees — while he is visiting a wind-turbine plant in Bedford Heights, Ohio.
See the House Appropriations Committee Web site for more details.
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I’m glad to see that there is attention being given to the social service programs that are important, but very disappointed to find that the arts are still not on anyone’s radar. We need to keep the creative spirit, which drives so much of our development in business, technology and entertainment, alive and thriving. The arts programs that are in our schools and communities are suffering to the point that many, if not most, will not be able to survive.We need to find a way to help them too, as soon as possible.
Rona
NYC
— Rona Jan 16, 02:02 PM #
Great. So now government in addition to forcing us to contribute to charity through stiff taxes is bailing out charities. It’s a welfare fest.
— Bill Bailey Jan 16, 02:24 PM #
Well, that’s what the new President preached – bigger government choosing your social capital. This shouldn’t be a surprise to anyone. This is a governmenet that beleives we are too dumb to choose social causes to support – so they tax us and make the decision on our behalf.
— Michele Jan 16, 02:47 PM #
Someone tell me again how all these new welfare programs are supposed to create REAL jobs and stimulate economic growth. Michele is absolutely right—this should come as no surprise to anyone.
— Jim Jan 16, 03:07 PM #
…as opposed to the incredibly well-compensated REAL jobs pushing unsecured “securities” on poor old dumb-as-a-box-of-rocks “we?” At least taxation for the make-work jobs has a quantifiable effect on the financial system instead of creating another black hole of a money pit like “we” created by our choices. And they put food on the table.
— Jim H Jan 16, 03:59 PM #
Force you to give (tax), then decide on your behalf which charities to support. You have to pay, but you get no say. Didn’t the United Way already invent this?
— The Untied Way Jan 19, 04:49 PM #
Just what we need. More governmental involvement and reallocation of wealth, more patronage to be dispensed at the community level, usually with no accountability, and heavy influence by local politicians who time and again have proven themselves to be blatantly corrupt. You don’t need government to facilitate genuine charitable endeavors. DeToqueville’s observations are part of America’s philanthropic legacy, but our leaders have astoundingly learned nothing from them.
I am sick to death of my colleagues in the third sector who are hooked on feeding at the public trough.
— Jeff Steele Jan 19, 06:54 PM #
This is a positive approach towards Development.
— E.Gopalakrishnan Jan 20, 02:29 AM #
Why not let the people decide where the money goes. Sites like Kiva.org and buzzfund.com put the allocation power int he hands of the donor.
— 4students Jan 20, 12:05 PM #
I totally agree with Jeff Steele. All we need is more government spending. What happens when the jobs are gone and there is nobody to tax or to make individual contributions. It’s a sad state of affairs.
— Sharon Jan 20, 06:40 PM #
In response to: “You don’t need government to facilitate genuine charitable endeavors.” I sincerely want to believe this, but I can only to a point, especially when you consider that “genuine charitable endeavors” and “genuine need charitable endeavors” are two separate issues. There are many people who cannot actively advocate or bring attention to themselves in a manner that allows other individuals to know how or what they are in need of. Many of these people who so desperately need this funding require large amounts of money at regular intervals. I have heard your argument as stated above time and time again, and I wonder how these two issues can be resolved. I do not think it comes in terms of just black and white. There simply are people, such as children, those with disabilities, those on Social Security, and the elderly or sick who are in need of this money, and the only way to make that happen is to have a reliable pool in which to draw from, which is often not the case in fundraising. I also realize that in some circumstances, government money may be used in a “corrupt” way, but in most it is not. It is not simply “welfare,” but valuing life that is the issue here. There must be reform, especially in the area of accountability, but not abandonment. Thanks for your thoughts.
— Nichole Jan 20, 09:03 PM #
A major stimulus package is overdue. The package needs to consists of job creation, investing in small business, new technologies and education. Those who argue that the stimulus package entails too much spending that will lead to greater debt for this nation are not being honest with himself or herself. Where have you been for the last 25 years.
— sol_kal760 Jan 23, 04:40 PM #
I hear people complaining that, because of this stimulus package, they’re no longer able to “choose” which charities to donate to. My question is, how many of you actually donate any substantial amount to them — honestly? If you’re like me, you don’t have a lot left over after bills and, what little there is, needs to be saved or used for something else. I think we’ve done this to ourselves — put ourselves in a position where we now “have” to donate in order to keep these worth-while organizations afloat. Unless you’ve been on the receiving end of these organizations, it probably is hard to understand it — and I hope you never have to.
— Linnie B. Jan 29, 02:54 PM #
Now that the states have gone broke sponsoring social programs they expect the Feds to keep them going. Time to get off of the dole and into work ethics. Clinton had it right when he limited time on the dole and got people back on track -working and being responsible.
— Charlotte K. Feb 6, 04:58 PM #