State budget impasse forced nonprofits to borrow $172 million

Written by Ben Allen, General Assignment Reporter | May 31, 2016 4:46 AM

The Pennsylvania Capitol building is shown Wednesday, Oct. 7, 2015, in Harrisburg, Pa. Gov. Tom Wolf's tax proposal is being debated in the state House of Representatives in the first-term Democrat's effort to break Pennsylvania's 3-month-old budget impasse. (AP Photo/Matt Rourke)

(Harrisburg) -- The fallout from the now-resolved state budget impasse is becoming more clear.

The Pennsylvania Association of Nonprofit Organizations surveyed 176 nonprofits across the state.

22 had to stop providing services to the most vulnerable in the commonwealth.

18% of those surveyed also took a hit to their credit.

Nearly 400 employees lost their job, their benefits, or saw their hours cut.

And borrowing costs run above a $500,000.

"So that we don't lose sight of the fact that nonprofits will be working for a number of months or years to pay off that interest or to rebuild the credit that was lost," says Anne Gingerich, executive director of PANO.

Gingerich says since less than a quarter of the nonprofits in the association responded to the survey, the impact of the budget impasse is much, much larger.

She hopes the report shows the damage political leaders in the state did to nonprofits by failing to reach a deal for nine months.

More than 17,000 people didn't get services because of impasse.

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