Connecticut Fiscal Challenges Reflect National Trends

Thank you, National Council of Nonprofits for sharing:

Virtually all segments of the nonprofit community in Connecticut are dealing with policy challenges that have been, or likely will be, seen elsewhere in the country because of budget deficits and misunderstanding about how the sector operates. Connecticut policymakers are struggling to close state budget deficits of $266 million in the current fiscal year, which ends in three months, and nearly $900 million next year. The state recently rescinded (cancelled) almost $78 million of previously appropriated funds, slashing funding for many services provided by community nonprofits.

 

Legislators are also looking at taxing institutions of higher education by requiring those with property worth more than $2 billion to pay property taxes on parcels that generate revenue of more than $6,000 from admissions to student sporting and entertainment events, rent charged, and goods produced. Legislators are targeting Yale University with legislation that would require it to pay unrelated business income taxes on increases tohigher education endowments that exceed $10 billion. The tax would be levied on the amount of endowment growth year-to-year after mission-related expenses are deducted.

 

Finally, the state capital of Hartford reportedly is near bankruptcy with revenues only covering 70 percent of the annual budget. The Legislature is considering a bill that would create a commission with extraordinary powers to, among other things, negotiate with the largest nonprofit property owners in the city and then levy a tax on their property based on a percentage they would otherwise pay if not tax exempt.

The National Council of Nonprofits (Council of Nonprofits) is a trusted resource and advocate for America’s charitable nonprofits. Through our powerful network of State Associations and 25,000-plus members – the nation’s largest network of nonprofits – we serve as a central coordinator and mobilizer to help nonprofits achieve greater collective impact in local communities across the country. We identify emerging trends, share proven practices, and promote solutions that benefit charitable nonprofits and the communities they serve. 

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