Wednesday, August 19, 2015

Gov. Wolf Calls For Budget To Include Interest Payments For Schools, Small Nonprofits

Gov. Tom Wolf Wednesday announced his support for an appropriation to be included in a final budget to reimburse school districts and small nonprofits for the interest payments incurred on loans as a result of the budget impasse.
The Commonwealth already provides reimbursement to qualified small businesses for interest when the Commonwealth does not pay an invoice for 45 days. The governor supports this being extended to school districts, similar to the reimbursement provided in the 2003 budget, and to small nonprofits.
“I understand the situation that school districts and human services agencies are experiencing as a result of the budget impasse, and that’s why I am proposing that any final budget include an appropriation to reimburse districts and small nonprofits for the interest payments incurred on loans as a result of the impasse,” said Gov. Wolf. “I am fighting to reach a final agreement on a comprehensive budget that restores funding for schools and human services agencies and I know the challenges that each have faced as a result of drastic cuts to funding over the past four years. That’s why my budget is a hugely important step in restoring these state funds.”
Under the governor’s proposal, a small nonprofit must be an independently owned and operated entity that employs 100 or fewer employees and cannot be a subsidiary or affiliate of either of a corporation or of a nonprofit that employs more than 100 people.
The small nonprofit organization must have a contract or grant either directly with the Commonwealth or with a county program that receives and passes through state grant funds to the non-profit (ex: a mental health program under contract with a grant to a county) and the state program funding must provide more than 50 percent of the nonprofit’s annual operating revenues.

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