honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Sunday, April 27, 2008

Grants cutbacks strain nonprofits

By Dan Nakaso and Rob Perez
Advertiser Staff Writers

Hawaii news photo - The Honolulu Advertiser

Toy Arre

spacer spacer

Slowing economic growth and tight budgets convinced state lawmakers to deny requests for more than $46 million in grants-in-aid from nearly 140 nonprofit groups.

Last year, nonprofits received around $10 million for similar requests. This year they were given almost nothing, forcing some to consider cutting programs, staff or both.

"We are of course disappointed that they're not going to fund any of these requests," said Toy Arre, president of the Filipino Community Center, which had asked for grants to help immigrants pass their citizenship tests, prepare nursing school graduates for their professional nursing exams and provide activities for 280 senior citizens.

"It means we won't have any of these programs in 2009," Arre said.

State lawmakers did approve grants for construction projects during the legislative session, which ends on Thursday, but no money for ongoing operations.

In addition to being turned down for new grants during this session, some nonprofits have not received the money they were awarded last year.

The Filipino Community Center, for example, said the $250,000 grants it was given last year by the Legislature ended up being cut in half by Gov. Linda Lingle.

Lingle announced last year that previously approved grants-in-aid would be delayed until the Council on Revenues gave a clearer picture on Hawai'i's economy. But she did release money for some programs, particularly those related to health and safety, Lingle spokesman Russell Pang said.

This year, Lingle has released some additional money for grants-in-aid, and she continues to review other programs, Pang said.

FEELING THE IMPACT

Five thousand-plus nonprofit organizations in Hawai'i generate more than $2 billion in revenue, employ more than 41,000 people and pay wages topping $1 billion.

Some organizations said they may have to cut staff and programs because of the lack of new state grants.

"There's no doubt it's going to have a big impact on services provided by nonprofits," said Kathy Tirrell, vice president of operations for Parents and Children Together, a social services provider.

Parents and Children Together has a budget of roughly $21 million annually and Tirrell worried it could take a hit of $2 million to $2.5 million.

PACT, which employs close to 400 people, may have to lay off workers or cut services, Tirrell said.

"It's a very serious thing," she said. "Hopefully, it won't decimate whole programs or agencies."

The Hawaii High School Athletic Association applied for $300,000 in grants-in-aid funds this year. But its executive director, Keith Amemiya, said it was unclear how much, if anything, the organization will get.

The association uses the state grant money to fund high school sports tournaments.

Amemiya recently got word from Lingle that the association would receive the $150,000 grant approved in 2007 by the Legislature.

"I've been told we're one of the lucky few," Amemiya said.

SYMPHONY LEFT OUT

The Honolulu Symphony isn't among the lucky.

The symphony, which has been plagued by debt, asked for $810,000 but will get nothing.

It's too early to say how the symphony will cope, said spokeswoman Kristin Jackson. But she stressed that the organization will continue to pursue other fundraising.

Last year, the Legislature approved a $75,000 grant for the symphony but none of the money has been released yet, Jackson said.

"We're obviously disappointed," she said, "and we're just trying to regroup at this point on where we go from here."

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com and Rob Perez at rperez@honoluluadvertiser.com.