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Human Service Chamber and local providers warn of fiscal cliff for nonprofits; urge local funding and coordination
Summary
Michael Corey of the Human Service Chamber told council nonprofits face rising demand, loss of ARPA and other federal supports, workforce shortages and looming state reductions; multiple witnesses at the hearing urged new local funding sources and coordination to prevent closures and service reductions.
The Human Service Chamber of Franklin County and a broad set of nonprofit speakers told the committee that demand for services is rising while pandemic‑era funding and other supports are receding, creating a fiscal squeeze across the sector.
Michael Corey, executive director of the Human Service Chamber, said in a wide‑ranging address that nonprofits reported increased demand, a tight workforce market and looming funding reductions that could force mergers or closures. “It is a little bit more so, as we go into this year, and we'll get into that as well,” Corey said, noting that organizations reported supply‑demand strains and the end of American Rescue Plan Act funding.
Why it matters: Corey and several nonprofit leaders said the loss of federal pandemic dollars and state funding reductions (for example, projected reductions in HEAP funds and threat of Medicaid work requirements) will push more people to seek local services while reducing the resources nonprofits and local agencies can use to respond. Corey warned that “fewer people [will be] getting help that need it,” and urged local partners—city, county, hospitals, philanthropy—to “step up.”
Voices from the sector: Representatives from a range of providers testified in public comment and during invited testimony. Examples included: - LifeCare Alliance (Chuck Gehring) warning of Meals on Wheels deficits and that federal Title III Older Americans Act funding will be consumed early in the year. - Huckleberry House (Carol, director of advancement) and Youth Over Us (Mike Dean) described rising youth mental‑health demand and youth homelessness needs. - Community behavioral‑health groups such as Mary Haven described crisis and stabilization work and flagged declining philanthropic and state supports. - Habitat for Humanity noted the explosion of homeowner applications and rising construction costs that limit how many homes the nonprofit can build.
Council response and next steps: Committee members acknowledged the pressures and said the city must pursue local innovations and new funding sources; several council members urged collaboration on a joint city‑county‑philanthropy approach to prevent service gaps.
Ending: Corey and providers urged swift local action and more coordinated investments to prevent nonprofit closures and service disruptions as demand rises and federal supports wane.
