An addendum to my previous post

Thanks, Lacey and Gwen, for suggesting I turn my post into an op-ed....fortunately for me, Scott Schnapp, Executive Director of MANP, has already tackled this. From today's Portland Press Herald:

Another view: Hospitals aren't the only nonprofits affected by LePage's budget plan

Givers and Takers

In chapter 3, Weil (2013) discusses the varying relationships between government, private sector and NGOs, and how this can impact the effectiveness of community practice. A thought that immediately came to mind for me to illustrate this point was the statement by Gov. LePage shortly after his reelection last November, in an interview with WCSH (2014):

“[Nonprofits] don’t pay their share,” said LePage. “They are takers, not givers.”

The basic theme of this particular interview was the governor’s belief that he had received a “mandate” from the voters, which made his statement particularly alarming to nonprofit leaders across Maine. And with good reason—to suggest that nonprofits do not contribute financially to their communities and the state is not only inflammatory but patently untrue. Here are a few statistics from the Maine Association of Nonprofits (MANP), which was quick to counter LePage’s remarks:

Nonprofits in Maine employ 1 out of every 7 workers, paying $3.6 billion in wages each year which generates over $200 million in personal income tax revenue for the state. These same organizations have a $10 billion annual impact to the state’s economy through employee wages, retail/wholesale sales, and contracted professional services. They collectively engage 350,000 volunteers in community service each year. (Maine Association of Nonprofits, 2015).

In the governor's budget proposal (LePage, 2015) it became clear that the largest nonprofits would, if he had his way, become the first targets of this "pay your share" approach; private nonprofits (except religious organizations) owning property with an assessed value of $500,000+ could be required to pay property tax. On paper, this looks like a windfall for places like Portland, Lewiston, Bangor, Brunswick and others, who could conceivably collect taxes from hospitals and private colleges. What this plan fails to acknowledge, as far as I can tell, is the fact that these entities, which have most likely not budgeted an extra million or so dollars to pay taxes they've never had to pay before, will be required to cut back on the services they provide and/or increase the costs to their consumers to make up the difference. It's true that Maine Medical Center and the 8 other Maine hospitals that are part of MaineHealth don't pay property tax--but together they provided nearly $40 million in charity care in 2013 alone, and absorbed another $38 million in bad debt from people unable to pay their bills (MaineHealth, 2013). Does this sound like taking without giving?

Aside from the economic impact, nonprofits provide countless, invaluable services to communities--from feeding and sheltering the most vulnerable to teaching job skills; providing safe, nurturing spaces for kids to be after school and during the summer; helping the elderly; supporting the arts; and so much more. Where government agencies are often slowed by bureaucratic red tape, politics and the legislative process, nonprofits can be more nimble in creating programs to address emerging needs in their communities. Also, nonprofits are more likely to have and/or seek relationships with people in the populations they serve, and to engage these folks in identifying the needs and imagining the possibilities, and empowering them to help implement the solutions. 

As I fumed over the Governor's words, I thought about the many people in our state who rely on the services provided by nonprofits and who are, as I'm learning, viewed as "unworthy" of support. For example, Hope Acts, a small nonprofit I helped start in 2012, provides services to people in recovery from addiction and asylum seekers who are starting new lives in Portland. These are two groups that have been repeatedly vilified as "takers," and yet my experience is that they have so much to give in return for a little support and human kindness. It may be difficult to quantify the economic impact of a few hundred former addicts who are getting their lives back on track thanks in part to having a nurturing community around them, or the tax revenue generated by an asylum seeker who had a safe, warm place to live until she finally received her work permit after a 180 (or more) day government-mandated wait---but I know our community benefits in tangible and intangible ways. I see it every day.

I really liked this graphic from MANP (2015), which illustrates how private businesses, government and nonprofits, working together, strengthen our state. I will be keeping an eye on this issue as the budget is debated by the Legislature--I hope you'll join me.

References:

LePage, P. (2015, January 9). 2016-17 State of Maine Biennial Budget Briefing. Retrieved on January 27, 2015 from http://www.maine.gov/budget/documents/2016-2017StateofMaineBiennialBudgetBriefing.pdf

Maine Association of Nonprofits (2015). Adding up impact: Maine nonprofits at work. Retrieved on January 28, 2015 from http://www.nonprofitmaine.org/wp-content/uploads/Adding-Up-Impact-2015-for-web.pdf

MaineHealth. (2013). 2013 Community benefit report. Retrieved on January 28, 2015 from http://www.mainehealth.org/workfiles/mh_about/MaineHealth2013CBR.pdf

WCSH (2014, November 6). Gov. LePage says voters gave him a mandate [video file]. Retrieved on January 27, 2015 from: http://www.wcsh6.com/story/news/politics/2014/11/06/gov-lepage-mandate-reelected/18618607/