An Economic Warning: Collaborate or Risk Failure

As if struggles in the economy weren't hard enough on Michigan's population, Jennifer Granholm's announcement last week on the state budget brought more troublesome news. Her speech outlined $670 million dollars in cuts as the only way to balance Michigan's tumbling budget.

Included in the cuts:

• $54 million from family preservation and prevention services, including Community Protection and Permanency Planning ($21.8 million to $17.8 million), Teen Parent Counseling, 0 to 3 Secondary Prevention, Family Group Decision-making, the Marriage and Fatherhood Initiatives, the Black Child and Family Institute, and the Michigan Youth Opportunity Initiative.
• $5 million for before and after school programs
• $7.6 million in Community Mental Health funding
• $164 million for K-12 education - A reduction in the per-pupil foundation allowance of $59 per student.

Despite the passing of stimulus package of which suggests that some of these cuts will be compensated for, it is evident that many cuts will remain in effect. To compound the situation, the private business sector, and as a consequence many foundations, simply do not have the resources to provide to non-profit organizations as there were in times of economic prosperity.

For organizations of whose focus lies on child and family welfare, the news is quite overwhelming. It will be harder than ever this year for non-profits to have the resources necessarily to provide services to low-income children and their families. In a fight for survival, they will be faced with choice: collaborate with other organizations for limited resources, or risking competing against them.

For the Kalamazoo County Poverty Reduction Initiative, an organization founded on the idea of working together for the greater good, the time to collaborate is more vital than ever. The most weighted resources available will now be through larger-scale federal grants and mega-foundations, both of which are rarely accessible to small non-profits.

However, if we combine our efforts and form coalitions that support larger efforts, we can work together to access the deeper pools of funding.

Though the economy may prove times tougher than before, we have a chance like never before to establish relationships which will enhance efforts for the greater good of all. Its time to join arms with regional organizations and give ourselves the best opportunity to succeed.