by Karla Ciaglo CTNewsJunkie
HARTFORD, CT – Connecticut’s nonprofit service providers are facing a dire financial shortfall, with leaders warning Tuesday that a proposed budget cut could result in an effective $19 million loss in the first year, jeopardizing essential services for the state’s most vulnerable residents.
These organizations provide critical services and support, including for mental health and addiction treatment for individuals with developmental disabilities, homeless shelters, and re-entry programs for individuals involved in the criminal justice system.
Nonprofit leaders and state legislators emphasized the devastating impact of inadequate funding during a news conference at the Legislative Office Building.
Gian-Carl Casa, president and CEO of the CT Community Nonprofit Alliance, stressed that without an annualization of federal ARPA funds, the governor’s budget plan translates into a significant cut.
“Nonprofits are already operating with 30% less purchasing power than they had in 2007,” Casa stated. “If the legislature does not act, this shortfall will force organizations to cut services, lay off staff, and leave thousands of people without the support they need.”
State Sen. Cathy Osten, a Democrat from Sprague who co-chairs the Appropriations Committee, stressed the importance of nonprofit funding, a cause that she stated was close to her heart.
“This $19 million is not about luxuries – it’s about keeping the lights on, keeping homes heated, and ensuring people have food,” Osten said. “These organizations are already struggling, and we cannot afford to let them collapse.”
Osten also tackled the misconception that CEO’s of nonprofits were taking home large sums of money.
“People ask about CEOs in nonprofits making hundreds of millions of dollars, but I haven’t seen any of them yet,” she said. “What I do see are nonprofit employees who need the same services as the clients they serve.”
Dan Osborne, CEO of Gilead Community Services, detailed how the lack of funding forced his organization to shut down a women’s intensive outpatient substance abuse program, leaving hundreds without care.
“These are hundreds of individuals who were receiving care from highly trained professionals who are now no longer receiving care from us,” Osborne said. “We hope they’re receiving care from someone, but we just don’t know the outcomes. These are lives at stake, ” he said “Costs for electricity, heating, and essential supplies keep rising, but our funding keeps shrinking. That’s not sustainable.”
Fernando Muniz, CEO of Community Solutions, which serves individuals involved in the criminal justice and child welfare systems, discussed the staffing crisis nonprofits face due to low wages.
“Our residential reentry programs are filled to capacity daily, but we’re struggling to pay a decent wage to our frontline staff,” Muniz said. “One of our primary functions is to find employment for our clients, and we’re often placing them in jobs that pay more than our own staff earns. That’s tragic.”
While Governor Ned Lamont’s budget proposal includes $157 million for nonprofit service providers in addition to the nearly $327 million allocated for fiscal year 2025, nonprofit leaders argue that failing to fully annualize federal funds results in an effective budget cut. The consequences, they warn, could be severe—longer waiting lists, service reductions, and increased pressure on an already stretched system.
As the legislative session continues, nonprofit leaders and their advocates are urging lawmakers to take action before the funding shortfall leads to irreversible consequences.
“This isn’t just a budget issue—it’s a human crisis,” Casa warned. “We cannot turn our backs on those who rely on these services. Connecticut has a history of supporting its most vulnerable residents, and we need to uphold that commitment now more than ever.”