October 3, 2008
As the subprime mortgage crisis continues, newspapers and TV are flooded with stories of bail-outs of major banks, crashing stock markets and constant uncertainty. But how will this all affect smaller local businesses and non-profits? Who will bail them out of their financial woes?
Yesterday, Governor Patrick announced massive cuts in the state budget due to declining revenue, including a September shortfall of $188 million. The Governor has imposed a hiring freeze on non-essential jobs and suspended pay raises that were not in union contracts. His proposal also includes cost-saving measures like getting rid of the Massachusetts Turnpike Authority.
There are approximately 36,000 Massachusetts non-profit organizations that currently employ roughly 14 percent of the Massachusetts workforce. Without security in the market, these organizations are at risk. Read more...