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July 26, 2017

Nonprofits: We can save CT $300M by taking on gov't. services

YouTube In this YouTube screenshot of an online video ad, community-based nonprofits say they can help Connecticut save $300 million over two years by converting state human services work to the nonprofit sector.
PHOTO | Contributed Brett Broesder, founder of the Campaign for Tomorrow's Jobs.

Community-based nonprofits say they can help Connecticut save $300 million over two years by converting state human services work to the nonprofit sector, according to an advocacy group promoting the claim in an online ad.

Without a state budget in place, Gov. Dannel P. Malloy signed an executive order to manage a $5 billion projected deficit in fiscal 2018, which began July 1. The order included nonprofit spending cuts, prompting more than two dozen organizations to stop providing services, said Brett Broesder, co-founder and vice president of Campaign for Tomorrow's Jobs, a nonprofit that advocates for workforce preparedness, business growth and innovation, and fiscal sustainability.

To arrive at the estimated savings, the CT Community Nonprofit Alliance calculated the difference in the per-person cost between state employees providing certain services vs. nonprofit providers.

Using nonprofits to deliver services for a lower cost than what the state pays would help achieve those savings, Broesder said.

For instance, of the 13 local mental health authorities in Connecticut, seven are run by nonprofit providers but six are run by the state. According to documents supplied by Broesder, the per-person cost of the state-operated authorities is more than double the cost of those run by nonprofits.

“Shifting more human services to community nonprofits can save the state $300 million over the biennium and avert cuts to critical services for those who need it most,” Broesder said.

The 30-second online video ad features narration by counselors who help people coming out of prison, those with developmental disabilities, and those getting substance abuse and mental health treatment.

The governor’s office could not be immediately reached for comment.

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