King of Prussia Rotary Club Charitable Foundation made a contribution today to improve the educational capabilities of ACLAMO in Norristown, PA. Holding the $3,000 check are from left King of Prussia Rotary Club Project Chairman Ernest Zotolow, Executive Director of ACLAMO Juan Guerra, and President of the King of Prussia Rotary Club Carl Pinto. ACLAMO’s staff teaches language and study skills to children of Latin American parents. ACLAMO used the grant to purchase the equipment and installation from AVT digital Media Systems of Malvern, PA

Mothers of ACLAMO students gather in the computer training room that now is equipped an interactive digital whiteboard thanks to the King of Prussia Rotary Club. While the 35 pre-school children are gaining skills needed to do well in school, ACLAMO provides computer training for their mothers so that they gain skills to help them enter the workforce. King of Prussia Rotary Club Charitable Foundation grants support education in the local community through scholarships and projects that serve specific needs.

The King of Prussia Rotary Club is made up of professionals, business owners and institutional leaders that meet every Monday at 12:15 for lunch at Michael’s Deli. The Club’s Charitable Foundation awards over $35,000 annually in scholarships and projects that increase educational effectiveness. The donations assist local organizations and international projects.  To learn more contact David Staiger, membership chair at 610-324-2758 staigd@aol.com or Carl Pinto, president at 610-337-2658

Another State Budget Battle Lies Ahead

By Lowman S. Henry

Governor Tom Corbett and Republicans in the state legislature have spent the last six months patting themselves on the back for fulfilling their main constitutional duty of passing a state budget on time. It was a significant achievement, more so because it held the line on taxes. But that victory was fleeting because yet another budget battle is getting underway.

The problem is despite large Republican majorities in both chambers of the General Assembly and the coming to power of a Republican governor the budget victory has not been followed up by the enactment of structural changes to address the cost drivers in the state budget. Major funding issues, such as the state’s ongoing need for investment in roads and bridges, remain untouched.

State Budget Secretary Charles Zogby signaled the start of the 2012 budget battle in late December by reporting that revenue collections are coming in below estimates and that budget makers will once again face a deficit. Spending interests decried Zogby’s report as a tactic, but the fact is the ongoing national recession coupled with Pennsylvania’s generally inhospitable business climate have depressed economic activity resulting in less income and earnings to be taxed.

Also contributing to budgetary pressures is the Corbett’s administration’s failure to address labor costs. A number of union contracts expired last year and, generally speaking, the new agreements lacked significant cost-saving concessions.   It was a missed opportunity to bring labor costs under control that will have a lasting impact for years to come.

Legislatively, unions survived the first year of Republican domination of state government largely unscathed. Even minimal reform, such as increasing the ceiling for prevailing wage laws to kick in on public works projects, have yet to advance through the legislative process. Issues such as ending government collection of union dues and passage of Right-to-Work legislation have not seen the light of day.

Structural reforms to education, such as school choice, ran aground in the legislature. Privatization of the state’s liquor store monopoly is stalled. Calls for passage of a severance tax on Marcellus Shale gas continue to echo around the halls of the capitol, creating uncertainty in the state’s biggest growth industry. A year into the governor’s term, no plan for eliminating waste and cutting the state’s out-of-control welfare system has emerged.

And now the bad news: this is an election year. Every seat in the state House of Representatives and half of the state Senate will be on the ballot in the upcoming April primary. The official start of the election process, gathering signatures to get on the ballot, begins in just a couple of weeks. Typically most major legislative accomplishments occur in non-election years because incumbents shy away from casting controversial votes in the midst of their re-election campaigns. Thus expectations for progress this year are low.

Those who thought large Republican majorities in the legislature would result in a more fruitful session are disappointed. But, the lack of output by the General Assembly reveals an inconvenient truth: Republican control does not equate to conservative policies. There continues to exist within both the House and the Senate – particularly in the Senate – a small but pivotal number of Republicans who are beholden to labor unions and whose goal it is to prevent enactment of the conservative policy agenda espoused by the governor.

In short, the GOP is a dysfunctional family. Governor Corbett and the state House leadership tilt conservative, but the Senate leadership is under labor union sway. Thus the three power centers cannot agree on an agenda, resulting in gridlock. Given that most state policies currently in place are not to the liking of conservatives, gridlock is a bad state of affairs.

With another budget battle getting underway against the backdrop of election pressures look for little to get accomplished in 2012. In fact, holding the line on taxes and getting another budget passed on time will be a Herculean task. Simply holding on to 2011′s meager gains may be all that is possible in the upcoming year. On the positive side voters have before them the opportunity to elect to office senators and representatives who will pursue more taxpayer friendly policies. The key to future progress is an educated and involved electorate in this important election year.

(Lowman S. Henry is Chairman & CEO of the Lincoln Institute and host of the weekly Lincoln Radio Journal. His e-mail address is lhenry@lincolninstitute.org.)

Permission to reprint is granted provided author and affiliation are cited.

Background: In order to assist ACLAMO Family Centers of Norristown, PA in its educational mission, the King of Prussia Rotary Charitable Foundation provided funding for a $3,400.00 interactive “Smartboard”. The project was assisted by a grant of $1,000 from the Gundaker Foundation, which supports Rotary Club projects in the Philadelphia area. The high-tech system was recently installed  in ACLAMO’s computer skills training room by AVT Digital Media Sytems of Malvern, PA.

The King of Prussia Rotary Charitable Foundation will unvail the Smartboard System and present the check for the total project cost to ACLAMO on January 23.

This is not easy to do, which is why so few members of congress are even trying. Two successive wave elections have sent to the national legislature groups of representatives who are polar opposites both in terms of party affiliation and ideology. This has gridlocked congress both rhetorically and legislatively.

The danger for any senator or congressman is that the slightest movement away from ideological orthodoxy results in immediate condemnation from their party’s base, seemingly making compromise impossible. But, for those willing to peel back the outer layers of the policy onion there are often obscure and archane details that provide opportunity for agreement and progress.

And so it was that Senator Toomey became the only member of the so-called “super committee” on deficit reduction to actually put on the table a new proposal that remained true to principle, but offered significant movement toward compromise. Unfortunately, no statesman emerged on the other side to reciprocate Toomey’s gesture, although apparently the freshman senator’s plan did cause other members to pause to consider.

The genius of Toomey’s plan was that it would have actually cut tax rates for a majority of taxpayers, while generating additional revenue through the closing of certain loopholes. As a former president of the Club for Growth, Toomey had a “Nixon goes to China” moment in that he is one of the few members of congress who could propose generating more tax revenue without getting totally ground up by conservatives, while giving Democrats some of the additional tax dollars they crave.

In the end, it wasn’t enough for the Democrats on the “super committee,” and even Toomey could go no further. But, given that Toomey was the only member of the committee to actually appear to be reasonable, thoughtful, and creative, it allowed him to emerge intact from what was otherwise a “super committee” train wreck.

In recent weeks Senator Toomey has further solidified his status as a bridge over the great partisan divide by teaming with Senator Claire McCaskill (D-MO) to introduce legislation aimed at banning congressional earmarks. The practice of earmarks – allowing members to insert pork barrel spending projects into legislation – has fueled the federal deficit. Ending earmarks is a vital first step toward fiscal restraint by congress, but is often seen as a conservative Republican issue. By joining forces with McCaskill, Toomey has transformed it into a good government issue.

There is no more highly partisan member of the United States Senate than Senator Charles Schumer (D-NY). Schumer is an unashamed liberal who is the driving force behind his party’s electoral machine. But, last week Schumer and Toomey introduced a bipartisan plan to remove barriers standing in the way of private firms seeking to go public. Such a material change in corporate structure has resulted in job growth at 90% of the private firms that have gone public.

In announcing the plan Senator Schumer said: “During difficult economic times, it is critical that we give growing innovators the breathing room they need to access public markets. This is a common sense set of reforms that can bridge the partisan divide and have a real impact on job creation.” An argument can be made that if you can bridge the partisan divide between Chuck Schumer and Pat Toomey you have built a very solid structure. The bill stands an excellent chance of becoming law, and will ultimately have a profound positive effect on job creation.

It has often been said that “the devil is in the details.” But what Pat Toomey has demonstrated in recent weeks is that the solution may also be in the details. Both his proposal to the “super committee” and his bill to allow companies easier access to the capital markets show that the way forward is to address the smaller, more technical issues upon which consensus can be built. Eventually, after taking care of enough of the smaller issues, a path will emerge to resolving the larger ones.

(Lowman S. Henry is Chairman & CEO of the Lincoln Institute and host of the weekly Lincoln Radio Journal. His e-mail address is lhenry@lincolninstitute.org.)

Permission to reprint is granted provided author and affiliation are cited.

Tough Times

Nonprofits struggle to deliver as recession lingers

The lingering national recession continues to have a profound negative effect on Pennsylvania nonprofit organizations, causing some to doubt their ability to fulfill their mission amid a growing sense of pessimism about the future. That is the overall picture to emerge from the Lincoln Institute’s 2011 Pennsylvania Charitable Organizations Survey.

Conducted in collaboration with the Pennsylvania Association of Nonprofit Organizations (PANO) the annual poll of nonprofit leaders from across the commonwealth found 89% have been negatively impacted by the recession. This has caused a third of the respondents to report they are less able to fulfill their mission than in past years. But, nonprofits are accustomed to doing more with less; as a result over half say their ability to fulfill their mission remains about the same, while 11% reported a greater ability to fulfill their core mission. “For now nonprofits are able to continue providing essential services,” said Joe Geiger, Executive Director of PANO. “But, they are doing this without the capacity to sustain their operations. Many challenges lie ahead.”

As with their for-profit counterparts, 2011 has been difficult economically for nonprofits. Forty percent said that business conditions in Pennsylvania have gotten worse over the past year; only 12% said the state’s economy has improved while 53% said conditions had remained about the same. Remaining the same, however, is not good in that last year by a four-to-one margin, charities reported business conditions had gotten worse.

Looking ahead, charities are less optimistic that business conditions will improve than they were at this time last year. Twenty-six percent said they expect business conditions to get worse in the coming 12 months, up from the 17% that predicted deteriorating conditions a year ago. Twenty-seven percent said they expect the economy to improve, down from the 38% who last year said they foresaw improving conditions.

One casualty of the ongoing recession is employment. Taken as a sector, nonprofits are a major employer in Pennsylvania. But, 30% said they have cut employment levels over the past year, while 17% have added to their payrolls. Employment remained stable at 53% of the agencies. Nonprofits are less optimistic of changing that course than they were last year. Nineteen percent said they expect employment levels at their business to increase over the coming year, down from 24% who forecast adding employees last year. Those predicting a drop in employment rise from 12% last year to 16% in the current survey.

Despite, or perhaps because, of the down economy 28% report they have increased services over the past year. Funding may be down, but at many organizations demand is up as families and individuals cope with chronic unemployment. Twenty-three percent say they have been forced to cut services, and 49% said their service levels have remained about the same.

To survive during the recession, 36% report they have been forced to discontinue providing some services (some while opting to increase others), while a third say they have cancelled or postponed expansion plans. Twenty-nine percent of the nonprofits have had to lay-off staff, 31% have reduced employee hours, 26% have cut or eliminated benefits and 12% have cut salaries. Twenty-two percent say they have been forced to borrow money to cover operational costs.

Health insurance remains a major cost driver for nonprofit businesses. Seventy-seven percent say they continue to provide health insurance to their employees, 3% have discontinued the benefit. Fifteen percent said they do not offer health care benefits to their employees and have no plans to do so in the future. Another 4% do not currently provide health insurance, but expect to begin doing so. Among those who do provide health insurance, 49% say the cost of coverage is split between employer and employee. At 22% of the organizations the employer covers the full cost of health insurance coverage.

In addition to economic difficulties, the nonprofit sector has struggled in recent years with a number of high profile scandals that have eroded public trust in charities. Respondents to the Lincoln Institute/PANO 2011 Pennsylvania Nonprofit Organizations Survey say the credibility climate has not improved. Forty-five percent said the level of public trust in charities has remained about the same over the past year, but 28% said it has gotten worse while only 21% said trust levels have improved. Asked to rate the current level of public trust in the work of charities, 61% rated it as medium, 16% as high and 16% as low. “Given the many contributions nonprofits make to our communities it is a shame the actions of a few have caused public perceptions to remain so low,” said Geiger.

Government Impact

The recession has negatively impacted individual and corporate contributions, adding to the woes of nonprofits has been declining funding from government. Forty-four percent of those participating in the Lincoln Institute/PANO poll said their level of funding from state government has decreased over the past year. State funding stayed about the same at 17% of the organizations and increased at 1%. Another 37% said they do not receive state funding.

When it comes to providing social services, counties get credit for being the most efficient. Thirty-eight percent said county government was the most efficient level of government in providing social services, 15% cited their local or municipal government; 15% gave state government credit for efficiency, only 5% said the federal government was the most efficient at providing social services.

A major issue impacting community benefit organizations throughout the state is lobbying. A new state law enacted several years ago requires nonprofits to register if they lobby for funding or improved public policy. Thirty-nine percent of those participating in the 2011 Pennsylvania Charitable Organizations Survey said they do not think nonprofits should be required to register under the Lobbyist Disclosure Act. Twenty-nine percent thought registering was a reasonable requirement. Thirty-two percent said they didn’t know or offered no opinion.

A substantial majority, 83%, said they are not registered to lobby, only 7% have registered as lobbyists with the commonwealth. Moreover, almost half said they do not understand what is required under the lobbyist disclosure laws. Despite this, 32% report having lobbied state government on a public policy issue during the past year, 17% have lobbied a local official (county, school district or municipality) and 14% have lobbied the federal government. Thirty-one percent said they plan to lobby over the coming year. “These numbers reflect a very low percentage of nonprofits engaging with government,” PANO’s Geiger explained. “Our sector must do a better job in working with elected officials.”

Financial Matters

A third of the nonprofit organizations surveyed by the Lincoln Institute/PANO said they have seen income to their entity decrease moderately since the beginning of the year, an additional 10% report having experienced a significant loss in income. Another third said income this year has remained about the same. At 20% of the nonprofits income is up moderately, 2% have seen a significant increase in income.

Among those reporting a decrease in funding, the biggest drop came in state funding as 28% report a moderate drop in dollars received from the commonwealth with an additional 21% reporting a significant drop in state funding. The next biggest decrease in income was from grant making foundation funding with 34% reporting a drop in grant dollars. Likewise, a third of the nonprofits say giving was down from individual donors. Those nonprofits reporting an increase in giving cited their biggest increase came from individuals (19%) followed by moderate increases from program fees (13%) and from foundations (8%).

A nugget of good news emerged in that 14% of the nonprofits report they plan to expand their operations in 2012, while just 2% forecast closing their doors.

Operational Issues

More nonprofit organizations are turning to social media as part of their communications plan. Ninety-four percent report they have established a Facebook page, 42% utilize Twitter; 35% communicated via Linked In; 32% are on YouTube, and 18% blog. Social media are not yet a major source of income for nonprofits. Sixty-nine percent say they have not tried to raise money via social media. Of those who have, 3% report having raised over $10,000, another 7% say they have raised over $1,000 and 13% have raised between $100 and $1,000.00.

Nonprofits are coming to terms with new IRS form 990 requirements that have been phased in over recent years. Sixty-four percent report not having any difficulty in dealing with the new forms, but 16% are still struggling to comply.

Despite high unemployment rates, staffing remains a problem at 39% of the nonprofits. Fifty-seven percent report not having difficulty in recruiting and hiring qualified staff. Of those having difficulty attracting qualified employees, 40% cite the lower salaries offered by nonprofits; 10% blame their inability to provide benefits; and 7% said prospective employees are not adequately qualified or prepared for the positions they have to offer.

Finding qualified board members continues to be a problem for many community benefit organizations. Thirty-three percent cited the fact potential board candidates are already committed to other organizations as the main reason for their unavailability; another 31% said potential board members lacked the time to participate on their board. An additional 25% said potential board members are not willing to fundraise.

Methodology

The Lincoln Institute/PANO 2011 Pennsylvania Charitable Organizations Survey was conducted on-line from November 4, 2011 to December 5, 2011. A total of 213 Pennsylvania Charitable Organizations participated in the survey. Complete numeric results are available at www.lincolninstitute.org. ]]> http://www.uppermeriontoday.com/2011/12/13/historical-society-of-montgomery-county-presents-clear-toy-candy-december-18-2011/feed/ 0 http://www.uppermeriontoday.com/2011/12/12/as-montgomery-county-turns-by-albert-paschall/ http://www.uppermeriontoday.com/2011/12/12/as-montgomery-county-turns-by-albert-paschall/#comments Mon, 12 Dec 2011 18:12:17 +0000 editor http://www.uppermeriontoday.com/?p=2311 Some days in retirement I miss the soap opera “As The World Turns.”

Its cheesy plots, thin acting and poor attempts at humor were often a lunch time treat until the historic series ended just over a year ago.

But I no longer have to miss the drama.  Cheesy plots, bad acting and poor judgment are all alive and well.  All one has to do is follow the politics of Montgomery County.

Last week, County Commissioner Chairman Jim Matthews was indicted for perjury.  An 18 month grand jury investigation into a number of ‘irregularities’ resulted in him being charged, surrendering to county detectives in a convenience store then being perp walked, with handcuffs high on his chest, before a well briefed press corps to be the ‘big story’ that night on all of Philadelphia’s TV stations.

The irregularities have been well documented.  Just take a look at the archives of the Norristown Times Herald or The Philadelphia Inquirer.   Political payoffs for lucrative health care contracts, the squandering of the American Revolution Center Museum that Matthews called “a great move” and ultimately Matthews’ real sin: his unbridled ego since he was selected by Lynn Swann 5 years ago as the Republican candidate for Lieutenant Governor.   That ego notwithstanding the fact that Rendell and Matthews’s opponent, the aged Katherine Baker Knoll, massacred them with a 4 to 1 win.

That ego was his downfall.  Indicted at the end of his twelve year tenure for his real crime, at least in Republican circles, of doing a deal with Democrat Joe Hoeffel to be county chairman.   A job that has as much power as an earthworm in heat.  But Matthews was enthralled with rubbing elbows with what he considered the elite.  In his own words he was a ‘regional commissioner’ loving his time with the kind of Democrats that his brother Chris, the outspoken cable TV talking head, adores.

But is Jim Matthews guilty?  Did he need to be paraded and humiliated before the media?

No.  Jim Matthews is as guilty of perjury as Bill Clinton was guilty of having sex with that woman.   When asked by the prosecutor if he owned a title company that did business with the county his answer was no.  What would he have answered if he was asked did he own shares of that title company?   We’ll find out after Montgomery County taxpayers and Jim Matthews spend thousands of dollars on a worthless case.

But in the end Matthews’ legacy will live on.   Those who prosecute him actually escape his real heritage.  In November, for the first time since the Civil War, the Democratic Party won a majority on the board of commissioners and will soon control Montgomery County.  Who knows now how it will go in the next episode of As Montgomery County Turns?

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Albert Paschall is a Senior Fellow at The Lincoln Institute of Public Opinion Research, a non-profit educational foundation based in Harrisburg, Pennsylvania.  He is a Director Emeritus of the Montgomery County Chamber of Commerce. ]]> http://www.uppermeriontoday.com/2011/12/12/as-montgomery-county-turns-by-albert-paschall/feed/ 3 http://www.uppermeriontoday.com/2011/11/16/upper-merion-farmers-market-october-1-2011/ http://www.uppermeriontoday.com/2011/11/16/upper-merion-farmers-market-october-1-2011/#comments Wed, 16 Nov 2011 10:07:20 +0000 editor http://www.uppermeriontoday.com/?p=2173 November 19 will mark the end of the 2011 season for the Upper Merion Farmers Market. For an event that you won’t want to miss, the UMFM will host their own version of a Mummers’ parade. Mummers will be at the market to perform their music and will be dancing around the market and teaching patrons how to do the mummer strut. The popular Annual Chili Cook Off sponsored by the Valley Forge Optimist Club will again be taking place, with trophies being awarded to the best three chili entries. Taste testing by patrons for any of the chili entries will be $5.00. Artisans of the Week will be Jazzming, Gayle Flaer, and Nancy Garner. There will also be some activities for the children, including face painting and a moon bounce. There will be a modified winter market to be held twice a month beginning in December. Information about the winter market can be found on the UMFM website. For information about the Upper Merion Farmers Market, visit www.UpperMerionFarmersMarket.