McNerney Introduces Bill to Boost CA Nonprofits in the Wake of Federal Budget Cuts
SACRAMENTO – State Sen. Jerry McNerney, D-Pleasanton, today introduced SB 1240, new legislation that would help boost California nonprofit organizations in the wake of significant federal budget cuts.
SB 1240 would establish the Office of Nonprofit Empowerment within the governor’s office – a one-stop shop to improve nonprofits’ access to essential resources and help organizations navigate the often-complicated processes of state government.
“California nonprofits play a vital role in our economy, providing essential services and programs in education, health care, social services, the arts, the environment, public safety, and more. But with significant cuts coming from the federal government, nonprofits are fighting for their survival,” said Sen. McNerney, who was recently honored to accept the chair of the Senate Select Committee on the Nonprofit Sector. “SB 1240 will provide a much-needed tool to ensure that nonprofit organizations thrive in our state.”
SB 1240 is sponsored by the California Association of Nonprofits (CalNonprofits).
“Nonprofits are essential partners to government. We complement each other's work in serving communities but often work in very different ways and partnerships aren't always simple,” said Geoff Green, CEO of CalNonprofits. “Just as businesses can turn to the Office of the Small Business Advocate or GO-Biz, a dedicated office like this will strengthen nonprofit-government relations as well as the communities we both serve."
California nonprofits are a major driver of the state’s economy, employing 1.7 million workers and producing 15% of the state’s gross domestic product. Currently, some 109,00 nonprofits operate in California.
But nonprofits are facing unprecedented challenges due to major budget cuts – and threatened cuts – from the Trump administration.
California nonprofits, especially smaller nonprofits, also struggle to navigate the state’s bureaucracy, facing hurdles to access grants, having to complete redundant reporting requirements, and being forced to wait too long for reimbursements, according to a recent comprehensive report from the Little Hoover Commission.
SB 1240, in fact, adopts one of the recommendations of the Little Hoover Commission report – to establish a nonprofit liaison office within the governor’s office. The Office of Nonprofit Empowerment (ONE), created by SB 1240, would operate much like the Office of the Small Business Advocate or GO-Biz, which assists businesses throughout the state.
Today, Sen. McNerney will take part in a discussion on what's next for California nonprofits – both in the Capitol and around the state – with representatives of CalNonprofits. The event begins at 10:30 a.m. at the Bankhead Theater in Livermore.
SB 1240 is expected to be heard by a Senate Committee in the weeks to come.
Sen. Jerry McNerney is chair of the Senate Revenue and Taxation Committee, and his 5th Senate District includes all of San Joaquin County and Alameda County’s Tri-Valley.
