Nonprofits slimming down, some closing, due to state budget cuts

Published July 26, 2013

Durham Herald-Sun, July 25, 2013.

The Durham-based N.C. Institute of Minority Economic Development already started adjusting programs and staff in reaction to expected state budget cuts, the nonprofit’s president said Wednesday.

State legislators planned to eliminate state funding for the nonprofit, according to the budget that came out of legislature’s conference committee on Sunday. The budget passed in both houses of the state legislature Wednesday and was sent to Gov. Pat McCrory.

The approximately $2.05 million cut represents almost 70 percent of the revenues that the nonprofit saw in 2011, according to tax documents. The group works to promote and develop minority and women-owned businesses firms as well as firms employing low-to-moderate income people.

Andrea Harris, the nonprofit’s president, said that the group had begun making changes earlier in the budget process. The group cut six of 20 staff members, she said. She also described efforts to increase the organization’s efficiency and trim programs.

“We may not do all the things we once did, but we will do some of them, and I think we will have stronger partnerships with the corporate community,” she said. “I don’t look at this as a negative thing. Businesses go through it all the time.”

Harris said the nonprofit will put more focus on support and assistance for companies trying to select and acquire loans, but will look to volunteers and workshops for companies seeking help with business plans.

“I think we have strong partnerships in the corporate community, and I think we will work on trying to expand those where they can benefit clients,” she also said.

Another state-supported nonprofit, the Biofuels Center of North Carolina, will close in light of cuts to the organization in the state budget.

“With our funding eliminated in the state’s 2013-14 budget, the center, in coming weeks, will responsibly, carefully and effectively terminate its activities, programs and projects,” said Wil Glenn, a spokesman for the organization.

Officials with the N.C. Biotechnology Center were still working out on Monday how they’d deal with a potential cut in state funding of 27 percent, or more than $4 million, proposed in the legislature’s negotiated state budget plan.

The Research Triangle Park-based center works to develop the state’s biotechnology sector.

July 26, 2013 at 1:49 pm
dj anderson says:

Is anyone surprised by changes after the election? Republican don't see that they are losing any votes via this blog, I bet.

This is a time for the NCIMED to show how effectively & efficiently they have used their money to create jobs. Maybe it's too late for that.

Durham is going to get a windfall of money otherwise, under the Republican plan, so maybe some jobs will move to get that funding. Go for it.

As for the bio-fuel, that non-profit has millions still, right? Maybe they could still prove themselves competitive with ethanol production? Federal money went into a concern there in Oxford, too. But the winds have changed from ethanol to natural gas and I've seen no affordable ethanol coming from NC grass yet. I have seen the corn price go up and I don't like using ethanol in my car. For my other motors, I take my can to 401s out past Garner to get ethanol free gas at a premium.

Back in 2009 when the Feds were squandering billions, I suggested they use it to have natural gas fuel stations across the interstate system instead of a new bus garage on prime real estate on Poole Rd or the fancy acres of concrete garbage truck park on the SE side. Of course, back then, the Democratically controlled governments in DC & NC didn't know about the boom in cheap, cleaner natural gas to come. The FWIW, Republicans wouldn't have borrowed the stimulus money if they were in power. Back then I could see truckers going natural gas, mainly, and some cars. Ah, hindsight!

Unless both receivers of government funds can show their contributions being profitable investments, then this blog is just more crying. From what little I've heard, the Ethanol investment has not been wise. I don't know about small business in Durham.