Privatization Could Challenge Nonprofits

HARTFORD, Conn. -- As the Malloy administration prepares to cut spending in social service agencies -- part of the plan the governor released Tuesday and wants the legislature to approve -- the nonprofits that provide many safety net services for low-income and disabled residents are wondering what the changes could mean for them and their clients.
People who work with nonprofits say they could take over some state services, particularly group homes and local mental health authorities, which provide theraputic and crisis intervention programs. Private providers already operate some of both.
But some cautioned that the nonprofits themselves are in precarious financial positions and would need more state funding to take on additional responsibilities. And nonprofit leaders worry that the budget cuts could instead mean cuts in the rates private providers are paid by the state.