Political Culture, Nonprofit Organizations, and the Financing of Human Services

Abstract

Students of fiscal policy have long noted the impact political culture has on spending levels. This relationship has not only been statistically dem onstrated but is incorporated in the stereotypical views held of certain areas. Some states are frequently identified as "low spenders," while others have a reputation for supporting services. When the federal government elected to reduce its support for many human services, an opportunity arose to understand whether political cultures had changed in some areas with regard to state and local support of human services. In states where the tradition was for low spendingfor services, did they respond by curtail ing programs, or did the public or private sectors increase their spending? In Texas, a state with a history of low spending levels for human services, neither the state legislature nor local governments increased their fiscal responsibilities for human services. However, there was a large increase in private sector contributions. The pattern of this response not only sheds new light on the political culture of Texas but also raises important challenges for financing nonprofit agencies and delivering human services.