Virginia is still looking for a way to provide money to nonprofit groups in the wake of a legal opinion from Attorney General Ken Cuccinelli that said the state cannot directly appropriate money for charities not owned or controlled by the state.
The General Assembly’s money committees received updates this week on the impact the ruling could have on next year’s budget.
The state can legally contract with and pay nonprofits for specific services, as long as they are not outright gifts, according to Brian Gottstein, a spokesman for Cuccinelli.
Virginia is now doling money out to more than 20 groups that work with the Virginia Department of Health whose funding had been held up in the wake of the opinion, according to Finance Secretary Ric Brown.
“We have worked through all of that with the state and our funding has been restored,” said Lou Markwith, director of the Virginia Association of Free Clinics. “It’s been a difficult thing to work through, but we have worked through it. This is the principle of unintended consequences.”
The Department of Planning and Budget on Friday released the status of funds slated for more than 50 charities or non-state entities. Some funds, like $32,900 for the Virginia State Fair in the current fiscal year, have been deemed constitutional, while others, like $1 million for the Civil War Historic Site Preservation fund slated for next year, are still under review.
Cuccinelli issued the opinion in response to an inquiry from Del. John O’Bannon, R-Henrico.
“A question was asked, and the result was much larger than the first question,” said Markwith.
But now, cultural and historical groups that have received funding in the past fear they’ll be next in line on the chopping block — and Republican legislators have indicated that such funding isn’t appropriate, the Post reports.
Other lawmakers indicated that there could be other avenues:
“I think that many of these organizations and institutions provide an enhanced quality of life for Virginians,” he said.
And if all else fails, senators may push for another solution.
“Ultimately,” said Senate Majority Leader Richard L. Saslaw (D-Fairfax), “we may be faced with changing the constitution.”
