With the state deficit projected at $5.1 million and tax revenue expected to decline, the Governor will have some tough decisions to make this coming year. Financial forecasts are expected to worsen, and it seems that government restructuring and program cuts are inevitable.

As we wrap-up the fourth funding round for Washington Families Fund, I can't help but think about the homeless and low-income individuals, families, and children that will be impacted by the financial crisis we find ourselves in. Those who are already relying on government subsidies and housing service programs will certainly be stretched even further as community agencies struggle to find ways to keep people in their homes and provide more people with the services needed to prevent homelessness. Additionally, community organizations and government agencies working on homelessness and housing issues are going to experience funding cuts in the future that will force them to lay off staff and/or cut programs, ultimately affecting the clients they are serving.

Many philanthropic organizations and individuals have taken hits on their portfolios and as a result have less to give. Many Americans are becoming more financially conservative, preparing for possibly even tougher times ahead, and many simply do not have the money to contribute to charity due to a loss of resources in their own lives.

As Washington Families Fund staff visited agencies to determine funding decisions, it became more evident how many local nonprofits are going to suffer. With over $10 million in asks to Washington Families Fund and less than $4 million to grant out in 2008, we can fund only a handful of agencies. Yet I continue to be struck by how dedicated, passionate, and hopeful many nonprofit agencies are, even in these hard times. One executive director we met with commented, "When you see the need, how can you not act?" Even though the organization was clearly over-extended and in danger of losing funding from other sources, she was undaunted in driving forward and continuing to seek new housing for homeless families.

There is a lot of work to do in order to bridge the gap for homeless populations. Ensuring safe and affordable housing, promoting economic opportunities, and providing access to the resources people need to be self-sufficient can seem overwhelming considering the current circumstances. However, in order to create a better future it is essential to keep investing in those who will be hit the hardest by the economic downturn and continue fighting for homeless families and individuals and people who do not have a safety net in times of crisis.