The American Welfare State Decoded: Uncovering the Neglected History of Public‐Private Partnerships
The American welfare system has always been characterized by extensive public‐private partnerships in the provision of social services. In addition, government financial support became important to private charitable agencies long before the emergence of nationally administered social welfare programs in the 1930s. Although recent research has acknowledged the expanded use of private organizations to deliver government‐sponsored services since the Reagan Era, and focused more fully on public‐private arrangements since the welfare reform initiatives of 1996, the larger historical context has received scant attention. This article presents a case study of the public‐private organizational and financial arrangements in the provision of relief service both before (up to 1934) and after (1935 and beyond) the emergence of nationally‐sponsored programs. The study addresses the following questions: (1) What was the public‐private organizational arrangement in the delivery of welfare services prior to the expanded government role initiated with the New Deal Legislation of the mid 1930s? (2) How has this arrangement changed since then? (3) How dependent have private charitable organizations (known today as nonprofits) become on government funding? Findings indicate that the inter‐organizational arrangement of government entities contracting services through community organizations remains in place despite the emergence of the welfare state. This study also reveals that government‐nonprofit partnerships extend beyond funding in the form of citywide coordinating coalitions. Lastly, although investigation of the distribution of nonprofit income sources in 1929 and 1999 reveals a shift away from private funds (the typical agency now receiving between 7 and 61.4 percent of total revenues from government resources), this has not negated the importance of other private income sources. Thus, even though nonprofit agencies have become more financially dependent on government resources, they have maintained a significant degree of independence.