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State fiscal freeze hitting charities

Jun 18, 2020 12:45 pm
Chris Bragg is reporting for the Times Union as New York emerges from the pandemic lockdown, thousands of nonprofits that receive state funding are facing financial uncertainty, including many that serve low-income families. The state is facing a $13.3 billion shortfall in the budget this year and agencies have informed nonprofits recently that payments have been delayed and new contracts are on hold while the state looks to the federal government for fiscal relief. Doug Sauer, CEO of the New York Council of Nonprofits, said “thousands” of nonprofits that get state funding are in jeopardy of seeing it cut or stricken. Nonprofits that have multi-year contracts with state agencies are being told they may not get the full amount, Sauer said. Others, which have rendered services under existing state contracts, have often not been reimbursed. Services related to criminal justice, mental health, substance abuse, homelessness, daycare and after school programs could be shuttered, Sauer said. Even before the crisis, state agencies were consistently late in executing contracts with nonprofits. A report released by state Comptroller Thomas DiNapoli found that half of the 2019 contracts between nonprofits and the state, were not processed until after the contract start date, thereby creating cash flow problems. Read the full story in the Times Union.