Nonprofits from Erie County and statewide are pushing for two bills they say would improve practices with state contracts.
The proposed changes would guarantee 25% of contracts with nonprofits are paid within 30 days of contract completion, and would require clear payment schedules.
Waiting for the arrival of service payments or grant funds often leaves nonprofits in a precarious situation, said Karen Nicolson, CEO at the Center for Elder Law and Justice.
“It's getting worse every year, in terms of how we get paid and the length of time it takes to get paid … If I don't get paid, I have two choices,” she said. “I can borrow money until I get paid — because you get paid after you do the services — or I can lay off my staff for a few months, or longer, until the money comes in.”
Close to 900 nonprofits across the state are collectively supporting the legislation.
Nicolson hasn’t had to resort to employee layoffs but adds that many other organizations aren’t so fortunate.
Another significant improvement would be if the state started paying a portion of indirect expenses, said Megan Allen, New York Council of Nonprofits CEO.
“Things like insurance, electricity, our overhead costs. We're not asking New York State to pay for all of those overhead costs,” she said. “Just the percentage related to the program that we are providing for New York State. That would be a huge help to help us cover our costs for this programming.”
Hochul has vetoed similar legislation multiple times in the past, but advocates feel they have adequately addressed her concerns with the current proposals. If she does veto the bills, each could still become law if they garner support from two-thirds of the state assembly and state senate.
