FY20 City Budget Response

Nonprofit Sector “Cautiously Optimistic” Regarding Legislative Solution From Speaker Johnson and City Council

NEW YORK CITY — The final budget agreement between Mayor Bill de Blasio and the New York City Council fails to provide $106 million for frontline nonprofit human services providers, the bare minimum necessary to cover shortfalls from City Hall’s managerial inadequacies.

City Government hires nonprofit vendors, such as homeless shelters, food pantries and mental health facilities, to provide critical services to New Yorkers. Yet the City regularly pays these nonprofits too little and payment arrives too late. The $106 million investment would have covered indirect costs for nonprofits, such as interest on a loan taken out when the city fails to pay its bills on time.

Importantly, Speaker Corey Johnson said the Council is committed to working towards a November budget modification that will fund the true indirect costs of nonprofits under contract.

Allison Sesso, Executive Director of the Human Service Council of New York (HSC) released the following statement in response:

“The de Blasio Administration routinely shortchanges human services providers, paying them late and insufficiently. While the Administration paid lip service to this issue by establishing a Nonprofit Resiliency Commission, years later we are still waiting for these issues to be resolved. Nonprofits are fed up.

“We are pleased to see Speaker Johnson speak so eloquently about the issues in the sector, and are cautiously optimistic that he will be able to address this problem given Mayor de Blasio’s failures to do so to date. 

“Nonprofits will continue to fight for the funds to support the organizations serving millions of New Yorkers so that those relying on homeless shelters, mental health clinics and meals for seniors don’t continue to pay the price. 

“Perhaps if these nonprofits operated in Des Moines, our Mayor would have paid closer attention to their plight.”