MEMO OF SUPPORT

S.9855 (MAYER) / A.11179 (Paulin)

Access to Operating Funds

Empire Justice Center supports S.9855 (Mayer)/ A.11179 (Paulin), which makes changes to the prompt contracting law to address nonprofits’ challenges with state funding.

Empire Justice Center is a statewide, multi-issue, multi-strategy not-for-profit civil legal aid provider focused on changing the complex systems impacting low income and marginalized New Yorkers. With a focus on poverty law, Empire Justice takes a 360-degree approach to the areas of law we practice in, providing individual legal representation, policy research and analysis, training and technical assistance as well as impact litigation.

 Empire Justice Center currently is owed $3,021,942 from the start of New York in receivables for work already performed. We have several contracts that are not yet executed; one contract that began on April 1, 2025 was just executed on March 12, 2026, which means that we have provided services for nearly a year without reimbursement. As nonprofits partner with government to provide much needed services they face challenges, especially in contracting. Late procurement and payment plague the system and this results in inefficiencies and increased, nonreimbursable costs to nonprofits.  Nonprofits may have to let go of staff or take on debt because of funding uncertainties.  Decades of these systemic challenges have weakened nonprofit operational infrastructures and negatively impacted those community members most in need of supportive services.

 This legislation makes changes to state finance law to help address issues that nonprofits experience when contracting with or seeking payments from New York State.  These changes include:

S9855 (Mayer) / A.11179 (Mayer)

• Automatic advance payments of 25% of contract value once funds are appropriated and not-for-profits are vetted.
• Indirect operating costs included in all contracts.
• Streamline budget modifications.

S.9855 (Mayer)/ A.11179 (Paulin) will ensure nonprofits have working capital upfront, instead of waiting months to be reimbursed. The changes in the bill are not only fair; they are essential to safeguard the continuity of life-saving services. With the existing financial crisis faced by the nonprofit sector being further compounded by funding cuts, and the threat of additional funding cuts by the federal government, nonprofits are relying on the state more than ever.

For these reasons Empire Justice Center supports S.9855 (Mayer)/ A.11179 (Paulin).  If you have any questions please contact Alex Dery Snider, adersysnider@empirejustice.org.

A PDF version of the Memo of Support is available for your convenience.