Legislators Get Back Pay! How About You?

The New York Nonprofit Press offered this relevant perspective now that the NYS Budget has been passed:

After finally completing passage of New York State’s FY2010-2011 budget – 125 days late -- New York State legislators have received checks covering back pay averaging $26,500. How about your agency?

According to an article in today’s City Hall, salaries and other monies owed to Assembly Members and State Senators – a total of $7 million – were paid out in full on August 3rd – the day they voted on the final budget bills. Legislators, according to the article, are now catching up on their mortgages and paying off other loans – if not simply dropping the cash into their savings accounts.

By contrast, there are widespread reports that New York State had taken no action to make payments to nonprofit contractors for services provides since April 1st when the new fiscal year began – even when there were existing contracts and, therefore a legal obligation to make payment.

Last week, NYNP reported on several agencies who were already owed as much as $1 million for services provided during this fiscal year. A Division of Budget spokesperson indicated that cash flow problems were standing in the way.

Now that the budget has been passed, when will payments under existing contracts be made to providers? And, how quickly can the state act to process and register new contracts to provide payment for critical services?

Nonprofits have mortgages and loans to pay off too – not to mention the salaries of staff who never stop providing services, budget or no budget.

What’s happening at your agency? Email your comments to editor@nynp.biz.