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PUBLIC TESTIMONY
Testimony by Eric Lee, Director of Public Policy at Volunteers of America, Greater New York
1:57:30
ยท
3 min
Eric Lee from Volunteers of America, Greater New York (VOA GNY) testified about severe financial challenges faced by his organization due to delayed payments from the city for contracted services. He highlighted the urgent need for action to address payment delays, contract processing issues, and funding for human services providers.
- VOA GNY is owed nearly $40 million for city-contracted services, some dating back to FY 2017.
- The organization has spent approximately $1 million in interest this fiscal year due to payment delays and forecasts spending $1.5 million in FY 2026.
- Lee expressed support for Intro 514, which would make interest costs reimbursable when the city is late in payments.
Eric Lee
1:57:30
Excellent.
1:57:33
Hi.
1:57:33
Good afternoon.
1:57:34
Thank you, chair Wong and members of the committee and committee staff for allowing me to testify today.
1:57:39
My name is Eric Lee.
1:57:40
I'm the director of public policy for Volunteers of America, Greater New York.
1:57:44
We are one of the region's largest human services providers.
1:57:48
We are the fifth largest supportive housing provider, and we also operate shelter for families and individuals, including people, fleeing domestic violence.
1:57:57
We are a member of Home Homeless Services United, the Human Services Council, and the Supportive Housing Network of New York.
1:58:05
I submitted written testimony, which I will summarize.
1:58:08
To date, VOA GNY is owed nearly $40,000,000 of city contracted services stretching as far back as f y seventeen.
1:58:17
We've been forced to rely on our line of credit to continue operations, and we've spent approximately $1,000,000 in interest for this fiscal year to cover city delays.
1:58:27
And we forecast spending 1,500,000.0 in interest for f y twenty six.
1:58:33
To councilmember Brewer's comment about interest costs, we strongly support intro five one four, which would make the interest rates reimbursable when the city is late paying us.
1:58:45
This fiscal strain has become untenable, leading us to delay the opening of one new shelter facility and walk away from another recently awarded contract entirely because we simply cannot afford to carry the cost of operating these programs while payment delays persist.
1:59:00
In addition, we still have not been able to implement the human services COLA, which the council fought so hard for for because the city has not yet released funding for it.
1:59:11
The added uncertainty regarding the leadership of MOX further adds to our anxiety and underscores the need for decisive leadership on this issue from the very top.
1:59:20
We ask for the committee's support in urging the administration to take emergency action to clear the backlog of pending invoices and passport, stop recouping advances until payments flow smoothly, and issue additional advances as as needed to restore positive cash flow to nonprofits like us so that we can remain full partners in addressing the crisis and this of homelessness.
1:59:41
Additionally, we urge the council and the administration to increase funding for f y twenty six city budget staffing for MOCs, DSS, DHS, and DOHMH as well as other city agencies to approve contract actions and reimbursement for human service providers.
1:59:56
VOA GNY has pending contract action stretching as far back as FY seventeen, which are preventing us from getting paid.
2:00:03
This includes the indirect cost rates to cover overhead cost as well as the cost of living adjustment for our staff from prior fiscal years.
2:00:12
These continued delays in procurement processing further restrict our cash flow, which is already hindered by the unwieldy reimbursement process, only allows us to submit two invoices per contract at any given time.
2:00:24
City agencies need to be funded to ensure that nonprofit providers contracting needs are met so that we can focus on providing the services for our community.
2:00:32
Thank you for the opportunity to testify.