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PUBLIC TESTIMONY
Testimony by Galloway, Advocacy Manager at Ali Forney Center, on NYC's Broken Contracts and Reimbursement System
2:11:44
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Galloway, Advocacy Manager at Ali Forney Center, testifies about the severe financial strain placed on nonprofits due to NYC's broken contracts and reimbursement system. The testimony highlights the urgent need for reforms to ensure timely payments and sustainable operations for organizations providing essential services to unhoused LGBTQ youth.
- The Ali Forney Center was owed an average of $6 million by the city in 2024 alone.
- Nonprofits are waiting 2-3 years for reimbursements, making financial planning impossible.
- Proposed reforms include guaranteed 30-60 day reimbursement timelines, transparent recoupment schedules, and faster provider-centered processes.
Galloway
2:11:44
Good afternoon chair one and council committee on contracts.
2:11:47
Thank you for the opportunity to testify.
2:11:49
My name is Galloway and I serve as the advocacy manager at the LA Fornay Center, the nation's largest provider of life saving services to un housed LGBTQ youth in New York City.
2:11:59
The city's broken contracts and reimbursement system threatens our ability to continue this work.
2:12:03
Nonprofits are waiting anywhere from two to three years for reimbursement, making it impossible to plan financially.
2:12:10
In 2024 alone, the city owed the Ale Fournier Center an average of $6,000,000 Let's lean more into that, what that actually looks like for providers' sporadic housing services.
2:12:19
It adds actually to this crisis because providers cannot predict the amount they will receive after submitting vouchers for recoupment.
2:12:27
This inconsistency in reimbursement makes it impossible to manage cash flow, plan services, and sustain operations effectively.
2:12:34
We need urgent reforms.
2:12:35
So what this is looking like is, one, a guaranteed reimbursement timeline.
2:12:40
Payment should be processed within thirty to sixty days, not years.
2:12:43
A transparent recoupment schedule so providers can manage cash flow and plan voucher services accordingly.
2:12:49
Third, a faster provider centered reimbursement process to prevent delays that jeopardize essential services.
2:12:56
And lastly, reform of contract advancements, recoupment.
2:12:59
So that will help ensure organizations are not left financially vulnerable.
2:13:04
Nonprofits do the work in the city and this is the work the city should actually be doing.
2:13:09
So we need a system that honors and sustains this work not one that sets us up to fail.
2:13:13
Thank you so much and we look forward to collaborating with you on this.