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Q&A
Administration's $5 billion advance payment initiative for FY2026
0:45:42
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3 min
Council Member Adams asks about the administration's newly announced $5 billion advance payment initiative for FY2026 and its alignment with the goals of Intro 1247. The panel responds by explaining the initiative and its context within broader payment strategies.
- The administration announces a $5 billion advance to nonprofits for FY2026, up from $2.8 billion in the current fiscal year
- Michael Sedillo emphasizes that advances are one tool among many to address payment issues, not a 'silver bullet'
- Kim Yu stresses that the best way to ensure timely payments is to focus on on-time contract registration
- Yu provides statistics on the success of previous timeliness initiatives, with 90% on-time registration achieved by September 2024 for FY2025 contracts
Adrienne E. Adams
0:45:42
Okay, thank you.
0:45:43
As you both mentioned yesterday, the Adams administration announced that it will be advancing $5,000,000,000 to nonprofit organizations contracting with the city in fiscal year twenty twenty six, up from the 2,800,000,000.0 in the current fiscal year.
0:46:00
How does the administration's initiative align with the goals of intro twelve forty seven?
0:46:06
And does the administration support codifying advanced payment practices through the procurement policy board rules to ensure continuity across future administrations?
Michael Sedillo
0:46:17
Thank you so much Speaker Adams.
0:46:19
I think it again what we are about is anything is on the table for us to get providers paid.
0:46:28
The advance directive that will be forthcoming and that we announced yesterday is but one of the tools.
0:46:34
I do again want to very much caution that it's not the silver bullet.
0:46:38
It is not something that we took lightly.
0:46:41
It is really an unprecedented moment, a unique moment for our nonprofit providers and the New Yorkers receiving services given all of the noise externally, and so we thought it the right thing to do, but we don't think that is a standard practice that we want to subject agencies and nonprofit providers to moving forward.
Kim Yu
0:47:05
If I could, Speaker Adams, want to take one step back from the advances and just really emphasize that the best way to pay contracts on time is to focus on on time contract registration.
0:47:18
And that's why MOCS holds an annual initiative with all of our human service agencies to do, to review the human services plan.
0:47:27
They look ahead to see what the contracting needs are, and we try to hit the target of July 1 of the brand new fiscal year.
0:47:36
And if may, I just want to read off some stats as it relates to the fiscal year twenty twenty six timeliness initiative that we are in the midst of at the very moment.
0:47:47
So the Human Services plans show about 900 contract actions for this upcoming fiscal twenty twenty six year.
0:47:55
They represent 29% increase over the fiscal year twenty twenty five actions.
0:48:01
So 900 this year, six ninety six last year.
0:48:06
So fiscal year twenty twenty six is heavy actions, which includes the procurement method negotiated acquisition extensions, and it doubles the extensions quadrupling from fiscal year twenty twenty five.
0:48:21
The RFPs, request for proposals, have dropped off about 27% from last year.
0:48:28
And if I also could just to highlight the administration's wins from prior fiscal years, as part of the fiscal year twenty twenty five timeliness registration when the plan showed 700 actions, Let's see.
0:48:44
We did 62% of contracts were submitted to the controller for registration by 07/01/2024, and then by 09/03/2024, it was a 90% on time registration.
0:48:58
That is the best tool to ensure timely payment to providers.
0:49:06
And for the most part I'll stop there for now.
0:49:13
Thank you.