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Q&A
Clarification on $5 billion advance payment initiative for nonprofits
0:59:31
·
103 sec
Council Member Julie Won seeks clarification on the recently announced $5 billion advance payment initiative for nonprofits in fiscal year 2026. Michael Sedillo, Executive Director of the Mayor's Office of Nonprofit Services, explains that the advance amounts will vary by program and agency, aiming to provide as much upfront funding as responsibly possible.
- The initiative aims to get funds out quickly while ensuring services are still rendered
- Advance amounts will differ across programs and agencies
- All providers will receive more in advances than in the previous fiscal year
Julie Won
0:59:31
So the announcement yesterday was that Citi estimates advancing nonprofits over 5,000,000,000 in fiscal year twenty twenty six up to 2,800,000,000.0 initial advances issued during fiscal year twenty five.
0:59:43
So will the 5,000,000,000 advances that the mayor announced yesterday be a specific upfront percentage or is it a dollar value?
0:59:49
The 5,000,000,000 sounds like a lot but the city contracts are 8,000,000,000 for human services contracts alone not including others.
0:59:57
So can you help us understand since it wasn't part of the announcement?
1:00:41
So you're saying that it's gonna be different per agency?
Michael Sedillo
1:00:02
Absolutely, thank you for the question Chairwon.
1:00:05
Really our goal in working on this together and working with our partners at OMB and City Hall leadership was how much can we get out the door as quickly as possible, as responsibly as possible to ensure that services are still rendered.
1:00:18
And so I think it is difficult to do an across the board mandated percentage when you get above the 25% standard.
1:00:27
And so we had to really soberly look at what was possible program by program, take into consideration agency feedback, and I think what we're confident in saying is that where we landed is as much as we could possibly and responsibly do for our providers and for our city agencies.
1:00:44
It will probably be different across programs and we will be announcing that very soon from a MOX directive and working with our agency partners in the coming days and we'd be very happy to brief you all in partnership before perhaps it goes out to our providers to make sure that we have your support from a messaging standpoint.
1:01:03
But yes, think it's safe to say as comfortably as we could go, as high as we could go everywhere, and we're confident in saying that everyone's gonna get more than they got this last year.