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Q&A
Discussion of Intro 1247 and city's use of advance payments
0:38:34
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146 sec
Council Member Adams inquires about Introduction 1247, which would require 80% disbursement of contract funds upon registration. The panel responds by discussing the city's current use of advance payments and their limitations.
- Michael Sedillo cautions that advances are not a silver bullet for payment issues
- Kim Yu provides data on recent advance payments, including $3.1 billion for FY2025 and $1.85 billion for FY2024
- The administration emphasizes that advances are one tool among many to ensure timely payments
Michael Sedillo
0:38:34
I'll jump in.
0:38:35
Thank you so much for the question speaker, and thank you for the introduction of the bill.
0:38:41
You know, I think one thing we just want to make sure to communicate on the bill, advances, as I think we all know, are not a silver bullet.
0:38:50
There is no silver bullet here.
0:38:52
We do think that exorbitant advance rates really put a number of actors in jeopardy, most importantly the New Yorkers relying on those services, and so I think we just wanna make sure we're thoughtful about that.
0:39:07
And I think given the announcement we made yesterday about an unprecedented level of advances, you know we're really trying to meet the moment with the pain that nonprofit providers have felt over the previous year, but ultimately our end goal is to ensure that New Yorkers are receiving the services and I think that's the invoicing schema that we have here is really built to be able to ensure that the services were delivered.
Kim Yu
0:39:35
And if I could just to provide some data, to just to provide a snapshot on how the city has been utilizing advances, and I'll start reverse chronologically.
0:39:48
So as of fiscal year twenty twenty five advances, we did this data capture at the March.
0:39:56
The administration advanced over $3,100,000,000 in advance payments.
0:40:02
And in addition to that, for fiscal year twenty twenty four at MOX's direction, there's a mid year quote unquote migration advance.
0:40:11
There was a 1,850,000,000.00 in fiscal year twenty twenty four advances.
0:40:16
The transactions on those are upwards of 2,200.
0:40:20
They'd gone out to the sector by 12/20/2023.
0:40:24
So as part of the mid year migration advances, there's an additional $673,000,000 that was released April 24, excuse me.
0:40:38
All to say that we recognize that advances are a significant tool to get cash out the door, but I will also take the opportunity that advances need to be coupled with recruitment and encouraging providers to invoice, but it is one of the many tools in the toolbox to make sure that timely payment is provided to our providers.