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Q&A
Commissioners and panelists discuss workforce impacts and further financial consequences of payment delays
0:56:53
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153 sec
Commissioner Diane Savino requests follow-up information on how payment delays impact nonprofit workforce recruitment and retention. Commissioner Dr. Lisette Nieves asks about the total financial cost beyond just interest, including potential late fees or penalties incurred by nonprofits. Lauren Siciliano (Legal Aid) elaborates on the issue of funds being confirmed too late in the fiscal year, making it impossible to spend them before they are clawed back by the city, exacerbating financial strain.
- Payment delays negatively impact nonprofit staff recruitment and retention (HSC to provide further info).
- Financial costs include interest, potentially other fees, and the loss of allocated funds due to timing issues.
- Delayed confirmation of funding prevents nonprofits from spending allocated money, leading to it being returned to the city.
Dr. Lisette Nieves
0:56:53
So so just not not to you
Diane Savino
0:56:54
know, Valerie's question, not to not to slow this down, but it's interesting.
0:56:59
You mentioned the issue of the workforce and workforce development.
0:57:01
Is there any way that you could provide to us, not tonight, but at some point in the future, the impact of the slowdown of payments and your ability to recruit and retain people in this sector, whereas over the past thirty some odd years, the government has transferred most
Louisa Chafee
0:57:15
of the responsibility of social services to the nonprofit sector.
Michelle Jackson
0:57:18
Yeah.
0:57:19
I would love to share and talk more about that.
Dr. Lisette Nieves
0:57:24
One last question to ask.
0:57:25
I'm not gonna be labor because it really was one request of the money that you have to pay out in order to to manage your budget in a way that you have to get Right?
0:57:36
Because you're paying on.
0:57:40
You're paying on interest.
0:57:41
Mister Jack mentioned late fees and penalties.
0:57:44
There is a cost to it in late money.
0:57:47
Of course, there's a human services request, but there's a financial question as well.
0:57:51
I think, miss Jackson, you said that you had a report that you shared with us because I think that goes into the accountability section.
0:58:00
How do you get for that money?
0:58:02
And, miss say it correctly.
0:58:06
The legal aid on the national level is one of the agency that's being looked at in terms of potential federal.
0:58:15
I I would imagine this conversation right here is very critical.
Lauren Siciliano
0:58:20
It's it's certainly critical for lots of reasons.
0:58:22
Absolutely appreciate the time tonight.
0:58:24
And I did
Dr. Lisette Nieves
0:58:25
just wanna echo one of
Lauren Siciliano
0:58:26
the the points that you're making about the timeliness, not just of receiving the funding,
Michelle Jackson
0:58:31
but of having the
Lauren Siciliano
0:58:32
amounts.
0:58:32
So when just to add a
Dr. Lisette Nieves
0:58:35
five points to that, when the
Lauren Siciliano
0:58:36
amounts are deferred six, nine months into the fiscal year, there's no way there's no way we could plan to spend that money.
0:58:43
So there's no way that we will actually be able to spend that money by the end of
Louisa Chafee
0:58:47
this year, which then means
Lauren Siciliano
0:58:48
we can essentially dispose back to
Dr. Lisette Nieves
0:58:50
the city.
0:58:50
So whatever the commitment was in terms of the of the contract, less is actually spent due to the the confirmation in the notes.
0:58:59
But can you use the excess money to pay for the money that you want?
0:59:05
Yeah.
0:59:06
You you very Yeah.
0:59:07
And that and so you still have to have have money to, you know, pay for the money that you may or may not get at enough, then you don't know.
0:59:17
Exactly.
0:59:18
So that and so that's that's a big question and understanding your thoughts on how to stop that.
0:59:24
And you guys have done a lot of that.