Runaway and homeless youth providers told the City Council that the FY26 executive plan’s temporary additions are not enough and urged the city to baseline funding for beds and navigation staff that help youth move from shelter into permanent housing.

Speakers from Covenant House, Safe Horizon and local RHY providers described how bed rates and the cost of running youth residential and drop‑in programs have diverged. Two young people with experience in Covenant House told the Council their shelters were lifesaving and urged the city to increase the “per‑bed” contract rate to better reflect the cost of care and staffing. Covenant House staff and clients asked the Council to raise the per‑bed contract rate to $70,000 and to fund the promised 3% compounding COLA increases for staff.

Safe Horizon and other providers said adding housing navigators and financial‑empowerment specialists has produced measurable housing exits. Safe Horizon reported its navigators helped about 200 youth move into permanent housing and urged the Council to restore baseline funding for the positions after they were funded with one‑time dollars. "These are not bloated programs. These are lean, effective, and essential roles," a Safe Horizon witness said.

Council members and providers also raised concerns about contract registration and cash flow: DYCD told the committee that it has issued new positions and plans to push advances for registered contracts (up to roughly 80% in some portfolios) to address payment delays, but some providers said they still have not been paid in full for FY24 summer services. Advocates asked the Council to prioritize both rate increases and timely disbursement so providers can hire and sustain the staff youth need.

DYCD and ACS witnesses acknowledged the service gaps and said they will continue to work with OMB to identify baseline funding, coordinate contracting and consider RFPs or extensions to stabilize the RHY system. Council members signaled they will press for baseline restorations for peer navigators, housing navigators and per‑bed rate adjustments during adoption negotiations.