City Council, nonprofits press agencies to speed payments and create centralized contracting office

Council members and nonprofit leaders gathered at a New York City Council event to demand faster payment of city contracts and to announce three proposed bills intended to reduce delays that speakers said have left providers unable to pay staff or sustain services.

Council member Julie Wan, who identified herself as the representative for Long Island City, told the audience that nonprofit providers “deserve more than our gratitude. Gratitude won't pay the rent.” Wan and other council members said delayed contracting and slow reimbursements have left nonprofits carrying debt while continuing to deliver services ranging from home-delivered meals to housing and child care.

The issue is widespread, speakers said. Julie Wan and others cited a controller's report showing “more than a billion dollars in invoices” outstanding and a Human Services Council survey figure of about $548,000,000 in late payments. Wan said, in her council district alone, “we're due $23,000,000 for 20 local organizations.”

Why it matters: nonprofit providers deliver many of the city's direct services to vulnerable New Yorkers, speakers said, and long payment delays can force layoffs, program closures and…