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Nonprofit leaders say city law to front-load contracts eased late-payment risk
Summary
UNH and Bronx House leaders described a City Council law that requires 50% of registered contract funds at the start of the fiscal year, a near-protest and ultimately payments arriving in time to avoid program disruption.
Nonprofit leaders on Bronx Talk described a recent City Council law designed to reduce the cash-flow strain that late municipal payments impose on service providers. UNH executive director Susan Stamler said the council passed a law to require 50% of registered contract amounts be paid at the beginning of the fiscal year (July 1).
"Last year, the city council passed a law that required if you have a registered contract, you would get 50% of that contract at the beginning of the fiscal year," Stamler said. She said there were late negotiations in city hall about whether the 50% provision would be honored, and UNH and coalition partners prepared a demonstration to press the issue.
Stamler described organizing at least 14 umbrella organizations to show up in Lower Manhattan; she said the city ultimately "heard us" and that the funds were delivered. "The money did come through," Bronx House CEO Sinclair Hollingsworth confirmed, saying the organization used those funds to keep programs running "without missing a beat."
