State Agency Contracts with Non-Profits

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State Agency Contracts with Non-Profits

May 21, 2024

Memorandum of Support

Re: S4877 Mayer / A2740 Paulin
Reduces the number of days for a state agency to register contracts with not-for-profit organizations to 30; defines registered contracts

The above-referenced bill would ensure a timely procurement process for nonprofits by requiring state agencies to register their contracts within 30 days. The New York State Catholic Conference applauds this legislation and urges its passage.

Catholic Charities has a presence throughout New York State and serves more than 1 million clients annually. For over a century, they have been on the front lines of the most urgent crises facing our State. From homelessness to mental health, food insecurity and disaster recovery, and more recently the huge influx of migrants and refugees, Catholic Charities has partnered with New York to serve the people with their expertise and care.

Unfortunately, the State’s contract and procurement process is notoriously slow, and the problem has worsened in recent years. While nonprofits are required to begin providing services at the start of the contract, the State is not required to pay them within the same timeframe. Nonprofits often take out lines of credit to finance their operations and face economic hardship in these situations. This flawed process harms the countless New Yorkers that rely on Catholic Charities every year by impeding their ability to provide services.

This legislation would bring a welcome change to the procurement process by ensuring contracts are processed in a timely manner and payments are made when work begins. When these needless financial hardships are removed, Catholic Charities will be better able to continue providing the highest level of service to our most vulnerable sisters and brothers. We urge you to support this bill.