Gotham Gazette

The Place for New York Policy and politics

Rebuilding NYC

An Essential Use of the State Budget Surplus


fdny foundation cpr

FDNY Foundation is one Human Services Council member organization (photo: FDNY Foundation)


Thousands of New York State residents depend on the state's non-profit human services organizations during times of disaster and unforeseen crisis. But unless we reinvest in this struggling industry, New Yorkers could find themselves left without resources in their greatest time of need.

Following the attacks of September 11th and the aftermath of Superstorm Sandy, human services organizations emerged as indispensable first responders that know the intricate needs of their communities. They are on the front lines providing for basic needs like food and water, safe shelter, crisis counseling immediately following a traumatic event, and extended ongoing assistance related to housing, jobs, legal matters, finances and mental health.

Employees of human services organizations have embraced opportunities to support those victimized by disasters. After Superstorm Sandy, the State awarded a contract to provide case management services for victims who needed help with housing, health care, transportation, and a myriad of other services. The Disaster Case Management program has thus far served approximately 9,700 cases, 5,000 of which remain active.

Unfortunately, the majority of human services organizations are not adequately funded by the State. Since 2010, the State has cut $1 billion from this sector, leading to the loss of 27,000 jobs. In a recent survey of the state's non-profit sector, 42% of respondents said they do not have the resources to continue to operate over the next three years.

For nonprofits to assist in disaster response and recovery, they must be fiscally sound. After Superstorm Sandy, local organizations provided frontline assistance at a significant monetary expense with no guarantee that they would be reimbursed; in fact, in a survey after the storm, only about 20% of surveyed organizations expected to be reimbursed for services provided. After September 11th, nonprofits relied on deficit spending and endowments to buy what was necessary and serve where they could, but after Sandy, many felt that similar actions would put their organization's finances in jeopardy.

Our ability to react effectively to another disaster is very much in question. If another disaster like Superstorm Sandy were to happen tomorrow the human services sector would not be financially prepared to yet again address the immediate and ongoing needs of our communities. This is a very troubling situation.

Fortunately, a remedy lies in the state's $5 billion budget surplus.

The Human Services Council, an association of approximately 200 of the state's leading human services organizations, is currently leading a campaign calling on Governor Cuomo to include a $354 million investment in the human services sector in the next Executive Budget. This would ensure that organizations providing disaster relief have the tools to react effectively when needed, help stabilize the sector, and save jobs.

For five years, the State has deferred its statutory responsibility to provide cost-of-living increases to contracts for state-funded human services, a total loss of $354 million to the sector. This short-sightedness has translated to thousands of layoffs, no raises for the employees providing disaster relief services, and the severe straining of our state's system of human services delivery.

A strong nonprofit infrastructure is crucial to communities, especially in a disaster where nonprofits can be first responders. Nonprofits must have the resources to act when needed, and the current state of funding for human services has crippled our ability to serve. A $354 million investment by the State would alleviate these concerns.

With a virtually unprecedented state budget surplus of $5 billion projected for the next year, Governor Cuomo must not miss the opportunity to better equip human services organizations to ensure the well-being of our citizens - and to continue to leap to the forefront when disasters occur.

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by Allison Sesso, Executive Director, Human Services Council, Inc. Find her on Twitter @AllisonSesso

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@GothamGazette

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