Annie Nelson of Children's Aid testifies on need for new Beacon RFP and true-cost funding

Thank you to Chair Stevens, the Children and Youth Committee, and New York City Council for the opportunity to present testimony today.

My name is Annie Nelson, and I'm a policy analyst at Children's Aid.

For over 170 years, Children's Aid has worked to ensure that young people face no limits to their aspirations or potential.

In service of this mission, we operate more than 50 DYCD contracts across New York City, including a Beacon Community Center on a school campus in the Bronx that serves over 600 children, youth, and adults as a year-round community hub.

As a provider operating multiple youth programs, we see firsthand the value of a comprehensive model like Beacon.

Our site operates late evenings, weekends, and throughout the summer because community need does not end when the school day ends.

At our Beacon, community members of all ages can participate in sports and arts programming, academic enrichment, workforce development, adult education, financial empowerment services, and community events and partnerships with other local organizations.

Yet despite strong community demand, these programs are reimbursed at lower levels than other after-school and summer initiatives, creating persistent and growing strains on providers.

At the same time, we know contracts have not comprehensively been

updated in almost a decade, and many requirements and payment structures no longer reflect operational reality.

We really appreciate that city leaders like Chair Stevens are considering the future of Beacon and Cornerstone programs, and we see this as an important opportunity to issue a new RFP that aligns funding and program designs with the reality of these community-based centers.

At a high level, we urge the next RFP first to be developed through early and structured engagement with providers and families, including concept papers before release, to ensure program design and fiscal assumptions reflect on the ground realities.

Second, establish base contract rates that reflect the true cost of operating extended hour multi-generational community centers, including staffing, security, facilities, and the full range of services these sites provide.

This should include dedicated support for programs we know have demonstrated high demand, like adult workforce development initiatives, financial empowerment programming, and food access initiatives.

And finally, include cost of living adjustments in all contracts to stabilize the workforce and sustain service delivery over time.

Without these updates, providers will remain stretched to meet expectations that no longer match funding structures.

Thank you for the opportunity to testify, and we look forward to our continued partnership.