Council Member Lee introduces contracting reform bills on nonprofit payment delays
Linda Lee introduces three bills as her second round of contracting reform, addressing the problem of nonprofits not being paid on time by the city, including interest payments to eligible providers to offset borrowing costs during delays.
Councilmember Lee, and finally, Santos Suoso.
Great.
Thank you, Majority Leader and Speaker, Madam Speaker.
Today I'm introducing three bills as the second round of my contracting reform package.
And as many of you know, New York City relies on nonprofits to provide mental health care, support older adults, run programs for our young people, provide legal services for our immigrant communities, and we expect those services to continue without interruption.
But providers cannot always count on the city to pay on time.
Their rent does not wait.
Their payroll does not wait.
And the people they serve cannot wait.
We're addressing a frustrating reality.
Providers can't
can be doing the city's work while unfinished city paperwork prevents them from even submitting a bill.
Even when that paperwork is complete, city invoicing systems can fail.
Providers need a backup.
A computer problem should not become a financial crisis.
And throughout these delays, their own bills keep coming.
Nonprofits borrow money or spend down reserves to stay open.
Interest payments to eligible providers would help offset that burden, and nonprofits do their part.
The city needs to also pay its bills, and our communities count on these nonprofits.
I hope my colleagues will join me in making sure that they can count on us.
Thank you.
Thank you, Councilmember Lee.