The Press & Sun-Bulletin reported that nonprofits that contract with the state are not getting paid because of the late budget, which is forcing some groups to consider suspending services temporarily or closing altogether, according to a new report from the state comptroller.
Aside from the late budget, Comptroller Thomas DiNapoli found that the state's track record of approving contracts on time has worsened. They were approved late 82 percent of the time in 2009, compared to 63 percent of the time the previous year.
"The budget crisis is causing a financial crisis for not-for-profits. It's a double shot of trouble," DiNapoli said in a statement. "Contracts for services are being held up and organizations can't get reimbursed for services they have already provided. It's wrong to expect organizations that operate on shoe-string budgets to float the state."
The comptroller said the state cannot continue to operate with weekly emergency-spending bills. The state budget is now 10 weeks late. Lawmakers and Gov. David Paterson have been unable to reach an agreement, largely because they disagree on how to close roughly $2 billion of a $9.2 billion deficit.
Paterson is expected on Friday to release his emergency-appropriations legislation for next week, which he said would include cuts in mental health and human services.
State agencies spend a total of $41.9 billion on 25,811 contracts with not-for-profits that provide services in employment, day care, health care, weatherization, family planning and numerous other areas. Read more here.
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