Categories: Funding, New York City
07.03.2023
On Friday, June 30th, the New York City Council and Mayor Adams concluded budget negotiations and adopted the Fiscal Year 2024 budget.
The $107 billion budget, approved by a vote of 39-12, represents an increase of $5.9 billion from the previous fiscal year. The budget, while showing some positive developments, falls short in adequately addressing the pressing issues of workforce recruitment and retention in the human services sector. |
- No 6.5% Cost-of-Living Adjustment (COLA) included for the human services workforce. Instead, the budget includes just $40 million allocated for workforce enhancements, falling far below the $250 million for which the sector has been advocating.
- Provider "Flexible Funding" disappointingly remains intact. The directive for DHS and DSS contracted providers requires nonprofits to identify a 5% budget reduction (PEG), theoretically by cutting vacant staff positions, in exchange for the ability to use 2.5% of the reduction to increase wages or recruit staff. While this may appear as a plausible solution for nonprofits with vacant positions, the reality is that these positions often go unfilled due to low contracted wages. Nonprofits should not carry the burden of PEGS for the City.
- No explicit rate increases for NYC 15/15 scattered site contracts – the Network has been advocating for scattered site rates to increase from $10k to $17.5k to meet congregate rates.
- $4 billion allocated for affordable housing capital funding, with $2.5 billion for HPD and $1.5 billion for NYCHA. While pleased with this investment, we are fully aware that this funding will decrease in the out-years.
- $17 million for nonprofits providing services to people incarcerated on Rikers Island was not restored.
- $14.6 million allocated for preventing overdoses and treating addiction.
- $100 million allocated for preserving health care access through NYC Care.
- Right to Counsel program received a $46 million increase in funding.
- B-HEARD pilot expansion seems to remain intact. It is unclear whether the enhancements that CCIT have been advocating for will be implemented. The Network will continue to monitor and update members accordingly.
In addition to the adopted budget, NYC recently held Council primaries. Of note, two incumbents lost their primary challenge, Councilmember’s Barron and Brannan. Councilmember Richardson Jordan did not seek re-election, and the winner of the District 9 primary was Yusef Salaam, an exoneree. The Network will continue to monitor and update information about the NYC Council elections.