Non-profits left waiting for state contracts

Syracuse's WSYR-TV reported that state comptroller Thomas DiNapoli is issuing new regulations to ensure not-for-profits are paid interest owed to them. He found that 63 percent of the time, state contracts with the organizations were approved late.

In central New York, 254 agencies were affected, amounting to $62 million in Onondaga County alone.

We're talking about almost every local not-for-profit you can think of -- the Food Bank, Arise, Home Health Aides of central New York, the National Kidney Foundation.

They may help different people, but they have a common link: They all have promised contracts with the state, but almost always have to wait for the money.

The Alzheimer's Association, for instance, had to wait to receive about $80,000, which is used for programs and services like its adult day program. They're approaching a one-year wait for some of the contracts.

According to the paperwork sent out by DiNapoli, some of the agencies who had to wait the longest include:

• The Syracuse Children's Theater, which waited 671 days to get $60,000;
• The CNY Jazz Arts Foundation waited 697 days for $75,000;
• Family Ties Network waited 432 days for $344,080 for its pregnancy prevention network;
• Liberty Resources had to wait 389 days to receive $21,847. It puts them in a pinch, and they have to find the money somewhere else.

“For us, it means having to tap into reserves,” says Catherine James of the Alzheimer’s Association of CNY.

Under the new regulations, state agencies must prioritize contracts and ensure enough resources to get them approved in time. They will also change the April 1 start date for grants, so the timeliness of the state budget doesn't affect them.

There is a 45-day comment period before the regulations may be finalized. The state was late paying out a total of $2.7 billion. See the video and read more here.