NY Governor Paterson admitted tough times for nonprofits, but pledged his support for the sector, while addressing the Not-For-Profit Leadership Summit on May 11, 2009 in Westchester. Here are some notes and highlights from his talk.
We need to be honest about our finances: 30% of our finances come from Wall Street. The states are mandated to balance their budgets. With sound management we can survive this crisis. Although it will not be without further pain, we will see prosperity in the years to come.
Healthcare spending was counted as part of the state budget for the first time, and there are signs of improvements from other states. For example, all other states will show 8 to 10% increase in spending after the Recovery Act
The margin of survival is less than what the government is currently providing — we are nowhere without nonprofits and the services nonprofits provide.
He announced that New York was second state (after California) to create a cabinet-level position that focuses on service and civic engagement.
There were 360 billions hours of service donated by New Yorkers, mostly seniors, although 57,000 were young people, before high school graduation. The Service America Act will give $2 million to volunteerism in New York State.
QUESTIONS
Nonprofits Getting Their Fair Share
Q: Last year the seriousness of the effects of the fiscal crisis became evident, particularly affecting small nonprofits that couldn’t afford to hire lobbyists. What are the plans to reform the process?
A: At the time I had a great fear that our budget deficits would hit catastrophic proportions. We increased the state allocation to social services for the first time in 8 years. There was a 35% increase of food stamps, and we invested more in homecare. We helped to expand COBRA to 36 months to help the mentally ill as well. We tried to maintain an even sacrifice, although we still shifted money from higher income care to community centers.
MTA Cuts
Q: The new MTA tax will also impact nonprofits, this is a hardship, can nonprofits be made exempt from the tax?
A: The MTA tax on the region in order to come up with the resources. I thought that was not the best solution. I thought the fairest solution would be the tolling sacrifice on some bridge to all the bridges. Other regional plan was the only plan to avoid the 28% increase in the fares. We also cut in 11 different subway lines. The school tax will be refunded to the districts. The nonprofits are under the same encumberance as the schools are, so it’s a slippery slope once you exempt one entity to exempt other. I invite nonprofits to come to Albany to discuss the cost to the state to replenish the tax
Funding for Mental Health
Q: More people are seeking mental health services, yet funding is being cut.
A: Mental health sector’s woes are being exacerbated by financial circumstances. We know the situation is dire — NY State is leading other states in home foreclosures. We have tried not to cut any essential services to mental health community. We are looking to keep the department employee cuts in the different dept. Want to make Timothy’s Law permanent [Timothy’s Law prevents discrimination by prohibiting insurance companies from limiting coverage for mental illness].
Your Accomplishments
Q: As the first African American Governor, what is your best accomplishment, or legacy?
A: That I am still alive (laughter). We passed a bigger, better, bottle bill for the next generation – it was passed 2 weeks ago. For the first time in 26 years, we have legislated the consumption of alcohol. (Does anyone know what he is referring to here?) We have increased the number of women-owned businesses firms that meet the threshold for procurement from 2% to 29%. Now 25% of the firms we do business with are women owned. For minorities, the percentage increased from 2.5% to over 20%.
