RESOLUTION
BY COUNCIL PRESIDENT COLLINS-BELLAMY, MAJORITY LEADER RUBBO, MAJORITY WHIP NORMAN, MINORITY LEADER BREEN, COUNCILMEMBERS, PINEDA-ISAAC, DIAZ AND HODGES:
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A RESOLUTION BY THE YONKERS CITY COUNCIL MAJORITY LEADER JOHN RUBBO URGING THE ADOPTION OF STATE SENATE BILLS 2025-S9761 and 2025-S9855, THAT WILL ENSURE THAT NON PROFIT ORGANIZATIONS WILL RECEIVE TIMELY PAYMENT OF SERVICE RENDERED TO THE STATE, AS WELL AS A BILL THAT WOULD ENSURE A SMALL UPFRONT PAYMENT.
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WHEREAS, State Senate presently has bills 2025-S9761 and 2025-S9855 respectively before them; and
WHEREAS, Nonprofit organizations around the state lobbied in Albany recently for passage of several bills that would address chronic delays in state payments. Groups like the Boys & Girls Club, civil legal services and museums which have been vetted and hired by the state to provide services, are finding themselves in a bind after expected state payments are repeatedly delayed. The situation has led to chronic delays, unexpected borrowing, and cuts in programs. Westchester-area state Sen. Shelley Mayer, chair of the Senate Education Committee, has again sponsored two bills that would ensure the timely payment of services, including a bill that would provide a small upfront payment.
WHEREAS, The first bill, 2025-S9761 is an act to amend the state finance law, in relation to contracting between state agencies and not-for-profit organizations. The purpose of the bill is to make targeted statutory clarifications and procedural improvements to strengthen the administration of the Prompt Contracting Law, improve transparency in written directives, expand access to the existing not-for-profit short-term revolving loan fund, and reduce unnecessary payment delays.
WHEREAS, New York State has long contracted with not-for-profit organizations to provide critical services in communities throughout the state from early childhood education and mental health services to homeless housing programs and substance abuse treatment. These essential social safety net services are delivered as an extension of the state to millions of New Yorkers every day. However, delays in payment and a cumbersome contracting process have long challenged not-for-profit providers.
WHEREAS, This bill seeks to make targeted clarifications and procedural improvements to the Prompt Contracting Law to improve transparency and predict-ability in the contracting process. The Governor vetoed a similar bill in 2025 (Veto 94), citing concerns related to advance payments and automatic interest provisions.
This legislation directly addresses those concerns by removing provisions mandating automatic advance payments and automatic interest adjustments, and instead focuses on targeted procedural reforms that enhance transparency without creating new fiscal mandates. Specifically, the bill requires written directives to include clear schedules for
invoice submission and payment, ensures that not-for-profit organizations receive information on accessing the not-for-profit short-term revolving loan fund, and clarifies the operation of statutory payment timelines and invoice review procedures. By promoting greater clarity, consistency, and predictability in the contracting process, this legislation will help ensure that not-for-profit organizations can continue to provide critical services without disruption, reduce administrative inefficiencies, and strengthen
accountability in state contracting practices.
WHEREAS, The second bill, 2025-S9855, is an act to amend the state finance law, in relation to requirements associated with contracts between state agencies and not-for-profit organizations. The purpose of this bill is to improve the administration of the Prompt Contracting Law by establishing clear and consistent requirements for advance payments to not-for-profit organizations, standardizing timelines for contract modifications, and ensuring the inclusion of indirect costs where permissible.
WHEREAS, Section 1 amends section 179-u of the state finance law to require state agencies to provide a twenty-five percent advance payment within thirty days of executing a contract with a not-for-profit organization; provide comparable advances where services continue under a written directive pending contract renewal. Additional quarterly advances are required if the contract remains unexecuted. Advance payments are not required where prohibited by federal funding restrictions. Section 2 amends section 179-ee of the state finance law to establish timelines for the approval of contract modifications, require inclusion of de minimis indirect costs in not-for-profit contracts where permissible, and allow certain final invoices to be treated as modification requests.
Section 3 sets the effective date.
WHEREAS, By clarifying and standardizing these practices, this legislation is intended to improve consistency and predictability in the contracting process and ensure that not-for-profit organizations have access to funding necessary to continue providing services without disruption.
NOW, THEREFORE, BE IT RESOLVED, that the Yonkers City Council urges the New York State Legislature to adopt, and the Governor to enact bills S9761 and S9855; and
BE IT FURTHER RESOLVED, that a copy of this Resolution be transmitted to Governor Hochul, and Yonkers State Delegation.