More cuts coming for state's ARCs

By: James M. Odato

If you work for one of the 49 organizations within the New York ARC network, the state budget adopted last week will affect your job. And it could result in the freezing or cutting of salaries of ARC executives, many of whom are compensated beyond Gov. Andrew Cuomo's comfort level.

Indeed, several executives of ARCs, formerly known as Association for Retarded Citizens, are paid well above the $199,000 threshold Cuomo has set under restrictions that take effect in July, according to new regulations posted on the Division of Criminal Justice Services website a few days before the budget was passed. Many more are paid a salary above the $136,000 earned by Office for People With Developmental Disabilities Commissioner Courtney Burke.

The governor's order calls on the Budget Division to oversee nonprofit administrative expenses. Penalties such as suspension or denial of funds could be levied if nonprofits overpay their executives, although waivers will be considered.

The governor's limits on administrative expenses arrive as the new budget takes effect. It calls for $90 million in reduced state funding for ARCs and other service providers who help developmentally disabled people. (The cut is matched by another $90 million lost from the federal government.) The Cuomo administration pared funding because of sharply reduce reimbursement rates set by the federal government.

Asked how these nonprofits are to manage with $180 million less, the Budget Division's spokesman Morris Peters said the organizations will need to look at their expenses.

"The savings will be implemented following consultation with a workgroup of relevant parties," he said. The goal is "to generate savings via reduced administrative costs, enhanced audit recoveries, and improved program efficiencies."

Ben Golden, director of government affairs for NYSARC Inc., the parent company of the statewide string of ARCs, said most chapters — whose combined budgets total $1.7 billion— have cut all they can: "The money's just not there anymore."

State expectations of further retrenchment also follow Cuomo's push for consolidation of governments and school districts.

Golden said the ARCs are investigating ways to share services, particularly backroom operations, and some mergers could be explored to reduce administrative overhead.

His organization, he said, will cooperate. NYSARC head Mark Brandt, whose compensation included $220,171 in base pay and another $67,773 in additional income for 2011, has supported Cuomo's executive salary initiative.

Many countywide ARC chapters' executives are approaching the Cuomo limit. Others have blown through it: New York City's chapter paid top officer Michael Goldfarb $664,157 (including $498,779 in base pay) and Associate Executive Director Robert C. Gundersen $666,444 (including $489,434 in supplemental retirement benefits) in 2011. Eight others at the chapter exceeded Cuomo's cap that year by more than $150,000 each.

"We understand this is a sensitive issue," said Golden. "When it comes time to ask for a waiver or comply with that, we will certainly do that."

Some mergers have been accomplished. Ulster and Greene counties now have one chapter, and the Warren-Washington ARC merged with Albany's.

Longtime administrator of the Saratoga chapter of ARC Valerie Muratori said the organizations need top-notch managers to create and implement programs with receding revenues. And the groups need good fund-raisers to tap charitable donors as well.

In the past year, Muratori said, she has had to eliminate 40 positions, from maintenance workers to managers, because of shrinking public aid. She manages 550 workers who provide services to 800 people. Her pay, after beginning at the organization at the ground level in 1983, is $150,669, plus $15,210 for the use of a car. "I do believe there is a feeling on the part of certain state officials that there should be fewer providers in our field and there should be some evaluation on the numbers of organizations providing our services," she said.

All of the organizations will receive 4.5 percent less than last year. For Saratoga's ARC, that is about a $1 million cut.

"One of my concerns is that you really want people to work in this field," Muratori said. "You want people who enjoy working directly with people with developmental disabilities, and you also want people who have the skill sets to create services, design services and manage them and come into the field and be leaders."

Read more: http://www.timesunion.com/local/article/More-cuts-coming-for-state-s-ARCs-4398671.php#ixzz2PWlH7YNs

Comptroller Thomas P. DiNapoli's Weekly News

News From State Comptroller Thomas P. Dinapoli

DiNapoli: General Electric Agrees to Examine Risks from New PCB Hotspots in Hudson

General Electric Corp. has agreed to prepare an analysis of the actions required to remove recently discovered polychlorinated biphenyl contamination contaminated sediments from the Hudson River and report its findings to shareholders, New York State Comptroller Thomas P. DiNapoli announced Monday. The analysis will be completed by the end of 2013. In response to the agreement, DiNapoli withdrew a shareholder resolution calling on the company to do such an evaluation.

DiNapoli and Saratoga DA Murphy: Former Fire District Treasurer Pleads Guilty to Stealing Taxpayer Funds

The former treasurer of the Charlton Fire District has admitted to embezzling $500,000 in public funds as the result of an audit and investigation by State Comptroller Thomas P. DiNapoli and further investigation by Saratoga County District Attorney James A. Murphy, III and the New York State Police.

DiNapoli: Argyle Clerk Rings Up $8K in Personal Debt on Town Credit Card

A former clerk in the Town of Argyle in Washington County used a town credit card to purchase more than $8,000 in personal expenditures, which included $2,900 to a flooring contractor and $1,500 to an insurance company, according to an audit released Monday by State Comptroller Thomas P. DiNapoli.

DiNapoli: Mill Neck Manor Overcharged Taxpayers by More Than $280,000

Mill Neck Manor School for the Deaf, a Nassau County provider of special education services for children with hearing disabilities, charged taxpayers more than $280,000 it wasn’t entitled to, including extra salary and benefits for the school’s executive director, according to an audit released Thursday by State Comptroller Thomas P. DiNapoli.

DiNapoli: Challenges Remain For New York City Budget

New York City’s budget is balanced in the current fiscal year and Mayor Bloomberg has presented a balanced preliminary budget for fiscal year 2014, but a number of issues pose significant budget risks in the years ahead, according to a report released Tuesday by New York State Comptroller Thomas P. DiNapoli.

DiNapoli: Nassau County Needs to Improve Contract Process

While Nassau County is following established guidelines for approving contracts, the authorization process often misses approval deadlines, according to an audit issued Thursday by State Comptroller Thomas P. DiNapoli. Auditors found that because of the lengthy review process vendors began working on half the contracts an average of seven weeks prior to the contract being signed by the county.

Comptroller DiNapoli Releases Municipal Audits

New York State Comptroller Thomas P. DiNapoli Tuesday announced his office completed audits of the theTown of Columbus; the Town of Hamlin; the Village of Lyndonville; the Town of Mansfield; the Town of Otselic; and, the Town of Pittstown.

Comptroller DiNapoli Releases School Audits

New York State Comptroller Thomas P. DiNapoli Tuesday announced his office completed audits of: theNiskayuna Central School District; the Patchogue–Medford Union Free School District; the Pine Bush Central School District; and, the South Glens Falls Central School District.

To see the article online click here.

National Council of Nonprofits Offers 3 Ways Board Oversight Keeps Nonprofits Out of Trouble

This article was reprinted with permission from Nonprofit Knowledge Matters, a publication of the National Council of Nonprofits.

What is “Oversight” Anyway? 

Board members are told that their role is to provide “oversight.” But what does that really mean? We were curious to investigate how board governance “experts” define board “oversight." We compiled this “Top 3 list” in case you are curious too.

1.  Follow-through (aka “accountability”). What good is setting policy if the policies aren’t followed? Ellis Carter, Esq., author of the CharityLaw Blog, points out in her piece titled, “Top 15 Non-profit Board Governance Mistakes (From a Legal Perspective)," that exercising oversight is all about making sure that someone (the board) actually follows up on the authority the board delegates to staff and committees:“Oversight is commonly exercised through policies and procedures so long as the board ensures that the policies and procedures are actually followed.” An example of the follow-through challenge for boards is apparent in boards’ relationships with executive directors. In that relationship, appropriate “oversight” includes selecting the “right” person to lead the organization, reviewing and approving the appropriate level of compensation for the staff leader, evaluating his/her performance, and ensuring that there is a leadership succession plan in place. But as we know from numerous surveys and reports, including BoardSource’s Nonprofit Governance Index 2012, one of the oversight balls that boards are most likely to drop is evaluating the executive director’s performance. If boards were better at follow through, they would be regularly evaluating executive directors. More consistent follow-through would also help to avoid common symptoms of tensionbetween the board and CEO that signal insufficient (and indeed, a harmful lack of) oversight. 

2.  Seeing sustainability, not just dollars (aka “financial oversight”). When a board reviews the organization’s budget or considers whether adequate internal controls are in place, these activities are quite properly part of a board’s financial oversight responsibilities. But too often, the activities focus on the immediate cash flow instead of long-term sustainability. Boards that see their role as monitoring the financial health of the nonprofit, rather than just the financial status, will be more likely to ensure that there will be enough resources in the pipeline to continue providing programs -- or alternatively -- that it’s time to make a course correction. As Jeanne Bell, CEO of CompassPoint, points out in her Nonprofit Quarterly article, "Beyond Financial Oversight, Expanding the Board’s Role in Pursuit of Sustainability," in practice “financial oversight” is often defined as a handful of board members who monitor timely financial reports and drill down on budgets. Unfortunately only infrequently do boards look at the organization’s financial sustainability, which Bell describes as the entire “interdependent mix of programs and fundraising activities that work together to achieve a set of impacts and financial results.” As Jan Masaoka points out in her Blue Avocado article, "Ten Myths About Nonprofit Boards," it’s a myth that approving budgets is the “cornerstone” of the board’s financial oversight. By viewing its financial oversight role through a strategic lens, instead of merely an approve-the-budget lens, boards are more likely to see farther, towards financialsustainability. We like the practical way Andy Robinson and Nancy Wasserman put it in the chapter of The Board Member’s Easier Than You Think Guide to Nonprofit Finances entitled, “Finding the Best Altitude For Financial Oversight.” The authors point out that “inexperienced boards tend to work at the wrong altitude by focusing on details better left to staff….” (How’s that for “oversight”?) They offer a chart illustrating examples of what’s properly the board’s role (example: “use actual financial data for planning, oversight, and evaluation”) versus the domain of staff (example: “develop a diversified fundraising plan reflecting budget goals and organizational needs”).

For more insights from these authors on the board’s financial oversight role, we share this author interview with our readers.

3.  Avoiding trouble (aka “legal compliance"). While board members are not expected to know every law or regulation that applies to the operations of the nonprofit they volunteer for, it’s clear that making sure that the nonprofit does not violate any laws (or overstep its mission) is the board’s role. In fact, BoardSource includes legal compliance right at the top of its list of “What do boards do?”  What if the board doesn’t know what legal obligations apply? As a fiduciary, the board is expected to either learn – or delegate that role to someone else (which then triggers the follow-through oversight requirement) so that the board can be assured that all the bases are covered. In order to be able to provide oversight in this area, boards should try to learn enough about the applicable legal requirements to ask the right questions, such as “Have we filed all the required annual filings with the IRS?” Fortunately, the IRS has improved its website in recent years so it’s relatively easy to research IRS requirements. For state law requirements, the National Council of Nonprofits’ network of State Associations offers board training and state-specific guidance about legal requirements for charitable nonprofits in their states. Reviewing basic legal requirements during board orientations is one way to prepare new board members for their legal compliance oversight role. But even with that background, some board members may not connect the dots between their own oversight responsibilities and the risks of non-compliance. Charity regulators are not shy about investigating the conduct of a nonprofit board, or even proposing their own list of “best practices” for nonprofit boards (such as this very long list of board oversight recommendations produced by Kentucky's Auditor of Public Accounts). When a legal requirement, such as filing annual reports with a Secretary of State, has been missed, this is a red flag for state regulators to investigate the overall conduct of the board, and that could spell a “heap of trouble” for the nonprofit. Consequently, board oversight for legal compliance needs to be taken seriously.

A board that is governing from a perspective of “Let’s follow-through, stay at the right altitude, and take the high road to stay out of trouble” is more likely to focus on how effective the organization is in addressing its stated mission. A board that takes its oversight role seriously is also more likely to spot issues that could spell trouble for the organization down the road – or around the next bend. When a board realizes that it is accountable for not only the “good,” but also “the bad, and the ugly,” that board is more likely to take its oversight role as a champion for the nonprofit’s mission and fiduciary for its assets seriously; those are the boards that will stay out of trouble.

We hope that these musings on the top three ways boards’ oversight keeps nonprofits out of trouble helps you find the right “altitude” for your own board’s oversight. Don’t forget to check the sidebar for more resources, including our invitation to attend a free webinar, Nonprofit Audits in a Nutshell, on March 28^th 3:30-4:30 pm (Eastern), sponsored by First Nonprofit Foundation. Jenifer Holland, a governance consultant with BoardSource, will address the board’s role in the audit process.Join us!

Nonprofits confront cutbacks in Sullivan

By Victor Whitman

BETHEL — More than 100 people representing some of Sullivan County's largest employers attended an annual gathering of nonprofits at Bethel Woods Center for the Arts on Wednesday.

Speakers at the Nonprofit Leadership Summit 2013 emphasized that state and federal cutbacks, combined with a flat, charitable-giving environment continue to put the squeeze on the county's nonprofits.

At the same time, New York's rules and regulations and other hurdles, like turf battles among the nonprofits themselves, remain obstacles when these organizations try to share costs and collaborate to provide services more efficiently.

Three years ago, county officials came up with the idea of inviting nonprofit leaders to an annual summit at Bethel Woods. Linda Hartley, one of the three summit organizers, said the gatherings have had mixed results in fostering collaborations.

Nonprofits like the Center for Discovery, New Hope and Catskill Regional Medical Center form the backbone of the county's economy.

Catskill Regional and New Hope sent representative to this year's seminar. Catskill Regional Medical Center spokesman J.P. McGuirk said the hospital comes more for the tips from the speakers than for the opportunity to network with other nonprofits.

"There is a lot of pressure with federal and state cutbacks," McGuirk said. "We have to come up with new and creative ways to raise money and operate."

Hartley said the biggest success to date is a growing cooperation among several county arts organizations, including Bethel Woods and the Delaware Valley Arts Alliance.

She said representatives of roughly 15 arts groups got together during a breakaway session last year and continue to meet with the Sullivan County Visitor's Association. They are planning an annual festival. She said other collaborations have been harder to foster.

Doug Sauer, chief operating officer of The New York Council of Nonprofits, said partnerships can involve simply sharing information all the way up to merging. One major obstacle to forming close, legally binding affiliations, he said, is that New York state doesn't make it easy. Although nonprofits in other states can apply online and complete the process in a few months, combining services usually takes years in New York state and requires approval from multiple state agencies, he said.

Other speakers gave tips on the use of social media, recruiting volunteers and leadership building.

While organizers were pleased with the turnout, only a small percentage of the county's 600 registered 501(c)(3) organizations, attended the summit. (A 501(c)(3) organization is a charity or public service entity that qualifies for tax exemption under that section of the tax code.)

Organizers are also attempting to compile a database of the county's active nonprofits.

"We still need to have more people," Hartley said. "There are some here, but not enough."

To see the article online click here.

NYSACRA Action Alert

NYSACRA Action Alert

PLEASE consider reaching out to your assemblyman and senator to express your concern over the cuts proposed below. Springbrook provides invaluable support to people with developmental disabilities. The proposed 6% cut equates to $1.2 million for this organization.The proposed 6% cut equates to $1.2 million for this organization. The phone calls take less than a minute each. PLEASE PLEASE call.

As you are well aware, the proposed 2013-14 Executive Budget proposes a 6% across the board cut to all voluntary not-for-profit providers throughout the State of New York, effective April 1, 2013.  If this cut is enacted, the developmental disabilities system of supports and services will be negatively impacted, dramatically.  NYSACRA has received information from members as to how the reductions will be absorbed if a restoration is not successful.  Agencies will be forced to: reduce services and supports, eliminate entire programs, layoff all levels of staff including direct support professionals.  We all know how this will translate if the cuts are to be taken: the great strides we've made as a sector will quickly erode and the quality of life for people with intellectual and developmental disabilities (I/DD) will be negatively impacted.

Both houses of the State Legislature are in the process of negotiating and getting ready to release the respective one-house budget measures.  While we understand the 6% across the board cut to the not-for-profit developmental disabilities sector is gaining great attention in the State Legislature, we need to continue advocacy efforts and therefore we are asking agencies, parents and family members, agency staff and direct support professionals, self advocates to make two telephone calls this week.

WHO TO CALL:

Please make two telephone calls, one to your State Assemblymember and the other to your State Senator in their Albany Offices

WHEN:

This week (the week of March 4^th)

WHAT'S MY MESSAGE:

"I'm a constituent and I am concerned the proposed 6% across the board cut to the not-for-profit developmental disabilities providers will negatively impact supports, services and programs.  I wish to thank my Assemblymember/Senator for his/her support of people with intellectual and developmental disabilities and ask him/her to support restoration of the 6% proposed cut in the one-house budget bill."

HOW:

Contact the Assembly Operator at 518-455-4100 and ask to be transferred to your Assemblymember's Office. (if you do not know who your Member of the Assembly is, go towww.assembly.state.ny.us to identify your Member.  You may also obtain his/her direct Albany Office telephone number, rather than going through the Assembly Operator).

Contact the Senate Operator at 518-455-2800 and ask to be transferred to your Senator's Office (if you do not know who your Member of the Senate is, go to www.nysenate.gov to identify your Senator. You may also obtain his/her Albany Office telephone number on the website, rather than going through the Senate Operator).

THANK YOU FOR YOUR ONGOING ADVOCACY AND EFFORTS!

LOOK FOR MORE NYSACRA ACTION ALERTS

THROUGHOUT THIS WEEK AND NEXT WEEK

Sequestration and Nonprofits in New York State

Sequestration and Nonprofits in New York State: Telling the Story of Impact on the People We Serve

When Washington policymakers failed to reach agreement to stop the $85 billion in arbitrary budget cuts known as “sequestration,” they let loose a wide array of cuts and changes that are likely to be felt first and frequently by charitable nonprofits. We feel that the best way to demonstrate the adverse effect of sequestration on our communities is for charitable nonprofits like yours to share the stories and data of what it means to the people you serve. That is why the websitewww.GiveVoice.org has been launched by the National Council of Nonprofits.

As a member of the New York Council of Nonprofits, you are part of the nation’s largest network of charitable nonprofits, connected through the National Council of Nonprofits. This network is mobilizing to (a) alert the nonprofit community about how the new federal sequestration cuts will affect almost every charitable nonprofit in America – even those without any government contracts – and (b) start documenting the effects of the sequestration cuts on the work of nonprofits and the communities we all serve.

The cuts mean that nonprofit staff members and board members must raise billions of dollars more this year alone to handle the resulting increased demands for services.  We encourage you to visit www.GiveVoice.org to see how sequestration will have multiple ripple effects and then share your data and stories about what the cuts mean to the work of your nonprofit (including changes to your own staffing levels) at www.GiveVoice.org so state, subsector, and national trends can be analyzed the story of the impact can be documented and demonstrated.

Historically, the nonprofit community has suffered because we have been fragmented and separated into different silos. This new GiveVoice.org resource allows nonprofits here in New York to learn together and lift our voices together for the public good.

Thanks for your membership in New York Council of Nonprofits; by coming together, the nonprofit community can better serve our broader communities across New York.

NYCON webinars this week, more to come!

[Tomorrow!] NYCON Member Benefit Spotlight: Budget & Cash Flow Toolkits Every fiscal staff members best friend... Learn More on February 27th at 10:00am Just in time for budget and cash flow planning, NYCON has developed a new benefit for our member that will truly be the "best friend" of every fiscal person who uses it!  Designed with the needs and resources of the smaller to medium sized nonprofit in mind, NYCON's Chief Fiscal Officer and staff have designed a "fool proof" tool for developing a streamlined, compliant and easy to understand budget.   The features of the Budget Toolkit include: Built in instructions on "Getting Started" and"How to Develop Your Budget" Built in formulas and linked spreadsheets Definitions & Glossary on types of budgets, frequently used budgeting terms & more Helpful notes that 'pop up' as you create your budget spreadsheet  Quick and easy allocations (for shared costs like space and supplies, etc.) Templates that your organization can utilize to customize for your own organization's budget and salary and fringe expenditures. And more! Experience the Budget Toolkit for yourself. Learn More on February 27th at 10:00am  On this webinar we also featured the new "Cash Flow Toolkit" which, just like the Budget Toolkit, will be a great addition to any nonprofit fiscal office.

[Thursday!] Free Tour of  Grantstation.comFebruary 28th   10:00am to 11:00am  Register Today Join Ellen Mowrer, GrantStation's Business Development Advisor, for a free webinar that offers a short tour of the GrantStation website. This tour will provide tips on the most effective way to use all of the valuable resources the website offers; including the extensive funder databases that can help you identify the right grantmaker for any program or project. During this webinar we will also introduce GrantStation's new interactive Grants2020 visioning tool! There will be plenty of time for questions. This webinar will be held Thursday, February 28, 2013. Did You Know? As a NEW Membership Benefit of NYCON, ourprogram now also allows a discount on Grantstation Membership - which gets you full access to GS.com - for only $75! Click here for more information.

New Year, Great Time to Explore New Employee Benefits that You Can Afford!   We know that the Employe Benefits "Market" can be complicated.  Our job is to help make that world more simple, and affordable for nonprofits. To help you understand each type of benefit, it's coverage features and it's costs we are rolling out a series of short 30-minute webinar spotlights on our administered programs: Health Insurance, Dental Insurance, Flexible Spending Accounts and our Vision Program - which is new for 2013! To see the online article click here.

N.Y. cities seek revenue sources other than property taxes

ALBANY — If Syracuse raises property taxes 1 percent, the city would get about $300,000 in revenue. Its pension bill is rising by $15 million next year.

If the city of Rochester raised property taxes to its constitutional limit, it would bring in $32 million in additional revenue. That would only be enough to cover the city’s budget deficit for next year.

While much of the focus of upstate cities’ financial problems have been on rising costs for pensions and health care, they are dealing with just as many problems on the revenue side of their ledgers.

“There has been a fundamental change in these places,” Rochester Mayor Thomas Richards said. “That fundamental change means that we just can no longer generate enough revenue to pay our expenses.”

Property taxes and state aid are cities’ main revenue sources. But a dwindling manufacturing sector, a glut of vacant properties and growing poverty have made property taxes a less reliable foundation for their budgets.

“Either with abandoned properties or tax-exempt properties, you can get just so much out of the folks who are still able to pay taxes,” Comptroller Thomas DiNapoli said.

Yonkers, which has property values four times higher than the average of other upstate New York cities, has also struggled with revenue. Property values declined 24 percent from 2008 to 2011 in Yonkers, a report Tuesday from DiNapoli found.

Yonkers Mayor Mike Spano said last month that the city’s sales-tax revenue has increased in recent years, and there is some positive economic development. But it hasn’t made up for growing costs. He wants a state task force to look at cities’ problems.

“We still need to address the core issues that are facing cities,” he said after a budget hearing in Albany. “They will not be able to tax their way, cut their way nor borrow their way out of their issues. There needs to be a new matrix put in place.”

Last month, Moody’s Investors Services downgraded Binghamton’s credit rating and said it could take further steps against the city, citing its fiscal woes and diminishing tax base.

New Benefits & New Webinars for Members

NYCON Member Benefit Spotlight: Budget & Cash Flow Toolkits! Every fiscal staff persons' best friend... Learn More on February 27th at 10:00am Just in time for budget and cash flow planning, NYCON has developed a new benefit for our member that will truly be the "best friend" of every fiscal person who uses it!  Designed with the needs and resources of the smaller to medium sized nonprofit in mind, NYCON's Chief Fiscal Officer and staff have designed a "fool proof" tool for developing a streamlined, compliant and easy to understand budget.   The features of the Budget Toolkit include:   Built in instructions on "Getting Started" and"How to Develop Your Budget" Built in formulas and linked spreadsheets Definitions & Glossary on types of budgets, frequently used budgeting terms & more Helpful notes that 'pop up' as you create your budget spreadsheet  Quick and easy allocations (for shared costs like space and supplies, etc.) Templates that your organization can utilize to customize for your own organization's budget and salary and fringe expenditures. And more! You have to see all the features to believe it!   Experience the Budget Toolkit for yourself. Learn More on February 27th at 10:00am  On this webinar we also featured the new "Cash Flow Toolkit" which, just like the Budget Toolkit, will be a great addition to any nonprofit fiscal office.

Pros and Cons of  Restructuring a Nonprofit: What it Means for your Staff and Board February 13th, 2013   10:00am to 12:00pm Doug Sauer, CEO, NYCON Last Chance to Register This thought provoking, insightful event will provide you with knowledge gleaned from decades of Doug's work with hundreds of nonprofits in various stages of formal restructuring, shared service models and, certainly, merger. Doug, perhaps more than anyone on the national nonprofit "scene," knows first-hand that merger (or any type of structural "re-engineering" of your organization) is a serious solution to the very complex issues facing today's nonprofits. Join us and learn from Doug's real world and very practical experiences. Doug will be talking about the variety of options available for restructuring a nonprofit, what the potential benefits and very real risks are -- as well as what the process of going "beyond collaboration" is really like.There will be time for Q&A at the end of the online session so make sure you take advantage of having our resident expert available to you. Last Chance to Register

Free Tour of the GrantStation Website for NYCON Members Thursday, February 28th   10:00am to 11:00am  Register Today Join Ellen Mowrer, GrantStation's Business Development Advisor, for a free webinar that offers a short tour of the GrantStation website. This tour will provide tips on the most effective way to use all of the valuable resources the website offers; including the extensive funder databases that can help you identify the right grantmaker for any program or project. During this webinar we will also introduce GrantStation's new interactive Grants2020 visioning tool! There will be plenty of time for questions. This webinar will be held Thursday, February 28, 2013.Did You Know? As a NEW Membership Benefit of NYCON, ourprogram now also allows a discount on Grantstation Membership - which gets you full access to GS.com - for only $75! Click here for more information.

NY Gov. Cuomo Submits Budget With $1.3 Billion Deficit

NY Gov. Cuomo Submits Budget With $1.3 Billion Deficit
By Kristen Meriwether

NEW YORK—During his third budget address as governor of New York state, Andrew Cuomo, showed just how important a decimal place is. The first slide in his presentation popped up showing a $13 billion budget deficit.

“I just wanted to make sure you guys were paying attention,” Cuomo quipped, to laughter from the crowd gathered at Hart Theatre, Center for the Performing Arts, Albany.

It made the $1.3 billion deficit seem not so bad.

After successfully passing two on-time and balanced budgets during his first two terms in office, Gov. Cuomo, submitted this year’s budget with promises for a historic third year in a row, something not done since 1977 in New York state.

“I wouldn’t say it is a Swiss watch, but it is working better than ever before,” Cuomo said.

Following his passionate State of the State speech two weeks ago, Cuomo aimed to answer the question on everyone’s mind when he rattled off new initiatives and ideas—how are we going to pay for that? While the governor showcased new spending, and cuts, all the while not raising taxes, he let municipalities know the days of reaching for a handout in Albany are over.

“There is no piggy bank in Albany anymore,” Cuomo said.

To alleviate the stress from struggling municipalities, Cuomo proposed a financial task force that would—much like a private company going through bankruptcy—restructure debt and fix the problem.

Much like the federal government, New York State is hoping to kick-start the shaky economy with economic development. Without a surplus of money, the state will have to be smart in how it does it.

“The state is no longer in a position to do this on its own so he is talking about a lot of partnerships,” said Bruce Berg, professor of political science at Fordham University. “The state will be the catalyst, the engine, but it will be the private sector that does much of the growth.”

Unlike in years past where large ambitious programs were announced, the allocations were modest, with things like grants, pilot programs, and tax credits.

To drive tech education, a growing sector in New York state, the governor put up $50 million in a venture capital fund in hopes of bringing tech leaders to partner up to fill vacant high-tech jobs. Money was allocated for partnerships with SUNY and CUNY to update higher education as well. Tax credits for the film industry were extended another five years.

Minimum Wage

Just like in his State of the State address, the governor mentioned raising the minimum wage by $1.50, saying it would increase total wages by an estimated $1.01 billion per year.

The measure drew cheers from the crowd, however, its placement in the budget address drew questions from the Citizen’s Budget Commission. “It is not a budget item. It does not have any effect on the state budget,” Carol Kellermann, president of Citizens Budget Commission. “It is a requirement for private sector employers.”

Kellermann was unsure where the $1.01 billion figure came from and did not believe the figure had any sort of budget impact, such as added revenue figured into the budget, especially since no measure had passed.

Sandy

The governor acknowledged the daunting task of recovering from Hurricane Sandy, one of the worst natural disasters the state has seen. A total of $21 billion in recovery, rebuilding, and mitigation was put in the budget. Cuomo expects $30 billion from the Hurricane Sandy Tax Relief Act, which has passed the United States House of Representative but not the United States Senate.

Cuomo said when the bill is passed he wants to give communities the opportunity to have input as to how that money is spent. “We can’t sit here in Albany and tell the Rockaways exactly what they need to do,” he said.

Ron Deutsch, executive director of New Yorkers for Fiscal Fairness applauded the measure, but felt the governor could take it a step further.

“We want them to not only have a say in the rebuilding process, but we should also make sure the people in those communities get first shot at those jobs as well,” Deutsch said.

New Normal

For a state not known for passing on-time and balanced budgets, if the state Legislature can do it for a third straight year, the positive message it will send, will reach well beyond the New York state borders.

“It has a psychological value. It tells the credit markets this is not a short term blip in the way New York State does its budgeting. It shows this is really going to be the new normal,” Kellermann said. “I think it sends a good message to the investor community and I think it sends a good message to tax payers that their elected officials are trying to make sure their money is spent effectively and in a responsible way.”

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