New York: Democratic Gov. Andrew Cuomo proposed eliminating 20% of state agencies by combining duties, such as merging the Insurance Department, Banking Department and the Consumer Protection Board into the Department of Financial Regulation. It's part of "radical reform" to pull his state out of its fiscal crisis.
New Jersey: Republican Gov. Chris Christie skipped a $3.1-billion payment to the state's pension system in a push to cut benefits for public workers, while proposing higher employee contributions and a boost in the retirement age from 62 to 65.
Georgia: Deep cuts appear to await the state's popular HOPE scholarship program that provides public-college tuition to students who earn good grades. Rising tuition and enrollment have outpaced the lottery revenues that fund the program, and Republican Gov. Nathan Deal has not proposed any additional state money to bail it out.
Illinois: Lawmakers voted for a dramatic 66% hike in personal income tax, from 3% to 5%, in a bid to resolve a $15-billion deficit, which amounts to more than half of the state's general fund. The tax increase will be coupled with strict 2% limits on spending growth. "It's important for their state government not to be a fiscal basket case," said Gov. Pat Quinn, a Democrat.
Texas: In oil-rich Texas, where education and social service spending is relatively low and Republican Gov. Rick Perry has railed against government spending, hard times loom. The shortfall is projected to be between $15 billion and $27 billion over the coming two-year budget cycle.
South Carolina: Outgoing GOP Gov. Mark Sanford proposed a spending plan that would end funding for museum and arts programs, slash college funding and cut state workers' pay by 5%.
Showing posts with label financial state. Show all posts
Showing posts with label financial state. Show all posts
Monday, January 17, 2011
Wednesday, May 19, 2010
Facing Money Troubles, Nylink Network To Phase Out Over Next Year
Merger not feasible but will find new service providers for members
Norman Oder -- Library Journal, 5/18/2010
•Impact of changed business relationship with OCLC
•18-member staff to lose jobs
•Unclear which organizations will take over services
As with several other networks that lost revenue in response to a changed business relationship with OCLC, Nylink, a nonprofit membership organization serving libraries in New York, is facing severe money troubles. Rather than merge into a large consortia—LYRASIS, formed last year, has grown to cover 33 states—Nylink will phase out its operations over the next 12 months.
Because the 37-year-old Nylink is part of the State University of New York and not an independent organization, it cannot be part of a merger. “However, we will be working with our members and with other organizations capable of providing similar services to absorb some of our functions,” Nylink said in an FAQ.
Financial challenges
Nylink—which serves some 500 libraries of various types, library systems and groups, museums, and cultural heritage organizations— has been funded through revenues and, while it is not in a deficit situation, it’s depleting its reserves.
“Unfortunately, the revenue just isn’t there any longer, and we have no choice but to wind down operations,” said W. David Penniman, Executive Director of Nylink. A change in the network business relationship with OCLC, effective July 1, 2009, meant that regional networks could no longer take their longstanding share of monies paid for OCLC services.
Nylink’s 18-member staff will continue to serve members while being provided outplacement support. Read more here.
Norman Oder -- Library Journal, 5/18/2010
•Impact of changed business relationship with OCLC
•18-member staff to lose jobs
•Unclear which organizations will take over services
As with several other networks that lost revenue in response to a changed business relationship with OCLC, Nylink, a nonprofit membership organization serving libraries in New York, is facing severe money troubles. Rather than merge into a large consortia—LYRASIS, formed last year, has grown to cover 33 states—Nylink will phase out its operations over the next 12 months.
Because the 37-year-old Nylink is part of the State University of New York and not an independent organization, it cannot be part of a merger. “However, we will be working with our members and with other organizations capable of providing similar services to absorb some of our functions,” Nylink said in an FAQ.
Financial challenges
Nylink—which serves some 500 libraries of various types, library systems and groups, museums, and cultural heritage organizations— has been funded through revenues and, while it is not in a deficit situation, it’s depleting its reserves.
“Unfortunately, the revenue just isn’t there any longer, and we have no choice but to wind down operations,” said W. David Penniman, Executive Director of Nylink. A change in the network business relationship with OCLC, effective July 1, 2009, meant that regional networks could no longer take their longstanding share of monies paid for OCLC services.
Nylink’s 18-member staff will continue to serve members while being provided outplacement support. Read more here.
Monday, April 19, 2010
Nonprofit Advocacy Matters
The following Spring Legislative Agenda information is provided by NYCON's national affiliate the National Council of Nonprofits
With only six weeks remaining until Memorial Day recess, legislators have perhaps their last and best chance to reach bi-partisan agreement on major bills before the election season is fully upon them. The following provides a synopsis of key bills we are following:
Financial Regulatory Reform and Consumer Protection: The Senate is expected to take up a bill to overhaul regulation of the financial services sector, but all 41 Republican Senators signed a letter expressing opposition to the measure as currently written. This stalemate could change, however, due to a lawsuit filed by the Securities and Exchange Commission against Goldman Sachs alleging fraud in transactions at the root of the market collapse. The consumer protection components of the bill are of interest to many nonprofits.
Federal Budget for FY 2011: The Senate and House Budget Committees are finalizing their budget resolutions in preparation for floor action scheduled for the coming weeks. The odds are that Congress will not be successful in adopting a formal budget, which is frequently the case in election years. The debate is still worth following because leaders use the document to establish priorities, and rank-and-file members frequently seek to force votes on controversial issues, such as advocacy rights and the estate tax.
American Workers, State and Business Relief Act of 2010: This bill, which includes extension of the IRA Rollover and provides pension funding relief and $28 billion in additional funds to help the states balance their budgets, passed the Senate in March and must be reconciled with a House-passed bill. There is bi-partisan support for each of the initiatives, but legislators must come up with around $30 billion in additional revenues to pay for the bill.
Estate Tax: The tax expired at the end of 2009, but will return to higher 2001 levels next year. The President has proposed restoring the tax at 2009 levels - exemptions of $3.5 million/individual and a tax rate of 45%; Senators Lincoln (D-AR) and Kyl (R-AZ) are calling for weakening the estate tax by raising the exemption to $5 million/individual and lowering the tax rate to 35%. A weaker estate tax would generate nearly $100 billion less to the U.S. Treasury and provide less of an incentive for charitable giving.
With only six weeks remaining until Memorial Day recess, legislators have perhaps their last and best chance to reach bi-partisan agreement on major bills before the election season is fully upon them. The following provides a synopsis of key bills we are following:
Financial Regulatory Reform and Consumer Protection: The Senate is expected to take up a bill to overhaul regulation of the financial services sector, but all 41 Republican Senators signed a letter expressing opposition to the measure as currently written. This stalemate could change, however, due to a lawsuit filed by the Securities and Exchange Commission against Goldman Sachs alleging fraud in transactions at the root of the market collapse. The consumer protection components of the bill are of interest to many nonprofits.
Federal Budget for FY 2011: The Senate and House Budget Committees are finalizing their budget resolutions in preparation for floor action scheduled for the coming weeks. The odds are that Congress will not be successful in adopting a formal budget, which is frequently the case in election years. The debate is still worth following because leaders use the document to establish priorities, and rank-and-file members frequently seek to force votes on controversial issues, such as advocacy rights and the estate tax.
American Workers, State and Business Relief Act of 2010: This bill, which includes extension of the IRA Rollover and provides pension funding relief and $28 billion in additional funds to help the states balance their budgets, passed the Senate in March and must be reconciled with a House-passed bill. There is bi-partisan support for each of the initiatives, but legislators must come up with around $30 billion in additional revenues to pay for the bill.
Estate Tax: The tax expired at the end of 2009, but will return to higher 2001 levels next year. The President has proposed restoring the tax at 2009 levels - exemptions of $3.5 million/individual and a tax rate of 45%; Senators Lincoln (D-AR) and Kyl (R-AZ) are calling for weakening the estate tax by raising the exemption to $5 million/individual and lowering the tax rate to 35%. A weaker estate tax would generate nearly $100 billion less to the U.S. Treasury and provide less of an incentive for charitable giving.
Sunday, January 3, 2010
New York finishes 2009 with cash, so Paterson orders payments to school districts
Syracuse.com reported that New York’s government finished 2009 with some cash on hand, and Gov. David Paterson said local aid payments he ordered withheld in December should be released in January.
A report from state Comptroller Thomas DiNapoli showed $883 million available at the close of business Thursday. He noted there was a $600 million year-end shortfall in the general fund, the account used to pay for state operations and local assistance, and said that was a first in recent history.
“I want to be sure everybody in the state understands we are not running out of money,” Paterson said. Bondholders were aware of the narrow margins and New York’s credit rating should not be affected, he said.
Paterson had withheld $750 million in aid to schools, local governments and nonprofit service providers, saying the government might otherwise run out of cash. On Thursday, he said that decision, which prompted a lawsuit by the teachers’ union and schools, was necessary.
“I would assume that in January, when the revenues come back, I would complete the payments that we delayed to the entities that have been afflicted,” Paterson said. “At that point, I will issue a budget that will project what we would think will be the necessary cuts.”
The state likely faces a deficit of about $8 billion in the next fiscal year, which begins in April, Paterson said. Some payments may need to be delayed again when major bills come due in March, he said. Read more here.
A report from state Comptroller Thomas DiNapoli showed $883 million available at the close of business Thursday. He noted there was a $600 million year-end shortfall in the general fund, the account used to pay for state operations and local assistance, and said that was a first in recent history.
“I want to be sure everybody in the state understands we are not running out of money,” Paterson said. Bondholders were aware of the narrow margins and New York’s credit rating should not be affected, he said.
Paterson had withheld $750 million in aid to schools, local governments and nonprofit service providers, saying the government might otherwise run out of cash. On Thursday, he said that decision, which prompted a lawsuit by the teachers’ union and schools, was necessary.
“I would assume that in January, when the revenues come back, I would complete the payments that we delayed to the entities that have been afflicted,” Paterson said. “At that point, I will issue a budget that will project what we would think will be the necessary cuts.”
The state likely faces a deficit of about $8 billion in the next fiscal year, which begins in April, Paterson said. Some payments may need to be delayed again when major bills come due in March, he said. Read more here.
Wednesday, July 15, 2009
Survey: Nonprofit Mergers, Sales Not On The Table
The Nonprofit Times reported on a recent Nonprofit Finance Fund survey that related very few organizations are even considering mergers or selling assets. Instead, nonprofits are more likely to develop worst-case scenario contingency budgets and engage more closely with their board.
Nearly half of respondents (48 percent) said they would freeze all hires and current salaries or have funder conversations to explain the situation and/or use of currently restricted grants to “keep their doors open in difficult times.” Only 4 percent called it “business as usual” and plan no change.
Asked what type of technical assistance would be helpful to their organizations, respondents most wanted “tools to communicate financial picture to the board and/or funders” and “financial scenario planning” with some also looking for assistance analyzing their current financial situation or program finance analytics.
About 16 percent anticipate being able to cover operating expenses in both 2009 and 2010. More than half expect the recession to have a long-term (more than two years) or permanent negative financial effect on their organizations. Read the full article here.
Nearly half of respondents (48 percent) said they would freeze all hires and current salaries or have funder conversations to explain the situation and/or use of currently restricted grants to “keep their doors open in difficult times.” Only 4 percent called it “business as usual” and plan no change.
Asked what type of technical assistance would be helpful to their organizations, respondents most wanted “tools to communicate financial picture to the board and/or funders” and “financial scenario planning” with some also looking for assistance analyzing their current financial situation or program finance analytics.
About 16 percent anticipate being able to cover operating expenses in both 2009 and 2010. More than half expect the recession to have a long-term (more than two years) or permanent negative financial effect on their organizations. Read the full article here.
Thursday, June 18, 2009
State’s late payments hurting nonprofits
State’s late payments hurting nonprofits
Fiscal problems affect community agencies
Wednesday, June 17, 2009
By Michael Lamendola (Contact)Gazette Reporter
CAPITAL REGION — The Albany Pine Bush Preserve Commission is running out of money because the state is six months late in reimbursing $4 million in contract expenses to the agency, its director said on Tuesday.
The commission is using reserves to pay staff and operate programs, but it expects to exhaust those reserves by the end of the year, said Executive Director Chris Hawver.
“We have a $4 million deficit,” Hawver said. “We have another six months to go in reserves.”
The Pine Bush commission is in the fourth year of a five-year, $12.5 million contract with the state. The state provides the money through the Environmental Protection Fund.
Hawver said the $4 million deficit goes back to 2007-08, but that the commission submitted bills to the state for payment of these expenses in January. “I am hopeful that within the next eight weeks we will get the funding,” he said.
During the first six months of the year, the Nature Conservancy, a member of the commission, supported the commission but it can no longer do so, Hawver said. Hence, the need for state support.
The state provides $2 million toward the commission’s $2.6 million annual budget, Hawver said. The rest comes from grants and local support.
The commission is a public-private partnership formed by the state Legislature to protect and manage the Albany Pine Bush, an ecological area that is home to rare and endangered species.
The commission consists of the state Department of Environmental Conservation, the state Office of Parks, Recreation and Historic Preservation, the Nature Conservancy, the city of Albany, the towns of Colonie and Guilderland, Albany County and four citizen representatives.
When Hawver inquired about the payment delay, he said state officials reminded him about the state’s difficult fiscal situation. The state Division of Budget is responsible for disbursing the funds. Spokesman Jeffrey Gordon said the state has been forced to manage the Environmental Protection Fund closely this year because of fiscal pressures on the fund and on the state.
“So there have been some delays in payments; they have taken longer than they have in the past,” Gordon said.
Another factor is that the state fund receives one of its largest replenishments in June through the real estate transfer tax. “When that happens, we will begin moving payments more readily,” Gordon said.
Hawver said the commission’s role will likely increase should the state grant the city of Albany’s request to expand the Rapp Road landfill. The state DEC gave the final approval June 3 to the city’s final environmental impact statement, which outlines environmental ramifications of the dump expansion.
Hawver said the commission will work with the city on a large habitat restoration project.
“They need us at the table and we need to pay salary and staff,” Hawver said.
NONPROFITS’ PLIGHT
While the commission’s problem is a payment issue, some nonprofits are finding that the state is consistently late in approving or renewing contracts with nonprofits, forcing them to perform services without a contract in place and without any payments.
State Comptroller Thomas P. DiNapoli said he found in 2008 that 87 percent of nonprofit contracts were approved on average 184 days late. He is proposing new regulations to make the state more responsive to a nonprofit’s contractual needs, including a requirement that ensures nonprofits are paid interest required by law when their contracts are processed late.
DiNapoli said, “In recent months, an increasing number of organizations were unable to make payroll, faced eviction or risked losing other funding because their state contract was significantly delayed.”
Denise Harlow, chief executive officer for the New York State Community Action Association, said community agencies have had to go into debt to run programs while awaiting state payments through contracts.
“It puts us at a disadvantage. We are running programs on their own lines of credit with banks, and we then have to pay interest on those lines of credit. State contracts don’t cover interest. It is costing us money,” she said.
DiNapoli said the state paid $144,906 in interest to nonprofits for processing their contracts late in 2008, a 29 percent decrease from the year before.
Hawver said that while he agrees with the need for more timely action by the state, he does not support the interest payment proposal. “The simple way is if the cash is available to pay it. Then you don’t have to pay interest. You don’t use state funds to pay interest on state funds,” he said.
Harlow said the delays are due to many factors, such as lack of communication between agencies, lack of staffing and “tremendous amounts of duplication.”
Other nonprofits contacted said the state lag is a problem but something they have learned to work around.
Denis Wilson of the Fulmont Community Action Agency said, “the lag has never created a problem for us.” The agency receives money for Meals on Wheels and other community service programs.
Fiscal problems affect community agencies
Wednesday, June 17, 2009
By Michael Lamendola (Contact)Gazette Reporter
CAPITAL REGION — The Albany Pine Bush Preserve Commission is running out of money because the state is six months late in reimbursing $4 million in contract expenses to the agency, its director said on Tuesday.
The commission is using reserves to pay staff and operate programs, but it expects to exhaust those reserves by the end of the year, said Executive Director Chris Hawver.
“We have a $4 million deficit,” Hawver said. “We have another six months to go in reserves.”
The Pine Bush commission is in the fourth year of a five-year, $12.5 million contract with the state. The state provides the money through the Environmental Protection Fund.
Hawver said the $4 million deficit goes back to 2007-08, but that the commission submitted bills to the state for payment of these expenses in January. “I am hopeful that within the next eight weeks we will get the funding,” he said.
During the first six months of the year, the Nature Conservancy, a member of the commission, supported the commission but it can no longer do so, Hawver said. Hence, the need for state support.
The state provides $2 million toward the commission’s $2.6 million annual budget, Hawver said. The rest comes from grants and local support.
The commission is a public-private partnership formed by the state Legislature to protect and manage the Albany Pine Bush, an ecological area that is home to rare and endangered species.
The commission consists of the state Department of Environmental Conservation, the state Office of Parks, Recreation and Historic Preservation, the Nature Conservancy, the city of Albany, the towns of Colonie and Guilderland, Albany County and four citizen representatives.
When Hawver inquired about the payment delay, he said state officials reminded him about the state’s difficult fiscal situation. The state Division of Budget is responsible for disbursing the funds. Spokesman Jeffrey Gordon said the state has been forced to manage the Environmental Protection Fund closely this year because of fiscal pressures on the fund and on the state.
“So there have been some delays in payments; they have taken longer than they have in the past,” Gordon said.
Another factor is that the state fund receives one of its largest replenishments in June through the real estate transfer tax. “When that happens, we will begin moving payments more readily,” Gordon said.
Hawver said the commission’s role will likely increase should the state grant the city of Albany’s request to expand the Rapp Road landfill. The state DEC gave the final approval June 3 to the city’s final environmental impact statement, which outlines environmental ramifications of the dump expansion.
Hawver said the commission will work with the city on a large habitat restoration project.
“They need us at the table and we need to pay salary and staff,” Hawver said.
NONPROFITS’ PLIGHT
While the commission’s problem is a payment issue, some nonprofits are finding that the state is consistently late in approving or renewing contracts with nonprofits, forcing them to perform services without a contract in place and without any payments.
State Comptroller Thomas P. DiNapoli said he found in 2008 that 87 percent of nonprofit contracts were approved on average 184 days late. He is proposing new regulations to make the state more responsive to a nonprofit’s contractual needs, including a requirement that ensures nonprofits are paid interest required by law when their contracts are processed late.
DiNapoli said, “In recent months, an increasing number of organizations were unable to make payroll, faced eviction or risked losing other funding because their state contract was significantly delayed.”
Denise Harlow, chief executive officer for the New York State Community Action Association, said community agencies have had to go into debt to run programs while awaiting state payments through contracts.
“It puts us at a disadvantage. We are running programs on their own lines of credit with banks, and we then have to pay interest on those lines of credit. State contracts don’t cover interest. It is costing us money,” she said.
DiNapoli said the state paid $144,906 in interest to nonprofits for processing their contracts late in 2008, a 29 percent decrease from the year before.
Hawver said that while he agrees with the need for more timely action by the state, he does not support the interest payment proposal. “The simple way is if the cash is available to pay it. Then you don’t have to pay interest. You don’t use state funds to pay interest on state funds,” he said.
Harlow said the delays are due to many factors, such as lack of communication between agencies, lack of staffing and “tremendous amounts of duplication.”
Other nonprofits contacted said the state lag is a problem but something they have learned to work around.
Denis Wilson of the Fulmont Community Action Agency said, “the lag has never created a problem for us.” The agency receives money for Meals on Wheels and other community service programs.
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