On Monday, July 27, I was interviewed by WTEN for a story about the impact of the New York State Budget crisis on area not-for-profit organizations. It is crucial that our stakeholders, volunteers, and the people we serve understand the severity of the ongoing budget crisis and how it is impacting our ability to provide life-saving services to people living with HIV/AIDS.
• New York State has been holding funds since April 1, 2010 that are due to select health and human service organizations – including the AIDS Council – for work on contracts performed by these organizations. This policy is apparently designed to spur the New York State Legislature to pass the state’s Fiscal Year 2010-2011 Budget, which is now 118 days late.
• The AIDS Council has not been paid for work performed on existing New York State contracts since April 1, 2010.
• The AIDS Council has not received advances for new and continuing grants from New York State.
• These payments and advances from New York State total more than $900,000, representing nearly 20% of the agency’s $5 million annual budget.
• These payments and advances are not related to the member items that were vetoed by the Governor in early July. They are strictly related to existing and pending contracts that the AIDS Council has with New York State to provide services to people living with HIV/AIDS and prevention and outreach to at-risk communities.
• The funds which have been held by the Division of Budget (DOB) were for contracts that were approved. We are not advocating for new or increased taxes to provide the revenue for these funds.
• The AIDS Council relies on these funds to provide essential services to 600 HIV infected clients and their family members, and to provide prevention and outreach to thousands of people in communities most at risk.
• The AIDS Council has continued providing services as outlined in the existing contracts with New York State, despite the lack of payments. The AIDS Council is, in effect, floating a loan to the New York State government.
• To offset the lack of payments on these contracts, the AIDS Council has utilized 90% of its line of credit. Use of this line of credit incurs interest; these interest payments result in funds that will not go towards services to people living with HIV/AIDS.
• We have held positions due to this lack of payment resulting in a reduction in services to the community.
• Without payments on existing and new state contracts, the AIDS Council will experience a negative cash flow by October 1, 2010. This threatens the ability of the agency to serve as the HIV infrastructure in Northeastern New York.
• The AIDS Council is the New York State-designated Community Service Provider for HIV/AIDS services and prevention in the 15-county region known as Northeastern New York. By refusing to release payments the Governor’s Office and DOB are stating that they are willing to sacrifice providing essential services to people living with HIV/AIDS.
You can make a difference by taking action in the following ways today:
1. Call the Governor’s Office at 518.474.8390 and urge him to release the funds owed to the AIDS Council immediately.
2. Consider making a gift to the AIDS Council’s Annual Fund, which will help bridge the funding gap and allow the AIDS Council to continue providing life-saving services in your community. You can make a secure online gift by logging on to www.aidscouncil.org/help/ and clicking “Donate Now.”
Thank you for your ongoing support for our mission. Together, we can take action and weather this crisis.