United Way Requests Legislative Changes to Executive Budget Proposal

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ALBANY, NY (02/13/2012)(readMedia)-- In written testimony submitted for today's Human Services Budget Committee Hearing, United Way of New York State has asked the state Legislature for the following changes to the Governor's budget:

Child Care - a down payment in this budget to phase in a restoration of the $67 million in child care subsidy funding that has been lost over the past 3 years. Although available in 66% of NYS schools, only 41% of four-year olds actually participate.

Hunger Prevention - an increase of $4 million in funding for the Hunger Prevention Nutrition Assistance Program (HPNAP) up to a total of $33.9 million.

Susan Hager, President of United Way of New York State stated: There is a significant need for increased funding to assist children and families across this state that go hungry due to loss of income and jobs from a stalled economy – a situation that is neither their making nor their choice. Charitable funding alone cannot fill that gap.

Low Income Energy Assistance Program (LIHEAP) - add state support to this important federally funded program, to replace some of the $146.1 million lost federal dollars for LIHEAP which serves 1.5 million households. A cut of this magnitude will have a significant and negative effect on those that depend on this assistance to stay warm.

2-1-1 Information and Referral - Add $3.28 million to the state budget so that multi-lingual 2-1-1 services are available to all New Yorkers, 24/7 year-round. This funding would restore the "public" share of the public-private partnership that supported this program from 2006-09, and represents just 25% of the total cost. In 2010 some 2.9 million calls for help were handled by seven regional call centers. 2-1-1 experienced over 11 million web hits from people searching for human services information and/or a government or not for profit service provider. 2-1-1 also handled thousands of calls during the late-August-early September storms and flooding and continues to provide long-term recovery assistance.

Not for Profit Executive Compensation – Reject the proposed budget language to create new guidelines for a cap on state funded executive compensation and administrative/direct services percentages. Mrs. Hager noted, "While we do not condone the actions of any not for profit agencies that may be using state resources inappropriately, these proposals have been advanced without supporting documentation to demonstrate that these issues are persistent and widespread, as opposed to the actions of a few."

"All charitable organizations whether they have contracts with New York State or not, face an almost unprecedented level of regulation through required federal and state registration and annual reporting," she continued. "The state already has the legal tools to demand restitution if that is called for in any current cases, as well as the existing oversight authority to prevent a re-occurrence. New restrictions or reporting for the entire sector as envisioned in the budget language could further add to administrative costs that are themselves the target of these proposals to achieve savings."