Nonprofits, school districts and others who receive state funds are further impacted by the state’s massive budget deficit caused by COVID-19 losses.
Effective immediately, all New York State authorities and agencies will withhold 20% of local aid payments that are made entirely with state funds. This mandate includes the Office for People with Developmental Disabilities (OPWDD), and other similar state agencies, who will begin to withhold 20% of payments for non-Medicaid local assistance programs.
In the absence of additional federal relief, the state has also cut aid to cities, counties and public schools and implemented freezes on non-essential hiring, contracts and pay raises. Any of these reductions could become permanent if federal aid is not received to offset the state’s revenue losses.
We’re Here to Help
Grassi’s Not-for-Profit practice is dedicated to helping you understand how your local aid payments and reimbursements will be affected by this new mandate and develop a strategy to ensure your organization’s continued financial health, cash flow and sustainability.
For more information, please contact your Grassi advisor or David M. Rottkamp, Not-for-Profit Practice Leader, at drottkamp@grassiadvisors.com or 212.223.5046.
