NYCON POLICY ALERT 2012 EXECUTIVE BUDGET TO: FROM: RE: DATE: NYCON Member Organizations Doug Sauer,

, CEO New York Council of Nonprofits Immediate Implications of FY2012-2013 Executive Budget Proposal January 17, 2012

Below, please find segments from the Executive Briefing Book from Governor Andrew Cuomos FY2012-2013 Budget Proposal. These selections are not intended to represent an exhaustive or all-inclusive list, but rather are a quick review to help answer some questions that may be out there for our members. We will continue to read through the supporting documents and relay updates as they become available. Please feel free to reach out to Dan Curtis in NYCONs Membership Department for more information, dcurtis@nycon.org or 1-800-501-501C at ext. 126. Thank you for your continued participation in NYCONs public policy action program, we hope you will also submit your own feedback about the budget as mentioned in this afternoons e-mail update. Regards,

Doug Sauer Chief Executive Officer New York Council of Nonprofits, Inc.

NYCON BUDGET CLIPS Page 14: Controlling Excessive Executive Compensation and Administrative Costs in Service Providers One-third of the State budget goes to non-profit and for-profit agencies to provide services on behalf of the State. However, there are inadequate controls to protect against excessive executive compensation, administrative costs, and profit. To ensure that taxpayers and the vulnerable populations served by these agencies receive the maximum value for the funds paid, Governor Cuomo is proposing the following reforms beginning in 2012-13:

At least 85 percent of every public dollar will be spent on direct services, not administration. Reimbursement for any executives compensation will be capped at $199,000. Excess compensation will be a basis for rejection of a provider.

Page 15: Enterprise Shard Services Based on best practices in both the public and private sectors, the State will move aggressively over the next five years to make operational changes that will reduce costs, increase efficiency and transform State business practices. One glaring example of inefficiencies is the grant contract management process. In 2010, 71 percent of new and renewal grant contracts with not-for-profits were not approved by the contract start or renewal dates, and 20 agencies were using more than 50 systems to manage the grant contracting process. This budget recommends a single statewide application, a single statewide contract, and a Statewide Grants Management Portal providing not-for-profits and agencies a single web-based platform to transform this system. Page 16: Enterprise Shared Services (DETAIL) Procurement: Major State contracting activities, including Information Technology, will be centralized in the Office of General Services (OGS) with necessary staff transferred to OGS over a three-year timeframe. Statutory barriers for local governments and non-profits to access State contracts and save money will be eliminated, and strategic sourcing will be implemented to leverage the States full buying power. Page 28: State Support for Arts Programs Funding for Arts Grants. The 2012-13 Executive Budget provides $31.6 million in funding for arts grants administered by the New York State Council on the Arts (NYSCA). This amount reflects New Yorks commitment to encouraging access to highquality artistic programs for the citizens of the State. Annually, the Council awards approximately 2,500 grants, used largely to subsidize costs of not-for-profit arts organizations, including orchestras, museums, dance companies and theatres.

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Page 51: Mental Hygiene This starts the section on reforming the delivery of mental hygiene services, there are a whole host of proposals many of which are congruent to our policy agenda and other recommendations from OSC and in line with the NYS MOCS contract reforms, as well as recommendations being crafted by the AG Nonprofit Revitalization Committee that Doug Sauer serves on. However, it also includes COLA eliminations, mention of an Early Alert program to hold nonprofit providers more accountable for their performance, in an effort to quickly remedy deficiencies including fines and revocation of operating certificates. Specifics: Increased hiring qualifications and training standards in State-run programs for direct support professionals, including pre-employment psychological and fitness training, mandatory drug testing, rigorous background checks, and a minimum of a high school diploma. Refocused efforts on cases of abuse, with creation of a centralized Incident Management Unit with real time oversight of incidents, and an overhauled investigations process that has direct relationships with local law enforcement/State Police. Holding non-profit providers more accountable for their performance via a restructured Early Alert program to facilitate quickly remedying deficiencies in non-profit provider services, with imposition of fines and revocation of their operating certificate when appropriate. An improved statewide standardized objective process to ensure that potential new non-profit providers have the requisite fiscal and programmatic expertise, and a COMPASS initiative that supports and recognizes providers that have achieved excellence in service delivery. Enhanced fire safety efforts, including implementing recommendations of outside experts to comply with enhanced standards, unannounced fire drills, better training and safety plans, direct relations with local fire personnel, and capital improvements. The 2012-13 Executive Budget reprioritizes OPWDD capital funds to support necessary enhancements in community residential and day programs to meet Life Safety Code and/or Health Care Facility fire safety standards at a cost of $230 million over the course of the Five-Year Capital Plan.

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