FOR IMMEDIATE RELEASE
October 21, 2026

Contact: Andrea Ó Súilleabháin , andrea@ppgbuffalo.org  

Buffalo Nonprofit Leaders Call on Gov. Hochul to Sign Contracting Reform Legislation as Challenges with State Funding
Strain Essential Services 

—With 873 endorsements statewide, coalition says nonprofits should not have to borrow money to cover the cost of government services—

Livestream video of press conference available here.

BUFFALO, NY — Nonprofit leaders and advocates gathered in Buffalo on Oct. 20 to call on Governor Kathy Hochul to approve a contracting reform bill package passed by the New York State Legislature, warning that chronic payment delays and administrative obstacles are forcing organizations to borrow money, deplete reserves and divert scarce resources from the communities they serve. The measures, S.9855A-Mayer / A.11179-Paulin and S.9761-Mayer /A.10741-Paulin, make modest updates to the state prompt contracting law that will provide relief for non-profits statewide while preserving the integrity of the process.

Organized by the Coalition to Fix Government Contracting, the press conference brought together six nonprofit and community leaders at Housing Opportunities Made Equal (HOME) to underscore the urgent need for reforms that would make state contracting more efficient, transparent and predictable. They were: Partnership for the Public Good Executive Director, Andrea Ó Súilleabháin, Nonprofit Support Group Director Katie Pieri, Western New York Law Center Director of Litigation and Advocacy Matthew Parham, Back to Basics President and CEO Pastor James Giles, New York Legal Services Coalition representative and The Center for Elder Law and Justice Executive Director Karen Nicolson, and New York Council of Nonprofits CEO Megan Allen.   

The coalition's call for action is backed by 873 organizational endorsements of a statewide sign-on letter. Supporters represent non-profit organizations, trade associations, philanthropic groups, and the business community.

Nonprofits provide services on behalf of New York State that residents of all ages and backgrounds depend on every day, from food assistance and housing to mental health care, childcare and legal services. Yet organizations routinely face lengthy waits for payment under state contracts, even after they have delivered the services the state has asked them to provide.  The coalition's Nonprofits in Peril research found that one in three nonprofits with state contracts were owed money for services already provided, with at least $650 million outstanding. Nearly two-thirds expressed concern about their ability to fund basic operations.

In some cases, organizations have waited over a year to receive reimbursement, leaving them responsible for millions of dollars in expenses while awaiting payment. These consequential delays can be caused by minor administrative discrepancies which hold up processing and payment for months. Meanwhile, nonprofits must continue paying employees, covering operating expenses and serving their communities.  

The result: organizations are effectively being asked to act as banks for New York State, drawing on lines of credit and paying interest to finance government programs, but without the ability to be reimbursed for the cost of interest. This bill package will ensure administration of grants is more consistent and efficient while preserving the integrity of the process.   

“When the state pays late, it’s not some abstract budget line. It’s payroll. It’s a case manager in Lockport or a home care aide in Olean wondering if their paycheck will clear. And last year, 76% of state contracts with nonprofits were processed late … Meanwhile, organizations’ bills are piling up, and our communities are paying the price," said Katie Pieri, Director of the Nonprofit Support Group. 

“Community-based organizations are at the heart of service to a community,” said Pastor James Giles, President and CEO of Back to Basics, a nonprofit that has worked to prevent gun violence in Buffalo for 35 years. “The problems that we have in our communities are massive and the government itself cannot handle them without partnership with community-based organizations.” 

State Senator and bill sponsor Shelley Mayer said, “New York’s nonprofits do tireless and important work throughout the state, and we depend on these organizations to deliver essential support to thousands of our residents. This legislation is critical to tackle the persistent delays in state payments to nonprofits and establish greater accountability to ensure non-profits are paid on time for the services they provide and the staff that they employ.”

“When the state contracts with a nonprofit to deliver care, it should pay on time,” said bill sponsor Assemblywoman Amy Paulin. “We listened to the Governor’s concerns and worked closely with providers to revise this legislation to address them. These bills provide common sense, needed changes to help keep vital services running in our communities.”

“Many of our 400 nonprofit and community partners across Buffalo Niagara say that state contracting and delayed payment is their biggest challenge to delivering services,” said Andrea Ó Súilleabháin, Executive Director of Partnership for the Public Good. “Many have to cancel vital community programs, layoff staff, or even close their doors due to extreme delays in New York State contract payments. By signing these reform bills, Governor Hochul can show support for nonprofit organizations in Western New York—at a crucial time when they are under stress from federal funding cuts and uncertainty.”

“We have addressed all of the Governor’s concerns with last year’s vetoed bill in this legislation,” said Megan Allen, CEO of the New York Council of Nonprofits. “We did our part … now we ask the Governor to sign them into law and provide critical relief nonprofits need.” 

The two bills, sponsored by Senator Shelley Mayer and Assemblymember Amy Paulin, passed both houses of the Legislature in June:

• S.9761/A.10741 would establish clearer invoicing and payment schedules, improve contracting transparency and provide nonprofits with information about the state's short-term revolving loan fund.

• S.9855A/A.11179 would require state agencies to provide a 25% advance payment within 30 days after a contract is fully executed, giving nonprofits working capital to begin delivering services.

The legislation was carefully revised to address concerns raised by Governor Hochul when she vetoed a previous iteration of the bills. The current bills require advance payments only after contracts are executed, providers have been vetted and funds appropriated, and accommodate possible federal funding restrictions.

The stakes extend well beyond individual organizations. New York's nonprofit sector employs approximately 1.3 million people, representing 17% of the state's private workforce. Nonprofit employers provide jobs with important benefits, including health insurance, retirement plans and, for eligible workers, access to federal student loan forgiveness programs.But the financial stability of these employers is threatened when the state fails to provide timely, predictable funding for the services it contracts with them to deliver.

The Coalition to Fix Government Contracting is encouraging nonprofit organizations, employees, board members and community supporters to add their names to the statewide sign-on letter urging Governor Hochul to sign both bills. Link to the sign-on letter: https://www.surveymonkey.com/r/YJH528B

About the Coalition to Fix Government Contracting

The Coalition to Fix Government Contracting strengthens New York State’s nonprofit sector through government contract reform and empowering the sector with a strong advocacy voice.

Steering Committee members include Human Services Council, New York Council of Nonprofits, The New York Legal Services Coalition, Nonprofit New York, Nonprofit Westchester and Partnership for the Public Good.