BILL NUMBER: S8680

SPONSOR: PERSAUD
 
TITLE OF BILL:

An act to provide relief to human services providers in response to the
outbreak of novel coronavirus, COVID-19 and making an appropriation
therefor

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill amends the Social Services Law (SSL) to enact protections for
human services providers that provide immediate relief and sustainable
long-term investment for community preservation and recovery proposals
in the wake of COVID-19.

 
SUMMARY OF PROVISIONS:

Section i provides a definition of human services and human services
provider to be used in this act.

              

Section 2 requires the commissioners of social services in consultation
with director of the office of the aging, and the commissioner of divi-
sion for youth, and the commissioner mental health shall amend all state
and pass through contracts to provide retroactive incentive pay for all
human service workers who were deems essential during the state disaster
emergency pursuant to executive order 202 of 2020.

Section 3 requires the commissioners of social services in consultation
with director of the office of the aging, and the commissioner of divi-
sion for youth, and the commissioner of mental health shall amend all
state and pass through contracts to provide necessary personal protec-
tive equipment (PPE) to human service providers as determined by such
commissioners.

Section 4 requires all state agencies may permit human service providers
to use contract funds to provide incentive pay to human service workers
who were deemed essential during the state disaster emergency pursuant
to executive order 202 of 2020.

Section 5 requires that any state agency with a contract with a human
service provider to provide human services for fiscal year 2021 shall
provide 6o% cash advance on the 2021 fiscal contract.

Section 6 requires that any state task force involved in the recovery of
the COVID-19 outbreak shall include human service providers.

Section 7 requires that subject to available funds, commissioners of
social services in consultation with director of the office of the
aging, and the commissioner of division for youth, and commissioner of
mental health shall establish an annual three percent cost of living
adjustment effective April 1 of each fiscal year starting 2021-2022
fiscal year through 2023-2027 fiscal year.

Section 8 requires all debt incurred by non-profit human services
providers on state or local program contracts shall be forgiven.

Section 9 requires the cash advance on such human service contracts
shall not be recouped at the end of the fiscal year.
Section 10 requires all state capital obligations for human service
providers be fulfilled.

Section 11 requires the commissioners of social services in consultation
with director of the office of the aging, and the commissioner of divi-
sion for youth, and commissioner of mental health shall adopt an indi-
rect cost rate for human service contracts. This indirect cost rate
shall be modeled after the funding initiative New York City adopted in
fiscal year 2020.

Section 12 establishes a work group formed from the not-for-profit
contracting advisory committee in consultation with the attorney general
and representatives of human services providers to identify and make
recommendations on any easing of reporting requirements which were
caused by COVID-19 which increased efficiency for processing of human
services contracts. A report, along with the work group's recommenda-
tions shall be submitted to the Governor and legislature within one year
of the effective date of this act.

Section 13 provides funding of one hundred million dollars to the
nonprofit infrastructure capital investment program.

Section 14 provides a severability clause.

Section 15 provides for an immediate effective date.

 
JUSTIFICATION:

Underfunded government payment rates are a fundamental driver of finan-
cial distress for many human services organizations. Government
contracts dominate provider budgets but pay only about 80 cents or less
of each dollar of true program delivery costs, leaving budget holes
affecting the sustainability of organizations. With less State funding
than in the 1980s, it has been difficult for human services providers to
be agile and respond to the crushing and growing needs across New York.

COVID-19 has had a profound impact on New Yorkers, and has expanded the
need for the human services sector to innovate and provide additional
services to communities. However, 64 percent of surveyed nonprofit human
services organizations believe they will have to start scaling back
services, and over 70 percent will need to lay off staff as a result of
budget shortfalls. Their survival or failure directly impacts how quick-
ly communities will be able to recover from the pandemic.

The human services workforce, upwards of 800,000 workers in New York
State, bear the brunt of this divestment. Because wages have remained
stagnant due to a lack of funding, the average human services worker is
living at or below the poverty line, and approximately 60 percent of the
workforce qualifies for public assistance. This disinvestment in the
human services workforce has also led to turnover rates in parts of the
sector upwards of 40 percent. Even though they are at high risk of expo-
sure and may not have access to PPE, many staff continue to work to
ensure that their communities are cared for.

Long before this crisis hit, State contracting agencies have asked
providers to do more with less. Given the deteriorating conditions and
the potential likelihood of a deep recession in the aftermath of the
pandemic, the sector needs real support and systemic change to fully
recover from the impacts of COVID-19 and to continue to build the
wellbeing of New Yorkers. This historical and systemic divestment in the
human services sector and the glaring disparities of those most affected
by this pandemic have resulted in inadequate resources for clients,
workers, and children of human services workers.

Low-income neighborhoods, as well as Black and Latin communities, are
being hardest hit by this pandemic due to deeply rooted structural
racism. Devastating data shows New Yorkers experiencing poverty and
people of color are more likely to get sick, die from COVID-19, and
suffer financially due to lack of access to health care, affordable
housing, and economic insecurity. Immediate resources are needed to aid
New Yorkers who are unable to stay at home or do not have a home, facing
health inequities and food insecurity.

Human services programs have been fighting COVID-19 since the beginning
of the crisis, and they continue to be on the frontlines in rebuilding
the economy. Investing in the human services sector now will also help
the economic recovery of New York by ensuring less New Yorkers get
exposed to COVID-19 and providing direct aid to those most impacted
through programs like supportive housing, job training, and childcare.
Too often, budget deficits are bridged with deep cuts to human services,
but doing so would be devastating in the wake of COVID-19 economic
recovery.

Providing funds to the human services sector is one step forward in
making sure those who are most at risk of contracting COVID-19 and are
most economically affected have access to direct and local support.
Human services nonprofits are on the frontlines providing food and
resources to children, seniors, those experiencing homelessness, people
with disabilities, individuals who are incarcerated or otherwise
involved in the justice system, and immigrants, as they are being called
on to assist families whose lives have been disrupted by this pandemic.

The social and economic security of our State is at stake and now is the
time to recognize the lifesaving work of human services workers and
compensate them fairly. The Protections for Human Services Providers'
Act includes immediate relief and sustainable long-term investments for
community preservation and recovery proposals.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.