LI nonprofits can wait months for gov't funds

Nonprofits on Long Island that receive government funds to provide services such as drug and alcohol counseling and after school programs can wait for months for those funds due to municipal contract delays.

This perennial problem leaves some nonprofits unable to pay rent or staff salaries while they await the money.

"Every agency has probably had an issue [with delays] at some point or another," said Gwen O'Shea, president and chief executive of the Health & Welfare Council of Long Island.

The Suffolk legislature is set to hear two bills next week that would establish prompt contracting and payment policies for contracts with nonprofits, including a requirement that the county pay interest on late payments to nonprofits.

Legis. DuWayne Gregory (D-Amityville) said the county process has improved, but "still needs to be addressed."

Suffolk County has made efforts to streamline contracting. Two years ago, it began holding a "contract signing day" for nonprofits at the beginning of each year, and a new staffer oversees nonprofit contracts.

"It dramatically improved the situation," said County Executive Steve Levy.

Judy Pannullo, executive director of the Suffolk Community Council, which represents almost 200 agencies, agreed. "It's so much better now and such a relief," she said.

In Nassau, O'Shea said her group has been in talks with the county over improving the process there.

Delays "should be the exception to the rule," said O'Shea. "Having payments timely shouldn't be the exception."

County spokesman Michael Martino said all contracts are being scrutinized, especially during the tight economy.

"While we apologize for the delay, the monies Nassau pays must be thoroughly reviewed for compliance and effectiveness," he said. "Whether this is creating a delay longer than last year is being researched."

Delays also can be caused by the nonprofits themselves if they don't return paperwork on time, or they omit information. But even when nonprofits do it right, they can still end up waiting, agency officials and legislators said.

Claudia Rotondo, executive director of the Baldwin Council Against Drug Abuse, said a late contract from the county meant she and her five-person staff worked without pay from Jan. 1 until the end of March.

"I go through this every year," Rotondo said. "I would like to see anybody else in the county offices work one day past not getting one paycheck."

Nonprofits used to rely on loans from banks to pull them through the gap. But as banks lend less, agencies find it difficult to borrow to pay their expenses as they wait.

Tedd Levy, executive director of Freeport Pride, a youth services agency, said he borrowed $350,000 this year to cover the gap, but estimated he'll pay $8,000 in interest.

"I don't like to have to raise money to compensate for the government being late," he said. "I'd rather be able to fundraise money that goes exclusively to serving clients."

Nassau Legis. Judy Jacobs (D-Woodbury) said the delays are "totally unacceptable," adding that she would be consider legislation similar to the Suffolk bills.

The problem occurs at the state level as well. Last year, the state comptroller's office found that up to 87 percent of state contracts with nonprofits were signed late.

The state comptroller plans to meet with nonprofits and state leaders next month to consider ways to streamline the process.

"I love the work that I do, but it's this stuff that's so draining," said Marcia Spector, executive director of SNAP Long Island, a teen pregnancy prevention group, in Patchogue, and a recipient of late state and county contracts. "It would be in everybody's best interest to clean it up."