A coalition of human service organizations led by the Human Services Council is seeking what it thinks should be its fair share of 4-point-5 billion dollars New York received through bank settlements. They've launched a statewide campaign calling on Governor Andrew Cuomo to reinvest $354 million in the nonprofit human services sector, to protect vital programs for communities and jobs across the state.
In August, it was revealed that New York State was in line for a windfall of $4.5 billion, following a string of legal settlements with banks and insurance companies involving subprime loans and the 2008 financial crisis.
There were many questions regarding how the money would be distributed. A spokesman for the governor suggested the money could be used for one-time capital expenditures, reducing debt, and even adding to the state's cash reserves.
- (Chart ) Medicaid funds critical health, mental hygiene, and disability programs in the human services sector. The FY12 budget cut $2.7 billion in state Medicaid funding, including a 2% across the board cut for Medicaid payments to almost all Medicaid providers totaling approximately $345 million in state funding.
Fast forward to October: advocates for nonprofit human services agencies claim the entire human services sector is facing uncertainty. Fred Shack is Executive Director at Urban Pathways and Board Vice Chair of the Human Services Council. "Immediately following the fiscal crisis, the human services sector was hit with an 800 million dollar cut in funding between 2010 and 2012. That cut resulted in 27,000 jobs lost sectorwide. Most of those jobs impacted low-wage workers as part of our workforce. In addition to the job loss, the cuts also resulted in a loss of services directed at the most needed New Yorkers."
Shack notes domestic violence programs were rendered unable to serve 387,000 people as a result of fiscal cuts.
Sister Paulette LoMonaco, Executive Director at Good Shepherd Services in New York City, says her organization has been hit hard. The groups sent a letter to Cuomo, imploring his administration to invest $354 million in human services. She says that would help secure thousands of jobs and protect programs. "In some instances the services we provide are mandated, and the state is acting in loco parentis to many of the children who are in our care. It is a real neglect of responsibility on their part not to address the needs of the service providers who address the needs of our most vulnerable citizens in New York."
LoMonaco hopes the letter will serve as a springboard toward developing ongoing conversations with the Cuomo administration. Calls to the state capitol have not been returned. The human service agency advocates plan to host a series of events statewide to urge Governor Cuomo to include the $354 million in the new state budget when the legislature returns in 2015.
