Coalition releases report showing impact of divestment on nonprofit workforce
Read the report here
Press Release – NEW YORK – Representatives of a statewide coalition of nonprofit organizations were joined by nearly a dozen members of the Senate and Assembly as they held a bake sale in the New York State Capitol to fill the funding gap left by the State’s continued divestment from these essential organizations.
The group also released a report showing the impact of this underfunding on the members of the social services workforce, who are predominately women and people of color. Nonprofit human services providers are the State’s first line of defense in combating pressing issues like poverty, but rising costs coupled with ever present needs and lack of investment have undermined the health of the sector, which is now at a breaking point.
As a result, human services workers are often poorly compensated, leading to high staff turnover that undermines the quality of service delivery. These workers often find themselves in the same position as their clients, in need of social service assistance to provide for their families. In each of the state’s ten economic regions, the average annual pay for social assistance workers in 2015 fell below $30,000, ranging from $23,100 in Central NY to $29,600 in New York City. In most upstate regions, average pay in social assistance is about half of what it is across all industries.
New York’s nonprofits support an increased minimum wage for both their workers and the communities they serve, but without State funding, these organizations cannot afford this mandated increase. The Assembly, Senate and Executive budgets have all failed to include this funding. While there was a laudable investment made in direct support staff for individuals with disabilities in both houses at the urging of the BeFair2DirectCare campaign, there was no funding provided for the broader direct contract human services field—everything from early childhood education to senior services.
Bake sale items included:
- Workforce Gingerbread Cookie to make up for the lack of funding for the minimum wage on direct human services contract
- Crumb-ling Infrastructure Cupcake for funds to restore the Nonprofit Infrastructure Capital Investment Program (NICIP)
- Dried out COLA to make up for the funding gap for Cost-of-Living Adjustment (COLA) in human services contracts.
- “Small Slice of the (Apple) Pie” to make up for the $500 million that hasn’t been invested in human services since the Great Recession in 2008-2009.
- Bag o’ crumbs to fund a 15 percent overhead rate on direct human services contracts to reimburse indirect costs.
“It is important that our social services organizations get the funding they need to perform their critical duties, said Senator Martin J. Golden. “We also to ensure that we adequately compensate the workers on the front line so they don’t have to worry about providing for themselves and their families. This budget must include enough funding to ensure the stability and effective of the social services industry.”
Senate Democratic Leader Andrea Stewart-Cousins said, “Human service providers are absolutely essential to the well-being of some of New York’s most vulnerable residents, and they deserve fair pay for their hard work. State government has a responsibility to provide needed resources and support so direct care workers are able to continue their essential responsibilities. The Senate Democrats will keep up fight to ensure the 2017-2018 State Budget includes progressive policies and wise uses of taxpayer money, and that means investing in our human service providers.”
“It is unfortunate that years of divestment have left many nonprofit workers, many on whom are women and people of color, struggling to survive,” said New York State Senator Marisol Alcantara. “These workers are society’s first line of defense against a broad variety of social problems, and those who choose to do this important, lifesaving work should be able to make sustainable, middle-class careers in this field. The high turnover and substandard wages faced by social service workers is shameful for the State of New York, and in my work as a Senator, I hope to improve the conditions and compensation faced by such workers.”
“Human Services is a critically important sector providing services to millions of New Yorkers. The State should offer the same commitment to their entire workforce as we are providing to direct care workers. The Assembly’s budget proposal includes a number of funding increases and restorations that would assist the human services sector, but more needs to be done for the workforce that gives so much,” said Assemblywoman Donna Lupardo.
“I am proud to stand with the statewide coalition of nonprofit organizations. As demonstrated by this bake sale, we will do whatever it takes to show that nonprofit human services providers are in need of more statewide funding. However many gingerbread cookies or pieces of apple pie it takes to fill this void, we cannot ignore these organizations, which are on the front lines of helping some of our most vulnerable New Yorkers,” said Assemblyman Andrew Hevesi.
“Now more than ever, New York’s lawmakers need a strong nonprofit sector to stand with them on the front lines in the fight for social justice,” said Michelle Jackson, Deputy Director and General Counsel of the Human Services Council. “Our organizations cannot continue to operate at a fiscal deficit, and more importantly, our workforce cannot continue to provide critical services on behalf of government with stagnant and low wages. We should not have to fundraise in order to fill gaps left because the government has decided not to pay the full cost for services that provide better opportunities for all New Yorkers.”
“Human services organizations and their workers are providing critical services for individuals and families across the state of New York,” said Jennifer Jones Austin, CEO and Executive Director of FPWA. “For far too long, these organizations have struggled to fill the gaps in funding left by state contracts. They are working to fulfill their mission to serve our communities in efficient, effective, and innovative ways every day but struggle to keep the lights on, to pay for essential overhead costs such as rent, and provide their staff with a living wage. Today’s day of action highlights the immediate investment needed in workers and in the sector.”
“The State has steadily reduced inflation-adjusted funding levels for human services, despite an increased need for these programs, and the nonprofit workforce has borne the brunt of this funding failure,” said Ronald Deutsch, Executive Director of the Fiscal Policy Institute. “These organizations deliver critical services on behalf of government, but their contracts are not fully funded and their workers are struggling to make ends meet. We must take action to fortify this sector so that it can continue tackling our most pressing issues and providing a foundation for strong communities.”
“The human services sector provides a wide array of services across the State,” said Loretta Zolkowski, Executive Director Human Services Leadership Council of Central New York. “In order for us to continue to do so, the State needs to provide proper funding for program, staff, and capital improvements in our organizations. The communities of Central New York and across the State deserve its fair share of the budget.”
“Human services employees work every day with individuals and families who are in crisis and at risk, most of whom have nowhere else to turn. In addition to providing care, New York’s this workforce is an economic engine, contributing billions to the state’s economic health,” said William T. Gettman Jr., Chief Executive Officer, Northern Rivers Family of Services. “Investment—real investment—in this sector is imperative and long overdue. The Governor and the legislature must sharpen their pencils and find a way to fund the $12 billon needed to allow human services organizations to fund COLA and cover minimum wage impacts.”
