FINANCE

NEW YORK STATE LEGISLATURE — Governors Hochul's proposed 2023-2024 budget for human services drew mixed reactions during a joint legislative hearing Monday, with lawmakers expressing particular concern about the stability of the state's childcare sector despite unprecedented funding increases. Acting Commissioner Suzanne Miles-Gustave of the Office of Children and Family Services presented a $7.6 billion, four-year commitment to childcare assistance—the largest in state history—along with proposals to streamline applications and increase income eligibility limits to 85 percent of state median income. The budget would make an estimated 113,000 additional children eligible for assistance. However, Sen. Jabari Brisport, chair of the Senate Committee on Children and Families, pressed Miles-Gustave on the sector's continued deterioration. He cited data showing New York has lost roughly 20,000 childcare slots since 2020, with some regions losing over 50 percent of capacity over the past decade. Brisport questioned whether the proposed $389 million in third-round stabilization grants—funded by one-time federal pandemic dollars—would actually stabilize the sector or merely provide temporary relief. "Would you say the childcare sector is stable now?" Brisport asked. Miles-Gustave acknowledged it was not, saying the sector "is in crisis." Commissioner Daniel Tietz of the Office of Temporary and Disability Assistance highlighted other major budget initiatives, including $1 billion to help New York City shelter and serve asylum seekers arriving in record numbers, and continuation of the Governor's $25 billion five-year housing plan to create or preserve 100,000 affordable units. Tietz reported that the Emergency Rental Assistance Program has made more than 225,000 payments totaling $2.8 billion, with nearly nine of 10 payments benefiting households at or below 50 percent of area median income. The application portal closed January 20. Assemblywoman Maritza Davila, chair of the Assembly Social Services Committee, questioned the distribution of funds for a new Youth Opportunities Program targeting communities with high gun violence rates. Tietz clarified the program would operate outside New York City, with funding based on the WIOA program formula. The hearing, held in Hearing Room B of the Legislative Office Building, included testimony from state agency officials and was attended by members of both the Senate Finance Committee and Assembly Ways and Means Committee. Additional testimony from advocacy groups and service providers is scheduled to continue. NEW YORK STATE SENATE FINANCE COMMITTEE — The state's top human services officials faced pointed questioning on childcare equity, fraud prevention, and funding disparities during a joint legislative budget hearing on Feb. 13, with lawmakers pressing for faster action on provider compensation and expanded access to vulnerable populations. Acting OCFS Commissioner Miles-Gustave outlined an ambitious childcare expansion plan that would make an additional 113,000 children eligible for assistance by raising the income threshold to 85% of State Median Income. However, she acknowledged a persistent gap between what the state reimburses childcare providers and the true cost of care—a disparity that drew sharp questioning from Sen. Brisport, who challenged the logic of paying providers less than their operating costs. The commissioner noted that current reimbursement rates at the 80th percentile have increased provider payments by an average of 33%, with some regions seeing 40% increases. Yet she conceded that OCFS has not conducted a cost-of-care study to determine how much additional funding would be needed to fully cover provider expenses. She attributed this partly to the failure of the federal Build Back Better legislation to pass. Sen. Brisport also pressed Miles-Gustave on the exclusion of undocumented children from state-funded childcare, noting that New York City uses local funds to serve this population. The commissioner responded that federal restrictions apply to CCDF funds, though the state operates 278 Head Start and Early Start programs that serve undocumented children. OTDA Commissioner Tietz addressed the escalating crisis of stolen public benefits, announcing plans to allow recipients to replace up to two months of stolen SNAP and public assistance benefits twice yearly, pending USDA approval. However, he acknowledged that no state currently has chip-enabled EBT cards—a technology that could prevent fraud—and estimated implementation would take "a couple of years." Sen. Persaud raised longstanding equity concerns, questioning why the state continues to reimburse New York City for only 85% of TANF-eligible costs while paying 100% in all other districts. Tietz acknowledged the disparity predates his tenure by roughly a decade but offered no commitment to change it, deferring to the Legislature and Governor. On migrant services, Tietz broke down the $1 billion allocation: $767 million for shelter and services, $130 million for Medicaid, and approximately $150 million for National Guard deployment. He also disclosed that approximately 73,000 subsidized housing ERAP applications remain on hold due to prioritization rules that favor non-subsidized housing. Sen. Murray praised the administration's childcare initiatives as addressing a "threefold crisis" of access, provider availability, and workforce shortages. He urged engagement with business groups including NFIB and the Business Council to create public-private partnerships, suggesting that employers offering childcare benefits would attract better workers. The hearing revealed significant implementation challenges ahead: Miles-Gustave acknowledged that only 10% of currently eligible children receive assistance, attributed partly to a "cumbersome and antiquated" application process. She outlined plans for a statewide online application system, but Assemblywoman Byrnes raised concerns about rural areas lacking internet access, prompting Miles-Gustave to describe a multimedia outreach campaign using radio, TV, bus, and billboard advertising. Both commissioners faced questions about workforce capacity. Byrnes asked pointedly: "At some point you have to have bodies to take care of them." Miles-Gustave acknowledged that increasing childcare supply is a main focus but did not provide specific targets or timelines. The hearing underscored tensions between ambitious policy goals and fiscal constraints. Sen. Murray questioned how long the state's reliance on $800 million in rollover funds and $500 million in federal pandemic funds would last, and whether costs would eventually shift to counties. Miles-Gustave cited the Governor's four-year, $7.6 billion childcare commitment but did not address long-term sustainability beyond the pandemic funding window. NEW YORK STATE SENATE FINANCE COMMITTEE — State human services officials faced pointed questions from lawmakers on Tuesday about whether the Governor's 2023-2024 budget adequately addresses critical gaps in detention capacity, childcare access, and child poverty reduction. Acting OCFS Commissioner Sheila Miles-Gustave acknowledged that Raise the Age implementation has been hampered by pandemic delays, with secure detention bed expansion stalled. She projected that 150 additional beds will be available within two to three years from county capital plans, but acknowledged current capacity constraints: New York City has approximately 212 secure beds while the rest of the state has roughly 179. The commissioner noted that staffing shortages are preventing some counties from fully utilizing existing beds. Sen. Rolison, drawing on his experience as former Poughkeepsie mayor, pressed for details on the timeline and capacity, while Sen. Brisport challenged the agency's claims about childcare provider waitlists, citing recent testimony from providers reporting unprecedented demand. On child poverty, Sen. Gounardes expressed skepticism about the budget's approach, noting New York has among the highest child poverty rates nationally and questioning why the budget lacks substantial increases in child tax credits. Commissioner Tietz acknowledged the Child Poverty Reduction Advisory Council will make recommendations in early March but said those proposals are not yet in the budget. Migrant services dominated discussion, with Commissioner Tietz explaining that approximately 900 National Guard troops are providing program support in New York City shelters. The budget covers roughly 29 percent of the city's estimated migrant costs. Sen. Persaud pressed for details on federal hot meals program funding, with Tietz projecting a response within 60 days. On childcare, the commissioners defended a $389 million stabilization grant proposal as adequate, down from $1 billion at the pandemic's height. But Assemblywoman Forrest questioned whether the reduced funding would prevent provider closures. The hearing revealed significant gaps between statutory obligations and budget allocations: child welfare funding remains at 62 percent state reimbursement despite a 65 percent statutory requirement, and only 66,000 of 100,000 eligible families receive childcare subsidies. Multiple lawmakers signaled they expect follow-up written responses to unanswered questions. NEW YORK STATE SENATE FINANCE COMMITTEE — State officials faced intense scrutiny over the Governor's $1 billion migrant services allocation during a joint legislative hearing on the 2023-2024 Executive Budget on February 13, with Sen. Krueger challenging whether the funds represent genuinely new spending or relabeled existing expenditures. OTDA Commissioner Tietz testified that the allocation—primarily directed to New York City—includes $741 million for a 29 percent state reimbursement of shelter and supportive services costs, $162 million for National Guard personnel, and $25 million for resettlement. However, Sen. Krueger pressed Tietz on whether Medicaid and safety net costs included in the billion-dollar figure should be counted as migrant-specific funding, given that eligible individuals would receive these benefits regardless of immigration status. "What percentage of that billion is actually new money versus dollars that would have been in the budget anyway, we just call it something different this year?" Krueger asked. Tietz responded that "the vast majority is new money," citing the $741 million shelter reimbursement as clearly new. The hearing revealed acute strain on New York City's shelter system. Tietz acknowledged approximately 21,000 migrants in Department of Homeless Services facilities and 8,000 in Health Emergency Response Centers, alongside 49,000 non-migrant shelter residents. He admitted concern about "the potential collapse of DHS" and noted that the 900 National Guard personnel represent critical capacity that would otherwise be unavailable. Sen. Krueger warned of impending system breakdown, stating: "I really feel like we are literally at the verge of just total chaos in trying to operate these programs." She highlighted a shortage of nonprofit service providers willing to staff new shelters and HERCs, a problem Tietz acknowledged. On other human services programs, Commissioner Tietz reported that the Emergency Rental Assistance Program has distributed $2.82 billion through approximately 225,000 checks, with roughly $300 million remaining of the $3.1 billion appropriation. The Landlord Rental Assistance Program, now closed, made nearly 28,000 payments totaling $283 million. Tietz indicated the ERAP contract with vendor Guidehouse will be extended beyond its May expiration, with expectations that "the vast majority" of work will be completed by year-end 2023. Regarding SNAP benefits fraud, Tietz reported approximately $5 million in skimming losses and explained that new federal law—effective late December—permits states to replace stolen SNAP benefits equal to two months of benefits, twice yearly. New York plans to submit its replacement plan to the USDA by month's end. OCFS Acting Commissioner Miles-Gustave testified on child welfare and aging services initiatives, including consolidation of after-school programs and expansion of trafficking prevention through Safe Harbour laws and specialized residential programs. NYSOFA Acting Director Greg Olsen highlighted the state's status as the first age-friendly state and discussed the Master Plan for Aging, noting continued funding for Community Services for the Elderly, elder abuse prevention, and innovative programs including animatronic pets and AI-powered isolation-reduction tools. NEW YORK STATE SENATE FINANCE COMMITTEE — Governor Hochul's 2023-2024 Executive Budget for human services drew scrutiny from lawmakers on February 13, with testimony revealing significant funding gaps in aging services and cautious optimism about new veterans' initiatives. The Division of Veterans' Services highlighted substantial federal funding achievements, with Director Viviana DeCohen reporting that the agency brought $900 million in tax-free federal dollars into New York in 2022, plus $400 million in educational benefits for 23,000 veterans. The budget includes $300,000 for Mobile Veterans Service Centers to reach isolated veterans and $1.1 million for a new Homeless Veterans' Housing Program. However, the aging services testimony exposed deeper structural problems. Assemblyman Ron Kim presented data showing that while New York's older population grew 31 percent from 2011 to 2021, the State Office for the Aging's budget grew only 25 percent—a 6 percent gap that has created waiting lists and service delays. Kim cited a conservative analysis suggesting that a $390 million additional investment in SOFA over the past decade would have saved the state $3.75 billion in Medicaid spending. Acting Director Olsen defended the administration's approach, noting that 99.5 percent of SOFA funding already goes to low-income seniors and that the agency is pursuing a private-pay option for higher-income seniors to free up resources for those in poverty. She acknowledged the Long Term Care Ombudsman Program is severely underfunded, receiving only $1.4 million federally to run a statewide program, though recent state investment allowed hiring 35 staff and increasing facility visits from 30 percent to 50-60 percent. Sen. Cordell Cleare, the new chair of the Aging Committee, pressed Olsen on inadequate cost-of-living adjustments for home care workers—2.5 percent in the proposed budget versus 5.4 percent the prior year—and demanded specific dollar figures for addressing service gaps. Sen. Scarcella-Spanton, the new Veterans chair, expressed concern about a reported 14 percent cut to the veterans budget and requested detailed breakdowns of how funding will serve specific populations and counties. The hearing underscored a recurring legislative frustration: agency officials defending budgets they acknowledge are insufficient, while lawmakers demand concrete numbers on how proposed investments will address documented shortfalls in services for vulnerable populations. NEW YORK STATE SENATE FINANCE COMMITTEE — A joint legislative hearing on the 2023-2024 executive budget for human services revealed deep concerns about funding disparities and service gaps, particularly for veterans and seniors, as state officials defended proposed budgets that lawmakers characterized as inadequate. The Division of Veterans Services faces a $4.78 million budget cut—approximately 14 percent—even as it transitions to full department status. Director Reverend DeCohen testified that the division delivered $900 million in services to veterans despite the reduction, but Sen. Ashby challenged the adequacy of state support, noting a stark funding disparity: New York allocates $30 million for roughly 700,000 veterans, compared to New Jersey's $104 million for 300,000 veterans and Massachusetts' $97 million for 300,000 veterans. The Dwyer Peer-to-Peer suicide prevention program, which has been expanded to $7.7 million, remains underfunded relative to need, lawmakers said. Sen. Ashby pressed DeCohen on whether the program could receive permanent funding rather than annual appropriations, and whether the department would pursue additional federal grants. DeCohen acknowledged the need for continued partnership but did not commit to specific funding increases. The State Office for the Aging faced equally pointed criticism over the Long-Term Care Ombudsman Program, which currently covers only 60 percent of nursing homes despite a legal requirement for 100 percent coverage. Assemblywoman Forrest cited AARP data showing 96 percent of New York City nursing homes received no ombudsman visits. Director Greg Olsen acknowledged the program has been "traditionally underfunded" and that New York ranks 39th nationally in state investment. A proposed $2.5 million increase was deemed insufficient by multiple lawmakers. Home health aide retention emerged as a critical issue. Assemblyman Gallahan reported severe shortages in his district, with aides leaving for fast food jobs paying $2-3 more per hour. Olsen noted the state provided a $2 wage increase last year with another dollar coming in October 2023, but acknowledged the work remains difficult without guaranteed hours or travel pay. Sen. Persaud raised concerns about home health attendants working 24-hour shifts while being paid for only 13 hours, and reported constituents still waiting for home-delivered meals despite claims by Olsen that waitlists are not widespread. The Master Plan for Aging, required by law since September 2020, remains in development with a draft expected in spring 2023 and final report in 2024. Olsen said the state received $500,000 of a promised $1.5 million for the plan's development. Assemblyman Eachus requested $150,000 each for Boys State and Girls State programs run by the American Legion, which the state no longer funds. DeCohen, himself a Legionnaire, expressed support for restoring the appropriations. The hearing underscored tensions between the administration's budget proposals and legislative priorities, with multiple lawmakers signaling intent to increase funding during budget negotiations. New York State legislators heard urgent testimony on Wednesday about critical funding gaps in childcare, early childhood services, and nutrition assistance programs during a joint hearing on the 2023-2024 Executive Budget for human services. Childcare advocates painted a dire picture of a sector in crisis. The Early Care & Learning Council reported that childcare resource and referral agencies have received no contract increases since 2012 despite 29.7% inflation, while 64% of New York State remains a childcare desert. All Our Kin testified that the state has lost over 1,300 childcare programs and 10,000 childcare slots since the pandemic, with childcare educators earning in the bottom 3% of all wage earners. The organization called for a $1 billion childcare workforce compensation fund this year, arguing that the Executive Budget's $389 million in stabilization grants is insufficient. The Adirondack Birth to Three Alliance highlighted rural disparities, noting that 80% of Adirondack census tracts were childcare deserts before the pandemic and the region has since lost another 1,200 slots. The region's families earn $10,000 annually less than other New Yorkers, and 18.2% of children live in poverty. Hunger Solutions New York testified that SNAP provides benefits to 2.8 million New Yorkers but warned that the Executive Budget does not include the $1 million the Legislature added last year for outreach. Without restoration, services will be reduced in Erie and Monroe counties and all New York City boroughs, and eliminated entirely in seven rural counties. The organization noted that every state dollar invested in SNAP outreach generates a 27-fold return on investment. Docs for Tots reported that the Help Me Grow early childhood development model reached 10,000 children in 2022 across four communities but expressed disappointment that the Executive Budget merely reappropriated last year's $200,000 investment without allocating continued funding. Senators pressed agency officials on funding adequacy. Sen. Jabari Brisport questioned whether stabilization grants have actually reversed childcare slot losses and noted that $1 billion in stabilization grants was insufficient to save the sector two years ago. The hearing was held before the Finance Committee on February 13, 2023. New York State lawmakers heard urgent pleas for increased funding and wage support for human services workers during a joint Senate-Assembly Finance Committee hearing on the 2023-2024 Executive Budget, with advocates warning of service waiting lists, workforce shortages, and staff turnover that threatens vulnerable populations. Aging services advocates reported approximately 10,000 seniors waiting for essential services such as meal delivery and adult day care, with 7,713 unique customers waiting for case management. The Association on Aging in New York emphasized that 100 percent of Area Agencies on Aging reported waiting lists for personal care services due to a critical shortage of direct care professionals. MS. Preve of the Association testified that a significant state investment of about $4 billion in home care wages could yield $7 billion in return. Child welfare and youth services organizations painted a similarly dire picture. Northern Rivers Family of Services reported 105 current vacancies and over 1,000 people on waitlists for mental health services, with 25 percent of staff working second jobs and 10 percent working third jobs. The Council of Family and Child Caring Agencies warned that foster-care programs face a funding crisis, with no known rates as of April 1st, creating a six-week gap before the state fiscal year ends June 30th. YouthBuild programs reported exceptional outcomes, with 100 percent placement rates in jobs or post-secondary education and zero recidivism for youth with prior justice system involvement. The New York State Network for Youth Success requested $219 million to reorganize after-school programs, citing research showing every dollar invested saves at least $3. Domestic violence advocates reported that on a single day during the national count, more than 9,100 adult and child victims received services in New York—the highest in the nation. However, the New York State Coalition Against Domestic Violence testified that DV staff were excluded from last year's cost-of-living adjustments and are not included in this year's COLA proposal, despite being designated essential frontline workers during the pandemic. Senators pressed witnesses on workforce retention, with Sen. Murray highlighting a direct employment model in 12 counties that achieved 100 percent retention of home health aides and cleared Putnam County's waiting list for two years. Multiple advocates called for an 8.5 percent COLA and support for a proposal to increase prevention services funding to 75 percent of county budgets. The hearing, held February 13, underscored the tension between the Governor's proposed investments in mental health and childcare and the ongoing underfunding of the workforce that delivers these services. NEW YORK — Advocates for vulnerable populations testified before the state Legislature on Monday that the 2023-2024 Executive Budget fails to adequately fund critical human services, with particular concern about chronic underfunding of legacy programs and insufficient workforce support across multiple sectors. The joint Senate-Assembly hearing on the human services budget revealed a pattern of underfunding that advocates say is forcing service providers to cut staff and turn away clients. The most dramatic example came from testimony about domestic violence services, where 87 programs face $11.7 million in cuts despite increased demand and rising lethality of incidents during and after the pandemic. "We're not balancing it well. And victims are going to be the ones who bear the brunt of that," said Joan Gerhardt of the New York State Coalition Against Domestic Violence, describing vacant positions, layoffs, and pulled job postings across the network. The childcare workforce crisis dominated much of the testimony. Dede Hill of the Schuyler Center called the Governor's $389 million proposal "a good step, but it is not enough," arguing that $1 billion annually is needed to provide a $12,500 wage supplement per worker. "Providers simply cannot retain staff or recruit new staff with a small one-time bump in pay," Hill testified. Melinda Mack of the New York Association of Training and Employment highlighted broader workforce challenges, noting that 2 million jobs in the state's top 10 occupational groups pay less than a living wage and 36 percent of New Yorkers have a high school diploma or less. She criticized the Governor's budget for providing zero dollars to the Office of Strategic Workforce Development at Empire State Development. Supportive housing advocates highlighted a stark disparity between legacy and newer programs. Steve Piasecki of the Supportive Housing Network of New York noted that the New York State Supportive Housing Program funds approximately 20,000 units statewide at $2,400 to $3,500 per unit annually, compared to $25,000 per unit for the newer ESSHI program. He estimated $150 million would be needed to address the disparity. Emilia Sicilia of the Empire Justice Center pointed to shelter allowances that have not been updated since 1988 for households without children—despite rents tripling in 35 years—and since 2003 for households with children despite rents doubling. She also advocated for restoring $3 million in funding for the Disability Advocacy Program, which she said generates at least $2 in benefits to the state for every dollar invested. MJ Okma of SAGE testified that the state is unprepared for the aging of its HIV-positive population, with 72 percent of New Yorkers living with HIV projected to be over age 50 by 2030. He requested $860,000 in funding for various SAGE programs serving LGBTQ+ and HIV-affected older adults. Senators expressed frustration with the budget's priorities. Sen. Krueger challenged the logic of continuing to underfund legacy programs, saying the state is "playing a game of chicken" with service providers. Sen. Rolison, a retired police officer, criticized the focus on public safety without corresponding investment in crime victim services, saying the state is moving backward on issues addressed in the 1980s and 1990s. The hearing underscored a broader tension in the budget: while the Governor proposed new initiatives and some expansions, advocates argued that chronic underfunding of existing programs and workforce support threatens the viability of the entire human services infrastructure. NEW YORK — Advocates for veteran services testified before the Joint Legislative Committee on Finance on Feb. 13 that while the state's 2023-2024 Executive Budget represents progress in funding the Dwyer peer-to-peer reintegration program, the increases fall short of meeting growing demand across New York's 60 participating counties. Kirby Hannan and Gavin Walters, representing veteran service organizations, praised the expansion of the Dwyer program from 4 counties a decade ago to 60 counties today, and noted that a $7.7 million budget increase enabled every county to establish a program. However, Walters testified that the funding "should be more, absolutely," noting that his Ulster County program operates with only one full-time employee and relies on fundraising to cover emergency hotel costs for veterans in crisis. The testifiers highlighted a critical gap: women veterans, currently 17 percent of the veteran population and projected to reach 25 percent, are being underserved because peer-to-peer mentoring traditionally occurs at veteran posts rather than through accessible community channels. Walters emphasized that peer mentors have evolved into de facto case managers, fielding crisis calls at 2 a.m. and providing advocacy services far beyond the program's original scope. Assemblyman Ra raised concerns about a separate $5 million grant program for veterans service organizations, noting that applicant numbers have been "very low." Hannan criticized the Department of Veteran Services for treating the grants as a procurement program rather than a grant program, making the application process "incredibly counterintuitive" and deterring local organizations from applying. Senators Ashby and Scarcella-Spanton signaled support for making the Dwyer program a permanent budget line item, with Ashby noting that the recent elevation of the Division of Veteran Services to agency status creates an opportunity to move beyond annual appropriations. Sen. O'Mara expressed concern that the state's overall attention to veteran services remains "woeful," while praising the testifiers' work. The hearing concluded with requests from testifiers to submit additional written materials to the committee chairs for distribution to all members.