New York State Legislature Passes Bill to Allow Certain Not-for-Profit Entities To Make Collaborative Purchasing Agreements w

Both houses of the New York State Legislature passed a bill (A3292/S2243) yesterday that allows certain not-for-profit entities that provide essential county services to engage in collaborative purchasing agreements for commodities and services with their specific counties. The legislation, sponsored by Assemblywoman Sandy Galef (95th Assembly District) and Senate Minority Leader Andrea Stewart-Cousins (35th Senate District), provides relief for those not-for-profit organizations that are critical government partners, providing quality and accessible services to local residents, and yet find themselves struggling financially as a result of cutbacks in county budgets.

It is not news that the 2% tax cap implemented statewide a number of years ago has had financial impacts on a variety of programs available in the schools, availability of recreation activities, and municipal staffing, among other things. As a result, a large number of services, particularly those in the social sector that would have in the past been offered by county agencies have been contracted out to not-for-profit groups. As employers, not-for-profits provide many thousands of jobs, accounting for more than 18% of all private sector jobs in New York. Yet, these same organizations are being squeezed as they face unprecedented declines in philanthropic support, county contracts, and individual donations that greatly impact the ability to continue to deliver services to vulnerable residents, in addition to the potential negative economic impact associated from a loss of not-for-profit jobs. The Galef/Stewart Cousins bill should help to assist non-profits by cutting costs through shared contracts.

“This legislation will allow non-profits, which do a tremendous amount of necessary work in our communities, an easier avenue to get the materials needed to fill their purpose,” said Assemblywoman Sandy Galef. “The idea is to lower the cost of procuring commodities and services to the organizations that supplement the government in supporting their neighbors. Many local governments successfully minimize the cost to taxpayers through collaboration with other local governments. This legislation allows not-for-profit groups to fully collaborate with the local governments.”

“Local governments and not-for-profit community service organizations provide New Yorkers with vital services and share the goal of improving our residents’ quality of life,” Senator Andrea Stewart-Cousins said. “During these difficult economic times, local governments are struggling to provide essential services while minimizing the impact to taxpayers. By joining their purchasing power into larger orders they will save contributor and taxpayer money while reducing the cost of serving their communities.”

With the Governor’s signature, the legislation will go into effect immediately.