NYS Withholds 20% Due to Massive Budget Crisis

Nonprofits, school districts and others who receive state funds are further impacted by the state’s massive budget deficit caused by COVID-19 losses.

Effective immediately, all New York State authorities and agencies will withhold 20% of local aid payments that are made entirely with state funds. This mandate includes the Office for People with Developmental Disabilities (OPWDD), and other similar state agencies, who will begin to withhold 20% of payments for non-Medicaid local assistance programs.

In the absence of additional federal relief, the state has also cut aid to cities, counties and public schools and implemented freezes on non-essential hiring, contracts and pay raises. Any of these reductions could become permanent if federal aid is not received to offset the state’s revenue losses.

We’re Here to Help

Grassi’s Not-for-Profit practice is dedicated to helping you understand how your local aid payments and reimbursements will be affected by this new mandate and develop a strategy to ensure your organization’s continued financial health, cash flow and sustainability.

For more information, please contact your Grassi advisor or David M. Rottkamp, Not-for-Profit Practice Leader, at drottkamp@grassiadvisors.com or 212.223.5046.


David M. Rottkamp David M. Rottkamp, CPA, is an Audit Partner and Nonprofit Practice Leader, at Grassi. David has over 36 years of experience providing audit and advisory services to the not-for-profit and health care industries. David focuses on organizations serving individuals with special needs, religious organizations, educational institutions, membership associations, social service providers, healthcare providers, foundations, and the arts and culture world. David’s technical knowledge allows... Read full bio

Categories: Advisory