Albany s super slow cash flow

They call it free public money when arts organizations, social service groups and sports teams win grants from state legislators. But the idea that it's free is misleading. The dollars come with extensive red tape and, in some cases, after delays of three years or more.

Waiting for state grants, some groups have taken out bridge loans. One large social service agency recently spent $200,000 in interest in one year for such a loan. Free, indeed.

Small organizations, like the Valley Stream Green Hornets youth football team, aren't able to take out bridge loans. So, they just wait. The Green Hornets are still anticipating $2,500 promised by Sen. Dean Skelos (R-Rockville Centre) in 2004.

This really shouldn't happen in New York, where we pay the second-highest state taxes in the country, behind California. Services here should be top-notch. Some of the fault for slow payments lies with the individual state agencies, some with the applicants themselves. But wherever the fault, it seems an odd way to run a 21st century state government.

A study by Newsday revealed last week that $318.8 million in member items - grants made by individual legislators - are sitting in an account awaiting distribution. After legislators make the grants, they must be channeled through the appropriate state agencies - a process that lawmakers are warning can take 2 1/2 years. State Comptroller Thomas DiNapoli says agencies do a "dismal" job of processing the more than 60,000 contracts they handle, including member items.

Some agencies have a reputation for moving quickly, like the Office for the Aging. Others, including the Office of Mental Health, are known for long delays. Indeed, Newsday's data back up the word-of-mouth: the Aging office had paid 84 percent of the 2005 member items by March 2008, while the Mental Health office had completed just 59 percent.

It's possible that senior services organizations are better at filling out applications, but that seems unlikely. Each agency should establish compliance deadlines and track them regularly.

Applications have slowed since Attorney General Andrew Cuomo added a new layer of oversight last year. Organizations must now certify their good legal standing, disclose conflicts of interest and promise they will use the money for a public purpose.

Whatever delay this oversight causes is well worth it, to discourage the brother-in-law factor. "I think that's the way it's got to be to make sure this stuff is not going in the wrong direction," says Assemb. Charles Lavine (D-Glen Cove).

These are no small pots, although there's quite a range among legislators. Skelos, who is Senate majority leader, is at the high end, with a member-item budget of $3.74 million this year. Meanwhile Craig Johnson, the lone Democrat among the Island's Senate delegation, was allocated just $300,000.

This page doesn't condemn member items, just their abuse. The system gives small organizations access to state funds without going through the massive state budget process. And legislators are better in touch with the needs of their constituents when they must field requests for money.

The solution to getting money faster to small groups may be better education for the potential recipients. The state Parks Department, for example, is holding workshops to help nonprofits navigate the process.

Another idea, from Citizens Action of New York, is to create a two-tiered system, with an easier process for small groups.

Well-meaning people can disagree about whether state funds should pay for football uniforms or the programs of Our Lady of Perpetual Help church in Lindenhurst. But once the money is promised, people are counting on it. New York's government could do wonders for its dysfunctional image by delivering on time.

http://www.newsday.com/news/opinion/ny-vpmem

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Albany s super slow cash flow