The Committees on Finance and Children & Youth convened on May 26, 2025, to discuss the Fiscal Year 2026 Executive Budget for New York City, focusing on critical funding issues affecting community-based organizations (CBOs) and youth services. The meeting highlighted significant concerns regarding the current financial challenges faced by service providers, particularly in light of inadequate funding rates.

The session began with a discussion on the pressing issue of underfunding for essential services provided to young people. Several committee members expressed frustration over the disparity between the costs of services and the funding received, emphasizing that many providers are forced to subsidize their operations through private donations and other resources. One member articulated the sentiment that while future investments are promising, immediate support is necessary to address the current crisis faced by these providers.

A notable point raised was a letter signed by over 50 providers urging the administration to address funding disparities, which totaled approximately $154 million. This letter underscored the urgent need for the city to acknowledge the struggles of these organizations, which are critical to the community's well-being.

The conversation then shifted to operational challenges faced by CBOs, particularly regarding the use of rented spaces in facilities operated by other government agencies, such as NYCHA. Questions were raised about the Department of Youth and Community Development's (DYCD) mechanisms for supporting CBOs during disruptions caused by capital projects. Committee members sought clarity on whether new positions within DYCD would be dedicated to helping organizations navigate these challenges.

In response, DYCD officials confirmed that regular meetings with NYCHA are held to address operational issues, but acknowledged that there are gaps in communication and support for CBOs during site disruptions. The officials also clarified that the new positions in the budget are primarily focused on expanding runaway and homeless youth beds and fatherhood programs, rather than directly supporting Cornerstone and Compass programs.

The meeting concluded with a discussion on the role of YMS Management as a fiscal agent for smaller organizations. DYCD representatives assured the committee that they conduct annual performance evaluations of YMS to ensure compliance and effectiveness. However, concerns were raised about the responsiveness of YMS to CBOs' needs, particularly in financial matters.

Overall, the hearing underscored the urgent need for increased funding and support for community-based organizations serving New York City's youth, as well as the importance of effective interagency coordination to minimize disruptions to critical services. The committee members emphasized the necessity of addressing these issues promptly to ensure that providers can continue to deliver essential services to the community.