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ALBANY – Mental health and substance abuse service providers have joined the chorus of calls to federal lawmakers to provide financial relief to state and local governments in light of millions of dollars in state payments being withheld.
Service providers were alerted in late June that their third-quarter payments from the state would be reduced by 20 percent as New York grapples with a multi-billion-dollar deficit caused by the response and ramifications of the coronavirus pandemic. They argued the community-based programs provide stable housing and support for individuals at a lower cost than other options, thus funding them adequately saves money in the long run.
U.S. Rep. Paul Tonko joined industry leaders Thursday for a virtual news conference calling for more federal assistance, which service providers say are necessary to ensure the withholdings do not become permanent resulting in layoffs of essential workers, service cuts and the evictions of hundreds of vulnerable New Yorkers.
The Democratic congressman championed the Heroes Act, passed by the House in May, as the stimulus package that provides a “wholesome” response to the devastation brought upon localities from COVID-19 while ensuring dignity to those who rely on the essential services facing cuts.
“I find this so fundamentally flawed that they are rejecting this assistance, this rescue package that we have offered that will bring assistance and sensitivity to our state and local governments,” he said of some U.S. senators who have sought to block any relief package from including financial assistance to state and local governments. “Since we passed the Heroes Act, 70,000 people have died. I don’t know what more expression of crisis is required to get these people to move.”
The Heroes Act proposes a $3 trillion stimulus package, which includes a second round of $1,200 checks for individuals, hazard pay for essential workers, more funding for COVID-19 testing, contact tracing and other funds for state and local governments.
Senate Republican leaders have been steadfast in their refusal to offer state and local assistance, suggesting it amounts to a “bailout” for Democratic-led states, and recently released their stimulus package void of additional funding for state and local governments.
The $1.1 trillion HEALS Act, or Help, Economic Assistance, Liability Protection and Schools Act, would also provide another round of $1,200 stimulus checks for individuals plus over $100 billion to help schools and child care facilities reopen, and more financial support for hospitals, health centers and coronavirus research. It also extends liability protections to businesses, schools and health care providers, offers another round of funds for businesses through the Paycheck Protection Program and cuts the federal unemployment insurance to $200.
Bill DeVita, executive director of Rehabilitation Support Services – which provides supportive services and housing to adults with severe mental illnesses, said if the cuts turn permanent, it could result in nearly 300 people being evicted.
“The money withheld is the money that goes to pay those rental stipends,” he said. “Should the withholds become a cut, then we estimate that there will be hundreds of people who will eventually be evicted from their apartments.”
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