N.Y. Mental Hygiene Law § 25.11: Distribution of state aid to a local governmental unit

§ 25.11 Distribution of state aid to a local governmental unit.

Notwithstanding section one hundred twelve of the state finance law,

the office is authorized to grant state aid annually to local

governmental units in the following manner:

(a) Local governmental units shall be granted state aid by a state aid

funding authorization letter issued by the office for approved net

operating costs for voluntary agencies to support the base amount of

state aid provided to such voluntary agencies for the prior year

provided that the local governmental unit has approved and submitted

budgets for the voluntary agencies to the office. The voluntary agency

budgets shall identify the nature of the services to be provided which

must be consistent with the local services plan submitted by the local

governmental unit pursuant to article forty-one of this chapter, the

areas to be served and include a description of the voluntary agency

contributions and local governmental unit funding provided. The local

governmental unit shall enter into contracts with the voluntary agencies

receiving such state aid. Such contracts shall include funding

requirements set by the office including but not limited to

responsibilities of voluntary agencies relating to work scopes, program

performance and operations, application of program income, prohibited

use of funds, recordkeeping and audit obligations. Upon designation by

the office, local governmental units shall notify voluntary agencies as

to the source of funding received by such voluntary agencies.

(b) State aid made available to a local governmental unit for approved

net operating costs for a program operated by a voluntary agency or a

local governmental unit may be reduced where a review of such voluntary

agency's prior year's budget and/or performance indicates:

(1) that the program operated by a local governmental unit or

voluntary agency has failed to meet minimum performance standards and

requirements of the office including, but not limited to, maintaining

service utilization rates and productivity standards as set by the

office provided however, that upon determination that the program is not

meeting the minimum standards and requirements, the office shall notify

such program operated by a local governmental unit or voluntary agency

of their deficiencies, and if appropriate, a corrective action plan that

includes specific actions to address any deficiencies and a timetable

for implementation shall be developed. State aid may be reduced if a

corrective action plan is not approved by the office or is not

implemented in a timely and satisfactory manner;

(2) that the voluntary agency has had an increase in voluntary agency

contributions that reduces the approved net operating costs necessary,

except where the office has approved an alternative use of such

voluntary agency contributions or such voluntary agency contributions

are necessary to ensure financial viability.