Don’t Succumb to the Skills Gap

Don’t Succumb to the Skills Gap

A committed and productive labor force is essential to any industrial operation yet the manufacturing industry, typically employing between 10-499 employees each, has been understaffed in their factories.

Ironically, while unemployment is in the millions so are job openings. Manufacturers have been operating with these job gaps while meeting customer demand, amounting to millions of U.S. dollars annually. An analysis of The U.S. Bureau of Labor Statistics (BLS) Monthly Labor Review demonstrates this contrary state of affairs: while there is depletion in growth and an overall decrease in labor force participation rates, simultaneously, they project total employment rate growth in 2024 will reach 160.3 million. Economists predict that today’s substantial labor force shortages are a long-term economic trend they must overcome to attract and retain workers to meet demands.

The on-going waves of the Covid-19 pandemic are easy to blame for labor market interruptions.

According to Reuters, “Lack of affordable child-care, fears of contracting the coronavirus, generous unemployment benefits funded by the federal government as well as pandemic-related retirements and career changes have been blamed for the disconnect.” Further, the pandemic has accelerated changes to technology and the way work gets done. However, the workforce shortage and talent gap did not begin with the pandemic–it already existed and will continue to do so.  Before the pandemic, in February 2000, reportedly, there were 82 unemployed workers per 100 job openings; currently, there are roughly 65 unemployed workers for every 100 job openings.

Specifically, in manufacturing, the largest sector in the goods-producing field, less people are going into the profession as it’s been a struggle to attract workers as well as retain workers.

Manufacturing jobs fell from 10.7% in 2004 to just 8.6% in 2014 and is projected to fall even further, to 7.6%, by 2024. This decrease is by far the largest over the 2014–24 period. BLS’s 2018 Monthly Labor Review attributes the decline of manufacturing employment to “A skills mismatch—the gap between the skills workers have and the skills employers need….” The change in skills required to perform new tasks in manufacturing contributes to the persistent decline in the manufacturing industry since 2000. In 2015, BLS also said, “In the past, many manufacturing jobs were considered low skill and had fewer educational requirements than other types of jobs. Over the last few decades, manufacturing plants have become more automated, thus requiring skills that are more technical.” For example, engineers, computer programmers, and software developers are more sought after by manufacturers, as are people to design and run the machines. These jobs require different manufacturing skills and usually require a higher level of education.

Most importantly, higher productivity output is predicted and requires less employees, yet recruiting and retaining employees remains critical.

Manufacturing production output, according to BLS’s 2015 report is “…expected to grow 1.9% annually to reach almost $6.6 billion in 2024, up from over $5.4 billion in 2014. The negative impacts on existing employees due to staffing shortages will impact the positive outcomes predicted. CNBC notes that workers left positions for better positions in a tight job market. Workers opt to shift into positions with higher pay and better working conditions to increase their work-life balance. Thus, maximizing and supporting the existing workforce and attracting new talent is necessary in 2022.

Manufacturers must not surrender to these inconsistent forces impacting their business. Consider adjusting to the current conditions to attract and retain top talent with these tips:

  • Offer premium pay and hiring bonuses
  • Give shift-work choice options using a mobile app
  • Incentivize with more time off
  • Consider knocking down hiring barriers such as drug tests or criminal records
  • Support the amendment to the Pell Grant program to expand eligibility to training
  • Invest high-school-level technical programs as a pipeline system
  • Optimize technological tools to track operations and automate
  • Create virtual tours and escape rooms to demonstrate some of the skills needed for modern manufacturing

RBT hopes businesses can adapt and regain control. If you’d like to know more, our dedicated team is here to help develop a personalized long-term strategy for you. Additionally, if you would like to submit topic ideas for future articles our team produces, please feel free to contact us at TLideas@rbtcpas.com

Source Links:  Source Links: Reuters, Thomas Net, BLS, BLS, BLS, CNBC, Ogletree, Bloomberg

Leveraging ARPA Funds

Leveraging ARPA Funds

President Biden signed the American Rescue Plan Act (ARPA) into law on March 11, 2021, in order to support the U.S. economy that continues to feel the impacts of the ongoing Covid-19 pandemic.

The pandemic continues to impede tax revenues and increase costs across the nation along with highlighting disparities amongst the most vulnerable in the country. The ARPA stimulus package of $1.9 trillion dollars of federal funding brings communities an unprecedented opportunity to strategically plan for how to leverage the funds to rebuild a stronger, more resilient country with a long-term vision of a more equitable environment for all Americans.

The federal funding is to be used to support a sustainable economic recovery from the pandemic; allocated funds for under the ARP Act, in the State and Local Fiscal Recovery Funds (SLFRF) can address municipal infrastructure issues in four eligible use categories according to the US Department of the Treasury’s Final Rule, just released on January 6, 2022, and it goes into effect April 1, 2022.  Until that time, the Interim Final Rule remains in effect after which the Treasury can take action to enforce Final Rule to ensure compliance and accountability. The Final Rule Overview is here for reference.

The Treasury began distributing funds to governments in 2021 and were encouraged to spend it under the Interim Final Rule.

To date, according to a 2022 press release, the Treasury has distributed more than $245 billion to state, local, and tribal governments as a part of the SLFRF program, accounting for over 99% of funds eligible to be disbursed in 2021. The expeditious allocation of these federal resources must address state and local communities’ most urgent and critical needs in a maximized manner that is lasting and inclusive, and must have powerful positive impacts on public services that will spur economic growth benefits for those most impacted during the pandemic. The Center on Budget and Policy Priorities found that state governments have appropriated nearly 70% of their available funds as of November 2021. According to a January 6, 2022 statement of compliance, such significant steps include “initiation of procurement or grant making actions, detailed planning of projects or programs, appropriation of funds, and other significant planning steps.”.

The allocation of the federal funds provides the governing bodies with the flexibility to address unique budget challenges associated with the ongoing pandemic.

Each municipality must determine and commit to addressing their specific needs and  consider the most advantageous solutions with a clear understanding of their particular community’s needs. The key is to align the funding with the diverse and evolving needs of their  citizens to ensure a broad scope and depth that can allow coverage of essential government services. It is essential to stay on top of the evolving regulations and forthcoming updates on how to comply and report,proceeding with caution, carefully maintaining compliance.

In response to carefully considered feedback, the Treasury’s Statement of Compliance on the SLFRF, approved uses of the funds have been clarified to support strategic planning:

  • Replacing lost revenue to maintain public services in decline,
  • Restoring the state unemployment trust fund or paying back advances from Title XII under the Social Security Act for payment of benefits
  • Providing premium pay to retain essential workers
  • Hiring up to 7.5% more employees above pre-pandemic levels
  • Investing in water or sewer projects, including dams or reservoir rehabilitation issues with stormwater, private wells, or remediation of lead in water
  • Modernizing broadband infrastructure and cybersecurity along with offering access to affordable programs to access the internet
  • Investing in neighborhoods with abandoned or vacant properties
  • Determining presumptive eligibility for low to moderate income households
  • Offering public health insurance subsidies and paid family and sick leave

Scrupulous planning that complies with federal standards will pay off in the future.

The heart of the ARP’s vision relies on policies, and the implementation of those policies by all stakeholders who must carry them out fairly and equitably. Be sure to maximize your allocation by building net worth in this once in a lifetime opportunity to invest wisely. Moreover, feel free to contact our dedicated team of professionals at RBT who specialize in helping government clients. We look forward to providing you with personalized services and answering industry-specific questions.

Building Opportunity in 2022

Building Opportunity in 2022

The United States has historically underinvested in infrastructure facilities and systems, leaving businesses that build and supply products with unfulfilled promises.

Yet, infrastructure is essential, supporting the operation of society and the economy. Construction occupations engage in creative processes requiring building and repairing public and private physical structures. Further, the construction industry builds on opportunity. In fact, the construction industry is projected to grow 6% between 2020-2030, adding about 400,000 new jobs. Contractors are upbeat about sales and employment prospects as President Biden is investing in opportunities that will create a more robust equitable economy and higher quality of life for future generations. 2022 promises to have a positive impact on the construction industry and it is critical to keep informed.

The Biden Administration’s Build Back Better (BBBA) legislation intends to unite Americans around “things we can depend on,” by rebuilding a modern infrastructure that will have an exponential impact, empowering Americans. The BBBA is a comprehensive three-part transformative legislative framework:  part one, The American Rescue Plan, was signed into law on March 2021 as a Covid-19 relief package; however, the second and third parts of the proposed legislation, called the American Jobs Plan (AJP) and the American Families Plan (AFP), were forced into extensive negotiations, resulting in the bipartisan Infrastructure Investment and Jobs Act (IIJA), signed by Congress on November 15, 2021.

According to Grist, The IIJA was a major victory, indicating both political parties agreed to the critical need to invest $550 billion in new spending over the course of five years into America’s roads, bridges, tunnels, airports, ports, railways, transit, broadband communications and other physical infrastructure badly in need of an update as well as include a major backlog of projects and repair work deferred by the pandemic. The majority of the funding in IIJA goes toward traditional infrastructure. Here are a few graphics to demonstrate:  Funding Breakdown, Proposal vs Plan Comparison, Presidential Plan Comparison

Thomas Net explains, allotments were calculated per state and New York will get some of the largest funding.

The funds go directly through government agencies from the federal to the local level, giving them authority to distribute and oversee the money by giving grants; simultaneously designing the dozens of new programs outlined in the act and hiring more people and purchasing more technology to prepare. Vox clarifies, “The Department of Transportation has jurisdiction over the bulk of the funds and will oversee money for highways, public transit, and rail. The Environmental Protection Agency will oversee funding for drinking water and wastewater projects, including the replacement of lead pipes. The Department of Commerce will oversee funding for broadband deployment. The Department of Energy will oversee funding for the electric grid and clean energy investments. And the Department of Interior will oversee water management and natural disaster resilience.” While the cash flow is coming, investment choices are challenging. States, regions, and local governments want to know more details about how to equitably distribute and target the funds to construction projects in most need.  Biden remarked in a speech given on January 14, 2022, “We’ve got a lot of work to do…. We are going to get it done…, and I want every penny watched.”

The construction industry needs to keep a close eye on the years ahead.  Here are tips to consider:

  • Prepare to be either a government contractor or a supplier to one
  • Start with existing programs, like fixing roads or replacing water pipes because government contracts will be available sooner
  • Then, plan for system expansions like additions to the broadband internet infrastructure
  • Go for new programs last, especially competitive grant programs because they will need to be set up from scratch
  • Retain and recruit skilled workers with premium pay and benefits
  • Provide workplace incentives for current and future employees
  • Consider acquisitions, partnerships, and joint ventures to position your company
  • Tap into tax credits to lower the upfront costs
  • Purchase goods primarily manufactured in the U.S. for an additional ten percent tax credit
  • Invest in technology/technological innovations to streamline all aspects of the project
  • Keep up with The White House’s Fact Sheet Releases. HERE is the direct link to New York.

Biden stated, “There is nothing beyond our capacity when we work together.”  Construction occupations demand teamwork in the broadest sense.  RBT hopes businesses can envision the future with pride as they look at what can be built together.  If you’d like to know more, our dedicated team is here to help develop a personalized long-term strategy for you.  Additionally, if you would like to submit topic ideas for future articles our team produces, please feel free to contact us at TLideas@rbtcpas.com.

SOURCES: lohud, usgbc, Congress, White House, E.D.A., CE, Grist, CNN, Vox, Thomas Net, ABC, Vox, Zepth

The 4 Best Ways to Boost Enrollment

The 4 Best Ways to Boost Enrollment

Growing enrollment in higher education is essential for generating revenue.

School budgets are primarily made up of tuition and state support based on the number of students enrolled in a per-pupil funding system. Public and private schools are in an intensive never-ending cycle of enrollment-driven anxiety-causing budget deficits. Higher education is experiencing the greatest decline in college enrollments in a decade with falling enrollment rates ranging from 4.9% to 9.5%.

Changing approaches has been crucial as schools face many unknowns and major shifts that recalibrate enrollment management. Unfortunately, this downward trend may be long term, and the need for schools to adapt long term to challenges, requires diversification of retention and recruitment approaches.

Moving forward, here are some proven strategies your team can borrow from other higher educational institutions to address enrollment:

  1. Examine your structural framework: Engage in a strategic assessment of your enrollment management processes. Align your internal structural strategy with your enrollment goals along with any outside factors. At SUNY New Paltz, for example, this examination resulted in key streamlining shifts, giving more attention to online program delivery, and to broadening the existing scope of current employee’s roles when budgets don’t sustain hiring for new positions. An examination of how your school recruits and serves the student population can lead to more efficiency. Many structures and processes have served well in the past but refreshing the structural process will help you thrive in the future.
  2. Investigate your Institutional Influence: Think about how your school is an agent of social power, with influence, that can optimize your capacity to meet more diverse students’ demands by changing outdated admissions and enrollment policies that can expand your reach.  Organizations can influence the kind of policies they have, and they can achieve noble purposes such as publicly showing care for people. One specific public policy change occurred during the pandemic. In 2020, the admission process did not require standardized test scores like the SAT or ACTs. This policy was loosened up to be more inclusive, shifting the value of an applicant beyond a test score and it removes barriers for underrepresented populations and makes room for more equitable enrollments. Admissions officers can choose to allow tests to be optional because arguably tests do not tell the full story of a candidate. Diversity policies provide a competitive advantage when it comes to increasing enrollment and currently works in unison with current social movements.
  3. Invest in Relationship Building: Another useful tactic to increase enrollment is building trusting relationships that tap into what students specifically want or need in order to motivate them to choose your school. Your school can generate feelings of being known, cared for, and supported when they nurture relationships with prospective students by showing genuine interest and maintaining connections. Form personal connections that matter by making phone calls, sending birthday cards, inviting them to join special events, sending a handwritten note, allowing prospective students to try out courses, or making a customized video of their tour. Relationship building can help match students to the best fitting schools by narrowing down a larger pool of prospective enrollees into more seriously interested applicants that finally enroll. Interested families will become more and more excited about your school during the recruitment process as you make efforts to understand what is driving their decisions. It is financially imperative to emphasize common goals as students and organizations rely upon one another. It helps students decide on the fit and commit to your school.
  4. Tell a Good Story: Good stories convey cultural information about our school’s morals, values, and beliefs. Make your school story memorable, convincing, and distinguishing. The story should carry history and reinforce the school’s identity. Crafting and continually renewing a strong school story using technological tools is an indispensable plan of action to reinforce enrollment management practices. With dynamic communication methods, schools can publicize marketing messages that highlight institutional stories to attract students to enroll. Help them to believe your school is where they belong, providing a narrative of hope for their futures.

Here at RBT, our team is experienced with handling the unique financial pressures your school is up against. We hope these strategies will help your school redefine needs and evolve through the enrollment struggle. If you’d like to know more, our dedicated education team is here to help develop a personalized long-term strategy for your school. Please feel free to contact us today to connect. Additionally, if you would like to submit topic ideas for future articles our team produces, please feel free to contact us at TLideas@rbtcpas.com.

Patient Satisfaction & Your Financial Future

Patient Satisfaction & Your Financial Future

Healthcare and the delivery of healthcare services is often a matter of life and death and there has been an increased intensity of those in need of medical help and, as a result, a significant increase in the demanding workload on the healthcare workforce.

Patients deserve quality care and healthcare employees deserve on-the-job satisfaction to provide quality care.  Thoughtful considerations must go into how stressful and challenging the work of a healthcare provider is and how it impacts patients with either a negative or positive outcome as it links to public investment in hospital care. To succeed in 2022, healthcare organizations must address this concerning connection to sustain high-quality healthcare readiness and the funding that makes access possible.

According to News: Medical Life Sciences, 2021 studies show that there is a critical link between hospitals’ healthcare compensation, healthcare workers’ well-being, and patient satisfaction surveys. It is impossible to separate this idea from The Center for Medicare and Medicaid Service (CMS), whose goal is to empower consumers and hold hospitals accountable for improving care by implementing the Medicare payment system that ties patient care experiences with hospital reimbursement rates.  Since 2008, CMS endorses the publishing of the Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS) scoring system that provides qualitative data to rate patient experiences using Value Based Performance Standards (VBP). Specifically, all the dimensions surveyed are consumer-driven factors that contribute to well-being and satisfaction, such as the conditions of the hospital environment (noise level, cleanliness), the social climate (interactions, responsiveness), and information access (discharge, care transition). When any of these factors are receiving unsatisfactory or poor scores, it can negatively affect healthcare employees’ job satisfaction due to significant stressors, thereby affecting customer satisfaction–and hospital funding. Let’s face it, there are billions of dollars from Medicare at stake.

Certainly, the stressors of the still raging pandemic in the healthcare field highlight the need to address and prevent undue burdens on our healthcare professionals as we move into 2022. The real burdens of occupational pressures on the healthcare providers on the front lines translate into their ability to provide quality care experiences.  Patient experiences of care across the nation certainly reflect the caregiver’s burden in the HCAHPS VBP scores so healthcare leaders can utilize this data in practical and useful ways. Healthcare organizations have an obligation to fundamentally do good by their healthcare professionals and consequently increase positive outcomes for patients.

What steps can you take to boost patient satisfaction and secure healthcare funding?

  • Ensure adequate funding and allocate funding resourcefully
  • Elicit feedback from healthcare professionals to allow for emerging new ideas
  • Provide empowerment opportunities to those who feel a lack of control over their work
  • Be transparent; share knowledge
  • Establish systems or support from senior staff
  • Let employees know they are valued
  • Create equitable engaging training to keep up to date
  • Foster healing and recovery for healthcare providers
  • Approach care from an honest, open, empathetic stance
  • Encourage healthcare professionals to invest in patients

The satisfaction of the patients is largely dependent upon the healthcare workforce they encounter in adverse situations.

The perceptions of patients are key to acknowledge as it influences healthcare funding as we head into 2022. KFF offers an overview and funding facts on Medicare spending, showing that Medicare was 15% of the total federal spending in 2018 which totaled $605 billion; further, Medicare spending is projected to rise to 18.3% percent from 2019 to 2029, increasing spending to $1.3 trillion in 2029. By enhancing the well-being of healthcare workers, hospitals will be better able to retain and recruit healthcare workers, provide quality care, increase customer satisfaction, and plan to respond to future public health threats.

Here at RBT CPAs, we understand the diverse and complicated world of healthcare. Our team of healthcare experts brings industry expertise in reimbursement, regulatory compliance and audit, accounting, and tax services. We will continue to keep you notified of timely news that matters to you and your team, but if you’d like to connect and receive individualized services, please contact us today. If you would like to submit feedback or topic ideas for future articles our team produces, please feel free to contact us at TLideas@rbtcpas.com.

Sources: News-Medical, News-Medical, CMS, CMS, Relias, AMA, News-Medical, KFF

New Year’s Resolution: Revising Contracts

New Year’s Resolution: Revising Contracts

What’s your New Year’s resolution?

Want to get in shape, or maybe get more organized? How about taking care of some annual business tasks that you may be putting off, like cleaning up your contracts? It’s the perfect time of year to knock this often neglected item off your to-do list.

Many manufacturers fail to annually review and revise contracts – but the reality is you really can’t afford to skip this step.

The ongoing supply chain dilemma is largely consumer-driven, and manufacturers worldwide have been wholly unprepared to handle the pandemic’s perfect storm of increased demand coupled with resource reduction. While some analysts anticipate a return to normality in late 2022, others say the economic turbulence could last for another 24-36 months. Can contract reviews be tedious? Yes. Are carefully crafted contracts also central to your financial success in the New Year? Absolutely. Below, we’ll outline some critical steps your manufacturing team should consider taking as we ring in 2022, to ensure your customers are satisfied, and your contracts are working for you.

Rising materials prices make it crucial for manufacturers to limit risk in their client agreements.

Bottlenecks, delays, equipment shortages, and shutdowns have created disruptions across the board leaving some manufacturers in precarious positions. At this point, we can all agree that pandemic clauses are necessary, not only due to COVID-19 but also to protect from future pandemics and similar situations. To avoid being tied up in unrealistic contracts and producing for a loss because of mounting material costs, carving out changing cost clauses will be essential in 2022 and beyond. Cost structure changes are necessary during these tumultuous times. Manufacturers should typically hold prices for a specified number of days but should have a clause in the agreement stating that if the contract is not released for production in a set number of days, then a price adjustment can be made by the manufacturer.

In response to increased price volatility in the current market, it’s wise to insert extremely open-ended language in the contract itself and/or in the manufacturer’s clarifications exhibit attached to the contract, which entitles the manufacturer to a change order for any increase in materials pricing throughout the manufacturing process. As these provisions shift 100% of the risk to the client, manufacturers should be prepared for clients to try to tailor the contract to share the risk. Some clients may include a contingency line item to address certain unforeseen costs that arise during manufacturing, including materials price increases.

Another approach some may take is to set a threshold percentage above which the client covers price increases and below which the manufacturer bears the risk. Here, the client and manufacturer would agree that the client covers the amount of increased cost if the cost incurred is 10% above the line-item amount shown in the schedule of values. If, for example, the cost of lumber increases by only 9%, then the manufacturer is responsible for all of the increased cost. However, if the cost of lumber increases by 15%, then the manufacturer is responsible for 10% of the increased cost, and the client must cover the remaining 5% of the increased cost. This approach sets a clear standard for addressing price increases and may provide enough flexibility to allow the price volatility to subside.

The time is now to ask yourself, is your team operating as cost-effectively as you can be?

The start of a New Year signals fresh opportunities to recharge, reinvigorate, and reinvent your practices. Dedicate some valuable time to examine your process and determine what’s working, and what’s not. Of course, there’s no one size fits all approach for your operation, and each client relationship is unique. Regardless of how you approach current and future contracts, the most important thing to remember is to address the uncertainty of material price escalation clearly. The information contained in this article is provided for informational purposes only and should not be construed as legal advice on any subject matter. We highly recommend you contact your attorney to thoroughly review all contract language. If you have any questions for our team of financial and tax professionals or would like help evaluating what effect increasing materials prices may have upon your latest project, please do not hesitate to contact our dedicated team.

Source: NYSHEX

How the Wage Theft Bill is changing the Construction Industry in 2022

How the Wage Theft Bill is changing the Construction Industry in 2022

The New Year brings with it new opportunities for growth, new projects to begin, and also, new laws to follow.

In 2021, New York State passed legislation that went into effect earlier this month, which shifts liability to general contractors for wage theft cases on private construction projects.

Up until now, construction contractors weren’t liable for their subcontractors’ employees’ wages unless there was an employment relationship between the contractor and the employee of the subcontractor. But this law which went into effect Jan. 4th, 2022, makes contractors on construction projects jointly liable for wages owed to employees of their subcontractors. It also allows contractors to demand payroll information from subcontractors and withhold payment if the information is not provided. The law exempts home-improvement contracts except for the construction of more than ten one- or two-family owner/occupied dwellings.

Advocates say the law will incentivize general contractors to be more selective in the hiring of subcontractors, with the hope that greater oversight will promote safer working conditions on construction sites and force illegitimate subcontractors out of the industry. Opponents vocalize various concerns about the new law, including the belief that it overcomplicates the process for contractors.

Assembly member Latoya Joyner said, “This legislation protects the interests of hardworking construction workers over unscrupulous subcontractors. Wage theft is a crime of opportunity that disproportionately affects people who are already living paycheck to paycheck.”

The New York State Building & Construction Trades Council, representing more than 200,000 unionized employees, called the bill’s passage a “monumental victory for working people.”

Meanwhile, the Associated General Contractors of New York State, which represents construction employers, oppose the legislation.

While the group supports wage theft prevention, they view the legislation unfavorably because it extends liability for up to three years after a project has been completed. The new law “creates an unmanageable level of risk for general contractors,” according to Mike Elmendorf, CEO of AGC NYS. He says it “slows payments to subcontractors, and raises the cost of construction.”

Whatever your stance is, in order to reduce exposure to wage claims under the new law, New York contractors need to act now. It’s a best practice to consider revising standard contracts and developing procedures for collecting the information that contractors are entitled to receive from subcontractors under the new law. Specifically, upon a contractor’s request, a subcontractor must provide:

  • Certified payroll records containing “sufficient information to apprise the contractor…of such subcontractor’s payment status in paying wages and making any applicable fringe or other benefit payments or contributions to a third party on its employee’s behalf”;
  • The names of all of the subcontractor’s workers (including independent contractors) on a project;
  • The name of the contractor’s subcontractor with whom such subcontractor is under contract;
  • The subcontractor’s contract start date and duration of work;
  • The identity of unions with which the subcontractor is a signatory; and
  • Contact information for the subcontractor’s designated contact.

If a subcontractor at any tier fails to provide the above-mentioned information, the contractor may withhold payment otherwise due to that subcontractor. Make sure you are operating at peak financial efficiency by leaving your financial statements, internal auditing, and overall business analyses to a professional and reputable team. At our company, we prioritize developing a positive relationship that helps you prepare for the future and all of the uncertainty that comes with it. Contact us to discuss your specific team needs today, we are dedicated to helping our construction clients achieve success.

Sources: Governor.NY.GOV, NYSenate.Gov

$100 Million in Funding for NY Shelter

$100 Million in Funding for NY Shelter

All across the state, the ongoing Covid-19 pandemic has exposed the true extent of housing insecurity and made it even more challenging for struggling New Yorkers to pay rent.

The Hudson Valley continues to face intense housing pressures and rapid price escalations. Change has already come to many local communities – much of it with the potential to cause widespread displacement. How local government manages that change and protects our most vulnerable community members should remain top of mind as we enter 2022.

On a local level, we have continued to see the number of those experiencing homelessness rise over recent years, and the need for supportive services is greater than ever throughout the region.

Consider the most recent (pre-pandemic) data from non-profit Hudson River Housing. Between 2015 and 2019, the rate of homelessness grew by 42% in Dutchess County. The rate of homelessness is much higher in Dutchess County than in other parts of New York (excluding NYC) and slightly higher than the national rate of homelessness. What can be done? Funding is on the way, and you need to know how to access it. Governor Kathy Hochul recently announced new funding for counties to better assist at-risk populations as we enter 2022 and beyond.

$100 million in new funding is headed to counties to help homeless individuals and families leave the shelter system for a permanent home by providing rental assistance. The funds may also help very low-income New Yorkers pay their rent and increase their housing security. Administered by the state Office of Temporary and Disability Assistance (OTDA), the New York State Rental Supplement Program will provide funding to localities in all 57 counties and New York City to offer rental assistance to individuals and families experiencing homelessness or facing the imminent loss of housing. The Rental Supplement Program is now the primary state-funded rental assistance program available for New Yorkers struggling to pay rent. Adopted as part of the FY2022 budget, the program is providing nearly $68 million for New York City and more than $32 million to all other counties throughout the state. Counties will have the flexibility to develop a program that meets the needs of their underserved populations.

Who is eligible to receive financial assistance?

Households seeking the rent supplement may earn no more than 50% of the Area Median Income (AMI) to be eligible. Initial priority will be given to those earning 30% or less. Half of the supplements are earmarked for families or individuals that are in shelters or experiencing homelessness, and the program is available to all eligible households, regardless of their immigration status.

Rental supplement amounts will be funded at 85% of the local fair-market rent values, with localities having the option to pay up to 100% by using local funds. A household receiving the supplement will contribute no more than 30% of their total earned income toward their monthly rent. The supplement can only be used for upcoming rental payments, with local social service districts determining coverage for arrears, which can only be paid with local funds.

Each county or locality must opt into the program and submit a distribution plan to OTDA. They may choose to directly administer their allocation or delegate it to another public agency, contractor, or non-profit organization.

While the precariousness of housing has increased for many, the greater attention on housing issues has raised awareness about the housing crisis that we know has existed for decades.

New York State is now a national leader in rent relief funds distributed, with the full initial allotment of more than $2.1 billion fully obligated. At RBT, we understand that local government officials are facing enormous pressures. You can find added value in working with professionals who understand your governmental sector and the unique factors which impact your entity. Since 1969, our governmental clients have depended on RBT CPAs, LLP professionals for assistance with all types of financial issues, and we’re here to help you, too. Give us a call if you have questions or would like to set up a consultative appointment.

Sources: Governor.Ny.Gov, Hudson River Housing

RBT CPA’s Ross Trapani, CPA, Admitted to the Partnership

Ross Trapani
FOR IMMEDIATE RELEASE

Ross Trapani

RBT CPAs LLP, takes great pleasure in announcing that Ross Trapani, CPA, of Lagrangeville, New York, has been admitted to the partnership. Ross will officially become a partner on January 1, 2022. He has been with the Firm since October of 2017. Ross is currently working out of the Dutchess office in the Client Service Department. Ross is the Treasurer for two nonprofits, Rebuilding Together Dutchess County and ARC of Dutchess Foundation. He is also on the Professional Development Programming Committee for the Dutchess Chamber Foundation and co-coaches his daughter’s CYO basketball. Ross grew up in Ulster County and now resides in Lagrangeville in Dutchess County with his wife and two young daughters.

Managing Partner, Michael Turturro adds, “Ross has set a wonderful example of hard work and community involvement within this firm.  He has been a great teacher to other employees and a pleasure to work with. We are so very pleased to welcome Ross to our Partner group. Congratulations! Well deserved!”

RBT CPA’s Keith Dommreis, CPA, Admitted to the Partnership

Keith Dommreis
FOR IMMEDIATE RELEASE

Keith Dommreis

RBT CPAs LLP, takes great pleasure in announcing that Keith Dommreis CPA, of Poughkeepsie, New York, has been admitted to the partnership. Keith will officially become a partner on January 1, 2022. He has been with the Firm since January of 2020. Keith is currently working out of the Newburgh office in the Tax Department. He has spent the majority of his life here in the Hudson Valley and raised his daughter and son here. He currently resides in Poughkeepsie but travels often to visit his grandchildren.

Managing Partner, Michael Turturro adds, “We are so very pleased to welcome Keith to our Partner group. Keith came to us a few years ago with an abundance of knowledge and experience. Since, he has been a driving force in the firm and our tax department. His contributions are invaluable. Many Congratulations!”