On January 18, 2023, MACo Legislative Director Kevin Kinnally submitted testimony to the Senate Budget and Taxation Committee in support of SB0112 – State Finance and Procurement – Grants – Prompt Payment Requirement.
By standardizing prompt payment practices, this bill would create a level playing field for state grant recipients, including local governments and nonprofits that provide a wide swath of viral community services for Maryland residents.
From the MACo Testimony:
When the State fails to pay invoices in a timely manner, nonprofits are forced to involuntarily bankroll the government services they provide. This, in turn, increases the cost of providing services, shortchanges the residents who are most in need, and effectively results in nonprofits providing the State zero-interest loans to float essential services for shared constituents. SB0112 would make necessary and timely changes to help local governments and nonprofits avoid service disruptions and financial hardships, enabling counties to better serve and react to community needs.
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