Sen. McNerney pushes office to help nonprofits navigate state contracts

Sen. McNerney introduced SB 1240 to establish an Office of Nonprofit Empowerment aimed at simplifying how nonprofits engage with California state government and at reducing delayed payments and duplicative reporting.

“Nonprofits are the third largest employer by wages among key industries in California,” Sen. McNerney said, urging the committee to give the sector “a seat at the table.” He said the bill would not dispense grant dollars but would provide navigation and coordination services; administrative costs were estimated at about $1.7 million the first year and $1.6 million subsequently.

Juliet Terry, representing Child Care Resource Center, told the panel CCRC administers “over 800,000,000 in public contracts and philanthropic grants annually” and serves more than 100,000 children, families and educators each month. She said chronic late payments and conflicting reporting requirements “drain money, time, and energy away from the families that we serve.”

Tamar Foster, deputy executive director of the Little Hoover Commission, said the commission’s January report found nonprofits frequently subsidize state service delivery and that a centralized liaison would provide needed interagency coordination and guidance on grant administration.

More than a dozen sector groups and local organizations — including child-care, behavioral health, arts, animal welfare and community action advocates — registered or spoke in support, and several committee members voiced backing, saying the measure could help underserved and rural regions build capacity.

The committee did not take a final floor vote on SB 1240 during the hearing; Sen. McNerney closed by asking for an “I vote” when the committee has a quorum and the matter is set to move to Appropriations pending formal motion and roll call.

The next procedural step is an official committee motion and roll call once absent members return; committee staff left the roll open on related consent items.