Section 165-1.2(b)(1) Reimbursable and nonreimbursable expenditures. Expenditures connected with the establishment, operation or maintenance of a youth program are eligible for State aid reimbursement, provided they are listed in the approved project or amendment thereto. Such expenditures may include: administrative expenses; compensation for personal services; rental of land or buildings; purchase of equipment, supplies and materials; transportation; utilities; liability insurance; minor repairs; replacements or improvements; reasonable expenses incurred attending youth services-related conferences; and organizational memberships relating to youth services. A youth program may charge a fee to participate in a recreational services program. However, the youth program shall accommodate any youth who is unable to pay such fee, by offering scholarships, a tiered fee schedule or waiving the fee.

(2) State aid may not be granted for the following:

(i) purchase of land and buildings;

(ii) taxes from which municipalities are exempt;

(iii) capital improvements, which are defined to mean the erection of substantial structures which are capital in nature, or the valuable additions to or valuable modifications of real estate. This includes expenditures for hard surfacing, cement installations, substantial repairs to a building, basic heating, lighting or sanitary equipment and installation, permanent outdoor lighting systems, fencing (except for partial fencing justified as a safety device), swimming and wading pools or tennis courts;

(iv) prizes, other than inexpensive awards such as trophies, medals or ribbons;

(v) items of clothing, other than inexpensive T-shirts, caps and individual protective devices;

(vi) fire insurance or liability insurance on capital structures;

(vii) salaries of personnel discharging law enforcement responsibilities, except juvenile aid officers as approved by the [Division for Youth] Office of Children and Family Services, or salaries of employees who lack the qualifications for the work, or who after a trial period are considered by the [division] Office unable to do satisfactory work;

(viii) interest and penalty costs incurred by a municipality in program expenses;

(ix) activities for which a fee is charged, other than for a recreational services program in accordance with paragraph (1) of this subdivision;

(x) personal membership fees; and

(xi) league franchise fees.

1. Statutory authority:

Article 19-A of the Executive Law (§§ 411 through 426) governs the provision of State aid for the prevention of delinquency and youth crime, and the advancement of the moral, physical, mental and social well-being of the youth of New York State. The Youth Development and Delinquency Prevention (YDDP) program provides state aid to counties and municipalities. A "youth program" is defined as a youth bureau, recreation project or youth service project. (See Executive Law § 412 (5))

Executive Law § 419 authorizes the Office of Children and Family Services (OCFS) to adopt, amend or rescind all rules and regulations necessary to carry out the provisions of Article 19-A.

2. Legislative objectives:

OCFS regulations at 9 NYCRR Subpart 165-1 govern the administration of state aid for YDDP programs and the establishment and operation of county/municipal youth bureaus.

The proposed regulation amends 9 NYCRR § 165-1.2(b), which sets forth the types of expenditures for youth programs that are eligible for state reimbursement and the types of expenditures that are ineligible. These eligibility standards are meant to direct state funds towards reimbursement of expenditures that more directly relate to the provision of youth programs. The amendment would allow state reimbursement for recreational services projects that charge fees. The exception is a result of OCFS' Executive Order #17 local government mandate relief internal agency review process.

3. Needs and benefits:

The proposed amendment to § 165-1.2(b) would no longer make a youth program ineligible for State funding, if it charges a fee to participate in a recreation project. If the youth program chooses to charge a fee, it must accommodate any youth who is unable to pay by offering scholarships, a tiered fee schedule or waiving the fee. The current regulation does not permit state reimbursement under the YDDP program for activities for which a fee is charged.

YDDP funding from the state covers only a portion of the cost of recreation projects for children and youth operated by or under the direction of municipalities (counties, towns, cities and villages). The current fiscal climate has caused YDDP funding to remain stagnant or decrease, and municipalities now pick up a greater share of the cost of these programs. The ability to charge a fee for participation in a recreation project without losing state reimbursement may help municipalities to serve more youth without an increase in funding or prevent cuts in programs. The amendment provides a safeguard requiring programs that charge a fee to offer scholarships, a tiered fee schedule or waivers of the fee so that no youth is foreclosed from participating in the program.

4. Costs:

The proposed amendment to allow youth programs to be eligible to receive State funding even if they charge fees for recreation projects may help municipalities to serve more youth without an increase in funding or prevent cuts in programs. There is no cost associated with this proposal to the Office or to the Youth Bureaus. The individual municipalities who decide to implement a fee for their youth recreational programs or activities will incur nominal costs in establishing the fee amount, collecting and accounting for such fees, and for documenting participation, including in the scholarship, tiered fee schedule or waiver policy instituted. OCFS anticipates that programs that choose to implement a fee will likely absorb any costs of administration into their existing programs.

5. Local government mandates:

The proposed amendment does not impose any local mandates. In fact, this proposal is the result of an internal Executive Order # 17 review of OCFS regulations. This amendment to OCFS regulation enables youth programs to be or continue to be eligible to receive State funding, even if they charge a fee for participation in a recreational program or activity.

6. Paperwork:

The proposed amendment requires no additional paperwork as the program change is voluntary. However, youth programs that choose to charge a fee must have an established process to set an appropriate fee amount, collect the fee, account for the funds collected, and offer scholarships, a tiered fee schedule or waivers of the fee, as necessary; and document this process to the Youth Bureau in its annual report. OCFS is in the process of streamlining its monitoring and reporting through the development of an on-line system, which will eventually increase the efficiency of the current reporting requirements.

7. Duplication:

None. There is no other relevant rule or legal requirement on this topic.

8. Alternatives:

OCFS consulted with representatives from the Association of New York State Youth Bureaus (ANYSYB) in proposing this amendment. ANYSYB's main concern was to have as much flexibility as possible to address the widely varying needs of the individual recreational programs affected by the rule. OCFS, in collaboration with the ANYSYB, will be locally responsive by providing ample guidance and technical assistance to youth programs that choose to charge fees.

OCFS considered allowing youth programs other than recreation projects to charge fees for YDDP programs and for Special Delinquency Prevention Programs (SDPP). Recreation projects are not targeted to at risk youth but are available to the general youth population. Therefore it was determined that charging a fee would have the least negative impact on recreation project participants. In addition, some SDPP programs receive 100% state funding, therefore it would be inappropriate for the SDPP program to also charge a fee.

OCFS considered specifying that the size of the fee must be "nominal" or "small". However, these terms are subjective and OCFS chose to allow the youth program to determine what fee would be fair and appropriate under the individual circumstances of the program. Ample guidance and technical assistance will be provided to youth programs through OCFS and the ANYSYB, and available on the OCFS website.

9. Federal standards:

There is no relevant federal standard on this topic.

10. Compliance schedule:

Since Youth programs are aware of this rulemaking, those that choose to charge a fee will be able to implement a process immediately upon the adoption of the amended regulation.

The proposed regulation amends 9 NYCRR § 165-1.2(b), which sets forth the types of expenditures for Youth Development and Delinquency Prevention (YDDP) programs that are eligible for state reimbursement and the types of expenditures that are ineligible. The amendment no longer makes every youth program that charges a fee ineligible for State funds. This exception for recreational services projects to charge a fee provides that the program must accommodate any youth who is unable to pay the fee by offering a scholarship, waiving or reducing the fee. The current regulation does not permit state reimbursement for activities for which a fee is charged. The rule does not impose any adverse economic impact on local governments because the program is not mandated by the State. If the county or municipality chooses to apply for State funds, reporting recordkeeping and other compliance requirements are not hindered. The ability of these youth development programs to charge a fee may help alleviate some of the municipalities' fiscal constraints in offering recreational programs.

The proposed amendment to 9 NYCRR § 165-1.2(b) no longer makes every youth program that charges a fee to participate in a recreational services project ineligible to receive Youth Development and Delinquency Prevention (YDDP) funds. The current regulation does not permit state reimbursement for activities for which a fee is charged.

All counties receive YDDP funding, including rural counties.

The rule does not impose any adverse economic effect on public or private entities in rural areas because the program is not mandated by the State. If the county or municipality chooses to apply for reimbursement, reporting, recordkeeping and other compliance requirements are not hindered. The ability for the youth programs to charge a fee may help alleviate some of the municipalities' fiscal constraints in offering recreational services.

The proposed amendment may help counties, including rural counties, to offset reductions in state funding. The proposed amendment does not specify any fee amount. Youth who cannot pay the fee must be provided access to the program through sliding fee schedules, scholarships or waivers.

A full job impact statement has not been prepared for the proposed amendment to 9 NYCRR § 165-1.2(b) to no longer make a youth program that charges a fee to participate in a recreation project ineligible for State funds. If such youth program chooses to charge a fee, it must accommodate any youth who is unable to pay the fee by offering scholarships, a tiered fee schedule or waiving the fee. The ability to charge a fee for participation in a recreation project without losing state reimbursement may help municipalities to offset reductions in state funding. The proposed amendment will not have a measurable impact on any jobs.