2011-08-05 / Community

New York State Announces Non-Profit Task Force

Governor Andrew M. Cuomo announced that he has created a new task force to investigate the executive and administrator compensation levels at not-for-profits that receive taxpayer support from the state. The Governor’s action follows reports of startlingly excessive salaries and compensation packages for executives at not-forprofits that depended on state Medicaid funding through the Office of People With Developmental Disabilities (OPWDD) and other State agencies.

The State’s has the authority to exclude providers from participation in the Medicaid program if fraudulent practices are discovered. There are currently no state rules governing executive and administrative compensation for not-forprofits that receive state support. According to the Department of the Budget’s January 2010 preliminary analysis of not-for-profit employees contracting with the mental hygiene agencies, there were approximately 1,926 employees with annual salaries greater than or equal to $100,000. The total value of their salaries was $324.6 million, with an average salary of $168,555.

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