Governor Appoints Panel to Review Executive Compensation at Taxpayer-Supported Nonprofits

Governor Cuomo announced yesterday that he has appointed a Task Force to investigate executive compensation at nonprofit organizations that receive taxpayer subsidies from the state.

The probe comes one day after a lengthy New York Times article reporting on high compensation levels for executives and administrators at some Medicaid-financed nonprofits that provide services to developmentally disabled people in New York.

In his statement, the Governor said:

Not-for-profits that provide services to the poor and the needy have a special obligation to the taxpayers that support them. Executives at these not-for-profits should be using the taxpayer dollars they receive to help New Yorkers, not to line their own pockets. This task force will do a top-to-bottom review, not only to audit current compensation levels, but also to make recommendations for future rules to ensure taxpayer dollars are used to serve and support the people of this state, not pay for excessive salaries and compensation.

The Governor originally announced that the Task Force will be led by State Inspector General Ellen Biben, and includes Secretary of State Cesar Perales, state Medicaid Inspector General Jim Cox, and the Superintendent of the Department of Financial Services Benjamin Lawsky. The Commissioners of Health, Mental Health, and the Office for People With Development Disabilities will also serve on the task force.

A second announcement by the Governor today said that Lawsky will Chair the Task Force, and that the group will also include Senator Carl Marcellino (Chair of the Senate Investigations Committee) and Assemblyman Steve Englebright (Chair of the Assembly Government Operations Committee), as well as the Commissioner of Office of Alcohol and Substance Abuse Services.