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Secretary Perales to Serve on Executive Compensation Task Force

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On August 3, 2011, Governor Andrew M. Cuomo announced the creation of a new task force to investigate the executive and administrator compensation levels at not-for-profits that receive taxpayer support from the state.

Task force members will include Secretary of State Cesar A. Perales, New York State Inspector General Ellen Biben, Medicaid Inspector General Jim Cox, and the Superintendent of the Department of Financial Services Benjamin Lawsky. Commissioners from the Department of Health, the Office of Mental Health, and Office of People with Developmental Disabilities will also serve on the task force.

Governor Cuomo’s announcement follows reports of excessive salaries and compensation packages for executives at not-for-profits that depend on state Medicaid funding.  Currently there are no state rules governing compensation at not-for-profits that receive this support.

"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," Governor Cuomo said.

“I thank Governor Cuomo for the opportunity to serve on this task force,” said Secretary of State Perales. “I look forward to working with the other members to recommend new rules that will ensure state funds are not abused by senior executives, but rather are spent as intended to help those who are most in need.”

According to the Division of the Budget's January 2010 preliminary analysis of not-for-profit employees contracting with the mental hygiene agencies, there were an estimated 1,926 employees with annual salaries greater than or equal to $100,000.  

You can read Governor Cuomo’s press release announcing the Taxpayer-Supported Not-For-Profits Executive Compensation taskforce for more information.