Gov. Andrew Cuomo has signed an executive order to limit spending for administrative costs and executive pay at state-funded service providers including a $199,000 salary cap.
The order signed Wednesday notes the government funds many tax-exempt organizations and for-profits that provide critical services to New Yorkers in need, but it has an obligation to use taxpayer money effectively. It says some state money has been used to pay "for excessive administrative costs and outsized compensation for their senior executives."
State agencies are ordered within 90 days to issue regulations and amend agreements to limit reimbursable costs of service providers, with at least 75 percent going to direct care or services instead of administration and limiting individual executive compensation to $199,000 "to the extent practicable."