17 May 2012

I Approve of this Act of Populist Pandering

Mario Andrew Cuomo has proposed putting a cap on executive pay at non-profits that get state contracts:
New York proposed regulations Wednesday to limit spending by state contractors, including a $199,000 executive pay cap that can be exceeded only with a special waiver or using money other than state tax dollars.

The proposals by 13 agencies cover contractors -- many of them nonprofits providing social services -- that receive more than $500,000 in state support annually representing at least 30 percent of their total funding. A contractor could pay executives more than $199,000 from other funds as long as salaries are below the top 25 percent in the field.

"These regulations will allow the state government to identify and stop the few providers that pocket taxpayer dollars rather than use them to serve the public," Gov. Andrew Cuomo said in a prepared statement. In January, he issued an executive order to limit reimbursable costs by service providers who account for roughly one-third of the state's $132.5 billion budget, noting one downstate provider of early intervention special education drew a salary of $2.2 million and a $1 million shareholder distribution.
Now, start applying it to for profit's as well.


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