Thursday, January 19, 2012
 

 

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Governor signs executive order to reform excessive compensation at state-funded service providers

ALBANY - Governor Andrew Cuomo today signed an Executive Order to limit spending for administrative costs and executive compensation at state-funded service providers.

"We must make sure that taxpayers' dollars are always used efficiently and effectively to improve the lives of New Yorkers," Governor Cuomo said. "This Executive Order will prevent public funds from being diverted to excessive compensation and unnecessary administrative costs, and will ensure that taxpayer dollars are being used to help New Yorkers in need."

The order notes that in certain instances providers of services that receive State funds or State-authorized payments have used such funds to pay for excessive administrative costs and outsized compensation for their senior executives, rather than devoting a greater proportion of such funds to providing direct care or services to their clients.