New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle A - Governor's Office › Chapter I - Executive Orders › Part 8 - Executive Orders (Andrew M. Cuomo) › Section 8.38 - Executive order no. 38: limits on state-funded administrative costs and executive compensation

Current through Register Vol. 46, No. 28, July 10, 2024
WHEREAS, State Government in New York directly or
					 indirectly funds, or authorizes reimbursements with other taxpayer dollars to,
					 a large number of tax exempt organizations and for-profit entities that provide
					 critical services to New Yorkers in need; and
WHEREAS, State Government in New York has an ongoing
					 obligation to ensure that taxpayers' dollars are used properly, efficiently and
					 effectively to improve the lives of New Yorkers and our communities; and
WHEREAS, 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; and
WHEREAS, such abuses involving public funds harm both the
					 people of New York who are paying for such services, and those persons who must
					 depend upon such services to be available and well-funded; and
WHEREAS, to curb such abuses in executive compensation and
					 administrative costs and ensure that taxpayer dollars are used first and
					 foremost to help New Yorkers in need;
NOW, THEREFORE, I, Andrew M. Cuomo, Governor of the State
					 of New York, by virtue of the authority vested in me by the Constitution and
					 laws of the State of New York, do hereby order as follows:
1. Within ninety days of this Executive
				  Order, the commissioner of each Executive State agency that provides State
				  financial assistance or State-authorized payments to providers of services,
				  including but not limited to the Office for People with Developmental
				  Disabilities, Office of Mental Health, Office of Alcoholism and Substance Abuse
				  Services, Office of Children and Family Services, Office of Temporary and
				  Disability Assistance, Department of Health, Office for the Aging, Division of
				  Criminal Justice Services, and Office of Victim Services shall promulgate
				  regulations, and take any other actions within the agency's authority including
				  amending agreements with such providers to address the extent and nature of a
				  provider's administrative costs and executive compensation that shall be
				  eligible to be reimbursed with State financial assistance or State-authorized
				  payments for operating expenses.
2.
				  Each such agency's regulations shall include but not be limited to requirements
				  that providers of services that receive reimbursements directly or indirectly
				  from such agency must comply with the following restrictions:
a. No less than seventy-five percent of the
				  State financial assistance or State-authorized payments to a provider for
				  operating expenses shall be directed to provide direct care or services rather
				  than to support administrative costs, as these terms are defined by the
				  applicable State agency in implementing these requirements. This percentage
				  shall increase by five percent each year until it shall, no later than April 1,
				  2015, remain at no less than eighty-five percent thereafter.
b. To the extent practicable, reimbursement
				  with State financial assistance or State-authorized payments shall not be
				  provided for compensation paid or given to any executive by such provider in an
				  amount greater than $199,000 per annum, provided, however, that the
				  commissioner of each agency shall have discretion to adjust this figure
				  annually based on appropriate factors and subject to the approval of the
				  Director of the Budget, but in no event shall such figure exceed Level I of the
				  federal government's Rates of Basic Pay for the Executive Schedule promulgated
				  by the United States Office of Personnel Management.