Albany, NY – The Cuomo administration has proposed regulations to limit spending by state contractors, including a $199,000 executive salary cap that can only be exceeded using money not from the state.
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The proposals by 13 agencies cover contractors — many providing social services — that receive more than $500,000 in state support annually representing at least 30 percent of their total.
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.
The proposals would require at least 75 percent of state-funded operating expenses to go to services rather than administrative costs.
That would rise to 85 percent in 2015. Capital expenses are excluded.
The regulations released Wednesday are subject to 45 days of public comment before taking effect.
The way I read this a contractor subject to the rules can still pay higher salaries as long as the excess salary portion is from donations. So if the agency gets NYS funds for all the services they offer now I understand why they need to do fundraising!
How’ s about extending this to all the “non profit” contractors that NYC uses. Like, for example, the “911 museum”, where (last year) “Foundation President Joseph Daniels, 38, pocketed $371,307”?
This is a really stupid regulation and will result in less talented and capable managers running these businesses. At at time we are paying first year associates in New York law firms approximately $168,000/yr, you are not going to find top notch talent willing to take CEO positions for only $199,000/year which is barely enough to live on in the New York metro area.
it sounds great at the surface. No contractor will accept lowering his fee to 199k because of this law. Not knowing the details a easy way around this law would be increasing benefits like 401 k plan.
This is old news. More importantly it contradicts itself in many places. In addition, many of the provisions are not defined this leaving them open to interpretation by state bureaucrats as they wish. I have seen them do this, where they interpret things as they wish, without any sense.
Does it get adjusted for inflation?