Senate Standing Committee on Investigations and Government Operations
Chair: Senator Carl L. Marcellino
Public Hearing: To examine executive compensation at not-for-profit organizationsreceiving State funding and the actions needed to prevent State tax dollarsfrom being wasted on excessive salaries
Place: Senate Hearing Room A, Legislative Office Building, Albany, New York
Time: 11:00 A.M.
Contact: Debbie Peck Kelleher (518) 455-2390
Media Contact: Kathy Wilson (516) 922-1811




Oral Testimony by Invitation Only

Monday, February 6, 2012

11:00 am

Hearing Room A

Legislative Office Building

State Street

Albany, NY 12247

SUBJECT:      Executive compensation at not-for-profit organizations

PURPOSE:     To examine executive compensation at not-for-profit organizations receiving State funding and the actions needed to prevent State tax dollars from being wasted on excessive salaries.

New York State relies on not-for-profit organizations to provide social service, daycare, child care housing, health, and mental health services to our residents.  It is imperative that any tax payer dollars used to better the circumstances of our residents not be wasted on excessive salaries.

In 2010, the Division of the Budget found that at not-for-profit organizations under contract with State mental hygiene agencies there were 1,926 employees with salaries greater than $100,000.  Their salaries totaled $324.6 million.

In a time of fiscal belt tightening, we need to ensure that State dollars are being spent efficiently.  These organizations serve our citizens who are most in need of society’s help.  It is unconscionable that funds that could be providing badly needed services are spent instead on bloated management salaries.

The purpose of this Committee Hearing is to investigate the compensation levels of executives at not-for-profit organizations providing services to our residents.  The Investigations and Government Operations Committee will convene to examine if these pay levels are appropriate and solicit suggestions for changes necessary to ensure that taxpayer funds are not wasted on excessive salaries.

Oral testimony will be accepted by invitation only and limited to 10 minutes in duration.  15 copies of any prepared testimony should be submitted at the hearing registration desk. The Committee requests advance receipt of prepared statements.  Written testimony will also be accepted and may be sent to the contact person listed on the reply form. In order to further publicize the hearing, please inform interested parties of the Committee’s interest in receiving written testimony from all sources

In order to meet the needs of those who may have a disability, the Legislature, in accordance with its policy of non-discrimination on the basis of disability, as well as the 1990 Americans with Disabilities Act (ADA), has made its facilities and services available to all individuals with disabilities.  For individuals with disabilities, accommodations will be provided, upon reasonable request, to afford such individuals access and admission to Legislative facilities and activities.

Senator Carl L. Marcellino, Chairman

Senate Standing Committee on Investigations and Government Operations