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State panel starts probe of pay at not-for-profits

ALBANY -- A panel starting its investigation of not-for-profit agencies that receive state funds is seeking detailed information about employees and their pay rates.

"Our task force is conducting a top-to-bottom review, not only to audit current compensation levels, but also make recommendations for future rules to ensure taxpayer dollars are used to serve and support the people of this state, not pay for excessive salaries and compensation," said Benjamin Lawsky, superintendent of the Department of Financial Services. "Not-for-profits that provide services to the poor and the needy have a special obligation to the taxpayers that support them."

Non-profits are being sent letters requesting the information, with a mid-September deadline for replies, Lawsky said.

While Gov. Andrew Cuomo created the task force after news reports of Medicaid service providers making fat salaries, Lawsky told the Times Union the examination would extend to other programs.

"Our plan is to look at all non-profits that receive significant state funds," he said. "The question becomes what justifies each group's nonprofit status, what justifies them getting these tax breaks and large state grants, and then how are they spending the money that they get."

Lawsky's aides refused to identify specific organizations that are included in the inquiry.

The task force could hold hearings, or simply issue a report after it gathers the information.

In addition to exposing "outliers," Lawsky said, the task force will develop guidelines for compensation.


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