Cuomo probe including campaign contributors

Governor Andrew Cuomo is assuring that non-profits are not cashing in on taxpayer dollars.
The governor announced the creation of a task force on August 3, which will investigate the executive and administrator compensation levels at not-for-profits that are supported by state taxes.
The task force’s probe will attempt to ensure that taxpayer dollars meant to aid New Yorkers, particularly the less fortunate and destitute, are serving their rightful purpose and not fattening the wallets of executives. At the investigation’s completion, the commission will also recommend policies and procedures to prevent the misappropriation of taxpayer money.
The task force’s inception was inspired by a New York Times report of outrageously excessive salaries and compensation packages at not-for-profits that are dependent on state Medicaid funding through agencies such as the Office of People With Developmental Disabilities (OPWDD).
“Not-for-profits that provide services to the poor and the needy have a special obligation to the taxpayers that support them,” said Cuomo. “Executives at these not-for-profits should be using the taxpayer dollars they receive to help New Yorkers, not to line their own pockets.”
While there are currently no rules that govern compensation for not-for-profits receiving state support, Medicaid Inspector General Jim Cox, who is a member of the task force, has the ability to prevent providers from participation in the Medicaid program if their actions are deemed fraudulent.
The New York Times has reported that an association of non-profits believes that its members are being unjustly targeted and that for-profit companies receiving state money should also be investigated by the task force.
Benjamin Lawsky, the Superintendent of the Department of Financial Services and chair of the governor’s task force, announced on August 25 that data requests had been sent to over 600 not-for-profits. The superintendent’s letter calls for detailed information regarding executive and board member compensation, as well as an explanation of the organizations’ not-for-profit status.
“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,” Lawsky wrote in the request. “Not-for-profits that provide services to the poor and the needy have a special obligation to the taxpayers that support them.”
The recipients of Lawsky’s letter, which include Medicaid providers, social service providers and hospitals, were selected based on a study of funds received from the state.
According to media accounts, the governor’s task force may step on the toes of at least six of his campaign contributors.
The Daily News reported that non-profit executives Dr. Steven Safyer, president and CEO of Montefiore Medical Center, and Robert Conaty, executive vice president of operations at Montefiore, are both contributors to the governor’s campaign, with the medical center among the possible targets of the task force’s investigation.
Safyer purportedly earned $1.97 million and contributed $16,000 to Cuomo, while Conaty made $1.45 million and donated $20,000 to the governor.
Steven Osborne, a spokesperson for Montefiore, called the donations “personal contributions,” and declined to comment further.
As of press time, repeated calls to the governor’s office were not returned.
The New York State Division of the Budget’s January 2010 preliminary analysis of employees at not-for-profit mental hygiene agencies reported that there were roughly 1,926 staffers with yearly salaries in excess of or equal to $100,000. The average value of their salaries was $168,555, totaling $324.6 million.