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Hochul discards Cuomo's order up to nonprofit executives paying $ 199K

GovernorKathy Hokulis a state-funded service provider issued by his predecessor Andrew Cuomo for "excessive" salaries. Abandoned the presidential order to avoid paying. To executives.

Cuomo's2012 Edictlimits executive salaries for thousands of nonprofit providers to $ 199,000. Salaries could only be hit by an exemption or approval from the state budget director.

This rule also requires state aid recipients to pay up to 15 percent of administrative costs.

At the time, Cuomo was complaining about an unnamed service provider who received 99% of its revenue from a government contract and the CEO received $ 3.2 million in compensation.

The published report is a luxury life enjoyed by two brothers during the operation of the Medicaid-funded city-based Young Adult Institute, which serves patients with disabilities. Emphasizes style and salary. The

post also reports that government-fundednursing home executiveshave a $ 1 million compensation package.

"How do you justify this spending for taxpayers in this state?" Cuomo said then.

However, the State Department of Health said in a notice posted last week that it no longer imposes asalary cap— because it no longer exists.

"Presidential Order 38 on January 18, 2012 regarding restrictions on state-funded administrative costs and executive compensation has been abolished, so ... administrative and executive compensation restrictions have been abolished. It's no longer needed, "the Ministry of Health said in the New York State Register.

State agencies that regulate people with disabilities and mental illness, the elderly, substance abuse services, criminal services, and providers that work with children and families will no longer enforce salary caps. I notified you that. Because Hochul has abolished it.

Cuomo's edict devastated the water and immediately filed proceedings from the healthcare and home care industries.

Andrew Cuomo
AP

In 2018, the Court of Appeals was affected by Kuomo's order, We conclude that some of them were excessively wide.

The court upheld some of the orders, and hospitals or other healthcare providers who depended solely on state funding for their income were limited to indemnified payments. I decided. Executives seek an exemption from the health sector to pay $ 199,000 or more per year, or $ 199,000 or more.

However, the ruling also stated that Cuomo improperly imposed an overall cap on executive compensation, regardless of funding source. The

decision stated that social service providers can ignore the salary edict. Earned income fromsources other than Medicaid, or from other state funds such as Medicaid, private insurance, and charity.

The judgment dramatically limited the number of service providers and other entities affected by the order.

Advocates of social services praised Hokuru for robbing the salary caps they complained about.

"The order was confusing and not easy to carry out," said Michelle Jackson, Managing Director of the New York State Council of Social Welfare.

"It's no surprise that Hochul removed it. The order had no teeth. Thank you to the governor for trying to keep what's working."

There were no comments from Hochul's office.