Cuomo limits pay for state-funded work

Nonprofits and contractors receiving state funding will have to spend most of the taxpayers' money in services to their clients while capping the salaries of their executives, according to an order issued Wednesday by Gov. Andrew M. Cuomo.

The executive order, to become effective within 90 days, is part of an effort by Cuomo to make sure companies that contract with the state don't spend the bulk of state funds on administrative costs and salaries.

Under the order, providers who contract with the state as part of an extensive network offering largely health-related services will have to devote no less than 75 percent of their state funds to care or other services. They also will have to cap at $199,000 the amount they spend from state funds on individual executive salaries, though they may choose to augment the pay with money from other sources.

Expenditures for services will gradually have to increase to 85 percent by April 2015.

"We must make sure that taxpayers' dollars are always used efficiently and effectively to improve the lives of New Yorkers," Cuomo said in a statement. "This Executive Order will prevent public funds from being diverted to excessive compensation and unnecessary administrative costs."

Leslie Grubler, director of the United New York Early Intervention Providers and Parents as Partners coalition in Bayside, Queens, said most providers who work with the state would not be hurt by the salary cap. She said her organization was pleased that the governor is streamlining costs rather than reducing services, as had been the case in previous budgets.

"He said there would be no service cuts . . . and that's huge for all those of us who are worried about the children," Grubler said.