Judge throws out state health department regs trying to cap non-profit executive compensation

BY KEN LOVETT
NEW YORK DAILY NEWS
Thursday, April 10, 2014, 11:00 AM

Gov. Cuomo has lost a round in his efforts to cap executive pay at state-funded non-profits.

Nassau County state Supreme Court Judge Thomas Feinman tossed out regulations written by Cuomo’s Department of Health that sought to cap non-profit executive salaries at $199,000.

The lawsuit was brought by the Agencies for Children’s Therapy, a non-profit that represents more than 30 agencies that provide early intervention, prekindergarten, special education and other services to more than 25,000 children throughout the state.

Feinman said the Department of Health overstepped its boundaries. He said the Legislature had already rejected similar proposals.

He also dubbed as “unsubstantiated” the state’s argument that capping non-profit compensation and expenses will ensure that taxpayer dollars are used “properly, efficiently and effectively.”

It’s unclear what the impact of the ruling will be on similar regulations imposed by other state agencies on non-profits.

A spokeswoman for Attorney General Eric Schneiderman, who handled the case, had no comment on whether the ruling will be appealed.

http://www.nydailynews.com/blogs/dailypolitics/judge-throws-state-health-department-regs-cap-non-profit-executive-compensation-blog-entry-1.1751984#ixzz2yV4TlVf9

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