Suffolk County lawmakers seek to deny funds to nonprofits with hefty exec pay

Suffolk County lawmakers have introduced a bill that would only fund nonprofits if its executives are paid below a certain threshold, an initiative supporters say gives more oversight of how taxpayer funds are spent, but critics argue could make charities think twice over whether to partner with the county.

The bill, sponsored by Legislators Rob Trotta (R-Fort Salonga) and Trish Bergin (R-East Islip), would bar the county from funding agencies that pay any employee more than the New York governor’s budgeted annual salary, which currently stands at $250,000. It would also require all nonprofits to list all gifts and donations they receive along with a list of donors.

Agencies are already required to report all forms of revenue and salaries to the county, but not individual donations. The restriction would not apply to nonprofit hospital systems. 

"If not-for-profits want to do their own fundraising, then I think it's fair that they pay themselves whatever they'd like," Bergin said. "But when they ask Suffolk County taxpayers to fund these exorbitant salaries, I just find it unfair."

More than 20 nonprofits that contract with the county to offer services ranging from drug addiction services to feeding the food insecure could be impacted because they have employees earning more than $250,000, according to annual disclosure reports filed with the county comptroller’s office.

The legislation is expected to go before the Budget and Finance Committee during its Aug. 27 meeting. If it advances, it will require a public hearing and a simple majority approval in the 18-member, Republican-controlled legislature. Suffolk County Executive Edward P. Romaine has not said if he would sign the bill.

"The county executive respects the legislative process and will review the bill upon approval by the legislature," said Romaine spokesman Mike Martino.

Legis. Rebecca Sanin (D-Huntington Station), the former president and CEO of the nonprofit Health and Welfare Council of Long Island, said the bill is unfair and she will oppose it

“Human services executives are highly qualified leaders running complex organizations that help meet Suffolk County residents’ needs that government cannot,” she said. “We engage these organizations because they provide cost-effective solutions to serve residents through competitive procurement, not as an act of charity.”

Sanin questioned why the legislation would not apply to law firms, engineering firms or paving companies that contract with the county.

Trotta said there are numerous CEOs at Long Island nonprofits earning $400,000 per year, which he said does not jibe with a mission of serving the needy. He noted chief executive Peter Elkowitz of the Long Island Housing Partnership — which contracts with Suffolk County — earns a $408,000 salary at LIHP, which has $4 million in annual revenue, according to its 990 tax form. Trotta compared that to Romaine, who receives a $241,000 salary while overseeing a $3.9 billion budget and about 9,000 county employees.

“The whole idea of not-for-profits are these people who are supposedly doing good for the community, they’re supposedly not making a profit, right? But they're profiting themselves,” he said. “And then they come to the taxpayers and ask for more money.”

Elkowitz did not respond to a request for comment.

Similar legislation has faced legal challenges.

 Former Gov. Andrew Cuomo issued a 2012 executive order that limited executive pay to $199,000 to agencies that receive state funds. The order prompted lawsuits from nonprofits and the Court of Appeals in 2018 issued a ruling that rolled back much of the decree. Gov. Kathy Hochul rescinded the executive order in 2022.

Bergin said she believes the bill will hold up against legal challenges.

Family and Children’s Association president and CEO Jeffrey Reynolds said the organization is in talks with county officials to start a program working with new mothers who test positive for drugs and others to develop a plan to keep their children safe. He said the organization would have to contribute $20,000 in addition to $80,000 from the county to run the program.

 Reynolds — whose 2022 compensation package was $391,167 as he managed a $21.2 million budget that year, according to FCA’s publicly available 990 tax form — said the proposed legislation has given him second thoughts about moving forward with the program. He said that would be a loss for the potential participants.

“Not-for-profits serve a vital role in Suffolk County … and we often do the work that government is unable or unwilling to do to the same extent,” he said. “This [legislation], to me, feels pretty invasive and off topic, especially if organizations are not using Suffolk County funds to pay for the salaries of administrators.”

Family Service League, whose CEO, Karen Boorshtein, earned about $452,000 in 2022 while managing a $58 million budget, according to its 990 form, would be impacted by the law. FSL spokesman Don Miller said its programs are "efficient and cost-effective for the taxpayer."

"FSL operates over 60 programs, and its CEO’s compensation is consistent with that of nonprofit organizations of comparable size," Miller said in a statement. "Yet that compensation is significantly less than that earned by chief executives in the private sector who, like FSL’s CEO, are managing a staff of 725 with an annual budget of nearly $70 million."

By Vera Chinese

vera.chinese@newsday.com@VeraChinese

Vera Chinese joined Newsday in 2017 after working as an editor for the East End lifestyle publication northforker and a general assignment reporter for the New York Daily News.