* Comparing CEO pay increases at not-for-profits to average worker pay increases in the private sector might be a fun exercise, but perhaps the Tribune should’ve compared not-for-profit CEO pay hikes to private sector CEO raises. Either way, though, the Tribune found this when it looked at not-for-profit groups which get most of their money from state taxpayers…
A Tribune analysis of financial filings of 18 such nonprofits found that their executives received an average of 4.3 percent in pay raises in 2009 and 2010, when the economy was sputtering. That’s double the average compensation boost for private-industry workers, according to federal wage data.
Many of these nonprofit executives already earn far more than the top state officials who dole out tens of millions of dollars to these agencies every year. At one nonprofit that aims to help the working poor, the director had her pay nearly double in eight years, to about $340,000.
* Illinois pays a lot of money to these not-for-profits because it’s cheaper than doing the job itself. But doing so has created a large lobby that works to perpetuate itself…
•James Hogan, with Cornerstone Services Inc. The nonprofit serves the physically and mentally disabled in Will and Kankakee counties. He received a 1 percent raise in 2009 and a 25 percent raise in 2010, taking his total pay to in excess of $244,000. Those raises came during a time when Cornerstone publicly lamented the difficult fiscal climate of nonprofits, particularly those receiving government grants. […]
•Mary Hollie, with Lawrence Hall Youth Services. The organization provides residential care and other services to at-risk youths in the Chicago area. Hollie received a 7 percent raise in 2009 and a 9 percent raise in 2010, ending the year with nearly $284,000 in total pay.
* New York seems to have a pretty good idea…
But only New York has set caps, after Gov. Andrew Cuomo this spring ordered state agencies to limit pay at nonprofit vendors to $199,000, although nonprofits can raise private money to boost the pay or seek special permission from the state.
This discussion definitely ought to be part of the “budgeting for results” law that Illinois passed.
* Meanwhile, speaking of raises…
Illinois House members who engineered cuts in next year’s budget for the Department of Children and Family Services said they were upset DCFS spent money on raises rather than hire more caseworkers to comply with a federal decree.
Consequently, the budget awaiting Gov. Pat Quinn’s signature cuts money for DCFS salaries, which the agency said will lead to eliminating 375 positions.
The cuts will fall most heavily on child-abuse prevention programs and efforts that focus on children still in their family homes, said DCFS spokesman Kendall Marlowe.
“The General Assembly’s budget gives us no choice but to cut entire functions from this agency,” he said.
Members of the House Human Services Appropriations Committee - which put together the budget approved by lawmakers - said DCFS doesn’t need to cut programs for children.
Agencies often threaten to kill off popular programs when faced with budget cuts, but this cut was pretty large.