(Host) A Republican lawmaker wants to trim salaries at state-supported non-profit agencies, and use the money to save a prescription drug program.
Representative Patty O’Donnell wants those agencies to reduce top salaries by five percent. If they don’t, she says they shouldn’t’ get state money.
VPR’s John Dillon has more:
(Dillon) O’Donnell is a Republican from Vernon and a longtime advocate for human service programs.
She’s trying to protect a prescription drug benefit for seniors that fellow Republican Governor Jim Douglas wants to cut.
But instead of looking elsewhere in state government to find the money, O’Donnell turned to the non-profit sector.
(O’Donnell) “Some of these people are making an astronomical amount of money. Everybody else in state government that’s controllable have taken a 5 percent. We need to ask the same from our non-profits.”
(Dillon) O’Donnell distributed a spreadsheet showing top salaries paid by about 30 nonprofit organizations around the state.
Some of the salaries she’s looking at ranged from $250,000 at mental health agency to $160,000 at the nonprofit that oversees Efficiency Vermont, which works to save energy for homes and businesses.
Her proposal would target groups that get more than 50 percent of their funding from the state. She wants the groups to trim salaries for those making over $60,000 a year. If the groups won’t cut pay, O’Donnell says the state should.
(O’Donnell) “There’s a part in the bill that requires the departments that hand out the money to these organizations be allowed to see the payroll benefits. And then the departments themselves will deduct the 5 percent from the employees.”
(Dillon) O’Donnell acknowledged that targeting nonprofit groups won’t raise the $3 million to $5 million needed to save the prescription drug program.
And a lobbyist for several nonprofit organizations questioned her proposal. John Shullenberger works for housing and conservation groups in the Legislature. He says nonprofit boards work hard to cut costs in tough economic times.
(Shullenberger) "I can tell you that many of these organizations for months now, if not for the last couple of years, have been tightening their belts, they’ve been freezing salaries, freezing position hires and making lower contributions to health insurance and to retirement and I think have been going through a lot of sacrifice."
(Dillon) Shullenberger pointed out that the list distributed by O’Donnell included groups that would not be covered by her bill.
(Shullenberger) "What was handed out today was a list of organizations, many of which do not receive 50 percent of their funding from the state. And they’re still on the list. So one might argue that this is kind of declare open season on non-profits."
(Dillon) House Speaker Shap Smith said the bill would be assigned to the appropriate committee. He said his first choice is to use federal stimulus money to protect the prescription drug program.
For VPR News, I’m John Dillon.