State-Funded Non-Profit Hands Out Generous Bonuses. San Francisco Chronicle columnists Phillip Matier and Andrew Ross, who frequently uncover examples of government waste, reported this example on July 13: "Even as government programs are being slashed across California, a Fresno non-profit for the developmentally disabled – largely funded with state money – handed out $500,000 in bonuses to its 350 administrative employees."
The bonuses, described by the director of the Central Valley Regional Center as "one-time salary adjustments," averaged about $1,400 a person. The payments were based on a formula that included length of service.
However, negative public reaction to the bonuses may have an impact. The columnists reported that a state senator called for a full explanation or a return of the money. "And, lo and behold, the center's board announced late last week that it was rescinding the bonuses," they wrote. "But just how the agency plans to get back the money is unclear, given that some employees have already spent their cut." (Source: Phillip Matier and Andrew Ross in the San Francisco Chronicle, July 13.)
Cal-Taxletter, July 17, 2009
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