My Comments: This all, again, seems so self serving that those at the very top (including the secretary at the very top) have gotten all the best and most exclusive deals for themselves while others (teachers and staff) are being hit repeatedly with cuts and increased work loads (larger class sizes).
Go, Julian, go! All of this is finally seeing the light of day which is what needs to happen to begin the process of change.
Maria
Updated: 5/24/2008
Officials forgo benefits for pay
By Julian Emerson
Leader-Telegram staff
Four top Eau Claire school district administrators get monetary compensation in lieu of some fringe benefits because they already receive those benefits after having previously retired.
Because they receive benefits available to them via the Wisconsin Retirement System, interim Superintendent James Leary, Deputy Superintendent Gregg Butler, Personnel Director Jim Kling and Business Services Director Dan Van De Water forgo some district benefits.
But that doesn't mean the district is saving huge sums by hiring the retirees. Those administrators are recouping some of those potential taxpayer savings in other forms.
For Leary and Butler, that compensation comes in the form of higher salaries than their positions would have paid were they receiving other benefits.
Leary, hired last summer as interim superintendent, is making $170,000 this school year, to be paid in $34,000 installments during each of the next five years. He isn't receiving district-paid retirement benefits as part of that deal.
Leary replaced former Superintendent Bill Klaus, who earned $141,766 during the 2006-07 school year along with other benefits.
Butler earned $122,835 plus other district benefits during the 2006-07 school year, when he retired. He was subsequently rehired for that position and is receiving $134,750 this school year.
As part of his one-year contract, Butler does not receive district benefits nor the $3,500 annual annuity payment others in that position would receive. Likewise, Leary doesn't receive the superintendent's annuity, $12,000 annually for incoming Superintendent Ron Heilmann.
Instead of a salary boost, Kling and Van De Water get their compensation in the form of tax-sheltered annuities, commonly known as TSAs. Those payments - $20,562 this school year for Kling and $14,387 for Van De Water - are invested in retirement accounts, dollars in addition to state retirement system money they already receive.
Van De Water retired from the Green Bay district and Kling from Spooner.
Fringe benefits for school district officials have come under scrutiny in the wake of an April 19 Leader-Telegram story detailing Klaus' attempt to access his early retirement stipends earlier than allowed in his contract.
A story earlier this month outlined how district taxpayers will pay an estimated $100 million for teacher and administrator stipends - payments in addition to salary and benefits - by the time current employees receiving them retire. Teachers hired after July 1, 2004, no longer receive stipends, and administrators hired after July 1 won't either.
Administrators defended their trading benefits for pay, saying they shouldn't be expected to work - especially given their experience - for less than others would be paid in those positions. They noted the practice doesn't cost taxpayers any more money than if a non-retired employee were working those jobs.
"I'm not willing to work for less than anybody else doing this job," Van De Water said.
In the cases of Butler and Leary, the district actually saves money because their compensation packages are less than the district would pay in salaries plus benefits to non-retirees, Van De Water said.
Leary said his compensation is "a straightforward amount" that is slightly more than he was paid while working for the Chippewa Falls district four years ago. His salary payments from the district begin July 1.
Not everyone agrees with that sentiment. Several district residents said the practice amounts to double dipping and greed.
"These guys are already receiving those benefits, so why do they need to be compensated for them again?" said Jerry Larson of Eau Claire, when asked about the arrangement.
Calling the annuities "self-serving measures of compensation," Eau Claire teachers union president Jo Burke said the district should re-think its policy of granting them, given budget constraints.
"The classroom is where the real important stuff is taking place, and that's where the resources need to go," she said.
Retirees are working in increasing numbers in school districts nationwide. An administrator shortage means those with experience are in high demand.
According to Wisconsin Association of School District Administrators statistics, 85 of the state's 426 public school districts are seeking superintendents this year. Add in vacancies for other administrative positions, and the shortage becomes even more acute.
Superintendent searches usually take many months, meaning districts often hire an interim such as Leary to fill in. WASDA figures show about 30 interim superintendents currently working in Wisconsin.
Annuities questioned
Kling and Van De Water aren't the only district employees receiving annuities. Student Services Director Fred Weissenburger receives a $2,700 annual annuity, as do Memorial High School Principal Tim Leibham and North High School Principal Dave Valk.
Annuities for those positions and those held by Butler, Kling and Van De Water were put in place during the 1993-94 school year, and amounts have varied since. Annuities for the superintendent are negotiated with the school board.
The only non-administrator to receive annuities is Patti Iverson, the superintendent's executive assistant. Beginning this school year, Iverson receives a $3,000 annual annuity as part of a deal the school board approved last March that also boosted her salary by $5,000 to $50,875.
Other executive assistants did not receive a pay raise at the time Iverson received hers. They did receive a 2.4 percent pay raise for this school year, while Iverson - who also is school board secretary - did not.
As part of her compensation, Iverson, like other executive assistants, receives annual longevity pay based on time worked in the district. In Iverson's case, that figure totals 9 percent of her salary, or $4,579 this year, which is in addition to her base salary.
Iverson's pay has stirred controversy among district employees, according to documents obtained by the Leader-Telegram.
An April 30, 2007, message signed by Bev Christianson, president of the bargaining unit representing district support staff members, notes the "many, many" e-mails circulating regarding Iverson's pay bump.
The letter references new public relations duties Iverson took on, although March 19 school board meeting minutes don't denote that.
"If you have additional questions about why one individual has been granted significant salary and benefit increases (separate from the remaining members of that employee group) at a time when staff in other employee groups are being reduced and/or eliminated, I do not have the answers," Christianson wrote.
Other e-mails note staff dissatisfaction with Iverson's raise and question why she received it while others in her job classification didn't.
Iverson's possible involvement regarding Klaus' contract has come under scrutiny since the attempt to access his $225,000 early retirement stipend surfaced. District officials say Klaus did not receive that money.
Klaus, Iverson's supervisor during his nine years as superintendent, sought the raise and annuity for Iverson a month after the school board approved contract changes allowing him to become Northstar Middle School principal.
Sources familiar with the matter have said Iverson, at Klaus' request, typed the document authorizing that Klaus begin receiving his retirement stipend Aug. 1. The document was signed by former school board President Carol Olson last summer and backdated to make it appear it was part of changes to Klaus' contract the board approved Feb. 5, 2007.
Olson was no longer a board member when she signed the document. The incident has prompted ongoing school board and police investigations.
Emerson can be reached at 830-5911, (800) 236-7077 or julian.emerson@ecpc.com.
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4 comments:
In addition to the many interm postions taken by retirees, the statewide picture shows more and more reliance on replacing key administrators with older men and women who have retired or are at or above retirement age.
Not only is this a result of demographics and all of the other factors that have led to a shortage of highly qualified younger applicants, but it's a recognition of the fact that older in many cases may be better, not only in terms of experience but
contrary to many streotypes of aging in ability to adapt to changing situations.
For example when Rhinelander needed a new high school principal they passed up a younger in-house candidate and went with a 62 year old retired Green Bay principal, It will be interesting to watch
and see if that was a wise choice.
The Steven's Point Board after rejecting all applicants provided by a search company went on
thier own and have narrowed their search to a 59 year old second tier adminstrator from Janesville, and a 40 ish up and coming superintedent from Lodi.
Be interesting to see which they choose- my vote would go for the old guy. He has excellent credentials.
Racine is going with a younger woman applicat to replace their $195,000 a year CEO type and are having difficulty arriving at a contract- probably well over $200,000 when all perks are added.
They could have gone with their interim, a retired local of proven quailty, My bet is that he will be back interming for them in a year or two.
Eau Claire is fortunate to have a core of
experienced second tier adminstrative staff.
Perhaps younger, newer administrators get passed over because the requirements allow for someone with a minimum of three years teaching experience to get an admin. certification.
Janesville went with the old guy- actually the younger candidate was an experienced supt with a good record (about 6-8 years)
but at small schools.
Uf Da- I meant Steven's Point.
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