Posted: 10/1/03

State Auditor raps school deals

T.W. Budig
ECM Capitol Reporter

State Auditor Pat Awada on Sept. 25 charged that some Minnesota school boards attempt to hide their superintendentís total compensation while others donít know what it is.

ìYes, absolutely I believe thatís going on,î said Awada of masking compensation.

She doesnít begrudge superintendents their salaries, but her issue is transparency in government, Awada said.

Awada made her comments on the release of special study by her office of superintendent compensation ó an outgrowth of a recent superintendent salary flap in the Rosemount-Apple Valley-Eagan School District.

The idea behind removing pay limits for superintendents ó pay could not exceed 95 percent of the governorís prior to 1998 ó was to squash the temptation of hiding compensation in benefit packages, Awada asserted.

Rather, total compensation would be reflected in higher superintendent base pay.

But in the metro ó less so in Greater Minnesota ó the opposite is occurring, Awada argued.

Vehicle allowances, leave cash outs, severance packages, and other forms of compensation distorts the salary picture, she explained.

Area examples

For example, the Burnsville school district superintendent contract salary for 2002 was about $139,000, according to the auditor.

But total compensation for 2002 was about $155,000. And the total package included a severance payout of $51,000.

While the Anoka-Hennepin School District superintendentís 2002 contract salary and total compensation were identical, the value of the post severance package was valued at $87,000.

For some school districts, that figure would be zero.

Anoka-Hennepin superintendent in 2002 had unlimited leave accrual: unused sick or vacation days continue to be amassed.

Sixth among the top 25 schools in Greater Minnesota in terms of superintendent compensation, Elk Riverís superintendent contract salary for 2002 was $118,000, according to the auditorís office.

But with a total compensation of $145,000, Elk River moved to the top of the list of the 25 Greater Minnesota school districts in overall compensation.

Taxpayers should be outraged by some of the severance packages found in some superintendent contracts, Awada said.

She cited the recent $245,000 severance payments for the Hastingsí superintendent who received six months salary, six months leave and unused vacation time.

Such lavish packages work against keeping superintendents, Awada said.

ìI donít think school boards are necessarily aware,î said Awada of the total value of the contracts they sign with their superintendents.

Lawyers ó much less the public ó have a hard time digging through them, she said.

According to the report, compensation is sometimes ìhiddenî in contracts with no specific dollar amount affixed.

Minneapolis tops the total superintendent compensation list for 2002 at about $186,000.

Rosemount-Apple Valley-Eagan came in ninth at $160,000.

Recommendations

Awada made a series of recommendations she believes will lend transparency to the superintendent contract process.

ïSchool boards avoid contracts superintendents can break and still receive their severance package.

ïUnused sick days should be lost if not used ó or the Legislature should set up limits.

ïThe practice of allowing superintendents to take cash for unused vacation days should be discouraged, as it masks compensation.

Awada said sheíll promote legislation containing her recommendations.

Other views

But Charles Kyte, executive director of the Minnesota Association of School Administrations, draws a distinction between superintendents and other educators.

Superintendents alone are not allowed to hold tenure, he said.

ìThereís a relationship between compensation and taking a job that has less security and is more political in nature,î Kyte said.

Kyte accused Awada of insensitivity in even bringing up the issue of compensation the day after the fatal shootings in Cold Spring.

ìThatís where our attention is today,î Kyte said.

Shelley Tougas of the Minnesota School Board Association said the public has ready access to superintendent contracts through the school board, media, or by just stopping by the administration and asking for a copy.

Taxpayers have ìdirect accountabilityî over their school board through the ballot box, she said.

Thereís no need for the Legislature to act on superintendent contracts, Tougas said.

Local people know whatís best, she said.

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