Report energizes critics of superintendents' perks

Wednesday, March 15, 2006 • BY JOHN MOONEY • Star-Ledger Staff

The day after the release of a searing state report on how public school administrators are paid, talk turned to fixing the system.

Legislators yesterday revived languishing bills to stop the perks and other extra pay detailed in the report by the State Commission of Investigation, in some cases amounting to tens if not hundreds of thousands of dollars hidden from taxpayers.

Pension officials pledged to review any cases where officials may have padded their income.

State officials and school organizations promised to consider the various recommendations in the 165-page report, from limits on extra pay available to administrators to further public disclosure of their full compensation.

"This calls to mind some questionable practices and obviously some people working the system," said acting Education Commissioner Lucille Davy. "I don't want to paint with a broad brush, but there is obviously a need for greater transparency and accountability."

Even though widely anticipated, the SCI report sent a jolt through districts and their school administrators, unearthing multilayered packages that many districts rely on to attract and keep administrators.

Looking at 71 school districts and more than 300 contracts, the SCI found what it called a pattern of extra compensation that could grossly inflate total pay through annuities, buybacks of unused sick and vacation time, and job perks such as district cars.

The author of the report said districts -- suburban, urban, small, large -- were chosen for investigation as a representative sample, along with a few that had been suspected of offering generous packages.

"That factored a little into it, too, but we tried to be as comprehensive as we could," said Lee Seglem, the SCI spokesman.

Some officials, even in districts not reviewed by the SCI, did not take well to the findings. Several yesterday questioned the report's timing on the eve of school budget elections and in the face of lean state aid prospects.

"Let's not throw us to the wolves the day after we filed our budgets with the state," said Patricia Walsh, a school board member in Middletown. "That $4.5 billion hole in the state budget is not because of a few superintendents."

Others also pointed to the flux in superintendents' jobs, the only certified position not protected by tenure, leading to short terms in office. There are currently at least 40 superintendent vacancies in the state.

"The destabilization of the job and the lack of people to fill these positions has created a situation where it is basically a free market," said Barry Galasso, director of the state's superintendents group.

The SCI report made several recommendations, including limits on reimbursements for unused sick and vacation time, full public disclosure of compensation packages, and tighter monitoring and training around pension rules.

"A blanket prohibition on the ability to cash in (on sick and vacation time) on annual basis would go miles to addressing the problems," said Seglem.

Several recommendations also involved the state's oversight, including the need for subpoena power to determine pension amounts, and the need for a state Department of Education review of contracts.

"I'm not sure we ought to review every single contract," Davy responded. "I'm not ready to go there yet. ... I think there are other ways to ensure these are public, such as making documents more available."

The state's school boards association said it would rethink its own training and guidance for contract negotiations. The SCI criticized the association's model contract, described as overly generous.

"The employment market has gotten us to this point," said spokesman Frank Belluscio. "But it's time to take a look at what we're doing and maybe reconsider some of these practices."

Assemblyman Michael Panter (D-Monmouth) said he expects the report's release to jump-start two of his bills, limiting sick-time buybacks and tightening pension rules. He said the bills had not gotten far in the Legislature.

"But candidly, I think it was because the issue hadn't seen the light of day like it has now," Panter said. "I think now I'll have a number of co-sponsors."


John Mooney covers education. He may be reached at jmooney@star ledger.com or (973) 392-1548.
© 2006 The Star-Ledger. Used by NJ.com with permission.

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