Board tears up contracts, gives Superintendent and Treasurer big new compensation

Published August 12, 2019 by justicewg

truett-at-visioningThe August board meeting is the usual time to sneak administration raises onto the agenda. Parents are busy with last minute vacations, and preparations for school. Tracking the board is low on the to do list. This year, if you don’t follow the board agenda you are missing a huge boost to the compensation for Culp and Collier. What makes it stand out is the tearing up of their old contracts in the middle of the five year terms, so the board can sneak in a pay raise. The change in a tax free annuity in the small print give the administration a hidden increase. This is a blatant payoff for the passage of the levies to build a new middle school – which passed by the slimmest margin.

A review – the vote was 48% no, 52% yes. Compare that to Worthington, which passed a bond, on the same day, with a 70% yes vote. If we give Worthington a letter “A”, Grandview’s administration performance deserves a “D”. Not only was there no consensus, the formation of three separate groups that opposed the $55 million bond were a first in Grandview, and indicated the administration did a poor job in the facility planning process. Many parents felt the facility process was not fair or open enough.

If you didn’t feel the administration did a good job through the facility process, and voted no on the levy, you might be a little upset about the lavish new payoff for the school administration. If you voted no because you didn’t think the board should have pushed a big increase in taxes for facilities, you should be contacting the board and let them know what you think of the new raises for Culp and Collier.

Torn up contracts for new pay boosts

Read the agenda of the August 14 board meeting for the story on the administration raises.

The administrators had contracts that gave them generous pay boosts each year, regardless of any action taken by the board. They were not up for re-negotiation until 2021. The board has placed on the agenda an offer to tear up the old contracts, and give new five years contracts with significant new money. There was no reason to end the old contracts – I never read any dissatisfaction in the public statements from Culp. This is a payoff from the board for passing a construction levy, pure and simple.

Culp was hired in 2014 as a new superintendent, with no experience in the job. This was supposed to lead to savings for the school district.

“Culp’s three-year contract, effective Aug. 1, has a starting base salary of $146,000 — about $12,050 less than O’Reilly’s 2013 base salary … Culp’s salary will increase on the first day of each contract year by the inflationary rate as determined from the Consumer Price Index. – TVN, 2014“

So much for cost saving, the new contract starts Culp at $170,517 effective August 1, 2019. That CPI indexed annual raise was not good enough, Culp now gets a 3% boost every year, regardless of the economic conditions the taxpayers will face.

Read the small print

The contract is generous in the new base salary, but read on to the smaller print in the new contract.

“… the Board shall pay for a tax-sheltered annuity policy, after-tax retirement policy and/or qualified tuition plan for the benefit of the Superintendent in an amount equal to twelve percent (12%) of the Superintendent’s salary. The Board shall purchase the annuity policy, after-tax retirement policy and/or qualified tuition plan designated by the Superintendent, with a preference, to the extent practicable, for selecting a vendor from the Board’s present list of approved vendors. The policy(ies) and/or plan shall be the property of the Superintendent, both before, during, and after her separation from employment.”

That tax free annuity was included in the first contract with the superintendent, but only 2.5 percent of Culp’s salary. A jump up to 12% allows the board to hide the big boost in pay in fringe benefits the board hopes you will not bother to read.

The administrators also get the full standard retirement – and more. The contract says “The Board shall also pay the employee’s share of the School Employees Retirement System as a “pick-up on the pick-up.”

The Board votes Aug14

The board appears to be fully committed to supporting Culp, will our objections make any change in their payoff for the administration? If you were part of the 48% who voted no on the levy, this payoff deserves an email to say no to excessive spending by the board.

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