Superintendent Salary – Background and Data the BOE Used
This topic seems to generate more interest than any of the way more important topics surrounding education right now.
Since our TMZ news source is inclined to omit key parts of the context and history, here is a bit more of a factual overview:
Dr. Roberts had taken an 8% pay cut not after the millage failed, but after Governor Granholm cut our funding in the middle of the year as part of a way to address the major recession we were experiencing in Michigan. We were the only state that had not emerged out of recession from 2000, and our recession was exacerbated by the struggle our Big 3 auto manufacturers were suffering at the time, including potential bankruptcy that would have put Michigan into an unemployment range unlikely to be improved upon for decades and at a scale unseen in the US. Michigan already topped US unemployment during our search at 14.9%. This could have gotten much, much worse. While those of us that live here believe Ann Arbor is a great place to live, we had to be cognizant of what others might know about Ann Arbor and Michigan, generally. With a population of ~119,000, we didn’t assume everyone would know a lot about Ann Arbor.
Dr. Roberts then left the AAPS. He was able to find a job in North Carolina at an elite university-based program for math and science talented students with a student population of 650. His salary was $210,000. That was one data point that was very important to me when we had to then embark on a Superintendent search to replace him; especially given the size of the AAPS which has 16,500 students. This reinforced the notion that compensation is important in attracting top talent.
During the search, Robert Allen stepped into the interim superintendent role. We did not replace his prior role, but rather Nancy Hoover stepped up and everyone did a little more that year to try to get by since we continued to face annual operating reductions of 10% of our general operating budget.
We asked our search firm to conduct a benchmarking study in the US for other districts like ours: specifically, public schools that are in high-performing university towns. They did this study and cities like Cambridge, MA and Berkeley, CA were included. The median salary was $246,000. The BOE then set a target salary (we could have also used a range, but instead went with one number) of $245,000, which would be negotiable based on the experience level of the top candidate. Our top candidate, which accepted our offer, had 40 years of experience in education.
This was a data-driven approach that took in to consideration the macro economic situation, which was important in the context of this search, our town’s unique environment and our need to attract an experienced candidate. We did not feel this was a ‘resume-builder’ opportunity given the drastic cuts we expected to continue to face. We would need the best talent to help the AAPS get through the rough times ahead.
We anticipated that reductions would continue to be necessary, including to salaries of all of our staff, until Michigan decides to start investing in education again.
I think that one point that may have been omitted or downplayed in the comparisons between similar districts is the extreme difference in cost of living. I have lived in Berkeley and Cambridge and everything is vastly more expensive there than here. I’d say that if you went for cost of living equivalencies, it would accurate to compare the salary that our superintendent is paid in the $400,000 range in Berkeley. And I don’t think that the struggles that Ann Arbor has faced with state funding even come close to the struggles in the entire state of California with their convoluted propositions for funding education. Massachusetts, however, seems to have a much more reasonable position when it comes to funding public education.
There were other areas besides Berkeley and Cambridge. Cost of living is an important consideration. There is a high correlation between home value and the quality of public education available in that community. In Michigan, it is much more expensive to live in Ann Arbor than in many other parts of the state, so when we compare with Michigan-based communities, this point doesn’t get much discussion but is important when we assume people will be living here (a requirement of our Superintendent).
Christine, I personally think the board made a mistake with the salary because even though it’s a small amount of money it is clearly a flash point.
But I am more concerned with other aspects of Pat Green’s contract. Perhaps you could explain why Pat Green and some of the other top administrators have a clause in their contracts that their salary cannot be reduced. In other words, management could negotiate reductions with the unions, and the board could impose those same reductions on all non-union staff, except those top administrators.
Ruth,
As before, I anticipate we will see reductions at all levels to address cuts for this next cycle of reductions. I do not believe there is any contract language that will get in the way of that, as evidenced by the same action ~ two years ago where top administrators took a cut in the 8% range (Balas). This was done as a team, with the Superintendent leading the way. I anticipate we may see something similar this time around. However, we all need to recognize that this action alone will not close a $17M – $20M gap in our operating budget for next year. It is an important leadership action, but insufficient alone in addressing the magnitude of cuts we face (again). I know you appreciate that as well.
Christine, All of the top administrators have language along these lines, which says that their salaries cannot be adjusted downward. Two examples:
Pat Green’s:
3. Compensation: The district shall pay the Superintendent a base annual salary of $245,000 (the “Initial Salary”). The District retains the sole right to adjust the base annual salary of the Superintendent during the term of this Contract; provided, however, the District will not decrease the Superintendent’s base annual salary during the term of this Contract.
Alesia Flye’s:
3. . . At the commencement of this contract, Administrator’s annual salary shall be $140,000. (pro-rated from July 1, 2011). Such salary shall be subject to further adjustments throughout the term of this Contract at the discretion of the District but shall in no event be less than $140,000 per annum.
Again, I believe there are still ways to get around this. I can engage our lawyer in a discussion to be sure, but if they voluntarily move their salary down, I believe we can accept that change in their contract. I can’t recall if we needed to do something with legal the last time this was done, but I do not believe that was the case. I believe they voluntarily took an 8% reduction and executed it immediately. I am not concerned about this at this point but can do some work on it.
As I read the contract, any term can be voluntarily changed by a written agreement of both parties. In other words, the board can not lower the super’s salary, but if she would take one for the team and agree to a reduction, the board could sign off on it. That is a basis principal of contract law.
Hunter, that’s how I read it too. But the board cannot decide to impose reductions on top staff–let’s say that 2 of the top staff agree and the rest don’t, for instance. . . and I realize that is not going to be a large piece of any savings the school district follows but I think when Todd Roberts and the rest of the cabinet took major reductions it was a HUGE symbolic action.