Derailing the School Administrators' Gravy Train


I am very disappointed about the results of a State Commission of Investigation (SCI) probe that uncovered widespread abuses and secretive deal-making on salary and benefits for school administrators across New Jersey.

We have to be careful not to use this information to paint all school districts with a broad brush since the study focused on only about 10 percent of NJ’s school districts. That being said, the results are alarming.

In an era when schools are under increasing pressure to stretch every dollar, administrative compensation has gotten out of control. It is state government’s responsibility to rein it in, and to ensure that accurate disclosure is being made to the taxpayers.

There are several issues that need to be addressed legislatively. First, we need to look at capping compensation and perks, and the pension padding that costs taxpayers dearly. When we see administrators’ compensation surpassing, even doubling, that of any other public employee, we know that things are out of control. Some of these administrators are taking home double or triple the compensation that the Governor and Commissioner of Education are making.

It is the height of hypocrisy for administrators to be highlighting the valid need for more funding, while living the life of Riley at the public’s expense.

Second, it’s clear that more stringent reporting requirements are needed since the true value of these packages is being hidden from the public. Base salaries are being reported, without information on the extra buybacks and perks being given to administrators.

We’ve allowed a free agency market in which administrators prosper - one which would make professional athletes blush. Meanwhile, teachers are the backbone of our education system, but their salaries have increased by less than half that of administrators.

I am working on legislation to address this problem. I hope to accomplish the following:

- Enhance public disclosure laws so the public is aware of the true value of administrative pay packages;
- Establish and enforce strict limits on benefits for highly-paid administrators, such as selling unused sick or vacation time prior to retirement (this will prevent a disadvantage for schools that can not are not offering these golden parachutes);
- Enforce adherence to pension calculation limits;
- Grant greater authority to the state Division of Pensions to ensure manipulation is not taking place;
- Strengthen the oversight and accountability practices of both the state Department of Education and local school boards; and
- Limit the duration of automatic contract renewals.

This particular gravy train has made it too far in New Jersey. It’s time to derail it, and it’s the responsibility of the Legislature to do so.

Thanks for the Feedback on TTF

I wanted to respond to the person who posted an anonymous comment on my statement on the Transportation Trust Fund. I appreciate the input.

My primary concern is making sure we don’t hit insolvency of the fund this year so that critical projects can not proceed and federal funds are put in jeopardy. Also, we need to restore fiscal discipline to the fund (putting the “trust” back in the trust fund to use the often repeated phrase). My hope is that a permanent revenue source which assures that expenditures do not exceed recurring revenues can be put in place – and that some of the debt can be retired short of maturity. This is not a permanent solution, and I think that has to be considered by state government in the near term. The real question is whether, in a year with another $4 billion plus budget deficit, we can make the TTF fiscally sound without a refinancing. Is the only option a significant gas tax increase, which could be phased in? None of us who drive a long way to work (in my case about 55 miles each way to Trenton) want to pay this, but what are the other options?

One-time asset sales or leases could be considered, but the state only has about $19 billion in total assets and once they’re gone, they’re gone. Any suggestions are certainly welcome.