Pay Bump for School District Administrators, Managers Offset by Benefit Contributions
School officials approved wage hikes Tuesday, but when coupled with increased benefit contributions actually decrease or result in a tiny increase in total compensation for department heads, principals and managers.
Shorewood school administrators and managers can look forward to wage increases this school year, as officials approved the hikes Tuesday.
However, with increased contributions to health care premiums and pensions, total compensation remains relatively flat.
The increases cover the 2011-12 school year and are retroactive to July 1. The School Board approved the increases at a regular meeting Tuesday.
The deal with district administrators — including school principals, the high school assistant principal, athletic director, Recreation Department director and the business manager — calls for an average salary increase of 2.3 percent. But their total compensation will decrease by 2.56 percent because department heads and principals are contributing 5.8 percent to their pensions and paying 12.6 percent of their health care premiums.
The increase came after Superintendent Blane McCann conducted performance reviews of the district administrators. The pay hikes are $5,778 below what officials budgeted for administrative salaries.
District Business Manager Mark Boehlke said administrators are subject to the provision outlined in new state law — ACT 10 or the budget repair bill — requiring public employees start contributing 5.8 percent to their pension plans, but not another provision requiring they pay 12.6 percent of their health care premiums, because Shorewood isn't under the state health plan. However, the School Board decided to make the change for employees.
School managers, including the district's Human Resources manager/superintendent assistant, public information officer and business office coordinator will receive an averaged 2 percent pay bump, with total compensation increase averaging at .56 percent.
The increases are $1,536 above what the district budgeted amounts for managerial salaries.
The group is also paying the increased contributions to benefits, similar to those outlined in ACT 10.
The district offers $5,000 to employees who opt out of the district's health care insurance plan.
In addition, retirees will receive eight years of health care benefits; a benefit that will decrease to five year next year, according to Boehlke.
School officials did not vote on a pay raise for McCann. Boehlke said McCann's contract is typically negotiated separately and he has already announced his retirement.
McCann's current contract runs through the 2012-13 school years in a deal approved last February, which included no raise or additional benefits. His current salary is $152,250.