Periphery profits while core suffers: perks for administrators is unjust
While testifying before the Nebraska Legislature’s Education Committee in August, 2010, State Education Commissioner Roger Breed said there was no more fat in the state’s education budget, and that additional budget cuts would mean eliminating programs.
“The fat is gone,” Breed said. Yet despite the emaciation of the state’s education budget, education administrators and top-level officials seem to find a surplus of budgetary “food,” often in the form of perks, benefits, and bonuses.
Breed himself makes more than $200,000 annually, said Betty VanDeventer, spokeswoman for the Nebraska Department of Education. In addition to his salary, the state pays the entire premium on Breed’s $20,000 life insurance policy.
“The state offers a $20,000 life insurance policy to all employees at no cost so the state pays $16.80 a year for that policy for the Commissioner,” VanDeventer stated Feb. 7 via email.
Breed, by virtue of his position, also serves on the Nebraska State College System’s Board of Trustees, a position which entitles him to $500,000 in travel and accidental insurance coverage. The Nebraska State College System’s Board of Trustees voted to increase their coverage five-fold, from $100,000 to $500,000 at its Jan. 18 meeting.
The NSCS provides the policy to all six members of the board, as well as Breed and each of the three college’s student trustees at an annual cost of $850 per person.
“This insurance is written with Hartford Life and Accident Insurance Company. The previous premium was $750 per year. The new premium with the $500,000 limit is $850 per year,” Carolyn Murphy, NSCS vice-chancellor for administration and finance, stated Jan. 19 via email. “The policy term is from December 5, 2011, through December 5, 2015, with annual premium payments,” Murphy stated. “The premium is paid for completely through the NSCS.”
The six-member NSCS Board of Trustees comprise a segment of industry professionals and administrators who are appointed to their positions by the governor.
Board Chair Carter Peterson is the owner of two businesses – Northeast NE Insurance Agency, Inc. and Antiques on Main, in Wayne. Lincoln Public Schools employs NSCS board Vice-Chair Michelle Suarez as principal of Everett Elementary school with an annual salary of $104,570. Suarez, like Breed, also enjoys a state-funded insurance policy from her employer. Suarez’s benefits package includes a $50,000 life insurance policy, $4,000 annual medical reimbursement plan, health, dental, long-term disability, vision, cancer, and accident insurance plans.
Board member Larry Teahon is manager of Environmental Health and Safety for Cameco Resources-Crow Butte operation. Trustee Bob Engles is owner of Engles Agency in Auburn. William Roskens is president of First Care Management Group, LLC. Gary Bieganski is president-emeritus of the Community Hospital in McCook.
At a time when many students work hard and faculty worry about pay and benefit cuts, it seems that the higher-ups don’t mind spending more on themselves, even though they’re already financially well-off. The “fat” is not gone.