CRYSTAL
LAKE SUPERINTENDENT TO EARN $190K SALARY FOLLOWING SCHOOL DISTRICT VOTE
Illinois Policy Institute/
Vincent Caruso
One Crystal Lake school district
superintendent has become the latest public official to collect a salary
nearing $200,000, following a vote by the district board.
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Illinois has the fifth-largest number of school districts in
the nation. And some local officials in those districts can earn an annual
income above that of every state governor.
In Crystal Lake Elementary School District 47, the board on March 20 unanimously
approved a contract that will lift Superintendent Kathy Hinz’s income closer to
that threshold. The five-year employment contract included a 4.6 percent salary
increase, boosting the superintendent’s annual earnings to $190,000 from her
previous salary of $181,600, according to the Northwest Herald.
The contract also sets an annual pay-increase agreement, ranging from a minimum
raise of 1.9 percent to a possible maximum of 2.75 percent, established at the
beginning of each contract year.
This raise coincides with a property tax hike on local residents. In December
2017, Crystal Lake Elementary School District 47 hiked its property tax levy by
more than 4 percent.
In addition to the salary increase, Hinz’s employee pension fund contributions
will also be covered by the district. The contract stipulates that the
contributions Hinz is supposed to make to the Illinois Teachers’ Retirement
System, or TRS, will “be paid by the Board in lieu of contributions by the
Superintendent.”
“Pension pickups,” in which school districts “pick up” state-mandated pension
contributions on employees’ behalf, are by no means uncommon – nor are they
sustainable. Nearly two-thirds of Illinois school districts, and therefore
taxpayers, pick up at least a portion of every employee’s required contribution
to TRS, according to the 2015 Illinois State Board of Education salary report.
Subsidies from the state often blind school districts from the true cost of
employee compensation, thereby encouraging such pickups. TRS is $74 billion in
debt as a result, a shortfall taxpayers will be expected to pick up.
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Annual pension payouts are based on a percentage –
up to 75 percent – of the four highest consecutive years of salary
within the employee’s final 10 years of service. Ramping up employee
salary at the end of one’s tenure, a practice known as “pension
spiking,” can inflate the employee’s pension, further straining the
taxpayer.
Residents of McHenry County, where the school district is located,
are already overtaxed – a fact they appear to have already
discovered, given that the county has seen a net loss of 11,200
people to other counties since 2010.
But there are a handful of sensible reforms lawmakers could
introduce to help ease that burden and return a sense certainty to
Illinoisans.
A 401(k)-style retirement system could help restore solvency to
Illinois’ broken pension system. Another solution would be to shift
pension cost responsibility from the state to local governments,
which would minimize bad spending habits. Moreover, an immediate
freeze on property tax levies should be lawmakers’ highest priority.
While one administrator contract alone isn’t enough to warrant
concern, the larger problem of poor spending priorities should be
enough for taxpayers to take note.
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