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Entries in Pay Cuts (1)

Wednesday
Aug242011

California School Superintendent Takes $800,000 Pay Cut over Next Three Years

Creatas Images/Thinkstock(FRESNO, Calif.) -- When a headline starts "School Official Gives Himself a Hefty...," the next word is usually "Raise."

But in Fresno County, Calif., School Superintendent Larry Powell gave himself a hefty pay cut.

On Aug. 31, Powell will retire and then be hired back to fill the remainder of his four year term, reducing his now $250,000 annual salary to $31,020. The move will add over $800,000 to county schools over the next three years.

"My wife and I are very well compensated. We've been very blessed...I've been in this business for 41 and a half years and these are tight budget times in California for public schools," Powell said. "My wife and I thought, what can we do that might help change the dynamic in my particular area."

Powell, 63, said that over the last three years his county has lost $1,600 to $1,900 in funding per student. There are 195,000 students in Fresno County and 356 schools.

"Fresno…has been labeled the Appalachia of the West. We're like a bar bell, we have extreme wealth and extreme poverty…there's no shortage of need locally," he said.

Powell and his wife, Dot, began investigating and realized that with Powell's pension and her retirement benefits from working as a school principal, they had plenty of money to live off of without his full salary. So Powell approached the board of education about letting him retire early and then rehiring him to fill the three years and four months remaining in his term as superintendent.

"It's a unique arrangement that I'm in and it allows me to give something back to the community in a tangible way and I don't think of it as being a hero at all. It was a perfect opportunity to do something where the public benefits, the taxpayer benefits…the taxpayer saves between $150,000 and $160,000 in reduced costs, the county receives $830,000."

Powell's positive actions follow a slew of scandals over the past year in California that highlighted the seemingly huge salaries of officials in the state's public sector. In July of last year, outrage erupted in Bell, Calif., at the revelation that the city manager made nearly $1 million a year. Last month, it was revealed that California's highest paid employee was a prison surgeon who no longer treated patients. That surgeon made over $777,000.

Chris Mathys, the manager of the Valley Taxpayer's Coalition in Fresno, said that his association hopes that Powell's pay cut inspires other public officials.

"That's the exact kind of thing that we need. What we're not seeing enough of is public servants coming forward and saying you've had to tighten your belt in private sector, your 401ks are shrinking," Mathys said. "When people like Mr. Powell come forward and are willing to take the personal cut..when it's your own wallet, your own household, then that really shows you're sincere about your efforts."

Powell said that since his decision was made public earlier this week, he's been overwhelmed by the response.

"My Facebook page has been hit with literally hundreds of thank yous…I'm no hero...It's a way to give back to the community I love and we're going to do that," Powell said.

Copyright 2011 ABC News Radio







ABC News Radio