For years, the state did little to regulate salaries and perks of superintendent contracts, many of which exceed the $175,000 salary authorized for the governor's job. The cushy days, though, may be over.

Public outrage and state government concern over contracts packed with lucrative benefits and "golden parachute" buy-out provisions have led to a series of laws and regulations that aim to curtail school spending, especially for administrative salaries.

"It's fair to say that this is definitely a new day," said Lucille Davy, commissioner of the state Department of Education. "If you are paying them reasonably and responsibly for doing the job, then there's no reason to give a parachute or a parting gift, or another half a million at the end because you thought they were nice people."

Lawmakers are also pushing to restrict what they term excessive payments. "Some school superintendents have taken the mistaken view that money meant for the classroom would be better spent financing their personal, diamond-encrusted, taxpayer-provided nest eggs," said Assemblyman Joseph Cryan, D-Union, sponsor of a bill that would tamp down large retirement payouts. "The residents of New Jersey are rightfully outraged at seeing their tax dollars used to provide departing superintendents with these offensive payouts."

In the past, it wasn't uncommon for top administrators to be paid tens of thousands of dollars at retirement for unused sick days. Now, the new laws cap accumulated sick pay at $15,000. The laws also require school districts to detail administrators' total benefit packages on their Web sites, and advertise any changes to superintendent contracts at least a month in advance of a public hearing.

The post of executive county superintendent has been created in each county. He or she must review all employment contracts over $75,000, and reject any that have excessive costs.

A reform bill sponsored by Cryan passed the Assembly 76-4 last month. If it becomes law, the bill would ban large severance packages for both current and future school superintendents and other high-ranking school officials, regardless of the terms of an administrator's current contract, a provision that could be challenged in court.

Education lawyer Vito Gagliardi said the Legislature has focused on superintendent contracts even though they are a small percentage of a district's total budget. "There is no talk about teachers' salary and benefits, but there is a lot of talk about superintendent contracts," Gagliardi said.

The more stringent regulations have some school superintendents wondering who will be interested in pursuing administrative jobs in the future. With 608 superintendent posts in the state, the demand for superintendents can outmatch the supply, which in turn can drive up salaries.

Toms River Regional Superintendent Michael J. Ritacco said that the public focus on superintendent's compensation does not include any discussion of the value a good school leader brings to a community.

Some in the education community wonder if the new regulations have gone too far. "Our organizations urge state leaders to avoid overreaction through unnecessary and restrictive legislation or regulation," Marie S. Bilk, executive director of the New Jersey School Boards Association, and Richard G. Bozza, executive director of the New Jersey Association of School Administrators, wrote in a recent letter to school boards and superintendents.

The school boards association and the administrators group have formed a joint task force to study superintendent compensation and make recommendations on contract development "that are fair and reasonable and meet the expectations of the citizens of New Jersey." School Boards Association spokesman Frank Belluscio said boards of education are moving away from nonsalary compensation and trying to make all compensation for administrators "as visible as possible."

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Source: The Daily Record, 7.20.08