High salaries and generous benefits for New Jersey superintendents and other administrators have drawn sharp criticism and calls to action from state lawmakers, including a backlash against compensation driven by degrees from so-called “diploma mills.”

In the highest-profile case, the superintendent and two other administrators in the 12,000-student, six-school Freehold Regional High School District received $2,900 in tuition reimbursement and $2,500 in annual salary raises after obtaining doctoral degrees from an unaccredited online school.

That institution, Breyer State University, is now prohibited from doing business in Alabama and Idaho for not meeting state accreditation standards. The Alabama Department of Postsecondary Education accused Breyer State and 17 other schools that it barred of “operating apparent diploma mills and taking shameful advantage of hundreds of unsuspecting students.”

The issue of suspect credentials for both teachers and administrators has cropped up in several states.

“[It’s] clearly a misuse of public funds. Using public funds to acquire a diploma mill degree—certainly the taxpayers had something else in mind,” said Alan L. Contreras, the top administrator of the Oregon Office of Degree Authorization and a national expert on diploma mills.

In New Jersey, the controversy has resulted in lawsuits, embarrassment, and tightened state regulations.

School administrators’ compensation already was a touchy issue, after it was revealed earlier this year that one small-town superintendent would receive a payout worth more than $700,000 upon retirement.

In new regulations to be issued later this month, the (NJ) state education department will require that in future contracts, reimbursement or salary increases be given only for work done at higher education institutions approved under the state’s accrediting standards.

But while some have accused [State Commissioner of Education Lucille Davy] of not doing enough, others believe she has gone too far. The New Jersey Association of School Administrators and the New Jersey Association of School Business Officials have filed lawsuits arguing that Ms. Davy exceeded her authority in issuing new regulations that limit the type of benefits school districts can offer administrators.

Richard G. Bozza, the executive director of the 1,450-member school administrators’ association, said the group filed suit in August in the U.S. District Court in Trenton because it believes some of the rules are unconstitutional and others are too vague.

“None of us are opposed to looking at these issues,” he said. “I think a responsible measure would be to look at all workers in New Jersey who are on a public payroll if we are serious about this.”

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Source: Education Week, 9.10.08