BUSINESS ADMINISTRATION 440 East 100 South Salt Lake City, 84111 801.578.8348

June 1, 2021

MEMORANDUM

To: Board of Education From: Alan Kearsley, Business Administrator Subject: Board Compensation

It is proposed that the Board approve the following resolution regarding an increased compensation package for the Salt Lake City School District Board of Education:

A resolution approving a new board compensation package starting July 1, 2021 that raises the annual compensation from $3,000 to $12,000, adds a $2,000 biennial technology stipend paid in January following an election cycle, continues pay of $60 for each meeting in excess of the initially approved meeting schedule up to a maximum of 12 extra meetings in a calendar year, and continues district paid health and accident insurance, and district paid dental insurance.

Exhibit: 3G1 Board Meeting: 06/01/2021

Excellence and E q u i t y : every student, every classroom, every day www.slcschools.org Board Compensation Study

Salt Lake City School District

Prepared by:

D. Burke Jolley November 2017 Salt Lake City School District (SLCSD) Purchasing Department asked me to review SLCSD board member compensation and make recommendations on changes to their overall compensation package. To facilitate this review, I analyzed the SLCSD school board compensation (salary and benefits) and compared the overall compensation with three specific groups: other Salt Lake County school districts, large Utah school districts (over 20,000 students), and other (non-school district) elected officials.

I will compare the overall board member / elected officials compensation packages in four sections: Salary, Insurance, Other Benefits, and Conclusion.

Salary:

Utah Code Section 53A-3-202(1) states that: Each member of a local school board, except the student member, shall receive compensation for services and for necessary expenses in accordance with board compensation schedules adopted by the local school board in accordance with the provision of this section.

SLCSD pays an individual board member an annual base salary of $3,000, plus $60 per extra meeting. The extra meeting amount equates to about $720 per year, for a total annual salary of $3,720. Here is how SLCSD compares to other Salt Lake County school districts:

Salt Lake City School District Annual Board Member Pay Compared with Other Salt Lake County School Districts

Annual Total Board Member Extra Maximum Base Pay Meeting Pay Annual Salary

Salt Lake City School District 3,000 720 $3,720

Canyons School District 13,000 0 13,000

Granite School District 3,000 1,080 4,080

Jordan School District 12,000 0 12,000

Murray School District 6,000 1,040 7,040

Average (excluding SLCSD) $9,030

SLCSD board members are the lowest paid school board members in Salt Lake County at $3,720 per year. Board member salary of the other four Salt Lake County school boards averages $9,030, over $5,300 more than the salary of a SLCSD board member. Jordan School District pays board members $12,000 per year, while Canyons School District has the highest paid board members at $13,000 per year.

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The following chart shows how SLCSD compares to the large Utah school districts (over 20,000 students): (Note that several of the large school districts are in Salt Lake County and were also included in the previous chart.)

Salt Lake City School District Annual Board Member Pay Compared with Other Large Utah School Districts

Annual Total Board Member Extra Maximum Base Pay Meeting Pay Annual Salary

Salt Lake City School District 3,000 720 $3,720

Alpine School District 6,000 2,160 8,160

Canyons School District 13,000 0 13,000

Davis School District 4,320 3,600 7,920

Granite School District 3,000 1,080 4,080

Jordan School District 12,000 0 12,000

Nebo School District 6,312 2,400 8,712

Washington School District 9,000 0 9,000

Weber School District 3,000 0 3,000

Average (excluding SLCSD) $8,234

When comparing SLCSD board members with Utah’s largest school districts, only (at $3,000) pays their school board members less than SLCSD ($3,720). The average board member salary of the other eight largest Utah school districts is $8,234, over $4,500 more than the salary of a SLCSD board member.

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Just for curiosity, I compared the compensation of SLCSD board members with the elected officials of Salt Lake City, Salt Lake County, the Utah State Board of Education, and the Utah State Legislature. Here is how SLCSD compares to these other elected officials:

Salt Lake City School District Annual Board Member Pay Compared with Other non-School District Elected Officials

Annual Total Board Member Extra Maximum Base Pay Meeting Pay Annual Salary

Salt Lake City School District 3,000 720 $3,720

Salt Lake City Council Member 25,525 0 25,525

Salt Lake County Council Member 39,365 0 39,365

USBE Board Member (1)

Utah State Legislator 16,380 0 16,380

Average (excluding SLCSD) $27,090

Note: (1) The USBE did not report an annual salary for this study. However, they did report that a USBE board member receives $273 per eligible meeting.

SLCSD board members are paid significantly less than these non-school district elected officials. Salt Lake County Council Members receive over $39,000 per year, while Utah State legislators are the lowest paid of this elected official group at $16,380 per year. The average is $27,090. Of interest, legislator salaries are currently being reviewed by the Legislative Compensation Commission (an independent commission) and they will probably recommend increasing Utah legislator salaries.

Recommendation: SLCSD board members are underpaid relative to Salt Lake County school districts, large Utah school districts, and other non-school district elected officials. My recommendation is that the Salt Lake City School Board increases their salaries from $3,720 per year to at least $10,000 per year.

Insurance:

SLCSD provides health insurance (individual and family coverage) to its board members at no cost to board members. This benefit is fairly typical of many Utah school districts, Salt Lake City, Salt Lake County, Utah State Board of Education, and the Utah State Legislature. Of all the school districts and governmental entities surveyed, only Murray School District does not provide health insurance to its board members.

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Some of the districts and governmental entities surveyed required their board members / elected officials pay the employee cost of their premium. More often than not, these governmental entities provided health insurance at no cost to their board members / elected officials. For a detailed review of how the governmental entities surveyed compensated board members / elected officials, please see the attached summary spreadsheet.

As an alternative to taking the district-provided health insurance, SLCSD does allow board members to receive $2,040 annually for a personal flexible spending account.

SLCSD provides dental insurance (individual and family coverage) to its board members at no cost to board members. This benefit is less typical of many Utah school districts -- probably because dental insurance is not provided to their employees. However, Salt Lake City, Salt Lake County, Utah State Board of Education, and the Utah State Legislature all provide dental insurance to their elected officials. Again, some of the districts and governmental entities surveyed required their board members / elected officials to pay the employee cost of their dental insurance premium. (Details included in the attached summary spreadsheet.)

Recommendation: SLCSD board members receive generous health and dental insurance, consistent with many Salt Lake County school districts, large Utah school districts, and other non-school district elected officials. My recommendation is that the Salt Lake City School Board maintain their current practice of not charging board members for their health and dental insurance benefits.

Other Benefits:

I reviewed other benefits received by school board members and non-school district elected officials. These benefits included: participation in the Utah State Retirement System (URS) or 401K, mileage reimbursement, cell phone, personal computer device, home internet, and any other board member benefits as volunteered by the governmental entity. For a detailed review of the specific benefits provided to board members / elected officials, please see the attached summary spreadsheet.

In general, SLCSD provides these “Other Benefits” consistent with other school districts and governmental entities. SLCSD, most school districts, and the governmental entities surveyed do not participate in the URS or provide a 401K to their board members. However, Jordan School District, Salt Lake City, Salt Lake County, and the Utah State Legislature all participate in the URS.

SLCSD, most school districts, and the governmental entities surveyed provide some form of mileage reimbursement for personal vehicle use when traveling to / from official school district / government business.

SLCSD does not provide a cell phone or offer reimbursement for personal cell phones and cell phone service. With a few exceptions (Canyons and Davis), most school districts do not provide a cell phone to their board members. Also, most school districts do not reimburse board members for their cell phone costs. However, Nebo does provide a $600 annual stipend to board members to compensate for cell phone use. Only Canyons, Davis, Salt Lake City, Salt Lake County, and the Utah State Legislature provide a cell phone or some form of cell phone reimbursement.

SLCSD provides a personal computer device to its board members. Most all school districts and governmental entities surveyed do as well.

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SLCSD does not reimburse board members for home internet costs. Reimbursement for home internet costs appears inconsistent among school districts and governmental entities. Overall, most entities do not provide home internet reimbursement.

As part of my survey with school districts and the governmental entities, I specifically asked them to volunteer other benefits not already requested. For the most part, there does not seem to be any significant benefits provided to board members / elected officials that are not already identified in this section. However, for further detail and explanation, please see the attached summary spreadsheet.

Recommendation: SLCSD board members receive the other benefits as described in this section consistent with their school district peers. I recommend no changes to these other benefits.

Conclusion:

Based on my review of other Salt Lake County school districts, large Utah school districts, and other non- school district elected officials, I recommend that the Salt Lake City School District:

1. increase their board Salary from $3,720 per year to at least $10,000 per year;

2. make no changes to the health and dental Insurance benefits provided to board members; and

3. make no changes to the Other Benefits provided to board members.

Should SLCSD increase board member salaries as recommended, I believe that any benefit inconsistencies with other districts and other governmental entities will be financially rectified by the salary increase.

If the SLCSD Board of Education formally considers a compensation increase, I would remind them of the requirements as outlined in Utah Code, Section 53A-3-202:

(2) Beginning on July 1, 2007, if a local school board decides to adopt or amend its board compensation schedules, the board shall set a time and place for a public hearing at which all interested persons shall be given an opportunity to be heard. (3) Notice of the time, place, and purpose of the meeting shall be provided at least seven days prior to the meeting by: (a) (i) publication at least once in a newspaper published the county where the school district is situated and generally circulated within the school district; and (ii) publication on the Utah Public Notice Website created in Section 63F-1-701; and (b) posting a notice; (i) at each school within the school district; (ii) in at least three other public places within the school district; and (iii) on the Internet in a manner that is easily accessible to citizens that use the Internet. (4) After the conclusion of the public hearing, the local school board may adopt or amend the board compensation schedules.

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Summary of Survey Results -- Comparison with Similar Governing Bodies November 27, 2017

Salt Lake City Alpine Canyons Davis Granite Jordan Murray Nebo Washington Weber Salt Lake City Salt Lake County School District School District School District School District School District School District School District School District School District School District Council Council USBE Utah State Board Member Board Member Board Member Board Member Board Member Board Member Board Member Board Member Board Member Board Member Member Member Member Legislator Question #: 1 Annual Individual Board Member (Elected Official) Base Pay 3,000 6,000 13,000 4,320 3,000 12,000 6,000 6,312 9,000 3,000 25,525 39,365 see note 12 16,380 Extra Meeting Pay 720 2,160 0 3,600 1,080 0 1,040 2,400 0 0 0 0 see note 14 Total Maximum Annual Salary 3,720 8,160 13,000 7,920 4,080 12,000 7,040 8,712 9,000 3,000 25,525 39,365 see note 12 16,380 see note 14

2 Health Insurance: (yes or no) - does the district provide individual coverage (yes or no) Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes annual cost to Board Member (Elected Official) 0 0 0 1,542 0 0 250 1,200 0 222 1,344 see note 15 see note 4 see note 7 see note 11

- does the district provide family coverage (yes or no) Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes annual cost to Board Member (Elected Official) 0 0 0 2,308 0 0 2,000 1,200 0 664 3,934 see note 15 see note 4 see note 7 see note 11

3 Dental Insurance - does the district provide individual coverage (yes or no) Yes No Yes Yes No No No No Yes Yes Yes Yes Yes Yes annual cost to Board Member (Elected Official) 0 0 214 0 0 463 137 - 175 see note 15

- does the district provide family coverage (yes or no) Yes No Yes Yes No No No No Yes Yes Yes Yes Yes Yes annual cost to Board Member (Elected Official) 0 0 471 0 0 1,220 264 see note 15

4 URS Pension (yes or no) No No No No No Yes No No No No Yes Yes No see note 16

5 401K Contributions (yes or no) No No No No No No No No No No Yes No No see note 16 - if Yes, cost to district see note 9

6 Mileage Reimbursement for Personal Vehicle (yes or no) Yes Yes No No Yes Yes No Yes Yes Yes No Yes, if requested Yes Yes - if Yes, reimbursement rate/mile 0.535 0.535 0.535 0.535 see note 5 0.480 0.535 0.535 0.535 0.535 any restrictions on reimbursable miles? D.O. to event No No IRS Rules see note 5 Yes No No Yes Yes for attendance at board (official) meetings? No Yes No No No Yes Yes Yes Yes

7 Cell Phone: - does the district provide a cell phone to board members (elected officials)? No No Yes Yes No No No No No No Yes Yes No Yes

- if Yes, does the district pay for personal calls? Yes Yes No Yes are there any usage restrictions? No No No

- if No, does the district reimburse a board member's (elected official's) purchase of a personal cell phone? (yes or no) No No No No No No No No No does the district reimburse a board member's (elected official's) district-related calls? (yes or no) No No No No No No No No see note 6 8 Personal Computer: - does the district provide a personal computer to board members (elected officials)? (yes or no) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes

- if Yes, laptop (yes or no) iPad or laptop iPad or laptop iPad No No No No laptop No laptop No laptop iPad (yes or no) iPad or laptop iPad or laptop laptop iPad iPad iPad iPad iPad iPad iPad iPad iPad No other computer device (yes or no) No No No No No No No No No No No No

- who owns equipment when replaced? BM can buy District District District District see note 3 District District District District not answered USBE State of Utah

9 Internet: - does the district pay for home internet? No Yes No Yes No No Yes No No No Yes No No No (if requested) 10 Do board members (elected officials) receive any other benefit or compensation? - if Yes, please list and describe Yes No No No No No No No No see note 8 see note 10 No Yes Yes see note 13 see note 17

Other Important Notes: see notes 1,2

- - - - - Notes: 1) SLCSD provides $20,000 of life insurance coverage. 2) SLCSD offers flex spending in lieu of insurance at $2,040/year. 3) Jordan allows BM leaving office to keep the device. 4) Nebo BM pays the amounts listed for the Traditional Plan. District HSA contributions are $2,000 for those on family coverage. 5) Nebo pays BM $600/year for in-district mileage and reimburses at the IRS rate for out-of-district mileage. 6) Nebo pays BM $600/year for cell phone use. 7) Washington BM pays the amounts listed for the Traditional Plan and pays $0/year for High Deductible plan on the Single or Family HD plan. 8) Weber pays BM $0.535/mile for non-board meeting business. Also, Weber pays BM $672/year for board meeting travel and incidental expenses. 9) Salt Lake City makes a 401K contribution of either 10% or 1.78% depending on election for defined contribution or defined benefit choice. 10) Salt Lake City provides tuition reimbursement. 11) Salt Lake County has no co-pay for the high deductible plan. 12) USBE did not report an annual salary. USBE members receive $273 per eligible meeting. 13) USBE members receive per diem and travel expenses as allowed by Utah Code 63A-3-106 and 107. 14) Legislators receive $273 per eligible meeting (about $16,380/year). 15) Legislator cost varies by plan. 16) Legislator participates in the URS if elected before 7/1/2011. If elected after 7/1/2011 they are eligible only for the 401K plan amounting to 10% of pay. 17) Legislators receive per diem and travel expenses as allowed by State law.