BUSINESS ADMINISTRATION 440 East 100 South Salt Lake City, Utah 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. November 27, 2017 1 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 Weber School District (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. November 27, 2017 2 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. November 27, 2017 3 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. November 27, 2017 4 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.