* We talked about the education budget a bit yesterday, but here’s a story that might knock your socks off. Schaumburg Township Elementary District 54 Assistant Superintendent Mohsin Dada has received three 22 percent pay raises during his contract and now makes $341,747 a year, which is $60,000 more than his boss…
Dada, who did not return phone calls seeking comment, is considered by the board to be the district’s chief financial officer and is retiring at the end of this year. He received those big raises in 2007, 2008 and 2009, which allowed him to nearly double his 2005 salary of $177,111 within six years.
Dada’s 2010 salary also made him the third highest paid public school employee in the state. […]
Board members believe they got a bargain in Dada.
“The reality is District 54 would not have had a balanced budget for the last 15 years without someone like Mohsin,” said board Secretary Karen Strykowski, who also noted she wasn’t on the board at the time Dada’s contract was negotiated. “This is the largest elementary school district in Illinois with over 2,000 employees and 14,000 students. In the private sector he would be making twice as much.”
* More on the House’s proposed education budget cuts…
A key reduction the panel endorsed calls for general state aid for all schools to be cut by about 4 percent, one lawmaker said. […]
The education foundation level, the figure viewed as the minimum amount of per-pupil spending, would remain flat at about $6,119, Davis said. If more money comes in later, the state could boost school spending, he added.
Transportation funds would rise to $294 million from the current $270 million, a level that had been considerably lower than in prior years, Davis said.
And early childhood education funding would drop to $325 million come July 1, which is about a 5 percent reduction, Davis said.
* Local impact…
In the Springfield School District, a 4 percent reduction in state aid would cost the district about $1.4 million, said spokesman Pete Sherman.
“We’re already considering cuts to break as even as possible for our next fiscal year’s budget while at the same time going through collective bargaining with our teachers and other union employees,” Sherman said. “It’s a very challenging time as it is.”
The proposed budget would increase transportation spending, but the total is still less than was spent two years ago and less than the state Board of Education recommended.
* Meanwhile, Rep. Rosemary Mulligan denied a Daily Northwestern report yesterday that Human Services would be cut by 10 percent across the board. According to the Tribune, the House is looking to cut $368 million from the current human services budget…
Major cuts in the proposal include about $181 million from state operations and about $186 million in cuts to grants, such as social services that go to private organizations in communities throughout the state, she said.
Even so, many of the cuts Gov. Pat Quinn proposed for community-based substance abuse and mental health programs would see some money restored for their programs, she said. That move would represent a nod to the notion that prevention and treatment saves money in the long run.
Programs Quinn put on the chopping block for senior citizens, such as the circuit breaker program, would fare better with the House plan, Feigenholtz said. Another program at least partially saved from elimination would be Illinois Cares RX, she said. The programs have provided property tax relief and assistance in paying for prescription drugs.
One additional cost-savings move would cut even deeper than Quinn proposed for programs that pay for Medicaid services provided by doctors, hospitals, nursing homes and pharmacies, she said.
* Charlie Wheeler has some pertinent comments…
Balancing the budget, however, means slashing spending in areas that require the most money, said Charlie Wheeler, a public affairs reporting professor at the University of Springfield in Illinois.
“(Human services) does not spend as much as Medicaid, but human services as a (whole) does indeed spend a lot of money,” said Wheeler. “If you want to save big bucks, you have to cut programs that cost big bucks. That’s sort of elementary.”
Human services accounts for about 36 percent of the entire House budget.
* The SJ-R has more on that study by the Commission on Government Forecasting and Accountability. COGFA looked at several spending and revenue scenarios over the next four years…
Only when spending was held flat would the state erase billions of red ink under the commission’s projections. However, that will prove difficult because of higher pension payments called for by a law designed to bring the systems to 90 percent funding by 2045, increased Medicaid costs and a desire by many lawmakers to spend more on items like education.
If the state spent $33.5 billion every year through fiscal year 2014, it would end up with a $3.5 billion operating budget surplus and a $2.1 billion overall surplus. The overall surplus is less because over the previous four fiscal years, the state would be gradually eliminating the $6.3 billion budget deficit it faced at the beginning of fiscal year 2011.
If spending increases were held to 2.7 percent annually, the state would still have an overall $3.4 billion deficit at the end of fiscal year 2014.
If spending were held to 4 percent increases each year, the state would have operating and overall deficits every year, including fiscal year 2012, which starts July 1.
* And then there’s this…
A state official warned that Illinois is at risk of losing at least $1 billion a year in federal Medicaid funds because of a legislative panel’s decision Tuesday on how senior citizens needing nursing-home care can shelter assets.
If not reversed, the decision by the Joint Committee on Administrative Rules could prompt the federal government to deny Illinois between $1 billion and $7 billion in Medicaid funds, according to James Parker, a deputy administrator at the Illinois Department of Healthcare and Family Services. […]
On a 10-0 vote, JCAR stopped HFS’ proposed rules from taking effect Tuesday. The commission sided with opponents- including elder-law lawyers and senior groups - who said the provisions would penalize seniors and went beyond what is required to implement the federal Deficit Reduction Act of 2005. […]
The law shrinks loopholes that allow seniors to transfer assets to family members and friends and still qualify for Medicaid. Illinois and California are the last two states working to enact rules.
* Related…
* U of I pay hike a possibility: Hogan said the raise would be something below 4 percent under the best scenario — a 1 percent to 3 percent cut in the UI’s appropriation and no major new costs associated with pension reform or changes in health benefits.
* VIDEO: Rep. Mulligan on human services budget cuts
* Homer Glen opposes revenue cut for towns
* Different fates for 2 IL charity hospitals
* Education Bill Fight Puts Spotlight on Union Chief
* Editorial: What we know about Illinois budget woes is discouraging
* Editorial: Disputed budget figures part of state’s problem
* Editorial: Botched operation
- Team America - Wednesday, May 11, 11 @ 8:48 am:
Mr. Dada’s school board believes he would be making $682,000 for a comparable job in the private sector? Who told them that? Mr. Dada? Maybe I’m just in the wrong line of work.
- Thoughts... - Wednesday, May 11, 11 @ 8:50 am:
That Dada guy could be a poster child for consolidation (reducing administration) and pension reform. I don’t know what his pension calculation is, but if it’s 80% of his final four-year average, quick back-of-the-notepad math says he’s looking at a $200k+ pension. Nice gig if you can get a complicit board.
- Aldyth - Wednesday, May 11, 11 @ 8:54 am:
This is just plain abusing the taxpayers. Paying an inflated salary up front and an inflated pension on the other side. No wonder taxpayers are fed up with How Things Work.
- Ghost - Wednesday, May 11, 11 @ 8:59 am:
There are mnay State agencies with 2000 or more people who have great fiscal people making closer to 100,000 a year. Dada original salary was a gross overpayment beofre he got the raises. You can hire plenty of very good fiscal people for less than 160k a year.
We have agency heads for far bigger operations the a mere 2000 employees making less then 160k a year, much less the absurdly high 300k+ salary.
Education budgets are way bloated. The majority of school districts have rainy day funds and bloated administartive salaries. Superintendents get far more then agency driectors for a lot less work and responsibility (they may work 12 months a year but having the schools closed for 3 months a year reduces the workload).
Lets find every rainy day fund and cut that distircts budget by the same amount, We are at the rainy day! Also, lets legsilatively cut superintendets and their assitants slaraies to 120k a year (these are ste by statute now), and remove the statutory automatics raises for the superintdents and their assitants.
There is a lot of money to cut from education, we just need to focus those cuts.
You could save millions just by reducing the superintendent and asst superintendent salaries across the State, without cutting a single dime from the classroom or the salaries of the teacherswho actually teach the kids.
- Small Town Liberal - Wednesday, May 11, 11 @ 9:02 am:
- Board members believe they got a bargain in Dada. -
Anyone still think giving more control of tax dollars to local governments will save money?
- OneMan - Wednesday, May 11, 11 @ 9:04 am:
Yet again I am reminded of what my grandfather once said.
Everyone else is overpaid and you are underpaid.
That being said, this dude is overpaid.
- OneMan - Wednesday, May 11, 11 @ 9:06 am:
Also it’s stuff like this that makes me think we should make local districts more responsible for pension costs.
- K3_Spfld_Chi - Wednesday, May 11, 11 @ 9:17 am:
Check out Dada’s website. It is a tribute to all things Dada.
http://mohsindada.com/
- Louis Howe - Wednesday, May 11, 11 @ 9:18 am:
PaGo and Ghost hit the main points. The doubling of salaries in the final four years is a scam perpetrated on taxpayers by complacent boards and by lack of legislative oversight. It’s common not only in government, but the private sector as well. It comes from a sense of entitlement. If someone is so special, then they should form a private business and get paid as an entrepreneur. Otherwise, they are bureaucrats and should be paid based upon reasonable equivalent replacement. There are many qualified financial managers available in the $100,000 to $150,000 range.
- Team America - Wednesday, May 11, 11 @ 9:24 am:
=== Check out Dada’s website. It is a tribute to all things Dada. ===
Wow, K3, you are not kidding. Maybe Dada and Burris should go one-on-one to decide who is truly the trailblazer. Winner gets to add the honor to his website or tombstone, as applicable.
- Plutocrat03 - Wednesday, May 11, 11 @ 9:38 am:
How many times have you heard the phrase that so and so is the best ‘insert job title’ in the state/world?
The clubby atmosphere that insinuates itself in the school boards is what generates this kind of nonsense. It becomes an echo chamber of self congratulation which results in the “person x’ is the best in the world, so we better throw a ton of someone else’s money at them.
- Objective Dem - Wednesday, May 11, 11 @ 9:41 am:
I wish the US Attorney or Attorney General would look into cases like these to see if any laws were broken. I’m sure they could come up with something is they look hard enough.
Additionally. the statehouse should pass laws that stop this blatant abuse of the system.
Most government employees work hard and deserve the pension they receive. Its people like Dada who give a bad name to all public employees.
- Rich Miller - Wednesday, May 11, 11 @ 9:50 am:
===I’m sure they could come up with something is they look hard enough. ===
Yeah, OK. Do you have any reason to believe that in this particular case or are you just bloviating? Calling the coppers is serious business. It shouldn’t be tossed around every time you disagree with something. Take a breath.
- Colossus - Wednesday, May 11, 11 @ 9:50 am:
Anyone else notice what the hover caption on every single photo on http://mohsindada.com/ reads?
Go ahead, guess…
- Former State Employee - Wednesday, May 11, 11 @ 9:51 am:
Amazing…..I just checked out Dada’s website. Can we say “totally full of himself”. Although, with the big bucks he is draging down, he may want to class up the graphics abit. Again, wow, what a rip off!!
- soccermom - Wednesday, May 11, 11 @ 10:05 am:
I am so tired of the “that’s half what they would make in the private sector” nonsense. A) No they wouldn’t. B) Working in the private sector is very, very different.
I have worked in both, by the way.
- Irish - Wednesday, May 11, 11 @ 10:10 am:
I hope the taxpayers of this District are aware that THEY are on the hook for any payments to Mr. Dada over 6% increase /year. In 2005 the state passed a law that any bump given to school district staff that exceeded 6% the school district had to cover. They are on the hook for anything over the 6% bump each year and any associated pension payments that are generated by the amount over 6%.
- wordslinger - Wednesday, May 11, 11 @ 10:13 am:
That Dada must be a Jedi Knight or one smooth talker, because he has his board mesmerized.
“My salary is a bargain.”
“His salary is a bargain.”
“I could make twice as much in the private sector.”
“He could make twice as much in the private sector.”
- UIS Professor - Wednesday, May 11, 11 @ 10:22 am:
4% at UI???? It won’t happen at UIS….
- TwoFeetThick - Wednesday, May 11, 11 @ 10:26 am:
Not to defend what’s obviously a golden parachute unfurling but, according to the district’s report card from the State Board of Education, in 2010 the district had revenues of $183.9 million, and expenditures of $177.7 million. What does the CFO of a similarly-sized private company make annually? I don’t know and I’m sure it varies by company, but I’m guessing it’s more than $341,747/year.
- PaGo - Wednesday, May 11, 11 @ 10:30 am:
@word-that was very funny!
@oneman-when I told my Dad about how the Capitol Police sleep and read books at my building, telling him what his salary was and what mine was, my Dad told me the same thing, WORD FOR WORD. Just and FYI and BTW, take whatever issue you want with what I just described, MY issue was the how he was being paid WAY TOO MUCH in comparison to what I made. Oh well, life.
The school districts needs some serious oversight into what their administrators are doing and what they are being paid to do. No wonder public school teachers get so damn frustrated.
- walkinfool - Wednesday, May 11, 11 @ 10:49 am:
Most in the education administrator world are living in an alternate universe, when it comes to salary perceptions. Having been in worldwide corporations, or my own companies for over 30 years, I believe that most senior administrators would earn less, not more, for comparable jobs in the private sector. These education administrators are an outlyer, however.
There have been around 30 peer-reviewed studies about government employee compensation overall; and most found that average gov salaries/bonuses are significantly lower than for private sector comparables, but are roughly equal (-6% to +5%, if my memory serves) when you factor in all benefits including pensions. Of course this assumes no fraud, double-dipping, ghost payrolls, etc.
- aaronsinger - Wednesday, May 11, 11 @ 11:01 am:
Disgusting. Consolidation needs to happen, yesterday. So much waste and redundancy. Skokie, for example, does not need 6 school districts for a village of 60,000.
- Cincinnatus - Wednesday, May 11, 11 @ 11:08 am:
These salaries, and their resultant pensions, while disgusting are totally understandable when part of the pension is not funded fully by the localities. Imagine if the school district had to fund its own pension system without help from Willmette.
- Hwk330 - Wednesday, May 11, 11 @ 11:17 am:
If this Dada is such a great financial wizard then how does he justify the fact that D54 has granted three 22 percent pay raises to one of their highest paid employees recently - sounds like he is a horrible finanical advisor if he allowed this to happen under his watch… His recent raises alone amount to $12 per student in the district, and he’s just one employee…
- Hwk330 - Wednesday, May 11, 11 @ 11:22 am:
…and I bet many of the district teachers spend more than $12 per student out of their own pockets for supplies that the district claims it cannot afford. How did our society get here?
- Wensicia - Wednesday, May 11, 11 @ 11:28 am:
The claim that you would make double or more the pay in the private sector is bogus. If so, why did you take a job at far less pay to begin with? Are you stupid or is your Board of Education stupid for believing this crap?
- piling on - Wednesday, May 11, 11 @ 11:38 am:
Exhibit A in why local school boards should be responsible for pensions if they’re gonna have “responsibility” for setting pay.
- Yellow Dog Democrat - Wednesday, May 11, 11 @ 11:44 am:
Schaumburg has an EAV per pupil of $465,000 per pupil, compared to $210,000 per pupil for Chicago and $134,000 per pupil for Springfield.
I’m guessing that has a lot more to do with the state of Schaumburg’s finances than Mr. Dada.
BTW, we should check back on Mr. Dada in a year or so to find out what school district he’s working for after he “retires”.
- Pot calling kettle - Wednesday, May 11, 11 @ 11:46 am:
While I agree that this guy’s salary is too high, he’s one guy. If the system is to be indicted and slated for dramatic change, the data to look at is the aggregate of supervisory salaries for districts across the state and country.
A few questions to ask:
What salary ranges are reasonable for school administrators?
Based on those ranges, what portion of districts overpay?
What are the characteristics of districts that overpay?
If districts overpay, what drives the overpayment?
Answer these questions before writing legislation to fix a problem that may or may not exist. I serve on a school board, and we would have told this guy to enjoy his next job.
- Yellow Dog Democrat - Wednesday, May 11, 11 @ 12:46 pm:
@Pot:
1. He’s an ASSISTANT Superintendent of a medium-size school district, but the THIRD highest paid school official in Illinois.
2. He makes $60K more than his own boss.
3. He makes nearly TWICE what the governor makes.
4. I’m not saying he has pictures of school board members committing ungodly acts, but I’m not ruling it out either.
- Irish - Wednesday, May 11, 11 @ 12:54 pm:
Piling on - They are, for everything over a 6% increase per year and for all associated pension payments generated by anything over the 6%. This is going to cost this District a pretty penny. Of course if your financial advisor does not inform you of this………….
- Objective Dem - Wednesday, May 11, 11 @ 1:24 pm:
I wasn’t really bloviating about criminal charges. I don’t think this case is any different from other cases of School administrators jacking up their salary to get big pensions, but just because no one was charged in the past doesn’t make it legal(i.e., Robert Sorich).
Before last years US Supreme Court ruling, I would think a strong case could be made under the “Honest Services” law. I would think there are other similar statutes related to malfeasance of office and defrauding tax payers. Its not my job to know the statutes to use; that job belongs to US Attorney and Attorney General which is why I said they should look into it.
It is a more extreme example but the elected officials in Bell California who grossly overpaid themselves were criminally charged. Plus Attorney General Jerry Brown sued them for defrauding the taxpayers.
- 3 beers to Springfield - Wednesday, May 11, 11 @ 1:27 pm:
Doesn’t the 6% increase apply only to the last two years before an employee retires? Can someone verify this? If his raises were given in 07, 08 and 09, and he doesn’t retire until 2011, the State is on the hook for all of it.
- Ghost - Wednesday, May 11, 11 @ 1:51 pm:
TwoFeetThick you would be wrong. Many governement finacial people handle hundreds of milions for a fraction of the salary. Not to mention the federal financial heads.
He is the head fiscal person, he is not a CFO of a private company. He does not go out and set pricing models, wiegh in on revenue generation and product creation. He is a glorified accountant who balances tax revenue for a public entity.
- Palatine - Wednesday, May 11, 11 @ 1:56 pm:
In Palatine we threw the union supported board of education members out last election cylce in District 15. It can be done. Our voters expect our new board members to be very fiscally reponsible. Schaumburg voters should do the same. VOTE THEM OUT
- TwoFeetThick - Wednesday, May 11, 11 @ 2:37 pm:
Ghost, I’m not defending it, I’m simply noting (admittedly, without data to back it up) that the CFO of a private company (I know he’s not a CFO, but that’s the private sector equivalent of what he does, which nicely illustrates a problem with comparing public and private sector jobs - they’re just not the same) with revenues of that size likely makes more than $340K/year.
I’m against school administrators making this kind of pay, and I’m all for school consolidation (which would be and has been historically opposed by downstaters of both parties). I’m just saying that in many cases, the private sector manager of a decently-sized company makes more than the roughly-equivalent public sector manager. The State of Illinois has a 50-some-odd billion dollar/year budget. How many heads of a $50 billion company make what the governor is paid. None.
Now, as a downstater, I say let’s consolidate those downstate schools so we can save some real money!
(crickets)
- TwoFeetThick - Wednesday, May 11, 11 @ 2:49 pm:
Ugh, PUBLIC sector equivalent of what he does…
- TwoFeetThick - Wednesday, May 11, 11 @ 2:59 pm:
Double ugh! I said it correctly the first time. Time for another drink.
- Liandro - Wednesday, May 11, 11 @ 3:13 pm:
I’ve mentioned things like this but been told on this blog that it’s such a tiny thing as to not be worth mentioning. Now that we’re looking at an actual case study it’s all shock and outrage. What did you expect? No matter how supposedly small the abuse is it’s worth stamping out, imo. As mentioned above, it’s a taxpayer abuse and it gives hard-working public servants a bad rap.
- Yellow Dog Democrat - Wednesday, May 11, 11 @ 3:16 pm:
@Liandro -
You must be confused. Government unions are the problem, and this guy was not a union member, therefore he can’t be a problem.
- Small Town Liberal - Wednesday, May 11, 11 @ 3:20 pm:
- I’ve mentioned things like this but been told on this blog that it’s such a tiny thing as to not be worth mentioning. -
What things like this? Lots of people on this blog have been arguing that school administrators’ pay needs reduced.
- Pot calling kettle - Wednesday, May 11, 11 @ 3:26 pm:
@YDD
As I said: While I agree that this guy’s salary is too high, he’s one guy.
One guy.
If this is a pattern, it should be dealt with. But one overpaid guy is not a pattern. Some commenters have suggested overhauling the system based on one (or a few) overpaid people. I’m simply saying let’s see some data to have an idea if this guy represents an intrinsic problem or if he is an outlier. Outliers make good news, but they should not drive decisions.
- Cincinnatus - Wednesday, May 11, 11 @ 3:40 pm:
Notice not a single person on this list made it to 65…
http://media1.suntimes.com/multimedia/em205pension061710.pdf_20100616_18_34_18_41.imageContent
- Bigtwich - Wednesday, May 11, 11 @ 3:40 pm:
==It is a more extreme example but the elected officials in Bell California who grossly overpaid themselves ==
This guy did not give himself a raise. The School Board had to do that. If you can not tell the difference you should be more cautious about accusing people of crimes. You can accuse the School Board of stupidity.
- Objective Dem - Wednesday, May 11, 11 @ 4:29 pm:
Bigtwich,
The City Manager of Bell was not on the City Council and his salary was decided on by the Board. The one difference is the council was clearly profiting as well.
To say that because the School Board approved his pay no crime occurred is the same as saying because a city council approved a contract there was no contract fraud. I think more info is needed to understand why the School Board overlooked their responsibility and unnecessarily gave this guy a lot of money.
For instance, what information was presented to the School Board to make their decision. Did he mislead them? Did the Board benefit through a quid pro quo arrangement? For instance did he let them overspend on expense accounts? Did he hire relatives or give contracts to their friends?
I think it is too easy of an out to simply say the Board was stupid. Schaumburg is a big city with a sophisticated population. I don’t think the school board is a bunch of fools. So what was their motivation?
As I said before, I don’t know if any laws were broken but I think it is worth people elected/appointed to go after corruption to look into the case. I was a bit too glib with the statement that if they look hard enough they will find something but I do think it is worth an investigation.
- sue - Wednesday, May 11, 11 @ 4:32 pm:
there really needs to be legislation governing salaries paid to administrators employed by local school districts- throughout the state the administrators develop chummy relationships with the mopes we elect to school boards who approve the salaries- there is no accountability other then through elections where few participate and then these horrific compensation packages get handed off to TRS who gets stuck with lifetime inflated obligations- the idiot who said that the administrator in question would get double in the private sector is proof of the problem particularly since this administrator will be getting 70 percent of his salary plus three percent increases for life once he retires
- Cincinnatus - Wednesday, May 11, 11 @ 4:38 pm:
Sue said,
“there really needs to be legislation governing salaries paid to administrators employed by local school districts…”
Absolutely not! State sharing of local pension funding should be eliminated, so that local governments assume the full responsibility for their pay/pension packages. If local citizens want better accountability, let them demand it from their local officials, along with the transparency needed to accomplish it.
State officials can help by providing the straightforward ad fair framework for recalls (along with referenda and initiatives) of elected officials at all levels of government.
- Bigtwich - Wednesday, May 11, 11 @ 4:45 pm:
Objective Dem,
I have no problem if anybody wants to investigate and do not see a problem with calling for that, but at the moment I see no evidence of a crime. Some comments indicate that this behavior is not uncommon. All we have so far is stupid.
- sue - Wednesday, May 11, 11 @ 4:46 pm:
Cinnci- Governor Cuomo is proposing a 200K cap paid to school administrators- that may or may not be the right number but to the extent we can’t diminish pension benefits payable to existing people at least we can reign in the cost by limiting what is paid to the employees and attain the relief one way or the other- do you know what a lifetime obligation at 70 percent of 340k plus a cola of three percent is worth in this low interest environment- try 7 or 8 million
- Michelle Flaherty - Wednesday, May 11, 11 @ 4:46 pm:
Irish,
If you had a contract in place before the 6 percent cap went in place, you’re grandfathered in and the state picks it all up (up to 20 percent). I’m told this guy had a SEVEN year contract that predated the 6 percent limit and the 20 percent raises in the final years were part of that contract.
- Cincinnatus - Wednesday, May 11, 11 @ 5:02 pm:
sue,
I would contend that we need to push the true cost of education to the localities, and get it off the state ledger. If a city over promises, let them pay the price, and go bankrupt if they cannot meet their obligations. Bankruptcy is a check and balance on overspending and under-revenue, and is not afforded to state government.
- steve schnorf - Wednesday, May 11, 11 @ 7:43 pm:
the idea of a cap might make theoretical sense, but in practice it ignores the reality of the diversity of Illinois. First problem, paying too much in rural areas and too little in urban or very affluent areas. Next problem, capping administrators salaries will drive them into unions, where their right to negotiate their salaries is protected by law, third you will create scarcity and surplus of administrators, depending on how demanding the work is in a given district,…ad infinitum