Bonuses, perks common in AEA leaders' contracts

The Grant Wood Area Education Agency's board of directors wanted to keep Ron Fielder as chief administrator - and paid to make that happen.

Fielder's contract includes longevity pay, which nets Fielder money each month on top of his $178,630 salary. He receives $329 a month in fiscal 2010 and $2,867 a month in fiscal 2011 and 2012.

“The reason it starts low and builds high is we want to give an incentive for him to stay longer,” said James Green, board president. “We didn't want to lose him.”

The state employs 10 AEA chief administrators who each oversee a regional agency. While Fielder is the only chief administrator with longevity pay in his contract, he isn't alone in having a tailored contract.

Sheila King, interim chief administrator for Heartland AEA, receives a $50 monthly cell-phone stipend to “ensure availability at all times.” Great Prairie AEA Chief Administrator Joseph Crozier has a car for AEA business and is provided broadband Internet service in his home.

The Northwest AEA board of directors agreed to provide a car, plus fuel and insurance, for Tim Grieves for the extent of his contract. Connie Maxson of Green Valley AEA receives a $300 travel allowance each month.

These add-ons are on top of annuities, insurance benefits, and vacation and sick pay.

“It's a competitive market,” said Brent Siegrist, AEA's director of state services. “The chief administrators have the same qualifications as a school superintendent. They oversee a staff in which 75 to 80 percent of the employees have advanced degrees. They are providing services schools have to have.”

The administrators, most of whom are former school superintendents, are the CEO of the agency with school districts in the role of clients. Their salaries are determined by each agency's board of directors.

Grant Wood's Fielder had planned to use the agency's early-separation policy, which paid a bonus for some early retirements. It is being discontinued, however, and the longevity bonus replaces it.

Fielder's longevity payments will total what he would have received for early retirement - half his salary.

“It's cost-neutral to the agency,” Green said. “We knew what it would cost to replace him.”

The price tag for an executive search is about $30,000, and the person hired to replace Fielder would likely receive a higher salary, too.

“It's reacting to the market value,” said Siegrist.

AEAs were established by the 1974 Iowa Legislature to equalize education services among the state's public and accredited non-public schools. The regional service agencies provide school improvement services, including special education support, media and technology, and instructional services, including professional development.

AEAs lose millions in state budget cuts

Iowa's Area Education Agencies aren't immune to the state-mandated 10 percent budget cut.

AEA's are funded through the state in a separate stream from school districts. They lost $11.3 million total in state funds for special education services.

“Since we do not have taxing authority, this is an actual loss,” said Wayne Haddy, government relations specialist for AEA.

Regional agencies will cope with the loss using stimulus dollars and cutting spending. About 75 percent of the agencies' budgets are personnel expenses, but there won't be layoffs this year because of contracts.

Next year is questionable.

“We'll get through this year,” Haddy said. “It's the several years after that we're really concerned about.”

It may be inevitable.

“I don't see how anybody will avoid layoffs,” said Brent Siegrist, AEA's director of state services.

Two agencies, Green Valley and Loess Hills - both located in southwest Iowa - will merge at the end of the school year to form a new agency, Green Hills AEA. A new board of directors was recently elected. Board members interviewed candidates for a chief administrator this week, including Iowa City school Superintendent Lane Plugge.

Neither Connie Maxson, Green Valley AEA chief administrator, or Glenn Grove, Loess Hills AEA's chief administrator, are pursuing the position.The merger will save some administrative costs, but Siegrist said the money will be reinvested in services.

The merger was planned before Gov. Chet Culver announced the across-the-board budget cuts. AEAs have voluntarily merged in response to enrollment numbers and service demand since 2002, decreasing from 15 agencies to nine as of July 1, 2010.