Pulaski County schools' superintendent signs contract, to earn $205,000

The School Board for the Pulaski County Special School District on Tuesday approved a three-year contract for Charles McNulty, who was selected by the board last week to be the district's new superintendent, effective July 1.

The board voted 6-0 for the agreement that provides a first-year salary of $205,000 and a $10,000 a year annuity for McNulty during a lengthy meeting in which the board also:

• Rejected administrative proposals for the 2018-19 school year that reduce district contributions to employee benefits and freeze step increases paid to eligible employees for their additional year of work experience.

• Listened to options for the possible issuing of second lien bonds to raise as much as $20 million to cover capital expenses such as construction, equipment and bus purchases. Second-lien bonds are financed with money generated by existing debt service tax mills in the school system and do not require a vote of the public.

• Voted to put an immediate freeze on the the hiring of all central office personnel.

• Directed the district's executive director of human resources to consult with McNulty to present staff allocations for the coming school year that will avoid hiring new certified and support staff.

• Set a special board meeting for 5 p.m. April 19 to consider revised staffing allocation proposals.

McNulty, 55, is the current assistant superintendent for educational services in the Waterloo, Iowa, Community School District. He will replace Superintendent Jerry Guess as the chief executive in the Pulaski County Special District. Guess, who earned an annual salary of $215,000, was fired last July in a dispute with the board over the district's lawyers.

Janice Warren, the district's assistant superintendent for equity and pupil services/director of elementary education, has been serving as the interim superintendent. She applied for the permanent superintendent's job but was not among the three applicants the board picked to interview for the job, to the dismay of some employee and community leaders.

McNulty's contract, which he signed before the School Board vote, calls for his annual salary to be increased annually by the sum of the increase in the base salary schedule for any employee group in the district, if any, and an amount equal to the experience step awarded to the district's certified personnel.

The contract provides moving expenses of up to $7,500, up to $2,400 for professional development and civic activities, and reimbursement of travel expenses, including a reimbursement rate of 42 cents a mile.

The contract includes a clause calling for incentive payments for the superintendent.

"The parties shall memorialize by supplemental or separate agreement an incentive payment plan based on the achievement of mutually agreed goals," the contract states.

If the School Board terminates the contract without cause, the district would continue to pay the superintendent for the next 12 months unless the superintendent had fewer than 12 months left on the agreement. In that case, he would be paid for the remaining months.

Denise Palmer, the district's chief financial officer, proposed to the board the cuts to contributions to employee benefits and freezing the 1.2 percent experience step increases as a way to avoid drawing as much as $7.6 million next school year from the district's $17.2 million in reserves. Drawing on school school district savings can result in a school district being identified by the state as a district in fiscal distress or at least in need of early intervention.

The proposal failed for lack of a motion by the School Board.

"I'm opposed to cutting steps or reducing benefits. I'm not happy with these options," School Board President Linda Remele said.

Board member Alicia Gillen said she wouldn't be able to sleep at night if such proposals were enacted, that teachers are a priority and that the district must look at issuing second lien bonds and even asking voters for a property tax increase.

Palmer said the district does have time to find options before the district submits its annual budget to the state Department of Education in September. She said transferring some $7 million from the district's $13 million building fund is a possibility.

Jack Truemper of Stephens Inc., a financial adviser to the district, presented information on the increase in annual debt payments the district would have in the event it issued varying amounts of bonds.

The district is projected to have revenue of $123 million in 2018-19 and expenditures of $130 million, according to Palmer's figures.

Metro on 04/11/2018

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