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April 2, 2007
REWARDING JOBS: 'Gold-Plated Benefits' Might Be Enticement To A Career
By Jan Murphy Of The Patriot-News, Harrisburg, Pa
Monday, April 02, 2007
Not too many people earn six figures, but the $100,000 club in state government isn't as exclusive as you might think.
A Patriot-News survey in March found that 3,042 people in state government are pulling in those kinds of salaries.
Topping the list of 106,875 state government employees is State System of Higher Education Chancellor Judy Hample, with a
$327,718 salary.
Second is Pennsylvania Higher Education Assistance Agency President and CEO Dick Willey. His base salary is $289,118,
although he is eligible for a performance bonus of up to 60 percent of that figure.
Officials from both agencies say their executives' pay is less than what their peers make.
In Hample's case, a State System official pointed out that her salary falls well below the $374,846 median compensation earned
by heads of public university systems across the country. Hample, who oversees the 14 universities in the state system, refused
to comment for this story.
Willey has cited the extraordinary earnings of the agency's student loan business, its operating efficiencies and business
achievements as the rationale behind PHEAA's pay for top executives. Five PHEAA executives are among the 10 highest-paid
state employees. The agency's employees are paid from its loan business earnings, which are public funds.
Willey said studies show his pay is in the bottom quarter among what he and his peers and competitors in the student loan
industry are paid.
"I'm not way up there. I kind of way down there in terms of the people that are ... my peers," he said during an appearance on
WITF-TV's "Smart Talk."
That justification doesn't fly with state Sen. John Eichelberger, R-Blair, a former Blair County commissioner who recalls
county employees using that argument for a raise.
"You reach a point where you say, 'Sorry, this is government. This is what our situation is financially, and there are only so
many dollars. We know you can do more in the private sector, so we wish you well,'" Eichelberger said.
State workers enjoy the benefit of knowing their paychecks won't bounce and their workplaces won't shut down, said James
Fossett, a professor of public administration at the State University of New York-Albany.
But there is logic behind the need to keep government salaries competitive with those of the private sector.
"Government is doing a lot of things organizationally that are just as complicated as anything that goes on in the private
sector," Fossett said. "You want the person representing the taxpayer to be just as smart and competent as the company trying
to sell them something."
With government jobs, though, salary is only a piece of the compensation package, said Matthew Brouillette of The
Commonwealth Foundation, a conservative-leaning policy center in Harrisburg.
These jobs also come with "gold-plated benefits that their private-sector counterparts can only dream of," he said.
Among them are health benefits, vacation time and pensions that generally far exceed what private companies offer, Brouillette
said.
On the other hand, Fossett said, private companies offer benefits such as stock options that government can't, so that argument
becomes a wash.
But lost in all of the discussion is the intangible reward behind government work, said Barry Kauffman, executive director of
Common Cause Pennsylvania, a government watchdog group. It's not only about making money but playing a role in making
society a better place.
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REWARDING JOBS: 'Gold-Plated Benefits' Might Be Enticement To A Career
By Jan Murphy Of The Patriot-News, Harrisburg, Pa
Monday, April 02, 2007
He recalled comments by former Gov. William Scranton, who scolded "people for abusing the public trust and expecting large
salaries" from state government work.
"We need people ... who come in from the outside, do their public service and leave, and less that want to make a career out of
state government," he said.
He and Kauffman commented on the disparity that exists across state government. Both said they, like many people, would
expect Gov. Ed Rendell to fall somewhere in the top 10 of the highest state government salaries.
"This is the only organizational structure I've ever heard of where the CEO makes less than his subordinates," said Charles
Ardo, a Rendell spokesman.
The disparity exists in the Legislature as well, where staffers earn more than their elected bosses.
"Equity is a big thing in the workplace," Eichelberger said. "It's not always about ethnicity or gender but also political pull and
who can get somebody a raise and who can't. I don't think it's a good way to do business."
"The whole salary and compensation structure in state government is in dire need of a very serious review," Kauffman said.
With so many state government employees earning six figures, Brouillette said, "It's no coincidence it's expensive to the
taxpayers as a result ... and why the cost of government in Pennsylvania continues to skyrocket."
Staff writer Garry Lenton contributed to this report. JAN MURPHY: 232-0668 or jmurphy@patriot-news.com
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REWARDING JOBS: 'Gold-Plated Benefits' Might Be Enticement To A Career
By Jan Murphy Of The Patriot-News, Harrisburg, Pa
Monday, April 02, 2007
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REWARDING JOBS: 'Gold-Plated Benefits' Might Be Enticement To A Career
By Jan Murphy Of The Patriot-News, Harrisburg, Pa
Monday, April 02, 2007
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REWARDING JOBS: 'Gold-Plated Benefits' Might Be Enticement To A Career
By Jan Murphy Of The Patriot-News, Harrisburg, Pa
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REWARDING JOBS: 'Gold-Plated Benefits' Might Be Enticement To A Career
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REWARDING JOBS: 'Gold-Plated Benefits' Might Be Enticement To A Career
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REWARDING JOBS: 'Gold-Plated Benefits' Might Be Enticement To A Career
By Jan Murphy Of The Patriot-News, Harrisburg, Pa
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REWARDING JOBS: 'Gold-Plated Benefits' Might Be Enticement To A Career
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By Jan Murphy Of The Patriot-News, Harrisburg, Pa
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REWARDING JOBS: 'Gold-Plated Benefits' Might Be Enticement To A Career
By Jan Murphy Of The Patriot-News, Harrisburg, Pa
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By Jan Murphy Of The Patriot-News, Harrisburg, Pa
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ABOUT THIS STORY
The Patriot-News sent surveys to dozens of state agencies asking for information on their top-paid employees.
There is no central source for the information. Sen. Dominic Pileggi, R-Chester, is proposing a bill that would
require the state treasurer to post all state employees' salaries on the Internet and update them monthly.
"People are paid with taxpayer dollars," he said. "Public employees and public officials should understand their
compensation is publicly available."
That survey tallied 1,176 state employees who were earning six figures. However, the last survey reflected only base
salaries paid to State System of Higher Education employees.
This time, the system provided gross salaries, which more accurately reflect their earnings, particularly of professors
who get extra pay for teaching summer school classes and supervising internships.
THE MYSTERY CONTINUES
In looking at the list of state government's top salaries, folks invariably will be looking to see where Penn State's
head football coach Joe Paterno ranks.
Penn State, like the University of Pittsburgh and Temple and Lincoln universities, and the state's community
colleges do not release individual salaries because they are not covered by the state's Open Records Act.
That could change. State Senate Majority Leader Dominic Pileggi, R-Chester, on Friday introduced legislation to
amend that law to include those institutions.
"This is part of our continuing push to make government at all levels more transparent and responsive," Pileggi said.
Paterno and other Penn State employees' salaries could be revealed as a result of a lawsuit The Patriot-News has
filed seeking his salary -- and those of other university administrators -- from the State Employees' Retirement
System.
The newspaper requested the information from the retirement system in 2002. The retirement board has not released
it, awaiting direction from the court. The court battle is pending before the state Supreme Court.
Penn State doesn't release information on individual salaries, said Stephen MacCarthy, vice president for university
affairs. One reason is that the school believes its employees have a right to privacy about their salaries.
Secondly, he said, "It's not a good business practice. We're in a competitive marketplace for faculty."
TOP 10 SALARY LISTS
The Patriot-News, Harrisburg, PA
Monday, April 02, 2007
2. Richard Willey, Pennsylvania Higher Education Assistance Agency president and CEO: $289,118
4. Peter Gilbert, State Employes' Retirement System chief investment officer: $229,380
6. Brian Lecher, Pennsylvania Higher Education Assistance Agency executive vice president for information technology:
$217,757
6. James Preston, Pennsylvania Higher Education Assistance Agency executive vice president for marketing & client services:
$217,757
6. Timothy Guenther, Pennsylvania Higher Education Assistance Agency executive vice president & chief financial officer:
$217,757
10. Kelly Logan, Pennsylvania Higher Education Assistance Agency executive vice president for public service & marketing:
$201,178
Agencies With The Highest Number Of Employees With Salaries Of $100K Or More*
Corrections -- 68
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TOP 10 SALARY LISTS
The Patriot-News, Harrisburg, PA
Monday, April 02, 2007
John Kemp, acting deputy state treasurer for investments and programs: $123,287
Susan Schwab, acting deputy state treasurer for administration: $123,287 Peter Smith, deputy state treasurer for audits &
investigations: $123,287
Keith Welks, acting deputy state treasurer for fiscal operations: $123,287
Sandra Williams, acting executive director of communications & legislative affairs -- $112,783
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TOP 10 SALARY LISTS
The Patriot-News, Harrisburg, PA
Monday, April 02, 2007
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TOP 10 SALARY LISTS
The Patriot-News, Harrisburg, PA
Monday, April 02, 2007
Timothy Guenther, executive vice president and chief financial officer -- $217,757
James Preston, executive vice president for client relations and loan operations division -- $217,757
Kelly Logan, executive vice president for public service and marketing, -- $201,178
Mary Miller, senior vice president for education services group -- $142,022
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TOP 10 SALARY LISTS
The Patriot-News, Harrisburg, PA
Monday, April 02, 2007
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