Craig Harris

The Republic | azcentral.com

Maricopa County Community College District execs get massages, spending and vehicle allowances

Perks for MCCCD executives increase despite recent state funding cuts and student tuition hikes

Maricopa County Community College District students have been hit with three tuition hikes since 2012, but that hasn't stopped top system administrators from enjoying increasingly costly perks including deep-tissue massages at a four-star resort, unrestricted spending allowances of up to $32,500 a year, and vehicle stipends large enough to buy a new car annually, records obtained by The Arizona Republic show.

Two MCCCD Governing Board members said they were shocked to learn of the perks. The district's interim chancellor acknowledged more transparency in spending is now needed. However, a district spokesman said the executive benefits and pay are in line with other major junior colleges around the country and are needed to recruit and retain high-level executives.

Documents obtained by The Republic under the Arizona Public Records Law show:

Recently retired Chancellor Rufus Glasper's $408,017 compensation package included at least $55,000 in special allowances in 2015. That included a $32,500 spending or discretionary allowance and a $22,400 auto allowance. Glasper, who retired Feb. 29, previously negotiated his benefits and approved those of his management team. He declined to be interviewed.

That included a $32,500 spending or discretionary allowance and a $22,400 auto allowance. Glasper, who retired Feb. 29, previously negotiated his benefits and approved those of his management team. He declined to be interviewed. At least 19 district executives were given spending allowances of $800 to $32,500 last year. Thirteen had allowances of $9,600 each, and 12 had their allowances roughly tripled since 2012. The largest allowance was provided to Glasper. There are no restrictions on how the funds are spent. A spokesman said Glasper used his allowance to make charitable contributions to other organizations where he's also a board member, and that other executives use allowances for entertainment on behalf of MCCCD. No receipts are required or available to show how Glasper or others spent the money.

Thirteen had allowances of $9,600 each, and 12 had their allowances roughly tripled since 2012. The largest allowance was provided to Glasper. There are no restrictions on how the funds are spent. A spokesman said Glasper used his allowance to make charitable contributions to other organizations where he's also a board member, and that other executives use allowances for entertainment on behalf of MCCCD. No receipts are required or available to show how Glasper or others spent the money. At least 18 executives were given vehicle allowances ranging from $800 to $22,400 last year. Fourteen of those had car allowances of $18,000 each, with 11 of those having been raised 76 percent since 2012, when the allowance was $10,200 apiece. A spokesman said the district's 10 community colleges stretch across Maricopa County, and executives spend a lot of time on the road. He added that executives use their vehicle allowances to attend speaking engagements and to raise money for the system.

Fourteen of those had car allowances of $18,000 each, with 11 of those having been raised 76 percent since 2012, when the allowance was $10,200 apiece. A spokesman said the district's 10 community colleges stretch across Maricopa County, and executives spend a lot of time on the road. He added that executives use their vehicle allowances to attend speaking engagements and to raise money for the system. Three executives used their $2,000 executive "wellness benefit allowance" for massages. Each of the three is paid at least $198,000 a year. One college president, who made at least $222,300 last year, received massages for $140 each at Red Door Spa at the Wigwam, a four-star resort. The stress relief and health-services program is part of their compensation package.

District spokesman Tom Gariepy said the car and spending allowances are part of the executives' taxable income, to be used however the recipients choose, and part of the total compensation package.

Between 2012 (when executive perks began to significantly increase) and fall 2016, when new tuition rates take effect, resident tuition will have increased 13 percent. That's roughly three times the rate of inflation. Tuition was raised three times, from $76 per credit to $86 per credit, over that period.

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New executive vows change

Interim Chancellor Maria Harper-Marinick issued a statement pledging transparency in response to The Republic's investigation. Last year, she received a $15,600 spending account that required no receipts.

In her statement, Harper-Marinick she said it would be her practice now to document all spending she incurs through her discretionary allowance, and she will encourage other district executives to do the same.

"When a new permanent chancellor is named, I will recommend that in the next contract provided to executives, the various types of compensation be more clearly defined, to produce a system that is more transparent," Harper-Marinick's statement said.

She declined through a spokesman to be interviewed.

'Holy mackerel!'

Governing Board President Alfredo Gutierrez said the system provides competitive compensation packages to retain executives and to attract a new chancellor. He initially told The Republic that executives had to turn in receipts for their spending accounts. After subsequent inquiries, he acknowledged they did not, and said the board might need to revisit its policy of giving five-figure spending allowances that require no receipts or documentation.

Gutierrez said executives are expected to use those funds to enhance the college system, but there is no actual requirement.

Other governing board members were taken aback by the perks — especially $140 massage sessions.

"This is beyond my belief," said John Heep, one of the seven volunteer board members. "Holy mackerel!"

Jean McGrath, another board member, accused district officials of regularly withholding budget information such as executive perks from the governing board. She called the perks wasteful spending.

But Gariepy said no information is withheld from the board. He defended the benefits, saying they attract highly qualified executives to run the 242,194-student system of 10 colleges and two skills centers. After several years of waning state funding, the system lost all state budget support last year and must fund itself.

Massages are covered under a $2,000-a-year executive package that can be used for healthy lifestyle coaching, weight reduction and other stress-management programs. Massages increase immune functions and improve posture and circulation, he said.

Is this the norm?

Gariepy said the benefits are in line with total compensation paid to administrators at peer institutions, which are among the country's largest community-college systems.

The compensation remains below that of Arizona's four-year university presidents. For example, Arizona State University President Michael Crow's total compensation is roughly $900,000, including base salary of $600,000, a housing allowance of $70,000 and a car allowance of $10,000. The rest is made up of pension and retirement benefits and compensation by the ASU Foundation.

University of Arizona President Ann Weaver Hart's base salary is $500,000, and Northern Arizona University President Rita Cheng's is $390,000. Both draw housing and car allowances of the same value as Crow's.

However, surveys by two outside sources suggest MCCCD executives are among the highest paid for U.S. junior colleges.

District officials are sensitive to comparisons between the perks and tuition increases and state funding cuts enacted since 2012.

"We have raised tuition, and we have done it for very good reasons," Gutierrez said. "It's silly to say we are gouging students."

Gutierrez said even with the tuition increases, MCCCD is one of the least expensive junior college systems in the country.

But critics of such perks suggest they are deceptive. Kevin McCarthy, president of the Arizona Tax Research Association, said they often are used to hide large pay raises.

"It really undermines the public's confidence in government when they see people getting these kinds of benefit packages, especially if they are getting massages," McCarthy said.

McCarthy said research he has reviewed shows compensation for MCCCD executives is among the highest in the country.

Getting a true comparison for executive compensation at community colleges is challenging because of the way perks are counted. For example, The Chronicle of Higher Education, which tracks compensation for college executives around the country, reported late last year that Glasper's total compensation in 2014 was $273,508. District records obtained by The Republic show Glasper's base pay, auto and spending allowances totaled $328,408 that year. It exceeded $400,000 this year, when other perks such as cellphone and iPad allowances, and life insurance coverage, are included.

The American Association of Community Colleges found that in 2012, the median total compensation for junior college presidents/CEOs across the U.S. was $177,462. Compensation (base pay, auto, cellphone and spending allowances) for presidents of community colleges within the Maricopa County system that year ranged from $185,711 to $217,883.