Following Superintendent Alan Nishino's lead, Assistant Superintendent of Educational Services Michael Johnson effectively announced his resignation during a school board meeting Monday night.
Both employment contracts ended June 30. Their interim contracts began July 1. Nishino will stay on through Aug. 30, while Johnson will stay on through Sept. 30. Both will be paid the maximum allowable while still collecting state retirement, $30,500 for each contract.
The cost of paying Nishino and Johnson an interim salary, plus hiring search firm The Cosca Group at $21,300, is cheaper than if Nishino and Johnson continued to collect their salaries and benefits written into their contracts for the coming two and three months, respectively, district officials said.
The interim contacts were approved by the board in a 4-1 vote, with Trustee Shelle Thomas voting no. Thomas said she would have preferred letting Nishino's remaining leadership team, led by Deputy Superintendent Bonnie Tognazzini, step in.
"From my perspective, economically ... We got through this before without having an interim superintendent step in. With the times we have now, without knowing how much money we have here, ($61,000) plays an important role," Thomas said, referring to the interim contracts.
The rest of the attending board disagreed with Thomas. Trustee Peter Mandel chided her, saying she was "building a straw man" argument in which if the trustees approved the interim contracts they must then believe that there aren't talented district administrators.
"There are lots of people who are very, very talented in our district. For you to insinuate (that we don't think so) is insulting and unprofessional in my mind. I want to provide as much continuity as possible, and we should not be taking all of the work of these two people and adding it to our district," Mandel said.
Thomas's motion to separate the agenda items, with a vote accepting the retirement of Nishino and another vote approving his interim contract, hung in the thick air and died without a second. Thomas made the same motion for Johnson's retirement and interim contract, and again it fell on deaf ears.
"You don't have the will of the board behind you," Mandel continued. "Which I find also to be ... It's not the most positive way to address people ending their careers. I'm disappointed."
Thomas replied that it wasn't a question of whether the board values or devalues its outgoing or remaining staff, but about the economy.
"We're going to be seeing terrible cuts, and it has to start from the top," Thomas said. "We have to ask what can we afford and what can we not afford?"
Trustee Mike Hickey commended Nishino for retiring and therefore forgoing his near-automatic 3-percent pay increase.
"He could have said 'I'm retiring in two weeks,' in August," Hickey said.
By not paying Nishino a fifth consecutive annual raise, the district saves $1,030 for the two interim months.
While Thomas's peers disagreed with her, her views were shared by representatives of both the district's labor unions.
"Earlier in the spring, (the Morgan Hill Federation of Teachers) advocated for a cut in Educational Services," newly elected Federation President Theresa Sage said. "They did not have a cut, and with an interim (assistant superintendent), they still do not have a cut."
Sage said the district pays Deputy Superintendent Bonnie Tognazzini to be second in command, and with her 17 years' experience in Morgan Hill Unified, she could have easily filled in.
"She is fair and cares about kids, she's involved in many aspects of the district," Sage said. "She is fully capable to help to manage the district until we get a new superintendent."
SEIU President Pam Torrisi said classified employees, whom SEIU represents, have been coming up to her regularly, asking, "Why are they spending this money and laying us off? Couldn't they save this money and save a job?"
Torrisi pointed out that classified employees have seen the most layoffs during the past two years of budget cuts, and union members expect more layoffs on the way as news on state education funding worsens. She lamented the lost opportunity at district office savings in the retirement of the two top officials and wondered whether their interim contracts could have saved the job of a custodian or aide.
Board President Don Moody, who was absent Monday night, said he was a little surprised that the interim contracts were accepted without discussion, after The Cosca Group officials had told the group that they wouldn't have a new superintendent until after their interim contracts ended.
"That's a discussion that I thought was going to take place. That was the premise, that they needed to be there to overlap. It made sense to overlap and we agreed to that. Once we knew there wasn't going to be any overlap, Michael could leave and come back. That's something we could certainly do. We still could be faced with that."
Still, Moody said Nishino isn't sitting on his hands.
"There are some things to clean up and get in order," he said.
Trustee Kathy Sullivan said she was grateful to have the two stay on a bit longer.
"With things changing from Sacramento almost daily, I want (Tognazzini) concentrating fully on what she's done very well, helping manage the financials of the district. This isn't the time for her to have her duties divided," Sullivan said.
The district comes up ahead financially with the two interim contracts, when compared with how much it would cost to keep Nishino and Johnson as employees for two and three months, respectively. In addition to not paying Nishino a raise, the district saves on a medley of monthly allowances afforded Nishino, totaling $4,500 for the two months. The district will no longer contribute to his retirement fund either, saving $3,220.
The district will also not pay statutory costs, like unemployment and disability, totaling $5,166.67, and Nishino's pay - other than the raise that wasn't given - was effectively reduced by $3,846.50. All told, paying Nishino an interim rate will save the district $18,180.24.
One area where the district won't save is on Nishino's health benefits. His contract stipulates that upon his retirement the district will continue to pay up to $500 per month in health benefits until he turns 65. Nishino turned 63 in early June.
Johnson's interim contract is $14,371 less than the cost to keep him on as an employee, with savings coming from reduced pay ($3,715), retirement funds ($3,220), health benefits ($2,250) and statutory costs ($5,000).
The district contracted with The Cosca Group for $21,300. The employee savings are more than $10,000 more than the cost to hire the search firm.
By the Numbers:
Nishino savings:
Reduced pay: $4,263
No 3% salary increase: $1.030
Retirement fund: $3,220
Health: (district still pays)
Statutory costs: $5,167
Professional development: $600
Professional competence: $1,950
Auto expenses: $1,950
Total: $18,180
Johnson savings:
Reduced pay: $3,965
Retirement fund: $3,156
Health: $2,250
Statutory costs: $5,000
Total: $14,371
Natalie Everett
Natalie Everett Natalie Everett is the education and city reporter for The Times. Reach her at (408) 779-4106, ext. 201, or neverett@morganhilltimes.com.
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