The MATC Audit: Taxpayers Finance Salaries and Benefits Far Above
That of Average Citizens
Part 2 of a 3 Part Series
A comprehensive, self-funded review of the fiscal status of MATC has been conducted through a joint effort by the CRG Network and its affiliate the Greendale Taxpayers Group (GTG). The group consists of CPA’s, pension managers, managed care specialists, legal professionals, educators, and other concerned citizens. Financial records, employment contracts, collective bargaining agreements, business plans, budgets, health care plans, pension agreements, payroll records, and expense reports were obtained from MATC using the Wisconsin Open Record Laws. After extensive analysis of this information over a 60 day period, the findings are being relayed in multiple releases to the public to educate them of the fiscal decisions made by the unelected MATC Board of Directors and the elected government officials in the State of Wisconsin.
Unelected boards, special Interests equal outrageous pay and benefits
As reported in
Part 1 of this series,
board-approved MATC spending has far outpaced both the growth of per
capita income in the Greater Milwaukee Area and the Consumer Price
Index (CPI) since 1991 by a near 3 to 1 margin. The rate of spending
in excess of the CPI at MATC has resulted in $380 million of
additional taxes since 1991 for Greater Milwaukee Area property
taxpayers. When all sources of funding are considered, including
State and Federal taxes and student tuition/fees, approximately $800
million in excess costs above the CPI have been incurred.
This runaway spending has occurred despite both a decline in
full-time employees (FTE’s) from 1,484 in 1998/99 to 1,412 in
2006/07, and only a 2% increase in student enrollment over the last
10 years. (See Part 1).
With fewer employees on the payroll and very little growth in
student enrollment, how is our money to being spent? The
answer is that an unelected Milwaukee Area Technical College Board,
with no accountability to average voters and taxpayers, consistently
caters to the whims of special interests.
Two wage increases per year regardless of performance
Full and part-time faculty and paraprofessionals comprise the largest group of employees at MATC. They work under collective bargaining agreements. The most recent agreement, dated July 1, 2003 to June 30, 2006, illustrates how these groups of employees receive two wage increases per year. The teaching professionals’ salary schedule provides a 2.9% automatic increase each year regardless of competence or merit. In addition, there are 15 labor “steps” (0 to 14) for the teaching professional and 9 steps for the paraprofessional hourly wage earner. By simply completing a full year of employment, the employee automatically, again regardless of competence or merit, moves up a labor step, thereby qualifying him/her for the next increase, which amounts to 3-5% each year. Both increases are automatic. Neither is based on performance according to the contract.
It took a careful forensic review of the labor agreements and salary schedules to calculate the annual double wage increases for MATC employees, as it was not clearly articulated in writing. In essence, they receive an annual cost of living increase of 2.9% and a labor step increase of 3-5% each year, both amounting to 6-8% per year.
Source: Labor contracts 2003/06: Paraprofessional p. 23-29; Part-time faculty p. 21, 50-52; Full-time faculty p. 56, 89-91.
The average Milwaukee taxpayer does not receive automatic increases of ANY amount regardless of performance let alone a guaranteed 6-8%.
Tenure: If I make it three years just try to fire me!
Tenure is defined in academia as the position of having a formal secured position until retirement. MATC employees are tenured after 3 years. By contract, a tenured employee (an employee whose employment is continued after completion of a 3 year probationary period) shall not be disciplined, dismissed, suspended, discharged, or denied reappointment except for just cause.”
Source: 2003/06 Full-time faculty labor contract, p. 40.
Job security has little to do with job performance. In short, it is virtually impossible to fire a poorly performing teacher. As of late, it seems you cannot even fire a teacher caught accessing pornography on school computers (CLICK HERE to read Milwaukee Journal Sentinel story).
The average worker gets no such guarantee nor would they be reinstated after committing a violation such as accessing pornography in the workplace.
It pays well, VERY WELL, to be a faculty member at MATC
An
analysis of the ten highest paid faculty members for each of the last 5 years was analyzed. The average salary
(not including benefits) for this group in 2001/02 was $110,300
which increased 5.7% each year to $137,600 in 2005/06. For
comparison, the average salary for full-time faculty was $90,845 in
the latest year. That's $23,000 per year more than the average
professor at the University of Wisconsin, one of the nation's most
prestigious state schools. Note that most MATC teachers do not
have a doctorate, many do not have a Masters degree and some lack
even have a Bachelors degree.
Source: Milw. Journal/Sentinel 5/24/06.
Salaries for all of these highest paid faculty members were capped at the top labor step grade of 14 for all five years studied, yet upon calculation they received increases each year above and beyond the 2.9% cost of living increases. This is contrary to the provisions of the latest labor agreement which states that they should only receive the cost of living increase after reaching the highest labor grade of 14.
Source: MATC open records requests dated June 28, and July 20, 2006.
Over the last 5 years, salaries have increased by 5.7% per year for faculty at the top labor step grade versus an average of 6 to 8% for full and part time faculty as a whole. If the MATC Board is allowed to continue its philanthropic use of taxpayer money for lavish compensation, the current average salary of $90,845 for full-time faculty will grow to almost $180,000 within the next 10 years.
When do you suppose the average Milwaukee taxpayer will see six-figure incomes?
At MATC it even pays to be sick
All full-time teachers and para-professionals receive 15 days of sick leave credit per year, which can accumulate up to 150 days. After reaching 150 unused sick days during their careers, they then accumulate another 1/2 day for every unused sick day without any limit. Part-time teachers with at least a 50% teaching load, and para-professionals who work 20 or more hours per week, earn sick leave credit on a prorated basis. Senior administrators receive 18 days of sick leave credit per year. Unused sick days can be used for “personal illness or for personal and compelling reasons”. Upon retirement one-half of unused sick leave up to a maximum of 48 days is used to defer health care premiums with the balance paid in cash to the employee. In addition, faculty is allowed 5 days of professional leave each year with the approval of their supervisor.
Source: Collective bargaining agreements 2003-2006: Full/part-time paraprofessional pg. 43, Full-time/faculty pg. 62, 64, 65, 69.
Based on an average wage of $90,850 for a faculty member, cashing in on 150 sick days (less that which goes toward health care premiums) upon retirement would be comparable to receiving a $53,000 retirement bonus per employee at property taxpayer and student expense.
In the private sector, most employees do not receive payment for unused sick days upon retirement.
Become an MATC Teacher and take over 2/3 of the year off.
A school year at MATC is defined as having “162 student contact days and 6 non-contact days” or a total of 168 days of work compared to a total 239 work days for the average Milwaukee worker (365 days less weekends, 12 holidays, and two weeks of vacation) in a calendar year. Keep in mind the bulk of the difference is due to the fact that most teachers work only 9 months of the year. Furthermore, spending 32 hours per week on campus, which includes teaching, class preparation, department meetings, etc., is considered “full-time”. This is 20% less than an average worker who is expected to put in a 40 hour week (more for salaried workers). Pro-rating this factor means an MATC teacher is actually expected to work an equivalent of about 134 days per year. If the full allotment of sick days and professional leave is used, MATC teachers could end up putting in the equivalent of 114 days in a given year - that's less than 1/3 of the year. Want more? If a teacher is required to be on campus for more than their regularly-scheduled hours, they receive compensatory time off.
Source: Labor agreement 2003-2006: Full-time Faculty pg.11,12, 47.
Most Milwaukee area employees work 40 hours per week, year-round, almost twice the number of hours, for less than half the average pay of MATC teachers.
But what the heck, why not take THE WHOLE YEAR OFF!
Full-time employees who have worked 6 out of the 8 previous years, and who wish to continue their professional studies to “improve themselves as employees”, are eligible to submit a request for up to a 1 year sabbatical from their jobs with 60% pay and full benefits during their time away. The MATC President and Board must approve the request. Sabbatical leave is limited to 8 full-time teachers per year, and an unspecified number of full-time non-teaching employees. The employee must commit to returning to MATC upon completion of the sabbatical for at least 1 full year. Subsequent sabatticals may be taken when the employee works another 6 year stretch over subsequent 8 year periods.
Source: Faculty labor agreement 2003-2006 pg. 66, 67.
According to MATC, 20 sabbaticals have been granted since 2001/02. A sampling of the reasons given include: writing and publishing a children’s book, starting a business and using those experiences to create an entrepreneurial class, teaching, research, and writing while living in Norway, teaching as a volunteer in Mexico, beginning graduate studies as a full-time doctoral student, and completing 12 credits in Interior Design to meet professional requirements.
Source: Open record request 6/28, 7/20.
Sabbaticals given for educational advancement are established policy in many institutions of higher learning. However, in the real world, if an employee is allowed a sabbatical, it is without compensation. MATC increases employee wages upon completion of their educational accomplishments (professional certifications or degrees) and holds the employees’ jobs open without loss of seniority. That, in and of itself, is adequate compensation. Thus, payment of 60% of the employees’ salaries while on sabbatical is an egregious waste of property tax dollars.
Tomorrow, ask your boss if you can take next year off at 60% pay!
No news here. Government employees get Cadillac health care
All full-time teachers, operational employees, para-professional
employees, and public television staff receive health care coverage
with 100% of the insurance premiums paid by MATC. In the case of
part-time faculty and part-time para-professional employees (who
typically have coverage through another employer or family member),
MATC pays 40% of the premium for a single member policy.
Source: Labor Agreements 2003-2006: Para-professional pg.33, Full-time faculty pg. 57, Public Television staff pg.21, AFSCME pg. 28,29, Part-time faculty pg. 25.
One of the health care plans offered is known as the Humana Premier HMO, which has no deductibles or coinsurance costs. This plan also contains unlimited hospitalization, 100% coverage of skilled nursing home care, all private duty nursing care, and a $300 annual reimbursement for a personal trainer. The cost of this plan as of July, 2006, for an employee with one or more dependents is $18,000 per year. Health care costs at MATC have increased 40% over the past 3 years for active employees, totaling $20.5 million for the 2005/06 school year. MATC employees contribute only 2% of this cost, with taxpayers paying the balance.
Source: MATC records 7/10/06.
The health care plan offered to all employees of MATC is about 50% more expensive for family coverage than the average health care plan provided by employers in the Greater Milwaukee Area (Journal/Sentinel 09/08/06). At a time when employees, in general, are paying a larger share of their health insurance costs each year, MATC employees contribute next to nothing for their health care, receive unlimited skilled nursing home coverage and private duty nursing care, both of which are extremely costly, and reimbursement for a private trainer!
Retiree Health Care Insurance:
To be eligible for 10 years of fully paid retiree health care from age 55-65, only 15 years of employment at MATC are required for full-time teaching faculty and full-time paraprofessionals. 20 years of employment at MATC are required for employees in public television and in daily operations (i.e. food service, shipping and receiving, security, grounds keeping, etc.) to be eligible for fully paid retiree health care.
Source: Full-time Faculty 2003/06 Labor
Contract, pg . 58.
Source: Full-time Para-professional 2003/06 Labor Contract, pg. 35,
Source: Electrical Workers 2003/06 Contract, pg. 23 (Public
television employees)
Source: Full and Part-time Operational Retirees 2003/06 AFSCME Labor
Contract pg. 29.
According to an independent actuarial study conducted by J.F. Molloy and Associates on 10/14/04, the current liability for retiree medical and life insurance coverage (not including pension payments) is $62.2 million. This figure will likely increase over time. The Board’s decision to pay health care premiums at early retirement, with a $62.2 million dollar price tag, shows their lack of fiduciary responsibility and total disregard for the Greater Milwaukee Area taxpayer. Where is the Board's allegiance, to the labor unions at MATC or the students and taxpayers who pay the bills.
How much longer must taxpayers provide Cadillacs for government employees when all they can afford are Yugos?
Think things are good when you work at MATC? Wait until you retire!
Full-time faculty and full/part-time para-professionals can retire at age 55 with only 10 years of service. They are given any unused sick pay upon retirement.
Source: Full-time Faculty 2003/06 Labor
Contract, pg. 63
Source: Full/Part-time Paraprofessional 2003/06 Labor Contracat, p.
40, 41.
Part-time faculty who teach 20 or more semesters can retire at age 55. They are given any unused sick pay upon retirement.
Source: Part-time 2003/06 Labor Contract pg. 29.
The employees of MATC are covered by the State of Wisconsin Retirement Fund or the Employees Retirement System of the City of Milwaukee. The MATC Board has agreed to pay the full cost of these plans. The employees of MATC contribute nothing. The Wisconsin Retirement system is among the 20 largest in the world, covering one out of every 11 employees in our state. The nearly 500,000 participants include current and retired public employees of the State (which includes nearly every county, city, town, and village) as well as the University of Wisconsin System, vocational-technical colleges, and public schools. Only the city of Milwaukee and Milwaukee County, which have their own pension systems are not part of the State plan.
All of these state plans are known as defined benefit plans which require fixed benefits to be paid regardless of employee contributions or financial health of the fund. Translation, employees pay nothing and if public official screw-up or over-promise the taxpayers pay. Many such defined benefit pension plans have been eliminated in the private sector and replaced by defined contribution plans such as 401K plans which require the employee to contribute and pay out based on the performance of the investments. Such plans help keep businesses viable and allow them to honor their fiduciary responsibilities to their shareholders. Wisconsin’s retirement plan not only offers cost of living increases each year for plan members but also pays out yearly dividends when the fund’s investments perform well. Note that when the plans under perform retirees DO NOT receive less. On average, the dividends have exceeded the rate of inflation, making this plan one of the most generous in the country.
Source: MATC Labor Contracts; Journal/Sentinel
Article, “Pension Fund in Trouble – Fat payouts, Falling stocks have
Pension Plan on the Ropes”, May 4, 2003.
In addition, MATC awards a special pension payment at age 55 which
compensates a retiree as if he/she retired at age 65. This special
pension payment can increase monthly retirement compensation by up
to 50% to eligible retirees for life.
Source: Labor Contracts pg. 63 (Full-time faculty), 40, 41
(Para-professionals).
Eligible full-time faculty and para-professionals who retiree at age 55 receive 10 years of fully paid health care, unused sick pay, and monthly pension checks from one of the most generous pension plans in the country. They receive a special pension payment from MATC “as if retirement had taken place at age 65 instead of age 55”. With a large number of MATC employees approaching retirement in the near future, the ultimate cost to taxpayers could be just as egregious and scandalous on a relative basis as the backdrop/ pension bonus that resulted from the Milwaukee County pension scandal in 2002.
Full retirement at age 55 after only 10 years of service? The average Milwaukee worker does not receive anything close to such a lavish benefit. Can Milwaukee area taxpayers afford another pension debacle like the one they experienced with Milwaukee County?
Coming Next: Part 3 of a 3-Part Series
Why are Greater Milwaukee area property taxpayers
stuck paying for irresponsible wage and benefit plans at MATC, which
warrant yearly property tax increases that far exceed the growth of
personal incomes?
How do students benefit from MATC employee’s lavish benefit plans?
How do the communities who fund these costs benefit?
Who is responsible for the out-of-control spending, and what
solutions exist to bring reality back into MATC?
Copyright 2006, CRG Network