Arizona AG Sues Elementary School District Superintendent for $500,000 Excess Pay Compensation

Arizona Attorney General Mark Brnovich (L) discusses the problem of human trafficking in Arizona at a press conference in Scottsdale, Ariz., on June 22. (Allan Stein/The Epoch Times)

Arizona’s Attorney General Mark Brnovich has announced that his office is suing the Buckeye Elementary School District (BESD) as well as its superintendent Kristi Wilson for alleged overpayment of salary despite not being entitled to it.

Wilson has been the superintendent at BESD since 2013. As of fiscal year 2019, the average teacher at BESD earned $44,536, which is 15 percent below the state average, according to the lawsuit. Between fiscal years 2014 and 2016, Wilson’s annual compensation averaged $172,813. Starting fiscal year 2017, BESD entered into three separate employment agreements with Wilson that led to her receiving “additional compensation,” the lawsuit noted.

“For fiscal years 2017 through 2021, Wilson’s compensation was 163 percent higher (or about 2-1/2 times higher) than the reported average of peer districts’ superintendents, and 108 percent higher (or more than 2 times higher) than superintendents of Arizona’s three largest districts.”

The attorney general calculates that Wilson received over $500,000 in excess compensation that she was not entitled to, per employment agreements.

The lawsuit is seeking to make Wilson return funds that BESD paid her in violation of employment contracts and state laws.

Compensation

The first agreement that BESD entered into with Wilson in 2017 lasted until 2019 and had a base salary of $165,000. It required the district to pay additional compensation to Wilson so that she could purchase a one-year retirement service credit with the Arizona State Retirement System (ASRS) for each fiscal year under the agreement. Wilson was also entitled to be paid at the “current per diem rate” for up to 30 unused vacation days.

The second agreement covered fiscal year 2019 to 2021 and had a base salary of $175,000. Unlike the first agreement, which had a compensation limit of $1,800 per pay period, this one did not place a limit on the compensation amount. Other additional compensation was also agreed upon. The third agreement, between fiscal years 2021 and 2023, has a base salary of $189,000.

Due to the “additional compensation” and “per diem rate” for unused pay in the three agreements, BESD paid Wilson $1,712,976 in addition to her base salary between July 2016 and December 2021. Adding to the base salary of $1,561,529, Wilson’s total compensation during the period came to $3,274,505.

Additional Compensation Components

Of the $1,712,976 in additional compensation, $1,509,311 was paid to Wilson to purchase 11 years of retirement service credit with the ASRS. This includes $885,634 that BESD directly paid to the ASRS, $358,109 paid to Wilson directly, and $265,568 to taxing agencies and the ASRS on Wilson’s behalf.

The remaining $203,665 of additional compensation was related to payments for unused leave. After deducting ASRS payments and “required withholdings,” BESD was estimated to have paid Wilson $501,875 not required by employment agreements.

Under the three agreements, Wilson’s annual salary ranged between $338,986 to $799,846, which is higher than the superintendents of Arizona’s three largest districts, which ranged between $208,600 and $306,179.

The Epoch Times has reached out to the Buckeye school district.

“Transparency and accountability are not electives in our public school districts,” said Attorney General Mark Brnovich, according to a Dec. 28 press release. “Hardworking taxpayers expect these public funds to be expended in accordance with the law and the best interest of students.”

The lawsuit insists that the “additional compensation” received by Wilson violated the Arizona Constitution’s Gift Clause and is thus recoverable. It seeks the excess amounts paid by BESD to Wilson be considered illegal and also recovered.