East Lansing board approves bond stipends, extends finance director’s contract through transition

The East Lansing School District Board of Education on Aug. 12 voted unanimously to approve bond-funded supplemental stipends for administrators tied to implementing the district’s safety, security and accessibility bond and to amend the director of finance’s contract so he will remain to train his replacement.

The measures were proposed as part of the board’s action items tied to bond implementation. Trustee Ferris Highland moved the stipend package; Trustee Etel seconded the motion, which the board passed without recorded opposition.

Why it matters: Trustees said the payments are intended to cover additional hours and specialized responsibilities that arise during a major bond rollout, including extra work on bond finance that requires institutional knowledge. Trustees also said retaining the director of finance during transition reduces risk to the district’s bond administration.

Ross Gorman, president of the ELA, told the board the union was ‘‘concerned’’ about the proposed administrator payments but framed them as ‘‘fair compensation’’ for extra work. He said the board was considering ‘‘a total package of $27,000 split between relevant administrators’’ for bond-related duties and noted an additional $10,000 proposed to keep the current finance director through transition. "Whether or not these bonuses are the best use of this money should be considered," Gorman said, urging equity across roles.

Superintendent (name not stated) clarified that the proposed payments are to be drawn from bond funds, not the district’s general operating fund, and that they are not paid up front; payments would be made after the work is completed. "That is not upfront at all — it is not general fund money," the superintendent said, adding the allowable uses of bond funds differ from general operating funds.

Board members framed the contract amendment for the finance director, identified in the meeting as Mr. Pew, as a limited step to preserve institutional knowledge. Trustee Chambers said, "I sleep easier at night knowing that Mr. Pew is willing to stay on and help to navigate through this transition," and said compensating him for that work was appropriate.

Trustees also cautioned against framing administrator compensation and teacher compensation as a zero-sum choice. A trustee referenced another district as a cautionary example when discussing the complexity of bond finance and the need for experienced oversight.

What the board approved: the meeting record shows approval of bond stipends related to extra duties and responsibilities for the safety, security and accessibility bond project and a contract amendment for the director of finance; both motions passed unanimously according to the transcript. The motion language in the record described the stipend approval as related to the 2024 bond work and the contract amendment as extending the finance director’s service to train his replacement.

Next steps: Trustees said they will continue to monitor bond implementation and return to regular committee work; the board’s next regular meeting was set for Aug. 26, 2024.

(Reporting based only on the Aug. 12 meeting record and statements taken at the meeting.)