Author Topic: Local school district gives $950,000 loan for superintendent to buy home  (Read 3369 times)

Mutton Chop

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Local school district Superintendent negotiates $950,000, 30 year fixed term loan @ 2.6% interest as part of compensation package.

This guy makes over $200,000 in salary per year but can't save enough money for a down payment on a home.  Yes, the loan includes the down payment. 

WHAT A JOKE

http://www.sanluisobispo.com/news/local/education/article121548602.html
http://www.ksby.com/story/34077080/san-luis-coastal-unified-school-district-to-provide-superintendent-with-home-loan
http://www.newtimesslo.com/news/14754/san-luis-coastal-gives-home-loan-to-superintendent/


Gin1984

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Re: Local school district gives $950,000 loan for superintendent to buy home
« Reply #1 on: January 01, 2017, 10:38:38 AM »
He gave up $50,000 in salary as part of getting the loan.  It is not that he can't afford to save up for a down payment but it is an offer to keep him. This actually helps the district because they get the money instead of increasing compensation (given he had other offers). 
I may disagree that administration should get paid as much as they do, especially compared to teachers,but the loan itself is not crazy.

cawiau

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Local school district gives $950,000 loan for superintendent to buy home
« Reply #2 on: January 01, 2017, 10:55:32 AM »
I disagree it is a joke, it is a job offer/contract negotiations.

I relocated my family from MA to DC for my current job, as part of my negotiations we agreed on a 4 year contract in exchange my job provided me with:

- an agent, we could have done without, but she was helpful

- access to a broker that streamlined all our paperwork and made it easy;
---> mortgage was for $521,500 at 3.5% for 30 years (I wish I got the above mentioned rates but don't want that big of a mortgage)

- 36k towards the home purchase
---> I used 18k of that as a downpayment and the other 18k is paid to my bank on installment of $1,500/month for 12 months (ends in October) to go towards my mortgage payments.

- not including moving costs from MA to DC

- hotels, flights, per diem etc.

He was a smart man to consider his options before settling. We sold our home in MA and had enough for a downpayment here but why use my own money if the company is willing to pay me (or pay for other things) if they want me bad enough?

And he is giving up something for that money like I am: for the next 4 years (3.5 now) I am stuck with my company wether I like it or not, hate it or not or be liable to pay back about ~70k (rough estimate).

---->  unless (and that is a big one) I find another company that is willing to pay that money for me to go work for them.

Anyway all this to say: the above/article is no direct reflection of his finances; more so a reflection of how desirable he is to the community that made the offer or to the others that tried to hire him.


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« Last Edit: January 01, 2017, 11:11:33 AM by cawiau »

charis

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Re: Local school district gives $950,000 loan for superintendent to buy home
« Reply #3 on: January 01, 2017, 10:59:29 AM »
I agree that it sounds like a good deal for both parties, assuming that he can actually afford it.  The real issue is the cost of housing in that area.

Mutton Chop

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Re: Local school district gives $950,000 loan for superintendent to buy home
« Reply #4 on: January 01, 2017, 11:07:47 AM »
This is a slippery slope.

I think it's absolutely absurd for a school district to finance an employee's home, especially when the interest rate is probably half of what the employee would get their own. 

I understand the important of retention, but school districts need to hold their ground and let people walk if total compensation is close to $300k (plus pension in retirement) and that's not good enough.




cawiau

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Re: Local school district gives $950,000 loan for superintendent to buy home
« Reply #5 on: January 01, 2017, 11:16:48 AM »
And if this is correct both the school district and the superintendent comes out ahead :

Quote
San Luis Coastal will use money from its general fund thatís typically put into the county treasury for investment that has a 1 percent return. Eisendrath-Rogers said Prater will owe $300,000 in interest on the loan, which will give the district a higher return of 2.6 percent

Read more here: http://www.sanluisobispo.com/news/local/education/article121548602.html#storylink=cpy


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paddedhat

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Re: Local school district gives $950,000 loan for superintendent to buy home
« Reply #6 on: January 01, 2017, 01:45:36 PM »
Not even close to being a winner on the Public School Superintedent shit storm list. My wife did her career at a district that was blown away by a candidate they hired.They HAD to have him, and the guy was one heck of a savvy negotiator. His performance degraded quickly after taking over, and he soon ended up with nobody in his camp, equally hated by staff, the board and the public. The board bought several years of his contract out to make him disappear. Nothing unusual about this, except that a quick Google search would reveal that this was his M.O. and, immediately prior to being hired, he had been relieved of command in a district less than a two hour drive away, with the same early buyout. That whole ugly mess was well documented over several years, by the local press at his last district, and readily available to any prospective employer, with zero effort. The board then hires the next clown, who suffered from a major Emperor complex, and devoted his time to building a massive new high school that the citizens did not want, and were unable to afford. This guy was actually a decent administrator, but eventually the citizens prevailed, and they bought him out also. It may actually of been possible that the district was paying for three superintendents at once, one who was actually doing the job, and two who were let go, while their meters were still running.   

Hey It's Me

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Re: Local school district gives $950,000 loan for superintendent to buy home
« Reply #7 on: January 01, 2017, 02:13:22 PM »
That sounds like an awesome negotiation on both parties' part. (I'm a little jealous haha)

gimp

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Re: Local school district gives $950,000 loan for superintendent to buy home
« Reply #8 on: January 01, 2017, 03:55:54 PM »
SLO is not cheap. It's no bay area, but $950k is not the mansion some of you imagine it is.

Tjat

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Re: Local school district gives $950,000 loan for superintendent to buy home
« Reply #9 on: January 02, 2017, 05:38:15 AM »
And if this is correct both the school district and the superintendent comes out ahead :

Quote
San Luis Coastal will use money from its general fund thatís typically put into the county treasury for investment that has a 1 percent return. Eisendrath-Rogers said Prater will owe $300,000 in interest on the loan, which will give the district a higher return of 2.6 percent

Read more here: http://www.sanluisobispo.com/news/local/education/article121548602.html#storylink=cpy


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1%? What? Does the county have all their funds at Ally Bank?


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cawiau

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Re: Local school district gives $950,000 loan for superintendent to buy home
« Reply #10 on: January 02, 2017, 11:20:34 AM »
SLO is not cheap. It's no bay area, but $950k is not the mansion some of you imagine it is.

I live in DC, I know for a fact 950k does not buy a mansion lol. Heck if I move to Georgetown I will pay that for a smaller row house than we have now.

But I hope his wife has a job with a high salary because 900k mortgage is a bit too high for my comfort zone on a 200k salary.


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mm1970

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Re: Local school district gives $950,000 loan for superintendent to buy home
« Reply #11 on: January 02, 2017, 01:34:56 PM »
He gave up $50,000 in salary as part of getting the loan.  It is not that he can't afford to save up for a down payment but it is an offer to keep him. This actually helps the district because they get the money instead of increasing compensation (given he had other offers). 
I may disagree that administration should get paid as much as they do, especially compared to teachers,but the loan itself is not crazy.
Yep.  Sounds like a win-win to me.  I live in Santa Barbara, higher COL compared to SLO, but not as bad as the Bay Area.

So, superintendents...yeah, I'm not going to judge their salaries.  Not my area of expertise.  I do have a friend doing research for the district (she has a PhD) - total pay a little over $121k, which, ya know, is more than I make as an engineer. (I'm underpaid, I realize this.)

$900k mortgage not fun either.  I doubt his wife makes a lot of money.

former player

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Re: Local school district gives $950,000 loan for superintendent to buy home
« Reply #12 on: January 03, 2017, 09:53:19 AM »
Is the school district going to give mortgages to its teachers and their support staff too?  They are the ones for whom housing is going to be much more of a problem than a superintendent on $200k.

MgoSam

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Re: Local school district gives $950,000 loan for superintendent to buy home
« Reply #13 on: January 03, 2017, 09:53:51 AM »
This seems bad, but it could be worse. Hopefully the house that the Super Nitendo (Simpsons) purchased was within the school district. I've heard of a few well-paid Super Nitendos that were living in a different county and thus their property taxes weren't going to the school district that paid them.