BUCKEYE, Ariz. — The Buckeye Elementary School District's superintendent has been compensated at a rate that's over 100% higher than her peers and could have potentially been overpaid by $570,000, according to a new report from the Arizona Auditor General.
Superintendent Kristi Wilson was paid over $1.7 million in "additional compensation" between 2016 and 2021, placing her in an income bracket above superintendents from comparable districts, the auditor's report found.
The district had allegedly agreed to pay in excess of Wilson's base salary by agreeing to purchase 11 years of retirement service credit at five different school districts in another state.
Auditors discovered the district had paid $885,634 directly to the Arizona State Retirement System for the superintendent’s retirement credits, $358,109 to the superintendent, and $265,568 to taxing agencies.
Another $200,000 was paid out for unused leave time -- resulting in about $1.7 million of extra compensation.
Wilson allegedly told auditors the extra compensation was "a negotiated contract term that the superintendent and the governing board thought would be a good way to meet desires on both ends," the report states.
Auditors believe some of the extra compensation was miscalculated and up to $570,000 may need to be paid back to the district.
"The District may have unlawfully gifted public monies when, without documenting any public purpose, it paid 'additional compensation' of $1,712,976 to or on behalf of its superintendent from July 2016 through December 2021," the auditor's report states.
The auditors additionally faulted the district for allegedly not disclosing some of the extra compensation in Wilson's contracts, thus barring the public from knowing about it before the school board ratified the agreements.
In response to the report, the district issued a letter that disputes the auditor's argument it had gifted public funds to Wilson.
"A school district's payments to its superintendent have a public purpose as that individual is responsible for the efficient administration of all matters related to the education of the district's 5,878 students and 727 staff members," the district's letter stated.
The district operates in a "fiscally responsible manner" and is projected to carry over almost $5 million in excess funds into the next year, Buckeye Elementary's letter stated.
Buckeye's funds were used to help Wilson buy service credit, not to directly add to her retirement accounts, the district said in its letter.
The district further explained that its governing board knowingly agreed to buy retirement credits if Wilson promised to remain with Buckeye Elementary.
But auditors think taxpayers are not getting a valuable return on the extra compensation that's been paid by the district.
"In fiscal year 2019, 4 of the district’s 7 schools received a D or F letter grade, District students performed below their peer group on state assessments, and the district’s average teacher salary was about 15 percent below the state average," the auditor's report states.
Auditors have indicated they've submitted their report to the Arizona Attorney General's Office for review.
The district's governing board has additionally put out the following statement regarding the audit's findings:
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