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September 22, 2023NJ Taxpayers Pick Up the Tab for School Leaders’ ‘Boat Checks’
In 2018 Hudson County Schools of Technology Superintendent Frank Gargiulo stopped showing up for work. For the next three years he received a big fat gift from taxpayers: a check for nearly $1.1 million that covered his accumulated leave, including contractual raises, a one-year sabbatical, payouts for an accumulated 411 sick and vacation days (his contract gave him 37 sick days a year) and an annual tax-free annuity payment.
He also collects a pension of $14,574 per month, almost $175,000 a year.
Last year the state controller reprimanded North Bergen School District gifting two school principals–Paschal Tennaro and Peter J. Clark, who each earned more than $250,000–with checks for $296,096 and $249,234 respectively, representing their accumulated leave time.
Former Governor Chris Christie called them “boat checks,” or enough money to buy a yacht.
That’s according to research from nj.com, which found accumulated leave checks for retiring school leaders averaged $59,915. But they’re pikers compared to retirement payouts for retiring police staff, which average $110,110 and $147,737 for fire department staff.
Yet that’s money that doesn’t go into classrooms, teacher salaries, or facility needs, not to mention policing and fire-fighting.
Regina Egea, president of the Garden State Initiative, said it was “astounding” that the payouts “continue to haunt — and I use the word, haunt — New Jersey taxpayers.” She compared this practice to the way private companies handle retirements. Instead of allowing employees to amass Gargiulo’s 411 sick days, representing a year and a half of full-time work, sick days are “use it or lose it.”
Back in 2010, Christie worked with the Democratic leadership of the Legislature to pass a bill capping sick leave at $15,000 for any employee hired after May 21, 2010. But the legislation never was able to budge beyond that. When asked, Gov. Phil Murphy’s spokeswoman pointed to remarks Murphy made in 2017 while he was a candidate saying he was “favorably inclined” towards reforming retirement payout practices. He has not broached the topic since then.