Though Iowa has dozens of public officials who earn more than $100,000, many are earning far less than if they worked in the private sector, according to an economist at Iowa State University.

Peter Orazem, a professor of economics at ISU and director of the university’s Industrial Relations Program, said salaries paid to public employees lag between 5 percent and 10 percent behind similar positions in the private sector.

“They’re earning slightly less than they would in the private sector, but they don’t have the uncertainty about future employment in the public sector, although that may be changing,” Orazem said. “Historically, they’re safe jobs, and that should be worth something to have that security.”

To help balance the budget, the state of Iowa fired almost 10 percent of its workforce – 2,266 full-time equivalent positions – last year. But, Orazem said, lay-offs and terminations are common in the private sector as well. “Between 200 and 300 people lost their jobs at [Newton-based] Maytag last month, and there wasn’t a lot of prior notice,” he said.

The pay gap is most apparent among information technology workers. “People in the tech areas are paid a lot more outside state government than they are inside state government,” said Orazem, who authored a study on comparable worth for the state. “That doesn’t mean the state can’t find people, but it’s harder to attract and keep them.”

He thinks that as government is increasingly streamlined and more services are available online, the public sector will have to correct the pay disparity in the area of information technology.

“State government is more and more likely to be needing to hire people with college degrees who are technically skilled, particularly as government becomes more e-government,” he said. “If we’re going to have more efficient state government with fewer people using technology to increase productivity, there’s going to have to be a big change in the way government is run, and not all that is going to be cheap.”

A Des Moines Business Record analysis of salaries paid to county, city and school employees shows 41 workers who will earn more than $100,000 in fiscal 2003. Topping the list is Susan Hunsaker, the chief executive officer at Polk County-owned Broadlawns Medical Center, who will earn $204,000 this fiscal year. Second on the list is Polk County Medical Examiner Dr. Francis Garrity, who will earn $179,760, followed by Des Moines City Manager Eric Anderson, $177,028; Des Moines Area Community College President David England, $175,000; Des Moines Independent School District Superintendent Eric Witherspoon, $155,690; Polk County Manager Teree Caldwell-Johnson, $148,000; Des Moines Deputy City Manager Richard Clark, $137,725; Polk County Attorney John Sarcone, $134,312; Des Moines City Attorney Bruce E. Berman, $133,256; and Polk County Public Health Director Carolyn L. Beverly, $130,874. (For a complete list of public employees in Polk County earning more than $100,000, see Page 22.)

The Business Record also consulted the recently completed state of Iowa salary survey, which listed wages earned by all state employees for the fiscal year that ended June 30. The analysis does not include university professors or physicians at the state’s mental health and corrections facilities.

Larry Eustachy, the head coach of the men’s basketball team at Iowa State University, earned $1.1 million in fiscal year 2002 and was reimbursed about $9,540 for expenses, while his counterpart at the University of Iowa, Steve Alford earned $625,000 and was reimbursed about $17,435 for expenses, according to the state’s salary survey. ISU head football coach Dan McCarney earned $637,500 and was reimbursed about $13,925 for expenses, and UI head football coach Kirk Ferentz earned $592,925 and was reimbursed about $8,385 for expenses.

At University of Iowa Hospitals and Clinics, Professor Carol Scott-Conner, who earned $314,309 in fiscal 2002, was the highest-paid among the 30 employees who earned more than $100,000. UIHC employs more than 6,550 workers.

In fiscal 2002, District Court judges earned $106,610 ($111,140 for the chief judge); Court of Appeals judges earned $112,170 ($116,490 for the presiding judge) and Supreme Court justices earned $116,600 ($120,190 for the chief justice). State Court Administrator William J. O’Brien was paid $119,500.

Other public officials received the following salaries in fiscal 2002:

o Iowa Telecommunications and Technology director Harold E. Thompson earned $133,182, but he has since left state employment. He was reimbursed $628 for expenses.

o Michael J. Tramontina, executive director of the Iowa Finance Authority, earned $130,813 and was reimbursed$7,556 for expenses.

o Lottery Commissioner Edward J. Stanek II earned $125,836 and was reimbursed $103 for expenses.

o Department of Education Director Fredrick M. “Ted” Stilwill earned $123,871 and was reimbursed $6,220 for expenses.

o Fired Department of Human Services Director Jessie Rasmussen earned $123,377 and was reimbursed $980 for expenses.

o Retired Department of Revenue and Finance Director Gerald D. Bair earned $122,509 and was reimbursed $4,155 for expenses.

o Department of Management Director Cynthia P. Eisenhauer earned $122,170 and was reimbursed $3,564 for expenses,

Dr. Stephen Gleason, the former director of the Department of Public Health who last month became Gov. Tom Vilsack’s chief of staff, will get a $1,000 raise. In his former position, he earned $123,971 and was reimbursed about $900 for expenses. As Vilsack’s top aide, he’ll earn $125,000, compared to his boss’ salary of $105,828 in fiscal 2002.

Orazem said agency heads likely would earn much more if they were working in the private sector. For example, Rasmussen’s department has more than 3,000 employees. A similar job in the private sector would pay three or four times more than the $123,377 Rasmussen earned, he said.

Among publicly traded companies in Greater Des Moines, chief executives command much higher pay. For example, in fiscal 2001:

o AmerUs Holdings Inc. President and CEO Roger Brooks earned a salary of $625,000, a bonus of $945,000 and other compensation in the amount of $350,067.

o Casey’s General Stores Inc. President and CEO Ronald Lamb earned a salary of $541,666, a bonus of $100,000 and other compensation of $836.

o EMC Insurance Group Inc. President and CEO Bruce Kelley earned $426,782 and other compensation of $5,730./

o FBL Financial Group Inc. CEO William Oddy earned a salary of $470,000, a bonus of $175,764 and other compensation of $57,852, plus options.

o Maytag Corp. Chairman and CEO Ralph Hake earned a six-month salary of $409,821, a bonus of $300,000 and other compensation of $4,897, plus options.

o Meredith Corp. Chairman and CEO William Kerr earned a salary of $690,000, a bonus of $382,062 and other compensation of $21,790, as well as options.

o Principal Financial Group Inc. President and CEO J. Barry Griswell earned a salary of $919,231, a bonus of $845,692 , other compensation of $38,935 and an incentive of $516,963.

Highest-Paid Public Officials  (Cities, Schools and Polk County)  Ranked by salaries as of fiscal year ending June 30, 2003

Name Title Jurisdiction FY 2003 salary FY 2002 salary  Susan Hunsaker CEO Broadlawns Medical Center (Polk County) $204,000 $197,000

Dr. Francis Garrity Medical Examiner Polk County $179,760 $179,760

Eric Anderson City Manager City of Des Moines $177,028 $171,872

David England President Des Moines Area Community College $175,000 $175,000

Eric Witherspoon Superintendent Des Moines Independent Schools $155,690 $155,690

Teree Caldwell-Johnson County Manager Polk County $148,000 $141,989

Richard E. Clark Deputy City Manager City of Des Moines $137,725 $133,714

John Sarcone County Attorney Polk County $134,312 $131,678

Bruce E. Bergman Corporate Counsel City of Des Moines $133,256 $127,500

Carolyn L. Beverly Public Health Director Polk County $130,874 $125,840

Greg Robinson Superintendent Urbandale Community Schools $129,400 $97,622

Les Omotani Superintendent West Des Moines Community Schools $126,455 $121,000

Jeff Pomeranz City Manager City of West Des Moines $125,312 $115,000

Kent Mutchler Superintendent Ankeny Community Schools 125,000 N/A

Joseph Drips Superintendent Southeast Polk Community Schools $124,000 $117,200

William E. Stowe Public Works Director City of Des Moines $121,540 $118,000

Richard Sunblad Superintendent Johnston Community Schools $120,000 $113,400

William E. Flannery Aviation Director City of Des Moines $118,780 $114,232

James M. Grant Community Development Director City of Des Moines $118,780 $114,232

Kim Luinduska Senior VP, academic affairs DMACC $116,106 $111,640

Michael R. Armstrong Chief Information Officer City of Des Moines $114,402 $110,002

Carl Metzger City Manager City of Ankeny $114,379 $108,879

William H. Moulder Police Chief City of Des Moines $114,329 $106,792

Frederick W. Van Liew Bureau Chief, County Attorney Polk County $113,758 $111,527

Donald M. Tripp Park and Rec Director City of Des Moines $112,953 $106,559

Dennis Anderson Sheriff Polk County $111,152 $108,972

Bob Layton City Manager City of Urbandale $111,000 $108,000

Thomas G. Turner Human Resources Director City of Des Moines $110,334 $106,559

Nan Horvat Bureau Chief, County Attorney Polk County $110,108 $107,949

Steven M. Foritano Bureau Chief, County Attorney Polk County $110,108 $107,949

Raymond M. Blasé Bureau Chief, County Attorney Polk County $110,108 $107,949

Daniel C. Voogt Bureau Chief, County Attorney Polk County $110,108 $107,949

Michael B. O’Meara First County Attorney, Civil Polk County $110,108 $107,949

Karen s. Gladdis Information Technology Director Polk County $108,050 $101,303

Francis M. Grimaldi Director, Regional Facilities Polk County $107,989 $101,303

Dennis Henderson City Manager City of Clive $107,160 $100,556

Darrell Roberts Senior VP, business services DMACC $106,577 $102,478

Dory Briles Senior VP, development DMACC $103,922 $99,925

Larry Reed Director of Public Works City of West Des Moines $101,943 $99,360

James D. Elza Jr. Director of Planning and Development Polk County $101,935 $95,160

Dave Palmer Senior VP, government affairs DMACC $101,486 $97,583

Jerry Wadden Chief Academic Officer Des Moines Independent Schools $101,016 $101,016

Linda Lane Chief Operating Officer Des Moines Independent Schools $101,016 $101,016