Lawmakers riled over bonuses for trust land officials

Lawmakers on Capitol Hill are outraged over hefty bonuses handed out to top managers of the Utah School and Institutional Trust Lands Administration — double what they get annually — given the state's tough fiscal times.

"I just find this totally inappropriate," said Senate President Michael Waddoups, R-Taylorsville. "This sort of thing gives government a black eye."

The issue was raised on the Senate floor Wednesday during a confirmation vote that included adding former lawmaker Dave Ure to the SITLA board. The independent state agency manages 3.4 million acres of trust lands for the financial benefit of Utah public schools.

Senate Majority Leader Sheldon Killpack, R-Syracuse, said the agency "tried to sneak around the process" by paying the extra money, calling that inexcusable.

Killpack told reporters after the confirmation hearing that earlier this year the agency gave out what amounted to double bonuses, $71,000 a person compared to $35,000. Six people received the bonuses, according to SITLA. "That's close to half a million dollars," he said.

But Lisa Schneider, the administration's assistant director of finance, said it is just a matter of timing.

"Both payments hit in the same fiscal year. That is why it looks so big," she said.

Schneider said revenue and performance goals are established for six top managers — the executive director, assistant director and four other division leaders. The goals are set at the beginning of each fiscal year, July, and reviewed at the end of the fiscal year, June, to see if they were met.

John Ferry, chairman of SITLA's board of trustees, said there was never any intent to sidestep the mandate by lawmakers that there be no bonuses for fiscal year 2010.

"We did not want to look like we had thumbed our noses at the Legislature and ignored them," he said.

But, he said, the top managers met their performance goals.

"The board is sensitized to the economic conditions and we agonized but felt we needed to honor them and give them that. … If we were a money loser, failing, like so many out there, it would be different. We consider ourselves a lonely bright spot in the economy because we are doing well."

Ferry said those 2009 bonuses would not have normally been awarded until sometime in fiscal year 2010 because of the lag time caused by the performance review. Early payment was broached with chairmen of the Senate and House natural resources appropriation committee. He said it received the nod.

Not so, said committee co-chairman Sen. Dennis Stowell, R-Parowan.

"We said they couldn't use any 2010 money for bonuses," Stowell said. "They never talked to me about getting two bonuses in the same fiscal year."