Press Release

School Districts Would be Required to Report Annual Salaries of Employees under New Bill

Greater transparency is the key to a more equitable school system

SACRAMENTO – Three legislators on Friday introduced a bill to close a loophole used by school districts to get around public disclosure requirements for posting their salaries through the State Controller’s office.

Under SB 924, school districts would be required to report the annual salaries of employees to the State Controller, complying with the same requirements for local agencies, including each county, city, and special district. The bill is authored by Senator Steve Glazer, D-Contra Costa, Assemblymember Cristina Garcia, D-Bell Gardens, and Senator Rosilicie Ochoa Bogh, R-Yucaipa.

The legislation would also require the Controller to annually publish this information on its website.

Under current law, school districts are required only to report financial and salary information to the State Superintendent. Some districts and other agencies have voluntarily reported to the Controller. In all, only 23% of California school districts in 2021 reported their annual compensation reports to the State Controller.

“School districts should be disclosing the pay of their top administrators just like every other public entity,” Senator Glazer said. “They have used a loophole in the law to prevent easily accessible public disclosure. This legislation will close that gap.”

A school superintendent’s undisclosed pay came under scrutiny in a news report last year, highlighting the need for more disclosure. A Southern California News Group investigation found that the superintendent of the Ontario-Montclair School District, James Hammond, made more than $700,000 in 2020 and 2021 “through a series of out-of-the-ordinary perks.” However, his salary was listed on the school district’s web site as $299,676.

“While school district salaries are already public record, there is no way for citizens to easily obtain that information in order to hold their local districts accountable,” Senator Glazer said. “Posting the information on the controller’s web site along with other government salaries would allow the public to see how much districts are spending on administrators compared to how much of the budget reaches the classroom.”

In 2010, the City of Bell was involved in a scandal in which it was revealed that city officials made extremely high salaries, including a city manager who made $800,000 a year. The scandal highlighted the need for more transparency on the compensation of government employees.

To address this, the State Controller launched the Government Compensation in California website to make this information public.

This legislation closes a loophole that many school districts have used to avoid posting their reports since Assemblymember Garcia’s AB 2040 was signed into law in 2014.

“I’m proud to work with Senator Glazer to close this loophole once and for all,” said Assemblymember Garcia. “It makes me angry to learn that eight years after the passage of my AB 2040 in 2014, most school districts are not complying with the intent of the law due to a loophole. This type of behavior is why the public loses trust in our government. Sunshine is good for the democratic process and if your decisions are valid, you shouldn’t be afraid to share that with the public.”

This bill is about good government and accountability, said Senator Ochoa Bogh.

“As our state government grapples with a hefty budget surplus, it is more important than ever to ensure all tax dollars are appropriately allocated and are efficiently serving the needs of Californians,” said Senator Ochoa Bogh. “SB 924 will make way for greater transparency in our education system by allowing families to see how their hard-earned tax dollars are being spent. There is nothing more important than the value of an education. Let us make sure our kids receive the highest quality to ensure their future success.”

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