Tax forms and Mr. Watson's salary

[Sandia Peak]

In Mr. Honegger’s letter from Sunday, he writes that “our Head of School– singled out in the recent volley–is actually paid below the mean. And as it relates to the assertion that he was given raises during years where teachers received none, that is false and is instead an artifact of reporting changes, payday schedules, and, in one case, what we believe is an incorrectly entered figure on one of our annual 990s.”

Mr. Honegger, you say “this is false”… but what’s the explanation, then? I’ve looked at the 990 forms myself and I’m pretty sure I know how to read them. What changes, exactly, are you talking about?

And “an incorrectly entered figure”… did somebody fix this somewhere? Or did AA submit incorrect tax forms? I know if I do that on my own taxes I can get in big trouble.

We need answers. I appreciate your letter, don’t get me wrong, but this seems to open up more questions than it answers.

[Concerned Alum]

Yes, I too am a bit confused about what, exactly, “an artifact of reporting changes” is, and how “payday schedules” might have affected what was in the 990. (My only thought is that in re: to payday schedules, perhaps one 900 added an extra payday due to some weirdness in the calendar year?) That being said, wouldn’t we then expect for that change to disappear the next year? It would be exceedingly strange for calendar weirdness to result in two consecutive years of increased salary, no?

But here’s the bottom line: those figures represent dollars moving out of the school and into Andy’s bank account. So, to say that he didn’t get a raise (which is, by definition, being paid more than you were previously) would seem to be patently untrue, no?

I’d also like to see documentation of Mr. Honegger reporting the alleged mistake to the IRS (which, as you mentioned, seems quite a bit more serious than he seems to understand?).

All in all, what worries me the most about Andy’s/Honegger’s response is that they don’t seem to be concerned at all with the financial situation of the institution. The response seems to say “nothing to see here, everything is fine;” clearly not!

I’ll just ask again: if Andy’s personal investments were managed in this same way, would he maintain that everything is fine? Would he consider his the state of his retirement account to be “strong?” Would he feel “encouraged” about his future?

No way. Obviously, personal finances and the finances of an institution are not perfectly comparable; that being said, to not acknowledge that things have been going poorly and that the long-term health of the institution is at risk unless drastic changes are made seems to smell of willful ignorance.

Also growing a bit weary of the “but the recession happened” defense. If my grandfather was poor when I was growing up, it wasn’t because of Black Monday, ok? It’s been a full decade since the downturn in ’07/’08, and the markets have more than recovered. I’m also fascinated by the assertion that the Mariposa deal is a viable excuse for poor performance. It’s not. It’s an explanation of poor performance, but it doesn’t excuse it. Apparently it was a very poor investment that cost AA millions- why should the community be at ease about that?

[scorpio]

Good post, Concerned Alum. Here’s an interesting question. If there was a “an incorrectly entered figure on one of our annual 990s,” doesn’t that mean that Mr. Hibbett’s group found the error? If that’s the case, he should be thanked.

And doesn’t that mean that all the Academy’s IRS Form 990s currently listed at Charity Navigator, Pro Publica, and other sites are wrong? That has to be fixed, it seems to me.

I think the board should say when it will amend the incorrect figure, and make the amended Form 990 public to the community immediately. We need more disclosure on this.

And isn’t there a possible legal exposure if the Academy doesn’t amend quickly?

[Bitcoin]

Points to consider:
Bonuses are not considered raises. This is semantics, but it is to be considered.
Changing someone’s title and then changing their compensation is not considered a raise (re: Ms. Lipkowitz’s role changes over the past 10 years).

[libra68]

Just read the latest email from last night. Seems pretty clear that if the community doesn’t get a clear explanation about Mr. Watson’s salary during the freeze years, then it’s time for Mr. Honegger and him to step down. For the boss to take a raise while workers’ salaries are frozen is unacceptable. Period.

[Scared to speak]

Let’s be clear about one thing: Inside the school, among teachers and administrators who are not a part of the ruling Junta, THERE IS ONLY FEAR. No one, no one who wants to keep her job will say a word–not in any meeting, not at lunch, not even in a one-on-one conversation. The Party Line is that everyone can speak her mind freely. THIS IS A LIE. I have worked in five schools and never experienced anything like what is going on inside Academy right now. Yes, you can say whatever you want if it backs the Watson-insiders, but otherwise not a single word.

So if any change is going to come to this school–and it needs to, desperately–it MUST come from outside, especially from parents who pay the bills and alums who are constantly being pressured to give money–NOT A PENNY OF WHICH GOES TO TEACHERS outside the inner circle.

You have to step up to save the school–no one else can.

[Ulysses]

You are right, Scared-to-Speak. Just look at the campus since Mr. Hibbett’s letter. Tense silence everywhere. Every point in that letter is backed up with data. We are asked to honor and protect the mission. We know that the Academy abandoned the mission at least 20 years ago, when the pledge “we preserve our resources and serve the generations of children to come” became the victim of inept financial management. And yet who dares to talk about this publicly? And how about a “caring, inclusive, and just community”? Well, that works as long as you toe the official line. But heaven help you if you raise a legitimate concern.

Parents and alumni, this is serious. As so many others have written at this website, it is up to you to demand the change we need to restore the Academy to health. Please, speak up!

[Step up folks]

To add to Scared to Speak: You are correct as to the silence. Also, people outside AA should also be aware that often, when raises are given to faculty and posted as “a 2% raise” what is left out is the dollar cap of $1,200. This is a further slap to those in the faculty ranks who have given their lives to teaching and make over $60,000.

Andy’s rationale has been standard: This is in order to give those faculty who are starting out with lower salaries a leg up.

Perhaps their salaries were too low in the first place? I believe we all should have salaries in line with our years in education and degree levels. It’s a mystery why salaries are such a secret. Perhaps there are wide discrepencies which would further fan the flames. I don’t know.

And, it would be a good step if all open employment positions were posted and proper interview processes were done. The last job Ms. Lipkowitz interviewed for and got was English teacher. The last job Ms. Barrie interviewed for and got was exed department chair. Both their rise to the ranks of the inner circle have been by appointment. Makes us wonder why due process has been hit or miss.

Ms. Williams legitimately earned her post, yet Ms. Barrie was added to the leadership team, even though a chair was already in place for the four slots. Which magically became five because Ms. Barrie did not get chosen after the interview process, which included faculty and staff, not just Andy and Stephanie.

It’s more than just the money that feeds the discontent.

[SDHeights]

Mr Watsons total compensation package from forms 990:

2015 – $435,547
2014 – $423,608
2013 – $408,305
2012 – $386,196

Those are “keying errors”, not raises? Teachers salaries were frozen during that time period, if I understand it correctly.

[Not surprised]

So base salaries and incentives pay increase on these forms but they claim in reality their pay remained the same yet they didn’t file amended IRS forms. Yeah right. How about this, did AA comply with US Dept of ED regulations when, under Watson, it accepted federal funds for many years up to 2016…?

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