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Superintendent enjoys contract perk that some see as taking advantage of taxpayers in county
By Rick Armon
Beacon Journal staff writer
Published on Sunday, Sep 07, 2008
When Summit County Board of MRDD Superintendent Thomas Armstrong takes his 2001 Land Rover Discovery II into the shop for repairs, county residents pick up part of the tab.
Taxpayers also foot some of the bill when he pays his personal car insurance, when he pays his state vehicle registration fee and even when he goes to the carwash.
Armstrong, a statewide leader on MRDD issues who has headed the local agency for seven years, enjoys an unusual perk in his contract not given to other MRDD superintendents in the state's largest counties. In addition to receiving a $4,800-a-year vehicle allowance, he's permitted to bill taxpayers for all driving-related expenses.
So whether it's gasoline or new Michelin tires for his sport utility vehicle, county taxpayers are sharing in the cost.
''This fits into news of the weird,'' said Catherine Turcer of Ohio Citizen Action, a government watchdog group in Columbus.
She and Michael Maurer, director of the Buckeye Institute's Center for Transparent and Accountable Government, said the deal smacked of ''double billing.'' The board is providing a vehicle allowance, which is supposed to pay for auto expenses, and then also permitting the superintendent to bill the taxpayers for the actual expenses.
''It doesn't make any sense,'' Turcer said.
Last year, Armstrong was reimbursed for $2,141 worth of gas; $1,163 for maintenance, repairs and auto parts; $263 for auto insurance; $112 for car washes; and $30 for his state vehicle registration, according to an itemized expense report given to the board. It was his lowest reimbursement amount in the last four years.
He is not paid mileage. But when his vehicle allowance and expenses are combined for last year, he would have been reimbursed at a rate of 66 cents per mile, more than the federal rate of 48.5 cents at the time.
Armstrong and board members defend the uncommon vehicle benefit, saying he travels often to Columbus to lobby on behalf of the county and help shape statewide policy on mental retardation and developmentally disabled issues.
Since he's on the road so often in his personal vehicle for board business, it's appropriate to pay more for auto expenses, they said. And his travel has paid off with millions of dollars in funding coming to Summit County, they added, noting that the agency is receiving $19.5 million more in Medicaid revenue today than when he took over.
''We don't think we cut a bad deal on behalf of the taxpayer,'' said William Ginter, an MRDD board member and parent of a child receiving MRDD services. ''We think we cut a good deal.''
His contract
Armstrong — whose base salary is $152,984 — oversees an $82 million annual budget and 338 employees. The agency, which operates independently of county government, is overseen by a nine-member board.
He is the only superintendent receiving the unusual vehicle benefit among MRDD peers in Cuyahoga, Franklin, Hamilton, Lucas, Montgomery and Stark counties, according to a Beacon Journal review of contracts.
Three of those — Hamilton, Montgomery and Stark — don't provide a vehicle allowance. The Lucas and Franklin superintendents get $7,200 a year, while the Cuyahoga superintendent receives $6,900.
The Lucas and Cuyahoga superintendents are paid for mileage outside the county. Franklin Superintendent Jed Morison doesn't receive mileage and his contract states that he ''shall be responsible for maintenance of said vehicle at his expense.''
According to Armstrong's five-year contract, which ends in May, he's ''entitled to reimbursement of the portion of the vehicle operating costs (e.g., gasoline, oil, maintenance, etc.) that are related to business conducted on the board's behalf.''
Armstrong keeps track of the miles he travels for board business and then bills the county based on the percentage of total miles driven.
For example, last year he drove 12,907 miles for the board and 25,287 miles overall. So he billed the board for 51.04 percent of his auto expenses, or $3,712.
AAA estimated last year that the annual cost to own and operate a sport utility vehicle driven 20,000 miles was $11,922. For his 12,907 miles driven last year on board business, Armstrong received $8,512 from the board when his expenses and vehicle allowance are added together.
In other years, he drove:
• 12,466 miles for work in 2006 and was reimbursed for $4,447 worth of auto expenses. When his vehicle allowance — which he pays taxes on — is factored in, he received the equivalent of 74 cents per mile.
• 11,890 miles in 2005 and was reimbursed $5,790. He received the equivalent of 89 cents per mile.
• 15,456 miles in 2004 and was reimbursed $3,910. He received the equivalent of 56 cents per mile.
Those expenses have included everything from personal car insurance to auto parts to car washes.
''I don't think the voter is approving a levy so someone can drive a very nice car and pay part of his car insurance,'' said Rose Juriga, executive director of the Tri-County Independent Living Center, whose nephew has received services from the agency. ''I think it's totally unacceptable.''
Why?
Armstrong arrived at a troubled time for MRDD.
The agency's board was fighting with former Superintendent Norman Czubaj over a variety of issues and wanted him gone. After 14 years at the helm, Czubaj resigned in late 2000, leaving with a $350,000 buyout of his contract.
Armstrong, who at the time worked for the Ohio Association of County Boards of Mental Retardation and Developmental Disabilities, stepped in, at first on an interim basis.
Ginter and board President Linda Bordenkircher said they wanted the new superintendent to be active in Columbus. And to be active there, they wanted him in Columbus. To encourage him to travel, they negotiated not only the vehicle allowance but also the ability for him to bill the board for his auto expenses.
The board didn't want to lease or buy a vehicle, they added.
Ginter refused to call the contract clause a perk or benefit, referring to it instead as ''a cost of doing business.''
Armstrong admitted he travels an ''inordinate amount'' compared to most of his peers. Last year, he was reimbursed for $3,854 worth of meals, hotel bills and other travel expenses. (That's in addition to the auto expenses and vehicle allowance.)
The trips have been critical for the county to learn about new Medicaid reimbursement rules and make sure that the local MRDD earns its share of funding, Armstrong and the board members said.
''The board believes, and I believe, that that's resulted in substantial dollars coming back to the board,'' Armstrong said about his travel. ''I mean millions and millions of dollars from where we were in 2001 to 2007, thereby reducing the burden on local taxpayers.''
Praise
State leaders praised Armstrong's advocacy.
Ohio MRDD Director John Martin said that Armstrong has been among several superintendents who are active and ''a consistent voice representing the counties.''
And he confirmed that visits to Columbus pay off.
''We have seen that the more involved people are, the more they are able to take advantage of federal funding,'' Martin said.
Linda Oda, a spokeswoman for the Ohio Association of County Boards of MRDD, called Armstrong ''highly influential'' in the state capital.
''It's a lot easier for superintendents to stay in their home county and never go anyplace and let someone else carry the load,'' she said. ''It's a lot easier to sit back and not incur the mileage and long nights.
''There are a handful of go-to superintendents and Tom is in everybody's book as one of those people. That speaks pretty highly for Summit County.''
Because of Armstrong's strong advocacy, the local agency has been able to eliminate a waiting list for day-care services and increase the number of people served from 2,373 when he took over to 3,470 last year, supporters said. The agency also has expanded programming outside its main center and increased the number of work centers.
Meanwhile, the administrative portion of the budget has decreased from 13 percent to a projected 8.6 percent this year.
But Armstrong and the board also have benefited greatly from the generosity of taxpayers. The current MRDD levy raises $53 million, $20 million more than five years ago.
Benefit problematic
A problem with the benefit is someone could take advantage of it, Ohio Citizen Action's Turcer said.
For example, it may encourage the superintendent to buy more expensive tires or have his vehicle washed more often since he's not paying the entire cost.
Also, he has no incentive to get the best deal, Maurer said.
Turcer noted that Armstrong could wash his own car as opposed to paying $14 to $15 at a carwash. Receipts show that Armstrong also provides a tip — most often, $3 — each time he has his vehicle washed, and taxpayers pay for the tip, as well.
Turcer called it ''nickel-and-diming the taxpayers.''
It would have been smarter for the board to boost Armstrong's mileage rate in his contract than give him the ability to bill taxpayers for expenses, she said. Or boost his overall salary, Maurer said.
''If you are going to give someone a significant benefit, you better be aware that that's what you're doing and be aware that you can be taken advantage of,'' Turcer said.
Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com.
When Summit County Board of MRDD Superintendent Thomas Armstrong takes his 2001 Land Rover Discovery II into the shop for repairs, county residents pick up part of the tab.
Get the full article here.
Comments
Click here to post your comments
Akron, OH
Posted 09:00 AM, 09/07/2008
Hmmm, seems a tad over the top, expense wise. Though he should be reimbursed for his expenses, it probably should be at a level for a more economical vehicle, as opposed to a very expensive one.
Posted 10:53 AM, 09/07/2008
Increased Medicaid $ resulted from efforts at the State level and benefiited all 88 counties in Ohio. Giving Armstrong credit for the additional medicaid $ is quite a stretch.
Posted 11:42 AM, 09/07/2008
This is a tiny amount of money for a county agency. If people want to get their panties in a bunch over this, then increase his salary by $5K and take away the benefit. Problem solved.
Posted 01:41 PM, 09/07/2008
NO First Amendment Rights on abj board!
Posted 01:42 PM, 09/07/2008
naacp dues are NOT necessary to do the job - therefore are not legitiment expense!
Posted 04:44 PM, 09/07/2008
as a parent of one that is served by the board I think some of the expenses are a little to much
Akron, Oh
Posted 09:05 PM, 09/07/2008
I, for one, am grateful to have a county board superintendent who is visible in Columbus...Trust me, other county board superintendents are not progressive and do not have input in state policy when they stay in their own little kingdom.
Posted 10:28 PM, 09/07/2008
Making a mountain out of a molehill as usual. This is not a big deal in my opinion, certainly not worth an entire front page story!
Akron, OH
Posted 04:02 AM, 09/08/2008
Just another example of government stealing our dollars and spending it on frivolous and unnecessary things, i.e., going into the pockets of government employees. PS I hope this post is not too insensitive for the ABJ censors.
Tallmadge, OH
Posted 07:04 AM, 09/08/2008
MRDD will never see anopther approved levy with this information now out there.
Posted 03:16 PM, 09/08/2008
4.4 % decrese in administrative costs, an almost $20 million dollar increase in Medicaid revenue and clear leadership and presence at the state level... I'll wash his car for him and he can skip the tip.
