Should Select City Employees Be Paid More Than Mayor?

Should a City of Milwaukee employee be allowed to be paid more than the mayor? According to the city ordinance, the answer is no.

But Alderman Michael Murphy wants to change that, allowing select positions to be paid more than $147,335 per year.

“I am not indicating there is a plethora of positions where we need to hire people at above the mayor’s salary,” said Murphy to the Finance & Personnel Committee on Wednesday.

But he has at least one explicitly in mind: the city’s medical director. Dr. Heather Paradis has filled the position in recent years, but as a contractor from Children’s Wisconsin. The structure allows her to exceed the pay cap, but was identified as a structural weakness in the audits of the Milwaukee Health Department following the 2018 lead crisis. Paradis reports to the health commissioner, who isn’t required to be a medical doctor.

Jerry Allen, head of the Employees’ Retirement System, said his agency would also like to be able to exceed the cap for positions that oversee the city’s pension investments. “We have people now that make about half of what their peers make compared to other public funds in the Upper Midwest,” he said. “Last year we spent $60 million in outside investment management fees… as we all know Wall Street isn’t always maintaining the same interests as its clients.”

“There are other positions in city government that have been filled or have lost individuals because of that salary cap,” said Murphy. Both Public Works Commissioner Jeff Polenske and HR director Makda Fessahaye left in recent months for jobs that paid more; replacements have yet to be hired.

Former Mayor Tom Barrett was reportedly not supportive of lifting the cap, but Mayor Cavalier Johnson backs the idea.

Alderwoman Milele A. Coggs isn’t sold on the proposal.

“Every time we had that debate, it was always for white men,” said Coggs. She referenced the 2011 vote that cut the pay for the open seats for treasurer from approximately $141,000 to $114,000 and comptroller from $141,000 to $125,000. The elected treasurer position was won by the alderwoman’s uncle Spencer Coggs, a Black male. The comptroller post was held for two terms by Martin Matson, a white male, but is now held by Aycha Sawa, a white female. Spencer was the first African American to win a citywide executive office, Sawa is the first female comptroller.

“I don’t want us to be in a position where we see the value in positions that white men want, and we didn’t see value in positions white men don’t want,” she said. “I also don’t want us creating a solution in search of a problem.”

She called on Nikki Purvis, head of the Office of Equity and Inclusion, to study the matter.

But Murphy said he wasn’t sure what specifically there would be to study. “The issue is overly broad for intentional purposes because any position would come back before the full council,” he said. “It will be up to the legislative body to make the determination on equity.”

He said maintaining the cap was “penny wise, pound foolish” as it could keep the best candidate from the job. He noted that Johnson, who is Black, was supporting it.

“Legislation we create goes beyond this term, goes beyond our tenure,” said Coggs. “So while we might have diverse leadership now, it does not mean that will be the case next year.”

Newly-installed committee chair Alderwoman Marina Dimitrijevic asked if Purvis could study the issue.

“An analysis just by my office is not going to get to the crux of the conversation,” responded Purvis. “I think when we are talking about if this could have unintended consequences, that’s the part that needs to be [reviewed].”

Dimitrijevic identified one such potential issue: the wage compression currently felt by general workers. Murphy had acknowledged that issue in his opening remarks.

“The reality is that all of these points are legitimate, but it doesn’t happen until we allow this to occur,” said the alderman.

“I was prepared to support this today, but I think Alderwoman Coggs raises very valid points,” said Ald. JoCasta Zamarripa.

Mayoral liasion Arlisia McHenry said the issue wasn’t time sensitive. The committee unanimously held the matter pending further evaluation.

One obvious solution isn’t available, at least for two years: boosting the mayor’s pay. Under state law, elected officials can only vote to raise the pay of their positions for a period starting after the next election.

A 2018 proposal by Alderwoman Chantia Lewis would have boosted the mayor’s salary to $167,437 in 2024 (and the council salaries by 13.6%). Part of her stated rationale was that it would make it easier to hire top employees, but Murphy said a “fairly easy” ordinance change could be passed. He’s now testing how easy that is, after Lewis’ proposal quietly died.

Milwaukee’s elected officials have not had a pay increase since 2008, city employees themselves have had only limited raises and pay progression was suspended in favor of a 2% raise for city residents.

Related Legislation: File 181250