The executive director of the Metropolitan Water Reclamation District of Greater Chicago (MWRD) was awarded a $95,000 severance package and six months of health insurance after he resigned in June without explanation.
David St. Pierre resigned from MWRD after an unexplained investigation. Citing a non-disparagement clause in St. Pierre’s paperwork, a spokesperson would only rule out criminal or sexual misconduct, according to the Illinois Policy Institute (IPI).
MWRD Commissioner Debra Shore also told the Chicago Sun-Times that St. Pierre “had both admirers and detractors” on the water district’s nine-member board. Additionally, it was reported by that publication that he had been on paid leave for about seven weeks before resigning.
Sen. Tom Cullerton
“It was the right time,” Shore told the Sun-Times of the resignation.
As head of the agency for seven years, St. Pierre earned approximately $292,000 in 2017. MWRD treats Cook County sewage and wastewater, strives to prevent flooding and protects waterways.
St. Pierre oversaw an agency of 2,000 employees with an annual budget of $1.2 billion.
“Golden parachutes,” as excessive severance agreements are called, are neither rare nor well-regarded. Illinois officials have been known to depart under ambiguous circumstances before, including high-profile figures in prominent secondary and higher education positions who netted six-figure bundles; and Metra CEO Alex Clifford, who obtained more than $650,000 in 2013.
“Failed administrators and executives shouldn’t receive golden parachutes for wasting taxpayers’ time and money,” said Illinois Sen. Tom Cullerton (D-Villa Park) in late 2017 following the resignation of Northern Illinois University President Doug Baker.
Such generous arrangements contrast sharply with the economic landscape experienced by average Illinois wage earners and taxpayers.
“Indeed, the same environment that has delivered six-figure payouts and premature retirements to public officials, has pushed a top-heavy tax burden onto the backs of working Illinoisans,” IPI said. “The disparity between those who collect extravagant severance pay and those who foot the bill points to a serious need for reform.”
Unlike those public figures, Illinois homeowners have witnessed property taxes increasing at a rate six times faster than that of household incomes, according to the Institute.
Apart from creating controversy, the trend has generated enough backlash to warrant action in Springfield, with state legislators lobbying for change. With seven co-sponsors on both sides of the aisle, Cullerton introduced Senate Bill 3604 in April.
Specifically, the measure is designed to prevent government workers who are terminated for misconduct from receiving severance pay at all. It also seeks to limit severance to 20 weeks’ worth of salary across the board. Additionally, the bill prohibits cost-of-living adjustments as of fiscal year 2018-19 for legislative and executive elected officers and appointees in eligible state government positions, IPI said.
SB 3604 passed unanimously in the Senate and garnered bipartisan approval in the House before going to Gov. Bruce Rauner’s office, where it awaits approval.
“The bipartisan willingness to protect taxpayers demonstrated by the passage of SB 3604 should be welcomed as an encouraging shift in Springfield,” IPI said. “Lawmakers should deliver the Government Severance Pay Act ... [and] taxpayers should continue to call upon lawmakers to proceed down the path of fiscal responsibility ventured with the Senate’s passage.”
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