On Thursday, a bi-partisan education committee held a hearing during which they discussed Thompson's deal and took a first step toward capping superintendent salaries statewide or requiring superintendent pay be relative to the district's number of students, 6News' Kara Kenney reported.

"(The compensation package) slipped through seven board members who weren't even aware of it," said Rep. Robert Behning, R-Indianapolis, co-chairman of the Interim Study Committee on Education Issues. "The public wants to be assured that things like what happened in (the Metropolitan School District) of Wayne won't happen again."

Sen. Dennis Kruse, R-Auburn, who is also co-chairing the committee, questioned why the State Superintendent of Public Instruction Tony Bennett has a $82,734 salary, while the average local school superintendent makes a base salary of $113,162.

"Why would individual school corporations think their one school corporation can get more money than the state superintendent gets?" Kruse asked.

Kruse also pointed out that states like New Jersey cap superintendent salaries at the governor's salary, which, in Indiana, is $95,000.

The idea did not sit well with the Indiana Association of Public School Superintendents, which maintains that the average salary increase this past year was .04 percent, or $48 per superintendent.

"Most superintendents who haven't taken a salary freeze of at least two years, many for three or four years, have taken cuts," said organization President John Ellis.

A handful of superintendents spoke at the hearing in opposition to any legislative action, including current Wayne Township Superintendent Jeff Butts, Indianapolis Public Schools Superintendent Eugene White and Perry Township Schools’ Thomas Little.

"Superintendent pay across the board is based on productivity and based on their success in that district. We ask members of the committee to protect the authority of our local school boards,” Little said.

"The president of (Indiana University) just got a 12 percent raise. The president of Ball State (University) just got a 10 percent raise,” White said. “I can stand before you and say they don't do half of what I do.”

Ron Barnes, a consultant who helps conduct superintendent searches for school districts, said he thinks instituting a cap would be counterproductive.

"I think setting a cap on superintendent salaries at a time when education is going through the toughest times is bad public policy," he said.

Several superintendents who spoke before the committee maintained that Thompson's $1 million payout was an isolated incident.

"This situation is certainly not the norm. I fully understand the emotions and concerns the previous superintendent's contract has raised with you and your constituents,” Butts said.

"Don't let an anomaly like Wayne Township or Dr. Thompson confuse you. You have to be very careful in this area when you start dealing with the value of pay for institutional leaders,” White said.

In the case of Terry Thompson, school board members said they did not realize the financial implications of the contract. It took 6News several records requests and emails to district officials to figure out how much Thompson's contract was worth.

Behning said he plans to introduce legislation requiring superintendent contracts reflect exactly how much it will cost taxpayers.

"It's an anomaly, but a very expensive anomaly," he said of Thompson’s contract. "I think it needs to be a bottom line compensation number is what the public needs to have access to.”

The committee requested additional data on superintendent salaries and will meet again Aug. 25. They will meet several more times before Oct. 31 and may or may not make a recommendation to the full Legislature.

More Information: Superintendent Salaries