Federal

‘Diploma Mill’ Issue Roils Pay Debate in New Jersey

By Dakarai I. Aarons — September 05, 2008 6 min read
  • Save to favorites
  • Print

High salaries and generous benefits for New Jersey superintendents and other administrators have drawn sharp criticism and calls to action from state lawmakers, including a backlash against compensation driven by degrees from so-called “diploma mills.”

In the highest-profile case, the superintendent and two other administrators in the 12,000-student, six-school Freehold Regional High School District received $2,900 in tuition reimbursement and $2,500 in annual salary raises after obtaining doctoral degrees from an unaccredited online school.

That institution, Breyer State University, is now prohibited from doing business in Alabama and Idaho for not meeting state accreditation standards. The online institution has a Los Angeles address and had not responded as of press time last week to a request for comment.

The Alabama Department of Postsecondary Education accused Breyer State and 17 other schools that it barred of “operating apparent diploma mills and taking shameful advantage of hundreds of unsuspecting students.”

The issue of suspect credentials for both teachers and administrators has cropped up in several states.

In West Middlesex, Pa., a school board has tabled giving money to teachers who took classes through Canyon College, an online school with ties to Breyer State’s founders. Canyon is not accredited in Pennsylvania. Similar scenarios involving other institutions have arisen in Florida and Georgia.

“That’s clearly a misuse of public funds. Using public funds to acquire a diploma mill degree—certainly the taxpayers had something else in mind,” said Alan L. Contreras, the top administrator of the Oregon Office of Degree Authorization and a national expert on diploma mills.

Sensitive Issue

In New Jersey, the controversy has resulted in lawsuits, embarrassment, and tightened state regulations.

School administrators’ compensation already was a touchy issue, after it was revealed earlier this year that one small-town superintendent would receive a payout worth more than $700,000 upon retirement. (“Jumbo Payout Gets Fierce N.J. Backlash,” June 11, 2008.)

The Breyer State coursework in the Freehold high school district was paid for in 2004 and completed over the next three years. It came to light when the state education department investigated this summer based on a complaint submitted to the department and New Jersey’s attorney general.

In the investigative report completed by the education department, district Superintendent H. James Wasser said he had been under the impression that Breyer State was licensed and accredited.

A spokeswoman for the Freehold district said last week that Mr. Wasser was busy opening schools for the new academic year and was unavailable for comment.

In its report, the New Jersey education department said that “there is no sustainable evidence to support a conclusion that any of the three individuals possessed the prerequisite intent to deceive when they obtained the degrees.”

But George Gollin, a University of Illinois at Urbana-Champaign professor and member of the Council for Higher Education Accreditation’s board of directors, said the lower standards of a school like Breyer should be a dead giveaway. The school’s license in Alabama was revoked, in part, because it granted honorary doctorates based on life experience and because most of Breyer’s faculty members do not hold degrees from accredited institutions.

“It’s impossible for me to know how anyone who is anything but naive and with no contact with higher education would think the credit for ‘life experience’ [indicates] anything but a bogus operation,” he said.

The state’s report on Freehold suggested—but did not require—that the school district give financial benefits only if the degrees were earned from a state-approved institution.

State Commissioner of Education Lucille Davy last week sent all New Jersey school districts guidelines on how to tell if a private institution might be a diploma mill.

New Regulations

And in new regulations to be issued later this month, the state education department will require that in future contracts, reimbursement or salary increases be given only for work done at higher education institutions approved under the state’s accrediting standards.

Degrees from unaccredited institutions have never been allowed for use in getting a state teaching or administrative credential in New Jersey. Those who received credentials from such an institution “probably didn’t do the rigorous coursework one would expect from an advanced degree,” according to Ms. Davy.

State Senate President Richard J. Codey has called for a statewide investigation of administrative salaries to uncover other benefits gained with unaccredited degrees. He plans to introduce legislation that would bar districts from reimbursing tuition or paying raises to any employee for degrees or courses from unaccredited institutions.

But while some have accused Ms. Davy of not doing enough, others believe she has gone too far. The New Jersey Association of School Administrators and the New Jersey Association of School Business Officials have filed lawsuits arguing that Ms. Davy exceeded her authority in issuing new regulations that limit the type of benefits school districts can offer administrators.

The rules are aimed, for example, at preventing taxpayers from having to pay twice for pension benefits. In some instances, superintendents were receiving state contributions to their 403(b) retirement plans in addition to the state pensions to which they were entitled.

“We have a very generous state pension plan in New Jersey,” Ms. Davy said. “We believe that the pension is intended to provide that money in the future in retirement, and we shouldn’t have annuities on the side. If the individual wants to contribute on the side out of their own salary, no problem. We don’t feel it should be part of the contract.”

Some superintendents also were being reimbursed for medical co-payments, and others were being given monthly allowances for cleaning their clothing.

Richard G. Bozza, the executive director of the 1,450-member school administrators’ association, said the group filed suit in August in the U.S. District Court in Trenton because it believes some of the rules are unconstitutional and others are too vague.

“None of us are opposed to looking at these issues,” he said. “I think a responsible measure would be to look at all workers in New Jersey who are on a public payroll if we are serious about this.”

Superintendent Shortage

Mr. Bozza said a shortage of well-qualified superintendents nationwide has placed a high value on talented leaders. And a study his group commissioned by the Washington-based American Institutes for Research shows that the salaries of New Jersey school administrators are below the average for peers in the region, when cost of living is factored in.

“Well-qualified people have their picks of places to go. Certainly compensation is going to be a factor in where they go,” Mr. Bozza said. “I think we have to provide means to say what is appropriate compensation.”

Ms. Davy said the aim is to force more transparency and accountability into the system, so taxpayers know exactly what they are paying for.

“I’ve spoken very clearly about the fact that superintendents, like all other educators, need to be paid and compensated fairly for the challenges of the job,” she said. “We are certainly not saying you can’t receive a fair wage. We had some instances where there were what you would call perks in these contracts.”

A version of this article appeared in the September 10, 2008 edition of Education Week as ‘Diploma Mill’ Issue Roils Pay Debate in New Jersey

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Families & the Community Webinar
Beyond the Classroom: Extending High-Quality Instruction Into the Home
Your curriculum doesn't have to stop at the classroom door. See how two districts bring families into PreK–3 learning.
Content provided by TalkingPoints
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Teaching Profession Webinar
Evaluation Beyond the Checkbox: Turning Ratings Into Teacher Growth
Ratings alone don’t help teachers improve. Join us Nov. 10 to hear what happens after the evaluation: feedback, follow-up, and growth.
Content provided by Frontline Education
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Assessment Webinar
The Assessment Trust Crisis: How to Measure Learning in the Age of AI
AI is reshaping learning. Is assessment keeping up? Join this webinar to explore how to measure student thinking, not just right answers.
Content provided by Instructure

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Federal Opinion Here's What the Blue Wave Could Mean for Education
Rick Hess and Andy Rotherham analyze how the midterms will shape school choice, sports, and more.
•
9 min read
The United States Capitol building as a bookcase filled with red, white, and blue policy books in a Washington DC landscape.
Luca D'Urbino for Education Week
Federal Democrats Will Control Congress. What Educators Can Expect
Democrats won key races across the country, with implications for K-12 policymaking in Washington.
6 min read
House Democratic Leader Hakeem Jeffries, D-N.Y., gives encouragement to volunteers at a phone bank at a hotel on Capitol Hill in Washington, Tuesday, Nov. 3, 2026.
House Democratic Leader Hakeem Jeffries, D-N.Y., gives encouragement to volunteers at a phone bank at a hotel on Capitol Hill in Washington, Tuesday, Nov. 3, 2026. Democrats are on track to be back in charge in the lower chamber, giving them leverage to push their own K-12 agenda and resist President Donald Trump's.
J. Scott Applewhite/AP
Federal Teachers' Union Sues Trump Administration Over Student Loan Forgiveness
The American Federation of Teachers and nine student loan borrowers allege the agency is delaying Public Service Loan Forgiveness decisions.
Cris Tolomia, Quartz
•
2 min read
Education Secretary Linda McMahon prepares for an interview at the Republican convention Wednesday, Sept. 9, 2026, in Dallas.
Education Secretary Linda McMahon prepares for an interview at the Republican convention Wednesday, Sept. 9, 2026, in Dallas. The American Federation of Teachers says in a new lawsuit that the U.S. Department of Education is delaying loan forgiveness decisions for the Public Service Loan Forgiveness program, for which teachers qualify.
Alex Brandon/AP
Federal Opinion Margaret Spellings and Arne Duncan: The Ed. Agenda We Can Agree On
We need to get education back on track, write the former Ed. Secretaries. Let’s start at the top.
Margaret Spellings & Arne Duncan
•
5 min read
Government research, State budgets, public education, back on track, Education Agenda
Vanessa Solis/Education Week + Getty