Karega Rausch, incoming executive director and president of the Indianapolis Public Education Corporation, or IPEC, will earn a $285,000 annual salary, according to a compensation plan the IPEC board unanimously approved Wednesday. Rausch is expected to begin his work Sept. 17.
Rausch was chosen last month as IPEC’s first executive director to run the day-to-day operations of the new mayor-appointed board and carry out its decisions on a unified transportation system, potential school closures and the creation of a new accountability model for Indianapolis Public Schools and most of the city’s charter schools. He will also develop long-term plans for the corporation and manage its budget, staff and vendors.
Rausch was most recently the president and CEO of the National Association of Charter School Authorizers, or NACSA. Before that he worked in various roles in the Indianapolis charter school sector for most of his career.
IPEC's immediate focus is the November election, when voters will decide on a four-year, 37.2-cent property tax referendum. It would generate around $95 million in local revenue that would be split between Indianapolis Public Schools and and about 60 charter schools.
The compensation plan
Rausch’s compensation plan doesn’t include any explicit annual incentives or bonuses, but it does give the IPEC board discretion to award bonuses at any time.
Rausch’s health, dental and visual benefits will be the same as those offered by the City of Indianapolis. His retirement benefits will all be managed through the Indiana Public Retirement System, which will also receive a 3% employee contribution paid by IPEC on his behalf, in addition to the corporation's employer contribution.
The plan includes 18 hours of paid time off for each month and a $200-per-month cell phone allowance and other technology-related expenses.
Rausch is also able to receive reimbursements for “any appropriate business and professional expenses incurred as approved by the Board.” Appropriate expense can include "reasonable participation in professional associations," including travel, accommodation expenses and activities “in accordance with IPEC’s budget," according to the plan.
The plan does not include a vehicle allowance, but acting IPEC Executive Director Mike O’Connor said during Wednesday’s meeting the board could decide on a vehicle allowance in the future.
Rausch’s compensation plan also specifies him as an “at-will” employee of the board, meaning either he or IPEC can end the employment at any time, for any reason or no reason, without notice. There is also no set timeline or ending date for Rausch’s employment.
IPEC listed a salary range for the executive position as $235,000 to $325,000. The salary was based on the board’s review of compensation for local and education leaders.
Indianapolis Public Schools Superintendent Aleesia Johnson’s total compensation last year was $298,259, which includes base salary, bonuses, stipends and other cash payments, according to state data.
Indianapolis Mayor Joe Hogsett also announced recently that the executive vice president for IPEC who will be working alongside Rausch, will be Andrew Strope, the current deputy superintendent for IPS.
Strope’s compensation through IPEC has not been officially set as of Wednesday. Strope is expected to begin his work for IPEC before September.
The Indianapolis Public Education Corporation was created by the Indiana legislature under House Enrolled Act 1423 earlier this year. The nine-member, mayor appointed board is tasked overseeing a unified transportation, facility and school performance system for nearly 43,000 students enrolled in the district and charter schools.
Contact WFYI Government Reporter Caroline Beck at cbeck@wfyi.org
