BY SHERI McWHIRTER
smcwhirter@record-eagle.com
---- — Traverse City — The president at Traverse City's community college stands to receive a $16,765 pay and benefits hike under terms of a proposed new contract.
Trustees for Northwestern Michigan College will decide Monday whether to approve changes laid out in a three-year agreement that would run through 2013. NMC President Tim Nelson last month received a positive evaluation from trustees — a 3.68 rating on a 4-point scale.
Nelson currently is paid $164,035, plus a $10,000 discretionary allowance and a $30,633 retirement benefit contribution. The proposed change would boost his base salary to $168,300 and increase his allowance to $20,000, along with up to $2,500 to cover expenses when his spouse attends business gatherings.
No changes are proposed for Nelson's retirement or life insurance benefit rates.
Proposed changes amount to a more than 9 percent increase over last year's compensation and a 65 percent increase over his initial base salary when hired in 2001 at $102,000. Nelson requested a pay freeze last year, so he hasn't received an increase since 2008.
Nelson's proposed base salary change is a 2.6-percent increase.
The discretionary allowance is meant to be used by Nelson to "carry out the duties of the office," according to the proposed contract. Nelson said that money covers expenses such as political campaign contributions, donations to nonprofit organizations and entertaining higher education colleagues at conferences.
Those expenses are not reimbursable by the college because of tax laws, so Nelson uses his discretionary allowance, he said.
"It's things I believe are important and timely expenses to move the college forward," Nelson said.
Online state campaign finance contribution records show Nelson gave since his hiring at NMC more than $2,400 to campaigns for political candidates ranging from Republicans Howard Walker and Jason Allen to Democrat Jennifer Granholm. He also contributed to both the Grand Traverse County Republican Party and Democratic Committee.
NMC spokesman Paul Heaton said it's not inappropriate for taxpayer dollars to be spent on political candidates.
"Our ability to provide education is directly related to what happens in Lansing with our elected officials. It's no secret this is how Lansing works. Part of our responsibility to our students is to work with the Legislature to meet the learning needs of our community," Heaton said.
Nelson has always had a discretionary allowance, beginning at $6,000 when he started the job and boosted to $10,000 in 2003, Heaton said.
College Trustee Bill Myers said Nelson earned this proposed increase in pay and benefits.
"I think we're getting President Nelson's services at a bargain," Myers said.
He said Nelson is responsible for focusing the college on important strategic planning for the future against the backdrop of a rapidly changing world and economy. Nelson also positioned NMC to successfully respond to spikes in enrollment over the last several semesters, Myers said.
Trustee Doug Bishop is chairman on Nelson's performance and compensation committee, but could not be reached for comment on Friday when the college released the proposed new contract.
