Otter’s pay among lowest for governors

BOISE – Three of the nation’s governors – including the most highly paid of all, California’s Arnold Schwarzenegger – decline their salaries because they’re already millionaires. But not Idaho’s Butch Otter, a multimillionaire rancher.

“I don’t think anybody expects him to work for nothing,” said Jon Hanian, the governor’s press secretary.

According to a new report from Stateline.org, Otter’s $105,560 annual salary ranks 35th among the 50 governors’ salaries and puts the state well below the national average of $124,398.

Idaho payroll records list 212 other state employees who make more than the governor. As of Jan. 2, the state’s highest-paid employee was Chris Petersen, head football coach at Boise State University, whose $400,005 salary easily topped the second-highest employee, University of Idaho President Tim White, who makes $286,188. The state Board of Education decided last week to boost White’s salary to $291,911 July 1.

In addition to his salary, Otter receives a $4,500 monthly housing allowance. That’s because Idaho is one of six states with no official governor’s residence, though the state is working on renovating potato and microchip tycoon J.R. Simplot’s donated hilltop home for a future governor’s residence.

Before public office, Otter worked for years as an executive with Simplot Corp. J.R. Simplot is his ex-father-in-law.

State law requires that the governor be provided with housing, so Idaho pays its governors a housing allowance. Asked in March if he’d accept it, Otter said, “If they paid it to the other governors, they oughta pay it to me.”

Hanian said the governor’s thoughts are similar on the salary issue.

“I actually talked to him about this yesterday – he didn’t even know how much he made,” Hanian said.

“He’s not doing this job for the salary.”

Hanian said the issue came up because the governor was talking about salaries and how state employee pay lags market rates for similar jobs.

“We’re made painfully aware of what is available out there in the private sector, and it’s fiercely competitive,” Hanian said.

The state has a hard time hanging onto employees, he said, which is why Otter said early in his administration he wanted to boost state worker pay.

“He felt that was an area that needed to be addressed immediately.”

Lawmakers this year approved Otter’s recommendation for merit raises averaging 5 percent for state employees and set aside 3 percent for public school employees.

Hanian said the governor has not talked about declining his state salary. “That would be a lot to expect of anyone,” he said.

Stateline.org reported that Schwarzenegger, Tennessee Gov. Phil Bredesen, and New Jersey Gov. Jon Corzine decline state salaries, though Corzine accepts a token $1 a year.

If Schwarzenegger, who made tens of millions of dollars as a movie star, accepted his governor’s salary, he’d be the highest-paid governor at $206,500. Bredesen, who returns his $85,000 annual paycheck, is the founder of health insurer HealthAmerica. Corzine, who declines all but $1 of his $175,000 gubernatorial salary, is the former CEO of Goldman Sachs.

Ten governors, including Otter, are former members of Congress, which pays a $165,200 annual salary. So Otter took a pay cut of nearly $60,000 when he moved from Congress to governor.

Washington Gov. Chris Gregoire’s salary of $150,995 ranks eighth in the nation, while Montana Gov. Brian Schweitzer’s $96,462 ranks 40th.

Stateline.org is a Washington, D.C.-based online service that provides information and research about state government.

It is funded by the Pew Charitable Trusts.