Otter not highest paid

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BOISE, Idaho (AP) — The highest-paid state employee in the Idaho governor’s office isn’t Gov. C.L. “Butch” Otter.

Jeff Malmen, Otter’s chief of staff and former top congressional aide, makes $120,000 annually, according to records obtained by The Associated Press. That’s $15,000 more than Otter’s $105,000 salary, which is set by the Legislature.

The past two chiefs of staff — John Sandy, who worked for Gov. Jim Risch, and Brian Whitlock, Gov. Dirk Kempthorne’s top aide — made $97,364. Phil Reberger, Kempthorne’s chief until 2002, made $88,000 a year.

Malmen, who also was chief of staff while Otter was a U.S. House member in Washington, D.C., actually took a pay cut. He made $153,000 in the 12 months starting July 1, 2005, according to a U.S. congressional pay database.

For two decades, Malmen has worked his way through the ranks of state and national Republican politicians, including stints as a legislative aide for former U.S. Sen. Steve Symms starting in 1986, as an aide for Sen. Larry Craig, as chief of staff for former Gov. Phil Batt and as campaign manager and budget director for Kempthorne.

His current package, accompanied by benefits such as health insurance and vacation, was what it took to convince him to take the job with Otter in the governor’s office, Malmen said.

“I don’t know what’s more painful: taking a pay cut, or taking a pay cut and that still being a story,” Malmen told the AP. “The boss and I talked about what I’d been making for him working for him the last six years. I knew working for state government, I’d have to take a pay cut. This is the pay cut we negotiated.”

As Batt’s chief of staff in the mid-1990s, Malmen made $75,000 annually.

Though Otter earns less than Malmen, the wealthy rancher and former businessman’s fortune is valued at up to $12.5 million, according to financial disclosures released by Congress last year.

In his proposed budget for the fiscal year that begins in July, Otter has proposed a 5 percent pay increase for the state’s 22,000 workers, while requiring them to pay more for their benefits.

Some lawmakers debating Otter’s state-worker pay proposal say his decision to give Malmen $120,000 puts a spotlight on Idaho’s problem of not being able to pay its workers enough to attract and keep the best and brightest candidates. On average, state workers earn about 15 percent less than those at comparable private-sector jobs, according to the Idaho Division of Human Resources.

“Wouldn’t it be nice if the rest of the state managers had the ability to reward the best people with the pay that’s required?” said Sen. Kate Kelly, D-Boise and a member of the compensation committee.

Sen. John Andreason, R-Boise and compensation committee co-chairman, said most or all of the 5 percent pay hike that’s been proposed by Otter would be eaten up by inflation and health-care cost increases.

Seen in that light, Malmen’s pay package is unjustified, Andreason said.

Past chiefs of staff said they functioned as the governors’ eyes and ears around the state.

Sandy, who served during Risch’s seven-month term after Kempthorne became U.S. interior secretary, said he began work at sunrise and didn’t stop until after dark.

“Gov. Risch made it very plain to people that if his chief of staff speaks, it’s the same as him speaking,” Sandy said. “I’m not going to defend it (Malmen’s pay) one way or the other. But if you went across the state of Idaho and found a corporation that has 25,000 employees and then tried to find a senior vice-president making $120,000 a year, I don’t think you could find it. It’s a big responsibility.”

Malmen said his compensation is fair, but would have liked to have gotten more.

“There are going to be folks that don’t understand and don’t agree,” he said. “I hope they understand that I wasn’t happy about having to take a pay cut, either.”

In all, Otter has kept the number of people working for him in the governor’s office to about 25, virtually the same number who worked in the Risch and Kempthorne administrations. Together, their salaries total about $1.3 million, according to records from Otter’s office and the state controller’s office.

After Malmen and Otter, the highest paid Otter staff member is James Yost, a policy adviser who works on natural resource issues, at $85,280 annually. Yost also served under Risch and Kempthorne. David Hensley, another holdover from the Risch and Kempthorne administrations who is Otter’s top lawyer, earns $71,386.

Mark Warbis, Otter’s communications director, makes $71,000.

Debbie Field, Otter’s new drug czar, will earn $70,000 — $28,000 less than Jim Tibbs, who earned $98,000 working in the newly created post for Risch. Jon Hanian, a former Boise TV news reporter, earns $67,000 as Otter’s press secretary.

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