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Tuesday, September 9, 2014

Federal "stimulus" funds provide "extra effort" wages to CSU Sacramento Engineering College professors

Four years ago, the Sacramento Business Journal noted that the region’s Federal "stimulus" funds from the 2009 American Recovery and Reinvestment Act were not finding their way into the economy at the anticipated pace. With money sitting idle, the local impact of the economic intervention was uncertain ("Stimulus effectiveness unclear as region waits for bulk of funds to be allocated").

The story was illustrated with a picture captioned:  "Emir Jose Macari keeps the Smart Grid Center humming at Sacramento State."  

Sacramento Business Journal
It was not mentioned in the article, but by that time, almost $4 million in stimulus money had been given to the CSU Sacramento Engineering College to establish the California Smart Grid Center.

At the CSUS Smart Grid website , there is little to indicate that anything has yet been accomplished or that anyone is in charge. 

Speaking to Smart Grid Today online  last December, former Engineering Dean Emir Macari reflected on the enterprise, saying: "the public has noticed that there's been a lot of money spent on smart grid, yet they don't seem to think that they are getting any benefit out of it."
What might be noticed by the public is that a lot of money has gone to the benefit of the CSUS Smart Grid directors, Macari and Professor Suresh Vadhva. 



CSUS Engineering
"Smart Grid Showcase" public education display

CSU policy allows Faculty to be paid from grants or awards for "extra effort," up to 25% of their ordinary salary (i.e., 125% effort in time).  Management Personnel Plan (MPP) administrators are not allowed to receive additional compensation, except for short-duration special assignments unrelated to their regular duties (CSU "Additional Employment Policy" - HR 2002-05 and UMA00180.htm).  

Since 2011, Macari has been paid almost $60,000 per year extra from the Smart Grid, on top of his nearly $178,000 executive salary ( $179,000 in 2013).

Macari's signed employment agreements with University Enterprises, Inc. (UEI) gave his "Sac State Affiliation" as that of a Faculty member. The employment form has no checkbox for MPPs. 

Records obtained from UEI via Transparency Act requests show that while he was still a Dean and an MPP employee, Macari's hourly Smart Grid wages totaled $60,284 in 2011, $59,281 in 2012, and $55,189 in 2013. 

By September 15th of this year, Macari's 2014 hourly wages from UEI accounts already totaled $97,687.

Macari's time sheets show that as soon as Summer started this year, he began regularly putting in 10 hour days on the Smart Grid, earning an extra $21,911 (210 hours) in the month of June alone. 

Revised (10/09/2014) and up to date 9/15/2014


Professor Vadhva was hired as a full-time director of the Smart Grid Center near the start of the project, and until mid-year 2013, he retained his full-time position as a Department Chair.
Professor Suresh Vadhva

In 2011, Vadhva earned $119,000 as a faculty member and another $116,049 from his job with the Smart Grid ($235,000 total).

In 2012, Vadhva earned $118,000 from the University and $74,888 from UEI accounts.

In 2013, Vadhva's total University salary went up almost 25% to $147,000, despite his having been replaced as a Department Chair. With his earnings from extra effort last year ($74,672), his total compensation in 2013 was almost $222,000.

Vadhva's extra earnings for this year (up to 9/15/2014) already total over $100,000.

Like Macari, Vadhva started working 10 hour days on the Smart Grid this summer.  In June, his extra effort earnings (210 hours) totaled $20,651. 

The current University salaries for Macari (no longer a Dean) and Vadhva (no longer a Chair) are publicly unknown at this time.  

While he was Dean, Macari signed-off on the UEI payments to Vadhva. Approval for Macari came originally from Provost Joe Sheley (now President at CSU Stanislaus) and then interim-Provost Charles Gossett. It is not publicly known who authorizes the payments now.


Note: Prior to publication, an advance copy of this article was sent to CSUS Public Affairs with a request for comment or corrections. The request was referred for handling to Campus Counsel Jill Peterson, who replied by sending links to the relevant policies (HR 2002-05 and UMA00180.htm), which are cited above.

With respect to identifying a policy allowing for additional employment of an executive, Ms. Peterson cited HR 2002-05 to the effect:
MPPs ... "do not receive additional compensation for work considered part of their primary work assignments. However, an exempt employee may be assigned additional employment equivalent to twenty-five percent (25%) above a 1.00 full-time time-base if the additional assignment is unrelated to his or her primary work assignment."
The policy (UMA00180.htm) specifies that the work must consist of a special assignment of short-duration, with prior approval from the Vice President for Human Resources.

Update: In response to a public records request,  Campus Counsel Jill Peterson reported that the University has no record of Macari having been given a special assignment or approval from Human Resources.

Revision (10/09/2014): Wage figures updated to September 15, 2014.