Ala. Insurance Board Executive Director’s Raise Makes Him the Highest Paid Administrator in 12 SE States

William Ashmore, executive director of Alabama’s State Employees Insurance Board, became the highest paid administrator, among similar administrators in 12 Southeastern states, when the state Personnel Board voted 3-2 to approve raises requested by Jim Martin, Alabama Finance Director. Ashmore’s deputy, Gary Matthews also received a pay increase of more than 20 percent.

In asking for the increases, Martin cited their work on a program that could save the state millions of dollars on health care for prison inmates. Ashmore, whose previous job responsibilities did not involve the Department of Corrections, will see his salary increase from $146,179.80 to $157,601.61. Matthews’ salary will go from $96,075.20 to $117,028.60.

According to the Tuscaloosa News, Personnel Department staff members had recommended the board deny the raise request.

“Information could not be found which would support either of these increases,” was how the staff recommendation read on the board’s agenda.

State Finance Director Jim Main said the new inmate health plan could save Alabama between $4 million and $10 million a year.

“Nobody could get us a discount like the Blue Cross Blue Shield rate,” Main said.

The new arrangement will mean extra work for the insurance board, which plans to hire a handful for people to process corrections department health care claims.

“It was clear to us that millions of dollars could be saved,” Ashmore said.

In voting against the raises, board members Ellen McNair and Joyce O’Neal cited a regional salary comparison showing that Ashmore’s raise makes him the highest paid public insurance program administrator among 12 Southeastern states.

O’Neal, who represents state employees on the personnel board, said the raises are an example of administrative salaries that are “getting ridiculous” and running far ahead of pay increases given to most state employees.

Board chairman Joe Dickson said he broke a 2-2 tie and voted in favor of the raise because the request came from the administration. But he expressed some concern about giving raises to some top management employees.

“We compare salaries with states that have a different tax base than us. Our Legislature needs to look at this. … We’re going to find ourselves in a hole we can’t dig ourselves out of,” Dickson said.

Topics Alabama