Board members Pearl Cheng, Gary McCue and Josephine Lucey supported the ratification of the superintendent's contract with modifications through June 30, 2005.

The tough economy and funding cuts prompted board President Ben Liao to cast a dissenting vote. He explained that he does not support Bragg's proposal for an increase in his total annual compensation.

"In the current difficult economic situation, when he's asking every department to cut the budget, it's tough for me to support his proposal for a salary increase," Liao said.

According to Liao, in the current school year, Bragg receives $155,969 in base salary. On an annual basis, he also gets a $2,000 stipend for possessing a Ph.D. degree, $6,600 for an automobile allowance and $15,000 as a performance-based bonus. Bragg also receives a longevity increase each year, as well as an annuity, which are 2 percent and 7 percent of the annual base salary, respectively.

Under Bragg's proposal for the next school year, the degree stipend, automobile allowance and performance-based bonus will be included as part of the annual base salary, which will be $179,569. In addition, the longevity and annuity payments will be increased to 3 percent and 7.5 percent respectively of the new annual base salary, bringing the total cost to the district to $198,423.

"As the leader of the district, he should set an example for others in this difficult time by not proposing a higher pay," Liao said.

In addition, Liao believes the inclusion of the performance-based bonus in the annual base salary goes against the very purpose of a bonus.

"Depending on his performance, the superintendent receives a bonus," Liao explained. "For example, last year, according to the board's evaluation of his performance, Dr. Bragg got somewhere between 50 and 80 percent of the bonus. Now it doesn't matter how he does—he will get the bonus because it's part of his base salary. I don't think that's appropriate."

According to Liao, Bragg is one of the highest-paid superintendents in Santa Clara County.

Board member Gary McCue, on the other hand, believes Bragg's proposal is reasonable and that the difference in cost to the district between the current contract and the new one is insignificant.

"The major difference here is that instead of being in different categories, the car allowance, stipend and the performance-based bonus are now parts of the base salary. The extra cost to the district is negligible," he said.

School board members met in two closed sessions in March to discuss Bragg's contract. Although they cannot release the details of the discussions, Liao and McCue said Bragg's contract is a public record and is available at the school district's office.