Legislative budget staff say the state should do away with a bonus program that awarded nearly $20,000 apiece to Utah's top school trust land managers without clear proof of results.

School and Institutional Trust Land Administration officials -- who seek to generate revenues from land set aside to fund public education -- already are paid considerably more than comparable positions in other state agencies. On top of that, the six executive positions at SITLA received bonuses ranging from $13,200 to $35,000.

"In a year where funding is so tight, this seemed inappropriate to have $269,500 for bonuses for roughly 70 people when you're charged to use the revenue and generate revenue in the most prudent and profitable manner," said legislative fiscal analyst Ivan Djambov.

But SITLA officials said the agency's performance shows the bonuses are deserved.

John Ferry, chairman of SITLA's board of trustees, said the bonuses -- which totaled $269,000 last year --- are an incentive that has let the agency succeed.

"We're not bankrupt, OK? We're not like the private sector where you get a bailout and then you go celebrate," said Ferry, who is the brother of House Rules Committee Chairman Ben Ferry, R-Corrinne.

According to figures provided by SITLA, from 1994 to 2005 the trust land revenues have increased more than five-fold, doubling Wyoming, the next best-performing neighboring state.

Members of the Legislature's natural resources budget subcommittee were quick to defend the bonuses, as well.

"When you have an agency that is operating on a business model, the truth is in the bottom line," said Rep. Jack Draxler, R-North Logan. "You have to look at it as the proof is in the pudding."

Revenues from the school trust lands go into a fund managed by the state treasurer and benefiting Utah schools. The value of that fund has fallen from $974 million to $796 million with the downturn in the stock market.

State school superintendent Patti Harrington said the state school board has supported the program in the past, but there is concern about the amount of revenue the trust lands are generating this year. The amount has fallen from $28 million last year to $20 million this year. "They felt this was a year the bonus program at least ought to be questioned based on the changes in revenue," she said.

Ferry said SITLA recognizes that budgets are tight and said it would not request the $120,000 the Legislature typically gives the agency for bonuses.

Several legislative audits have raised concerns about the bonus program at SITLA, which is exempt from rules that cap the bonuses for other state agencies at $8,000. Since the last audit in 2006, the amount awarded has shrunk, but other issues remain.

The report also questioned if SITLA was setting a low bar for its revenue targets, then awarding lucrative bonuses when the agency exceeded the mediocre results. Each year since 1998, SITLA's revenue goals have been lower than the actual revenue the year before -- in one year nearly half as much.

Ferry said the suggestion the board is low-balling its goals is "flat-out not true," and called the suggestion a cheap shot.