Powell is serving his second term in office. He'll go from making roughly $250,000 to just $31,000.
Powell says he's financially secure and will be able to afford health insurance through his wife. The cost cutting move is intended to save the school districts hundreds of thousands of dollars over the next three years.
"This takes about $830,000 and sets it aside. And so if we face mid-year cuts I can have the money ready to go and it doesn't affect our employees," said Powell.
Powell's term ends in 2015 and he claims more than a dozen other teachers and administrators have taken the same deal.
Powell will ultimately have final say as to where the funds are spent. His new deal will go into effect September first.