I am a software manager for a local municipality managing an citywide system. We have a lot of applications that run off our primary datacenter, so I have varied technical staff working for me. I recently took over management of a new guy, who makes almost $10K more than I do and I am having difficulty getting past it. I don't want to resent him for his salary, but I have maintained the std. of bosses make more than their employees. Any advice?

I suggest you think of yourself in the role of a professional sports team's head coach. Obviously in those situations, the "employees" make much more that the boss.

But bottom line, the boss is still in charge.